SECTIONS 16300-16326 - California Statutes

GOVERNMENT CODE

SECTION 16300-16326

16300. The General Fund consists of money received into the
treasury and not required by law to be credited to any other fund.

16301. Except as otherwise provided by law, all money belonging to
the State received from any source whatever by any state agency shall
be accounted for to the Controller at the close of each month, or
more frequently if required by the Controller or the Department of
Finance, in such form as he prescribes, and on the order of the
Controller be paid into the Treasury and credited to the General
Fund, provided that amounts received as partial or full reimbursement
for services furnished shall be credited to the applicable
appropriation.

16301.5. Any money collected or received after September 18, 1947,
by the Controller as restitutions from former recipients of relief
under the California Unemployment Relief Act of 1935 or any other act
relating to unemployment relief shall be deposited in the General
Fund.

16302. Whenever any person donates any money to the State, the
Treasurer shall receive it, upon the receipt of a certificate from
the Controller. If the donor, at the time of making the donation,
files with the Controller a written designation of the fund or
appropriation he desires to benefit thereby, his donation shall be
credited accordingly. If such a designation is not made, the donation
shall be credited to the State School Fund.
The acceptance of any such donation shall be subject to the
provisions of Section 11005 of this code.

16302.1. (a) Whenever any person pays to any state agency pursuant
to law an amount covering taxes, penalties, interest, license, or
other fees, or any other payment, and it is subsequently determined
by the state agency responsible for the collection thereof that this
amount includes an overpayment of ten dollars ($10) or less of the
amount due the state pursuant to the assessment, levy, or charge to
which the payment is applicable, the amount of the overpayment may be
disposed of in either of the following ways:
(1) The state agency responsible for the collection to which the
overpayment relates may apply the amount of the overpayment as a
payment by the person on any other taxes, penalties, interest,
license, or other fees, or any other amount due the state from that
person if the state agency is responsible by law for the collection
to which the overpayment is to be applied as a payment.
(2) Upon written request of the state agency responsible for the
collection to which the overpayment relates, the amount of the
overpayment shall, on order of the Controller, be deposited as
revenue in the fund in the State Treasury into which the collection,
exclusive of overpayments, is required by law to be deposited.
(b) The California Victim Compensation and Government Claims Board
may adopt rules and regulations to permit state agencies to retain
these overpayments where a demand for refund permitted by law is not
made within six months after the refund becomes due, and the retained
overpayments shall belong to the state.
(c) Except as provided in subdivision (b), this section shall not
affect the right of any person making overpayment of any amount to
the state to make a claim for refund of the overpayment, nor the
authority of any state agency or official to make payment of any
amount so claimed, if otherwise authorized by law.

16302.2. Upon approval of the Director of Finance, any state agency
with respect to any amount required to be shown on any form
prescribed by the agency, or any amount of credit or refund, or any
amount to be collected as a deficiency or underpayment of any tax,
penalty, interest, license or other fee, or any other payment, may
provide by regulation for the disregard of the fractional part of a
dollar, unless it amounts to fifty cents ($0.50) or more, in which
case it shall be increased to one dollar ($1).

16302.3. Notwithstanding the provisions of Section 16302.2, state
agencies may accept forms on which any amount or tax, penalty,
interest, license or other fee, or any other payment is reported in
dollars and cents and may compute the amount due on that basis in
lieu of recomputing the amount due on the basis of regulations issued
pursuant to Section 16302.2; provided, that such recomputation would
not change the amount due by more than two dollars ($2).

16303. If money withdrawn from the Treasury pursuant to a valid act
of appropriation is subsequently returned, in whole or part, the
Controller shall credit it back to the special or general
appropriation from which it was drawn, and it is available for the
purpose for which it was appropriated.
Money so returned after expiration of the period of availability
of such appropriation may be credited by the Controller to either the
appropriation or the fund from which it was drawn. In making such
determination, the Controller shall take into account, among other
things: the amount of the abatement, the time elapsed since the
reversion of the appropriation, and the undisbursed balance remaining
in the appropriation.

16304. An appropriation shall be available for encumbrance during
the period specified therein, or, if not otherwise limited by law,
for three years after the date upon which it first became available
for encumbrance. An appropriation containing the term "without regard
to fiscal years" shall be available for encumbrance from year to
year until expended.
An appropriation shall be deemed to be encumbered at the time and
to the extent that a valid obligation against the appropriation is
created.
As used in this code and in every other statute heretofore or
hereafter enacted, the term "unexpended balance" shall be construed
to mean "unencumbered balance."
Appropriations for the following purposes are exempt from
limitations as to period of availability in any appropriation, and
shall remain available from year to year until expended:
(a) Payment of interest and redemption charges on any portion of
the bonded debt of the state.
(b) Transfers of money from any fund for the benefit of elementary
schools, high schools, community colleges, the University of
California, or any interest and sinking fund in the State Treasury.
(c) Money transferred to revolving funds specifically created by
law, including, but not limited to, the Architecture Revolving Fund
and the Water Resources Revolving Fund.
(d) Appropriations available for the acquisition of real property
to the extent that such appropriations have been encumbered by the
filing of condemnation proceedings on behalf of the State of
California prior to the expiration of the period of availability of
the appropriation.
(e) Money transferred to and expendable from funds other than the
fund in which originally deposited, pursuant to the provisions of law
earmarking or appropriating for expenditure certain classes of
revenue or other receipts.
(f) Continuing provisions of law appropriating for specific
purposes certain classes of revenue or other receipts, upon their
deposit in a particular fund in the State Treasury or upon their
collection by an agency of this state.

