SECTIONS 12410-12439 - California Statutes

GOVERNMENT CODE

SECTION 12410-12439

12410. The Controller shall superintend the fiscal concerns of the
state. The Controller shall audit all claims against the state, and
may audit the disbursement of any state money, for correctness,
legality, and for sufficient provisions of law for payment. Whenever,
in his opinion, the audit provided for by Chapter 4 (commencing with
Section 925), Part 3, Division 3.6 of Title 1 of this code is not
adequate, the Controller may make such field or other audit of any
claim or disbursement of state money as may be appropriate to such
determination.

12410.5. The Controller shall receive every audit report prepared
for any local public agency in compliance with the federal Single
Audit Act of 1984 (P.L. 98-502; 31 U.S.C. Sec. 7501 et seq.) and
required under any law to be submitted to any state agency, and
shall, after ascertaining its compliance with that federal act,
transmit the report to the designated state agency.

12411. The Controller shall suggest plans for the improvement and
management of the public revenues.

12412. The Controller shall keep and state all accounts in which
the State is interested and keep a separate account under the head of
each specific appropriation, showing at all times the undisbursed
balance of the appropriation.

12412.1. The Controller shall:
(a) Account for expenditures as scheduled in the Budget Act. This
accounting shall utilize the uniform code structure developed jointly
by the Department of Finance and the Controller.
(b) Account for receipt of all federal funds and cross-reference
such funds by federal and state activity utilizing the federal
revenue accounting system developed by the Department of Finance
pursuant to Section 13300.
(c) Report monthly on each department's annual expenditure plan,
comparing budget expenditures and actual expenditures as scheduled in
the Budget Act and fund source.
(d) Report monthly on revenue with a comparison between actual and
estimated revenue.
(e) Maintain a file of all records prepared or maintained by the
Controller. The file shall be made available for purposes of the
fiscal data system developed pursuant to subdivision (i) of Section
13337.
Reporting requirements under subdivisions (a) to (e), inclusive,
of this section may be deemed satisfied upon making data available to
the fiscal information system developed pursuant to subdivision (i)
of Section 13337.

12413. The Controller shall keep an account between the State and
the Treasurer and charge the Treasurer with the balance in the
treasury when he comes into office and with all money received by
him, and credit him with all warrants drawn on and paid by him.

12415. The Controller may require any person, presenting an account
for settlement, to be sworn before him and to answer orally or in
writing as to any facts relating to it.

12416. The Controller shall require all persons who have received
any money belonging to the State and have not accounted for it to
settle their accounts and may inspect the books of any person charged
with the receipt, safekeeping, or disbursement of public money.

12417. The Controller may require all persons who have received
money or securities, or have had the disposition or management of any
property of the State of which an account is kept in his office to
render statements thereof to him; and all such persons shall render
such statement at such times and in such form as he may require.

12418. The Controller shall direct and superintend the collection
of all money due the State, and institute suits in its name:
(a) For all official delinquencies in relation to the assessment,
collection, and payment of the revenue.
(b) Against persons who by any means have become possessed of
public money or property and fail to pay it over or deliver it.
(c) Against all debtors of the State.
If the action is commenced in a court of competent jurisdiction in
Sacramento County such court is the proper court for trial, without
regard to the residence of the defendants.

12419. The Controller shall state an account with any person who:
(a) Has received money or has money or other personal property
which belongs to the State by escheat or otherwise, or has been
intrusted with the collection, management, or disbursement of any
money, bonds, or interest accruing therefrom, belonging to or held in
trust by the State, and fails to render an account thereof to and
make settlement with the Controller within the time prescribed by
law, or when no particular time is specified, fails to render such
account and make settlement.
(b) Fails to pay into the State treasury any money belonging to
the State upon being required so to do by the Controller, within 20
days after such requisition.
In stating such an account, the Controller shall charge 25 per
cent damages, and interest at the rate of 10 per cent annually from
the time of the failure.
In any action based thereon a copy of such an account is prima
facie evidence of the things therein stated. If the Controller can
not for want of information state an account, he may in any action
brought by him aver that fact, and allege generally the amount of
money or other property which is due or belongs to the State.

