SB 818 Senate Bill - INTRODUCED

BILL NUMBER: SB 818	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Negrete McLeod

                        FEBRUARY 23, 2007

   An act to add Title 2.3 (commencing with Section 3550) to Part 3
of the Penal Code, relating to correctional facilities, by providing
funds necessary therefor through an election for the issuance and
sale of bonds of the State of California and for the handling and
disposition of those funds.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 818, as introduced, Negrete McLeod. Correctional facilities:
Rehabilitation and Re-entry Facilities Bond Act of 2008.
   Existing law, the California Constitution, prohibits the
Legislature from creating a debt or liability that singly or in the
aggregate with any previous debts or liabilities exceeds the sum of
$300,000, except by an act that (1) authorizes the debt for a single
object or work specified in the act, (2) has been passed by a 2/3
vote of all the members elected to each house of the Legislature, (3)
has been submitted to the people at a statewide general or primary
election, and (4) has received a majority of all the votes cast for
and against it at that election.
   This bill would enact the Rehabilitation and Re-entry Facilities
Bond Act of 2008 which, if adopted, would authorize, for purposes of
financing a specified rehabilitation and re-entry correctional
facilities program, the issuance, pursuant to the State General
Obligation Bond Law, of bonds in the amount of $2,000,000,000.
   The bill would provide for submission of the bond act to the
voters at the next statewide election in accordance with specified
law.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Title 2.3 (commencing with Section 3550) is added to
Part 3 of the Penal Code, to read:

      TITLE 2.3.  REHABILITATION AND RE-ENTRY FACILITIES BOND ACT OF
2008


      CHAPTER 1.  GENERAL PROVISIONS


   3550.  This title shall be known and may be cited as the
Rehabilitation and Re-entry Facilities Bond Act of 2008.
   3551.  The Legislature finds and declares all of the following:
   (a) There is a great need to provide opportunities for inmates of
the state prison system to participate in rehabilitation programs.
   (b) Rehabilitation facilities should include, but not be limited
to, substance abuse treatment space and academic and vocational
classrooms.
   (c) Facilities are needed to assist inmates in re-entry into the
community and to provide facilities where rehabilitation will be
available to inmates incarcerated for no more than six months for
revocation of parole.
   3552.  As used in this title, the following terms have the
following meanings:
   (a) "Committee" means the 2008 Rehabilitation and Re-entry
Facility Committee created pursuant to Section 3558.
   (b) "Fund" means the fund created pursuant to Section 3553.
      CHAPTER 2.  PROGRAM PROVISIONS


   3553.  The proceeds of bonds issued and sold pursuant to this
title shall be deposited in the 2008 Rehabilitation and Re-entry
Facilities Fund, which is hereby created.
   3554.  Moneys in the fund, up to a limit of one billion dollars
($1,000,000,000) may be available to construct facilities designed to
provide opportunities for inmates of the state prison system to
participate in rehabilitation programs. The facilities may include,
but not be limited to, substance abuse treatment space, and academic
and vocational classrooms. No more than 5 percent of the limit may be
spent on directly related administrative space.
   3555.  Moneys in the fund, up to a limit of one billion dollars
($1,000,000,000) may be available to construct facilities designed to
assist inmates in reentering the community, or to incarcerate them
for periods not exceeding six months as a result of parole
revocation. Any inmate housed in the facilities as a result of a
parole revocation shall be provided with rehabilitative services. All
facilities constructed pursuant to this section shall be located in
or near communities where there are a sufficient number of parolees
to justify the capacity of the facility.
      CHAPTER 3.  FISCAL PROVISIONS