16304.01. Notwithstanding Section 16304, an appropriation available
for the acquisition of real property to the extent that such
appropriation is required to carry out the provisions of Chapter 16
(commencing with Section 7260) of Division 7 of Title 1 shall be
available for five years after the date upon which it first became
available for encumbrance.

16304.1. Disbursements in liquidation of encumbrances may be made
before or during the two years following the last day an
appropriation is available for encumbrance, except in the case of a
fund made up of federal funds. Disbursements in liquidation of
encumbrances may be made before or during the four years following
the last day an appropriation of federal funds is available for
encumbrance. Whenever, during either liquidation period, the Director
of Finance determines that the project for which the appropriation
was made is completed and that a portion of the appropriation is not
necessary for disbursements, that portion shall, upon order of the
Director of Finance, revert to and become a part of the fund from
which the appropriation was made. Upon the expiration of two years,
or four years in the case of a fund made up of federal funds,
following the last day of the period of its availability, the
undisbursed balance in any appropriation shall revert to and become a
part of the fund from which the appropriation was made. Subsequent
to reversion any unpaid encumbrance against the appropriation may be
paid from any current appropriations available for the same purposes.
To the extent that appropriations are exempt from limitations as
to periods of availability under Section 16304, they shall not be
subject to the provisions of this section.

16304.2. Notwithstanding Section 16304, any capital outlay
appropriation enacted on or after July 1, 1987, from a fund created
by a general obligation bond act approved by the voters for a project
which was, or is, subsequently delayed as a result of litigation,
is, and shall be, hereby reappropriated for an additional three
years, commencing with the operative date of the statute adding this
section, or upon the expiration of the original period of
encumbrance, whichever is later.

16304.3. (a) Notwithstanding Section 16304, an appropriation for an
approved cooperative work agreement shall be available for
expenditure as provided in this section.
(b) An approved cooperative work agreement is a binding contract
or agreement between multiple parties, including the state or other
governmental entities, or private nonprofit organizations, for work
that cannot be completed for valid and substantial reasons during the
period of time for which the funding is available for liquidation,
and that meets all of the following criteria:
(1) The cooperative work agreement has been approved by the
Department of Finance.
(2) The work to be completed is consistent with the intent of the
original appropriation.
(3) The cooperative work agreement is funded only from
appropriations for local assistance.
(c) Only that portion of the appropriation already encumbered upon
approval of the cooperative work agreement by the Department of
Finance shall be available to complete the work specified in the
agreement. Any unencumbered or disencumbered balance shall revert to
the fund of origin consistent with standard state accounting
practices.
(d) The unliquidated balance subject to the approved cooperative
work agreement shall revert to the fund of origin no later than eight
years from the date of the original appropriation.
(e) This section shall not apply to cooperative work agreements
entered into prior to January 1, 2001.

16304.5. Upon prior approval of the Department of Finance,
contracts for construction of any California State Fair and
Exposition project for which funds have been appropriated may be
entered into prior to the date that such funds will be available for
expenditure if such construction will not be completed until
subsequent to the date of availability of the funds. After the date
such appropriation becomes available for expenditure the Controller
may make expenditures pursuant to a contract entered into pursuant to
this section.

16304.6. Within the time during which the appropriation is
available for expenditure, the California Victim Compensation and
Government Claims Board at the request of the director of the
department concerned and with the approval of the Director of
Finance, may authorize that unneeded funds in any appropriation for
the support of an institution, school, or college or for family care
or private home care or for parole supervision activities within any
of the following departments shall be available and be deemed
appropriated for the support of any institution, school, or college
or for family care or private home care or for parole supervision
activities within the same department:
(a) Department of Corrections and Rehabilitation.
(b) Department of the Youth Authority.
(c) State Department of Education.
(d) State Department of Mental Health.

16304.7. Upon the effective date of an act abolishing any of the
powers or duties of any state officer or agency, the unexpended
balance of any appropriation for such officer or agency which was
intended to be used for the performance of such powers or duties
shall revert to the fund from which such appropriation was made.

16304.8. Upon the effective date of an act making any change in the
fund from which an appropriation for any state officer or agency is
payable, such appropriation or the applicable portion thereof shall
become payable from the fund designated in that law. The Department
of Finance shall determine the adjustments to be made as a result of
such change in the law, and shall certify the same to the State
Controller. The State Controller shall thereupon make the necessary
entries upon his records.

16304.9. Upon the effective date of an act transferring any of the
powers or duties of any state officer or agency to another state
officer or agency, the Department of Finance shall determine the
portion remaining of any appropriation which was intended to be used
for the performance of such powers or duties, and shall certify this
amount to the State Controller. The State Controller shall thereupon
transfer such amount to the state officer or agency to which such
powers or duties were transferred.

16305. The purpose of this legislation is hereby declared to be the
establishment of a centralized State Treasury System under which
state moneys will be adequately protected, and at the same time will
be controlled and invested in such a way as to realize the maximum
return consistent with safe and prudent treasury management. This
legislation visualizes that the State Controller will be responsible
for maintaining the segregated accounts of the moneys of state
agencies which are deposited with the Treasurer in trust, and that
the State Treasurer will not maintain records which in their detail
duplicate the accounting records maintained by the Controller for
these moneys.