12419.2. (a) The Controller shall, under the authority to offset
granted by Section 12419.5 and in conjunction with the Franchise Tax
Board, develop a program to provide for multiple offsets with
adjustable priorities and, when a joint return is filed, the ability
to cross-match the liable person's social security number.
(b) The Controller shall charge, by arrangement with the entities
who elect to participate in the program, an amount sufficient to
reimburse the Controller and the Franchise Tax Board for the costs of
administration of the program. State agencies participating in the
offset program may add the cost of collection, as determined by the
Controller, to the amount due the agency.

12419.3. The Controller shall offset delinquent accounts against
personal income tax refunds that have been certified by the Franchise
Tax Board, in the following priority:
(a) The nonpayment of child or family support accounts enforced by
a local child support agency.
(b) The nonpayment of child or family support accounts enforced by
someone other than a local child support agency.
(c) The nonpayment of spousal support accounts enforced by a local
child support agency.
(d) The nonpayment of spousal support accounts enforced by someone
other than a local child support agency.
(e) The nonpayment of penalties to the Restitution Fund.
(f) The benefit overpayment accounts administered by the
Employment Development Department if no signed reimbursement
agreement exists, or if two consecutive payments on a reimbursement
agreement are delinquent at any time.
(g) The other offset accounts in the priority determined by the
Controller.

12419.4. The State has a lien for any taxes due the State from any
person or entity, upon any and all personal property belonging to
such person or entity and held by the State or amount owed to such
person or entity by the State. This section does not apply to salary
or wages owing to officers or employees of the State. Except as
limited in this section this lien shall apply to all such property
held or such amount owed by an agency of the State while such person
or entity owes any taxes to that agency or another agency of the
State. If the property held or amount owed is subject to Section
12419.5 of this code, the procedure set forth in that section shall
be followed in enforcing liens created herein. If the property held
or amount owed is not subject to Section 12419.5 of this code, the
lien created herein shall be enforced by means of written demand by
the creditor state agency on the agency holding the property or owing
the amount involved. The state agency holding the property or, owing
the amount involved, upon receipt of such written demand, shall
transfer the property, or shall pay the amount which it owes, but not
in excess of the taxes specified in the demand, to the creditor
state agency. The creditor state agency shall apply such payment to
the taxes owing to it, or shall reduce the property so transferred to
cash, apply so much as is necessary to pay the taxes owing to it,
and remit any excess to the person or entity. If the state agency
which holds the property of or owes an amount to the person or entity
also is owed taxes by such person or entity, the lien shall be
enforced by applying the amount owed by the state agency to the taxes
owed to such agency, or by reducing the property to cash and
applying the proceeds, or so much thereof as is required, to the
taxes owing to the state agency, remitting the excess, if any, to the
person or entity. Amounts paid to or applied by a state agency
pursuant to this section shall constitute payment by the person or
entity involved and the account of such person or entity shall be
credited immediately by the collecting state agency.
Immediately upon transfer or payment to another state agency of
the property held or amount owed, the agency which had held the
property or which had owed the amount involved shall give written
notice of the transfer or payment to the person or entity involved.
The notice may be served personally or by mail. If served by mail,
service shall be made pursuant to Section 1013 of the Code of Civil
Procedure and shall be addressed to the person or entity involved at
his or its address as it appears in the records of the agency which
had held the property or which had owed the amount involved. The
service shall be deemed complete at the time of the deposit of the
notice in the mail.
Nothing in this section shall permit one state agency to collect
or obtain such property or amount from another state agency so long
as the latter has any rights against such property or amount.
Property held or deposited with any state agency for a particular
purpose, such as security for the payment of taxes, shall not be
applied to any other purpose by the state agency holding the property
or amount until the property or amount is no longer needed for the
particular purpose for which the property or amount was held or
deposited.
Upon transfer or payment pursuant to the lien created in this
section, the state agency which had held the property or had owed the
amount involved is relieved and discharged of any and all liability.

