(1) (a) Except as otherwise provided in paragraph (b) of this subsection (1) or in subsection (2) or (3) of this section, any moneys received by the attorney general and paid to the department of the treasury pursuant to section 24-31-101 (1)(d) are subject to annual appropriation by the general assembly.

(b) (I) The department of law is authorized to solicit, accept, and expend gifts, grants, and donations from public and private sources for the purposes of this article; except that the department may not accept a gift, grant, or donation that is subject to conditions inconsistent with this article or any other law of the state. The department shall transmit all moneys it collects pursuant to this paragraph (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 paragraph (b) and that qualify as state moneys are continuously appropriated to the department for the purposes of this article.

(II) and (III) (Deleted by amendment, L. 2014.)

(2) Any moneys received by the attorney general as an award of attorney fees or costs that are not custodial moneys shall be placed in a separate attorney fees and costs account and shall be subject to annual appropriation by the general assembly for legal services provided by the department of law.

(2.5) There is hereby created in the state treasury the legal services cash fund, also referred to in this subsection (2.5) as the "fund". The department of law shall transmit all moneys received from state agencies as payment for legal services to the state treasurer, who shall credit the same to the fund. The moneys in the fund and all interest earned on such moneys are subject to annual appropriation by the general assembly to the department of law 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 moneys in the fund at the end of the fiscal year shall remain in the fund and shall not be credited or transferred to any other fund.

(3) If all or a portion of any moneys received by the attorney general and paid to the department of the treasury pursuant to section 24-31-101 (1)(d) are custodial moneys, the attorney general shall direct the state treasurer in writing to place such custodial moneys in a separate account. Any custodial moneys placed in a separate account pursuant to this subsection (3) shall not be subject to annual appropriation by the general assembly. A copy of the written direction to the state treasurer shall be delivered to the joint budget committee. Such written direction shall set forth the basis for the attorney general's determination that the moneys are custodial moneys and shall specify the manner in which the moneys will be expended. Such written direction shall be given to the state treasurer within thirty days after the date the moneys are paid to the department of the treasury. Any custodial moneys placed in a separate account pursuant to this subsection (3) shall be expended only for the purposes for which the moneys have been provided. The department of law shall provide with its annual budget request an accounting of how custodial moneys have been or will be expended. For informational purposes, the expenditure of such moneys may be indicated in the annual general appropriation act.

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

(I) That originated from a source other than the state of Colorado;

(II) That are awarded or otherwise provided to the state for a particular purpose;

(III) For which the state is acting as a custodian or trustee to carry out the particular purpose for which the moneys have been provided.

(b) Notwithstanding the provisions of paragraph (a) of this subsection (4), custodial moneys do not include the following:

(I) Moneys in the tobacco litigation settlement cash fund created in section 24-22-115; or

(II) Repealed.

(III) Tobacco litigation settlement moneys subject to appropriation or expenditure pursuant to section 24-22-115.6.