Bill Text: CA AB1510 | 2023-2024 | Regular Session | Amended

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Bill Title: Fighting Fentanyl Bond Act of 2024.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2024-07-01 - In committee: Referred to suspense file. [AB1510 Detail]

Download: California-2023-AB1510-Amended.html

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Amended  IN  Senate  July 13, 2023

Amended  IN  Senate  July 10, 2023

Amended  IN  Senate  June 19, 2023

Amended  IN  Assembly  March 28, 2023

Amended  IN  Assembly  March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1510

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Introduced by Assembly Member Members Jones-Sawyer and Alanis
(Coauthor: Assembly Member Alanis)(Coauthor: Senator Rubio)

February 17, 2023

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An act to add Division 121 (commencing with Section 151050) to the Health and Safety Code, relating to substance use, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and by providing for the handling and disposition of those funds. funds, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

AB 1510, as amended, Jones-Sawyer. Fighting Fentanyl Bond Act of 2024.

Existing law sets forth various programs relating to opioid overdose prevention and treatment, including, among others, standing orders for the distribution of an opioid antagonist, a naloxone grant program, and a grant program to reduce fentanyl overdoses and use throughout the state. Existing law prohibits a person from possessing for sale or purchasing for purposes of sale, specified controlled substances, including fentanyl.

This bill would enact the Fighting Fentanyl Bond Act of 2024, which, if adopted, would authorize the issuance, pursuant to the State General Obligation Bond Law, of bonds in the amount of $____, for purposes of financing, among other things, substance use treatment, harm reduction programs, supportive services for students, programs targeting drug trafficking, substance use treatment programs in prisons and juvenile facilities, and recovery housing and transitional housing for previously incarcerated individuals, as specified.

The bill would provide for submission of the bond act to the voters at the November 5, 2024, statewide general election in accordance with specified law.

This bill would declare that it is to take effect immediately as an urgency statute.

Digest Key

Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.

 Division 121 (commencing with Section 151050) is added to the Health and Safety Code, to read:

DIVISION 121. Fighting Fentanyl Bond Act of 2024

CHAPTER  1. General Provisions

151050.

 This division shall be known, and may be cited, as the Fighting Fentanyl Bond Act of 2024.

151052.

 As used in this division, the following terms have the following meanings:

(a) “Committee” means the Fighting Fentanyl Finance Committee created pursuant to Section 151070.

(b) “Fund” means the Fighting Fentanyl Fund of 2024 created pursuant to Section 151054.

151054.

 The Fighting Fentanyl Fund of 2024 is hereby created within the State Treasury. The proceeds of bonds, exclusive of refunding bonds issued pursuant to Section 151082, shall be deposited in the Fighting Fentanyl Fund of 2024.

151056.

 (a) The State Auditor shall, on or before January 1, 2030, conduct an audit of each program funded by this division, in order to assess the success and effectiveness of each program, and shall submit a report to the Legislature containing the findings of that audit.

(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

CHAPTER  2. Public Health Interventions

151058.

 Of the proceeds of bonds issued and sold pursuant to this division, the sum of ____ dollars ($___) shall be available, upon appropriation by the Legislature, for the purposes of this chapter, to be allocated as follows:

(a) The sum of ____ dollars ($___) two billion dollars ($2,000,000,000) shall be available to the State Department of Health Care Services to fund and expand programs that improve access to and availability of substance use treatment, including medication assisted treatment, inpatient and outpatient treatment, voluntary treatment, psychosocial treatment, and implementation of “hub and spoke model” health care networks to support primary care physicians.

(b) The sum of ____ dollars ($___) four hundred million dollars ($400,000,000) shall be available to the State Department of Public Health to fund and expand harm reduction programs, including those that increase community awareness of the risks associated with recreational drug use, demonstrate how to utilize safe-use services such as fentanyl test kits and syringe services programs, and demonstrate how to identify and respond to overdoses, including how to administer a federally approved opioid overdose reversal medication and cardiopulmonary resuscitation.

(c) The sum of ____ dollars ($___) shall be available to the State Department of Public Health to fund and expand preventative programs and services that improve access to and availability of fentanyl test kits and safe use supplies.

CHAPTER  3. Research and Drug Crises Anticipation

151060.

