Section § 13810

Explanation

This law is called the California Safe Drinking Water Bond Law of 1984. It's a specific piece of legislation focused on funding projects related to safe drinking water.

This chapter shall be known and may be cited as the California Safe Drinking Water Bond Law of 1984.

Section § 13811

Explanation

This law states that it's crucial for the health and safety of Californians that tap water be safe to drink and use. It must be pure, healthy, and not harmful to people. Additionally, there should be enough of it, and it should come out with enough force for everyday activities like cleaning and personal hygiene.

The Legislature hereby finds and declares that it is necessary for the preservation of the health, safety, and welfare of the people of California that water supplied for domestic purposes be pure, wholesome, and potable and does not endanger the health or lives of human beings and that water is available in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes.

Section § 13812

Explanation

This law states that many domestic water systems in California don't meet basic health standards. The government aims to provide technical and financial help to ensure everyone has access to safe, drinkable water, available in enough quantity and pressure for daily needs.

The Legislature further finds and declares that a number of domestic water supply systems are inadequate and do not meet minimum bacteriological, chemical, or other basic health standards for domestic water supplies, and that it is in the interest of the people that the State of California provide technical and financial assistance to the end that the people of California are assured a safe, dependable, and potable supply of water for domestic purposes and that water is available in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes.

Section § 13813

Explanation

This section explains that the Legislature wants all domestic water systems to be improved so they at least meet the basic safety and quality standards for drinking water. These standards are detailed in another part of the law.

The Legislature further finds and declares that it is the intent of the Legislature to provide for the upgrading of domestic water supply systems to assure that all domestic water supplies at least meet minimum domestic water supply standards established under Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.

Section § 13814

Explanation

This section explains that the State General Obligation Bond Law is used for managing the issuance and repayment of certain bonds. Although it adopts this law's rules, it allows bonds under this section to have interest rates determined by the Treasurer, with committee approval. Additionally, bonds can't mature later than 50 years from their issuance date.

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) is adopted for the purpose of the issuance, sale, and repayment of, and otherwise providing with respect to, the bonds authorized to be issued pursuant to this chapter, and the provisions of that law are included in this chapter as though set out in full in this chapter, except that notwithstanding anything in the State General Obligation Bond Law, the bonds authorized hereunder shall bear the rates of interest, or maximum rates, as may, from time to time, be fixed by the Treasurer, with the approval of the committee, and the maximum maturity of bonds shall not exceed 50 years from the date of the bonds, or from the date of each respective series. The maturity of each respective series shall be calculated from the date of the series.

Section § 13815

Explanation

This section defines key terms used in California's Safe Drinking Water laws. It explains what is meant by 'Committee,' referring to the Safe Drinking Water Finance Committee, and 'Department,' which is the Department of Water Resources. A 'domestic water system' is described as a public water system with at least 15 connections or serving at least 25 people. The 'Fund' is the California Safe Drinking Water Fund.

'Supplier' or 'supplier of water' includes anyone who owns or operates a domestic water system. 'Federal assistance' refers to grants or loans from the federal government to improve water systems. 'Treatment works' are devices or systems that make water safe to drink. A 'project' includes any facilities needed to build, improve, or fix a domestic water system.

As used in this chapter, and for purposes of this chapter as used 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), the following terms shall have the following meanings:
(a)CA Water Code § 13815(a) “Committee” means the Safe Drinking Water Finance Committee created by Section 13816.
(b)CA Water Code § 13815(b) “Department” means the Department of Water Resources.
(c)CA Water Code § 13815(c) “Domestic water system” means a system for the provision to the public of piped water for human consumption, if the system has at least 15 service connections or regularly supplies water to at least 25 individuals. The term includes any water supply, treatment, storage, and distribution facilities under the control of the operator of the system.
(d)CA Water Code § 13815(d) “Fund” means the California Safe Drinking Water Fund.
(e)CA Water Code § 13815(e) “Supplier” or “supplier of water” means any person, partnership, corporation, association, or other entity or political subdivision of the state which owns or operates a domestic water system.
(f)CA Water Code § 13815(f) “Federal assistance” means funds available, or which may become available, to a supplier either directly or through allocation by the state from the federal government as grants or loans for the improvement of domestic water systems.
(g)CA Water Code § 13815(g) “Treatment works” means any devices or systems used in the treatment of water supplies, including necessary lands, which render water supplies pure, wholesome, and potable for domestic purpose.
(h)CA Water Code § 13815(h) “Project” means proposed facilities for the construction, improvement, or rehabilitation of the domestic water system, and may include water supply, treatment works, and all or part of a water distribution system, if necessary to carry out the purpose of this chapter.

