Amended in Senate June 1, 2015

Senate Bill No. 208

Introduced by Senator Lara

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(Coauthor: Senator Hueso)

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(Coauthors: Assembly Members Dodd, Jones-Sawyer, and Weber)

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February 11, 2015

An act to add and repeal Chapter 7 (commencing with Section 10551) of Part 2.2 of Division 6 of the Water Code, relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 208, as amended, Lara. Integrated regional water management plans: grants: advanced payment.

Existing law, the Integrated Regional Water Management Planning Act, authorizes a regional water management group to prepare and adopt an integrated regional water management plan with specified components relating to water supply and water quality. Existing law provides that an integrated regional water management plan is eligible for funding allocated specifically for implementation of integrated regional water management.

Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The act provides that the sum of $810,000,000 is to be available, upon appropriation by the Legislature, for expenditures on, and competitive grants and loans to, projects that are included in and implemented in an adopted integrated regional water management plan and respond to climate change and contribute to regional water security.

This bill would require a regional water management group, within 90 days of notice that a grant has been awarded, to provide the begin delete state entity administering the grant end delete begin insert Department of Water Resources end insert with a list of projects to be funded by the grant funds where the project proponent is a nonprofit organization, as defined, or a disadvantaged community, as defined, or the project benefits a disadvantaged community. This bill would require the begin delete state entity administering the grant, end delete begin insert department, end insert within 60 days of receiving the project information, to provide advanced payment of 50% of the grant award for those projects that satisfy specified criteria and would require the advanced funds to be handled, as prescribed. begin insert This bill would authorize the department to adopt additional requirements for the recipient regarding the use of the advanced payment to ensure that the funds are used properly. end insert This bill would repeal these provisions on January 1, 2025.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

Chapter 7 (commencing with Section 10551) is
added to Part 2.2 of Division 6 of the Water Code, to read:

 

Chapter  7. Advanced Payment of Grant Funds

 

10551.  

(a) Within 90 days of notice that a grant for projects
included and implemented in an integrated regional water
management plan has been awarded, the regional water
management group shall provide the begin delete state entity administering the
grant end delete begin insert department end insert with a list of projects to be funded by the grant
funds where the project proponent is a nonprofit organization or
a disadvantaged community, or the project benefits a disadvantaged
community. The list shall specify how the projects are consistent
with the adopted integrated regional water management plan and
shall include all of the following information:

(1) Descriptive information concerning each project identified.

(2) The names of the entities that will receive the funding for
each project, including, but not limited to, an identification as to
whether the project proponent or proponents are nonprofit
organizations or a disadvantaged community.

(3) The budget of each project.

(4) The anticipated schedule for each project.

(b) Within 60 days of receiving the project information pursuant
to subdivision (a), the begin delete state entity administering the grant end delete
begin insert department end insert shall provide advanced payment of 50 percent of the
grant award for those projects that satisfy both of the following
criteria:

(1) The project proponent is a nonprofit organization or a
disadvantaged community, or the project benefits a disadvantaged
community.

(2) The grant award for the project is less than one million
dollars ($1,000,000).

(c) Funds advanced pursuant to subdivision (b) shall be handled
as follows:

(1) The recipient shall place the funds in a noninterest-bearing
account until expended.

(2) The funds shall be spent within six months of the date of
receipt, unless the begin delete state entity administering the grant end delete begin insert department end insert
waives this requirement.

(3) The recipient begin delete shall periodically, but not more frequently
than quarterly, end delete begin insert shall, on a quarterly basis, end insert provide an accountability
report to the begin delete state entity administering the grant end delete begin insert department end insert
regarding the expenditure and use of any advanced grant funds begin delete in
a format as determined by that state entity. end delete begin insert that provides, at a
minimum, the following information: end insert

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(A) An itemization as to how advanced payment funds provided
under this section have been expended.

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(B) A project itemization as to how any remaining advanced
payment funds provided under this section will be expended over
the period specified in paragraph (2).

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(C) Whether the funds are placed in a noninterest-bearing
account, and if so, the date that occurred and the dates of
withdrawals of funds from that account, if applicable.

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(4) If funds are not expended, the unused portion of the grant
shall be returned to the begin delete state entity administering the grant end delete
begin insert department end insert within 60 days after project completion or the end of
the grant performance period, whichever is earlier.

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(5) The department may adopt additional requirements for the
recipient regarding the use of the advanced payment to ensure
that the funds are used properly.

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(d) As used in this section:

(1) “Disadvantaged community” has the same meaning as
defined in subdivision (j) of Section 79702.

(2) “Nonprofit organization” has the same meaning as defined
in subdivision (p) of Section 79702.

10552.  

This chapter shall remain in effect only until January
1, 2025, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2025, deletes or extends
that date.