Section 16330 Of Chapter 1. General From California Government Code >> Division 4. >> Title 2. >> Part 2. >> Chapter 1.
16330
. (a) (1) The State Agency Investment Fund is hereby created
within the State Treasury, for the receipt of deposits from state
agencies with moneys not currently required by law to be deposited in
the Pooled Money Investment Account.
(2) For purposes of this section, a "state agency" includes any
state office, officer, department, division, bureau, board,
commission, organization, or agency, including, but not limited to,
the University of California, the California State University, the
California Community Colleges, and the Judicial Council.
(b) Each agency that deposits moneys in the fund shall deposit no
less than a total of five hundred million dollars ($500,000,000). The
total amount of moneys that may be deposited in the fund from all
eligible sources shall not exceed, at any point in time, a total of
ten billion dollars ($10,000,000,000), or a lesser amount as
determined by the Director of Finance, in consultation with the
Treasurer.
(c) The terms and conditions of deposits made into the fund shall
be set by the Director of Finance, in consultation with the
Treasurer. Those terms shall include, but not be limited to, the size
of deposit from a particular state agency, the length of time those
moneys shall be held in deposit in the fund, the availability of
funds for withdrawal by the state agency depositing the funds, and
the annual rate of interest paid on deposits, as described in
subdivision (e).
(d) Moneys held in the fund shall be invested by the Treasurer in
investments authorized by Sections 16430 and 16480 through the Pooled
Money Investment Account, and notwithstanding any other law, shall
be deemed borrowable by the General Fund for cashflow purposes
pursuant to Sections 16310 and 16381. Repayment of any of those
borrowings shall be considered a priority payment, equivalent to any
other loan repayment made from the General Fund to another state
fund.
(e) Notwithstanding any other law, the rate of interest to be paid
to the depositors shall be the base apportionment rate based on
their pro rata share of the earnings of the Pooled Money Investment
Account on a quarterly basis at the end of each quarter plus an
enhanced amount. The pro rata share shall be determined by a dollar
day participation. The base apportionment rate applied to the dollar
day participation in the fund shall be the quarter-to-date average
yield of the Pooled Money Investment Account for the current quarter.
The enhancement amount paid to depositors in the fund shall be
determined by the Director of Finance, in consultation with the
Treasurer, and shall be added to the base rate earned by the Pooled
Money Investment Account at the time the apportionment is made. The
total interest cost described in this subdivision shall not exceed
that provided for in paragraph (1) of subdivision (d) of Section
16731.
(f) Notwithstanding Section 13340, moneys in the fund are hereby
continuously appropriated to the Controller for payment of interest
expenditures to depositors calculated in accordance with subdivision
(e), and return of deposits to depositors according to terms and
conditions set by the Director of Finance, in consultation with the
Treasurer.
(g) The Department of Finance shall determine the budget items to
be used for the recording and reporting of interest expenditures
pursuant to this section.
(h) Deposits in the fund shall be tracked separately for each
participant in the state's accounting system, and shall be deemed to
be assets of each participant. These assets shall be reflected as
such on the participants' financial statements.
(i) Actions by the Director of Finance, in consultation with the
Treasurer, in implementing and administering the investment program
provided for in this section shall be exempt from the provisions of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3).