Representative Don L. Ipson proposes the following substitute bill:




Chief Sponsor: J. Stuart Adams

House Sponsor: Don L. Ipson


8     General Description:
9          This bill creates the Water Infrastructure Restricted Account.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates the Water Infrastructure Restricted Account;
14          ▸     describes uses of money in the Water Infrastructure Restricted Account;
15          ▸     requires the Division of Water Resources and the Board of Water Resources to
16     make rules; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          This bill appropriates in fiscal year 2016:
20          ▸     to the Water Infrastructure Restricted Account, as a one-time appropriation from the
21     General Fund, $5,000,000.
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     ENACTS:

26          73-10g-101, Utah Code Annotated 1953
27          73-10g-102, Utah Code Annotated 1953
28          73-10g-103, Utah Code Annotated 1953
29          73-10g-104, Utah Code Annotated 1953
30          73-10g-105, Utah Code Annotated 1953
31          73-10g-106, Utah Code Annotated 1953

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 73-10g-101 is enacted to read:

Part 1. Funding

37          73-10g-101. Title.
38          (1) This chapter is known as "Water Infrastructure."
39          (2) This part is known as "Funding."
40          Section 2. Section 73-10g-102 is enacted to read:
41          73-10g-102. Definitions.
42          As used in this chapter:
43          (1) "Board" means the Board of Water Resources;
44          (2) "Division" means the Division of Water Resources; and
45          (3) "Restricted account" means the Water Infrastructure Restricted Account created in
46     Section 73-10g-103.
47          Section 3. Section 73-10g-103 is enacted to read:
48          73-10g-103. Creation of the Water Infrastructure Restricted Account.
49          (1) (a) There is created a restricted account in the General Fund known as the "Water
50     Infrastructure Restricted Account."
51          (b) The restricted account shall earn interest.
52          (2) The restricted account consists of money generated from the following sources:
53          (a) voluntary contributions made to the division for the construction, operation, or
54     maintenance of state water projects;
55          (b) appropriations made to the fund by the Legislature; and

56          (c) interest earned on the restricted account.
57          (3) Subject to appropriation, the division and the board shall manage the restricted
58     account created in Subsection (1) in accordance with this chapter.
59          Section 4. Section 73-10g-104 is enacted to read:
60          73-10g-104. Authorized use of the Water Infrastructure Restricted Account.
61          Money in the restricted account is to be used for:
62          (1) the development of the state's undeveloped share of the Bear and Colorado Rivers,
63     pursuant to existing interstate compacts governing both rivers as described in Title 73, Chapter
64     26, Bear River Development Act, and Chapter 28, Lake Powell Pipeline Development Act; and
65          (2) repair, replacement, or improvement of federal water projects for local sponsors in
66     the state of Utah when federal funds are not available.
67          Section 5. Section 73-10g-105 is enacted to read:
68          73-10g-105. Loans -- Rulemaking.
69          (1) The division and the board shall make rules, in accordance with Title 63G, Chapter
70     3, Utah Administrative Rulemaking Act in preparation to make loans from available funds to
71     repair, replace, or improve underfunded federal water infrastructure projects.
72          (2) The rules described in Subsection (1)(a) shall:
73          (a) specify the amount of money that may be loaned;
74          (b) specify the criteria the division and the board shall consider in prioritizing and
75     awarding loans;
76          (c) specify the minimum qualifications for an individual who, or entity that, receives a
77     loan, including the amount of cost-sharing to be the responsibility of the individual or entity
78     applying for a loan;
79          (d) specify the terms of the loan, including the terms of repayment; and
80          (e) require all applicants for a loan to apply on forms provided by the division and in a
81     manner required by the division.
82          Section 6. Section 73-10g-106 is enacted to read:
83          73-10g-106. Requirement for repayment.
84          (1) Any money utilized to construct water infrastructure to develop the state's share of
85     the Bear and Colorado Rivers are subject to the repayment provisions of Title 73, Chapter 26,
86     Bear River Development Act, and Chapter 28, Lake Powell Pipeline Development Act.

87          (2) Any money utilized for the repair, replacement, or improvement of federal water
88     infrastructure projects when federal funds are not available shall be repaid pursuant to the
89     terms and conditions established by the division and the board by rule under Section
90     73-10g-105.
91          Section 7. Appropriation.
92          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
93     the fiscal year beginning July 1, 2015, and ending June 30, 2016, the following sums of money
94     are appropriated from resources not otherwise appropriated, or reduced from amounts
95     previously appropriated, out of the funds or accounts indicated. These sums of money are in
96     addition to any amounts previously appropriated for fiscal year 2016.
97          To General Fund Restricted - Water Infrastructure Restricted Account
98          From General Fund, One-time

99          Schedule of Programs:
100               General Fund Restricted - Water Infrastructure
101               Restricted Account                         $5,000,000
102          The Legislature intends that, under Section 63J-1-603, appropriations under this section
103     not lapse at the close of fiscal year 2016.