BILL NUMBER: AB 1180 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Battin
FEBRUARY 28, 1997
An act to add Chapter 8 (commencing with Section 117135) to Part
12 of Division 104 of the Health and Safety Code, relating to
financing a safe drinking water program by providing the funds
necessary therefor through the issuance and sale of bonds of the
State of California and by providing for the handling and disposition
of those funds, and declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
AB 1180, as introduced, Battin. California Safe Drinking Water
Bond Act of 1998.
Under existing law, various bond acts have been approved by the
voters to provide funds for water projects, facilities, and programs.
This bill would enact the California Safe Drinking Water Bond Act
of 1998, which, if adopted, would authorize for the purposes of
financing a safe drinking water program, the issuance, pursuant to
the State General Obligation Bond Law, of bonds in the amount of
$100,000,000.
The bill would provide for the submission of this bond act to the
voters at the ____ election.
The bill would declare that it is to take effect immediately as an
urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 8 (commencing with Section 117135) is added to
Part 12 of Division 104 of the Health and Safety Code, to read:
CHAPTER 8. CALIFORNIA SAFE DRINKING WATER BOND ACT OF 1998
Article 1. Short Title
117135. This chapter shall be known and may be cited as the
California Safe Drinking Water Bond Act of 1998.
Article 2. Definitions
117137. Unless the context otherwise requires, the following
definitions govern the construction of this chapter.
(a) "Department" means the State Department of Health Services.
(b) "Fund" means the California Safe Drinking Water Fund created
by subdivision (a) of Section 117139.
(c) "Safe Drinking Water Act" means the federal Safe Drinking
Water Act (42 U.S.C. Sec. 300f et seq.) and includes any amendments
thereto.
(d) "Safe Drinking Water Grant Account" means the Safe Drinking
Water Grant Account in the fund created by subdivision (c) of Section
117139.
(e) "State Revolving Loan Account" means the State Revolving Loan
Account in the fund created by subdivision (b) of Section 117139.
Article 3. California Safe Drinking Water Fund
117139. (a) The proceeds of bonds issued and sold pursuant to
this chapter shall be deposited in the California Safe Drinking Water
Fund, which is hereby created.
(b) The State Revolving Loan Account is hereby created in the
fund.
(c) The Safe Drinking Water Grant Account is hereby created in the
fund.
Article 4. California Safe Drinking Water Program
117141. The money in the fund shall be used by the State
Department of Health Services, in accordance with this chapter, for
loans and grants to water suppliers who own or operate a public
domestic water system for the purpose of undertaking infrastructure
improvements to meet minimum safe drinking water standards.
117141.5. The following amounts are hereby transferred from the
fund to the State Revolving Loan Account and the Safe Drinking Water
Grant Account and, notwithstanding Section 13340 of the Government
Code, continuously appropriated, without regard to fiscal year, from
the accounts to the department:
(a) ____ dollars ($____) to the State Revolving Loan Account for
the purposes of providing loans pursuant to the Safe Drinking Water
Act, to ____.
(b) ____ dollars ($____) to the Safe Drinking Water Grant Account
for grants by the department to ____.
117141.10. All principal and interest payments received pursuant
to loan contracts entered into pursuant to this article shall be
deposited in the State Revolving Loan Account for additional loans
under this article, and shall not be transferred to the General Fund.
Article 5. Fiscal Provisions
117145. The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the State Treasury to the credit of the
California Safe Drinking Water Fund, created by subdivision (a) of
Section 117139.
117145.2. Bonds in the total amount of one hundred million
dollars ($100,000,000), not including the amount of any refunding
bonds issued in accordance with Section 117145.20, or as much thereof
as is necessary, may be issued and sold to provide a fund to be used
for carrying out the purposes expressed in this chapter and to be
used to reimburse the General Obligation Bond Expense Revolving Fund
pursuant to Section 16724.5 of the Government Code. The bonds, when
sold, shall be and constitute a valid and binding obligation of the
State of California, and the full faith and credit of the State of
California is hereby pledged for the punctual payment of both
principal of, and interest on, the bonds as the principal and
interest become due and payable.
117145.4. (a) The bonds authorized by this chapter shall be
prepared, executed, issued, sold, paid, and redeemed as provided in
the State General Obligation Bond Law (Chapter 4 (commencing with
Section 16720) of Part 3 of Division 4 of Title 2 of the Government
Code), and all of the provisions of that law apply to the bonds and
to this chapter and are hereby incorporated in this chapter as though
set forth in full in this chapter.
(b) For purposes of the State General Obligation Bond Law, the
State Department of Health Services is designated the "board."
117145.6. Solely for the purpose of authorizing the issuance and
sale, pursuant to the State General Obligation Bond Law, of the bonds
authorized by this chapter, the California Safe Drinking Water
Finance Committee is hereby created. For purposes of this chapter,
California Safe Drinking Water Finance Committee is the "committee"
as that term is used in the State General Obligation Bond Law. The
committee consists of the Treasurer, the Controller, and the Director
of Finance, or their designated representatives. A majority of the
committee may act for the committee.
