2010 California Code
Government Code
Article 4. Purchase By State Of County Warrants For Aid

29870.  The purpose of this article is to maintain in effect in
every county the state plans for aid to the needy aged, aid to needy
children, and aid to the needy blind; to protect such plans from
interruption of operation in any county because of the temporary
financial exigencies of the county; and to preserve the eligibility
of the State to receive assistance from the United States for such
aid.



29871.  "Registered," as used in this article, means endorsed and
signed by the county treasurer.



29872.  Any county which is liable under the Welfare and
Institutions Code for the payment of aid to the needy aged, aid to
the needy blind, or aid to needy children may apply to the Department
of Finance for purchase by the State of registered warrants of the
county in such amount as will enable the county to make payment of
its liability, if all of the following conditions exist:
   (a) The county is without sufficient funds in its treasury to make
the payment.
   (b) The county is unable to provide such funds, by temporary
borrowing or otherwise.
   (c) Registered warrants of the county are not readily salable or
exchangeable in the community by holders for their face value in
cash.
   (d) The county has made provision in its current budget for the
expenditures for the aids for which it is liable under the Welfare
and Institutions Code and has levied the necessary taxes.




29873.  The county shall submit its application to the State
Department of Social Services. The application shall be in such form
and show such facts as are prescribed by the State Department of
Social Services and the Department of Finance. If the State
Department of Social Services approves the application, it shall
transmit the application and a statement of its approval to the
Department of Finance.



29874.  If the Department of Finance determines that the purchase
will tend to effect the purpose of this article and that the county
is eligible to make application, it may, with the approval of the
Treasurer, purchase, in the name of the state, registered warrants of
the county in the amount specified in the application or in any
lesser amount agreed to by the county and approved by the State
Department of Social Services.



29875.  The purchase shall be effected as follows:
   (a) In lieu of the issue of registered warrants to the persons to
whom the county is liable for the payment of aid, a warrant or
warrants in favor of the State in the amount agreed upon between the
county and the Department of Finance shall be issued by the county
auditor and registered by the county treasurer.
   (b) Upon the claim of the Department of Finance, the State
Controller shall draw his warrant in favor of the county for the face
value of the county registered warrants to be purchased under the
agreement.
   (c) The county warrants shall be delivered to the Department of
Finance which shall thereupon transmit the Controller's warrant to
the county treasurer. The county warrants shall be deposited with the
State Treasurer by the Department of Finance.



29876.  The funds received by a county from the State in payment for
warrants of the county shall be kept in a separate fund and used
only for the payment of the aid for which the county is liable under
the Welfare and Institutions Code, relating to the needy aged, aid to
the needy blind, and aid to needy children.


29877.  Any funds received by the Department of Finance in payment
of county registered warrants purchased pursuant to this article
shall be immediately deposited in the State Treasury. The proceeds
received as the principal amount of the warrants shall be credited to
the appropriations from which the respective warrants were
purchased.



29878.  All registered warrants issued to the State pursuant to this
article are subject in every respect to Article 2.