There is hereby created in the state treasury the prepaid services fund. All payments made to the secretary of state as deposits by qualifying individuals and firms who transact business with the office of secretary of state shall be deposited in the state treasury to the credit of the prepaid services fund. The secretary of state shall cause amounts to be transferred not less than monthly from the prepaid services fund to the appropriate state fund at the time services are performed by the agency. Refunds of deposits for services not performed shall be made from the prepaid services fund.