16305.1. It is anticipated that as a result of this legislation
state agencies will no longer need to maintain large sums of money in
agency bank accounts, and that future agency bank accounts permitted
by the Director of Finance will contain only amounts of money
necessary for day-to-day petty cash needs.

16305.2. All money in the possession of or collected by any state
agency or department, except for money in the Local Agency Investment
Fund, is subject to Sections 16305.3 to 16305.7, inclusive, and is
hereafter referred to as state money.

16305.3. All state money shall be deposited in trust in the custody
of the Treasurer, except when otherwise authorized by the Director
of Finance, or unless deposited directly in the State Treasury. All
state money deposited in trust in the custody of the Treasurer shall
be held in a trust account or accounts and may be withdrawn only upon
the order of the depositing agency or its disbursing officer. The
provisions of Sections 16305.3 to 16305.7, inclusive, shall not be
construed to repeal or amend any provision of law now requiring
officers or employees to make daily, weekly or monthly settlements
with the Treasurer. All such money held by the State Treasurer in
trust shall be subject to audit by the Department of Finance and
shall also be subject to cash count, as provided in Sections 13297,
13298, and 13299 of this code.

16305.4. The Director of Finance shall establish any system which
may be necessary or convenient in the handling of trust accounts of
the state agencies and in establishing the system to be followed in
receiving, holding and disbursing such money. The system established
by the Director of Finance shall in general provide that the
Controller is responsible for maintaining accounts to record the
Treasurer's accountability, and shall maintain the separate account
for each trust deposit.

16305.5. Money in treasury trust accounts shall be deposited,
invested and reinvested in the same manner and to the same extent as
if the money in trust accounts were money in the State Treasury.

16305.7. Any increment collected as the result of investment of
state money shall be collected by the State Treasurer and reported by
him to the State Controller for credit to the General Fund in the
State Treasury.

16305.8. Nothing in Sections 16305.3 to 16305.7, inclusive, shall
apply to money drawn or collected by the Regents of the University of
California.

16305.9. (a) All money in the Local Agency Investment Fund shall be
held in trust in the custody of the Treasurer.
(b) All money in the Local Agency Investment Fund is nonstate
money. That money shall be held in a trust account or accounts. The
Controller shall be responsible for maintaining those accounts to
record the Treasurer's accountability, and shall maintain a separate
account for each trust deposit in the Local Agency Investment Fund.
(c) That money shall be subject to audit by the Department of
Finance and to cash count as provided for in Sections 13297, 13298,
and 13299. It may be withdrawn only upon the order of the depositing
entity or its disbursing officers. The system that the Director of
Finance has established for the handling, receiving, holding, and
disbursing of state agency money shall also be used for the money in
the Local Agency Investment Fund.
(d) All money in the Local Agency Investment Fund shall be
deposited, invested, and reinvested in the same manner and to the
same extent as if it were state money in the State Treasury.

16306. When any State revenue, other than revenue payable into the
General Fund, is set apart to be applied by the State to the support
of the public school system and the State university, the amount set
apart shall be repaid into the funds into which the revenue would
otherwise have been paid or from which the revenue was set apart.

16307. There are hereby appropriated out of the General Fund such
amounts as may be necessary to make such repayments. Such repayments
shall be made from the first money accruing to the General Fund over
and above the amounts:
(a) Then necessary to provide for payments for the support of the
public school system and the State university, and
(b) Which under the State Constitution shall first be applied to
the payment of obligations of the State existing at the time the
revenues were set apart.

16308. Claims against special fund appropriations for the support
of any State agency, that can not be paid by reason of the depletion
of the special fund as a result of any setting apart of revenues
under Section 15 of Article XIII of the Constitution shall be paid
from the General Fund to the extent only of the sums so set apart.

16309. If money is set apart from more than one nongeneral fund
revenue, and available money is insufficient for repayment in full,
repayments shall be made in proportion to the unpaid balances.

16310. (a) When the General Fund in the Treasury is or will be
exhausted, the Controller shall notify the Governor and the Pooled
Money Investment Board. The Governor may order the Controller to
direct the transfer of all or any part of the moneys not needed in
other funds or accounts to the General Fund from those funds or
accounts, as determined by the Pooled Money Investment Board,
including the Surplus Money Investment Fund or the Pooled Money
Investment Account. All moneys so transferred shall be returned to
the funds or accounts from which they were transferred as soon as
there are sufficient moneys in the General Fund to return them. No
interest shall be charged or paid on any transfer authorized by this
section, exclusive of the Pooled Money Investment Account, except as
provided in this section. This section does not authorize any
transfer that will interfere with the object for which a special fund
was created or any transfer from the Central Valley Water Project
Construction Fund, the Central Valley Water Project Revenue Fund, or
the California Water Resources Development Bond Fund.
(b) (1) Interest shall be paid on all moneys transferred to the
General Fund from the following funds:
(A) The Department of Food and Agriculture Fund.
(B) The DNA Identification Fund.
(C) The Mental Health Services Fund.
(D) All funds created pursuant to the California Children and
Families Act of 1998, enacted by Proposition 10 at the November 3,
1998, statewide general election.
(E) Any funds retained by or in the possession of the California
Exposition and State Fair pursuant to this section.
(2) With respect to all other funds, and unless otherwise
specified, if the total moneys transferred to the General Fund in any
fiscal year from any special fund pursuant to this section exceed an
amount equal to 10 percent of the total additions to surplus
available for appropriation as shown in the statement of operations
of a prior fiscal year as set forth in the most recent published
annual report of the Controller, interest shall be paid on the
excess. Interest payable under this section shall be computed at a
rate determined by the Pooled Money Investment Board to be the
current earning rate of the fund from which transferred.
(c) Except as described in subdivision (d), all moneys in the
State Treasury may be loaned for the purposes described in
subdivision (a).
(d) Subdivision (c) shall not apply to any of the following:
(1) The Local Agency Investment Fund.
(2) Funds classified in the State of California Uniform Codes
Manual as bond funds or retirement funds.
(3) All or part of the moneys not needed in other funds or
accounts for purposes of subdivision (a) where the Controller is
prohibited by the California Constitution, bond indenture, or
statutory or case law from transferring all or any part of those
moneys.

