2007 California Government Code Chapter 3.1. Lease-purchase Financing Of Prison Construction

CA Codes (gov:15819.1-15819.30)

15819.1.  As used in this chapter:
   (a) "Bonds" means revenue bonds, notes, including commercial paper
notes or other forms of negotiable short-term indebtedness, or bond
anticipation notes issued to finance prison facilities, interest
during construction  of prison facilities, reserve funds, and costs
of issuance of the bonds, as the board may determine.
   (b) "Lease pledge" means the pledge of the board of moneys for
payment under the prison facilities lease.
   (c) "Lease-purchase financing" means the financing of prison
facilities from the proceeds of the sale of bonds authorized by the
board.
   (d) "Lessor" means the lessor under any prison facilities lease
and any trustee on behalf of the lessor.
   (e) "Prison facilities lease" means any lease of a prison facility
entered into by the Director of Corrections with the board pursuant
to this chapter.
   (f) "Prison facility" means real property, fixtures, furnishings,
equipment, and related improvements for the following facilities:
   (1) State prison--Amador County.
   (2) Southern Maximum Security Complex.
   (3) California State Prison--Corcoran (as authorized by Section 6
of Chapter 931 of the Statutes of 1985).



15819.2.  Without obtaining further authorization under Section
15808, the board may acquire, may obtain an option to purchase, and
may engage in the construction of prison facilities at any site which
by statutory authorization may be used, owned, or hereafter acquired
by the Department of Corrections, but only at the request or with
the consent of the Department of Corrections.



15819.3.  The board may finance prison facilities using
lease-purchase financing arrangements by the issuance of bonds
pursuant to Chapter 5 (commencing with Section 15830).  The
construction and acquisition of prison facilities or the financing of
prison facilities constitutes the construction of public buildings
for the purposes of Chapter 5 (commencing with Section 15830).  In
addition to the cost of construction, the board may authorize any
additional amounts necessary to pay the costs of financing,
including, but not limited to, interest during construction of the
project and a reasonably required reserve fund.
   The total amount of bonds issued pursuant to this section shall
not exceed six hundred fifty million dollars (0,000,000).



15819.4.  (a) Lease-purchase financing shall not be sold by the
Treasurer unless, at the time any notes or bond anticipation notes
constituting the lease-purchase financing are so sold, they are rated
in the highest short-term rating category by a nationally recognized
rating service, at the time of sale or, at the time any bonds, other
than notes or bond anticipation notes, constituting the
lease-purchase financing are so sold, they are rated by a nationally
recognized rating service no more than one full credit grade below
the state general obligation bond rating at the time of the sale.
   (b) Notwithstanding the provisions of subdivision (a), at least 30
days before a sale not meeting the requirements of subdivision (a),
or not sooner than whatever lesser time both the Chairperson and Vice
Chairperson of the Joint Legislative Budget Committee or their
designees may in each instance determine, the Treasurer shall notify
the Chairperson and Vice Chairperson of the Joint Legislative Budget
Committee of the advantage to the state of proceeding with the sale.

   (c) Upon compliance with subdivision (b), the Treasurer is
authorized to proceed with the sale.



15819.5.  Bonds authorized to be issued pursuant to this chapter
shall be sold pursuant to Sections 15832 and 15832.5.



15819.6.  Notwithstanding Section 15816, the public buildings
financed by the board pursuant to this chapter shall be and remain
under the jurisdiction and control of, and shall be operated and
maintained by, the Department of Corrections.  Construction of any
prison facilities utilizing the financing methods authorized in this
chapter shall be done on behalf of the board by the Department of
Corrections.  The Department of Corrections may contract with a
construction manager and others for construction and other services
related to the construction of prison facilities financed pursuant to
this chapter.


15819.7.  Amounts necessary to pay rent for the public buildings
financed pursuant to this chapter and under and pursuant to a prison
facilities lease are hereby appropriated without regard to fiscal
year from the General Fund, but shall become available for
expenditure only if the Department of Finance certifies to the
Controller that the amount required to pay this rent has not been
included in the Budget Act for that fiscal year for the support of
the Department of Corrections.