12419.5. The Controller may, in his or her discretion, offset any
amount due a state agency from a person or entity, against any amount
owing that person or entity by any state agency. The Controller may
deduct from the claim, and draw his or her warrants for the amounts
offset in favor of the respective state agencies to which due, and,
for any balance, in favor of the claimant. Whenever insufficient to
offset all amounts due state agencies, the amount available shall be
applied in such manner as the Controller, in his or her discretion,
shall determine. If, in the discretion of the Controller, the person
or entity refuses or neglects to file his or her claim within a
reasonable time, the head of the state agency owing the amount shall
file the claim on behalf of that person or entity. If approved by the
Controller, the claim shall have the same force and effect as though
filed by that person or entity. The amount due any person or entity
from the state or any agency thereof is the net amount otherwise
owing that person or entity after any offset as provided in this
section.
For purposes of this section, an amount owing to a person or
entity by any state agency shall include any tax refund.
This section shall not apply to payment of on-line game prizes of
ninty-nine dollars ($99) or lower by California State Lottery
Retailers pursuant to subdivision (a) of Section 8880.32.

12419.7. For the purposes of Section 12419.5, an amount due a state
agency from a person or entity shall include any amount due a
community college district from a person for repayment of student
financial assistance or any other proper financial obligation due to
the district or a college.
If the Controller, in his or her discretion, offsets an amount due
a community college district from a person pursuant to Section
12419.5, the Controller shall remit the amount offset to the
district.

12419.8. (a) The Controller may, in his or her discretion, offset
any amount due a city or county from a person or entity pursuant to
paragraph (1), (2), or (4) of subdivision (c), and shall, at the
request of the city or county, offset any amount due a city or county
from a person or entity pursuant to paragraph (3) of subdivision
(c), against any amount owing the person or entity by a state agency
on a claim for a refund from the Franchise Tax Board under the
Personal Income Tax Law or the Bank and Corporation Tax Law, a claim
for refund from the State Board of Equalization under the Sales and
Use Tax Law, or from winnings in the California State Lottery.
Standards and procedures for submission of requests for offsets shall
be as prescribed by the Controller. Whenever insufficient funds are
available to satisfy an offset request, the Controller, after first
applying the amounts available to any amount due a state agency, may
allocate the balance among any other requests for offset.
(b) The Controller shall deduct and retain from any amount offset
in favor of a city or county an amount sufficient to reimburse the
Controller, the Franchise Tax Board, the State Board of Equalization,
or the California State Lottery for their administrative costs of
processing the offset payment.
(c) This section shall apply only to any of the following
situations:
(1) Where the amount has been reduced to a judgment.
(2) Where the amount is contained in an order of a court.
(3) Where the amount is from a bench warrant for payment of any
fine, penalty, or assessment.
(4) Where the amount is delinquent unsecured property taxes on
which a certificate lien has been filed for record in the office of
the county recorder pursuant to Section 2191.3 of the Revenue and
Taxation Code.
(d) For purposes of paragraph (4) of subdivision (c):
(1) Upon the tax collector's request for taxpayer identification
numbers required by the Controller's procedures, the tax collector
shall immediately notify the appropriate assessee, by registered or
certified mail, that the request has been made for the purpose of
intercepting refunds from the state government due the taxpayer, in
order to offset the delinquent property tax obligation. The letter
shall state that if the assessee does not pay the outstanding tax
amount to the tax collector within 20 days, the required taxpayer
identification number will be so provided.
(2) The tax collector shall not be named in any action that may be
brought as a result of compliance with this subdivision.

12419.9. (a) For the purposes of Section 12419.5, an amount due a
state agency from a person or entity shall include any amount due an
educational institution authorized pursuant to subdivision (a) of
Section 94760 of the Education Code from a person for repayment of
federally subsidized student loans. The Controller may establish
procedures to minimize administrative costs of collecting obligations
pursuant to this section.
(b) If the Controller, in his or her discretion, offsets an amount
due an educational institution from a person pursuant to Section
12419.5, the Controller shall remit the amount offset to the
educational institution.
(c) Offset pursuant to Section 12419.5 and this section shall be
limited to amounts due a person on a claim for a personal income tax
refund. Whenever the amount available is insufficient to offset all
amounts due state agencies, the amount available shall be applied in
such manner as the Controller, in his or her discretion, shall
determine.
(d) The Controller shall deduct and retain from any amount offset
pursuant to this section an amount sufficient to reimburse the
Controller and the Franchise Tax Board for the administrative costs
of processing the request for an offset.
(e) This section shall become operative on January 1, 1997.

