BILL NUMBER: AB 1180 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JANUARY 28, 1998
AMENDED IN ASSEMBLY AUGUST 6, 1997
AMENDED IN ASSEMBLY MAY 15, 1997
AMENDED IN ASSEMBLY MAY 8, 1997
INTRODUCED BY Assembly Member Battin
(Principal coauthor: Senator Costa)
(Coauthors: Assembly Members Frusetta, Granlund, House, Keeley,
Richter, and Woods)
(Coauthor: Senator Watson)
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 amended, Battin. Public water systems.
(1) Under
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 a framework for 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
a framework under which the bond act may be
submitted to the voters at the June 2, 1998, election.
This bill would only become operative if SB 1307 is enacted and
becomes operative.
(2) The
The bill would declare that it is to take effect
immediately as an urgency statute no fund would be
created and no bonds would be issued or sold pursuant to its
provisions, that no appropriation would be made for any purpose in
the bill, that no portion of the bill would be submitted to the
voters, and that no debt or liability of the state would be created
by the bill .
Vote: 2/3 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 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 Safe Drinking Water State Revolving Fund
created by Section 116760.30.
(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.
Article 3. Safe Drinking Water State Revolving Fund
117139. The proceeds of bonds issued and sold pursuant to this
chapter shall be deposited in the Safe Drinking Water State Revolving
Fund.
Article 4. Safe Drinking Water Program
117141. The bond proceeds shall be used by the department for
loans and grants to suppliers, as defined in subdivision (k) of
Section 116760.20, for the purposes of undertaking infrastructure
improvements and related actions to meet safe drinking water
standards, in accordance with the Safe Drinking Water State Revolving
Fund Law of 1997 (Chapter 4.5 (commencing with Section 116760)).
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
Safe Drinking Water State Revolving Fund.
117145.2. (a) 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.
(b) It is the intent of the Legislature that the committee, as
described in Section 117145.6, shall require sufficient bonds to be
issued, up to a maximum of one hundred million dollars ($100,000,000)
through January 2010 to make the maximum federal funds available to
the fund which can reasonably be obligated within the timeframe.
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 June 2, 1998, direct primary election.
(b) The Secretary of State shall ensure the placement of Section 1
of this act on the June 2, 1998, direct primary 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 shall only become operative if Senate Bill 1307
is enacted and becomes operative.
SEC. 6. 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 to provide funds to water suppliers to ensure that safe
drinking water standards are met, as soon as possible, it is
necessary that this act take effect immediately.
SEC. 6. Notwithstanding any other provision of this act, no fund
shall be created and no bonds shall be issued or sold pursuant to
this act, no appropriation shall be made in this act for any purpose,
no portion of this act shall be submitted to the voters of the State
of California, and nothing in this act shall create any debt or
liability of the state.