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AB-2728 Replacement of corroded or lead-containing plumbing or service lines: loans.(2017-2018)

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Date Published: 02/15/2018 09:00 PM
AB2728:v99#DOCUMENT

Revised  March 14, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill
No. 2728


Introduced by Assembly Member Chen Members Chen and Mathis

February 15, 2018


An act to add Section 116327 to the Health and Safety Code, relating to drinking water.


LEGISLATIVE COUNSEL'S DIGEST


AB 2728, as introduced, Chen. Replacement of corroded or lead-containing plumbing or service lines: loans.
Existing law, the Safe Drinking Water State Revolving Fund Law of 1997, establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable those systems to meet safe drinking water standards.
This bill would, to the extent funding is made available, authorize the State Water Resources Control Board to establish a grant program to provide funding to a county or qualified nonprofit organization, as specified, to provide low-interest loans to defined property owners for the replacement of corroded or lead-containing plumbing and service lines that adversely impact drinking water standards or for the installation of a point-of-use or point-of-entry water treatment system, as specified. The bill would require a county or qualified nonprofit organization that receives a grant pursuant to these provisions to annually provide to the state board specified information relating to the loans awarded and projects funded. The bill would authorize the state board to use a funding source that is authorized for and consistent with the purposes of the program.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 116327 is added to the Health and Safety Code, to read:

116327.
 (a) To the extent that funding is made available, the state board may establish a grant program to provide funding to counties and qualified nonprofit organizations to provide low-interest loans to property owners for the replacement of corroded or lead-containing plumbing and service lines that adversely impact drinking water quality and, if replacement of corroded or lead-containing plumbing or service lines is not feasible or is cost-prohibitive, for the installation of a point-of-use or point-of-entry water treatment system.
(b) (1) To fund the program authorized in this section, the state board may use a funding source that is authorized for and consistent with the purposes of this section.
(2) The state board shall use reasonable and feasible efforts to secure local matching funds for the purposes of providing a grant pursuant to this section.
(3) The state board may advance funds pursuant to an agreement with a county or qualified nonprofit organization in accordance with this section. Section 11019 of the Government Code does not apply to an advance made pursuant to this paragraph.
(c) (1) A county or qualified nonprofit organization may apply to the state board for a grant to provide low-interest loans pursuant to this section.
(2) A county may enter into a contract with a private financial institution to provide loans consistent with the purposes of this section.
(3) The state board may award a grant to a qualified nonprofit organization only if it is located in a county that has not been awarded a grant pursuant to this section.
(d) A county or qualified nonprofit organization that receives a grant pursuant to this section shall annually provide the following information to the state board:
(1) The number of loans awarded.
(2) The types of projects funded.
(3) Project costs.
(4) Whether there is demand for additional funding.
(e) Any loan provided shall be secured by appropriate collateral, which may include a mortgage on the residence, and shall be repaid within 10 to 30 years in accordance with terms established by the state board. The interest rate on the loan shall not exceed 3 percent. Throughout the useful life of the improvement, a loan recipient shall furnish evidence of and continually maintain homeowner’s insurance on the security residence to protect the county or qualified nonprofit organizations’s interest in the residence.
(f) The state board may adopt any guidelines it determines are necessary to carry out the purposes of this section. A guideline adopted pursuant to this subdivision shall not be subject to the rulemaking requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(g) As used in this chapter:
(1) “Property owner” means either of the following:
(A) An individual who meets all of the following requirements:
(i) Has a household income at or below 120 percent of the statewide median household income.
(ii) Has an ownership interest in the residence.
(iii) Is unable to obtain financial assistance at reasonable terms and conditions from private lenders and lacks the resources to undertake these improvements.
(iv) Demonstrates an ability to repay the loan. This requirement may be satisfied by having another party join the application as a cosigner.
(B) A local educational agency, to the extent authorized by law.
(2) “Qualified nonprofit organization” means an organization with experience in providing financial and technical assistance to disadvantaged communities and that is qualified to operate in California and is qualified for tax exempt status under Section 501(c)(3) of the Internal Revenue Code.

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REVISIONS:
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