This chapter shall be known and may be cited as the Water Conservation and Water Quality Bond Law of 1986.
Chapter 6.1Water Conservation and Water Quality Bond Law of 1986
Section § 13450
This section refers to a specific law titled the Water Conservation and Water Quality Bond Law of 1986. It establishes the name by which this law can be cited or referred to in legal contexts.
Water Conservation Water Quality Bond Law 1986 legal citation environmental protection water resource management California water law public infrastructure sustainability aquatic ecosystems water pollution state legislation clean water initiatives water conservation funding
Section § 13451
This law emphasizes how essential clean water is for public health, the environment, and California's economy. It highlights the need to protect water resources from pollution and recharge groundwater. Local agencies usually handle water treatment and conservation, but rising costs make it difficult for them to afford these projects alone. The state aims to support local efforts by funding facilities for treating and storing agricultural drainage water, as well as water conservation and groundwater recharge programs. These programs should be cost-effective and collaboratively managed by local agencies and the department.
The Legislature finds and declares all of the following:
(a)CA Water Code § 13451(a) An abundant supply of clean water is essential to the public health, safety, and welfare.
(b)CA Water Code § 13451(b) An abundant supply of clean water fosters the beauty of California’s environment, the expansion of industry and agriculture, maintains fish and wildlife, and supports recreation.
(c)CA Water Code § 13451(c) The state’s growing population has increasing needs for clean water supplies and adequate treatment facilities.
(d)CA Water Code § 13451(d) It is of paramount importance that the water resources of the state be protected from pollution and conserved, and that the groundwater basins of the state be recharged whenever possible to ensure continued economic, community, and social growth.
(e)CA Water Code § 13451(e) The chief cause of water pollution is the discharge of inadequately treated waste into the waters of the state.
(f)CA Water Code § 13451(f) Local agencies have the primary responsibility for the construction, operation, and maintenance of facilities to cleanse our waters, to conserve water, and recharge groundwater basins.
(g)CA Water Code § 13451(g) Rising costs of construction have pushed the costs of constructing treatment facilities and facilities to conserve water and recharge groundwater basins beyond the ability of local agencies to pay.
(h)CA Water Code § 13451(h) Because water knows no political boundaries, it is desirable for the state to contribute to the construction of these facilities in order to meet its obligations to protect and promote the health, safety, and welfare of its people and the environment.
(i)CA Water Code § 13451(i) Voluntary, cost-effective capital outlay water conservation programs can help meet growing demand for clean and abundant water supplies.
(j)CA Water Code § 13451(j) Recharge of groundwater basins is an effective way to maximize availability of scarce water supplies throughout the state.
(k)CA Water Code § 13451(k) California’s abundant streams, rivers, bays, estuaries, and groundwater are threatened with pollution from agricultural drainage water which could threaten public health and fish and wildlife resources and impede economic and social growth if left unchecked. Proper containment structures and treatment facilities could provide for the handling of agricultural drainage water in an environmentally sensitive manner.
(l)Copy CA Water Code § 13451(l)
(1)Copy CA Water Code § 13451(l)(1) It is the intent of this chapter to provide funds for the construction of cost-effective containment structures and treatment facilities for the treatment, storage and disposal of agricultural drainage water.
(2)CA Water Code § 13451(l)(2) It is the further intent of this chapter to provide funds for voluntary, cost-effective capital outlay water conservation programs and groundwater recharge facilities cooperatively carried out by local agencies and the department.
clean water public health water pollution groundwater recharge local agencies treatment facilities water conservation programs agricultural drainage environmental protection economic growth state funding infrastructure costs cross-jurisdictional water management groundwater preservation cost-effective solutions
Section § 13452
This section defines specific terms used in relation to water resources management under the State General Obligation Bond Law. The 'Board' is the State Water Resources Control Board, and the 'Committee' refers to a specific finance committee for water conservation and quality. The 'Department' highlights the Department of Water Resources. Key aspects covered include 'Drainage water management units,' which are lands or facilities to manage agricultural drainage water to prevent pollution. These can consist of impoundments, conveyance facilities, treatment facilities, and injection wells.
