Cal. Government Code - GOV § 16418.5. Section 16418.5.
(a)
Notwithstanding any other provision of law, each special fund shall include a contingency reserve for economic uncertainties. These reserves shall constitute reserve funds within the meaning of Section 5 of Article XIII
B of the California Constitution.
(b)
On the first day of each fiscal year, or on the day that the Budget Act for that fiscal year is chaptered, whichever occurs later, an amount sufficient for any appropriation made by that Budget Act or by any other statute from the fund in which the reserve account is established, shall be appropriated from each reserve account in each special fund.
(c)
On the last day of each fiscal year, the unappropriated balance in each special fund shall be appropriated to the reserve account in that special fund.