AB 271

Under current law, the Department of Natural Resources administers the Safe

Drinking Water Loan Program, which provides low-interest loans to municipalities

for drinking water infrastructure projects, to help them comply with federal drinking

water standards. A loan approved under this program must be fully amortized not

later than 20 years after the original date of the financial assistance agreement, and

the repayment of principal and interest, if any, must begin not later than 12 months

after the expected date of completion of the project that it funds, as determined by

the department of administration.

Under this bill, such a loan must be fully amortized not later than 30 years after

the expected date of completion of the project that it funds, as determined by the

department of administration, and the repayment of principal and interest, if any,

must begin not later than 18 months after the expected date of completion of the

project that it funds, as determined by the department of administration.