Bill Text: CA AB2738 | 2013-2014 | Regular Session | Introduced

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

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Bill Title: Contamination.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2014-09-29 - Chaptered by Secretary of State - Chapter 828, Statutes of 2014. [AB2738 Detail]

Download: California-2013-AB2738-Introduced.html

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BILL NUMBER: AB 2738	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Environmental Safety and Toxic Materials
(Assembly Members Alejo (Chair), Bloom, Stone, and Ting)

                        FEBRUARY 26, 2014

   An act to amend Sections 116760.40, 116760.44, and 116761.70 of
the Health and Safety Code, relating to drinking water, and making an
appropriation therefor.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2738, as introduced, Committee on Environmental Safety and
Toxic Materials. Safe Drinking Water State Revolving Fund: accounts.
   Existing law, the Safe Drinking Water State Revolving Fund Law of
1997, authorizes the State Department of Public Health to administer
the Safe Drinking Water State Revolving Fund, which is established in
the State Treasury and continuously appropriated to the department
to provide grants or revolving fund loans for the design and
construction of projects for public water systems, as defined, to
enable compliance with safe drinking water standards. Existing law
authorizes the department to enter into an agreement with the federal
government for matching federal contributions into the fund.
Existing law requires federal funds to be deposited in the special
accounts that are continuously appropriated to the department.
   This bill would, in addition, establish the fees and charges
account within the fund for deposit of prescribed administrative fees
to be expended for administrative costs of providing assistance
under these provisions, to the extent consistent with federal law.
   Existing law authorizes the department to establish a reasonable
fee schedule of administrative fees for loans to be paid by grant
applicants, not to exceed 4% of the capitation grant.
   This bill would, instead, authorize the administrative fees to
include an applicant fee to reimburse the department for the costs of
reviewing and approving applications, and a loan disbursement fee to
reimburse the department for all other costs. The bill would
authorize the department to annually adjust the fee schedule.
   Existing law requires payment of charges incurred by the Attorney
General in protection of the state's interest in the use of funds
under these provisions, not to exceed1/2 of 1% of the fund, to be
paid as program expenses rather than administrative costs.
   This bill would delete this requirement.
   By changing the purposes for which continuously appropriated funds
may be expended, this bill would make an appropriation.
   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 116760.40 of the Health and Safety Code is
amended to read:
   116760.40.  The department may undertake any of the following
actions to implement the Safe Drinking Water State Revolving Fund:
   (a) Enter into agreements with the federal government for federal
contributions to the fund.
   (b) Accept federal contributions to the fund.
   (c) Use moneys in the fund for the purposes permitted by the
federal act.
   (d) Provide for the deposit of matching funds and other available
and necessary moneys into the fund.
   (e) Make requests, on behalf of the state, for deposit into the
fund of available federal moneys under the federal act.
   (f) Determine, on behalf of the state, that public water systems
that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
   (g) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
   (h) Take additional incidental action as may be appropriate for
adequate administration and operation of the fund.
   (i) Enter into an agreement with, and accept matching funds from,
a public water system. A public water system that seeks to enter into
an agreement with the department and provide matching funds pursuant
to this subdivision shall provide to the department evidence of the
availability of those funds in the form of a written resolution, or
equivalent document, from the public water system before it requests
a preliminary loan commitment.
   (j) Charge public water systems that elect to provide matching
funds a fee to cover the actual cost of obtaining the federal funds
pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
300j-12) and to process the loan application. The fee shall be waived
by the department if sufficient funds to cover those costs are
available from other sources.
   (k) Use money returned to the fund under Section 116761.85 and any
other source of matching funds, if not prohibited by statute, as
matching funds for the federal administrative allowance under Section
1452(g) of the federal act (42 U.S.C. Sec. 300j-12).
   (  l  ) Establish separate accounts or subaccounts as
required or allowed in the federal act and related guidance, for
funds to be used for administration of the fund and other purposes.
Within the fund the department shall establish the following
accounts, including, but not limited to:
   (1) A fund administration account for state expenses related to
administration of the fund pursuant to Section 1452(g)(2) of the
federal act.
   (2) A water system reliability account for department expenses
pursuant to Section 1452(g)(2)(A), (B), (C), or (D) of the federal
act.
   (3) A source protection account for state expenses pursuant to
Section 1452(k) of the federal act.
   (4) A small system technical assistance account for department
expenses pursuant to Section 1452(g)(2) of the federal act.
   (5) A state revolving loan account pursuant to Section 1452(a)(2)
of the federal act.
   (6) A wellhead protection account established pursuant to Section
1452(a)(2) of the federal act. 
   (7) A fees and charges account for state expenses in providing
assistance under this chapter. 
   (m) Deposit federal funds for administration and other purposes
into separate accounts or subaccounts as allowed by the federal act.
   (n) Determine, on behalf of the state, whether sufficient progress
is being made toward compliance with the enforceable deadlines,
goals, and requirements of the federal act and the California Safe
Drinking Water Act, Chapter 4 (commencing with Section 116270).
   (o) To the extent permitted under federal law, including, but not
limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use any
and all amounts deposited in the fund, including, but not limited
to, loan repayments and interest earned on the loans, as a source of
reserve and security for the payment of principal and interest on
revenue bonds, the proceeds of which are deposited in the fund.
   (p) Request the Infrastructure and Economic Development Bank
(I-Bank), established under Chapter 2 (commencing with Section 63021)
of Division 1 of Title 6.7 of the Government Code, to issue revenue
bonds, enter into agreements with the I-Bank, and take all other
actions necessary or convenient for the issuance and sale of revenue
bonds pursuant to Article 6.3 (commencing with Section 63048.55) of
Chapter 2 of Division 1 of Title 6.7 of the Government Code. The
purpose of the bonds is to augment the fund.
  SEC. 2.  Section 116760.44 of the Health and Safety Code is amended
to read:
   116760.44.   (a)    The department may deposit
administrative fees and charges paid by public water systems and
other available and necessary money into the administrative account
of the fund. 
   (b) (1) Notwithstanding subdivision (a), the department may
deposit the following moneys into the fees and charges account: 