Section § 13816

Explanation

The law establishes the Safe Drinking Water Finance Committee, composed of the Governor, Treasurer, Director of Finance, Director of Water Resources, and State Director of Health Services or their chosen representatives. The committee can make decisions with a majority of its members.

The Safe Drinking Water Finance Committee is hereby created. The committee shall consist of the Governor, the Treasurer, the Director of Finance, the Director of Water Resources, and the State Director of Health Services or their designated representatives. A majority of the committee may act for the committee.

Section § 13817

Explanation

The law establishes the California Safe Drinking Water Fund in the State Treasury. This fund is specifically created to manage money allocated for ensuring safe drinking water in California.

There is in the State Treasury the California Safe Drinking Water Fund, which fund is hereby created.

Section § 13818

Explanation

This section allows a committee to incur up to $75 million in debt on behalf of the State of California. This money will be used for specific projects detailed in the following section, Section 13819.

The committee may create a debt or debts, liability or liabilities, of the State of California, in an aggregate amount of seventy-five million dollars ($75,000,000) in the manner provided in this chapter. The debt or debts, liability or liabilities, shall be created for the purpose of providing the money to be used for the objects and works specified in Section 13819.

Section § 13819

Explanation

This section outlines the use of funds to support the construction and maintenance of domestic water systems in California. It allows the department to provide loans to suppliers to ensure water systems meet minimum safe drinking water standards. These loans are for covering construction costs, with repayment terms extending up to 50 years, including administrative fees and interest. Suppliers must diligently complete projects, start operations upon completion, and actively seek federal assistance. Additionally, bond proceeds can fund grants up to $25 million for suppliers that can't meet standards on their own. Unissued bonds from the 1976 California Safe Drinking Water Bond Law are redirected to these purposes.

(a)CA Water Code § 13819(a) The moneys in the fund are hereby continuously appropriated and shall be used for the purposes set forth in this section.
(b)CA Water Code § 13819(b) The department may enter into contracts with suppliers having authority to construct, operate, and maintain domestic water systems, for loans to suppliers to aid in the construction of projects that will enable the supplier to meet, at a minimum, safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.
(c)CA Water Code § 13819(c) Any contract entered into pursuant to this section may include provisions as agreed by the parties thereto, and the contract shall include, in substance, all of the following provisions:
(1)CA Water Code § 13819(c)(1) An estimate of the reasonable cost of the project.
(2)CA Water Code § 13819(c)(2) An agreement by the department to loan to the supplier, during the progress of construction or following completion of construction as agreed by the parties, an amount that equals the portion of construction costs found by the department to be eligible for a state loan.
(3)CA Water Code § 13819(c)(3) An agreement by the supplier to repay the state over a period not to exceed 50 years, (A) the amount of the loan, (B) the administrative fee as described in Section 13830, and (C) interest on the principal, that is the amount of the loan plus the administrative fee.
(4)CA Water Code § 13819(c)(4) An agreement by the supplier, (A) to proceed expeditiously with, and complete, the project, (B) to commence operation of the project upon completion thereof, and to properly operate and maintain the project in accordance with the applicable provisions of law, (C) to apply for, and make reasonable efforts, to secure federal assistance for the project, (D) to secure approval of the department and of the State Department of Health Services before applying for federal assistance in order to maximize and best utilize the amounts of that assistance available, and (E) to provide for payment of the supplier’s share of the cost of the project, if any.
(d)CA Water Code § 13819(d) Bond proceeds may be used for a grant program in accordance with this chapter, with grants provided to suppliers that are political subdivisions of the state that are otherwise unable to meet minimum safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code. The total amount of grants made pursuant to this chapter shall not exceed twenty-five million dollars ($25,000,000). The Legislative Analyst shall review the grant program and report to the Legislature not later than June 1, 1987.
(e)CA Water Code § 13819(e) Notwithstanding any other provision, the proceeds of any bonds authorized to be issued under the California Safe Drinking Water Bond Law of 1976 (Chapter 10.5 (commencing with Section 13850)), that are unissued and uncommitted on the effective date of this chapter, shall be used for loans to suppliers in accordance with the terms, conditions, and purposes of this chapter.