16311. The Treasurer may pay all expense for collecting bonds and
bond coupons. Where the proceeds of the collection are part of any
special fund, the expense shall be charged against the special fund
and credited to the General Fund.

16312. (a) Notwithstanding and in addition to any other provision
of law permitting withdrawal of moneys from the General Fund for
deposit into a special fund for the purpose of carrying out a program
or project with repayment to the General Fund to come from the
proceeds of the later sale of state bonds or notes, the Pooled Money
Investment Board may instead make a loan from the Pooled Money
Investment Account directly to any such special fund, on such terms
and conditions as the board may determine, upon request made to the
board by an appropriate official. Any official authorized by law to
seek, authorize, or approve a withdrawal of moneys from the General
Fund for these purposes may in the alternative request a loan from
the board as provided in this section and execute such documents as
are required by the board to obtain and repay the loan. Interest on
the loan shall be determined as provided in Section 16314.
(b) The Pooled Money Investment Board may also make a loan from
the Pooled Money Investment Account to any special fund for the
purpose of carrying out a program or project that is authorized to be
financed by issuing bonds, notes, or other evidence of indebtedness,
where the special fund does not qualify under subdivision (a). Any
loan shall be subject to those terms and conditions as the board
shall determine and interest shall be determined as provided in
Section 16314.
Any state agency or other entity of state government that has
authority to issue bonds may request a loan from the Pooled Money
Investment Account and execute such documents as are required by the
board to obtain and repay the loan.
(c) When a loan is made pursuant to subdivision (a) or (b) to a
special fund to carry out a state general obligation bond program,
other than a program adopted pursuant to an initiative statute prior
to August 22, 1988, or Chapter 27, 30, 48, or 49 of the Statutes of
1988, the special fund shall pay the loan interest out of the
proceeds derived from bond sales. For non-self-liquidating programs
adopted pursuant to an initiative statute prior to August 22, 1988,
or Chapter 27, 30, 48, or 49 of the Statutes of 1988, the General
Fund shall pay the loan interest.
(d) Notwithstanding Section 13340, amounts required to pay
interest on loans made to non-self-liquidating general obligation
bond programs are hereby continuously appropriated from the General
Fund.
The Legislature hereby finds and declares that these
appropriations for interest payments regarding general obligation
bond programs are appropriations for debt service as defined in
Section 8 of Article XIII B of the California Constitution and
therefore are exempt from the appropriations limit set by that
article.

16313. Notwithstanding and in addition to any other provision of
law permitting loans to state agencies from the Pooled Money
Investment Account, the Pooled Money Investment Board may make a
loan, on such terms and conditions as the board may determine, from
the Pooled Money Investment Account to any state agency in order to
prepay or replace existing financing when the board determines it is
in the best interest of the state to do so. Interest on the loans
shall be determined as provided in Section 16314.
Any state agency with existing financing may request a loan from
the Pooled Money Investment Account to replace existing financing and
may execute such documents as are required by the board to obtain
and repay the loan.

16314. (a) The Pooled Money Investment Board shall establish the
annual rate of interest charged on short-term loans of state funds
executed after January 1, 1981, where the statute authorizing such
loans does not prohibit interest or specify an interest rate or a
method of computing an interest rate. The rate of interest shall not
be less than the last available daily rate of return earned by the
Pooled Money Investment Account on the actual date of withdrawal or
transfer of the loan funds.
(b) The Pooled Money Investment Board shall establish the annual
rate of interest charged on long-term loans of state funds executed
after January 1, 1981, where the statute authorizing such loans does
not prohibit interest or specify an interest rate or a method of
computing an interest rate. The rate of interest shall not be less
than the lesser of the last available daily rate of return earned by
the Pooled Money Investment Account on the actual date of withdrawal
or transfer of the loan funds, or the average of the annual rates of
return earned by the Pooled Money Investment Account for the three
fiscal years immediately preceding the year in which the loan is
executed.
(c) As used in this section, "short-term loans of state funds"
means any loan from any fund or account in the State Treasury or from
the reserve for contingencies or emergencies administered by the
Department of Finance to any other fund in the State Treasury or to
any state or local agency for a period of less than one year.
(d) As used in this section, "long-term loans of state funds"
means any loan from any fund or account in the State Treasury or from
the reserve for contingencies or emergencies administered by the
Department of Finance to any other fund in the State Treasury or to
any state or local agency for a period of one year or longer, except
loans made pursuant to Section 71.4 of the Harbors and Navigation
Code and Section 21602 of the Public Utilities Code.
(e) Notwithstanding subdivision (a), the Director of Finance shall
have the authority to waive interest charges on short-term loans of
state funds to other state agencies or funds to cover temporary
shortages of funds where anticipated reimbursements have not been
forthcoming, or where the agency cannot recover interest charges in
the reimbursement, or where the loan is to a department or agency
which derives its support from the same fund from which the loan is
to be made. This authority shall not apply to loans from the Pooled
Money Investment Account.
(f) The Director of Finance may extend the loan repayment date of
loans of state funds as defined in subdivisions (c) and (d). At the
time any such loan repayment date is extended, the loan shall be
considered to be a new loan for the purposes of establishing the
annual rate of interest under the provisions of subdivisions (a) and
(b) for the period the loan is extended. The interest rate
established on the actual date of withdrawal or transfer of the loan
funds shall not be altered by such an extension.

