BILL NUMBER: AB 326 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 1999
INTRODUCED BY Assembly Member Leonard
(Coauthors: Assembly Members Bates, Battin, Briggs, Cox,
Cunneen, Dickerson, House, Olberg, and Runner)
FEBRUARY 11, 1999
An act to add Chapter 17 (commencing with Section 7440) to Title 7
of Part 3 of the Penal Code, relating to financing the construction
of prison correctional facilities by
providing the funds necessary therefor through the issuance and sale
of bonds of the State of California and by providing for the handling
and disposition of those funds.
LEGISLATIVE COUNSEL'S DIGEST
AB 326, as amended, Leonard. Prison
Correctional facilities construction.
(1) Existing law authorizes the construction of correctional
facilities, as specified.
This bill, in addition, would authorize the Department of
Corrections to construct and establish 6 medium, maximum, or
combination thereof, security prisons throughout the State of
California.
(2) Existing law contains various bond acts to finance the
construction of state correctional facilities, including the New
Prison Construction Bond Act of 1990, under which the proceeds of the
sale of bonds in the amount of $450,000,000 is available for the
acquisition, construction, renovation, remodeling, and deferred
maintenance of state youth and adult correctional facilities.
This bill would enact the New Prison Construction Bond
Act of 1999 State and Local Youth and Adult Offender
Drug Rehabilitation Bond Act of 2000 , which, if adopted, would
authorize the issuance, pursuant to the State General Obligation
Bond Law, of bonds in an unspecified amount
the amount of $4,100,000,000 to provide for the construction of
the 6 state prisons described in (1) above, the capital
improvement of existing state and local facilities and
for the purpose of refinancing to refinance
interim debt incurred for these purposes the
treatment, rehabilitation, and punishment of adult and juvenile
offenders .
The bill would provide for submission of the bond act to the
voters at the March 7, 2000, statewide primary 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. (a) The Department of Corrections is hereby authorized
to construct and establish six medium, maximum, or combination
thereof, security prisons throughout the State of California.
(b) The location of the prisons established pursuant to this act
shall be consistent with the department's Five-Year Facilities Master
Plan for the fiscal years 1999-2000 to 2003-04, inclusive.
(c) The department shall provide space in the prisons established
pursuant to this act to accommodate the need of inmates needing drug
and alcohol rehabilitation.
(d) The number of rehabilitation spaces shall be consistent with
the needs identified in the department's Five-Year Facilities Master
Plan for the fiscal years 1999-2000 to 2003-04, inclusive.
SEC. 2. Chapter 17 (commencing with Section 7440) is added to
Title 7 of Part 3 of the Penal Code, to read:
CHAPTER 17. NEW PRISON CONSTRUCTION BOND ACT OF 1999
7440. This chapter shall be known and may be cited as the New
Prison Construction Bond Act of 1999.
7441. The State General Obligation Bond Law is adopted for the
purpose of the issuance, sale and repayment of, and otherwise
providing with respect to, the bonds authorized to be issued by this
chapter, and the provisions of that law are included in this chapter
as though set out in full in this chapter except that,
notwithstanding anything in the State General Obligation Bond Law,
the maximum maturity of the bonds shall not exceed 20 years from the
date of each respective series. The maturity of each respective
series shall be calculated from the date of that series.
7442. There is in the State Treasury the 1999 Prison Construction
Fund, which fund is hereby created. The proceeds of the sale of
bonds authorized by this chapter shall be deposited in the fund.
Upon request of the Department of Corrections and upon approval of
the Director of Finance, appropriations or augmentations to
appropriations made from the 1984 Prison Construction Fund
established by Section 7202, the 1986 Prison Construction Fund
established by Section 7302, the 1988 Prison Construction Fund
established by Section 7402, or the 1990 Prison Construction Fund
established by Section 7422, or any combination thereof, may be
funded from the 1999 Prison Construction Fund. If the moneys are so
funded, "fund" means the 1984 Prison Construction Fund, the 1986
Prison Construction Fund, the 1988 Prison Construction Fund, the 1990
Prison Construction Fund, or the 1999 Prison Construction Fund
created by this section, or any combination thereof, as is
appropriate. At least 30 days prior to requesting funding for
appropriations or augmentations to appropriations for other bond acts
as authorized by this section, the Department of Corrections shall
notify the chairpersons of the fiscal committees in each house of the
Legislature, and the chairperson and the vice chairperson of the
Joint Legislative Budget Committee.