'Groundwater recharge facilities' are areas and methods for artificially recharging groundwater such as percolation and well injection. 'In-lieu recharge' involves using surface water to spare groundwater. 'Local agency' includes any political subdivision dealing with water management. 'Projects' cover groundwater recharge, voluntary water conservation programs, and drainage management. These conservation programs improve water use efficiency with benefits outweighing costs.
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 words have the following meanings:
(a)CA Water Code § 13452(a) “Board” means the State Water Resources Control Board.
(b)CA Water Code § 13452(b) “Committee” means the Water Conservation and Water Quality Finance Committee created by Section 13454.
(c)CA Water Code § 13452(c) “Department” means the Department of Water Resources.
(d)CA Water Code § 13452(d) “Drainage water management units” mean land and facilities for the treatment, storage, or disposal of agricultural drainage water which, if discharged untreated, would pollute or threaten to pollute the waters of the state.
(1)CA Water Code § 13452(d)(1) Drainage water management units may include any of the following:
(A)CA Water Code § 13452(d)(1)(A) A surface impoundment which is a natural topographic depression, artificial excavation, or diked area formed primarily of earthen materials, which is designed to hold an accumulation of drainage water, including, but not limited to, holding, storage, settling, and aeration pits, evaporation ponds, percolation ponds, other ponds, and lagoons. Surface impoundment does not include a landfill, a land farm, a pile, an emergency containment dike, tank, or injection well.
(B)CA Water Code § 13452(d)(1)(B) Conveyance facilities to the treatment or storage site, including devices for flow regulation.
(C)CA Water Code § 13452(d)(1)(C) Facilities or works to treat agricultural drainage water to remove or substantially reduce the level of constituents which pollute or threaten to pollute the waters of the state, including, but not limited to, processes utilizing ion exchange, desalting technologies like reverse osmosis, and biological treatment.
(D)CA Water Code § 13452(d)(1)(D) An injection well.
(2)CA Water Code § 13452(d)(2) Any or all of the drain water management units, including the land under the unit, may consist of separable features, or an appropriate share of multipurpose features, of a larger system, or both.
(e)CA Water Code § 13452(e) “Fund” means the 1986 Water Conservation and Water Quality Bond Fund.
(f)CA Water Code § 13452(f) “Groundwater recharge facilities” mean land and facilities for artificial groundwater recharge through methods which include, but are not limited to, (1) percolation using basins, pits, ditches and furrows, modified streambed, flooding, and well injection or (2) in-lieu recharge. “Groundwater recharge facilities” also mean capital outlay expenditures to expand, renovate, or restructure land and facilities already in use for the purpose of groundwater recharge.
Groundwater recharge facilities may include any of the following:
(1)CA Water Code § 13452(1) Instream facilities for regulation of water levels, but not regulation of streamflow by storage to accomplish diversion from the waterway.
(2)CA Water Code § 13452(2) Agency-owned facilities for extraction.
(3)CA Water Code § 13452(3) Conveyance facilities to the recharge site, including devices for flow regulation and measurement of recharge waters.
Any part or all of the project facilities, including the land under the facilities, may consist of the separable features, or an appropriate share of multipurpose features, of a larger system, or both.
(g)CA Water Code § 13452(g) “In-lieu recharge” means accomplishing increased storage of groundwater by providing interruptible surface water to a user who relies on groundwater as a primary supply, to accomplish groundwater storage through the direct use of that surface water in lieu of pumping groundwater. In-lieu recharge would be used rather than continuing pumping while artificially recharging with the interruptible surface waters. However, bond proceeds shall not be used to purchase surface water for use in lieu of pumping groundwater.
(h)CA Water Code § 13452(h) “Local agency” or “agency” means any city, county, district, joint powers authority, or other political subdivision of the state involved with water management.
(i)CA Water Code § 13452(i) “Project” means all of the following:
(1)CA Water Code § 13452(i)(1) Groundwater recharge facilities.
(2)CA Water Code § 13452(i)(2) Voluntary, cost-effective capital outlay water conservation programs.
