Bill Text: CA AB1588 | 2015-2016 | Regular Session | Enrolled
Bill Title: Water and Wastewater Loan and Grant Program.
Spectrum: Moderate Partisan Bill (Republican 7-2)
Status: (Vetoed) 2016-09-22 - Vetoed by Governor. [AB1588 Detail]
Download: California-2015-AB1588-Enrolled.html
BILL NUMBER: AB 1588 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 17, 2016
PASSED THE ASSEMBLY AUGUST 23, 2016
AMENDED IN SENATE AUGUST 16, 2016
AMENDED IN SENATE JUNE 15, 2016
AMENDED IN ASSEMBLY MAY 31, 2016
AMENDED IN ASSEMBLY MARCH 16, 2016
AMENDED IN ASSEMBLY MARCH 9, 2016
AMENDED IN ASSEMBLY FEBRUARY 29, 2016
INTRODUCED BY Assembly Members Mathis and Alejo
(Coauthors: Assembly Members Arambula, Chávez, Lackey, and Olsen)
(Coauthors: Senators Berryhill, Cannella, and Vidak)
JANUARY 6, 2016
An act to add Chapter 6.6 (commencing with Section 13486) to
Division 7 of the Water Code, relating to water, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 1588, Mathis. Water and Wastewater Loan and Grant Program.
Existing law, the Safe Drinking Water State Revolving Fund Law of
1997, establishes the Safe Drinking Water State Revolving Fund to
provide grants or revolving fund loans for the design and
construction of projects for public water systems that will enable
those systems to meet safe drinking water standards.
This bill would, to the extent funding is made available,
authorize the State Water Resources Control Board to establish a
program to provide funding to counties and qualified nonprofit
organizations to award low-interest loans and grants to eligible
applicants for specified purposes relating to drinking water and
wastewater treatment. This bill would authorize a county or qualified
nonprofit organization to apply to the board for a grant to award
loans or grants, or both, to residents of the county, as prescribed.
To fund this program, the bill would authorize the board to use
funding appropriated in an item of the Budget Act of 2016 from the
State Water Quality Control Fund, or to use any other funding source
consistent with the purposes of the program. By expanding the
purposes of an appropriation, the bill would make an appropriation.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 6.6 (commencing with Section 13486) is added to
Division 7 of the Water Code, to read:
CHAPTER 6.6. WATER AND WASTEWATER LOAN AND GRANT PROGRAM
13486. (a) To the extent the funding is made available, the board
may establish a program in accordance with this chapter to provide
funding to counties and qualified nonprofit organizations to award
low-interest loans and grants to eligible applicants for any of the
following purposes:
(1) Extending or connecting service lines from a water or
wastewater system to the applicant's residence or plumbing.
(2) Paying reasonable charges or fees for connecting to a water or
wastewater system.
(3) Paying costs to close abandoned septic tanks and water wells,
as necessary, to protect health and safety as required by local or
state law.
(4) Deepening an existing groundwater well.
(5) Improving an existing groundwater well, including associated
equipment.
(6) Installing a water treatment system if the groundwater exceeds
a primary or secondary drinking water standard, as defined in
Section 116275 of the Health and Safety Code.
(b) The board may adopt any guidelines it determines are necessary
to carry out the purposes of this chapter. A guideline adopted
pursuant to this subdivision shall not be subject to the rulemaking
requirements of Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code.
(c) As used in this chapter, "qualified nonprofit organization"
means an organization with experience in providing financial and
technical assistance to disadvantaged communities that is qualified
to operate in California and qualified for exempt status under
Section 501(c)(3) of the Internal Revenue Code.
13487. (a) To fund the program authorized in this chapter, the
board may use funding appropriated in Item 3940-101-0679 in the
Budget Act of 2016 (Chapter 23 of the Statutes of 2016), or any other
funding source that is consistent with the purposes of this chapter.
(b) The board shall use reasonable and feasible efforts to secure
local matching funds for the purposes of funding projects pursuant to
this chapter.
13487.5. (a) A county or qualified nonprofit organization may
apply to the board for a grant to award loans or grants, or both, to
residents of the county in accordance with this chapter.
(b) A county or qualified nonprofit organization that receives
funding pursuant to this chapter shall annually provide the following
information to the board:
(1) The number of loans and grants awarded.
(2) The types of projects funded.
(3) Project costs.
(4) Whether there is demand for additional funding.
(c) The board may advance funds pursuant to an agreement with a
county or qualified nonprofit organization in accordance with this
chapter. Section 11019 of the Government Code does not apply to an
advance made pursuant to this subdivision.
13488. (a) An eligible applicant for a loan shall meet all of the
following criteria:
(1) Have a household income below the statewide median household
income.
(2) Have an ownership interest in the residence.
(3) Be unable to obtain financial assistance at reasonable terms
and conditions from private lenders and lack the personal resources
to undertake these improvements.
(4) Demonstrate an ability to repay the loan. This requirement may
be satisfied by having another party join the application as a
cosigner.
(b) Any loan granted shall be secured by a mortgage on the
residence and repaid within 20 years in accordance with terms
established by the board. The interest rate on the loan shall not
exceed 1 percent. While any balance on the loan is outstanding, a
loan recipient shall furnish evidence of and continually maintain
homeowner's insurance on the security residence to protect the state'
s interest in the residence.
(c) The county or qualified nonprofit organization may enter into
a contract with a private financial institution to provide loans
consistent with the purposes of this chapter.
13489. (a) An eligible applicant for a grant shall meet both of
the following criteria:
(1) Have a household income that is 80 percent or less of the
statewide median household income.
(2) Have an ownership or leasehold interest in the residence.
(3) Be unable to obtain financial assistance at reasonable terms
and conditions from private lenders and lack the personal resources
to undertake these improvements.
(b) A grant recipient shall repay to the county or qualified
nonprofit organization the grant amount in full if that recipient
sells the residence less than five years from the date that the grant
agreement was signed.
(c) A grant recipient shall repay to the county or qualified
nonprofit organization any unused grant funds.
