BILL NUMBER: AB 2356 CHAPTERED
BILL TEXT
CHAPTER 609
FILED WITH SECRETARY OF STATE SEPTEMBER 30, 2008
APPROVED BY GOVERNOR SEPTEMBER 30, 2008
PASSED THE SENATE AUGUST 14, 2008
PASSED THE ASSEMBLY AUGUST 22, 2008
AMENDED IN SENATE AUGUST 6, 2008
AMENDED IN ASSEMBLY APRIL 8, 2008
AMENDED IN ASSEMBLY MARCH 25, 2008
INTRODUCED BY Assembly Member Arambula
FEBRUARY 21, 2008
An act to amend Section 6103.4 of the Government Code, and to
amend Sections 13476, 13477.5, and 13478 of, and to add Sections
13193.9 and 13477.6 to, the Water Code, relating to water quality.
LEGISLATIVE COUNSEL'S DIGEST
AB 2356, Arambula. Water quality.
(1) Existing law generally exempts the state, a county, city, or
special district from paying or depositing any fee for the
performance of any official service. Existing law exempts certain
fees or charges for official services from the operation of this
provision, including certain fees collected under the Porter-Cologne
Water Quality Control Act (state act).
This bill would provide that the exemption generally applies to
fees collected for the performance of an official service under the
state act.
(2) The state act establishes the State Water Pollution Control
Revolving Fund program pursuant to which state and federal funds are
continuously appropriated from the State Water Pollution Control
Revolving Fund to the State Water Resources Control Board for loans
and other financial assistance for the construction of publicly owned
treatment works by a municipality, the implementation of a
management program, the development and implementation of a
conservation and management plan, and other related purposes in
accordance with the federal Clean Water Act and the state act.
This bill would authorize the board to assess a specified annual
charge in connection with any financial assistance made pursuant to
the revolving fund program in lieu of interest that otherwise would
be charged. The bill would require the proceeds generated from the
imposition of the annual charge, along with other moneys, to be
deposited in the State Water Pollution Control Revolving Fund Small
Community Grant Fund, which the bill would create in the State
Treasury. The bill would authorize the board to expend the money in
the fund, upon appropriation by the Legislature to the board, for
grants for eligible projects under the revolving fund program that
serve small communities, as defined. For the purpose of expending
these funds, the board would be required to give priority to projects
that serve severely disadvantaged communities.
The bill would require the board, to the extent permitted by law,
to take certain actions for the purpose of allocating funds on behalf
of a wastewater collection, treatment, or disposal project, if the
financial assistance recipient is a small, disadvantaged community,
as defined. Those actions would include allocating to the recipient
up to 25% of the financial assistance amount, not exceeding
$1,000,000, in advance of actual expenditures, establishing an
expedited payment process as specified, and utilizing wire transfers
or other appropriate procedures to expedite project payments.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6103.4 of the Government Code is amended to
read:
6103.4. Section 6103 does not apply to any fee or charge for
official services required by Section 100860 of the Health and Safety
Code, or Part 5 (commencing with Section 4999) of Division 2, or
Division 7 (commencing with Section 13000), of the Water Code.
SEC. 2. Section 13193.9 is added to the Water Code, to read:
13193.9. (a) The state board, to the extent permitted by law,
shall take all of the following actions for the purpose of allocating
funds on behalf of a wastewater collection, treatment, or disposal
project, if the recipient of financial assistance is a small,
disadvantaged community:
(1) If the state board determines that an advance is needed for
the project to proceed in an efficient manner, allocate to the
recipient up to 25 percent of the financial assistance amount, not
exceeding one million dollars ($1,000,000), in advance of actual
expenditures. The recipient shall repay to the state board any funds
advanced pursuant to this section, including any interest earned on
the advance funds, if the funds are unused upon expiration of the
funding agreement or if the funds are not expended in accordance with
the financial assistance agreement.
(2) Establish a payment process pursuant to which the recipient of
financial assistance receives funds within 30 days of the date on
which the state board receives a project payment request unless the
state board, within that 30-day period, determines that the project
payment would not be in accordance with the terms of the program
guidelines.
(3) Utilize wire transfers or other appropriate payment procedures
to expedite project payments.
(b) The amount of financial assistance received by a recipient,
including any funds advanced pursuant to paragraph (1) of subdivision
(a), shall not exceed the total amount of the financial assistance
that the state board agrees to provide for a project. If financial
assistance is advanced to a recipient pursuant to paragraph (1) of
subdivision (a), the state board shall reduce subsequent
disbursements of financial assistance by the amount advanced.
(c) For the purposes of this section, "small disadvantaged
community" means a municipality with a population of 20,000 persons
or less, or a reasonably isolated and divisible segment of a larger
municipality encompassing 20,000 persons or less, with an annual
median household income that is less than 80 percent of the statewide
annual median household income.
SEC. 3. Section 13476 of the Water Code is amended to read:
13476. Unless the context otherwise requires, the following
definitions govern the construction of this chapter:
(a) "Administration fund" means the State Water Pollution Control
Revolving Fund Administration Fund.
(b) "Board" means the State Water Resources Control Board.
