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S.B. 170 Enrolled
7 LONG TITLE
8 General Description:
9 This bill amends provisions regarding the financing of a water project.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . allows the Board of Water Resources to:
14 . accept a bond from private sponsors in lieu of taking title to a project;
15 . give preference to a project that benefits the state or a political subdivision; and
16 . consider market conditions and other factors when establishing an interest rate;
18 . makes technical changes.
19 Monies Appropriated in this Bill:
21 Other Special Clauses:
23 Utah Code Sections Affected:
25 73-10-26, as last amended by Laws of Utah 2007, Chapter 179
26 73-10-27, as last amended by Laws of Utah 2005, Chapter 25
27 73-10-28, as enacted by Laws of Utah 1978, Chapter 22
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 73-10-26 is amended to read:
31 73-10-26. Construction of a project by board -- Ownership and operation --
32 Transfer of a water right -- Purchase of a bond from an Indian tribe.
33 (1) As used in this section:
34 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
35 (b) "Bond" means:
36 (i) a written obligation to repay borrowed money, whether denominated a bond, note,
37 warrant, certificate of indebtedness, or otherwise; and
38 (ii) a lease agreement, installment purchase agreement, or other agreement that includes
39 an obligation to pay money.
40 (c) "Division" means the Division of Water Resources created in Section 73-10-18 .
41 (d) "Project" means a facility, works, or other real or personal property that:
42 (i) conserves or develops the water or hydroelectric power resources of the state; or
43 (ii) controls flooding.
47 a project.
48 (b) An electric public utility or a municipality of the state may construct an electrical
50 (c) If the state constructs the electrical [
51 power and energy derived from the hydroelectric generating [
59 (b) If funds controlled by the board [
60 control project, the planning [
61 review of the board.
62 (c) If the flood control project is authorized for construction, the plans, specifications,
63 and construction supervision shall be undertaken as prescribed by the board.
65 construction or financing of [
67 a political subdivision of the state, an Indian tribe, or a private corporation.
69 (5) (a) (i) Except as provided by Subsections (5)(a)(ii) and (b), title to a project,
70 including a water right, constructed or acquired with monies from the Water Resources
77 (ii) The board may take a bond legally issued by the project sponsor in lieu of or in
78 addition to taking title to the project and water [
79 (b) If an Indian tribe sponsors a project, the board [
81 by the tribe, to the extent that federal law allows the tribe to issue [
82 taking title to the project and water [
83 (i) waives the defense of sovereign immunity regarding the bond issue in [
84 arising out of the issuance or default under the bond; and
85 (ii) agrees in writing that it will not challenge state court jurisdiction over any litigation
86 resulting from default on its [
87 (c) Before entering into [
89 (i) require that the tribe obtain the written approval of the Secretary of the United
90 States Department of the Interior or the secretary's designee to all aspects of the agreement[
92 (ii) obtain a legal opinion from a recognized bond counsel certifying:
93 (A) that the tribe has legal authority to:
94 (I) enter into the agreement; or
95 (II) issue the [
96 (B) that the pledge of [
97 security for the payments under the agreement[
98 legally enforceable pledge; and
99 (C) that the agreement[
100 court of general jurisdiction in the state; and
101 (iii) determine whether it has sufficient legal recourse against the tribe and against [
102 a security pledged by the tribe in the event of default.
105 (i) the [
106 the board; and
107 (ii) in the opinion of the board the ownership and operation of the [
108 the board is in the best interest of the state.
109 (b) In the ownership and operation of [
111 73-10-19 .
112 (c) (i) The board may enter into [
113 government, a political subdivision of the state, an Indian tribe, or a private corporation for
114 operation, maintenance, and administration of the project.
115 (ii) The board may pay the contracting agency a reasonable sum for operation,
116 maintenance, and administration of the project.
118 (i) enter into [
119 conveyed to a cooperating [
120 have been paid to the state in accordance with the terms of the construction [
122 (ii) make the water and power available [
123 in [
124 (A) that is conserved by [
125 (B) to which the state [
126 (iii) enter into [
128 citizens; and
129 (iv) assess a reasonable fee against [
131 (b) [
132 of the principal, interest, and maintenance of the project shall [
133 the Water Resources Conservation and Development Fund as established by Section 73-10-24 .
135 used for [
136 (a) the water [
137 sponsor is conveyed to the project sponsor upon payment to the state of charges assessed
138 against the project in accordance with the terms of the construction [
140 (b) the board transfers [
141 being [
142 agency of the federal government, or a nonprofit water company.
144 that is best able to use the water [
145 Section 2. Section 73-10-27 is amended to read:
146 73-10-27. Project priorities -- Considerations -- Determinations of feasibility --
147 Bids and contracts -- Definitions -- Retainage.
148 (1) As used in this section:
149 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
150 (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
151 construction of the contemplated project.
152 (c) "Lowest responsible bidder" means a licensed contractor:
153 (i) who:
154 (A) submits the lowest bid; and
155 (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
156 63-56-504 ; and
157 (ii) whose bid:
158 (A) is in compliance with the invitation for a bid; and
159 (B) meets the plans and specifications.
161 financed with funds made available under Section 73-10-24 , the board shall give preference to
163 (a) [
165 (b) [
166 (c) [
167 (d) will yield revenue to the state within a reasonable time or will return a reasonable
168 rate of interest, based on financial feasibility; and
169 (e) [
172 benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
173 (b) In considering whether a project should be built, the benefit-to-cost ratio for each
174 project shall be weighted based on the relative cost of the project.
175 (c) A project, when considered in total with all other projects constructed under this
176 chapter and still the subject of a repayment contract, may not cause the accumulative
177 benefit-to-cost ratio of the projects to be less than one to one.
179 (4) A project may not be built if the project is not:
180 (a) in the public interest, as determined by the board [
182 (b) adequately designed based on sound engineering and geologic considerations.
184 (5) In preparing a project [
187 (a) based on a competitive bid, award a contract for:
188 (i) a flood control project:
189 (A) involving a city or county; and
190 (B) costing in excess of $35,000[
191 (ii) the construction of a storage reservoir in excess of 100 acre-feet; or [
192 (iii) the construction of a hydroelectric generating facility[
194 (b) publish an advertisement for a competitive bid:
195 (i) at least once a week for three consecutive weeks in a newspaper with general
196 circulation in the state[
197 publication appearing at least five days before the schedule bid opening; and
198 (ii) indicating that the board:
199 (A) will award the contract to the lowest responsible bidder [
200 (B) reserves [
203 (c) readvertise the project in the manner specified in Subsection [
207 project; and
209 upon in preparing [
210 the competitive bidding requirements of this section.
217 (6) If no satisfactory bid is received by the board upon the readvertisement of the
218 project in accordance with Subsection (5), the board may proceed to construct the project in
219 accordance with the plan and specifications used to calculate the estimated cost of the project.
222 released as provided in Section 13-8-5 .
223 Section 3. Section 73-10-28 is amended to read:
224 73-10-28. Charges for use -- Interest.
227 (1) As used in this section, "board" means the Board of Water Resources created in
228 Section 73-10-1.5 .
229 (2) The board shall establish:
230 (a) a charge for the use of water, power, or a facility based on:
231 (i) a contractual agreement approved by the board [
232 for a project owned by the state [
233 (ii) the ability of an individual project to return the investment to the state[
237 (b) an interest rate for the money the board lends to finance a project based on:
238 (i) market conditions;
239 (ii) the repayment ability of the project[
240 (iii) other factors considered relevant by the board.
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