Section 13416 Of Article 2. Loans To Local Agencies From California Water Code >> Division 7. >> Chapter 6. >> Article 2.

. Before a public agency may enter into a contract with the state board for a construction loan under this chapter, the public agency shall hold an election on the proposition of whether or not the public agency shall enter into the proposed contract and more than 50 percent of the votes cast at such election must be in favor of such proposition.