12419.10. (a) (1) The Controller shall, to the extent feasible,
offset any amount overdue and unpaid for a fine, penalty, assessment,
bail, vehicle parking penalty, or court-ordered reimbursement for
court-related services, from a person or entity, against any amount
owing the person or entity by a state agency on a claim for a refund
from the Franchise Tax Board under the Personal Income Tax Law or the
Bank and Corporation Tax Law, from winnings in the California State
Lottery, or a cash payment of a claim for unclaimed property held by
the state. Standards and procedures for submission of requests for
offsets shall be as prescribed by the Controller. Whenever
insufficient funds are available to satisfy an offset request, the
Controller, after first applying the amounts available to any amount
due a state agency, may allocate the balance among any other requests
for offset.
(2) Any request for an offset for a vehicle parking penalty shall
be submitted within three years of the date the penalty was incurred.
This three year maximum term for refund offsets for parking tickets
applies to requests submitted to the Controller on or after January
1, 2004.
(b) Once an offset request for a vehicle parking penalty is made,
a local agency may not accrue additional interest charges, collection
charges, penalties, or other charges on or after the date that the
offset request is made. Payment of an offset request for a vehicle
parking penalty shall be made on the condition that it constitutes
full and final payment of that offset.
(c) The Controller shall deduct and retain from any amount offset
in favor of a city or county an amount sufficient to reimburse the
Controller, the Franchise Tax Board, the California State Lottery,
and the Department of Motor Vehicles for their administrative costs
of processing the offset payment.
(d) Notwithstanding Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1, or any other provision of law, the social
security number of any person obtained pursuant to Section 4150,
4150.2, or 12800 of the Vehicle Code is not a public record and shall
only be provided by the Department of Motor Vehicles to an
authorized agency for the sole purpose of making an offset pursuant
to this section for any unpaid vehicle parking penalty or any unpaid
fine, penalty, assessment, or bail of which the Department of Motor
Vehicles has been notified pursuant to subdivision (a) of Section
40509 of the Vehicle Code or Section 1803 of the Vehicle Code,
responding to information requests from the Franchise Tax Board for
the purpose of tax administration, and responding to requests for
information from an agency, operating pursuant to and carrying out
the provisions of, Part A (Aid to Families with Dependent Children),
or Part D (Child Support and Establishment of Paternity) of
Subchapter IV of Chapter 7 of Title 42 of the United States Code. As
used in this section, "authorized agency" means the Controller, the
Franchise Tax Board, or the California Lottery Commission.

12419.11. (a) The Labor Commissioner shall submit a request to the
Controller to offset amounts due from a person or entity as the
result of any judgment issued pursuant to Section 98.2 of the Labor
Code that is not satisfied within 90 days of the issuance of a final
judgment. The Controller shall, to the extent feasible, offset the
unpaid amount of the judgment against any amount owing the person or
entity on a claim for refund from the Franchise Tax Board under the
Personal Income Tax Law or the Bank and Corporation Tax Law, on a
claim for refund from the State Board of Equalization under the Sales
and Use Tax Law, or from winnings in the California State Lottery.
Standards and procedures for submission of requests for offsets shall
be as prescribed by the Controller. Whenever insufficient funds are
available to satisfy an offset request, the Controller, after first
applying the amounts available to any amount due a state agency, may
allocate the balance among any other requests for offset.
(b) At the time a judgment becomes final, corporations against
whom a claim is filed shall be required to provide the Labor
Commissioner with the corporation's identification number issued by
the Secretary of State, and an individual against whom a claim is
filed shall be required to provide his or her Social Security number.

12419.12. (a) (1) The Controller shall, to the extent feasible,
offset any amount overdue and unpaid for a bridge toll or a
high-occupancy toll lane fee and any interest, fine, penalty, bail,
collection fee, or other charge on account of nonpayment of the
bridge toll or high-occupancy toll lane fee as and when due to a
government entity entitled thereto, from a person or entity, against
any amount owing the person or entity by a state agency on a claim
for a refund from the Franchise Tax Board under the Personal Income
Tax Law or the Bank and Corporation Tax Law or from winnings in the
California State Lottery. Standards and procedures for submission of
requests for offsets shall be as prescribed by the Controller. The
government entity shall rank with cities and counties in the priority
of agency offset requests if insufficient funds are available to
satisfy all offset requests.
(2) Any request for an offset pursuant to this section shall be
submitted within three years of the date the bridge toll or
high-occupancy toll lane fee was due.
(b) The Controller shall deduct and retain from any amount so
offset an amount sufficient to reimburse the Controller, the
Franchise Tax Board, the California State Lottery, and the Department
of Motor Vehicles for their administrative costs of processing the
offset payment.

