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HomeWater CodeDiv. 6Pt. 6Ch. 5Art. 9§ 12889 Public Agency Contract Approval

§ 12889 Public Agency Contract Approval

Water Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 12889 Public Agency Contract Approval

Key Takeaways

  • •Before a public agency can get a construction loan or grant from the state, they usually need to hold a vote.
  • •More than 50% of the people voting must say 'yes' to the loan or grant.
  • •If the agency's own rules or the state constitution require more than 50% for borrowing money, they must follow that higher rule instead.

Example

A small town wants to build a new community center and needs a loan from the state to help pay for it.

The town must hold a vote where everyone can say 'yes' or 'no' to taking the loan. If more than half of the people who vote say 'yes,' the town can take the loan. But if the town's rules say they need 60% of the votes to borrow money, then they need 60% to say 'yes' instead of just over 50%.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 12889 Public Agency Contract Approval

Except in the case of a grant to a public agency where the applicable law contains provisions for the election of the members of the governing body of the agency or where a county board of supervisors acts as the governing body of the agency, before a public agency may enter into a contract with the department for a construction loan or a grant 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; provided, that if a higher percentage of favorable votes is required for the issuance of any bonds by the public agency or is required by the Constitution before the public agency may incur an indebtedness, such higher percentage shall apply in lieu of the percentage set forth in this subdivision. (Added by Stats. 1967, Ch. 27.)

Last verified: January 23, 2026

Key Terms

public agencyconstruction loangrantelection50 percenthigher percentagebondsindebtedness

Related Statutes

  • § 13416 Public Agency Loan Approval
  • § 12887.8 Public Contract Validity Review
  • § 11553 Bond-Funded Construction Costs
  • § 11555 Contractor Performance Bonds
  • § 11556 Bond Proceeds Construction Fund

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Water Code. Section 12889.
View Official Source