Receipt of money - subject to appropriation - exception for custodial money - legal services cash fund - creation - definition.

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(1) Any money received by the attorney general belonging to the state or received by the attorney general in his or her official capacity must be paid as soon as practicable to the department of the treasury and, generally, the attorney general has such legal duties in regard to the activities of the state and its various departments, boards, commissions, bureaus, and agencies as are imposed by law.

(2) (a) Except as otherwise provided in this section, any money received by the attorney general and paid to the department of the treasury pursuant to subsection (1) of this section is subject to annual appropriation by the general assembly.

(b) The department may solicit, accept, and expend gifts, grants, and donations from public and private sources for the purpose of this article 31; except that the department may not accept a gift, grant, or donation that is subject to conditions inconsistent with this article 31 or any other law of the state. The department shall transmit all money it collects pursuant to this subsection (2)(b) to the state treasurer to be credited to the particular fund the department deems most appropriate. Gifts, grants, or donations that are credited to a fund under this subsection (2)(b) and that qualify as state money are continuously appropriated to the department for the purposes of this article 31.

  1. Any money received by the attorney general as an award of attorney fees or coststhat is not custodial money must be placed in a separate attorney fees and costs account and is subject to annual appropriation by the general assembly for legal services provided by the department.

  2. There is hereby created in the state treasury the legal services cash fund, also referredto in this subsection (4) as the "fund". The department shall transmit all money received from state agencies as payment for legal services to the state treasurer, who shall credit the same to the fund. The money in the fund and all interest earned on such money is subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with providing legal services to state governmental entities and for any of the department's litigation expenses. Any unexpended money in the fund at the end of the fiscal year remains in the fund and shall not be credited or transferred to any other fund.

  3. If all or a portion of any money received by the attorney general and paid to thedepartment of the treasury pursuant to subsection (2) of this section is custodial money, the attorney general shall direct the state treasurer in writing to place such custodial money in a separate account. Any custodial money placed in a separate account pursuant to this subsection (5) is not subject to annual appropriation by the general assembly. A copy of the written direction to the state treasurer must be delivered to the joint budget committee. Such written direction must set forth the basis for the attorney general's determination that the money is custodial money and must specify the manner in which the money will be expended. Such written direction must be given to the state treasurer within thirty days after the date the money is paid to the department of the treasury. Any custodial money placed in a separate account pursuant to this subsection (5) must be expended only for the purposes for which the money has been provided. The department shall provide with its annual budget request an accounting of how custodial money has been or will be expended. For informational purposes, the expenditure of such money may be indicated in the annual general appropriation act.

  4. (a) As used in this section, unless the context otherwise requires, "custodial money" means money received by the attorney general:

  1. That originated from a source other than the state of Colorado;

  2. That is awarded or otherwise provided to the state for a particular purpose;

  3. For which the state is acting as a custodian or trustee to carry out the particularpurpose for which the money has been provided.

(b) Notwithstanding subsection (6)(a) of this section, "custodial money" does not include the following:

  1. Money in the tobacco litigation settlement cash fund created in section 24-22-115; or

  2. Tobacco litigation settlement money subject to appropriation or expenditure pursuant to section 24-22-115.6.

Source: L. 2000: Entire section added, p. 257, § 1, effective March 31. L. 2012: (1) amended and (2.5) added, (HB 12-1248), ch. 37, p. 133, § 1, effective July 1. L. 2014: (1)(b) amended, (SB 14-107), ch. 49, p. 228, § 1, effective August 6. L. 2016: IP(4)(b) and (4)(b)(I) amended and (4)(b)(II) repealed, (HB 16-1408), ch. 153, p. 464, § 8, effective July 1. L. 2020: Entire section amended, (SB 20-063), ch. 12, p. 52, § 7, effective September 14.


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