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HomeWater CodeDiv. 7Ch. 10.5§ 13862 Administrative Costs Limit

§ 13862 Administrative Costs Limit

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

§ 13862 Administrative Costs Limit

Key Takeaways

  • •The state can't spend more than 3% of the bond money on running this program.
  • •Suppliers have to pay fees to cover the state's costs for managing the program.
  • •The rules about fees were clarified in 1981 but didn't change the original law.

Example

Imagine the state gets $100 million to build new schools. They can only use $3 million of that money to pay for office work, salaries, and other costs to manage the project.

The law says the state can't spend more than 3% of the total money on running the program. So, if the state gets $100 million, they can only use $3 million for their own costs. The rest must go to building the schools. Also, the companies supplying materials for the schools have to pay fees to help cover these costs.

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

Official Source
View on CA.gov

§ 13862 Administrative Costs Limit

For the purpose of administering this chapter, the total expenditures of the department and the State Department of Health Services may not exceed 3 percent of the total amount of the bonds authorized to be issued under this chapter. The department shall establish a reasonable schedule of administrative fees, which fees shall be paid by the supplier pursuant to Section 13861, to reimburse the state for the costs of state administration of this chapter. The amendment to this section enacted at the 1981–82 Regular Session of the Legislature does not constitute a change in, but is declaratory of, the existing law. (Amended by Stats. 1981, Ch. 1015, Sec. 1. Effective September 30, 1981. Note: This section was added by Stats. 1975, Ch. 1008, and approved in Prop. 3 on June 8, 1976.)

Last verified: January 23, 2026

Key Terms

total expendituresadministrative feessupplierSection 13861

Related Statutes

  • § 13868.5 Supplier Contract Approval Process
  • § 13868.7 State Loan Project Limits
  • § 13870 Repayment To General Fund
  • § 13873 Bond Issuance Authorization Process
  • § 13875 Bond Sale Proceeds Use

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Water Code. Section 13862.
View Official Source