   3556.  Bonds in the total amount of two billion dollars
($2,000,000,000), or so much thereof as is necessary, not including
the amount of any refunding bonds, or so much thereof as is
necessary, may be issued and sold to provide a fund to be used for
carrying out the purposes expressed in this chapter and to reimburse
the General Obligation Bond Expense Revolving Fund pursuant to
Section 16724.5 of the Government Code. The bonds, when sold, shall
be and constitute a valid and binding obligation of the State of
California, and the full faith and credit of the State of California
is hereby pledged for the punctual payment of both principal of, and
interest on, the bonds as the principal and interest become due and
payable.
   3557.  The bonds authorized by this chapter shall be prepared,
executed, issued, sold, paid, and redeemed as provided in the State
General Obligation Bond Law (Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code),
and all of the provisions of that law, excepting the provisions of
Section 16727 of the Government Code in regard to the use of funds
for rehabilitation services and programs pursuant to Sections 3554
and 3555, apply to the bonds and to this chapter and are hereby
incorporated in this chapter as though set forth in full in this
chapter.
   3558.  (a) Solely for the purpose of authorizing the issuance and
sale pursuant to the State General Obligation Bond Law of the bonds
authorized by this chapter, the 2008 Rehabilitation and Re-entry
Facilities Fund Finance Committee is hereby created. For purposes of
this chapter, the Rehabilitation and Re-entry Facilities Fund Finance
Committee is "the committee" as that term is used in the State
General Obligation Bond Law. The committee consists of the Treasurer,
Controller, and Director of Finance, or their designated
representatives. The Treasurer shall serve as chairperson of the
committee. A majority of the committee may act for the committee.
   (b) For purposes of the State General Obligation Bond Law, the
Department of Corrections and Rehabilitation is designated the
"board."
   3559.  The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in Sections 3554
and 3555 and, if so, the amount of bonds to be issued and sold.
Successive issues of bonds may be authorized and sold to carry out
those actions progressively, and it is not necessary that all of the
bonds authorized to be issued be sold at any one time.
   3560.  There shall be collected each year and in the same manner
and at the same time as other state revenue is collected, in addition
to the ordinary revenues of the state, a sum in an amount required
to pay the principal of, and interest on, the bonds each year. It is
the duty of all officers charged by law with any duty in regard to
the collection of the revenue to do and perform each and every act
that is necessary to collect that additional sum.
   3561.  Notwithstanding Section 13340 of the Government Code, there
is hereby appropriated from the General Fund in the State Treasury,
for the purposes of this chapter, an amount that will equal the total
of the following:
   (a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
   (b) The sum necessary to carry out Sections 3554 and 3555,
appropriated without regard to fiscal years.
   3562.  For the purposes of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount not to exceed the amount of the unsold bonds that have been
authorized by the committee to be sold for the purpose of carrying
out this chapter. Any amounts withdrawn shall be deposited in the
fund. Any money made available under this section shall be returned
to the General Fund from proceeds received from the sale of bonds for
the purpose of carrying out this chapter.
   3563.  All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
   3564.   Pursuant to Chapter 4 (commencing with Section 16720) of
Part 3 of Division 4 of Title 2 of the Government Code, the cost of
bond issuance shall be paid out of the bond proceeds. These costs
shall be shared proportionally by each program funded through this
bond act.
   3565.  The Secretary of the Department of Corrections and
Rehabilitation may request the Pooled Money Investment Board to make
a loan from the Pooled Money Investment Account, including other
authorized forms of interim financing that include, but are not
limited to, commercial paper, in accordance with Section 16312 of the
Government Code, for purposes of carrying out this chapter. The
amount of the request shall not exceed the amount of the unsold bonds
that the committee, by resolution, has authorized to be sold for the
purpose of carrying out this chapter. The secretary shall execute
any documents required by the Pooled Money Investment Board to obtain
and repay the loan. Any amounts loaned shall be deposited in the
fund to be allocated by the board in accordance with this chapter.
   3566.  The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued under this chapter or any previously issued
refunding bonds.
   3567.  Notwithstanding any other provision of this chapter, or of
the State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and for the investment of earnings on those proceeds. The
Treasurer may use or direct the use of those proceeds or earnings to
pay any rebate, penalty, or other payment required under federal law
or take any other action with respect to the investment and use of
those bond proceeds required or desirable under federal law to
maintain the tax exempt status of those bonds and to obtain any other
advantage under federal law on behalf of the funds of this state.
   3568.  The Legislature hereby finds and declares that, inasmuch as
the proceeds from the sale of bonds authorized by this chapter are
not "proceeds of taxes" as that term is used in Article XIII B of the
California Constitution, the disbursement of these proceeds is not
subject to the limitations imposed by that article.
  SEC. 2.  Section 1 of this act shall take effect upon the approval
by the voters of the Rehabilitation and Re-entry Facilities Bond Act
of 2008, as set forth in Section 1 of this act.
  SEC. 3.  Section 1 of this act shall be submitted to the voters at
the next statewide election in accordance with provisions of the
Government Code and the Elections Code governing the submission of a
statewide measure to the voters.
  SEC. 4.  (a) Notwithstanding any other provision of law, all
ballots of the election shall have printed thereon and in a square
thereof, the words: "Rehabilitation and Re-entry Facilities Bond Act
of 2008," and in the same square under those words, the following in
8-point type: "This act provides for a bond issue of two billion
dollars ($2,000,000,000) to provide funds for a rehabilitation and
re-entry correctional facilities program." Opposite the square, there
shall be left spaces in which the voters may place a cross in the
manner required by law to indicate whether they vote for or against
the act.
   (b) Where the voting in the election is done by means of voting
machines used pursuant to law in a manner that carries out the intent
of this section, the use of the voting machines and the expression
of the voters' choice by means thereof are in compliance with this
section.