(3)CA Water Code § 13452(i)(3) Drainage water management units.
(j)CA Water Code § 13452(j) “Voluntary, cost-effective capital outlay water conservation programs” mean those feasible capital outlay measures to improve the efficiency of water use through benefits which exceed their costs. The programs include, but are not limited to, lining or piping of ditches; improvements in water distribution system controls such as automated canal control, construction of small reservoirs within distribution systems which conserve water that has already been captured for use, and related physical improvements; tailwater pumpback recovery systems; major improvements or replacements of distribution systems to reduce leakage; and capital changes in on-farm irrigation systems which improve irrigation efficiency such as sprinkler or subsurface drip. In each case, the department shall determine that there is a net savings of water as a result of each proposed project and that the project is cost effective.
State Water Resources Control Board Water Conservation and Water Quality Finance Committee Department of Water Resources Drainage water management Agricultural drainage management Surface impoundment Groundwater recharge In-lieu recharge Artificial groundwater recharge Local water agency Water management projects Voluntary water conservation programs Water use efficiency Irrigation system improvements Tailwater pumpback recovery
Section § 13453
This law creates a special fund called the 1986 Water Conservation and Water Quality Bond Fund in the State Treasury. It includes a Water Conservation and Groundwater Recharge Account for certain projects and an Agricultural Drainage Water Account for others. These accounts are meant to support specific water conservation and quality efforts.
There is hereby created the 1986 Water Conservation and Water Quality Bond Fund in the State Treasury. There shall be established in the fund a Water Conservation and Groundwater Recharge Account for the purpose of implementing Section 13458, and an Agricultural Drainage Water Account for the purpose of implementing Section 13459.
1986 Water Conservation Bond Fund Water Quality Bond Fund State Treasury fund Water Conservation Account Groundwater Recharge Account Agricultural Drainage Water Account Section 13458 Section 13459 water conservation projects groundwater recharge projects agricultural drainage management California water resources environmental funding water quality improvement state treasury accounts
Section § 13454
This law establishes the Water Conservation and Water Quality Finance Committee, which is made up of several key state officials, including the Governor or their representative, the Controller, the Treasurer, the Director of Finance, the Director of the Department of Water Resources, and the Executive Director of the State Water Resources Control Board. This committee is recognized as the 'committee' within the context of the State General Obligation Bond Law.
(a)CA Water Code § 13454(a) There is a Water Conservation and Water Quality Finance Committee consisting of the Governor or the Governor’s designated representative, the Controller, the Treasurer, the Director of Finance, the Director of the Department of Water Resources, and the Executive Director of the State Water Resources Control Board.
(b)CA Water Code § 13454(b) The Water Conservation and Water Quality Finance Committee is the “committee” as that term is used in the State General Obligation Bond Law.
Water Conservation Water Quality Finance Committee Governor representative Controller Treasurer Director of Finance Department of Water Resources State Water Resources Control Board General Obligation Bond Law water finance state finance committee California water governance public finance state officials committee
Section § 13455
This regulation allows a committee in California to create up to $150 million in state debt to fund certain projects specified in this and related sections. The department can make rules and form contracts essential for implementing these projects and manage related expenses. Both the department and the board can spend up to 2.5% of the bond funds for administering their respective sections, Section 13458 and Section 13459. They are also allowed to reimburse a specific state financial fund if needed.
(a)CA Water Code § 13455(a) The committee may create a debt or debts, liability or liabilities, of the State of California in the aggregate amount of one hundred fifty million dollars ($150,000,000), in the manner provided in this chapter. The debt or debts, liability or liabilities, shall be created for the purpose of providing the fund to be used for the object and work specified in this section and in Sections 13458 and 13459.
(b)CA Water Code § 13455(b) The department may enter into contracts and may adopt rules and regulations necessary to carry out the purposes of Section 13458.
(c)CA Water Code § 13455(c) The department may expend not more than 21/2 percent of the total amount of the bonds authorized to be issued under this chapter for the administration of Section 13458.
(d)CA Water Code § 13455(d) The board may enter into contracts and may adopt rules and regulations necessary to carry out the purposes of Section 13459.
