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N O T F O R P U B L I C A T I O N C O M M I T T E E : WATER AND POWER COMMITTEE Charles 1T. Atwood, Chairman CONTRACTS BETWEEN THE STATE OP CALIFORNIA AND WATER USERS UNDER THE STATE WATER PLAN FOR ACTION STA TU S: RECOMMENDATION That the following features and principles be included as among" those essential for contracts between the State of California and water users under the State Water Plan. It is assumed that the State will act only in a wholesale capacity in making water available to distributing agencies and other users. It is also assumed that it is highly essential to acceptance of the State Water Plan that the State recover through repayment contractsall monies advanced for construction with interest, as well as all maintenance and operating costs.The only exception would be costs allocated for benefits of general statewide interest as may be specifically defined by the Legislature. While SB 1106, by incorporating the code governing the Central Valley Project, requires full repayment of principal and interest of monies advanced from the Water Resources Development Bond Fund, it sets up no specific requirements with respect to monies coming from other sources, but the same repayment requirements should apply to these other monies. In other words, there should be no differentiation in the requirements for repayment as between the various sources of funds. Otherwise some projects would receive less favorable treatment than others.