This section establishes the name of the law, which is the California Safe Drinking Water Bond Law of 1986.

This section highlights issues with toxic chemicals found in California's large public drinking water systems, which can cause serious health problems such as cancer and birth defects. Despite efforts to improve water systems following the Safe Drinking Water Bond Law of 1984, more funding is essential to address health hazards adequately. The state identifies a need for an additional $500 million to help bring water systems up to minimum health standards. New monitoring programs for small systems are also expected to reveal further contamination issues, which will likely require state financial aid to address.

This law emphasizes the need for safe, clean drinking water for everyone in California. It states that the state should offer technical and financial help to ensure that water is always safe to drink and available with enough pressure for everyday use like health and cleanliness.

This section states that the California Legislature aims to improve domestic water supply systems. The goal is to ensure that all water used in homes meets at least the minimum safety standards as specified in the Health and Safety Code.

This section explains how the State General Obligation Bond Law applies to bonds issued under this chapter. It says that these bonds can have interest rates determined by the Treasurer with committee approval, and they can't take more than 50 years to be fully paid back. The time to pay each bond series starts from when that series is issued.

This section defines key terms used in the context of safe drinking water finance and bond laws in California. The "Committee" refers to the Safe Drinking Water Finance Committee, and the "Department" is the Department of Water Resources. A "domestic water system" serves public water for human use, having at least five connections or regularly serving 25 people, including facilities for supply, treatment, storage, and distribution. A "supplier" is anyone who owns or runs such a system. "Federal assistance" refers to financial aid from the federal government for improving water systems. "Treatment works" are facilities that clean water to make it safe for drinking. A "project" involves the construction or improvement of the water system. A "public agency" could refer to various government bodies, like cities or counties, that own or manage water systems.

This law establishes the Safe Drinking Water Finance Committee, which is made up of the Governor, Treasurer, Director of Finance, Director of Water Resources, and State Director of Health Services or their representatives. The committee can make decisions as long as the majority agree.

This law section establishes the California Safe Drinking Water Fund in the State Treasury.

This law allows a committee to authorize the State of California to take on debt up to $100 million. The purpose of this debt is to fund specific projects detailed in the following section, Section 13895.9.

This law states that $100 million from a specified fund are continuously allocated for projects to help suppliers build domestic water systems that meet safe drinking water standards. The Department can contract with suppliers for loans to cover construction costs of these projects. Contracts must outline project costs, loan amounts, repayment terms over up to 50 years, and the supplier's obligations to complete and maintain the project. Suppliers are also encouraged to seek federal aid. A separate $25 million is available for grants to state political subdivisions that can't meet safe drinking water standards otherwise.

Additionally, unissued bond proceeds from previous drinking water legislation can be used under this chapter's terms, with loans after a specific date having a specified interest rate.

This law allows the California Department of Water Resources to give grants to public water suppliers to help with the construction of projects that meet safe drinking water standards. The grants can only be approved after the Legislature has specifically given the okay.

Any grant agreement must include an estimated project cost, a commitment from the department to fund eligible costs during or after construction, and the public agency's agreement to efficiently complete and maintain the project. The public agency must also try to get federal aid and get approval from the appropriate agencies before applying for such assistance. They must also handle any costs that aren't covered by the grant.

If you want to apply for a grant under this specific chapter, you need to submit an application to the department. The application must follow the specific format and include the materials that the department requires.

This section states that the department must prepare a report for each grant application under this chapter. This report needs to be submitted to the Legislature while it is in session, or to the Joint Rules Committee when the Legislature is not in session. The department can only award the grant if the Legislature specifically approves it through a new law after reviewing the report.

This law allows loans and grants for projects that improve domestic water systems in California. These financial supports are provided to ensure access to clean, drinkable water that is sufficient in both quantity and pressure for household use. The State Department of Health Services evaluates whether improvements or expansions are necessary and cost-effective, and loans can be given for purchasing water systems or watershed lands. However, grants to any public agency cannot exceed $400,000, and individual supplier loans cannot exceed $5 million unless increased by the Legislature.

When a grant or loan application is submitted, the department suggests feasible updates that conserve water in a cost-efficient way, which can include fixing leaks, replacing valves, and other infrastructure upgrades. These improvements can be included in the grant or loan agreement, though not including them won't disqualify the funding request.

This section states that a public agency's application for a grant to improve drinking water standards won't be approved unless the agency can't meet the necessary safe drinking water standards on its own, as dictated by certain health codes.

The agency must also have its project plans approved by the State Department of Health Services, and the proposed project must align with specific health and safety requirements.

This law section specifies that grant funding should first go to public agencies dealing with urgent health problems, as confirmed by the State Department of Health Services. Projects that solve immediate issues are also given high priority over those aimed at supporting future growth.

This law says that when loans are given out, suppliers facing the most serious public health issues should be prioritized first. Additionally, priority should also go to suppliers who struggle to afford improvements to their systems on their own.

This law states that before awarding a loan or grant for a project, the preliminary design work and a cost estimate must be completed. The supplier is responsible for covering operation and maintenance costs, and these are not included as part of the project costs. Planning and preliminary engineering study costs can be reimbursed after receiving a loan or grant, but only if approved by the department and the State Department of Health Services.