(e)CA Water Code § 13455(e) The board may expend not more than 21/2 percent of the total amount of the bonds authorized to be issued under this chapter for the administration of Section 13459.
(f)CA Water Code § 13455(f) The department or the board may expend funds necessary to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code.
state debt funding projects administration expenses bond funds committee authority contract rules Section 13458 Section 13459 General Obligation Bond financial regulations project implementation budget management public finance California water projects financial reimbursement
Section § 13456
This section states that when California sells and delivers bonds, these bonds become valid obligations of the state, meaning California promises to repay them fully. The state commits its financial resources to ensure the payments of both the principal amount and the interest on these bonds are made on time.
To meet these obligations, California will collect extra money each year as it collects other state revenue, ensuring there's enough to cover bond payments. State officials responsible for revenue collection must do everything necessary to gather this additional money.
Any money earned from bond premiums and accrued interest can be moved to the General Fund to help cover bond interest expenses.
All bonds which have been duly sold and delivered constitute valid and legally binding general obligations of the State of California, and the full faith and credit of the State of California is pledged for the punctual payment of both principal and interest.
There shall be collected annually in the same manner, and at the same time as other state revenue is collected, the amount, in addition to the ordinary revenues of the state, required to pay the principal of, and interest on, the bonds. It is the duty of all officers charged by law with any duty in regard to the collection of that revenue to perform each and every act which is necessary to collect this additional amount.
All money deposited in the fund which has been derived from premium and accrued interest on bonds sold is available for transfer to the General Fund as a credit to expenditures for bond interest.
bonds general obligations California state credit principal payments interest payments state revenue collection bond premiums accrued interest General Fund transfer state financial commitment revenue collection duty premium-derived money bond interest expenditures legally binding obligations punctual payment pledge
Section § 13457
This law adopts the State General Obligation Bond Law for managing the creation, sale, and repayment of bonds approved by this chapter. Although the State General Obligation Bond Law is part of this chapter, the Treasurer, with committee approval, can set the interest rates for the bonds. These bonds can't have a maturity period longer than 50 years from when they are issued. Each series of bonds will have its maturity date calculated from when that particular series starts.
The State General Obligation Bond Law is adopted for the purpose of the issuance, sale, and repayment of, and other matters with respect to, the bonds authorized by this chapter. The provisions of that law are included in this chapter as though set out in full in this chapter, except that, notwithstanding any provision in the State General Obligation Bond Law, the bonds authorized under this chapter shall bear the rates of interest, or maximum rates, fixed from time to time by the Treasurer with the approval of the committee. The maximum maturity of the 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.
general obligation bonds bond interest rates bond issuance bond sale bond maturity Treasurer committee approval 50-year maturity limit series maturity bond repayment
Section § 13458
This law allocates $75 million for loans to local agencies in California for water conservation and groundwater recharge projects during the 1986-87 fiscal year. These loans help fund the building of voluntary, cost-effective water-saving programs and facilities. Agencies can borrow up to $5 million per project, repayable over 20 years at reduced interest rates.
Loans for water projects must show cost benefits and the agency's promise to quickly and properly complete and maintain the project. Groundwater projects also need proof of loan repayment capability and economic and engineering feasibility. The department prioritizes loans based on cost-effectiveness and need.
Additionally, up to $100,000 is available per project for feasibility studies, which do not reduce the maximum loan amount for project construction.
(a)CA Water Code § 13458(a) The sum of seventy-five million dollars ($75,000,000) of the money in the fund shall be deposited in the Water Conservation and Groundwater Recharge Account and, notwithstanding Section 13340 of the Government Code, is appropriated for expenditure in the 1986–87 fiscal year for loans to local agencies to aid in the acquisition and construction of voluntary, cost-effective capital outlay water conservation programs and groundwater recharge facilities and the purposes set forth in this section. Loans made in the 1986–87 fiscal year may not be authorized sooner than 30 days after notification in writing of the necessity therefor to the chairperson of the committee in each house which considers appropriations, to the policy committee of the Assembly as designated by the Speaker of the Assembly and the policy committee of the Senate designated by the Senate Rules Committee, and the Chairperson of the Joint Legislative Budget Committee.