12420.1. The Controller shall establish special accounts for any
state officer or employee requesting salary or wage deductions in
order that sufficient funds may be accumulated to his credit for the
purchase of United States savings bonds or similar United States
obligations. Funds so accumulated are trust funds and may be
withdrawn from the treasury upon claims filed by the Controller for
the purchase of such obligations, or for refunds.

12420.2. The Controller may purchase annuity contracts on behalf of
any state employer under the uniform state payroll system, excluding
the California State University System, that employs persons
eligible to participate in an annuity contract and custodial account
as described in Section 403(b) of the Internal Revenue Code of 1986
provided that all of the following conditions are met:
(a) The annuity contract is under an annuity plan which meets the
requirements of subdivision (b) of Section 403 of the Internal
Revenue Code.
(b) The employee makes application to the Controller for the
purchase and reduction of salary.
(c) All provisions of the Insurance Code applicable to the
purchase of those annuities are satisfied.

12421. The Controller shall authenticate with his official seal all
warrants drawn by him, and all copies of papers issued from his
office. The Controller may affix his official seal to documents which
he issues in any manner he desires including printing, facsimile
signature machine, rubber stamp, die, and sealing machine.

12422. The Controller shall summon county auditors to meet with the
Controller or his or her duly authorized representatives, at least
once each year, in such groups and at such place or places within the
state as may be designated by the Controller for the purpose of
discussion of problems dealing with county budget procedure,
reporting of financial transactions of the counties, allocation of
property tax revenues, including the Special District Augmentation
Fund, and to promote uniformity of procedure in all matters
pertaining to the duties of county auditors, throughout the state.
The expenses of any county auditor attending the meeting shall be a
charge against the funds of the county, to be paid in the same manner
as other county charges are paid.

12423. The Controller shall summon county tax collectors and
redemption officers or the authorized representative of any county
tax collector or redemption officer to meet with the Controller or
his duly authorized representatives in such groups and at such place
or places within the State as may be designated by the Controller for
the purpose of discussion of tax collection, enforcement of taxes,
and problems relating thereto, in order to promote uniformity of
procedure in the collection of taxes on real and personal property
throughout the State. The actual and necessary expenses of any such
county officer or his authorized representative incurred while
traveling to and from and while attending such meeting, shall be a
charge against the county, to be paid in the same manner as other
county charges are paid.

12424. The Controller may render service pertinent to financial,
budgetary and taxation problems and procedures for any county, city,
city and county, any other political subdivision, or any district of
the State upon such terms and conditions as may be agreed upon
between the Controller and the governing body of such county, city,
city and county, other political subdivision or district. The money
received for such service shall be paid into the State Treasury to
the credit and in augmentation of the current appropriation for the
support of the State Controller, or, as the case may be, that
division of the Controller's Office furnishing the service.

12425. Upon the submission of claims by a state agency, with the
approval of the Department of General Services, the Controller may
pay, from appropriations available therefor, money to the United
States for costs of a project undertaken by the United States for and
in behalf of, or in cooperation with, the State of California, prior
to the commencement or completion of the project.

12428. In the event either the Governor or the Legislature should
obtain federal approval to transfer programs receiving federal
support for the mentally retarded or mentally disordered from one
state department to another state department under the provisions of
Public Law 90-577 (Intergovernmental Cooperation Act of 1968), the
State Controller shall, upon approval of the Director of Finance,
transfer to a state department designated by the Governor such parts
of the appropriation of the other state departments that are related
to mentally retarded or mentally disordered programs, provided
further, that such transfer shall enable the state to make maximum
utilization of available state and federal funds.