 Of the proceeds of bonds issued and sold pursuant to this division, the sum of ____ dollars ($___) one hundred million dollars ($100,000,000) shall be available, upon appropriation by the Legislature, to the State Department of Public Health to fund and expand programs that monitor and research emerging drugs and drug-related public health crises, including xylazine, more commonly known as “tranq,” in order to anticipate effective public health solutions and strategies as soon as possible.

CHAPTER  4. Education and Awareness

151062.

 Of the proceeds of bonds issued and sold pursuant to this division, the sum of ____ dollars ($___) two billion dollars ($2,000,000,000) shall be available, upon appropriation by the Legislature, for the purposes of this chapter, to be allocated as follows:

(a) The sum of ____ dollars ($___) shall be available to the State Department of Education to fund and expand programs that use research based approaches to reduce the stigma surrounding substance use, including opioid use, disorders, and educate pupils in grades 9 to 12, inclusive, on the risks associated with recreational drug use, strategies used to identify high-risk situations associated with recreational drug use, and safe recreational drug use practices.

(b) The sum of ____ dollars ($___) shall be available to the State Department of Education to fund and expand programs that supply local educational agencies with a federally approved opioid overdose reversal medication and fentanyl testing kits and train staff on how to utilize those tools.

(c) The sum of ____ dollars ($___) shall be available to the State Department of Education to fund and expand access within schools to supportive services for pupils that address the underlying causes of substance use disorder, including psycho-social supports such as licensed counselors, therapists, and psychologists.

CHAPTER  5. Focused Deterrence and Violence Reduction

151064.

 Of the proceeds of bonds issued and sold pursuant to this division, the sum of ____ dollars ($___) five hundred million dollars ($500,000,000) shall be available, upon appropriation by the Legislature, for the purposes of this chapter, to be allocated as follows:

(a) The sum of ____ dollars ($___) shall be available to the Department of Justice to fund and expand programs that identify and target high-level drug traffickers and dealers.

(b) The sum of ____ dollars ($___) shall be available to the Department of Corrections and Rehabilitation to fund and expand integrated substance use treatment programs in prisons and juvenile facilities, including medication assisted treatment, access to addiction medicine physicians, and access to associated behavioral health services.

(c) The sum of ____ dollars ($___) shall be available to the Department of Corrections and Rehabilitation to fund and expand access to and availability of recovery housing and transitional housing for previously incarcerated individuals undergoing substance use treatment.

CHAPTER  6. Fiscal Provisions

151066.

 (a) Bonds in the total amount of ____ dollars ($___), exclusive of refunding bonds issued pursuant to Section 151082, or so much thereof as is necessary as determined by the committee, are hereby authorized to be issued and sold for carrying out the purposes expressed in this division and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. All bonds herein authorized that have been duly issued, sold, The bonds, when sold, issued, and delivered as provided herein herein, shall constitute a valid and binding general obligations of the state, obligation of the State of California, and the full faith and credit of the state State of California is hereby pledged for the punctual payment of both principal of and interest on those bonds when due. the bonds as the principal and interest become due and payable.

(b) The Treasurer shall issue and sell bonds authorized in subdivision (a) in the amount determined by the committee to be necessary or desirable pursuant to Section 151072. The bonds shall be issued and sold upon the terms and conditions specified in a resolution adopted by the committee pursuant to Section 16731 of the Government Code.

151068.

 The bonds authorized by this division 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), except subdivisions (a) and (b) of Section 16727 of the Government Code, and all of the provisions of that law as amended from time to time apply to the bonds and to this division, except as provided in Section 151084, and are hereby incorporated in this division as though set forth in full in this division.

151070.

 (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 chapter, the Fighting Fentanyl Finance Committee is hereby created. For purposes of this chapter, the Fighting Fentanyl Finance Committee is “the committee” as that term is used in the State General Obligation Bond Law. The committee consists of the Controller, Treasurer, and Director of Finance. Notwithstanding any other law, any member may designate a representative to act as that member in the member’s place for all purposes, as though the member were personally present. The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.

(b) For purposes of the State General Obligation Bond Law, the State Department of Health Care Services is designated the “board” for the purposes of subdivision (a) of Section 151058, the State Department of Public Health is designated the “board” for the purposes of subdivisions (b) and (c) of Section 151058 and Chapter 3 (commencing with Section 151060), the State Department of Education is designated the “board” for the purposes of Chapter 4 (commencing with Section 151062), the Department of Justice is designated the “board” for the purposes of subdivision (a) of Section 151064, and the Department of Corrections and Rehabilitation is designated the “board” for the purposes of subdivisions (b) and (c) of Section 151064.

