§ 46-12.8-4. Establishment of safe drinking water revolving loan fund, sources of funds, permitted uses. (a) The agency shall be the instrumentality of the state for administration of the safe drinking water revolving loan fund, and such other funds it holds or for which it is responsible, and, in conjunction with the department, is empowered to and shall take all action necessary or appropriate to secure to the state the benefits of any other federal or state legislation pertaining to the funds and to the financing of approved projects. Without limiting the generality of the foregoing and other powers of the agency provided in this chapter, the agency is empowered to and shall:

(1) Cooperate with any appropriate federal agencies in all matters related to administration of the safe drinking water revolving loan fund and, pursuant to the provisions of this chapter, administer the fund and receive and disburse such funds from any such agencies and from the state as may be available for the purpose of the safe drinking water revolving loan fund.

(2) In cooperation with the department, prepare and submit to any appropriate federal agencies, the department and the governor, annual and other reports and audits required by law.

(3) Subject to the provisions of this chapter, make, and enter into binding commitments to provide financial assistance to local governmental units and private water companies from amounts on deposit in the safe drinking water revolving loan fund and from other funds of the agency.

(4) Establish and maintain fiscal controls and accounting procedures conforming to generally accepted government accounting standards sufficient to ensure proper accounting for receipts and disbursements from the safe drinking water revolving loan fund and other funds it holds or for which it is responsible and, with the approval of the department, adopt such rules, regulations, procedures, and guidelines which it deems necessary to assure that local governmental units and private water companies administer and maintain approved project accounts and other funds and accounts relating to financial assistance in accordance with generally accepted government accounting standards.

(b) The agency shall establish and set up on its books a special fund, designated the safe drinking water revolving loan fund, to be held in trust and to be administered by the agency solely as provided in this chapter and in any trust agreement securing bonds of the agency issued under the chapter. The agency shall credit to the safe drinking water revolving loan fund or one or more accounts therein:

(1) All amounts appropriated or designated to the agency by the state or federal government for purposes of the fund;

(2) All loan repayments and other payments received by the agency on any loans, local governmental obligations and the obligations of private water companies;

(3) All investment earnings on amounts credited to the fund;

(4) All sums collected as water quality protection charges as provided in chapter 15.3 of this title;

(5) All sums paid to the water development fund established pursuant to chapter 15.1 of this title;

(6) All proceeds of bonds of the agency issued under this chapter to the extent required by any trust agreement for such bonds;

(7) All other monies which are specifically designated for this fund, including, amounts from gifts, bequests, administrative, civil and criminal penalties, or other funds from any public or private sources; and

(8) Any other amounts required by the provisions of this chapter, or any other law or by any trust agreement pertaining to bonds to be credited to the fund or which the agency in its discretion shall determine to credit thereto.

(c) Except to the extent limited by law, and subject to the provisions of this chapter, and to any agreements with the holders of any bonds of the agency or any trustee therefor, amounts held by the agency for the account of the safe drinking water revolving loan fund shall be applied by the agency, either by direct expenditure, disbursement, or transfer to one or more other funds and accounts held by the agency or maintained under any trust agreement pertaining to bonds, either alone or with other funds of the agency, to the following purposes:

(1) To provide financial assistance to local governmental units and to private water companies to finance costs of approved projects, and to refinance the costs of such projects, subject to terms and conditions, if any, as are determined by the department;

(2) To purchase or refinance debt obligations of the local governmental units and private water companies, or to provide guarantees, insurance or similar forms of financial assistance for such obligations;

(3) To fund reserves for bonds of the agency and to purchase insurance and pay the premiums therefor, and pay fees and expenses of letters or lines of credit and costs of reimbursement to the issuers thereof for any payments made thereon or on any insurance, and to otherwise provide security for, and a source of payment for, by pledge, lien, assignment, or otherwise bonds of the agency issued in accordance with this chapter; and

(4)(i) To pay expenses of the agency and the department in administering the fund and the financial assistance programs of the agency authorized by this chapter. As part of the annual appropriations bill, the department shall set forth the gross amount of expenses received from the agency and a complete, specific breakdown of the sums retained and/or expended for administrative expenses.

(ii) By way of illustration, not by limitation, in the personnel area, the breakdown of administrative expenses should contain the number of personnel paid, the position numbers of the personnel, and whether or not the position is a new position or a position which had been funded previously by federal funds or a position which had been previously created but unfunded.

(d) Subject to any express limitation of this chapter pertaining to expenditure or disbursement of funds or accounts held by the agency, funds or accounts held by the agency may be transferred to any other fund or account held by the agency for the purposes of this chapter and expended or disbursed for purposes permitted by such fund or account.

History of Section. (P.L. 1993, ch. 313, § 1; P.L. 1993, ch. 396, § 1.)