15819.8.  At least 20 days prior to marketing bonds authorized by
this chapter, the Department of Corrections shall notify the
chairpersons of the fiscal committees in each house of the
Legislature, the Chairpersons of the Assembly Committee on Public
Safety and the Senate Committee on Criminal Procedure, the
Chairperson and the Vice Chairperson of the Joint Legislative Budget
Committee, and the Chairperson of the Joint Legislative Committee on
Prison Construction and Operation of the general parameters of the
proposed sale, including the size and terms of the issue, the
anticipated debt service requirements, and any other significant
factors affecting the sale.  This paragraph does not apply to the
marketing of bonds for lease-purchase financing of the California
State Prison--Corcoran.
   The Department of Corrections shall report to each of these
persons on a quarterly basis following the sale of the bonds on the
progress of any acquisition or construction financed by the sale and
on the then current debt service requirements.




15819.9.  The revenues, rentals, and receipts from all public
buildings authorized to be financed under this chapter may be pledged
for the payment of principal of, premium, if any, and interest on,
the bonds issued to finance the acquisition and construction of all
these public buildings.  The bonds issued to finance these public
buildings may be equally secured by a lien upon the revenues,
rentals, and receipts without priority for number or the date of the
bonds, their sale, execution, or delivery pursuant to this part.



15819.10.  The board, as additional security for a prison facilities
lease, may agree to pledge and assign all or any portion of any
moneys as may be legally available from time to time, to secure
payments of the prison facilities lease to a fiscal agent, the
treasurer, or to a trustee in trust for the persons entitled thereto.




15819.11.  In addition to any other powers granted by law, the board
may, for the purposes of this chapter, do any or all of the
following:
   (a) Obtain insurance against loss by fire or other hazards on
public buildings, both during and after construction, and obtain
insurance against loss of revenues from any causes whatsoever, for
the protection of the holders of bonds.
   (b) Issue notes, including commercial paper notes or other forms
of short-term negotiable indebtedness, and bond anticipation notes as
provided in this part to obtain interim funds to pay the cost of
public buildings, secure the payment of notes, including commercial
paper notes or other forms of short-term negotiable indebtedness, and
bond anticipation notes and interest thereon as provided in this
part, and provide for the security of notes, including commercial
paper notes or other forms of short-term negotiable indebtedness, and
bond anticipation notes and the rights of the holders thereof.
   The board may authorize the preparation of bid proposals for the
construction of projects prior to obtaining interim financing.
However, no contracts to be funded with proceeds from the sale of
bonds shall be executed until interim financing is available to the
board.
   (c) Obtain and assign options to purchase prison facility sites
authorized by the Legislature.



15819.12.  A prison facilities lease may be for any term not to
exceed 35 years and may contain other terms, covenants, and
conditions as the board may approve.



15819.13.  An amount not to exceed the amount of unsold bonds which
the board has by resolution authorized to be sold for the purposes of
carrying out this chapter is hereby appropriated from the General
Fund to the Director of Finance, who may direct that any portion of
that amount shall be deposited into a special account in the Public
Building Construction Fund, to be used for the construction of prison
facilities to be financed pursuant to this chapter.  Any amounts
made available from the General Fund under this section to the board
shall be repaid by the board to the General Fund from the proceeds
received from the sale of bonds sold for the purpose of carrying out
this chapter.  These amounts shall be repaid to the General Fund with
interest at the rate which the Treasurer certifies would have been
earned on those amounts if invested in the Surplus Money Investment
Fund.



15819.14.  (a) There is in the State Treasury the New Prison
Construction Revenue Fund, which is hereby created.  Moneys derived
from the lease-purchase financing of the Southern Maximum Security
Complex prison facilities as authorized by this chapter shall be
deposited in this fund.  Proceeds of the sale of bonds deposited in
the New Prison Construction Revenue Fund may be transferred by the
board, upon the approval of the Director of Finance, to the 1984
Prison Construction Fund established by Section 7202 of the Penal
Code.  Moneys shall be withdrawn from the 1984 Prison Construction
Fund in accordance with law for the purpose of carrying out the New
Prison Construction Bond Act of 1984.



15819.15.  This chapter shall be interpreted in a manner that will
promote the security of the bond holders and the expeditious
acquisition, construction, renovation, or improvement of correctional
facilities.