16315. Any appropriation made for major construction, improvements,
equipment, designs, working plans, and specifications may be
expended to reimburse the Division of Architecture Revolving Fund,
the University of California, or the Trustees of the California State
University, for expenditures incurred prior to the availability of
the appropriation, if the State Public Works Board and the Department
of Finance have approved preliminary plans for the project to be
financed from the appropriation in accordance with any applicable
provision of law. Any money in the Division of Architecture Revolving
Fund may be expended or encumbered for expenditure prior to the
availability of the appropriation for any project as to which
reimbursement of the fund therefor is authorized by this section. Any
money available to the Trustees of the California State University
for expenditure for projects of major construction, improvements,
equipment, designs, working plans, and specifications may be expended
or encumbered for expenditure by the trustees for any state
university project prior to the availability of the appropriation for
the particular project, if reimbursement of the trustees or the
state university from such appropriation is authorized pursuant to
this section.
Nothing herein contained shall be construed to limit or control
the Regents of the University of California or the Trustees of the
California State University in the expenditure of funds appropriated
for major construction, improvements, and equipment for the use,
development, or enlargement of the University of California or the
California State University, respectively.

16316. Any appropriation made for acquisition of real property may
be expended to pay for expenses incurred for appraisals, title
searches, surveys and other investigations prior to the availability
of such appropriation, provided that the Director of Finance has
approved the incurring of such preliminary expenses.

16317. (a) The Controller shall maintain a system of accounts for
each of the funds redesignated by the act enacting this section as
accounts within the Transportation Tax Fund or the State
Transportation Fund which will reflect the equity of each account,
including investments and earnings on investments.
(b) No procedures shall be established to implement the act
enacting this section which would impair the authority to establish
accounting systems, or impair the cash management authority,
possessed by the California Highway Commission and the Department of
Public Works prior to the enactment of this section.

16317.5. No state funds or employee activities financed by the
state shall, directly or indirectly, be used for accounting of, or
authorizing the disbursement of, any funds of any state agency,
except through accounts approved by the Department of Finance. Such
funds shall be reported in official financial statements by the
Department of Finance. The accounting of nonstate funds shall be
exempt from this section if such accounting is a part of an
investigation in which the state is involved.

16320. (a) Unless otherwise prohibited by law, moneys in the State
Treasury may be loaned from one state fund or account to any other
state fund or account to address the 2001-02, 2002-03, and 2003-04
fiscal year budgetary shortfalls, subject to all of the following
conditions:
(1) The loan is authorized in the 2002 Budget Act, legislation
enacted in a 2003-04 Extraordinary Session, or the 2003 Budget Act.
(2) The terms and conditions of the loan, including an interest
rate, are set forth in the loan authorization.
(3) The loan is considered part of the balance of the fund or
account that received the funds for the purpose of accounting and
budgeting, including any determination made pursuant to Section
13307.
(4) The loan is not deducted from the balance of the fund or
account from which the loan is made for purposes of calculating a fee
or assessment.
(5) A fee or assessment is not increased as a result of a loan.
(6) Moneys loaned under this section are not considered a transfer
of resources for purposes of determining the legality of the use of
those moneys by the fund or account from which the loan is made or
the fund or account that received the loan.
(b) (1) The Director of Finance shall order the repayment of all
or a portion of any loan made pursuant to subdivision (a) if he or
she determines that either of the following circumstances exists:
(A) The fund or account from which the loan was made has a need
for the moneys.
(B) There is no longer a need for the moneys in the fund or
account that received the loan.
(2) The Director of Finance shall notify, in writing, the
Chairperson of the Joint Legislative Budget Committee within 30 days
of ordering the repayment of any of these loans.
(c) On August 1 of each year, the Director of Finance shall report
in writing to the Chairperson of the Joint Legislative Budget
Committee the balances of these loans as of the preceding June 30.
(d) On February 1 of each year, the Director of Finance shall
provide a report on General Fund obligations to the Chairperson of
the Joint Legislative Budget Committee and to the chairpersons of the
fiscal committees of the Assembly and the Senate. The report shall
include both of the following:
(1) An update of the annual August 1 report to the Chairperson of
the Joint Legislative Budget Committee on the balances of outstanding
loans, as reflected in the preceding Governor's Budget.
(2) A summary and list of loans to the General Fund or obligations
for future payment of deferred or suspended expenditures or
transfers to any special fund or account and the dates that the loans
or obligations are due.