   (A) Administrative fees received pursuant to Section 116761.70.
 
   (B) Notwithstanding Section 16475 of the Government Code, interest
earned upon the moneys deposited into the fees and charges account.
 
   (2) The department may expend moneys in the fees and charges
account for administrative costs of providing assistance under this
chapter, to the extent consistent with federal law and regulations.

  SEC. 3.  Section 116761.70 of the Health and Safety Code is amended
to read:
   116761.70.  (a)  Not more than 4 percent of the capitalization
grant may be used by the department for administering this chapter.
The department may establish a reasonable schedule of administrative
fees for loans, which shall be paid by the applicant  and
recipient, as appropriate,  to reimburse the state for the costs
of the state administration of this chapter. 
   (b)  Charges incurred by the Attorney General in protection of the
state's interest in the use of repayment of grant and loan funds
under this chapter shall be paid. These charges shall not be paid
from funds allocated for administrative purposes, but shall be
treated as a program expense not to exceed one-half of 1 percent of
the total amount deposited in the fund.  
   (b) The fee schedule authorized pursuant to subdivision (a) shall
be designed to generate total annual revenue in an amount that, as
closely as practicable, approximates without exceeding, the total
annual cost to the department for administration of this chapter,
including, but not limited to, the costs of servicing loans made
pursuant to this chapter.  
   (c) The fee schedule may contain, and the department may assess,
both of the following administrative fees:  
   (1) An application fee, to be paid by all applicants, to reimburse
the department for the costs of reviewing and approving the
application. The application fee shall be collected at the time of
submission of the application.  
   (2) A loan disbursal fee, to be paid by loan recipients, to pay
all other costs of the department associated with administering this
chapter, including, but not limited to, costs associated with
servicing the loan. In total, the loan disbursal fee shall not exceed
1 percent of the principal loan amount and may be assessed on, or at
the time of, each disbursement of loan funds. The department may
invoice the funding recipient for the loan disbursement fee. The fee
shall be due and payable by the funding recipient within 90 days
following the date of the invoice. Loan disbursal fees shall not be
deferred during project construction.  
   (d) Notwithstanding subdivision (a), (b), or (c), if a funding
recipient demonstrates to the department that the assessment of
administrative fees would make the costs of the loan unaffordable to
a recipient, the department shall waive or reduce the fees, as
appropriate.  
   (e) The department shall annually adjust the fee schedule of
charges for loans to be issued in that fiscal year to set the fees at
a rate that will generate total annual revenue in an amount that, as
closely as practicable, approximates without exceeding, the total
annual cost to the department for administration of this chapter
during that fiscal year, including, but not limited to, the costs of
servicing loans made pursuant to this chapter.