(b)CA Water Code § 13458(b) Any contract entered into pursuant to this section may include provisions as may be determined by the department. However, any contract concerning an eligible, voluntary, cost-effective capital outlay water conservation program shall be supported by or shall include, in substance, all of the following:
(1)CA Water Code § 13458(b)(1) An estimate of the reasonable cost and benefit of the program.
(2)CA Water Code § 13458(b)(2) An agreement by the local agency to proceed expeditiously with, and complete, the program.
(3)CA Water Code § 13458(b)(3) A provision that there shall be no moratorium or deferment on payments of principal or interest.
(4)CA Water Code § 13458(b)(4) A loan period of up to 20 years with an interest rate set annually by the department at 50 percent of the interest rate computed by the true interest cost method on bonds most recently issued pursuant to this chapter. The interest rate set for each contract shall be applied throughout the contract’s repayment period. There shall be a level annual repayment of principal and interest on the loans.
(5)CA Water Code § 13458(b)(5) A provision that the project shall not receive any more than five million dollars ($5,000,000) in loan proceeds from the department.
The department shall set priority for loans under this subdivision on the basis of the cost effectiveness of the proposed project, with the most cost-effective projects receiving the highest priorities.
(c)CA Water Code § 13458(c) Any contract concerning an eligible project for groundwater recharge shall be supported by or shall include, in substance, all of the following:
(1)CA Water Code § 13458(c)(1) A finding by the department that the agency has the ability to repay the requested loan, that the project is economically justified, and that the project is feasible from an engineering and hydrogeologic viewpoint.
(2)CA Water Code § 13458(c)(2) An estimate of the reasonable cost and benefit of the project, including a feasibility report which shall set forth the economic justification and the engineering, hydrogeologic, and financial feasibility of the project, and shall include explanations of the proposed facilities and their relation to other water-related facilities in the basin or region.
(3)CA Water Code § 13458(c)(3) An agreement by the agency to proceed expeditiously to complete the project in conformance with the approved plans and specifications and the feasibility report and to operate and maintain the project properly upon completion throughout the repayment period.
(4)CA Water Code § 13458(c)(4) A provision that there shall be no moratorium or deferment on payment of principal or interest.
(5)CA Water Code § 13458(c)(5) A loan period of up to 20 years with an interest rate set annually by the department at 50 percent of the interest rate computed by the true interest cost method on bonds most recently issued pursuant to this chapter. The interest rate set for each contract shall be applied throughout the contract’s repayment period. There shall be a level annual repayment of principal and interest on the loans.
(6)CA Water Code § 13458(c)(6) A provision that the project shall not receive any more than five million dollars ($5,000,000) in loan proceeds from the department.
The department shall give priority under this subdivision to projects of agencies located in overdrafted groundwater basins and those projects of critical need, to projects whose feasibility studies show the greatest economic justification and the greatest engineering and hydrogeologic feasibility as determined by the department, and to projects located in areas which have existing water management programs.
(d)CA Water Code § 13458(d) The department may make loans to local agencies, at the interest rates authorized under this section and under any terms and conditions as may be determined necessary by the department, for the purposes of financing feasibility studies of projects potentially eligible for funding under this section. No single potential project shall be eligible to receive more than one hundred thousand dollars ($100,000), and not more than 3 percent of the total amount of bonds authorized to be expended for purposes of this section may be expended for this purpose. A loan for a feasibility study shall not decrease the maximum amount of any other loan which may be made under this section.
water conservation groundwater recharge local agencies loan programs voluntary projects cost-effective programs fiscal year 1986-87 interest rates capital outlay project feasibility feasibility studies economic justification water-saving projects overdrafted basins engineering feasibility
Section § 13459
This law provides $75 million for loans to agencies to build facilities for managing agricultural drainage water, which includes treatment, storage, or disposal. Agencies can borrow up to the full cost of a project, but no single project can receive more than $20 million. The loans, available in fiscal year 1986-87, require agencies to ensure public participation and are repayable over up to 20 years at half the state's latest bond interest rate.
