Bill Text: CA AB1292 | 2011-2012 | Regular Session | Chaptered
Bill Title: Safe Drinking Water State Revolving Fund: revenue bonds.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Passed) 2011-10-07 - Chaptered by Secretary of State - Chapter 518, Statutes of 2011. [AB1292 Detail]
Download: California-2011-AB1292-Chaptered.html
BILL NUMBER: AB 1292 CHAPTERED
BILL TEXT
CHAPTER 518
FILED WITH SECRETARY OF STATE OCTOBER 7, 2011
APPROVED BY GOVERNOR OCTOBER 7, 2011
PASSED THE SENATE AUGUST 31, 2011
PASSED THE ASSEMBLY SEPTEMBER 6, 2011
AMENDED IN SENATE JULY 12, 2011
AMENDED IN SENATE JUNE 28, 2011
AMENDED IN ASSEMBLY MAY 4, 2011
AMENDED IN ASSEMBLY APRIL 7, 2011
INTRODUCED BY Assembly Member Roger Hernández
(Coauthors: Assembly Members Perea, V. Manuel Pérez, and Solorio)
FEBRUARY 18, 2011
An act to amend Section 63024 of, to add Section 63024.5 to, and
to add Article 6.3 (commencing with Section 63048.55) to Chapter 2 of
Division 1 of Title 6.7 of, the Government Code, and to amend
Sections 116760.30 and 116760.40 of the Health and Safety Code,
relating to drinking water, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1292, Roger Hernández. Safe Drinking Water State Revolving
Fund: revenue bonds.
The Bergeson-Peace Infrastructure and Economic Development Bank
Act establishes the California Infrastructure and Economic
Development Bank for the purpose of funding specified types of
infrastructure development projects, including public development
facilities, that are defined to include sewage collection and
treatment facilities and water treatment and distribution facilities.
The act authorizes the executive director of the bank to contract
with specified agencies to enable the bank to properly perform its
duties and authorizes the bank to issue revenue bonds for prescribed
purposes.
This bill would specify that the executive director may contract
with those agencies for technical services, and would provide that,
where a state agency is authorized under state law to request that
the bank issue bonds on its behalf, the agency may request, and the
bank may issue, the bonds for the purpose authorized by state law and
to fund any necessary reserves, capitalized interest, and costs of
issuance associated with the bonds.
Existing law, the Safe Drinking Water State Revolving Fund Law,
establishes the Safe Drinking Water State Revolving Fund and
continuously appropriates money in the fund to the State Department
of Public Health to finance the design and construction of projects
for public water systems that will enable suppliers to meet safe
drinking water standards.
This bill would authorize the bank to issue taxable or tax-exempt
revenue bonds for deposit into the Safe Drinking Water State
Revolving Fund in accordance with prescribed provisions. By providing
for the deposit of additional funds into a continuously appropriated
fund, the bill would make an appropriation.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 63024 of the Government Code is amended to
read:
63024. The executive director may contract for technical services
with the Department of Finance, the State Department of Health Care
Services, the State Department of Public Health, the Department of
Transportation, the Department of Water Resources, the Department of
Resources Recycling and Recovery, the State Water Resources Control
Board, the Governor's Office of Planning and Research, and any other
necessary agencies, persons, or firms to enable the bank to properly
perform the duties imposed by this division.
SEC. 2. Section 63024.5 is added to the Government Code, to read:
63024.5. Where a state agency is authorized under state law to
request that the bank issue bonds on its behalf, the agency may
request, and the bank may issue, the bonds for the purpose authorized
by state law and to fund any necessary reserves, capitalized
interest, and costs of issuance associated with the bonds.
SEC. 3. Article 6.3 (commencing with Section 63048.55) is added to
Chapter 2 of Division 1 of Title 6.7 of the Government Code, to
read:
Article 6.3. Safe Drinking Water State Revolving Fund
63048.55. For the purposes of this article, the following terms
have the following meanings:
(a) "Department" means the State Department of Public Health.
(b) "Revolving fund" means the Safe Drinking Water State Revolving
Fund established pursuant to Section 116760.30 of the Health and
Safety Code.
63048.56. Notwithstanding any other law, Article 3 (commencing
with Section 63040), Article 4 (commencing with Section 63042), and
Article 5 (commencing with Section 63043) shall not apply to any
financing provided by the bank to, or at the request of, the
department in connection with the revolving fund.
63048.57. (a) The bank may issue taxable or tax-exempt revenue
bonds pursuant to Chapter 5 (commencing with Section 63070) and
deposit the proceeds from the bonds into the revolving fund or use
the proceeds to refund bonds previously issued under this article.
Bond proceeds may also be used to fund necessary reserves,
capitalized interest, or costs of issuance.
(b) Except as may be provided in the governing documents with
respect to bond anticipation notes, each of the bonds issued under
this article shall, to the extent provided in the governing
documents, be payable from, and secured by, all or a portion of the
revenues in the revolving fund and the assets of the revolving fund,
to the extent the revenues and assets are pledged by the department
for those purposes.
(c) Bonds issued under this article shall not be deemed to
constitute a debt or liability of the state or of any political
subdivision of the state, other than the bank, but shall be payable
solely from the revolving fund and the assets of the revolving fund,
and the security provided by the revolving fund. All bonds issued
under this article shall contain on the face of the bonds a statement
to that effect.