Section § 13820

Explanation

This California law allows state grants to be given to local government bodies for construction projects that help them meet safe drinking water standards. The grants come from specific funds and need legislative approval after a report is filed. The contracts for these grants include several key points: 1) an estimated project cost, 2) an agreement on eligible costs for grant funding, and 3) responsibilities for the public agency. These responsibilities include completing the project quickly and properly maintaining it, seeking federal assistance, getting the necessary approvals, and paying their share of costs.

(a)CA Water Code § 13820(a) The department may make state grants to suppliers that are political subdivisions of the state, from moneys in the fund available for that purpose pursuant to subdivision (d) of Section 13819, to aid in the construction of projects that will enable the public agency to meet, at a minimum, safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code. A grant may be made by the department only upon the specific approval of the Legislature, by an act enacted after the receipt of a report filed pursuant to Section 13822.
(b)CA Water Code § 13820(b) Any contract for a grant entered into pursuant to this chapter may include provisions as agreed by the parties thereto, and the contract shall include, in substance, all of the following provisions:
(1)CA Water Code § 13820(b)(1) An estimate of the reasonable cost of the project.
(2)CA Water Code § 13820(b)(2) An agreement by the department to grant to the public agency, during the progress of construction or following completion of construction as agreed by the parties, an amount that equals the portion of construction costs found by the department to be eligible for a state grant.
(3)CA Water Code § 13820(b)(3) An agreement by the public agency, (A) to proceed expeditiously with, and complete, the project, (B) to commence operation of the project upon completion thereof, and to properly operate and maintain the project in accordance with the applicable provisions of law, (C) to apply for, and make reasonable efforts to secure, federal assistance for the project, (D) to secure approval of the department and of the State Department of Health Services before applying for federal assistance in order to maximize and best utilize the amounts of that assistance available, and (E) to provide for payment of the public agency’s share of the cost of the project, if any.

Section § 13821

Explanation

If you want to apply for grants discussed in this chapter, you must submit your application to the designated department following the specific format and with the required materials that the department asks for.

Applications for grants under this chapter shall be made to the department in the form and with the supporting material as prescribed by the department.

Section § 13822

Explanation

This law requires the department to create a report for every grant application related to this chapter. The report needs to be sent to the Legislature while it's in session. If the Legislature isn't in session, the report goes to the Rules Committee of both the Assembly and Senate. The department can award the grant only after the Legislature specifically approves it through a new law enacted after they receive the report.

The department shall prepare a report on each grant application pursuant to this chapter. The report shall be filed with the Legislature, if it is in session or, if it is not in session, with the Rules Committee of the Assembly and Senate. The department shall be authorized to make the grant only upon the specific approval of the grant by the Legislature, by an act enacted after the receipt of the report from the department.

Section § 13823

Explanation

This law outlines that loans and grants can be provided for projects involving domestic water systems. The state allows adjustments for future supply needs and covers costs linked to building, improving, or repairing water systems necessary for clean, safe, and adequate water. Public agencies can get up to $400,000, while individual suppliers can apply for loans up to $5 million, unless the limit is increased by legislation. Loans can also be for buying water systems or land.

