BILL NUMBER: AB 1772	CHAPTERED  09/27/00

	CHAPTER   722
	FILED WITH SECRETARY OF STATE   SEPTEMBER 27, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 25, 2000
	PASSED THE ASSEMBLY   AUGUST 23, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   JUNE 28, 2000
	AMENDED IN SENATE   JUNE 15, 2000
	AMENDED IN ASSEMBLY   MAY 18, 2000

INTRODUCED BY   Assembly Members Robert Pacheco and Washington

                        JANUARY 20, 2000

   An act to add Section 55339 to the Water Code, relating to water.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1772, Robert Pacheco.    County waterworks districts.
   The County Waterworks District Law specifically authorizes a
county waterworks district to borrow funds from specified public
entities and prohibits a district from deferring a loan repayment for
more than 10 years.
   This bill would authorize a county waterworks district to contract
with any state agency to finance any district improvement if the
term of the contract does not exceed 30 years.  The bill would
require a contract between the district and a state agency that
creates an indebtedness or liability that exceeds the district's
annual revenue to be repaid with revenue derived from the imposition
of standby charges.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 55339 is added to the Water Code, to read:
   55339.  A district may contract with any state agency to finance
any district improvement if the term of the contract does not exceed
30 years.  A contract between the district and a state agency that
creates an indebtedness or liability that exceeds the district's
annual revenue shall be repaid with revenue derived from the
imposition of standby charges pursuant to Section 55501.5.