16324. (a) Notwithstanding any other law, in order to effectively
manage state cash resources, the General Fund payments to be made in
March 2010 for the programs or departments listed in subdivision (b)
shall be paid no sooner than April 15, 2010, but not later than May
1, 2010, which shall be carried out by the Controller, subject to
subdivision (c). Nothing in this section shall be construed to
authorize the deferral of state payroll, debt service, or rental
payments that support lease-revenue bonds.
(b) The departments and programs subject to subdivision (a) are as
follows:
(1) California Community Colleges (excluding twelve million
dollars ($12,000,000)).
(2) Trial court operations (nonpayroll).
(3) California State University.
(4) University of California.
(c) Prior to each of the payment deferrals identified in
subdivision (b), the Controller, Treasurer, and Director of Finance
shall jointly review and compare the actual General Fund receipts and
disbursements with the receipt and disbursement projections
contained in the cashflow statements associated with the proposed
2010-11 Governor's Budget. If the Controller, Treasurer, and Director
of Finance determine sufficient cash is available to make all
scheduled payments through April 15, 2010, including the payments
otherwise subject to deferral identified in subdivision (b), and
maintain a prudent cash reserve, the Controller shall make the
payments as originally scheduled. The Department of Finance shall
notify the Joint Legislative Budget Committee within 10 days of
making this determination.
(d) In the event payments are deferred pursuant to subdivision
(a), beginning April 1, 2010, the Controller, Treasurer, and Director
of Finance shall review daily the actual cash receipts and
disbursements in comparison to the receipt and disbursement
projections associated with the proposed 2010-11 Governor's Budget.
If the Controller, Treasurer, and Director of Finance determine
sufficient cash is available to make payments through April 15, 2010,
including the payments otherwise subject to deferral identified in
subdivision (b), and maintain a prudent cash reserve, the Controller
shall make the deferred payments, in whole or in part, as soon as
feasible, in the order listed in subdivision (b). The Department of
Finance shall notify the Joint Legislative Budget Committee within 10
days of making this determination and identify the date upon which
the payments were made.
(e) Notwithstanding paragraph (1) of subdivision (b), and subject
to the approval of the Director of Finance, the Controller shall
issue warrants pursuant to Sections 84320, 84321, and 84321.5 of the
Education Code that include the full amount of the apportionment
payments for the month of March 2010 for a community college for
which the Chancellor of the California Community Colleges determines,
in consultation with the Director of Finance, on or before March 15,
2010, that the deferral of warrants pursuant to this section will
present an imminent threat to the fiscal integrity and security of
the community college.

16325. (a) An effective cash management plan is needed for the
2010-11 fiscal year to address General Fund cash shortages that
otherwise may occur during the fiscal year. The goals of the cash
management plan described in this section are to accomplish the
following:
(1) Increase the state's ability to address cash shortages in a
quick and responsible manner.
(2) Address rating agencies' and bond markets' concerns regarding
the state's ability to react effectively to cashflow pressures while
providing a higher level of certainty to bondholders.
(3) Preserve external borrowing capacity and affordability for the
state's infrastructure programs.
(4) Provide a higher level of predictability to affected programs
and entities where deferrals or delays are required.
(b) Nothing in this section or in Sections 16325.5 and 16326 shall
be construed to affect in any way the timing or amount of payments
of state payroll or to affect in any way any judicial proceeding
related to the timing or amount of state employee compensation.
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to authorize the delay of debt service payments, rental
payments that support lease-revenue bonds, reimbursements to local
governments for certain reductions in ad valorem property taxes, as
required by Section 25.5 of Article XIII of the California
Constitution, or required payments for borrowings secured by these
repayment obligations, payments required under a Funds Transfer
Cooperative Agreement that are pledged to pay debt service on state
payment acceleration notes that were issued to finance toll bridge
seismic retrofit and replacement projects, payments appropriated in
any year to pay a court judgment pursuant to the settlement agreement
in Paterno v. State (2003) 113 Cal.App.4th 998, or payments to small
vendors as defined in the California Prompt Payment Act (Chapter 4.5
(commencing with Section 927) of Part 3 of Division 3.6 of Title 1).
Nothing in this section, Section 16325.5, or Section 16326 shall be
construed to affect the applicability of interest, late payment
penalty, and similar payment requirements under the California Prompt
Payment Act or Section 926.19 when payments to persons or entities
specified in those laws are delayed.
(c) Deferrals authorized in the cash management plan described in
this section and in Sections 16325.5 and 16326 are in addition to any
payment delays, payment deferrals, or payment schedules specified in
other laws. Deferrals authorized in the cash management plan
described in this section and in Sections 16325.5 and 16326 do not
replace, remove, or alter any previously implemented payment delays
or payment deferrals.
(d) Activities by the Controller, Treasurer, and Director of
Finance to implement and carry out the cash management plan described
in this section and Sections 16325.5 and 16326 are hereby exempted
from the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3).
(e) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.

