16470-16476

GOVERNMENT CODE
SECTION 16470-16476




16470.  The Pooled Money Investment Board shall, at such times as it
deems necessary, determine whether any portion of the money then on
deposit in the State Treasury to the credit of any fund, exclusive of
the General Fund, is not necessary for immediate use; and if so, it
shall determine the amount thereof in each such fund, which amount
shall thereupon be designated as "surplus money." This article does
not apply to any fund included within subdivisions (b), (c), (d),
(e), and (f) of Section 16475, or the State Highway Fund, the Public
Employees' Retirement Fund, Legislators' Retirement Fund and State
Teachers' Retirement Fund, or the Unemployment Compensation
Disability Fund.
   Any special fund excepted from this article may elect, by filing
with the Pooled Money Investment Board a notice of election, to come
under the provisions of the Surplus Money Investment Fund; which
election shall be revocable by such special fund effective as of
December 31st or June 30th of any year upon 30 or more days' notice
prior to either of said dates.



16471.  Upon the determination and designation of surplus money in
any special fund, the Controller shall transfer from that fund to the
Surplus Money Investment Fund in the State Treasury, which fund is
continued in existence, the amount of surplus money so determined and
designated. Nothing herein shall authorize the transfer of money
from any special fund to the Surplus Money Investment Fund, if the
transfer will interfere with the carrying out of the purpose for
which the special fund was created.



16472.  All moneys transferred to or deposited in the Surplus Money
Investment Fund are hereby appropriated without regard to fiscal
years to carry out the purposes of this article.



16473.  The Pooled Money Investment Board shall, at such times as it
deems necessary, determine whether any portion of the money
theretofore transferred to and remaining in the Surplus Money
Investment Fund from any special fund is needed by such special fund
to carry out the purposes for which it was created; and if so, it
shall determine the amount thereof. Thereupon, it shall reduce the
amount of surplus money theretofore designated with respect to such
special fund by the amount determined to be needed by such fund. Upon
such reduction of the surplus money in any special fund, the State
Treasurer shall, on order of the State Controller, transfer from the
Surplus Money Investment Fund to such special fund an amount of money
equal to that by which the surplus money of such fund was reduced.




16473.5.  For the purposes of this article, a written determination
signed by a majority of the members of the Pooled Money Investment
Board shall be deemed to be the determination of the board.



16474.  The money in the Surplus Money Investment Fund, shall be
invested and reinvested by the State Treasurer as a part of the
Pooled Money Investment Account.



16475.  At the conclusion of each calendar quarter, all interest
earned and other increment derived from investments made pursuant to
this article shall, on order of the Controller, be deposited in the
Surplus Money Investment Fund. The Controller, after deducting an
amount equal to the reasonable costs incurred by the Treasurer, the
Controller, and the Department of Finance in carrying out this
article, shall apportion, quarterly, to the following funds in the
Treasury, interest earned or increment derived from the investments
authorized by this article for the three calendar months ending with
those dates:
   (a) The General Fund.
   (b) Each fund into which are deposited or which contains moneys
collected from any tax now or hereafter imposed by the state upon the
manufacture, sale, distribution, or use of motor vehicle fuel, for
use in motor vehicles upon the public streets and highways.
   (c) Each fund into which are deposited or which contains moneys
collected from motor vehicle and other vehicle registration license
fees or from any other tax or license fee now or hereafter imposed by
the state upon vehicles, motor vehicles or the operation thereof,
except those taxes and license fees that, by the provisions of
Section 7 of Article XIX of the California Constitution, are exempted
from the provisions of Section 2 of Article XIX.
   (d) Each fund into which are deposited or that contains moneys
collected under any law of this state relating to the protection,
conservation, propagation, or preservation of fish, game, mollusks,
or crustaceans, and fines imposed by any court for the violation of
any of those laws.
   (e) Each fund into which are deposited or that contains moneys
available for construction, repair, replacement, maintenance or
operation of public works of the state, including, but not limited
to, the facilities of the State Water Resources Development System,
as defined in Section 12931 of the Water Code, toll facilities
financed, built, or acquired pursuant to the California Toll Bridge
Authority Act (Chapter 1 (commencing with Section 30000) of Division
17 of the Streets and Highways Code), or moneys available for the
payment of principal or interest on bonds issued to provide for the
construction of those facilities.
   (f) Every other fund in respect to which the Director of Finance
on the advice of the Attorney General determines that the operation
of the California Constitution or the United States Constitution
prohibits the expenditure of interest received under this article and
allocated on the basis of amounts in that fund for General Fund
purposes.
   (g) Each fund not included within subdivisions (a) to (f),
inclusive.
   The apportionments shall be made by the Controller in the
following manner:
   (1) All money not apportioned to the funds referred to in
subdivisions (b), (c), (d), (e), (f), and (g) shall be apportioned to
the General Fund.
   (2) There shall be apportioned to each of the funds referred to in
subdivisions (b), (c), (d), (e), (f), and (g), an amount directly
proportionate to the respective amounts transferred from those funds
to the Surplus Money Investment Fund and the length of time the
amounts remained therein.
   (3) Interest accrued or paid to the Pooled Money Investment
Account from the proceeds of tax-exempt obligations on loans made
pursuant to Section 16312 or 16313, to the extent thereof, shall be
deemed apportioned to the State Highway Account or any other accounts
that may be designated by the Controller pursuant to Section 16654,
but only to the extent of its proportionate earnings as determined
under paragraph (2). This paragraph shall neither increase nor
decrease the amount of earnings apportioned to any fund or account in
accordance with this section. These moneys shall be deemed expended,
or applied to reimburse expenditures previously paid, first
following the allocation of these interest earnings of the Surplus
Money Investment Fund to the State Highway Account or any other
accounts that may be designated by the Controller pursuant to Section
16654. It is the intent of the Legislature that this paragraph shall
authorize the Treasurer and the Controller to monitor the
expenditure of the proceeds of tax-exempt obligations in order to
comply with federal tax laws and shall neither increase nor decrease
the amount of bonds, notes, or other obligations to be issued by the
state or any subdivision thereof, nor shall this paragraph be
interpreted to indicate that the allocation is contrary to any bond
act.


16475.1.  Notwithstanding any other provisions of law, the interest
earned by governmental cost funds, as determined jointly by the
Controller and Director of Finance, for the period January 1, 1982,
through June 30, 1982, inclusive, shall be transferred to the
unappropriated surplus of the General Fund. This section shall not
apply to the Department of Food and Agriculture Fund or to the Acala
Cotton Fund. The section shall also not apply to any governmental
cost funds if the use of interest from those funds for General Fund
purposes is prohibited by the California Constitution or the United
States Constitution.


16475.5.  Notwithstanding Section 16475, at the conclusion of each
calendar quarter, all interest earned and other increment derived
from the investment pursuant to this article of money of the Fish and
Game Preservation Fund, less the expenses incurred by the Treasurer,
the Controller, and the Department of Finance under this article in
connection with the investment of this money, shall be transferred to
the Fish and Game Preservation Fund.



16476.  If any provision of this article, or the application thereof
to the money in any fund referred to herein, is held invalid, the
remaining provisions of this article shall not be affected thereby.