BILL NUMBER: AB 21 AMENDED
AMENDED IN ASSEMBLY FEBRUARY 5, 2013
INTRODUCED BY Assembly
Members Alejo and V. Manuel
(Coauthor: Assembly Member Perea)
DECEMBER 3, 2012
An act to add Section 116760.46 to the Health and Safety Code,
relating to drinking water , and making an appropriation
LEGISLATIVE COUNSEL'S DIGEST
AB 21, as amended, Alejo. Safe Drinking Water Small Community
Emergency 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 in connection with lieu of
interest on loans for water projects made pursuant to the Safe
Drinking Water Small Community Grant State
Revolving Fund, and deposit that money into the Safe
Drinking Water Small Community Emergency Grant Fund, which the
bill would create in the State Treasury. 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.
The bill would authorize the department to expend the money
, upon appropriation of the Legislature, for
grants for specified water projects that serve disadvantaged and
severely disadvantaged communities , thereby making an
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 116760.46 is added to the Health and Safety
Code, to read:
116760.46. (a) The Safe Drinking Water Small Community
Emergency 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
(2) Notwithstanding Section 16475 of the Government Code, any
interest earned upon the moneys deposited in the grant fund.
(c) (1) For any loans made for projects meeting the eligibility
criteria under Section 116760.50, the department 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.
(3) The charge authorized by this subdivision may be applied at
any time during the term of the financing and, once applied, shall
(4) The charge authorized by this subdivision 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 of
the Legislature, may be expended, in accordance
with this chapter, for grants for projects described in Sections
116475 and 116760.50 and on grants for projects that
meet the requirements stated in Section 116475 and that serve
disadvantaged and severely disadvantaged communities. Grant
authorization shall include drinking water systems between 2 and 14
connections in unincorporated areas and wellhead protection and
(2) For the purpose of approving grants, the department shall give
equal priority to projects that serve severely disadvantaged
(3) Funds expended pursuant to this section shall be expended in a
manner consistent with the federal EPA grant regulations established
in Section 35.3530(b)(2) of Title 40 of the Code of Federal