Bill Text: CA SB1456 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Safe Drinking Water State Revolving Fund Law of 1997: water systems: financing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-09-22 - Chaptered by Secretary of State. Chapter 488, Statutes of 2016. [SB1456 Detail]

Download: California-2015-SB1456-Introduced.html

---

BILL NUMBER: SB 1456	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Galgiani

                        FEBRUARY 19, 2016

   An act to amend Section 116761.20 of the Health and Safety Code,
relating to drinking water, and making an appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1456, as introduced, Galgiani. Safe Drinking Water State
Revolving Fund Law of 1997: public water systems: financing.
   Existing law establishes the Safe Drinking Water State Revolving
Fund, and moneys in the fund are continuously appropriated to the
State Water Resources Control Board for the provision of grants and
revolving fund loans to provide for the design and construction of
projects for public water systems that will enable suppliers to meet
safe drinking water standards. Existing law, for community public
water systems and not-for-profit noncommunity public water systems,
allows planning and preliminary engineering studies, project design,
and construction costs incurred by those public water systems to be
funded by loans and other repayable financing. Existing law
additionally allows, if those public water systems are owned by
public agencies or not-for-profit water companies, those specified
costs to be funded by grants, principal forgiveness, or a combination
of grants and loans or other financial assistance.
   This bill would authorize the above-described costs to be funded
by loans or other repayable financing, grants, principal forgiveness,
or a combination of grants and loans or other financial assistance,
regardless of whether the public water system is a community public
water system or a not-for-profit noncommunity public water system, or
whether the public water system is owned by a public agency or
private not-for-profit water company. By expanding the use of moneys
in a continuously appropriated fund, this bill would make an
appropriation.
   Existing law deems a public agency or private not-for-profit water
company serving a severely disadvantaged community with fewer than
200 service connections and that owns a small community water system
or nontransient community water system to have no ability to repay
any financing for a project serving the severely disadvantaged
community.
   This bill would apply this finding to any public water system
serving a severely disadvantaged community with fewer than 200
service connections.
   Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 116761.20 of the Health and Safety Code is
amended to read:
   116761.20.  (a) Planning and preliminary engineering studies,
project design, and construction costs incurred by  community
and not-for-profit noncommunity   a  public water
 systems   system  may be funded under this
chapter by loans or other repayable financing,  and, if
these systems are owned by public agencies or private not-for-profit
water companies, by  grants, principal forgiveness, or a
combination of grants and loans or other financial assistance.
   (b) (1) The board shall determine what portion of the full costs
the public  agency or private not-for-profit water company
  water system  is capable of repaying and
authorize funding in the form of a loan or other repayable financing
for that amount. The board shall authorize a grant or principal
forgiveness only to the extent the board finds the public 
agency or not-for-profit water company   water system
 is unable to repay the full costs of the financing.
   (2) Notwithstanding any other provision of this chapter, where a
public  agency or private not-for-profit water company
serving  water system serves  a severely
disadvantaged community with fewer than 200 service 
connections owns a small community water system or nontransient
noncommunity water system,   connections,  the
public  agency or private not-for-profit serving the severely
disadvantaged community   water system  is deemed
to have no ability to repay any financing for a project serving the
severely disadvantaged community.
   (c) At the request of the board, the Public Utilities Commission
shall submit comments concerning the ability of  suppliers,
    public water systems,  subject to its
jurisdiction, to finance the project from other sources and to repay
the financing.