When an application for a grant or loan is submitted, the department advises applicants on cost-effective water conservation improvements, which might include leak repairs, equipment replacements, and installing water-saving devices. These improvements can be part of the grant or loan, but their absence won't prevent approval.

(a)CA Water Code § 13823(a) Loans and grants may be made only for projects for domestic water systems. The department may make reasonable allowance for future water supply needs and may provide for additional capacity when excessive costs would be incurred by later enlargement. The loans and grants may be made for all, or any part, of the cost of constructing, improving, or rehabilitating any system when, in the judgment of the State Department of Health Services, improvement or rehabilitation is necessary to provide pure, wholesome, and potable water in adequate quantity at sufficient pressure for health, cleanliness, and other domestic purposes. No single public agency shall receive grants pursuant to this chapter totaling more than four hundred thousand dollars ($400,000). Loans may be made to provide for the purchase of a water system or the purchase of watershed lands. No loan to an individual supplier shall exceed the sum of five million dollars ($5,000,000), unless the Legislature by an act raises the limit specified in this section.
(b)CA Water Code § 13823(b) Upon receipt of an application for a grant or loan pursuant to this chapter, the department shall propose to the applicant improvements to the applicant’s water development, distribution, and utilization system which will conserve water in a cost-effective manner. These improvements may include, but need not be limited to, leak detection and repair programs, valve repair and replacement, meter calibration and replacement, physical improvements to achieve corrosion control, distribution and installation of water conservation devices and fixtures, and other capital improvements which can be demonstrated to conserve water in a cost-effective manner. The department and applicant may agree to include these capital improvements in the grant or loan. Failure by the applicant to include water conservation capital improvements in the grant or loan application shall not be sufficient cause for the department to refuse to make the grant or loan.

Section § 13824

Explanation

In California, a public agency can't get a grant for safe drinking water unless they can't meet safety standards otherwise. The agency must have their project plans approved by the State Department of Health Services, and they need to get the right permits before any grant is given.

An application for a grant pursuant to this chapter shall not be approved by the department, unless the department determines that the public agency is otherwise unable to meet minimum safe drinking water standards established pursuant to Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.
No grant shall be made by the department except upon approval by the State Department of Health Services of project plans submitted by the applicant and upon issuance to the public agency of a permit or amended permit as specified in Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code.

Section § 13825

Explanation

This section says that when giving grants, priority should be given to public agencies that are dealing with immediate health-related problems, as confirmed by the State Department of Health Services. Projects aimed at fixing current issues should be prioritized over those intended to accommodate future growth.

First priority for grants shall be granted to public agencies having immediate health related problems, as certified by the State Department of Health Services. Additional high priority shall be granted to projects to correct immediate problems, as opposed to grants for construction of projects to meet future growth needs.

Section § 13826

Explanation

This law states that when it comes to providing loans, the top priority should be given to water suppliers dealing with the most severe public health issues. Suppliers who have fewer financial resources to improve their systems should also be prioritized for loans.

First priority for loans shall be given to suppliers with the most critical public health problems. Priority for loans shall also be given to suppliers which have a lesser capability to reasonably finance system improvements.

Section § 13827

Explanation

Before any loan or grant is given for a project, the initial design work and cost estimation need to be completed. The supplier must cover the cost of operating and maintaining the project, and these costs can't be included in the project expenses. However, if the project receives a loan or grant, costs for planning and preliminary engineering studies can be refunded after approval from the relevant departments.

Preliminary design work, including a cost estimate for the project, shall be completed before a loan or grant is awarded. Operation and maintenance costs shall be the responsibility of the supplier and may not be considered as part of the project cost. Costs for planning and preliminary engineering studies may be reimbursed following the receipt of a loan or grant subject to approval by the department and the State Department of Health Services.

Section § 13828

Explanation

To apply for a grant under this chapter, a public agency must first apply for a loan. A grant is available only if the agency cannot repay the entire loan amount. If the agency can't cover the full loan cost, they can apply for a grant. The department will assess how much of the loan the agency can repay. The grant will cover only the part of the loan they can't pay back.

