WHEREAS:

1. Section 25299.59 of the California Health and Safety Code allows the State Water Board to conduct an audit of any claim submitted to the Underground Storage Tank Cleanup Fund (Fund);

2. Section 25299.51(a) of the California Health and Safety Code provides for the expenditure of funds for the costs of implementing this Chapter. Investigative services are needed in certain cases to verify information provided by claimants. Verification of facts and circumstances is essential to the integrity of the Fund and is necessary to implement the Fund in a legal manner.

3. The State Controller's Office has trained staff to perform the necessary audits and investigations;

4. The Fund has requested the State Controller's Office to provide auditing and investigation services;

5. The Interagency Agreement will provide an amount not to exceed $200,000 per year through the year January 1, 2005 and will provide the Fund with the needed auditing and investigative services; and

6. It is in the interest of the State Water Board to ensure that all funds are distributed in an appropriate legal manner, and to guard against fraudulent claims.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board authorizes the Executive Director or his designee to enter into an Interagency Agreement with the State Controller's Office to provide auditing and investigation services for the Fund through the year January 1, 2005.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at the meeting of the State Water Resources Control Board held on July 17, 1997.

/s/___________________________

Maureen Marchè

Administrative Assistant to the Board