This law states that a public agency can't apply for a grant without also applying for a loan under the same chapter. The agency is only eligible for a grant if the department determines it can't repay the entire loan.

If deemed unable to pay back the full loan, the agency can request a grant. The department will decide how much of the loan the agency can actually repay, and grant money will cover the remaining costs that the agency can't afford.

This law requires that any grant given to a public agency must be spent within three years. Additionally, within one year of receiving the grant, the public agency must show the department an acceptable bid proving that the project's costs will not exceed 20% more than their initial estimate.

This law section limits administrative spending for managing bond funds related to water project financing. Administrative costs must not exceed 5% of the total bonds issued. To cover these expenses, the department charges fees to loan recipients. Additionally, costs incurred by the Attorney General to protect state interests in grants and loans come from bond proceeds but can't exceed 1.5% of bond totals and are considered separate program expenses.

This section states that money from the fund has to be used to pay back the General Obligation Bond Expense Revolving Fund as outlined in another part of the law (Section 16724.5 of the Government Code).

This law allows a borrower to defer repaying the principal amount of a loan, including fees, for up to 10 years if the situation warrants it, but they must still pay interest during this time. The total repayment must be completed within 50 years.

During the deferral period, borrowers have the choice to pay back the deferred principal in annual payments once the deferral period is over.

This law requires the department to set an annual interest rate for certain loans at half the rate the state pays on its general obligation bonds from the previous year. Once set, this interest rate applies to all loans made in that year and remains fixed for the life of each loan.

This California law section outlines the responsibilities of the department overseeing water supplies. It mandates creating rules and regulations to ensure Californians receive safe and clean drinking water. The department must host public notices and hearings and collaborate with the State Department of Health Services. They should form criteria for suppliers' eligibility and focus on cost-efficient methods. Existing regulations from the 1984 Safe Drinking Water Bond Law can be used, but they can also be revised when needed to align with newer laws.

This law requires the State Department of Health Services to inform potential loan-eligible suppliers about the chapter's objectives and the relevant rules and regulations.

The State Department of Health Services is responsible for creating a priority list of water suppliers eligible for financing, which is updated occasionally after public notice and input.

Despite any legal changes, the current priority list under the California Safe Drinking Water Bond Law of 1984 can continue to be used until a new list is adopted, if voters support this chapter.

This law states that the department can approve up to $25 million in state loans for projects each calendar quarter. However, a contract can only be approved if the department is certain that the supplier can repay the loan. Additionally, the Public Utilities Commission may be asked to provide opinions on whether suppliers under its jurisdiction can secure funding from other sources and repay the loan.

This law explains that when California sells bonds, these become binding promises that the state will repay both the initial amount borrowed (the principal) and the interest. California promises to back these bonds with its full financial strength. Each year, extra funds are to be collected alongside other state revenues to ensure these bond payments are met.

State officers are responsible for ensuring these extra funds are collected. Additionally, any money made from premiums on these bonds can be moved to help cover bond interest expenses.

This law explains how funds are managed and used for water system improvements in California. Money repaid to the state from contracts related to water projects is put back into the state’s General Fund to cover bond costs. The Department of Water Resources can give grants or short-term loans to water suppliers to explore better water systems, but no more than $25,000 per investigation. The State Department of Health Services must check that investigations are needed and proper. Contracts for loans must include specific terms, with a payback period of up to 24 months. The law caps total spending on these projects at $3 million, with $1 million available for grants to public agencies. Importantly, these allocations do not impact the availability of other funds under similar chapters.

This section states that money is set aside from California's main bank account (called the General Fund) to cover two things. First, it ensures there’s enough money each year to pay back the main amount and interest on bonds that were sold. Second, it makes sure there’s money available for specific activities mentioned in the related legal section, and this money doesn't rely on the annual budget timeline.

This law allows the Director of Finance to authorize the withdrawal of funds from the General Fund, but only up to the amount of unsold bonds that have been approved for sale. These funds are to be used for the activities described in this chapter and will be placed in a specific fund. The department must return the withdrawn money, plus any interest it would have earned, back to the General Fund as soon as the bonds are sold and the proceeds are received.

This section allows the Treasurer of California to manage bond funds in a specific way to ensure that the bonds' interest stays tax-free at the federal level. If the bonds are sold with an assurance from bond counsel that the interest is tax-exempt, the Treasurer can set up separate accounts for these bond proceeds and their earnings. The Treasurer can also use these funds to make any necessary federal payments or actions to maintain the bonds' tax-exempt status and secure any other federal benefits for the state's funds.

This section explains the process for issuing bonds. If the department needs to make arrangements under Section 13895.9, it can ask the committee to decide if issuing bonds is necessary or helpful. The committee also decides how many bonds should be issued and sold at a time. Bonds can be issued in stages if needed, and there's no requirement to sell all the authorized bonds at once.

This law section allows a committee to give the Treasurer permission to sell some or all of the bonds whenever the Treasurer decides it's appropriate.

This law states that the money received from selling bonds, excluding premiums and accrued interest, is reserved specifically for certain uses outlined in Section 13898.5. However, this money cannot be moved to the General Fund to pay off bond debts, and it can only be spent according to the rules in this chapter.