The board has the authority to set the terms and must prefer technologically feasible and economical solutions. Agencies are encouraged to seek federal aid and must maintain the projects properly. They can also apply for smaller loans up to $100,000 for project feasibility studies, without affecting the maximum borrowing for main projects.
(a)CA Water Code § 13459(a) The sum of seventy-five million dollars ($75,000,000) of the money in the fund shall be deposited in the Agricultural Drainage Water Account is appropriated for expenditure in the 1986–87 fiscal year for loans to agencies to aid in the construction of drainage water management units for the treatment, storage, or disposal of agricultural drainage water and the purposes set forth in this section. The board may loan an agency up to 100 percent of the total eligible costs of design and construction of an eligible project. Loans made in the 1986–87 fiscal year may not be authorized sooner than 30 days after notification in writing of the necessity therefor to the chairperson of the committee in each house which considers appropriations, to the policy committee of the Assembly as designated by the Speaker of the Assembly and the policy committee of the Senate designated by the Senate Rules Committee, and the Chairperson of the Joint Legislative Budget Committee.
(b)CA Water Code § 13459(b) Any contract for an eligible project entered into pursuant to this section may include such provisions as determined by the board and shall include, in substance, all of the following provisions:
(1)CA Water Code § 13459(b)(1) An estimate of the reasonable cost of the eligible project.
(2)CA Water Code § 13459(b)(2) An agreement by the agency to proceed expeditiously with, and complete, the eligible project; commence operation of the containment structures or treatment works upon completion and to properly operate and maintain the works in accordance with applicable provisions of law; provide for payment of the agency’s share of the cost of the project, including principal and interest on any state loan made pursuant to this section; and, if appropriate, apply for and make reasonable efforts to secure federal assistance for the state-assisted project.
(c)CA Water Code § 13459(c) All loans pursuant to this section are subject to all of the following provisions:
(1)CA Water Code § 13459(c)(1) Agencies seeking a loan shall demonstrate, to the satisfaction of the board, that an adequate opportunity for public participation regarding the loan has been provided.
(2)CA Water Code § 13459(c)(2) Any election held with respect to the loan shall include the entire agency except where the agency proposes to accept the loan on behalf of a specified portion, or portions, of the agency, in which case the referendum shall be held in that portion or portions of the agency only.
(3)CA Water Code § 13459(c)(3) Loan contracts may not provide a moratorium on payment of principal or interest.
(4)CA Water Code § 13459(c)(4) Loans shall be for a period of up to 20 years. The interest rate for the loans shall be set at a rate equal to 50 percent of the interest rate paid by the state on the most recent sale of state general obligation bonds, with that rate to be computed according to the true interest cost method. When the interest rate so determined is not a multiple of one-tenth of 1 percent, the interest rate shall be set at the next higher multiple of one-tenth of 1 percent. The interest rate set for each contract shall be applied throughout the contract’s repayment period. There shall be a level annual repayment of principal and interest on loans.
(5)CA Water Code § 13459(c)(5) The board in considering eligible projects shall give preference to technologies which treat drainage water where the board finds that the technology is readily available and economically feasible for the agency.
(6)CA Water Code § 13459(c)(6) No single project may receive more than twenty million dollars ($20,000,000) in loan proceeds from the board.
(d)CA Water Code § 13459(d) The board may make loans to local agencies, at the interest rates authorized under this section and under any terms and conditions as may be determined necessary by the board, for purposes of financing feasibility studies of projects potentially eligible for funding under this section. No single potential project shall be eligible to receive more than one hundred thousand dollars ($100,000), and not more than 3 percent of the total amount of bonds authorized to be expended for purposes of this section may be expended for this purpose. A loan for a feasibility study shall not decrease the maximum amount of any other loan which may be made under this section.
agricultural drainage water loan for agencies drainage water management construction loans project feasibility studies treatment units public participation interest rate repayment terms feasibility loan cap preference for technology maximum loan cap loan conditions state general obligation bonds federal assistance
Section § 13459.5
This law states that any leftover money in the Agricultural Drainage Water Account from before November 6, 1996, plus any new money from bond sales after that date, should be transferred to a specific subaccount. This subaccount is part of a larger fund focused on clean water and recycling, and the money will be used for specified purposes. The term 'unallocated money' refers to money that hasn't been committed yet, which should be at least $6,177,000.
