Section 13819 Of Chapter 10.2. California Safe Drinking Water Bond Law Of 1984 From California Water Code >> Division 7. >> Chapter 10.2.
13819
. (a) The moneys in the fund are hereby continuously
appropriated and shall be used for the purposes set forth in this
section.
(b) The department may enter into contracts with suppliers having
authority to construct, operate, and maintain domestic water systems,
for loans to suppliers to aid in the construction of projects that
will enable the supplier to meet, at a minimum, safe drinking water
standards established pursuant to Chapter 4 (commencing with Section
116275) of Part 12 of Division 104 of the Health and Safety Code.
(c) Any contract entered into pursuant to this section may include
provisions as agreed by the parties thereto, and the contract shall
include, in substance, all of the following provisions:
(1) An estimate of the reasonable cost of the project.
(2) An agreement by the department to loan to the supplier, during
the progress of construction or following completion of construction
as agreed by the parties, an amount that equals the portion of
construction costs found by the department to be eligible for a state
loan.
(3) An agreement by the supplier to repay the state over a period
not to exceed 50 years, (A) the amount of the loan, (B) the
administrative fee as described in Section 13830, and (C) interest on
the principal, that is the amount of the loan plus the
administrative fee.
(4) An agreement by the supplier, (A) to proceed expeditiously
with, and complete, the project, (B) to commence operation of the
project upon completion thereof, and to properly operate and maintain
the project in accordance with the applicable provisions of law, (C)
to apply for, and make reasonable efforts, to secure federal
assistance for the project, (D) to secure approval of the department
and of the State Department of Health Services before applying for
federal assistance in order to maximize and best utilize the amounts
of that assistance available, and (E) to provide for payment of the
supplier's share of the cost of the project, if any.
(d) Bond proceeds may be used for a grant program in accordance
with this chapter, with grants provided to suppliers that are
political subdivisions of the state that are otherwise unable to meet
minimum safe drinking water standards established pursuant to
Chapter 4 (commencing with Section 116275) of Part 12 of Division 104
of the Health and Safety Code. The total amount of grants made
pursuant to this chapter shall not exceed twenty-five million dollars
($25,000,000). The Legislative Analyst shall review the grant
program and report to the Legislature not later than June 1, 1987.
(e) Notwithstanding any other provision, the proceeds of any bonds
authorized to be issued under the California Safe Drinking Water
Bond Law of 1976 (Chapter 10.5 (commencing with Section 13850)), that
are unissued and uncommitted on the effective date of this chapter,
shall be used for loans to suppliers in accordance with the terms,
conditions, and purposes of this chapter.