People v. Hubbard — Penal Code § 424

Criminal Law and Procedure

People v. Hubbard

Penal Code Section 424 applies only to public officers ‘charged with the receipt, safekeeping, transfer, or disbursement of public moneys,’ rather than all public officers.

Summary

Jeffrey Hubbard was the superintendent of the Beverly Hills Unified District. In that role, he served as chief executive officer of the District and oversaw various departments, including human resources, business, and accounting. Hubbard wrote an internal memoranda stating that a District employee was to receive an increased automobile allowance and a $20,000 stipend. He did not obtain the District’s Board of Education’s approval for the increased allowance and stipend, as required. Hubbard was convicted of misappropriating public funds in violation of California Penal Code Section 424. The Court of Appeals reversed, concluding Hubbard was not a person who fell under the statute. Reversed and remanded. Section 424 prohibits the misuse of public funds. It applies to “[e]ach officer of this state, or of any county, city, town, or district of this state, and every person charged with the receipt, safekeeping, transfer or disbursement of public moneys.” Section 424(a). Here, the Attorney General contended that Section 424 applied to all public officers, whereas Hubbard contended that it applied only to those officers “charged with the receipt, safekeeping, transfer, or disbursement of public moneys.” This court agreed with Hubbard’s interpretation, which most closely aligned with the Legislature’s purpose in enacting the statute. The public officer need not have exclusive control over public funds; rather, he or she must have actual authority that conferred some degree of material control over disposition of the funds. Because the evidence in this case supported the jury’s finding that Hubbard had such control, the Court of Appeals was reversed.

Opinion by Justice Cuellar.

– Brian Cardile