15819.19.  Notwithstanding Section 13340, funds derived from the
financing methods provided by this chapter for the prison in the
vicinity of Corcoran in Kings County and deposited in the State
Treasury are hereby continuously appropriated to the State Public
Works Board on behalf of the Department of Corrections for the
purpose of acquiring and constructing the prison facility so
financed.
   Funds so appropriated by this section shall be available as
necessary for site acquisition, site studies, and suitability
reports, environmental studies, master planning, architectural
programming, schematics, preliminary plans, working drawings,
construction, and long lead and equipment items.
   The State Public Works Board may authorize the augmentation of the
cost of the construction of the prison in the vicinity of Corcoran
in Kings County, subject to the limitations set forth in Section
13332.11 of the Government Code.



15819.20.  (a) This section applies to the funding through
lease-purchase financing arrangements for the construction of the
California State Prison-Del Norte County as authorized by the 1986
amendments to Section 1.5 of Chapter 237 of the Statutes of 1985 by
the statute which enacted this section.
   (b) The provision of Sections 15819.1 to 15819.13, inclusive, and
Section 15819.15 apply to the funding of the California State
Prison-Del Norte County, provided that for that purpose:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Del Norte County.
   (2) Notwithstanding the monetary limitation imposed by Section
15819.3, the total amount of bonds which may be issued pursuant to
this section for the California State Prison-Del Norte County shall
not exceed the additional sum of three hundred twenty five million
dollars (5,000,000).
   (c) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State Prison-Del
Norte County deposited in the State Treasury, are hereby continuously
appropriated to the State Public Works Board on behalf of the
Department of Corrections for the purpose of acquiring and
constructing the prison facility so financed.
   Funds so appropriated shall be available as necessary for site
acquisition, site studies, and suitability reports, environmental
studies, architectural programming, schematics, preliminary plans,
working drawings, construction, long lead and equipment items.




15819.21.  (a) The necessary funding for the construction of the
California State Prison-Madera County authorized by Section 6.5 of
Chapter 1393 of the Statutes of 1986, as amended by the act in which
this section was added, may be obtained through lease-purchase
financing arrangements.  The provisions of Sections 15819.1 to
15819.13, inclusive, and Section 15819.15 shall apply for that
purpose provided that:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Madera County.
   (2) Notwithstanding the monetary limitation imposed by Section
15819.3, the total amount of bonds which may be issued pursuant to
this section for the California State Prison--Madera County shall not
exceed the additional sum of two hundred twenty-five million dollars
(5,000,000).
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison--Madera County deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   Funds appropriated by this section shall be available as necessary
for site acquisition, site studies and suitability reports,
environmental planning, architectural programming, schematics,
preliminary plans, working drawings, construction, long-lead and
equipment items.
   The State Public Works Board may authorize the augmentation of the
cost of the construction of the projects set forth in this section
pursuant to the board's authority under Section 13332.11.



15819.22.  (a) The necessary funding for the construction of the
California State Prison-Imperial County authorized by Chapter 1220 of
the Statutes of 1988 may be obtained through lease-purchase
financing arrangements.  The provisions of Sections 15819.1 to
15819.13, inclusive, and Section 15819.15 shall apply for that
purpose provided that:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Imperial County.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Imperial County.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison-Imperial County deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   The sum of one hundred ninety-three million seven hundred thousand
dollars (3,700,000) shall be available for capital outlay for the
California State Prison-Imperial County from funds derived from
lease-purchase financing methods.  This amount shall be available as
necessary for site acquisition, site studies and suitability reports,
environmental studies, master planning, architectural programming,
schematics, preliminary plans, working drawings, construction, and
long lead and equipment items.
   (c) The State Public Works Board may authorize the augmentation of
the cost of the construction of the projects set forth in this
section pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to pay the costs of financing, including the
payment of interest during construction of the project, any
additional amount as may be authorized by the board to pay the cost
of financing a reserve fund, and the cost of issuance of permanent
financing for the project. This additional amount may include
interest during acquisition or construction of the facility, interest
payable on any interim loan for the facility from the Pooled Money
Investment Account pursuant to Section 16312, a reasonably required
reserve fund, and the costs of issuance of permanent financing of the
facility.