Unallocated money remaining in the Agricultural Drainage Water Account in the 1986 Water Conservation and Water Quality Bond Fund on November 6, 1996, and any unallocated money deposited into that account from the sale of any bonds that are sold after November 6, 1996, shall be transferred to the Drainage Management Subaccount, created by Section 78641, of the Clean Water and Water Recycling Account in the Safe, Clean, Reliable Water Supply Fund for the purposes of subdivision (b) of Section 78645. For the purpose of this section, “unallocated money” means money not committed or appropriated as of November 6, 1996, which is not less than six million one hundred seventy-seven thousand dollars ($6,177,000).
Agricultural Drainage Water Account Drainage Management Subaccount Clean Water and Water Recycling Account Safe Clean Reliable Water Supply Fund unallocated money water conservation water quality bond fund bond sales transfer of funds subdivision (b) of Section 78645 fund allocation water management environmental funding
Section § 13460
This law explains that any money deposited into a specific fund, which is collected because of laws requiring repayment to the state for assistance funded by bonds, can be moved to the General Fund. This is done to pay back the principal and interest of those bonds.
Money deposited in the fund pursuant to any provision of law requiring repayments to the state for assistance financed by the proceeds of the bonds authorized by this chapter shall be available for transfer to the General Fund as a reimbursement for payment of bond principal and interest.
bond repayments state fund deposit assistance financing bond principal payment bond interest payment fund transfer General Fund reimbursement bond proceeds state assistance repayment financial obligation interest reimbursement principal reimbursement bonds authorized chapter repayment provisions state-funded assistance
Section § 13461
This section explains that money is set aside from the General Fund to cover two main expenses. First, it ensures there is enough money every year to pay off both the main amount (known as principal) and the interest on bonds that are issued according to this chapter. Second, it provides the funds needed to implement Section 13462, without any limitations based on the fiscal year.
There is hereby appropriated from the General Fund, for the purpose of this chapter, an amount equal to the sum of the following:
(a)CA Water Code § 13461(a) The amount necessary annually 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 § 13461(b) The amount necessary to carry out Section 13462, which is appropriated without regard to fiscal years.
General Fund appropriation bond payments principal and interest annual payments Section 13462 fiscal year funding allocation bond issuance financial obligations public finance management
Section § 13462
This law allows the Director of Finance to temporarily take money from California's General Fund to support specific projects under this chapter, but only up to the amount of approved but unsold bonds.
The withdrawn funds are used for project expenses and must be put back into the General Fund once the bonds are sold. The returned funds should also include any interest they would have earned if they hadn’t been withdrawn.
For the purpose of carrying out this chapter, the Director of Finance may, by executive order, authorize the withdrawal from the General Fund of amounts not to exceed the amount of the unsold bonds which the committee has authorized to be sold for the purpose of carrying out this chapter.
The amounts withdrawn shall be deposited in the fund and shall be disbursed by the department or the board in accordance with this chapter. Any money made available under this section to the department or the board shall be returned to the General Fund from money received from the sale of bonds. The withdrawals from the General Fund shall be returned to the General Fund with interest at the rate which would have otherwise been earned by those withdrawals in the Pooled Money Investment Fund.
Director of Finance General Fund withdrawal unsold bonds bond sales fund disbursement project financing interest return Pooled Money Investment Fund financial authorization executive order temporary funding state finance management project expenses
Section § 13462.5
This section allows the Treasurer to manage and use funds from bonds in specific ways if the bonds are deemed tax-exempt under federal law. This includes keeping separate accounts for the invested bond money and using it to comply with federal laws to maintain the bonds' tax-exempt status. This ensures no federal tax is paid on the interest from these bonds if certain conditions are met.
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.
