Senate Bill 56 amends the statutes related to the use of federal capitalization grant funds for lead service line replacement. Currently, the Department of Administration and the Department of Natural Resources oversee the safe drinking water loan program (SDWLP), which provides financial assistance for public water system projects. While federal capitalization grants can be used for various financial assistance methods, there is a prohibition against using these funds to provide principal forgiveness to private owners of community water systems.

This bill modifies that prohibition by allowing federal capitalization grants to be used for loan forgiveness specifically for the replacement of lead service lines. The amended language clarifies that while principal forgiveness is generally not permitted for private owners, exceptions are made for lead service line replacement, thereby facilitating efforts to improve water safety and public health.

Statutes affected:
Bill Text: 281.61(2r)(e), 281.61
Text as Enrolled: 281.61(2r)(e), 281.61