15819.23.  (a) The necessary funding for the construction of the
California State Prison-Imperial County, South authorized by Chapter
1413 of the Statutes of 1989 may be obtained through lease-purchase
financing arrangements.  The provisions of Section 15819.1 to
15819.13, inclusive, and Section 15819.15 shall apply for these
purposes provided that the following also applies:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Imperial County, South.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Imperial County, South.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison-Imperial County, South deposited in the State Treasury, are
hereby continuously appropriated to the State Public Works Board on
behalf of the Department of Corrections for the purpose of acquiring
and constructing or refinancing the prison facility so financed.
   The sum of two hundred fourteen million four hundred thousand
dollars (4,400,000) shall be available for capital outlay for the
California State Prison-Imperial County, South from funds derived
from lease-purchase financing methods.  This amount shall be
available as necessary for site acquisition, site studies, master
planning, architectural programming, schematics, preliminary plans,
working drawings, construction, and long lead and equipment items.
   (c) The State Public Works Board may authorize the augmentation of
the cost of the construction of the projects set forth in this
section pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to pay the costs of financing, including the
payment of interest during construction of the project, any
additional amount as may be authorized by the board to pay the cost
of financing a reserve fund, and the cost of issuance of permanent
financing for the project.  This additional amount may include
interest during acquisition or construction of the facility, interest
payable on any interim loan for the facility from the Pooled Money
Investment Account pursuant to Section 16312, a reasonably required
reserve fund, and the costs of issuance of permanent financing of the
facility.



15819.24.  (a) It is the intention of the Legislature in enabling
the construction of the California State Prison-Fresno County, as
authorized by Chapter 981 of the Statutes of 1990, to ensure that the
City of Coalinga and the Department of Corrections actively endeavor
to encourage the development of affordable accommodations and
transportation at locations and times to afford access to all
visitors of prisoners, including the infirm, the aged, the poor, and
children.
   (b) The necessary funding for the construction of the California
State Prison-Fresno County, authorized by Chapter 981 of the Statutes
of 1990, may be obtained through lease-purchase financing
arrangements.  Sections 15819.1 to 15819.13, inclusive, and Section
15819.15, shall apply for this purpose, provided that the following
apply:
   (1) "Prison facility," as used in Section 15819.1, includes the
California State Prison-Fresno County.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Fresno County.
   (c) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison-Fresno County, deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   The sum of two hundred seven million three hundred thousand
dollars (7,300,000) shall be available for capital outlay for the
California State Prison-Fresno County from funds derived from
lease-purchase financing methods. This amount shall be available as
necessary for site acquisition, site studies and suitability reports,
environmental studies, master planning, architectural programming,
schematics, preliminary plans, working drawings, construction, and
long lead and equipment items.
   (d) The State Public Works Board may authorize the augmentation of
the cost of the construction of the projects set forth in this
section pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to pay the costs of financing, including the
payment of interest during construction of the project, any
additional amount as may be authorized by the board to pay the cost
of financing a reserve fund, and the cost of issuance of permanent
financing for the project.  This additional amount may include
interest during acquisition or construction of the facility, interest
payable on any interim loan for the facility from the Pooled Money
Investment Account pursuant to Section 16312, a reasonably required
reserve fund, and the costs of issuance of permanent financing of the
facility.


15819.25.  (a) The necessary funding for the construction of the
California State Prison-Monterey County (Soledad) authorized by
Article 5.5 (commencing with Section 2045.10) of Title 1 of Part 3 of
the Penal Code may be obtained through lease-purchase financing
arrangements.  Sections 15819.1 to 15819.13, inclusive, and Section
15819.15 shall apply for this purpose, provided that the following
apply:
   (1) "Prison facility," as used in Section 15819.1, includes the
California State Prison-Monterey County (Soledad).
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Monterey County (Soledad).
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison-Monterey County (Soledad) deposited in the State Treasury, are
hereby continuously appropriated to the State Public Works Board on
behalf of the Department of Corrections for the purpose of acquiring
and constructing or refinancing the prison facility so financed.
   The sum of two hundred six million eight hundred thousand dollars
(6,800,000) shall be available for capital outlay for the
California State Prison-Monterey County (Soledad) from funds derived
from lease-purchase financing methods.  This amount shall be
available, as necessary, for the purposes of site studies and
suitability reports, site acquisition, environmental studies, master
planning, architectural programming, schematics, preliminary plans,
working drawings, construction, long lead and equipment items, and
mitigation costs of school districts if the mitigation item is an
allowable cost for any program under the jurisdiction of the State
Allocation Board.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amount necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a reasonably required debt service reserve fund, and the
cost of issuance of permanent financing for the project.  This
additional amount may include interest payable on any interim loan
for the facility from the General Fund or the Pooled Money Investment
Account pursuant to Section 16312.



