What the changes will do

BOISE – State lawmakers are working to update a century-old law.  The changes will help protect state money.

The current law on embezzlement doesn't protect against modern day thieves. 

A bi-partisan effort is in place at the Capitol Annex to change the Old West into modern day.

The current law is very specific and refers only to those who collect, manage and protect money.

But these are the days of a company credit card -- giving more people access to city funds.

It was back in 1864, that the state of Idaho became a U.S. territory.  As pioneers settled in the Gem State, the law put on the books was used a discipline for embezzlement.

"There was only a certain number of people who had access to public funds and they were people who collected fees and lock box, and since that time things have changed a lot," said Sen. Kate Kelly, D-Boise.

While the number of people having access to public funds has changed, the 144-year-old law has not.  So, Sen. Kelly and her Republican counterparts are working on legislation to change that, bringing an archaic law to match current financial practices.

Kelly has a list of dozens of county agencies where embezzlement has taken place.  Over a 15-year period, 31 Idaho counties have been ripped off for a sum of $1.5 million.

"I think the public would be surprised, I know I was,” said Kelly.

The worst case of embezzlement comes from the Jefferson County School District.  More than $600,000 was taken over a period of time.

Four other government entities were hit hard by this type of crime, including the Kamiah Highway District, the city of Troy, Twin Falls and Jerome counties.

"With financial management systems the way they are right now, and people having access to credit cards and online data, it's time," said Kelly.

The proposed bill would change the law from including people who manage, collect, and protect funds - to a much broader scope and include anyone with access to a public account.

There would be several levels, from a misdemeanor for government workers - to an immediate felony for elected officials.

"It emphasizes to public officials that they need to be managing the money's carefully, and if they do take it, there is going to be serious consequences," said Kelly.

There is a companion bill before lawmakers that goes with the embezzlement bill.

It pertains to government retirement, and if passed, those who embezzle could have to pay back money owed through their retirement fund.