SEC. 4. Section 116760.30 of the Health and Safety Code is amended
to read:
116760.30. (a) There is hereby created in the State Treasury the
Safe Drinking Water State Revolving Fund for the purpose of
implementing this chapter, and, notwithstanding Section 13340 of the
Government Code, the fund is hereby continuously appropriated,
without regard to fiscal years, to the department to provide, from
moneys available for this purpose, grants or revolving fund loans for
the design and construction of projects for public water systems
that will enable suppliers to meet safe drinking water standards. The
department shall be responsible for administering the fund.
(b) Notwithstanding Section 10231.5 of the Government Code, the
department shall report at least once every two years to the policy
and budget committees of the Legislature on the implementation of
this chapter and expenditures from the fund. The report shall
describe the numbers and types of projects funded, the reduction in
risks to public health from contaminants in drinking water provided
through the funding of the projects, and the criteria used by the
department to determine funding priorities. Commencing with reports
submitted on or after January 1, 2013, the report shall include the
results of the United States Environmental Protection Agency's most
recent survey of the infrastructure needs of California's public
water systems, the amount of money available through the fund to
finance those needs, the total dollar amount of all funding
agreements executed pursuant to this chapter since the date of the
previous report, the fund utilization rate, the amount of
unliquidated obligations, and the total dollar amount paid to funding
recipients since the previous report.
(c) Notwithstanding any other law, the Controller may use the
moneys in the Safe Drinking Water State Revolving Fund for loans to
the General Fund as provided in Sections 16310 and 16381 of the
Government Code. However, interest shall be paid on all moneys loaned
to the General Fund from the Safe Drinking Water State Revolving
Fund. Interest payable shall be computed at a rate determined by the
Pooled Money Investment Board to be the current earning rate of the
fund from which loaned. This subdivision does not authorize any
transfer that will interfere with the carrying out of the object for
which the Safe Drinking Water State Revolving Fund was created.
SEC. 5. Section 116760.40 of the Health and Safety Code is amended
to read:
116760.40. The department may undertake any of the following
actions to implement the Safe Drinking Water State Revolving Fund:
(a) Enter into agreements with the federal government for federal
contributions to the fund.
(b) Accept federal contributions to the fund.
(c) Use moneys in the fund for the purposes permitted by the
federal act.
(d) Provide for the deposit of matching funds and other available
and necessary moneys into the fund.
(e) Make requests, on behalf of the state, for deposit into the
fund of available federal moneys under the federal act.
(f) Determine, on behalf of the state, that public water systems
that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
(g) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
(h) Take additional incidental action as may be appropriate for
adequate administration and operation of the fund.
(i) Enter into an agreement with, and accept matching funds from,
a public water system. A public water system that seeks to enter into
an agreement with the department and provide matching funds pursuant
to this subdivision shall provide to the department evidence of the
availability of those funds in the form of a written resolution, or
equivalent document, from the public water system before it requests
a preliminary loan commitment.
(j) Charge public water systems that elect to provide matching
funds a fee to cover the actual cost of obtaining the federal funds
pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
300j-12) and to process the loan application. The fee shall be waived
by the department if sufficient funds to cover those costs are
available from other sources.
(k) Use money returned to the fund under Section 116761.85 and any
other source of matching funds, if not prohibited by statute, as
matching funds for the federal administrative allowance under Section
1452(g) of the federal act (42 U.S.C. Sec. 300j-12).
( l ) Establish separate accounts or subaccounts as
required or allowed in the federal act and related guidance, for
funds to be used for administration of the fund and other purposes.
Within the fund the department shall establish the following
accounts, including, but not limited to:
(1) A fund administration account for state expenses related to
administration of the fund pursuant to Section 1452(g)(2) of the
federal act.
(2) A water system reliability account for department expenses
pursuant to Section 1452(g)(2)(A), (B), (C), or (D) of the federal
act.
(3) A source protection account for state expenses pursuant to
Section 1452(k) of the federal act.
(4) A small system technical assistance account for department
expenses pursuant to Section 1452(g)(2) of the federal act.
(5) A state revolving loan account pursuant to Section 1452(a)(2)
of the federal act.
(6) A wellhead protection account established pursuant to Section
1452(a)(2) of the federal act.
(m) Deposit federal funds for administration and other purposes
into separate accounts or subaccounts as allowed by the federal act.
(n) Determine, on behalf of the state, whether sufficient progress
is being made toward compliance with the enforceable deadlines,
goals, and requirements of the federal act and the California Safe
Drinking Water Act, Chapter 4 (commencing with Section 116270).
(o) To the extent permitted under federal law, including, but not
limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use any
and all amounts deposited in the fund, including, but not limited
to, loan repayments and interest earned on the loans, as a source of
reserve and security for the payment of principal and interest on
revenue bonds, the proceeds of which are deposited in the fund.
(p) Request the Infrastructure and Economic Development Bank
(I-Bank), established under Chapter 2 (commencing with Section 63021)
of Division 1 of Title 6.7 of the Government Code, to issue revenue
bonds, enter into agreements with the I-Bank, and take all other
actions necessary or convenient for the issuance and sale of revenue
bonds pursuant to Article 6.3 (commencing with Section 63048.55) of
Chapter 2 of Division 1 of Title 6.7 of the Government Code. The
purpose of the bonds is to augment the fund.
