BILL NUMBER:  AB 441
  VETOED	DATE: 09/25/2000




SEP 25 2000

To Members of the California Assembly:

I am returning Assembly Bill 441 without my signature.

This bill would forgive a $162,635 loan plus interest made to Tomales
Village Community Services District from the State Water Resources
Control Board (SWRCB) State Water Quality Control Fund.

AB 441 would result in a revenue loss of $218,684 in principal and
interest that would reduce the SWRCB's ability to match a federal
capitalization grant draw by $1.1 million.   This would reduce the
lending capacity for subsidized loans to local communities.  If other
communities followed the lead of the Tomales Community Services
District, the potential loss of federal matching funds could approach
$18 million.

Sincerely,





GRAY DAVIS