This document includes House Committee Amendments incorporated into the bill on Tue, Feb 15, 2022 at 7:54 AM by pflowers.
1
2
3
4
5
6
7 LONG TITLE
8 General Description:
9 This bill addresses policies related to capital assets for water.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ requires the adoption and implementation of policies and plans related to capital
14 assets;
15 ▸ requires reporting; and
16 ▸ addresses the scope of the part.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 19-5-201, Utah Code Annotated 1953
24 19-5-202, Utah Code Annotated 1953
25 73-10g-401, Utah Code Annotated 1953
26 73-10g-402, Utah Code Annotated 1953
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 19-5-201 is enacted to read:
30
31 19-5-201. Definitions.
32 As used in this part:
33 (1) "Capital asset" means an asset that:
34 (a) is a significant investment or an essential component necessary to provide a service,
35 including:
36 (i) a facility;
37 (ii) infrastructure, whether above or below ground level;
38 (iii) equipment; or
39 (iv) a communications network; and
40 (b) is owned by a wastewater service provider.
41 (2) "Governing body" means a political subdivision governing body defined in Section
42 63A-15-102.
43 (3) "Large underground wastewater disposal system" is as defined by rule made by the
44 division in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
45 (4) "Policy" means the capital asset assessment, maintenance, and replacement policy
46 required under Subsection 19-5-202(1).
47 (5) "Qualified capital asset" means a capital asset that is:
48 (a) identified in a policy as a qualified capital asset in accordance with Subsection
49 19-5-202(1)(b); and
50 (b) inventoried, assessed, funded, or otherwise subject to a wastewater service
51 provider's policy in accordance with Section 19-5-202.
52 (6) "Wastewater service provider" means a political subdivision of the state that owns,
53 operates or otherwise sponsors through agreement any sewerage system, a treatment works, or
54 large underground wastewater disposal system for the collection, storage, treatment, or disposal
55 of domestic waste.
56 Section 2. Section 19-5-202 is enacted to read:
57 19-5-202. Capital asset policies.
58 (1) (a) A wastewater service provider shall adopt a policy for the assessment,
59 maintenance, and replacement of a capital asset that is a qualified capital asset.
60 (b) A policy shall define in general or specific terms which capital assets are qualified
61 capital assets.
62 (c) A wastewater service provider shall adapt the terms of a policy to the size of the
63 wastewater service provider measured either by annual operating budget or the number of
64 connections served by the wastewater service provider.
65 (2) The policy shall require the wastewater service provider to:
66 (a) complete an inventory of each qualified capital asset; and
67 (b) assess the physical condition of the qualified capital asset at least every five years
68 in accordance with a method established under Subsection (3)(a)(i).
69 (3) (a) The policy shall establish:
70 (i) a method to assess the physical condition of a qualified capital asset;
71 (ii) performance and condition standards for a qualified capital asset;
72 (iii) a program for monitoring and reporting the wastewater service provider's
73 application of and compliance with the policy, including a comparison of each qualified capital
74 asset's current status and targeted standards for that qualified capital asset as set forth in the
75 policy;
76 (iv) a process for the wastewater service provider to evaluate an existing qualified
77 capital asset for efficiency and expected service delivery; and
78 (v) objective criteria for the wastewater service provider to prioritize maintenance or
79 replacement of a qualified capital asset.
80 (b) A performance and condition standard described in Subsection (3)(a)(ii) may be:
81 (i) a mandated safety standard;
82 (ii) a standard condition of receiving federal, state, or local funding; or
83 (iii) an applicable engineering or other professional standard.
84 (4) (a) As part of a policy, a wastewater service provider shall adopt financial
85 guidelines to dedicate revenue to a priority qualified capital asset identified under Subsection
86 (3)(a)(v) in accordance with a multiyear qualified capital plan that:
87 (i) includes criteria and guidelines in the policy for allocating sufficient funds in a
88 multiyear qualified capital asset plan and in the wastewater service provider's annual operating
89 budget for assessing, maintaining, repairing, and replacing qualified capital assets;
90 (ii) establishes an ongoing source of funds in the multiyear qualified capital asset plan
91 and each annual operating budget for repair and replacement costs of qualified capital assets in
92 accordance with the policy; and
93 (iii) establishes a repair and replacement reserve for capital projects in the wastewater
94 service provider's capital projects fund and allocates from the repair and replacement reserve.
95 (b) The governing body of a wastewater service provider shall adopt an annual
96 operating budget that includes ongoing funding described in Subsection (4)(a)(ii).
97 (5) (a) A wastewater service provider shall submit a report of the wastewater service
98 provider's qualified capital asset facilities to the division as follows:
99 (i) if the wastewater service provider is treatment works with a capacity of 1,000,000
100 gallons per day or more, by no later than December 31, Ĥ→ [
100a years
101 thereafter;
102 (ii) if the wastewater service provider is treatment works with a capacity of less than
103 1,000,000 gallons per day, by no later than December 31, Ĥ→ [
103a five years
104 thereafter;
105 (iii) if the wastewater service provider is a sewerage system, by no later than December
106 31, Ĥ→ [
107 (iv) if the wastewater service provider is a large underground wastewater disposal
108 system or non-discharging treatment works, by no later than December 31, Ĥ→ [
108a and then
109 every five years thereafter.
110 (b) The qualified capital asset facilities report required under this Subsection (5) shall:
111 (i) describe the proposed replacement time frame for each qualified capital asset;
112 (ii) account for each funding source for a qualified capital asset and include any
113 restrictions a funding source may impose on the use or disposal of the qualified capital asset;
114 (iii) account for any change in a qualified capital asset's value since the last qualified
115 capital asset facilities report submitted by the wastewater service provider; and
116 (iv) provide a statement of actual expenditures and performance data for each qualified
117 capital asset compared to budgeted expenditures.
