SECTIONS 13410-13418 - California Statutes

WATER CODE

SECTION 13410-13418

13410. Applications for construction loans under this chapter shall
include:
(a) A description of the proposed facilities.
(b) A statement of facts showing the necessity for the proposed
facilities and showing that funds of the public agency are not
available for financing such facilities and that the sale of revenue
or general obligation bonds through private financial institutions is
impossible or would impose an unreasonable burden on the public
agency.
(c) A proposed plan for repaying the loan.
(d) Other information as required by the state board.

13411. Upon a determination by the state board, after consultation
with the State Department of Health, that (a) the facilities proposed
by an applicant are necessary to the health or welfare of the
inhabitants of the state, (b) that the proposed facilities meet the
needs of the applicant, (c) that funds of the public agency are not
available for financing such facilities and that the sale of revenue
or general obligation bonds through private financial institutions is
impossible or would impose an unreasonable burden on the public
agency, (d) that the proposed plan for repayment is feasible, (e) in
the case of facilities proposed under Section 13400(c)(1) that such
facilities are necessary to prevent water pollution, (f) in the case
of facilities proposed under Section 13400(c)(2) that such facilities
will produce recycled water and that the public agency has adopted a
feasible program for use thereof, and (g) in the case of facilities
proposed under Section 13400(c)(3) that such facilities are a cost
effective means of conserving water, the state board, subject to
approval by the Director of Finance, may loan to the applicant such
sum as it determines is not otherwise available to the public agency
to construct the proposed facilities.

13412. No loan shall be made to a public agency unless it executes
an agreement with the state board under which it agrees to repay the
amount of the loan, with interest, within 25 years at 50 percent of
the average interest rate paid by the state on general obligation
bonds sold in the calendar year immediately preceding the year in
which the loan agreement is executed.

13413. It is the policy of this state that, in making construction
loans under this article, the state board should give special
consideration to facilities proposed to be constructed by public
agencies in areas in which further construction of buildings has been
halted by order of the State Department of Health or a local health
department, or both, or notice has been given that such an order is
being considered; provided, however, that the public agencies
designated in this section shall otherwise comply with and meet all
requirements of other provisions of this chapter.

13414. All money received in repayment of loans under this chapter
shall be paid to the State Treasurer and credited to the fund.

13415. (a) Loans may be made by the state board to public agencies
to pay not more than one-half of the cost of studies and
investigations made by such public agencies in connection with waste
water reclamation.
(b) Not more than a total of two hundred thousand dollars
($200,00) shall be loaned pursuant to this section in any fiscal
year, and not more than fifty thousand dollars ($50,000) shall be
loaned to any public agency in any fiscal year pursuant to this
section. In the event that less than two million dollars ($2,000,000)
is available in any fiscal year for loans under this article, then
not more than 10 pecent of the available amount shall be available
for loans for studies and investigations pursuant to this section.
(c) Applications for such loans shall be made in such form, and
shall contain such information, as may be required by the state
board.
(d) Such loans shall be repaid within a period not to exceed 10
years, with interest at a rate established in the manner provided in
Section 13412.

13416. Before a public agency may enter into a contract with the
state board for a construction loan under this chapter, the public
agency shall hold an election on the proposition of whether or not
the public agency shall enter into the proposed contract and more
than 50 percent of the votes cast at such election must be in favor
of such proposition.

13417. The election shall be held in accordance with the following
provisions:
(a) The procedure for holding an election on the incurring of
bonded indebtedness by such public agency shall be utilized for an
election of the proposed contract as nearly as the same may be
applicable. Where the law applicable to such agency does not contain
such bond election procedure, the procedure set forth in the Revenue
Bond Law of 1941 (Chapter 6 (commencing with Section 54300) Part 1,
Division 2, Title 5 of the Government Code), as it may now or
hereafter be amended, shall be utilized as nearly as the same may be
applicable.
(b) No particular form of ballot is required.
(c) The notice of the election shall include a statement of the
time and place of the election, the purpose of the election, the
general purpose of the contract, and the maximum amount of money to
be borrowed from the state under the contract.
(d) The ballots for the election shall contain a brief statement
of the general purpose of the contract substantially as stated in the
notice of the election, shall state the maximum amount of money to
be borrowed from the state under the contract, and shall contain the
words "Execution of contract--Yes" and "Execution of contract--No."
(e) The election shall be held in the entire public agency except
where the public agency proposes to contract with the state board on
behalf of a specified portion, or of specified portions of the public
agency, in which case the election shall be held in such portion or
portions of the public agency only.

13418. Notwithstanding any provision of this chapter or any other
provision of law, including, but not limited to, the provisions of
Chapter 47 and 137 of the Statutes of 1966, First Extraordinary
Session, Chapter 1679 of the Statutes of 1967, Chapter 1356 of the
Statutes of 1969, and Chapter 920 of the Statutes of 1970, or the
provisions of any existing loan contract entered into pursuant to
this chapter or any other such provision of law, there shall be a
two-year moratorium following the effective date of this section on
that portion of the principal and interest payments otherwise
required in repayment of funds heretofore loaned to the North Tahoe
Public Utility District, the Tahoe City Public Utility District, the
South Tahoe Public Utility District, the Truckee Sanitary District,
the Squaw Valley County Water District, and the Alpine Springs County
Water District pursuant to this chapter or any act of the
Legislature authorizing a state loan for the purpose of permitting
any such agency to construct necessary sewage and storm drainage
facilities to prevent and control water pollution in the area served
by such agency, equal in percentage, as determined by the Department
of Finance, to the percentage of property tax revenues lost to the
agency by reason of the adoption of Article XIII A of the California
Constitution, unless moneys are otherwise available for such
repayment from state allocations or the sale of bonds authorized on
or before July 1, 1978, but unissued. The provisions of this section
do not apply to any sums which are required to be repaid immediately
or in accordance with an accelerated time schedule pursuant to a duly
entered stipulated judgment between the State of California and the
Tahoe City Public Utility District. Interest on loans shall accrue
during the moratorium period and be repaid by the recipients of the
loans, in addition to the normal principal and interest payments.