16325.5. (a) Notwithstanding any other law, and to the extent not
prohibited by federal law or the California Constitution, in order to
effectively manage state cash resources, the General Fund payments
projected to be made for the programs or departments listed in
subdivision (b) shall be deferred, effective beginning in the months
of July 2010, October 2010, and March 2011, in full for no more than
60, 90, and 60 days, respectively, unless otherwise specified in
Section 16326, and Section 2103.1 of the Streets and Highways Code.
Nothing in this section shall be construed to authorize the deferral
of state payroll, debt service, or rental payments that support
lease-revenue bonds.
(b) The departments and programs subject to subdivision (a) are as
follows:
(1) Kindergarten to grade 12, inclusive, apportionments.
(2) Supplementary Security Income/State Supplementary Payments
made by the State Department of Social Services.
(3) Local government social services and transportation payments.
(4) Trial court operations (nonpayroll).
(c) Prior to implementing each of the payment deferrals identified
in subdivision (b) and other provisions of the act adding this
section, the Controller, Treasurer, and Director of Finance shall
jointly review and compare the actual General Fund receipts and
disbursements with the receipts and disbursements contained in the
most current published cashflow projections. If the Controller,
Treasurer, and Director of Finance determine sufficient cash is
available to make all scheduled payments through the 60- or 90-day
period or other period specified in law, including the payments
otherwise subject to deferral identified in subdivision (b), and
maintain a prudent cash reserve, the Controller shall make the
deferred payment as originally scheduled or within the time provided
for by law. In making the determination that cash is sufficient to
make the payments, the Controller, Treasurer, and Director of Finance
shall also consider costs for state government, the scope of any
identified cash shortage, timing, achievability, legislative
direction, and the impact and hardship imposed on potentially
affected programs, entities, and related public services. The
Department of Finance shall notify the Joint Legislative Budget
Committee of this action within 10 days of making this determination.
(d) In the event payments are deferred pursuant to subdivision (a)
or other provisions of the act adding this section, beginning July
1, 2010, the Controller, Treasurer, and Director of Finance shall
review on a monthly basis, or as necessary, the actual General Fund
cash receipts and disbursements in comparison to the receipt and
disbursement projections associated with the Governor's most current
cashflow statements. If the Controller, Treasurer, and Director of
Finance determine sufficient cash is available to make payments
otherwise deferred for the 60- or 90-day period or other period
specified in law, including the payments otherwise subject to
deferral identified in subdivision (b) or other provisions of the act
adding this section, and maintain a prudent cash reserve, the
Controller shall make the deferred payments, in whole or in part, as
soon as feasible unless otherwise provided in Section 16326, or
Section 2103.1 of the Streets and Highways Code. In making the
determination that cash is sufficient to make the payments, in whole
or in part, the Controller, Treasurer, and Director of Finance shall
also consider costs for state government, the scope of any identified
cash shortage, timing, achievability, legislative direction, and the
impact and hardship imposed on potentially affected programs,
entities, and related public services. The Department of Finance
shall notify the Joint Legislative Budget Committee within 10 days of
this determination and identify the date upon which the payments
were made.
(e) Upon concurrence of the Controller, Treasurer, and Director of
Finance, deferrals authorized pursuant to subdivision (a) or other
provisions of the act adding this section may be moved forward to the
prior month or delayed to the subsequent month. Any changes may be
authorized no sooner than 30 days after notification in writing by
the Department of Finance to the Joint Legislative Budget Committee,
or not sooner than whatever lesser time the Chairperson of the Joint
Legislative Budget Committee, or his or her designee, may determine.
(f) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.