15819.26.  (a) The necessary funding for the construction of the
California State Prison - Lassen County (Susanville) authorized by
Section 2 of Chapter 981 of the Statutes of 1990, as amended by
Section 37 of this act, may be obtained through lease-purchase
financing arrangements.  Sections 15819.1 to 15819.13, inclusive, and
Section 15819.15 shall apply for this purpose, provided that the
following applies:
   (1) "Prison facility," as used in Section 15819.1, includes the
California State Prison-Lassen County (Susanville).
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State Prison
- Lassen County (Susanville).
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State
Prison-Lassen County (Susanville) deposited in the State Treasury,
are hereby continuously appropriated to the State Public Works Board
on behalf of the Department of Corrections for the purpose of
acquiring and constructing or refinancing the prison facility so
financed.
   Funds so appropriated shall be available as necessary for the
purposes of site acquisition, site studies, master planning,
architectural programming, schematics, preliminary plans, working
drawings, construction, long lead and equipment items and mitigation
costs of local government and school districts.
   The sum of two hundred twenty-eight million dollars (8,000,000)
shall be available for capital outlay for the California State
Prison-Lassen County (Susanville) from funds derived from
lease-purchase financing methods.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund or the Pooled Money Investment Account pursuant to
Section 16312.



15819.27.  (a) The necessary funding for the construction of the
prison facility authorized by Section 3 of Chapter 981 of the
Statutes of 1990 may be obtained through lease-purchase financing
arrangements.  Sections 15819.1 to 15819.13, inclusive, and Section
15819.15 shall apply for this purpose, provided that the following
also applies:
   (1) "Prison facility," as used in Section 15819.1 includes the
California State Prison-Madera County.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the prison facility
authorized by Section 3 of Chapter 981 of the Statutes of 1990.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the prison facility authorized
by Section 3 of Chapter 981 of the Statutes of 1990 deposited in the
State Treasury, are hereby continuously appropriated to the State
Public Works Board on behalf of the Department of Corrections for the
purpose of acquiring and constructing or refinancing the prison
facility so financed.
   Funds so appropriated shall be available as necessary for the
purposes of site acquisition, site studies, master planning,
architectural programming, schematics, preliminary plans, working
drawings, construction, long lead and equipment items, and mitigation
costs of school districts if the mitigation item is an allowable
cost for any program under the jurisdiction of the State Allocation
Board.
   The sum of one hundred fifty-two million dollars (2,000,000)
shall be available for capital outlay for the prison facility
authorized by Section 3 of Chapter 981 of the Statutes of 1990 from
funds derived from lease-purchase financing methods.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund or the Pooled Money Investment Account pursuant to
Section 16312.



15819.28.  (a) The necessary funding for the construction of the
California State Prison-Kings County at Corcoran II authorized by
Section 1 of the act enacting this section may be obtained through
lease-purchase financing arrangements.  Sections 15819.1 to 15819.13,
inclusive, and Section 15819.15 shall apply and for this purpose the
following shall apply:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Kings County at Corcoran II.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Kings County at Corcoran II.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State Prison in
Kings County at Corcoran II deposited in the State Treasury, are
hereby continuously appropriated to the State Public Works Board on
behalf of the Department of Corrections for the purpose of acquiring
and constructing or refinancing the prison facility so financed.
   The sum of two hundred seventy-six million five hundred thousand
dollars (6,500,000) shall be available for capital outlay for the
California State Prison-Kings County at Corcoran II from funds
derived from lease-purchase financing methods.
   Funds so appropriated shall be available as necessary for the
purposes of site acquisition, site studies and suitability reports,
environmental studies, master planning, architectural programming,
schematics, preliminary plans, working drawings, construction, long
lead and equipment items.  A maximum of four million dollars
(,000,000) of these funds may be available for mitigation costs of
local government and school districts.  Funds shall also be available
for the construction of a 24-bed expansion to the acute care
hospital on the grounds of the California State Prison-Corcoran.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the cost of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund or the Pooled Money Investment Account pursuant to
Section 16312.



