First Substitute S.B. 78

Senator John L. Valentine proposes the following substitute bill:

1 WATER CONSERVANCY DISTRICT AMENDMENTS
2 2012 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: John L. Valentine
5 House Sponsor: Bradley M. Daw
6
7 LONG TITLE
8 General Description:
9 This bill directs the Revenue and Taxation Interim Committee to conduct a study of the
10 proper allocation of water costs to the rate structure charged for water customers.
11 Highlighted Provisions:
12 This bill:
13 . directs the Revenue and Taxation Interim Committee in 2012 to study the proper
14 allocation of water costs to the rate structure charged for water customers.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Uncodified Material Affected:
20 ENACTS UNCODIFIED MATERIAL
21
22 Be it enacted by the Legislature of the state of Utah:
23 Section 1. Revenue and Taxation Interim Committee study of issues related to the
24 financing of water services.
25 In 2012, the Revenue and Taxation Interim Committee shall conduct a study of the

26 proper allocation of water costs to the rate structure charged for water customers, including a
27 study of:
28 (1) the proper allocation of repair and replacement costs for infrastructure by a water
29 conservancy district;
30 (2) the proper method of financing new and related water infrastructure;
31 (3) the proper allocation of funds to comply with applicable federal mitigation
32 requirements;
33 (4) the impact on development by impact fees or hook-up fees charged by a water
34 conservancy district;
35 (5) the advisability of establishing a sinking fund to fund replacement costs or building
36 new projects and infrastructure;
37 (6) methods to effectively charge for the delivery and acquisition of water;
38 (7) the efficacy of or need for various water conservancy district programs, including
39 variable rate processing, education programs, landscape ordinances, and multi-tier rate
40 structures;
41 (8) the allocation of costs and financing methods used in surrounding states for water
42 projects; and
43 (9) the role of conservation in water pricing and supply adequacy for future water
44 needs.