151072.

 Upon request of the board stating that funds are needed for purposes of this division, the committee shall determine by resolution whether or not it is necessary or desirable to issue and sell bonds, 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 are not required to be sold at any one time. Bonds may bear interest subject to federal income tax.

151074.

 There shall be collected annually, in the same manner and at the same time as other state revenue is collected, a sum of money 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, sufficient a sum in the amount as is required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collections of state the revenues to do or and perform each and every act that is necessary to collect that additional sum.

151076.

 Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund in the State Treasury, for the purposes of this division, an amount that will equal the total of both of the following:

(a) The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this division, as the principal and interest become due and payable.

(b) The sum that is necessary to carry out Section 151080, appropriated without regard to fiscal years.

151078.

 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 purposes of this division. The amount of the request shall not exceed the amount of the unsold bonds that the committee has, by resolution, authorized to be sold, excluding any refunding bonds authorized pursuant to Section 151082, for purposes of this division, less any amount loaned pursuant to this section and not yet repaid and any amount withdrawn from the General Fund pursuant to Section 151080 and not yet returned to the General Fund. The board shall execute any documents as required by the Pooled Money Investment Board to obtain and repay the loan. Any amount loaned shall be deposited in the fund to be allocated by the board in accordance with this division.

151080.

 For purposes of carrying out this division, 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 that the committee has, by resolution, authorized to be sold, excluding any refunding bonds authorized pursuant to Section 151082, for purposes of this division, less any amount loaned pursuant to Section 151078 and not yet repaid and any amount withdrawn from the General Fund pursuant to this section and not yet returned to the General Fund. Any amounts withdrawn shall be deposited in the fund to be allocated by the board in accordance with this division. Any moneys made available under this section shall be returned to the General Fund, plus the interest that the amounts would have earned in the Pooled Money Investment Account, from moneys received from the sale of bonds that would otherwise be deposited in that fund.

151082.

 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. Approval by the electors of voters of the state for the issuance of the bonds described in this division shall constitute approval of any refunding includes the approval of the issuance of any bonds issued to refund bonds originally issued pursuant to this division, including any prior or any previously issued refunding bonds. A Any bond refunded with the proceeds of a refunding bond refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing that refunded bond.

151084.

 Notwithstanding any provisions in the State General Obligation Bond Law, the maturity date of bonds authorized by this division shall not be later than 35 years from the date of each bond. The maturity of each series shall be calculated from the date of issuance of each bond.

151086.

 The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this division 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.

151088.

Notwithstanding any provision of the State General Obligation Bond Law with regard to the proceeds from the sale of bonds authorized by this division that are subject to investment under Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code, the Treasurer may maintain a separate account for investment earnings, may order the payment of those earnings to comply with any rebate requirement applicable under federal law, and may otherwise direct the use and investment of those proceeds so as to maintain the tax-exempt status of tax-exempt bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

151088.

 Notwithstanding any provision of this division or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this division 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 or is otherwise entitled to any federal tax advantage, the Treasurer may maintain separate accounts for the investment of bond proceeds and investment earnings on those proceeds. The Treasurer 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 investment and use of those bond proceeds or earnings required or desirable under federal law 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.

151090.

 (a) Subject to subdivision (b), all moneys derived from premiums and accrued interest on bonds sold pursuant to this division shall be transferred to the General Fund as a credit to expenditures for bond interest.

(b) Amounts derived from premiums may be reserved and used to pay the costs of bond issuance before any transfer to the General Fund.

SEC. 2.

 Section 1 of this act shall become operative upon the adoption by the voters of the Fighting Fentanyl Bond Act of 2024.

SEC. 3.

 Section 1 of this act shall be submitted to the voters at the November 5, 2024, statewide general election in accordance with provisions of the Government Code and the Elections Code governing the submission of a statewide measure to the voters.

SEC. 4.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

In order to respond to the public health emergency caused by fentanyl in a timely manner, to address the dire need for a comprehensive response to substance abuse in California, to prevent further unnecessary fentanyl-related overdoses and deaths, and to anticipate future drug related public health crises, it is necessary that this act take effect immediately.