7100-7111

PENAL CODE
SECTION 7100-7111




7100.  This chapter shall be known and may be cited as the New
Prison Construction Bond Act of 1981.



7101.  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 such series.




7102.  There is in the State Treasury the New Prison Construction
Fund, which fund is hereby created.



7103.  The New Prison Construction Committee is hereby created. The
committee shall consist of the Controller, the State Treasurer, and
the Director of Finance. Such committee shall be the "committee," as
that term is used in the State General Obligation Bond Law.



7104.  The committee is hereby authorized and empowered to create a
debt or debts, liability or liabilities, of the State of California,
in the aggregate of four hundred ninety-five million dollars
($495,000,000), in the manner provided in this chapter. Such 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 7106.



7105.  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 State Treasurer to sell all or any part of the bonds
herein authorized at such time or times as may be fixed by the State
Treasurer.



7106.  The moneys in the fund shall be used for the construction,
renovation, remodeling, and deferred maintenance of state
correctional facilities.


7106.5.  The moneys in the fund may be used for construction of
joint use correctional facilities housing county and state or federal
prisoners or any combination thereof in proportion to the state
benefit.


7107.  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 principal and interest thereon.
   There shall be collected annually in the same manner and at the
same time as other state revenue is collected such a sum, in addition
to the ordinary revenues of the state, as shall be required to pay
the principal and interest on such bonds as herein provided, and it
is hereby made the duty of all officers charged by law with any duty
in regard to the collection of such revenue to do and perform each
and every act which shall be necessary to collect such additional
sum.
   All money deposited in the fund which has been derived from
premium and accrued interest on bonds sold shall be available for
transfer to the General Fund as a credit to expenditures for bond
interest.
   All money deposited in the fund pursuant to any provision of law
requiring repayments to the state which are 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
such money shall be applied as a reimbursement to the General Fund on
account of principal and interest on the bonds which has been paid
from the General Fund.



7108.  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) Such sum annually as will be necessary to pay the principal of
and the interest on the bonds issued and sold pursuant to the
provisions of this chapter.
   (b) Such sum as is necessary to carry out the provisions of
Section 7109, which sum is appropriated without regard to fiscal
years.


7109.  For the purpose of carrying out the provisions of this
chapter, the Director of Finance may by executive order authorize the
withdrawal from the General Fund of an amount or amounts not to
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. 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.
Such 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 Fund.



7110.  All proceeds from the sale of bonds, except those derived
from premiums and accrued interest, shall be available for the
purpose provided in Section 7106 but shall not be available for
transfer to the General Fund to pay principal and interest on bonds.
The money in the fund may be expended only as herein provided.




7111.  Money in the fund may only be expended for projects specified
in this chapter pursuant to appropriations by the Legislature.