The department may enter into contracts for the provision of legally authorized employee benefits not requiring voluntary participation or payroll deductions. Where these contracts are made, the Controller shall transfer from the operating budgets of the departments participating in the contract to the State Payroll Revolving Fund, an amount sufficient to fund each department's per capita cost. The Controller shall pay the contractor or contractors pursuant to the master payment schedule and the certification from the department.
Ca. Gov. Code § 19816.17