7443. The 1999 Prison Construction Committee is hereby created.
The committee shall consist of the Controller, the Treasurer, and the
Director of Finance, or their designated representatives. A
majority may act for the committee. The Treasurer shall chair the
committee. That committee shall be the "committee," as that term is
used in the State General Obligation Bond Law.
When funds are appropriated to the Department of Corrections, the
Department of Corrections is the "board" for the purpose of the State
General Obligation Bond Law and this chapter.
7444.
CHAPTER 17. STATE AND LOCAL YOUTH AND ADULT OFFENDER DRUG
REHABILITATION BOND ACT OF 2000
Article 1. General Provisions
7440. This chapter shall be known and may be cited as the State
and Local Youth and Adult Offender Drug Rehabilitation Bond Act of
2000.
7441. (a) It is the intent of the Legislature to provide funding
for the capital construction of state and local facilities for the
treatment, rehabilitation, and punishment of juvenile and adult
offenders. Neither the counties nor the state have sufficient
options for providing a continuum of care for juvenile and adult
offenders that provides for all of the following:
(1) Swift, certain, and effective rehabilitative treatment and
penalties for all offenders.
(2) Treatment of offenders whose criminality results from
substance abuse or mental disorders.
(3) Community service for offenders at the local level when
appropriate and allowed by law.
(4) Ensuring appropriate supervision in secure and nonsecure
settings.
(5) Providing alternatives to commitment to state and local
correctional facilities when allowed by law.
(b) Public safety is a primary purpose of this chapter. By their
overwhelming support for Proposition 184, the "Three Strikes
Initiative," at the November 8, 1994, general election, the people of
the State of California have demanded that violent, serious, and
repeat felons be incarcerated with longer sentences. The passage of
Proposition 184 has adversely impacted the temporary and long-term
capacity of local and state correctional facilities, creating a
serious safety risk.
(c) Numerous state and county adult and juvenile facilities
throughout California are dilapidated and overcrowded, and expansion
of available bed capacity is critical. Capital improvements are
necessary to protect the life and safety of persons confined or
employed in these facilities, and to upgrade health and sanitary
conditions to avoid threatened closures or the imposition of
court-ordered sanctions.
7442. As used in this chapter, the following terms have the
following meanings:
(a) "Committee" means the 2000 State and Local Youth and Adult
Offender Drug Rehabilitation Bond Finance Committee created pursuant
to Section 7446.
(b) "Fund" means the 2000 Local Youth Offender Drug Rehabilitation
Bond Fund, the 2000 Local Adult Offender Drug Rehabilitation Bond
Fund, or the 2000 State Adult Offender Drug Rehabilitation Bond Fund,
as created pursuant to Section 7443.
Article 2. The State and Local Youth and Adult Offender Drug
Rehabilitation Program
7443. Of the proceeds of bonds issued and sold pursuant to this
chapter, one billion nine hundred million dollars ($1,900,000,000),
shall be deposited in the 2000 Local Adult Offender Drug
Rehabilitation Bond Fund, which is hereby created, two hundred
million dollars ($200,000,000) shall be deposited in the 2000 Local
Youth Offender Drug Rehabilitation Bond Fund, which is hereby
created, and two billion dollars ($2,000,000,000) shall be deposited
in the 2000 State Adult Offender Drug Rehabilitation Bond Fund, which
is hereby created.
7444. (a) Moneys in the 2000 Local Adult Offender Drug
Rehabilitation Bond Fund shall be used for the construction,
renovation to increase or maintain capacity, remodeling, and
replacement of local facilities for the treatment, rehabilitation,
and punishment of adult offenders. Up to one and 1/2 percent of
moneys in the fund may be used by the Board of Corrections for
administration of this chapter.
(b) In order to be eligible to receive money for the purposes
specified in this section, a county shall apply in the manner and
form prescribed by the Board of Corrections.
