Article 2 - Loans to Local Agencies

California Water Code — §§ 13410-13417

Sections (8)

Added by Stats. 1969, Ch. 482.

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

Amended by Stats. 1995, Ch. 28, Sec. 23. Effective January 1, 1996.

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

Amended by Stats. 1986, Ch. 978, Sec. 1.

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

Amended by Stats. 1971, Ch. 1593.

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

Added by Stats. 1969, Ch. 482.

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

§ 13415

Added by Stats. 1969, Ch. 482.

(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

Added by Stats. 1969, Ch. 482.

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

Amended by Stats. 2025, Ch. 303, Sec. 37. (AB 1512) Effective January 1, 2026.

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 the 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 the public agency does not contain a bond election procedure, the procedure set forth in the Revenue Bond Law of 1941 (Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of 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 and shall state the maximum amount of money to be borrowed from the state under the contract. To the right of or below the statement of the proposition to be voted on, the

words “Yes” and “No” shall be printed on separate lines, with voting targets.

(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 the applicable portion or portions of the public agency only.