Bill Text: CA AB2064 | 2017-2018 | Regular Session | Enrolled
Bill Title: Integrated regional water management plans: grants: advanced payment.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Vetoed) 2018-09-28 - Vetoed by Governor. [AB2064 Detail]
Download: California-2017-AB2064-Enrolled.html
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Enrolled
August 31, 2018 |
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Passed
IN
Senate
August 24, 2018 |
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Passed
IN
Assembly
August 29, 2018 |
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Amended
IN
Senate
June 27, 2018 |
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Amended
IN
Senate
June 13, 2018 |
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Amended
IN
Assembly
May 25, 2018 |
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Amended
IN
Assembly
April 02, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 2064 |
| Introduced by Assembly Members Gloria and Weber |
February 07, 2018 |
An act to amend Section 10551 of, and to add Sections 10551.2, 10551.4, 10551.6, and 10551.9 to, the Water Code, relating to water.
LEGISLATIVE COUNSEL'S DIGEST
AB 2064, Gloria.
Integrated regional water management plans: grants: advanced payment.
Existing law, the Integrated Regional Water Management Planning Act, authorizes a regional water management group to prepare and adopt an integrated regional water management plan with specified components relating to water supply and water quality. Existing law provides that an integrated regional water management plan is eligible for funding allocated specifically for implementation of integrated regional water management.
Existing law, until January 1, 2025, requires a regional water management group, within 90 days of notice that a grant has been awarded, to provide the Department of Water Resources with a list of projects to be funded by the grant funds if the project proponent is a nonprofit organization or a disadvantaged community or the project benefits a disadvantaged community. Existing law requires the department, within 60 days of
receiving this project information, to provide advanced payment of 50% of the grant award for those projects that satisfy specified criteria, including that the grant award for the project is less than $1,000,000, and requires the advanced funds to be handled as prescribed, including that the funds are required to be spent within 6 months of the date of receipt unless the department waives this requirement.
The bill, until January 1, 2025, would require the department to provide a project proponent that requests advanced payment and satisfies certain criteria with advanced payment for those projects of $500,000 or 50% of the grant award, whichever is less. The bill would eliminate the requirement that the grant award for the project be less than $1,000,000 to obtain advanced payment. The bill would require a project proponent, upon completion of the first one-half of a project receiving an above-described grant award,
to provide a first one-half project accountability report to the department that reports the completion of objectives for the first one-half of the project and documents the expenditure and use of advanced grant funds. The bill would require the department to provide advanced payment of the remaining grant award for a project that received advanced payment for the first one-half of the project within 60 days of receiving the report if the project meets certain criteria. The bill would require the department to withhold 10% of the grant award as retention proceeds that the department is required to release fully to the project proponent upon verification by the department of project completion. The bill would require a project proponent to submit a final project accountability report to the department upon completion of the project.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 10551 of the Water Code is amended to read:10551.
(a) Within 90 days of notice that a grant for projects included and implemented in an integrated regional water management plan has been awarded, the regional water management group shall provide the department with a list of projects to be funded by the grant funds where the project proponent is a nonprofit organization or a disadvantaged community, or the project benefits a disadvantaged community. The list shall specify how the projects are consistent with the adopted integrated regional water management plan and shall include all of the following information:(1) Descriptive information concerning each project identified.
(2) The names of the entities that will receive the funding for each project, including, but not limited to, an identification as to whether the project proponent or proponents are nonprofit organizations or a disadvantaged community.
(3) The budget of each project.
(4) The anticipated schedule for each project.
(5) The qualifications of the project proponent to manage the project and the finances of the project pursuant to this chapter.
(b) Within 60 days of receiving the project information pursuant to subdivision (a), the department shall provide a project proponent that requests an advanced payment with advanced payment of five hundred thousand
dollars ($500,000) or 50 percent of the grant award, whichever is less, provided that the project satisfies the following criteria:
(1) The project proponent is a nonprofit organization or a disadvantaged community or the project benefits a disadvantaged community.
(2) The project proponent has demonstrated to the department’s satisfaction a need for an advanced payment.
(3) (A) The project proponent has demonstrated to the department’s satisfaction that the project proponent is sufficiently qualified to manage
the project and the finances of the project.
(B) If the department is not satisfied that the project proponent is sufficiently qualified to manage the project and the finances of the project, the department may impose additional requirements on the project proponent, including requiring additional partners to manage the project, the financing, or both.
(c) The department shall not provide advanced payment to a project proponent if the project proponent rejects additional requirements imposed by the department pursuant to subparagraph (B) of paragraph (3) of subdivision (b) or if the department determines that no additional requirements it may impose could make the project proponent sufficiently qualified to manage the project and the finances of the
project.
SEC. 2.
Section 10551.2 is added to the Water Code, to read:10551.2.
Funds advanced pursuant to this chapter shall be handled as follows:(a) The recipient shall place the funds in a noninterest-bearing account until expended.
(b) The funds shall be spent within six months of the date of receipt, unless the department waives this requirement.
(c) The recipient shall, on a quarterly basis, provide an accountability report to the department regarding the expenditure and use of any advanced grant funds that provides, at a minimum, the following information:
(1) An itemization as to how advanced payment funds provided under this chapter have been expended.
(2) A project itemization as to how any remaining advanced payment funds provided under this chapter will be expended over the period specified in subdivision (b).
(3) Whether the funds are placed in a noninterest-bearing account, and if so, the date that occurred and the dates of withdrawals of funds from that account, if applicable.
(4) An evaluation of whether the project is on schedule or not. If the project is behind schedule, the report shall identify what has caused the delay and actions taken or being taken to remedy the delay.
(d) If funds are not
expended, the unused portion of the grant shall be returned to the department within 60 days after project completion or the end of the grant performance period, whichever is earlier.
(e) The department may adopt additional requirements for the recipient regarding the use of the advanced payment to ensure that the funds are used properly, including provisions for random audits and other verifications of the authorized use of funds.
SEC. 3.
Section 10551.4 is added to the Water Code, to read:10551.4.
(a) Upon completion of the first one-half of a project receiving a grant award pursuant to this chapter, the project proponent shall provide a first one-half project accountability report to the department that reports the completion of objectives for the first one-half of the project and documents the expenditure and use of advanced grant funds.(b) Within 60 days of receiving the report pursuant to subdivision (a), the department shall provide advanced payment of the remaining grant award for a project that received advanced payment for the first one-half of the project and meets both of the following criteria:
(1) The department determines that the project proponent has completed identified project objectives within the first one-half of the project.
(2) The department determines that the originally advanced grant award has been expended consistent with the guidelines and requirements provided by the department.
(c) The department shall withhold 10 percent of the total grant award as retention proceeds.
(d) Notwithstanding subdivision (b), the department may, at its sole discretion, provide funding for the second half of the project through a drawdown based on completion of project milestones.
SEC. 4.
Section 10551.6 is added to the Water Code, to read:10551.6.
Upon completion of the project, the project proponent shall submit to the department a final project accountability report. The department shall undertake verification of project completion and once the project is deemed complete, the department shall release any retention proceeds fully to the project proponent.SEC. 5.
Section 10551.9 is added to the Water Code, to read:10551.9.
As used in this chapter:(a) “Disadvantaged community” has the same meaning as defined in subdivision (j) of Section 79702.
(b) “Nonprofit organization” has the same meaning as defined in subdivision (p) of Section 79702.