(c) Allocation of funds shall be subject to future appropriation
by the Legislature, and shall be made based on the following
criteria:
(1) County matching funds of at least 25 percent shall be provided
as determined by statute, except that this requirement may be
modified or waived by statute where the Legislature determines that
it is necessary to facilitate the expeditious and equitable
construction of local correctional facilities. The greater the
percentage of matching funds that a county provides, the higher
priority the county shall be given for allocation of moneys.
(2) The county, or a group of counties acting together, have
developed a plan that identifies the county continuum of care model
for prevention, intervention, supervision, treatment, and
incarceration of adult offenders. The plan shall identify how the
county will maximize all funding sources, including local criminal
justice, local social services, federal and state programs, and
education, for providing appropriate services for adult offenders.
The plan shall demonstrate that the county has utilized, to the
greatest extent practicable, alternatives to jail incarceration. The
plan also shall identify the capital needs for fully providing the
services outlined in the county model.
(d) Counties that have begun to plan, construct, or renovate
facilities after January 1, 1999, but prior to the enactment of this
chapter, shall remain eligible to receive state matching funds.
7445. (a) Moneys in the 2000 Local Youth Offender Drug
Rehabilitation Bond Fund shall be used for the construction,
renovation to increase or maintain capacity, remodeling, and
replacement of local facilities for the treatment, rehabilitation,
and punishment of juvenile offenders, and may be used for capital
improvement, rehabilitation, or renovation performed by local
juvenile community service work crews. Up to one and 1/2 percent of
moneys in the fund may be used by the Board of Corrections for
administration of this title.
(b) In order to be eligible to receive money for the purposes
specified in this section, a county shall apply in the manner and
form prescribed by the Board of Corrections.
(c) Allocation of funds shall be subject to future appropriation
by the Legislature, and shall be made based on the following
criteria:
(1) County matching funds of at least 25 percent shall be provided
as determined by statute, except that this requirement may be
modified or waived by statute where the Legislature determines that
it is necessary to facilitate the expeditious and equitable
construction of local correctional facilities. The greater the
percentage of matching funds that a county provides, the higher
priority the county shall be given for allocation of moneys.
(2) The county, or a group of counties acting together, have
developed a plan that identifies the county continuum of care model
for prevention, intervention, supervision, treatment, and detention
of juvenile offenders. The plan shall identify how the county will
maximize all funding sources, including local criminal justice, local
social services, federal and state programs, and education, for
providing appropriate services for juvenile offenders. The plan
shall demonstrate that the county has utilized, to the greatest
extent practicable, alternatives to detention. The plan also shall
identify the capital needs for fully providing the services outlined
in the county model.
(d) Counties that have begun to plan, construct, or renovate
facilities after January 1, 1999, but prior to the enactment of this
chapter, shall remain eligible to receive state matching funds.
7446. The moneys in the State Adult Offender Drug Rehabilitation
Bond Fund shall be used for the construction of the six state
correctional facilities authorized pursuant to the act that enacted
this chapter. In addition, moneys in the fund may be used to help
mitigate capital costs of school districts and local governments
impacted by those facilities, provided the cost of the mitigation
does not exceed two million dollars ($2,000,000) per school district
or local government. Moneys deposited in the fund may also be used
for the refinancing of interim debt incurred for any of the purposes
specified in this section.
7447. (a) The Youth and Adult Offender Drug Rehabilitation
Financing Authority is hereby created in the Board of Corrections.
The composition of the authority shall be established by statute.
The authority shall evaluate plans prepared pursuant to paragraph (2)
of subdivision (c) of Section 7444 and paragraph (2) of subdivision
(c) of Section 7445. Staff support to the authority shall be
performed by existing staff for the Board of Corrections. In
addition, the authority may allocate any state and federal juvenile
justice grant funds that are appropriated to it by the Legislature.
(b) The Board of Corrections shall not be deemed a responsible
agency, as defined in Section 21069 of the Public Resources Code, or
otherwise be subject to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) for any activities undertaken or funded pursuant to this title
only as they relate to the allocation of funds to local government.
This subdivision does not exempt any local agency from the
requirements of the California Environmental Quality Act.
7448. Money in the funds may only be expended for projects
specified in this chapter as allocated in appropriations made by the
Legislature.