118 Section 3. Section 73-10g-401 is enacted to read:
119
120 73-10g-401. Definitions.
121 As used in this part:
122 (1) "Capital asset" means an asset that:
123 (a) is a significant investment or an essential component necessary to provide a service,
124 including:
125 (i) a facility;
126 (ii) infrastructure, whether above or below ground level;
127 (iii) equipment; or
128 (iv) a communications network; and
129 (b) is owned by a water provider.
130 (2) "Governing body" means:
131 (a) for a political subdivision, the political subdivision governing body defined in
132 Section 63A-15-102; or
133 (b) for a private entity, the private entity's board of directors, managing members,
134 partners, or equivalent body.
135 (3) "Policy" means the capital asset assessment, maintenance, and replacement policy
136 required under Subsection 73-10g-402(1).
137 (4) "Qualified capital asset" means a capital asset that is:
138 (a) identified in a policy as a qualified capital asset in accordance with Subsection
139 73-10g-402(1)(b); and
140 (b) inventoried, assessed, funded, or otherwise subject to a water provider's policy in
141 accordance with Section 73-10g-402.
142 (5) "Retail water supplier" means the same as that term is defined in Section 19-4-102.
143 (6) "Water conservancy district" means the same as that term is defined in Section
144 73-10-32.
145 (7) "Water provider" means:
146 (a) a retail water supplier; or
147 (b) a water conservancy district.
148 Section 4. Section 73-10g-402 is enacted to read:
149 73-10g-402. Capital asset policies.
150 (1) (a) A water provider shall adopt a policy for the assessment, maintenance, and
151 replacement of a capital asset that is a qualified capital asset.
152 (b) A policy shall define in general or specific terms which capital assets are qualified
153 capital assets.
154 (c) A water provider shall adapt the terms of a policy to the size of the water provider
155 measured either by annual operating budget or the number of connections served by the water
156 provider.
157 (2) The policy shall require the water provider to:
158 (a) complete an inventory of each qualified capital asset; and
159 (b) assess the physical condition of the qualified capital asset at least every five years
160 in accordance with a method established under Subsection (3)(a)(i).
161 (3) (a) The policy shall establish:
162 (i) a method to assess the physical condition of a qualified capital asset;
163 (ii) performance and condition standards for a qualified capital asset;
164 (iii) a program for monitoring and reporting the water provider's application of and
165 compliance with the policy, including a comparison of each qualified capital asset's current
166 status and targeted standards for that qualified capital asset as set forth in the policy;
167 (iv) a process for the water provider to evaluate an existing qualified capital asset for
168 efficiency and expected service delivery; and
169 (v) objective criteria for the water provider to prioritize maintenance or replacement of
170 a qualified capital asset.
171 (b) A performance and condition standard described in Subsection (3)(a)(ii) may be:
172 (i) a mandated safety standard;
173 (ii) a standard condition of receiving federal, state, or local funding; or
174 (iii) an applicable engineering or other professional standard.
175 (4) (a) As part of a policy, a water provider shall adopt financial guidelines to dedicate
176 revenue to a priority qualified capital asset identified under Subsection (3)(a)(v) in accordance
177 with a multiyear qualified capital plan that:
178 (i) includes criteria and guidelines in the policy for allocating sufficient funds in a
179 multiyear qualified capital asset plan and in the water provider's annual operating budget for
180 assessing, maintaining, repairing, and replacing qualified capital assets;
181 (ii) establishes an ongoing source of funds in the multiyear qualified capital asset plan
182 and each annual operating budget for repair and replacement costs of qualified capital assets in
183 accordance with the policy; and
184 (iii) for a water conservancy district, establishes a repair and replacement reserve for
185 capital projects in the water conservancy district's capital projects fund and allocate from the
186 repair and replacement reserve, subject to Subsection 17B-1-612(5).
187 (b) The governing body of a water provider shall adopt an annual operating budget that
188 includes ongoing funding described in Subsection (4)(a)(ii).
189 (5) (a) A water provider shall submit a report of the water provider's qualified capital
190 asset facilities as follows:
191 (i) if the water provider is a retail water supplier, the water provider shall submit the
192 report to the Division of Drinking Water:
193 (A) if the water provider serves 10,000 service connections or more, by no later than
194 December 31, 2022, and then every five years thereafter;
195 (B) if the water provider serves at least 3,000 service connections but less than 10,000
196 service connections, by no later than December 31, 2023, and then every five years thereafter;
197 (C) if the water provider serves at least 1,000 service connections but less than 3,000
198 service connections by no later than December 31, 2024, and then every five years thereafter;
199 and
200 (D) if the water provider serves at least 500 service connections but less than 1,000
201 service connections, by no later than December 31, 2025, and then every five years thereafter;
202 (ii) if the water provider is a water conservancy district, the water provider shall submit
203 the report to the Division of Water Resources by no later than December 31, 2022, and then
204 every five years thereafter.
205 (b) The qualified capital asset facilities report required under this Subsection (5) shall:
206 (i) describe the proposed replacement time frame for each qualified capital asset;
207 (ii) account for each funding source for a qualified capital asset and include any
208 restrictions a funding source may impose on the use or disposal of the qualified capital asset;
209 (iii) account for any change in a qualified capital asset's value since the last qualified
210 capital asset facilities report submitted by the water provider; and
211 (iv) provide a statement of actual expenditures and performance data for each qualified
212 capital asset compared to budgeted expenditures.
213 (6) A qualified water conservancy district, as defined in Section 17B-2a-1010, is not
214 subject to this part but shall comply with Section 17B-2a-1010.