Gov. Code, § 22911

(a) There shall be maintained in the State Treasury the Public Employees’ Health Care Fund to fund the health benefit plans administered or approved by the board. The board may invest funds in the Public Employees’ Health Care Fund in accordance with the provisions of law governing its investment of the retirement fund.

(b) The Public Employees’ Health Care Fund shall consist of the following:

(1) Any self-funded, partially self-funded, or minimum premium plan premiums paid by contracting agencies, the state and enrolled employees, annuitants, and family members, including premiums paid directly for continuation coverage authorized under the Consolidated Omnibus Budget Reconciliation Act, and as authorized by this part.

(2) Any reserve moneys from terminated health benefit plans designated by the board.

(3) Any moneys from a health benefit plan for risk adjustment pursuant to Section 22864.

(c) Income earned on the Public Employees’ Health Care Fund shall be credited to the fund.

(d) Notwithstanding Section 13340, the Public Employees’ Health Care Fund is continuously appropriated, without regard to fiscal years, to pay benefits and claims costs for self-funded, partially self-funded, or minimum premium health benefit plans, and refunds to those who made direct premium payments.

(e) The moneys deposited in the Public Employees’ Health Care Fund may be expended by the board for administrative purposes provided that the expenditure is approved in the annual Budget Act.

(f) The Legislature finds and declares that the Public Employees’ Health Care Fund is a trust fund held for the exclusive benefit of enrolled employees, annuitants, and family members.

(g) Notwithstanding subdivisions (d) and (f), the board may use reserves generated by one or more self-funded health benefit plans for risk adjustment programs and procedures pursuant to paragraph (3) of subdivision (f) of Section 22850 and paragraph (5) of subdivision (b) of Section 22864.