Article 3. Fiscal Provisions
7449. Bonds in the total amount of four billion one hundred
million dollars ($4,100,000,000), exclusive of refunding bonds, or so
much thereof as is necessary, may be issued and sold to provide
funds to be used for carrying out the purposes expressed in this
chapter to be used to reimburse the General Obligation Bond Expense
Revolving Fund pursuant to Section 16724.5 of the Government Code.
The bonds shall, when sold, 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.
7450. 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 apply to the bonds and to this
title and are hereby incorporated in this chapter as though set forth
in full in this chapter.
7451. (a) Solely for the purpose of authorizing, pursuant to the
State General Obligation Bond Law, the issuance and sale of the bonds
authorized by this chapter, the 2000 State and Local Youth and Adult
Offender Drug Rehabilitation Bond Finance Committee is hereby
created. For purposes of this chapter, the 2000 State and Local
Youth and Adult Offender Drug Rehabilitation Bond Finance Committee
is "the committee" as that term is used in the State General
Obligation Bond Law. The committee consists of the Controller, the
Treasurer, the Director of Finance, and the Chair of the Board of
Corrections, and the Director of the Youth and Adult Correctional
Agency. 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
2000 State and Local Youth and Adult Offender Drug Rehabilitation
Financing Authority in the Board of Corrections is designated "the
board."
7452. 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 Article 2
(commencing with Section 7443) 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.
7453. 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, and 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
which is necessary to collect that additional sum.
7454. All money deposited in the funds 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.
7455. The committee is hereby authorized and empowered to
create a debt or debts, liability or liabilities, of the State of
California, in the aggregate principal amount of ____
dollars ($_____) four billion one hundred million
dollars ($4,100,000,000) , exclusive of refunding bonds, in the
manner provided in this chapter. That debt or debts, liability or
liabilities, shall be created for the purpose of providing the fund
to be used for the object and work specified in Section 7446
7455 and to be used to reimburse the General
Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of
the Government Code.
7445. The committee may determine whether or not it is necessary
or desirable to issue any bonds authorized under this chapter, and if
so, the amount of bonds then to be issued and sold. The committee
may authorize the Treasurer to sell all or any part of the bonds
herein authorized at such time or times as may be fixed by the
Treasurer.
7446. The moneys in the fund shall be used for the construction
of the six state correctional facilities authorized pursuant to the
act that enacted this chapter. In addition, moneys in the fund may
be used to help mitigate capital costs of school districts and local
governments impacted by those facilities, provided the cost of the
mitigation does not exceed two million dollars ($2,000,000) per
school district or local government. Moneys deposited in the fund
may also be used for the refinancing of interim debt incurred for any
of the purposes specified in this section.
7447. (a) All bonds herein authorized, which shall have been duly
sold and delivered as herein provided, shall constitute valid and
legally binding general obligations 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 the principal thereof and
interest thereon.
(b) There shall be collected annually in the same manner and at
the same time as other state revenue is collected, that sum, in
addition to the ordinary revenues of the state, that is required to
pay the principal of, and interest on those bonds, and it is hereby
made the duty of all officers charged by law with any duty in regard
to the collection of that revenue to do and perform each and every
act which shall be necessary to collect that additional sum.
(c) All money deposited in the fund that has been derived from
premiums or accrued interest on bonds sold shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
(d) All money deposited in the fund pursuant to any provision of
law requiring repayments to the state that is financed by the
proceeds of the bonds authorized by this chapter shall be available
for transfer to the General Fund. When transferred to the General
Fund that money shall be applied as a reimbursement to the General
Fund on account of the principal of and interest on the bonds which
have been paid from the General Fund.
7448.
7456. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury for the purpose of this chapter such an amount as will equal
the following:
(a) That sum annually as will be necessary to pay the principal of
and the interest on the bonds issued and sold pursuant to this
chapter.
(b) That sum as is necessary to carry out the provisions of
Section 7449, which sum is appropriated without regard to fiscal
years.
7449. For the purpose of carrying out this chapter, the Director
of Finance may authorize, by executive order, the withdrawal from the
General Fund of an amount or amounts not to exceed the amount of the
unsold bonds which the committee has authorized, by resolution, to
be sold for the purpose of carrying out this chapter. Any amounts
withdrawn shall be deposited in the fund and shall be disbursed by
the committee in accordance with this chapter. Any money made
available under this section to the board shall be returned by the
board to the General Fund from moneys received from the sale of bonds
sold for the purpose of carrying out this chapter. Those
withdrawals from the General Fund shall be returned to the General
Fund with interest at the rate which would otherwise have been earned
by those sums in the Pooled Money Investment Account.