12429. The Controller may, with the approval of the Department of
Finance, seek recovery from the federal government of Social Security
contribution overpayments made with regard to the compensation of
employees who were on approved leaves of absence on account of
sickness, in accordance with federal law. The program shall be
conducted by the Controller on behalf of the state and its
departments and agencies, including the California State University.
The activities may also be conducted by and for the University of
California.
This program shall be self supporting from recovered funds.
Notwithstanding the provisions of Section 13340, there is hereby
appropriated to the Controller from the recovered funds: (a) an
amount sufficient to pay the reasonable costs, including contractual
services, as approved by the Department of Finance, of the Controller
in administering this program; (b) the amount of any recovered
overpayments of employee contributions, for refund to the employees;
(c) the amount of the balance of the recovered funds after
application of subdivisions (a) and (b), for deposit in the
respective funds from which they were originally derived.
A private vendor may be utilized in the execution of the program
and on such terms and conditions as are acceptable to the Department
of Finance and the Controller.
The Controller may establish an OASDI Refund Account in the
Payroll Revolving Fund for receipt of related funds and for payment
of costs. Any recovery of OASDI funds may be reflected in a credit or
credits granted by the Social Security Administration against
current employer and employee contributions, in which case, an amount
equivalent to the credit or credits shall be transferred from the
moneys in the Payroll Revolving Fund to the OASDI Refund Account.

12430. Annually, the Controller, the State Auditor, and the
Director of the Department of Finance shall each prepare a plan to
meet their audit responsibilities. With respect to audits to fulfill
the requirements necessary for the receipt of federal funds, the
State Auditor shall be primarily responsible for financial audits,
and the Director of Finance or the Controller shall be primarily
responsible for compliance audits, and the Director of Finance shall
be primarily responsible for coordinating state agency internal
audits and determining when agencies are required to obtain federally
mandated audits. Upon completion of these audit plans, the
Controller, State Auditor, and Director of Finance shall meet to
review and discuss the plans with the purpose of coordinating their
audit efforts to avoid unnecessary duplication and negotiation with
federal agencies regarding federally mandated audits.
Subsequent to their review of the audit plans and negotiations
with federal agencies if the Controller, the Director of Finance, or
the State Auditor determines that the proposed audit plan of the
other does not fulfill all audit requirements necessary for the
receipt of federal funds, they may expand the scope of their audit of
state agencies to meet the additional federal audit requirements.
The financial audit report issued by the State Auditor and the
compliance audit report issued by the Controller or the Director of
Finance or both are intended to fulfill federally mandated audit
requirements. These audit reports shall be performed in accordance
with the "Standards for Audits of Governmental Organizations,
Programs, Activities and Functions," published by the Comptroller
General of the United States, and the standards published by the
American Institute of Certified Public Accountants.
Nothing in this section shall be construed to limit, restrict, or
otherwise infringe upon the duty of the State Auditor to conduct
annual financial audits pursuant to Section 10534 or to limit,
restrict, or otherwise infringe upon the authority of the Joint
Legislative Audit Committee to direct the State Auditor to conduct
any audit of state government pursuant to Chapter 6.5 (commencing
with Section 8540) of Division 1 of Title 2.

12431. Prior to the payment of any claim from funds appropriated
pursuant to Section 7 of Chapter 1123 of the Statutes of 1977, the
Controller shall require the claimant to certify in writing that it
has attempted to recover its costs pursuant to Sections 1203.1 and
1203.1b of the Penal Code.

12432. (a) The Legislature hereby finds and declares that it is
essential for the state to replace the current automated human
resource/payroll systems operated by the Controller to ensure that
state employees continue to be paid accurately and on time and that
the state may take advantage of new capabilities and improved
business practices. To achieve this replacement of the current
systems, the Controller is authorized to procure, modify, and
implement a new human resource management system that meets the needs
of a modern state government. This replacement effort is known as
the 21st Century Project.
(b) Notwithstanding any other provision of law, beginning with the
2004-05 fiscal year, the Controller may assess the special and
nongovernmental cost funds in sufficient amounts to pay for the
authorized 21st Century Project costs that are attributable to those
funds. Assessments in support of the expenditures for the 21st
Century Project shall be made quarterly, and the total amount
assessed from these funds annually may not exceed the total
expenditures incurred by the Controller for the 21st Century Project
that are attributable to those funds in that fiscal year.
Appropriations for this purpose shall be made in the annual Budget
Act.
(c) To the extent permitted by law, beginning with the 2004-05
fiscal year, the Controller shall establish agreements with various
agencies and departments for the collection from federal funds of
costs that are attributable to federal funds. The total amount
collected from those agencies and departments annually may not exceed
the total expenditures incurred by the Controller for the 21st
Century Project that are attributable to federal funds in that fiscal
year. Appropriations for that purpose shall be made in the annual
Budget Act.
(d) It is the intent of the Legislature that, beginning not
earlier than the 2006-07 fiscal year, future annual Budget Acts
include General Fund appropriations in sufficient amounts for
expenditures for the 21st Century Project that are attributable to
the General Fund. It is the Legislature's intent that the share of
the total project costs paid for by the General Fund shall be
equivalent to the share of the total project costs paid for from
special and nongovernmental cost fund assessments and collections
from federal funds.
(e) This section shall remain in effect only until June 30, 2011,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 30, 2011, deletes or extends that date.

