Article 7. Safe Drinking Water State Revolving Fund Management of California Health And Safety Code >> Division 104. >> Part 12. >> Chapter 4.5. >> Article 7.
(a) To the extent permitted by federal and state law,
moneys in the fund may be expended to rebate to the federal
government all arbitrage profits required by the federal Tax Reform
Act of 1986 (Public Law 99-514) or any amendment of or supplement to
that law. To the extent that this expenditure of the moneys in the
fund is prohibited by federal or state law, any rebates required by
federal law shall be paid from the General Fund or other sources,
upon appropriation by the Legislature.
(b) Notwithstanding any other law or regulation, the board may
enter into contracts or may procure those services and equipment that
may be necessary to ensure prompt and complete compliance with any
provisions relating to the fund imposed by either the federal Tax
Reform Act of 1986 (Public Law 99-514) or the federal Safe Drinking
Water Act.
(c) This section shall become operative on July 1, 2014.
(a) The board shall establish, and may periodically
adjust, the interest rate for repayable financing made pursuant to
this chapter at a rate not to exceed 50 percent of the average
interest rate, computed by the true interest cost method, paid by the
state on general obligation bonds issued in the prior calendar year,
rounded up to the closest one-tenth of 1 percent.
(b) Notwithstanding subdivision (a), if the financing is for a
public water system that serves a disadvantaged community with a
financial hardship as determined by the board or if the financing is
for a public water system that provides matching funds, the interest
rate shall be 0 percent.
(a) The Safe Drinking Water State Revolving Fund
Administration Fund is hereby created in the State Treasury.
(b) The following moneys shall be deposited into the
administration fund:
(1) Moneys transferred to pay the costs incurred by the state
board in connection with the administration of this chapter.
(2) The amounts collected for financial assistance services
pursuant to subdivision (c).
(3) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the moneys in the fund.
(c) (1) For financial assistance made pursuant to this chapter,
where that financial assistance is to be repaid to the state board,
the state board may assess an annual charge for financial assistance
services with regard to the financial assistance, not to exceed 1
percent of the financial assistance balance, computed according to
the true interest cost method.
(2) The financial assistance service rate authorized by this
subdivision may be applied at any time during the term of the
financial assistance, and once applied, shall remain unchanged for
the duration of the financial assistance and shall not increase the
financial assistance repayment amount, as set forth in the terms and
conditions imposed pursuant to this chapter.
(d) Upon appropriation by the Legislature, moneys in the
administration fund may be expended by the state board for payment of
the reasonable costs of administering the fund.
(e) The state board shall set the total amount of revenue
collected each year through the charge authorized by subdivision (c)
at an amount that is equal as practicable to the appropriation amount
set forth in the annual Budget Act for this activity. At least once
each fiscal year, the state board shall adjust the financial
assistance service charge imposed pursuant to subdivision (c) to
conform with the appropriation amount set forth in the annual Budget
Act.
(a) Moneys repaid to the state pursuant to any contract
executed pursuant to this chapter, including interest payments and
all interest earned on or accruing to any moneys in the fund, shall
be deposited in the fund and shall be available in perpetuity, for
expenditure for the purposes and uses permitted by this chapter and
the federal act.
(b) This section shall become operative on July 1, 2014.
To the extent amounts in the fund are not required for
current obligation or expenditure, those amounts shall be invested in
interest bearing obligations, and the interest earned shall become
part of the fund.