7450.
7457. For the purposes of carrying out this chapter, the Director
of Finance may authorize the withdrawal from the General Fund of an
amount or amounts not to exceed the amount of the unsold bonds which
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 money received from the sale of
bonds for the purpose of carrying out this chapter.
7458. The board may request the Pooled Money Investment
Board to make a loan from the Pooled Money Investment Account, in
accordance with Section 16312 of the Government Code, for the
purposes of carrying out the provisions of this chapter. The amount
of the request shall not exceed the amount of the unsold bonds which
the committee has authorized, by resolution, to be sold for the
purpose of carrying out this chapter. The board 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.
7451.
7459. Any bonds issued and sold pursuant to this chapter
may be refunded by the issuance of refunding bonds 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. Approval by the
electors of the state for the issuance of bonds shall include the
approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.
7452.
7460. All proceeds from the sale of bonds, except those
derived from premiums and accrued interest, shall be available for
the purposes provided in Section 7446 7455
, but shall not be available for transfer to the General Fund
to pay the principal of, and interest on, bonds. The money in the
fund may be expended only as herein provided.
Notwithstanding any provision of this chapter or the State General
Obligation Bond Law set forth in Chapter 4 (commencing with Section
16720) of Part 3 of Division 4 of Title 2 of the Government Code, 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 under designated
conditions, the Treasurer may maintain separate accounts for the bond
proceeds invested and the investment earnings on those proceeds, and
may use or direct the use of those proceeds or earnings to pay any
rebate, penalty, or other payment required under federal law, or to
take any other action with respect to the investment and the use of
those bond proceeds, as may be required or desirable under federal
law in order 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.
7453.
7461. Money in the fund may be expended only pursuant to
appropriations by the Legislature. The Department of Corrections,
annually on or before January 10, shall submit its five-year facility
master plan to the Legislature. The plan shall
include a program of proposed expenditures
from the 1999 Prison Construction Fund.
7454.
7462. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of the State Obligation Bond Law.
7463. 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
XIIIB of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.
SEC. 3. The amount of the General Obligation Bond authorized
pursuant to Section 2 of this act, although unspecified, shall be
consistent with the amounts necessary to construct the six prisons
authorized pursuant to Section 1 of this act.
SEC. 4.
SEC. 3. Section 2 of this act shall become effective upon
the approval by the voters, at the March 7, 2000, statewide primary
election, of the New Prison Construction Bond Act of 1999
State and Local Youth and Adult Offender Drug
Rehabilitation Bond Act of 2000 , as set forth in Section 2 of
this act.
SEC. 5.
SEC. 4. Section 2 of this act shall be submitted to the
voters at the March 7, 2000, statewide primary election in accordance
with provisions of the Government Code and the Elections Code
governing submission of statewide measures to the voters.
SEC. 6.
SEC. 5. (a) Notwithstanding any other provision of law, all
ballots of the March 7, 2000, statewide primary election shall have
printed thereon and in a square thereof, exclusively the words:
"New Prison Construction Bond Act of 1999,"
"State and Local Youth and Adult Offender Drug Rehabilitation Bond
Act of 2000" and in the same square under those words, the
following in 8-point type: "This act provides for a bond
issue of ____ dollars ($____) to provide funds to relieve
overcrowding in the state's prisons through new construction
a bond issue of four billion one hundred million
dollars ($4,100,000,000) to provide funds to construct, renovate,
remodel, or replace state and local correctional facilities ."
Opposite the square, there shall be left spaces in which voters may
place a cross in the manner required by law to indicate whether they
vote for or against the act.
(b) Where 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.
SEC. 6. Notwithstanding Sections 9040, 9043, 9044, 9061, and 9094
of the Elections Code, or any other provision of law, the Secretary
of State shall submit Section 2 of this act to the voters at the
March 7, 2000, statewide primary election in accordance with
provisions of the Government Code and the Elections Code governing
the submission of statewide measures to the voters.