117145.8. The committee shall determine whether or not it is
necessary or desirable to issue bonds authorized pursuant to this
chapter in order to carry out the actions specified in this chapter
and, if so, the amount of bonds to be issued and sold. Successive
issues of bonds may be authorized and sold to carry out those actions
progressively, and it is not necessary that all of the bonds
authorized to be issued be sold at any one time.
117145.10. There shall be collected each year and in the same
manner and at the same time as other state revenue is collected, in
addition to the ordinary revenues of the state, a sum in an amount
required to pay the principal of, and interest on, the bonds each
year. It is the duty of all officers charged by law with any duty in
regard to the collection of the revenue to do and perform each and
every act which is necessary to collect that additional sum.
117145.12. Notwithstanding Section 13340 of the Government Code,
there is hereby appropriated from the General Fund in the State
Treasury, for the purposes of this chapter, an amount that will equal
the total of the following:
(a) The sum annually necessary to pay the principal of, and
interest on, bonds issued and sold pursuant to this chapter, as the
principal and interest become due and payable.
(b) The sum necessary to carry out Section 117145.14.,
appropriated without regard to fiscal years.
117145.14. For the purposes of carrying out this chapter, the
Director of Finance may authorize the withdrawal from the General
Fund of an amount not to exceed the amount of the unsold bonds which
have been authorized by the committee to be sold for the purpose of
carrying out this chapter. Any amount withdrawn shall be deposited
in the fund. Any money made available under this section shall be
returned to the General Fund, plus an amount equal to the interest
that the money would have earned in the Pooled Money Investment
Account, from money received from the sale of bonds for the purpose
of carrying out this chapter.
117145.16. All money deposited in the fund that is derived from
premium and accrued interest on bonds sold shall be reserved in the
fund and shall be available for transfer to the General Fund as a
credit to expenditures for bond interest.
117145.18. The State Department of Health Services may request
the Pooled Money Investment Board to make a loan from the Pooled
Money Investment Account in accordance with Section 16312 of the
Government Code for the purposes of carrying out this chapter. The
amount of the request shall not exceed the amount of the unsold bonds
which the committee, by resolution, has authorized to be sold for
the purpose of carrying out this chapter. The department shall
execute any documents required by the Pooled Money Investment Board
to obtain and repay the loan. Any amounts loaned shall be deposited
in the fund to be allocated by the department in accordance with this
chapter.
117145.20. The bonds may be refunded in accordance with Article 6
(commencing with Section 16780) of Chapter 4 of Part 3 of Division 4
of Title 2 of the Government Code, which is a part of the State
General Obligation Bond Law. Approval by the voters of the state for
the issuance of the bonds described in this chapter includes the
approval of the issuance of any bonds issued to refund any bonds
originally issued or any previously issued refunding bonds.
117145.22. Notwithstanding any provision of this chapter or the
State General Obligation Bond Law, if the Treasurer sells bonds
pursuant to this chapter that include a bond counsel opinion to the
effect that the interest on the bonds is excluded from gross income
for federal tax purposes, subject to designated conditions, the
Treasurer may maintain separate accounts for the investment of bond
proceeds and the investment earnings on those proceeds. The Treasurer
may use or direct the use of those proceeds or earnings to pay any
rebate, penalty, or other payment required under federal law or to
take any other action with respect to the investment and use of bond
proceeds required or desirable under federal law to maintain the
tax-exempt status of those bonds and to obtain any other advantage
under federal law on behalf of the funds of this state.
117145.24. The Legislature hereby finds and declares that,
inasmuch as the proceeds from the sale of bonds authorized by this
chapter are not "proceeds of taxes" as that term is used in Article
XIIIB of the California Constitution, the disbursement of these
proceeds is not subject to the limitations imposed by that article.
SEC. 2. Section 1 of this act shall become effective upon the
adoption by the voters of the California Safe Drinking Water Bond Act
of 1998, as set forth in Section 1 of this act.
SEC. 3. (a) Notwithstanding Sections 9040, 9043, 9044, 9061, and
9094 of the Elections Code, or any other provision of law, the
Secretary of State shall submit Section 1 of this act to the voters
at the ____ election.
(b) The Secretary of State shall ensure the placement of Section 1
of this act on the ____ election ballot.
(c) The Secretary of State shall include, in the ballot pamphlet
mailed pursuant to Section 9094 of the Elections Code, the
information specified in Section 9084 of that code regarding the bond
act set forth in Section 1 of this act.
SEC. 4. (a) Notwithstanding any other provision of law, all
ballots at the election shall have printed thereon and in a square
thereof, the words: "California Safe Drinking Water Bond Act of
1998," and in the same square under those words, the following in
8-point type: "This act provides for a bond issue of one hundred
million dollars ($100,000,000) to provide funds to ensure safe
drinking water." Opposite the square there shall be left spaces in
which the voters may place a cross in the manner required by law to
indicate whether they vote for or against the act.
(b) Where the voting in the election is done by means of voting
machines, used pursuant to law in a manner to carry out the intent of
this section, the use of the voting machines and the expression of
the voters' choice by means thereof are in compliance with this
section.
SEC. 5. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order that the California Safe Drinking Water Bond Act of 1998,
may be submitted for voter approval at the ____, election, it is
necessary that this act take effect immediately.