Revenue bond financing of prison construction: Phase III.

Existing law authorizes the Department of Corrections and Rehabilitation, participating counties, and the State Public Works Board (SPWB) to acquire, design, and construct local jail facilities approved by the Board of State and Community Corrections. Existing law authorizes the SPWB to issue revenue bonds, notes, or bond anticipation notes in specified amounts to finance the acquisition, design, or construction, and a reasonable construction reserve, of approved local jail facilities, as specified. This bill would require funds dispersed to counties pursuant to Phase I of the program to be returned to the department by August 1, 2013, if the funds have not been encumbered and if specified conditions, including identification and purchase of the jail site, have not been met by June 1, 2013. The bill would appropriate the funds returned to the department to be used to fund county facilities and would give priority for those awards to counties that have met the specified criteria.