No application for a grant may be made pursuant to this chapter unless the public agency has also applied for a loan pursuant to this chapter. A public agency shall be eligible for a grant only to the extent that the department finds that the agency is found unable to repay the full costs of a loan.
If the department has determined that the applicant is unable to repay the full costs of a loan, the applicant may also file for a grant. Upon receipt of a grant application, the department shall determine that portion of the full costs that the applicant is capable of repaying. Grant funds shall only be provided for that portion that the applicant is not capable of repaying.

Section § 13829

Explanation

This law section requires a public agency to spend grant funds within three years. However, before spending any funds, the agency must show the department that, within one year, they have a bid proving the project costs are within 20% of their initial estimates.

Grant funds shall be expended by the public agency within three years of the making of the grant. No grant funds may be expended by the public agency unless the public agency is able to demonstrate to the department, within one year of the making of the grant, supported by an acceptable bid, that the amount to be expended for the project will be within 20 percent of the public agency’s cost estimate for the project.

Section § 13830

Explanation

This section sets financial limits on administrative costs related to state water-related activities. The total administrative spending by state departments for these activities cannot exceed 4% of the bonds issued under this chapter. Also, administrative fees from loans must help cover these state costs. Additionally, the costs for the Attorney General to handle any legal issues related to grants and loans, including those from the 1976 water bond law, are to be paid from bond proceeds but are not part of the 4% cap. Instead, these legal costs are capped at 1.5% of the bond total and considered program expenses.

For the purpose of administering of this chapter, the total expenditures of the department and the State Department of Health Services may not exceed 4 percent of the total amount of the bonds authorized to be issued under this chapter. The department shall establish a reasonable schedule of administrative fees for loans, which fees shall be paid by the supplier pursuant to Section 13819, to reimburse the state for the costs of state administration of this chapter.
Charges incurred by the Attorney General in protecting the state’s interests in the use and repayment of grant and loan funds under this chapter, and under the California Safe Drinking Water Bond Law of 1976 (Chapter 10.5 (commencing with Section 13850)), shall be paid from the proceeds of bond sales under this chapter. These charges shall not be paid be from the 4 percent allocated for administrative purposes, but shall be treated as a program expense not to exceed 1.5 percent of the total amount of the bonds authorized to be sold under this chapter.

Section § 13831

Explanation

This law states that money from a specific fund can be used to pay back the General Obligation Bond Expense Revolving Fund, following the rules set out in another part of the government code.

As much of the moneys in the fund as may be necessary shall be used to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code.

Section § 13832

Explanation

This law allows a borrower to postpone repaying the principal amount of a loan, which includes the loan itself and an administrative fee, for up to 10 years if the department considers it necessary. However, interest on the principal cannot be postponed. Once the development period ends, the deferred principal can be repaid in yearly installments over the rest of the 50-year repayment term, if the borrower chooses to do so.

Repayment of all or part of the principal, which is the loan plus the administrative fee, may be deferred during a development period not exceeding 10 years within the maximum 50-year repayment period, when, in the department’s judgment, the development period is justified under the circumstances. Interest on the principal shall not be deferred. Repayment of principal which is deferred during a development period may, at the option of the supplier, be paid in annual installments during the remainder of the loan repayment period.

Section § 13833

Explanation

If you get a loan through this program, you'll have to pay interest. The interest rate is based on the average cost to the state of selling certain bonds. If this rate isn't a nice round number, it will be rounded up to the nearest one-tenth of a percent.

The department shall require the payment of interest on each loan that is made pursuant to this chapter at a rate equal to the average, as determined by the Treasurer, of the net interest cost to the state on the sales of general obligation bonds pursuant to this chapter. However, when the applicable average of the net interest costs to the state is not a multiple of one-tenth of 1 percent, the interest rate shall be at the multiple of one-tenth of 1 percent next above the applicable average of the net interest costs.

