How will the construction of reentry facilities be funded?
The secure reentry program facilities authorized by AB 900 will be funded by tax-exempt lease-revenue bonds issued by the State Public Works Board (PWB). In funding a project through lease-revenue bonds, the CDCR typically leases a state-owned site to the PWB and constructs the project as PWB’s agent. The completed facility, together with the site, is leased back to the CDCR for a rental amount consistent with the fair rental value of the reentry facility and not less than the bond debt and associated administrative expenses. A lease term of 25 years is typical. Additional information concerning lease-revenue bond funding can be found in the State Administrative Manual at http://sam.dgs.ca.gov.