15819.29.  (a) The necessary funding for the construction of the
California State Prison-Kern County at Delano II authorized by
Section 3 of the act enacting this section may be obtained through
lease-purchase financing arrangements.  Sections 15819.1 to 15819.13,
inclusive, and Section 15819.15 shall apply for this purpose
provided that the following applies:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Kern County at Delano II.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Kern County at Delano II.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State Prison-Kern
County at Delano II deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   The sum of two hundred forty-three million five hundred thousand
dollars (3,500,000) shall be available for capital outlay for the
California State Prison-Kern County at Delano II from funds derived
from lease-purchase financing methods.
   Funds so appropriated shall be available as necessary for the
purposes of site acquisition, site studies and suitability reports,
environmental studies, master planning, architectural programming,
schematics, preliminary plans, working drawings, construction, long
lead and equipment items.  A maximum of four million dollars
(,000,000) of the funds may be available for mitigation costs of
local government and school districts.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund or the Pooled Money Investment Account pursuant to
Section 16312.



15819.295.  (a) Notwithstanding Section 15819.29, the necessary
funding for the construction of the California State Prison-Kern
County at Delano II authorized by Section 1 of the act enacting this
section may be obtained through lease-purchase financing
arrangements.  Sections 15819.1 to 15819.13, inclusive, and Section
15819.15 shall apply for this purpose provided that the following
applies:
   (1) "Prison facility" as used in Section 15819.1 includes the
California State Prison-Kern County at Delano II.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the California State
Prison-Kern County at Delano II.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the California State Prison-Kern
County at Delano II deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   The sum of three hundred eleven million five hundred thousand
dollars (1,500,000) shall be available for capital outlay for the
California State Prison-Kern County at Delano II from funds derived
from lease-purchase financing methods.
   A maximum of four million dollars (,000,000) of the funds may be
available for mitigation costs of local government and school
districts.
   (c) California State Prison-Kern County at Delano II shall not be
occupied until the Director of the Department of Finance finds and
reports to the Legislature that the following has occurred:
   The department has activated or made available a total of 9,000
in-prison therapeutic drug treatment slots or similar modalities.
   (d) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund, the Pooled Money Investment Account pursuant to
Section 16312, or other interim financing programs.



15819.30.  (a) The necessary funding for the construction of the
Secure Substance Abuse Treatment Facility authorized by Section 5 of
the act enacting this section may be obtained through lease-purchase
financing arrangements.  Sections 15819.1 to 15819.13, inclusive, and
Section 15819.15 shall apply for this purpose provided that the
following apply:
   (1) "Prison facility" as used in Section 15819.1 includes the
Secure Substance Abuse Treatment Facility.
   (2) Notwithstanding the limitation imposed by Section 15819.3
regarding the amount of bonds to be issued for construction,
acquisition, and financing of prison facilities, the State Public
Works Board may issue additional bonds in order to pay the costs of
acquiring and constructing or refinancing the Secure Substance Abuse
Treatment Facility.
   (b) Notwithstanding Section 13340, funds derived from the
lease-purchase financing methods for the Secure Substance Abuse
Treatment Facility deposited in the State Treasury, are hereby
continuously appropriated to the State Public Works Board on behalf
of the Department of Corrections for the purpose of acquiring and
constructing or refinancing the prison facility so financed.
   The sum of ninety-three million five hundred thousand dollars
(,500,000) shall be available for capital outlay for the Secure
Substance Abuse Treatment Facility from funds derived from
lease-purchase financing methods.
   Funds so appropriated shall be available as necessary for the
purposes of site acquisition, site studies and suitability reports,
environmental studies, master planning, architectural programming,
schematics, preliminary plans, working drawings, construction, long
lead and equipment items.  A maximum of two million dollars
(,000,000) of the funds may be available for mitigation costs of
local government and school districts.
   (c) The State Public Works Board may authorize the augmentation of
the cost of construction of the project set forth in this section
pursuant to the board's authority under Section 13332.11.  In
addition, the State Public Works Board may authorize any additional
amounts necessary to establish a reasonable construction reserve and
to pay the costs of financing, including the payment of interest
during acquisition or construction of the project, the cost of
financing a debt service reserve fund, and the cost of issuance of
permanent financing for the project.  This additional amount may
include interest payable on any interim loan for the facility from
the General Fund or the Pooled Money Investment Account pursuant to
Section 16312.