(a) Creation of Local Criminal Justice Fund.--There is hereby created in the State Treasury a special fund to be known as the Local Criminal Justice Fund. The proceeds realized from the sale of bonds under the provisions of this chapter shall be paid into this special fund and are hereby specifically dedicated to the purpose of the referendum authorized by section 702. The moneys shall be paid periodically by the State Treasurer to the department at such times and in such amounts as may be necessary to satisfy the purpose of this chapter.

(b) Investment and earnings.--Pending their application to the purposes authorized, moneys held or deposited in the Local Criminal Justice Fund by the State Treasurer may be invested or reinvested as are other funds in the custody of the State Treasurer in the manner provided by law. All earnings received from the investment or deposit of such funds shall be paid into the State Treasury to the credit of the Local Criminal Justice Fund.