SECTIONS 16425-16428 - California Statutes

GOVERNMENT CODE

SECTION 16425-16428

16425. There is in the State Treasury the Litigation Deposits Fund,
hereafter referred to as "the fund," which is hereby appropriated
for the purposes of this article.

16426. The fund consists of all money received as litigation
deposits where the State of California is a party to the litigation
and no other state statutes specifically provide for both of the
following:
(1) Handling and investing such money.
(2) Crediting any interest accrued thereto to such deposits.

16427. (a) For purposes of this article, "department" means the
Department of Justice.
(b) The fund is under the control of the department. The
department shall maintain accounting records pertaining to the fund,
including subsidiary records of individual litigation deposits and
the disbursements from the fund.
(c) The department shall file a claim with the Controller to pay
out money in the fund to whomever and at the time the department
directs. However, notwithstanding Section 13340, if a sum of money in
the fund was deposited pursuant to order or direction of the court,
that sum shall be paid to whomever and at the time the court directs.
The department may expend revenue transferred from the fund to the
Legal Services Revolving Fund only upon approval by the Department of
Finance. The department shall submit a written application to the
Department of Finance to request approval for the expenditure. The
request shall be deemed approved if the Department of Finance neither
approves nor disapproves the request within 30 days of receipt of
the application.
(d) Any residue remaining in a deposit account after satisfaction
of all court-directed claims, or payment of departmental expenditures
for that account shall be transferred no later than July 1 of each
fiscal year to the General Fund.
(e) The department shall prepare and submit to the chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
fiscal committees of the Senate and the Assembly, and the Director of
Finance, quarterly reports concerning the activity of the fund that
detail the number of deposits received, the receipt of interest
income, disbursements to claimants, and what amount, if any, was used
for the litigation costs of the department.

16428. Money in the fund may be invested and reinvested in any
securities described in Section 16430 or deposited in banks as
provided in Chapter 4 (commencing with Section 16500) of this part or
deposited in savings and loan associations as provided in Chapter
4.5 (commencing with Section 16600) of this part. The department
shall determine the amount of money available for investment or
deposit and shall so arrange the investment or deposit program that
funds will be available for the immediate payment of any court order
or decree. The Treasurer shall invest or make deposits in accordance
with these determinations.
All revenues earned from investment or deposit of fund moneys
shall be deposited in the fund. After first deducting therefrom the
amount payable to the Treasurer for investment services rendered and
the amount payable to the department for administrative services
rendered, the department shall apportion as of June 30 and December
31 of each year the remainder of such revenues earned and deposited
in the fund during the six calendar months ending with such dates.
There shall be apportioned and credited to each litigation deposit in
the fund during such six-month period, an amount directly
proportionate to the total deposits in the fund and the length of
time such deposits remained therein. The amounts so apportioned shall
be paid to the party receiving the deposit. The cost of
administrative services rendered shall be determined by the
department in a manner approved by the Department of Finance. The
amounts payable to the department and to the Treasurer shall be
transferred to the General Fund and accounted as reimbursements to
their respective appropriations.