Section § 13834

Explanation

This law requires the department, with input from the State Department of Health Services, to create rules to achieve the goals of this chapter. These rules should outline how a water supplier can qualify for eligibility under this program. The department aims to ensure Californians receive safe and affordable drinking water by creating and enforcing these rules.

The regulations can also include provisions for denying funding if there are more cost-effective and efficient ways to meet the chapter's objectives without building the proposed project.

The department, after public notice and hearing and with the concurrence of the State Department of Health Services, shall adopt rules and regulations necessary to carry out the purposes of this chapter. The regulations shall include, but not be limited to, criteria and procedures for establishing the eligibility of a supplier.
It is the duty of the department to adopt rules and regulations that, in its judgment, will most effectively carry out the provisions of this chapter in the public interest, to the end that the people of California are most efficiently and most economically provided supplies of pure, wholesome, and potable domestic water. The rules and regulations may provide for the denial of funds when the purposes of this chapter may most economically and efficiently be attained by means other than the construction of the proposed project.

Section § 13835

Explanation

This law requires the State Department of Health Services to inform potential loan-eligible suppliers about the aims of the loan program and the related rules and regulations.

The State Department of Health Services shall notify suppliers that may be eligible for loans pursuant to this chapter of (a) the purposes of this chapter and (b) the rules and regulations adopted by the department.

Section § 13836

Explanation

The State Department of Health Services is responsible for creating a list of suppliers who might get financial support. This process involves giving a public notice, holding a hearing, and getting advice from another department. The priority list is updated periodically.

The State Department of Health Services, after public notice and hearing and with the advice of the department, shall, from time to time, establish a priority list of suppliers to be considered for financing.

Section § 13837

Explanation
This law section explains that after a water supplier's project plans are approved by the State Department of Health Services and they receive the necessary permits under health and safety regulations, the department can then contract with the supplier.
Upon approval by the State Department of Health Services of project plans submitted by a supplier on the priority list and upon issuance to the supplier of a permit or amended permit as specified in Chapter 4 (commencing with Section 116275) of Part 12 of Division 104 of the Health and Safety Code, the department may enter into a contract with the supplier.

Section § 13838

Explanation

This law states that the California Department of Water Resources can only approve up to $20 million in state loans for projects every three months. Before approving a contract, the department must confirm that the supplier can repay the loan. Additionally, if requested, the Public Utilities Commission will provide feedback on whether the supplier can pay for the project through other means and their ability to repay the loan.

Not more than twenty million dollars ($20,000,000) of state loans for projects shall be authorized by the department in a single calendar quarter. No contract shall be approved by the department, unless the department finds that the supplier has the capacity to repay the loan amounts specified in the contract.
At the request of the department, the Public Utilities Commission shall furnish comments concerning the ability of suppliers subject to its jurisdiction to finance the project from other sources and the ability to repay the loan.

Section § 13839

Explanation

This law states that bonds issued following this chapter are officially recognized as binding responsibilities of the State of California. The state promises to ensure timely payment of both principal and interest on these bonds by using its full resources.

Each year, extra funds must be collected alongside regular state revenue to cover bond payments. It's the responsibility of revenue officers to make sure this money is collected. Additionally, money from bond sale premiums can be used to help pay bond interest by transferring it to the General Fund.

All bonds authorized, which have been duly sold and delivered pursuant to this chapter, shall constitute valid and legally binding general obligations 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 and interest thereon.
There shall be collected annually in the same manner, and at the same time as other state revenue is collected, a sum, in addition to the ordinary revenues of the state, that is required to pay the principal and interest on the bonds, and it is hereby made the duty of all officers charged by law with any duty in regard to the collection of that revenue, to do and perform each and every act which shall be necessary to collect that additional sum.
All money deposited in the fund which has been derived from premium on bonds sold is available for transfer to the General Fund as a credit to expenditures for bond interest.

Section § 13840

Explanation

This law says that any money the state gets back from certain contracts must be put into the General Fund. This money will then be used to pay back the General Fund for the principal and interest on bonds that have been issued and paid from this fund.