12439. (a) Beginning July 1, 2002, any state position that is
vacant for six consecutive monthly pay periods shall be abolished by
the Controller on the following July 1. The six consecutive monthly
pay periods may occur entirely within one fiscal year or between two
consecutive fiscal years.
(b) The Director of Finance may authorize the reestablishment of
any positions abolished pursuant to this section if one or more of
the following conditions existed during part or all of the six
consecutive monthly pay periods:
(1) There was a hiring freeze in effect during part or all of the
six consecutive pay periods.
(2) The department has diligently attempted to fill the position,
but was unable to complete all the steps necessary to fill the
position within six months.
(3) The position has been designated as a management position for
purposes of collective bargaining and has been held vacant pending
the appointment of the director, or other chief executive officer, of
the department as part of the transition from one Governor to the
succeeding Governor.
(4) The classification of the position is determined to be
hard-to-fill.
(5) Late enactment of the budget causes the department to delay
filling the position.
(c) The Controller shall reestablish any position for which the
director of the department in which that position existed prior to
abolishment certifies by August 15 that one or more of the following
conditions existed during part or all of the six consecutive pay
periods:
(1) The position is necessary for directly providing 24-hour care
in an institution operated by the state.
(2) The position is necessary for the state to satisfy any
licensing requirements adopted by a local, state, or federal
licensing or other regulatory agency.
(3) The position is directly involved in services for public
health, public safety, or homeland security.
(4) The position is being held vacant because the previous
incumbent is eligible to exercise a mandatory right of return from a
leave of absence as may be required by any provision of law
including, but not limited to, leaves for industrial disability,
nonindustrial disability, military service, pregnancy, childbirth, or
care of a newborn infant.
(5) The position is being held vacant because the department has
granted the previous incumbent a permissive leave of absence as may
be authorized by any provision of law including, but not limited to,
leaves for adoption of a child, education, civilian military work, or
to assume a temporary assignment in another agency.
(6) Elimination of the position will directly reduce state
revenues or other income by more than would be saved by elimination
of the position.
(7) The position is funded entirely from moneys appropriated
pursuant to Section 221 of the Food and Agricultural Code, was
established with the Controller pursuant to Section 221.1 of the Food
and Agricultural Code, and directly responds to unforeseen
agricultural circumstances requiring the relative expertise that the
position provides.
(d) Each department shall maintain for future independent audit
all records on which the department relied in determining that any
position or positions satisfied one or more of the criteria specified
in paragraphs (1) to (6), inclusive, of subdivision (c).
(e) The only other exceptions to the abolishment required by
subdivision (a) are those positions exempt from civil service or
those instructional and instruction-related positions authorized for
the California State University. No money appropriated by the
subsequent Budget Act shall be used to pay the salary of any
otherwise authorized state position that is abolished pursuant to
this section.
(f) The Controller, no later than September 10 of each fiscal
year, shall furnish the Department of Finance in writing a
preliminary report of any authorized state positions that were
abolished effective on the preceding July 1 pursuant to this section.
(g) The Controller, no later than October 15 of each fiscal year,
shall furnish the Joint Legislative Budget Committee and the
Department of Finance a final report on all positions that were
abolished effective on the preceding July 1.
(h) Departments shall not execute any personnel transactions for
the purpose of circumventing the provisions of this section.
(i) Each department shall include a section discussing its
compliance with this section when it prepares its report pursuant to
Section 13405.
(j) As used in this section, department refers to any department,
agency, board, commission, or other organizational unit of state
government that is empowered to appoint persons to civil service
positions.
(k) This section shall become operative July 1, 2002.