Today's Law As Amended

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AB-2064 Integrated regional water management plans: grants: advanced payment.(2017-2018)



SECTION 1.

 Section 10551 of the Water Code is amended to read:

10551.
 (a) Within 90 days of notice that a grant for projects included and implemented in an integrated regional water management plan has been awarded, the regional water management group shall provide the department with a list of projects to be funded by the grant funds where the project proponent is a nonprofit organization or a disadvantaged community, or the project benefits a disadvantaged community. The list shall specify how the projects are consistent with the adopted integrated regional water management plan and shall include all of the following information:
(1) Descriptive information concerning each project identified.
(2) The names of the entities that will receive the funding for each project, including, but not limited to, an identification as to whether the project proponent or proponents are nonprofit organizations or a disadvantaged community.
(3) The budget of each project.
(4) The anticipated schedule for each project.
(5) The qualifications of the project proponent to manage the project and the finances of the project pursuant to this chapter.
(b) Within 60 days of receiving the project information pursuant to subdivision (a), the department shall provide advanced payment of  a project proponent that requests an advanced payment with advanced payment of five hundred thousand dollars ($500,000) or  50 percent of the grant award for those projects that satisfy both of award, whichever is less, provided that the project satisfies  the following criteria:
(1) The project proponent is a nonprofit organization or a disadvantaged community, community  or the project benefits a disadvantaged community.
(2) The grant award for the project is less than one million dollars ($1,000,000). project proponent has demonstrated to the department’s satisfaction a need for an advanced payment. 
(c) Funds advanced pursuant to subdivision (b) shall be handled as follows:
(1) The recipient shall place the funds in a noninterest-bearing account until expended.
(2) The funds shall be spent within six months of the date of receipt, unless the department waives this requirement.
(3) The recipient shall, on a quarterly basis, provide an accountability report to the department regarding the expenditure and use of any advanced grant funds that provides, at a minimum, the following information:
(3)  (A) An itemization as to how advanced payment funds provided under this section have been expended. The project proponent has demonstrated to the department’s satisfaction that the project proponent is sufficiently qualified to manage the project and the finances of the project. 
(B) A project itemization as to how any remaining advanced payment funds provided under this section will be expended over the period specified in paragraph (2).
(C) Whether the funds are placed in a noninterest-bearing account, and if so, the date that occurred and the dates of withdrawals of funds from that account, if applicable.
(4) (B)  If funds are not expended, the unused portion of the grant shall be returned to the department within 60 days after project completion or the end of the grant performance period, whichever is earlier. the department is not satisfied that the project proponent is sufficiently qualified to manage the project and the finances of the project, the department may impose additional requirements on the project proponent, including requiring additional partners to manage the project, the financing, or both. 
(5) (c)  The department may adopt additional requirements for the recipient regarding the use of the advanced payment to ensure that the funds are used properly. shall not provide advanced payment to a project proponent if the project proponent rejects additional requirements imposed by the department pursuant to subparagraph (B) of paragraph (3) of subdivision (b) or if the department determines that no additional requirements it may impose could make the project proponent sufficiently qualified to manage the project and the finances of the project. 
(d) As used in this section:
(1) “Disadvantaged community” has the same meaning as defined in subdivision (j) of Section 79702.
(2) “Nonprofit organization” has the same meaning as defined in subdivision (p) of Section 79702.

SEC. 2.

 Section 10551.2 is added to the Water Code, to read:

10551.2.
 Funds advanced pursuant to this chapter shall be handled as follows:
(a) The recipient shall place the funds in a noninterest-bearing account until expended.
(b) The funds shall be spent within six months of the date of receipt, unless the department waives this requirement.
(c) The recipient shall, on a quarterly basis, provide an accountability report to the department regarding the expenditure and use of any advanced grant funds that provides, at a minimum, the following information:
(1) An itemization as to how advanced payment funds provided under this chapter have been expended.
(2) A project itemization as to how any remaining advanced payment funds provided under this chapter will be expended over the period specified in subdivision (b).
(3) Whether the funds are placed in a noninterest-bearing account, and if so, the date that occurred and the dates of withdrawals of funds from that account, if applicable.
(4) An evaluation of whether the project is on schedule or not. If the project is behind schedule, the report shall identify what has caused the delay and actions taken or being taken to remedy the delay.
(d) If funds are not expended, the unused portion of the grant shall be returned to the department within 60 days after project completion or the end of the grant performance period, whichever is earlier.
(e) The department may adopt additional requirements for the recipient regarding the use of the advanced payment to ensure that the funds are used properly, including provisions for random audits and other verifications of the authorized use of funds.

SEC. 3.

 Section 10551.4 is added to the Water Code, to read:

10551.4.
 (a) Upon completion of the first one-half of a project receiving a grant award pursuant to this chapter, the project proponent shall provide a first one-half project accountability report to the department that reports the completion of objectives for the first one-half of the project and documents the expenditure and use of advanced grant funds.
(b) Within 60 days of receiving the report pursuant to subdivision (a), the department shall provide advanced payment of the remaining grant award for a project that received advanced payment for the first one-half of the project and meets both of the following criteria:
(1) The department determines that the project proponent has completed identified project objectives within the first one-half of the project.
(2) The department determines that the originally advanced grant award has been expended consistent with the guidelines and requirements provided by the department.
(c) The department shall withhold 10 percent of the total grant award as retention proceeds.
(d) Notwithstanding subdivision (b), the department may, at its sole discretion, provide funding for the second half of the project through a drawdown based on completion of project milestones.

SEC. 4.

 Section 10551.6 is added to the Water Code, to read:

10551.6.
 Upon completion of the project, the project proponent shall submit to the department a final project accountability report. The department shall undertake verification of project completion and once the project is deemed complete, the department shall release any retention proceeds fully to the project proponent.

SEC. 5.

 Section 10551.9 is added to the Water Code, to read:

10551.9.
 As used in this chapter:
(a) “Disadvantaged community” has the same meaning as defined in subdivision (j) of Section 79702.
(b) “Nonprofit organization” has the same meaning as defined in subdivision (p) of Section 79702.