SECTIONS 116761.62-116761.86 - California Statutes

HEALTH AND SAFETY CODE

SECTION 116761.62-116761.86

116761.62. (a) To the extent permitted by federal and state law,
moneys in the fund may be expended to rebate to the federal
government all arbitrage profits required by the federal Tax Reform
Act of 1986 (P.L. 99-514) or any amendment thereof or supplement
thereto. To the extent that this expenditure of the moneys in the
fund is prohibited by federal or state law, any rebates required by
federal law shall be paid from the General Fund or other sources,
upon appropriation by the Legislature.
(b) Notwithstanding any other provisions of law or regulation, the
department may enter into contracts or may procure those services
and equipment that may be necessary to ensure prompt and complete
compliance with any provisions relating to the fund imposed by either
the federal Tax Reform Act of 1986 (P.L. 99-514) or the federal Safe
Drinking Water Act.

116761.65. (a) The department shall annually establish the interest
rate for loans made pursuant to this chapter at 50 percent of the
average interest rate, computed by the true interest cost method,
paid by the state on general obligation bonds issued in the prior
calendar year. All loans made pursuant to this chapter shall carry
the interest rate established for the calendar year in which the
funds are committed to the loan, as of the date of the letter of
commitment. The interest rate set for each loan shall be applied
throughout the repayment period of the loan. Interest on the loan
shall not be deferred.
(b) Notwithstanding subdivision (a), if the loan applicant is a
public water system that is a disadvantaged community or provides
matching funds, the interest rate on the loan shall be zero percent.

116761.70. (a) Not more than 4 percent of the capitalization grant
may be used by the department for administering this chapter. The
department may establish a reasonable schedule of administrative fees
for loans, which shall be paid by the applicant to reimburse the
state for the costs of the state administration of this chapter.
(b) Charges incurred by the Attorney General in protection of the
state's interest in the use of repayment of grant and loan funds
under this chapter shall be paid. These charges shall not be paid
from funds allocated for administrative purposes, but shall be
treated as a program expense not to exceed one-half of 1 percent of
the total amount deposited in the fund.

116761.80. (a) The department may expend money repaid to the state
pursuant to any contract executed under Section 116761.50 as
necessary for the administration of contracts entered into by the
department under this chapter, but those expenditures may not in any
year exceed 1.5 percent of the amount of principal and interest
projected to be paid to the state in that year pursuant to this
chapter.
(b) Charges incurred by the Attorney General in protecting the
state's interest in the use of funds and repayment of funds under
this chapter may be paid by the department from these funds, but
those charges may not exceed one-half of 1 percent of the amount of
principal and interest projected to be paid to the state in that year
pursuant to this chapter.
(c) Any of these sums unexpended by the department at the end of
any year shall automatically revert to the fund.

116761.85. Except as provided in Section 116761.80, all money
repaid to the state pursuant to any contract executed under
subdivision (a) of Section 116761.50, including interest payments and
all interest earned on or accruing to any moneys in the fund, shall
be deposited in the fund and shall be available in perpetuity, for
expenditure for the purposes and uses permitted by this chapter and
the federal act.

116761.86. To the extent amounts in the fund are not required for
current obligation or expenditure, those amounts shall be invested in
interest bearing obligations, and the interest earned shall become
part of the fund.