(c) "Federal Clean Water Act" or "federal act" means the Clean
Water Act (33 U.S.C. Sec. 1251 et seq.) and acts amendatory thereof
or supplemental thereto.
(d) "Financial assistance" means assistance authorized under
Section 13480. Financial assistance includes loans, refinancing,
installment sales agreements, purchase of debt, and loan guarantees
for municipal revolving funds, but excludes grants.
(e) "Fund" means the State Water Pollution Control Revolving Fund.
(f) "Grant fund" means the State Water Pollution Control Revolving
Fund Small Community Grant Fund.
(g) "Matching funds" means money that equals that percentage of
federal contributions required by the federal act to be matched with
state funds.
(h) "Municipality" has the same meaning and construction as in the
federal act and also includes all state, interstate, and
intermunicipal agencies.
(i) "Publicly owned" means owned by a municipality.
SEC. 4. Section 13477.5 of the Water Code is amended to read:
13477.5. (a) The State Water Pollution Control Revolving Fund
Administration Fund is hereby created in the State Treasury.
(b) The following moneys shall be deposited in the administration
fund:
(1) Moneys transferred to the administration fund to pay the costs
incurred by the 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 deposited in the administration fund.
(c) (1) For any financial assistance made pursuant to Section
13480, the 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) Any amounts collected under this subdivision shall be
deposited in the administration fund.
(3) 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) Moneys in the administration fund, upon appropriation by the
Legislature to the board, may be expended for payment of the
reasonable costs of administering the fund.
(e) The board shall set the total amount of revenue collected each
year through the charges authorized by subdivision (c) at an amount
that is as equal as practicable to the revenue levels set forth in
the annual Budget Act for this activity. At least once each fiscal
year, the board shall adjust the financial assistance service rate
imposed pursuant to subdivision (c) to conform with the revenue
levels set forth in the annual Budget Act.
SEC. 5. Section 13477.6 is added to the Water Code, to read:
13477.6. (a) The State Water Pollution Control Revolving Fund
Small Community Grant Fund is hereby created in the State Treasury.
(b) The following moneys shall be deposited in the grant fund:
(1) Moneys transferred to the grant fund pursuant to subdivision
(c).
(2) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the moneys deposited in the grant fund.
(c) (1) For any financing made pursuant to Section 13480, the
board may assess an annual charge to be deposited in the grant fund
in lieu of interest that would otherwise be charged.
(2) Any amounts collected under this subdivision shall be
deposited in the grant fund, not more than fifty million dollars
($50,000,000) shall be deposited in the grant fund.
(3) The charge authorized by this subdivision may be applied at
any time during the term of the financing, and once applied, shall
remain unchanged until 2014, at which point it shall terminate and be
replaced by an identical interest rate. The charge shall not
increase the financing repayment amount as set forth in the terms and
conditions imposed pursuant to this chapter.
(d) (1) Moneys in the grant fund, upon appropriation by the
Legislature to the board, may be expended, in accordance with this
chapter, for grants for projects described in subdivision (a) of
Section 13480 that serve small communities as defined in subdivision
(a) of Section 30925 of the Public Resources Code.
(2) For the purpose of approving grants, the board shall give
priority to projects that serve severely disadvantaged communities.
SEC. 6. Section 13478 of the Water Code is amended to read:
13478. The board may undertake any of the following:
(a) Enter into agreements with the federal government for federal
contributions to the fund.
(b) Accept federal contributions to the fund.
(c) Enter into an agreement with, and accept matching funds from,
a municipality. A municipality that seeks to enter into an agreement
with the board and provide matching funds pursuant to this
subdivision shall provide to the board evidence of the availability
of those funds in the form of a written resolution adopted by the
governing body of the municipality before it requests a preliminary
financial assistance commitment.
(d) Use moneys in the fund for the purposes permitted by the
federal act.
(e) Provide for the deposit of matching funds and any other
available and necessary moneys into the fund.
(f) Make requests on behalf of the state for deposit into the fund
of available federal moneys under the federal act and determine on
behalf of the state appropriate maintenance of progress toward
compliance with the enforceable deadlines, goals, and requirements of
the federal act.
(g) Determine on behalf of the state that publicly owned treatment
works that receive financial assistance from the fund will meet the
requirements of, and otherwise be treated as required by, the federal
act.
(h) Provide for appropriate audit, accounting, and fiscal
management services, plans, and reports relative to the fund.
(i) Take additional incidental action as appropriate for the
adequate administration and operation of the fund.
(j) Charge municipalities that elect to provide matching funds a
fee to cover the actual cost of obtaining the federal funds pursuant
to Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)(7))
and processing the financial assistance application. The fee shall be
waived by the board if sufficient funds to cover those costs are
available from other sources.
(k) Use money returned to the fund under clause (ii) of
subparagraph (D) of paragraph (1) of subdivision (b) of Section
13480, and any other source of matching funds, if not prohibited by
statute, as matching funds for the federal administrative allowance
under Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)
(7)).
(l) Expend money repaid by financial assistance recipients for
financial assistance service under clauses (i) and (ii) of
subparagraph (D) of paragraph (1) of subdivision (b) of Section 13480
to pay administrative costs incurred by the board under this
chapter.