Chapter 3. Fiscal Provisions of California Penal Code >> Title 4.8. >> Part 3. >> Chapter 3.
Bonds in the total amount of five hundred million dollars
($500,000,000), exclusive of 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 title and 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.
The bonds authorized by this title 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
chapter and are hereby incorporated in this chapter as though set
forth in full in this title.
(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 title, the 1988 County Correctional Facility
Capital Expenditure and Youth Facility Finance Committee is hereby
created. For purposes of this title, the finance committee is "the
committee" as that term is used in the State General Obligation Bond
Law. The committee consists of the Governor, the Controller, the
Treasurer, the Director of Finance, or their designated
representatives. A majority of the committee may act for the
(b) For purposes of the State General Obligation Bond Law, the
Board of Corrections is designated the "board."
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 Section
4496.12 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.
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.
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 which is necessary to carry out the provisions of
Section 4496.42, appropriated without regard to fiscal years.
For the purposes of carrying out this title, 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, plus any
interest that the amounts would have earned in the Pooled Money
Investment Account, shall be returned to the General Fund from money
received from the sale of bonds for the purpose of carrying out this
Notwithstanding any other provision of this bond act, or
of 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), if the Treasurer sells bonds pursuant to this bond act 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 take any other action with respect to the investment and 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.
All money deposited in the fund which 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.
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.
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 by resolution authorized to be sold for the purpose of
carrying out this chapter. The board shall execute such documents as
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.
The Legislature hereby finds and declares that, inasmuch
as the proceeds from the sale of bonds authorized by this title 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.