Treasurer bonds tax-exempt bonds federal tax purposes bond proceeds investment earnings rebate payments penalty payments federal law compliance bond counsel opinion separate accounts interest exclusion gross income exclusion state bond funds tax-exempt status
Section § 13463
If asked by the department or the board, the committee will decide if it's necessary or a good idea to issue bonds that are allowed under this chapter.
Upon request of the department or the board, the committee shall determine whether or not it is necessary or desirable to issue bonds authorized under this chapter.
bonds issuance committee decision department request board request necessity assessment desirability evaluation authorized bonds committee role financial instruments public financing water resources California bonds government bonds financial authorization
Section § 13464
This section allows a committee to give the go-ahead to the Treasurer to sell all or some of the bonds whenever the Treasurer decides.
The committee may authorize the Treasurer to sell all, or any part, of the bonds at times fixed by the Treasurer.
bond sale authorization Treasurer's discretion committee approval bond sales timing securities management fundraising through bonds financial oversight public finance bond liquidity government securities debt issuance fiscal policy decisions authorization process bond market operations
Section § 13465
This law allows a committee to set additional rules for loan agreements, specifically to permit delays on paying all or part of the loan's principal amount, even if other sections of the law say otherwise.
Notwithstanding Sections 13458 and 13459, the committee may prescribe further terms and conditions for loan contracts to authorize a deferment on payment of all or part of the principal.
loan contracts deferment on payment deferment of principal payment delay loan principal deferment prescribe terms loan agreement conditions principal payment deferment committee discretion deferred payment terms
Section § 13466
This law states that starting from the 1987-88 fiscal year, the department can only issue a loan if the Legislature gives specific approval through a law enacted after receiving a required report as outlined in Section 13467.
For the 1987–88 fiscal year and each year thereafter, a loan 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 13467.
1987-88 fiscal year loan approval specific legislative approval department loan enacted law requirement Section 13467 report loan authorization process legislative act loan conditions report requirements loan issuance rules approval criteria
Section § 13467
This law reallocates $13.5 million from currently unissued bonds to be used for projects as detailed in Division 26.7, starting with Section 79700. This means these funds are reassigned to support specific initiatives outlined in that part of the legal code.
Notwithstanding any other law, thirteen million five hundred thousand dollars ($13,500,000) of the unissued bonds authorized for the purposes of subdivision (a) of Section 13459 are reallocated to finance the purposes of, and shall be authorized, issued, and appropriated in accordance with, Division 26.7 (commencing with Section 79700).
bonds reallocation unissued bonds finance purposes Division 26.7 Section 79700 funding allocation California bonds environmental projects water resources bond issuance
Section § 13468
This law section clarifies how to calculate the interest rate for loan agreements under the Clean Water Bond Law of 1984. Specifically, it states that the interest rate should be determined using the true interest cost method based on the most recent bonds issued under this law and refers to the previous year's general obligation bond interest rates.
It is the intent of language in Section 13998.8(i)(3), Section 13999.10(d), and Section 13999.11(d) of the Water Code which was enacted by the voters in the Clean Water Bond Law of 1984 that “the average interest rate paid by the state on general obligation bonds in the calendar year immediately preceding the year in which the loan agreement is made” means the interest rate computed by the true interest cost method on the bonds most recently issued pursuant to the Clean Water Bond Law of 1984.
Clean Water Bond Law interest rate calculation loan agreements true interest cost method general obligation bonds bonds issued 1984 Clean Water Bond preceding year interest rates Water Code Sections loan interest determination state bonds voter-enacted law Clean Water loans 1984 bond issuance
Section § 13469
This section explains that if any part of the chapter is found to be invalid or cannot be applied to a person or situation, that does not impact the rest of the chapter. The remaining parts of the chapter will continue to be effective and enforceable. This is known as the concept of 'severability,' meaning parts of a legal document can be separated and continue to function independently.
If any provision of this chapter or the application thereof to any person or circumstance is held invalid, that invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.
severability clause invalid provision law application independent enforcement legal independence provision isolation partial invalidity separation of provisions enforceable provisions legal document parts law section separation continuation without invalidity application to persons circumstance applicability retention of effectiveness