All money repaid to the state pursuant to any contract executed under Section 13819 shall be deposited in the General Fund and, when so deposited, shall be applied as a reimbursement to the General Fund on account of principal and interest on bonds issued pursuant to this chapter which has been paid from the General Fund.

Section § 13841

Explanation

This law section states that money will be taken from the state's General Fund to cover specific financial needs related to this chapter. Firstly, it ensures there is enough money each year to pay off both the principal and interest on bonds that were issued and sold under this chapter as they come due. Secondly, it provides the necessary funds at any time, without being restricted by fiscal year limits, to fulfill the requirements of Section 13842.

There is hereby appropriated from the General Fund in the State Treasury, for the purpose of this chapter, an amount equal to the sum of the following:
(a)CA Water Code § 13841(a) The amount annually necessary to pay the principal of, and the interest on, the bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable.
(b)CA Water Code § 13841(b) The amount necessary to carry out Section 13842, which amount is appropriated without regard to fiscal years.

Section § 13842

Explanation

This law allows the Director of Finance to use money from the General Fund temporarily before bonds are sold. This money is used for the projects outlined in the chapter. Once the bonds are sold, the money taken from the General Fund must be paid back with the bond sale proceeds.

For the purpose of carrying out this chapter, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of an amount or amounts not to exceed the amount of the unsold bonds which the committee has, by resolution, authorized to be sold for the purpose of carrying out this chapter.
Any amounts withdrawn shall be deposited in the fund and shall be disbursed by the department in accordance with this chapter. Any money made available under this section to the department shall be returned by the department to the General Fund from money received from the first sale of bonds sold for the purpose of carrying out this chapter subsequent to the withdrawal.

Section § 13842.5

Explanation

This law allows the California Treasurer to manage the funds from certain bonds in specific ways to ensure their interest remains tax-exempt under federal law. If the bonds are sold with a legal opinion affirming their tax-exempt status, the Treasurer can create separate accounts for the bond money and any related earnings. This enables the Treasurer to handle any necessary payments, such as penalties or rebates, as required by federal law to maintain the bonds’ tax benefits.

Notwithstanding any other provision of this bond act, or of 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), if the Treasurer sells bonds pursuant to this bond act that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes under designated conditions, the Treasurer may maintain separate accounts for the bond proceeds invested and the investment earnings on those proceeds, and may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law, or take any other action with respect to the investment and use of those bond proceeds, as may be required or desirable under federal law in order 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.

Section § 13843

Explanation

This section talks about how the committee must decide if it's necessary or beneficial to issue bonds when the department requests it. These bonds help fund proposed projects outlined in another section (Section 13819). The committee determines the bond amount needed, and not all bonds have to be issued at once; they can be issued progressively as needed.

Upon request of the department, supported by a statement of the proposed arrangements to be made pursuant to Section 13819 for the purposes stated therein, the committee shall determine whether or not it is necessary or desirable to issue any bonds authorized under this chapter in order to make those arrangements, and, if so, the amount of bonds then to be issued and sold. Successive issues of bonds may be authorized and sold to make those arrangements progressively, and it shall not be necessary that all of the bonds authorized to be issued shall be sold at any one time.

Section § 13844

Explanation

This law section explains that a committee can give permission to the Treasurer to sell either some or all of the bonds that have been approved. The Treasurer decides when to sell them.

The committee may authorize the Treasurer to sell all or any part of the bonds authorized at the time or times as fixed by the Treasurer.

Section § 13845

Explanation

The money made from selling certain bonds can only be used for specific purposes outlined in another part of the law (Section 13819). This money cannot be moved to the General Fund to pay off bond debts. It must be spent in the ways described in this chapter of the law.

All proceeds from the sale of bonds, except those derived from premiums and accrued interest, are available for the purpose provided in Section 13819, but are not available for transfer to the General Fund to pay principal and interest on bonds. The money in the fund may be expended only as provided in this chapter.