16326. (a) Notwithstanding any other law, except as otherwise
specified in Sections 16325 and 16325.5, cash deferrals specified in
Sections 16325 and 16325.5, and Section 2103.1 of the Streets and
Highways Code, as amended by the act amending this section in the
2009-10 Regular Session, shall be limited, as follows:
(1) Payments to school districts, county offices of education, and
charter schools shall be deferred as specified in Section 16325.5
with the total amount of the deferrals under this action limited to
two billion five hundred million dollars ($2,500,000,000) for each
deferral, and a maximum of three deferrals during the fiscal year.
The total outstanding amount of these deferrals, as described in
Section 16325.5, shall not exceed two billion five hundred million
dollars ($2,500,000,000) at any given time. The Controller,
Treasurer, and the Director of Finance shall determine and jointly
provide a written declaration to the Legislature and to the State
Department of Education, and the State Department of Education shall
inform school districts, county offices of education, and charter
schools of the amounts and timing of payment deferrals for the
2010-11 fiscal year. This declaration shall be provided no later than
March 31, 2010. It is the intent of the Legislature that the advance
principal apportionment payment due in July be deferred first as a
part of the July 2010 deferral as specified in Section 16325.5.
(A) Subject to the approval of the Director of Finance, in order
for a county office of education to receive scheduled apportionments
from the Controller if payments are deferred, as specified in Section
16325.5, the Superintendent of Public Instruction shall certify that
the deferral of warrants will result in the county office of
education being unable to meet its expenditure obligations for the
time period during which warrants are deferred, and shall notify the
Director of Finance of this fact on or before June 1, 2010. Subject
to the approval of the Director of Finance, a county office of
education that did not receive apportionments for July 2010 and
October 2010, as specified in Section 16325.5, may seek a hardship
waiver to receive scheduled apportionments from the Controller if
payments are deferred in March 2011. To apply for a hardship waiver,
the Superintendent of Public Instruction shall certify that the
deferral of March 2011 warrants will result in the county office of
education being unable to meet its expenditure obligations for the
time period during which warrants are deferred, and shall notify the
Director of Finance of this fact on or before January 5, 2011. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(B) Subject to the approval of the Director of Finance, in order
for a charter school to receive scheduled apportionments from the
Controller if payments are deferred, as specified in Section 16325.5,
the chartering authority, in consultation with the county
superintendent of schools, shall certify that the deferral of
warrants will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance of this fact on or before June 1, 2010.
Subject to the approval of the Director of Finance, a charter school
that did not receive apportionments for July 2010 and October 2010,
as specified in Section 16325.5, may seek a hardship waiver to
receive scheduled apportionments from the Controller if payments are
deferred in March 2011. To apply for a hardship waiver, the
chartering authority, in consultation with the county superintendent
of schools, shall certify that the deferral of March 2011 warrants
will result in the charter school being unable to meet its
expenditure obligations for the time period during which warrants are
deferred, and shall notify the Superintendent of Public Instruction
and the Director of Finance on or before January 5, 2011. The
criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(C) Subject to the approval of the Director of Finance, in order
for a school district to receive scheduled apportionments from the
Controller if payments are deferred, as specified in Section 16325.5,
the county superintendent of schools shall certify to the
Superintendent of Public Instruction and to the Director of Finance
on or before June 1, 2010, that the deferral of warrants will result
in the school district being unable to meet its expenditure
obligations for the time period during which warrants are deferred.
Subject to the approval of the Director of Finance, a school district
that did not receive apportionments for July 2010 and October 2010,
as specified in Section 16325.5, may seek a hardship waiver to
receive scheduled apportionments from the Controller if payments are
deferred in March 2011. To apply for a hardship waiver, the county
superintendent of schools shall certify to the Superintendent of
Public Instruction and to the Director of Finance on or before
January 5, 2011, that the deferral of March 2011 warrants will result
in the school district being unable to meet its expenditure
obligations for the time period during which warrants are deferred.
The criteria, as applicable, set forth in statute and regulations to
qualify a school district for an emergency apportionment shall be
used to make the certifications specified in this subparagraph.
(D) Notwithstanding Section 16325.5, payment of the March 2011
deferral to county offices of education, school districts, and
charter schools shall be made no later than April 29, 2011.
(2) Of the amount appropriated from the General Fund to the
University of California for the 2010-11 fiscal year, payments made
by the state to the University of California shall not exceed
one-twelfth of the annual appropriation for each month from July 2010
through April 2011. Any remaining appropriation balance may be paid
to the University of California thereafter with no limitations.
(3) Notwithstanding Sections 84320, 84321, and 84321.5 of the
Education Code and any other law that governs the regulations adopted
by the Chancellor of the California Community Colleges to disburse
funds, two hundred million dollars ($200,000,000) and one hundred
million dollars ($100,000,000) from the payment of apportionments to
districts pursuant to Sections 84320, 84321, and 84321.5 of the
Education Code for July 2010 and March 2011, respectively, shall be
deferred to October 2010 and May 2011, respectively. Notwithstanding
this paragraph and subject to the approval of the Director of
Finance, the Controller shall issue warrants pursuant to Sections
84320, 84321, and 84321.5 of the Education Code that include the full
amount of the apportionment payments for the months of July 2010 or
March 2011, or both, for a community college for which the Chancellor
of the California Community Colleges determines, in consultation
with the Director of Finance, on or before June 1, 2010, that the
deferral of warrants pursuant to this paragraph will present an
imminent threat to the fiscal integrity and security of the community
college.
(4) Of the amount appropriated from the General Fund to the
California State University for the 2010-11 fiscal year, payments
made by the state to the California State University shall not exceed
one-twelfth of the annual appropriation for each month from July
2010 through April 2011. Any remaining appropriation balance may be
paid to the California State University thereafter with no
limitations.
(5) The 2010-11 cash management plan described in Sections 16325
and 16325.5 may include deferrals in state payments for specific
programs that are disbursed to cities, counties, and other public
entities not addressed elsewhere in this section. Deferral of
payments by the state to cities, counties, and other public entities
not addressed elsewhere in this section shall be as follows:
(A) Payments shall be deferred as specified in Section 16325.5 per
the specific program.
(B) Payments shall be limited to one billion dollars
($1,000,000,000) for all programs that affect cities, counties, and
other public entities not addressed elsewhere in this section at any
given point in time.
(C) A maximum of three deferrals per specific program may be made
during the fiscal year.
(D) The state shall not defer any payments to a county with a
population less than 50,000, or a city within a county with a
population less than 50,000.
(E) Payments to local governments may be deferred for social
services programs, transportation programs, and Mental Health
Services Act (Proposition 63 of 2004) programs.
(6) In addition to implementing the payment schedule described in
paragraph (4), the Director of Finance may at any time during the
2010-11 fiscal year defer payment of General Fund moneys, in a
cumulative amount not to exceed two hundred fifty million dollars
($250,000,000), appropriated to the California State University.
Payment of the amount deferred shall be made in the final week of
April 2011.
(b) Limits on payment deferrals specified in subparagraphs (A) and
(C) of paragraph (5) of subdivision (a) shall not apply to payments
authorized in paragraph (3) of subdivision (a) of Section 2103.1 of
the Streets and Highways Code to cities and counties. Limits on
payment deferrals specified in subparagraphs (A) and (C) of paragraph
(5) of subdivision (a) shall not apply to payments to the Mental
Health Services Act (Proposition 63) programs.
(c) Upon the Controller's receipt of a letter from the executive
officer of the Administrative Office of the Courts, or any other
executive officer representing cities or counties, the state may
defer payments to the entity or entities that the executive officer
represents as specified in the letter even if the specified amounts
exceed the deferrals authorized in this section or elsewhere in law.
(d) This section shall become inoperative on September 1, 2011,
and, as of January 1, 2012, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2012, deletes
or extends the dates on which it becomes inoperative and is
repealed.