Amended in Assembly February 5, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 21

Introduced by Assemblybegin delete Memberend deletebegin insert Membersend insert Alejobegin insert and end insertbegin insertV.end insertbegin insert Manuel Pérezend insert

(Coauthor: Assembly Member Perea)

December 3, 2012

An act to add Section 116760.46 to the Health and Safety Code, relating to drinking waterbegin insert, and making an appropriation thereforend insert.


AB 21, as amended, Alejo. Safe Drinking Water Small Communitybegin insert Emergencyend insert Grant Fund.

Existing law establishes the Safe Drinking Water State Revolving Fund, which is continuously appropriated to the department for the provision of grants and revolving fund loans to provide for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. Existing law requires the department to establish criteria to be met for projects to be eligible for consideration for this funding.

This bill would authorize the department to assess a specified annual charge inbegin delete connection withend deletebegin insert lieu of interest onend insert loans for water projects made pursuant to the Safe Drinking Waterbegin delete Small Community Grantend deletebegin insert State Revolvingend insert Fund,begin insert and deposit that money into the Safe Drinking Water Small Community Emergency Grant Fund,end insert which the bill would create in the State Treasury.begin delete The bill would require the proceeds generated from the imposition of the annual charge, along with other moneys, to be deposited in the grant fund.end delete The bill would authorize the department to expend the moneybegin delete, upon appropriation of the Legislature,end delete for grants for specified water projects that serve disadvantaged and severely disadvantaged communitiesbegin insert, thereby making an appropriationend insert.

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Section 116760.46 is added to the Health and
2Safety Code
, to read:



(a) The Safe Drinking Water Small Community
4begin insert Emergencyend insert Grant Fund is hereby created in the State Treasury.

5(b) The following moneys shall be deposited in the grant fund:

6(1) Moneys transferred to the grant fund pursuant to subdivision

8(2) Notwithstanding Section 16475 of the Government Code,
9any interest earned upon the moneys deposited in the grant fund.

10(c) (1) For any loans made for projects meeting the eligibility
11criteria under Section 116760.50, the department may assess an
12annual charge to be deposited in the grant fund in lieu of interest
13that would otherwise be charged.

14(2) Any amounts collected under this subdivision shall be
15deposited in the grant fund.

16(3) The charge authorized by this subdivision may be applied
17at any time during the term of the financing and, once applied,
18shall remain unchanged.

begin insert

19(4) The charge authorized by this subdivision shall not increase
20the financing repayment amount, as set forth in the terms and
21conditions imposed pursuant to this chapter.

end insert

22(d) (1) Moneys in the grant fundbegin delete, upon appropriation of the end delete
23begin deleteLegislature,end delete may be begin deleteexpended, in accordance with this chapter, end delete
24begin deletefor grants for projects described in Sections 116475 and 116760.50 end delete
25begin deleteandend deletebegin insert on grants for projects that meet the requirements stated in end insert
26begin insertSection 116475 andend insert that serve disadvantaged and severely
27disadvantaged communities.begin delete Grant authorization shall include end delete
28begin deletedrinking water systems between 2 and 14 connections in end delete
29begin deleteunincorporated areas and wellhead protection and repair.end delete

30(2) For the purpose of approving grants, the department shall
31give equal priority to projects that serve severely disadvantaged

begin insert

P3    1(3) Funds expended pursuant to this section shall be expended
2in a manner consistent with the federal EPA grant regulations
3established in Section 35.3530(b)(2) of Title 40 of the Code of
4Federal Regulations.

end insert