1     
CAPITAL ASSETS RELATED TO WATER

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Keven J. Stratton

5     
Senate Sponsor: Scott D. Sandall

6     

7     LONG TITLE
8     General Description:
9          This bill addresses management of capital assets related to water.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     requires wastewater service providers or water providers to commit to adopt capital
14     asset management plans under certain circumstances;
15          ▸     requires rulemaking related to capital asset management plans;
16          ▸     addresses the scope of certain provisions;
17          ▸     requires participation in surveys or evaluations;
18          ▸     establishes a review and report related to capital asset management; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          None
24     Utah Code Sections Affected:
25     AMENDS:
26          73-10c-3, as last amended by Laws of Utah 2012, Chapter 212
27     ENACTS:
28          19-5-201, Utah Code Annotated 1953
29          19-5-202, Utah Code Annotated 1953

30          19-5-203, Utah Code Annotated 1953
31          73-10g-401, Utah Code Annotated 1953
32          73-10g-402, Utah Code Annotated 1953
33          73-10g-403, Utah Code Annotated 1953
34          73-10g-404, Utah Code Annotated 1953
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 19-5-201 is enacted to read:
38     
Part 2. Capital Assets for Wastewater

39          19-5-201. Definitions.
40          As used in this part:
41          (1) "Capital asset" means an asset that:
42          (a) is a significant investment or an essential component necessary to provide a
43     wastewater service, including:
44          (i) a facility;
45          (ii) infrastructure, whether above or below ground level;
46          (iii) equipment; or
47          (iv) a communications network; and
48          (b) is owned by a wastewater service provider.
49          (2) "Governing body" means a political subdivision governing body defined in Section
50     63A-15-102.
51          (3) "Large underground wastewater disposal system" is as defined by rule made by the
52     board in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
53          (4) "Wastewater service provider" means a political subdivision of the state that owns,
54     operates, or otherwise sponsors through agreement a sewerage system, a treatment works, or
55     large underground wastewater disposal system for the collection, storage, treatment, or disposal
56     of domestic waste.
57          Section 2. Section 19-5-202 is enacted to read:

58          19-5-202. Capital asset management.
59          (1) As a condition of receiving state or federal financing or grants to be used for an
60     improvement to a capital asset related to wastewater or sewer infrastructure, the governing
61     body of a wastewater service provider shall commit to adopt a capital asset management plan.
62          (2) The board shall make rules, in accordance with Title 63G, Chapter 3, Utah
63     Administrative Rulemaking Act, to establish the elements of a capital asset management plan
64     required by Subsection (1).
65          Section 3. Section 19-5-203 is enacted to read:
66          19-5-203. Participation in survey.
67          A wastewater service provider shall participate in the United States Environmental
68     Protection Agency's 2022 Clean Water Needs Survey and deliver the required data to the
69     survey data portal by no later than December 31, 2022.
70          Section 4. Section 73-10c-3 is amended to read:
71          73-10c-3. Water Development Coordinating Council created -- Purpose --
72     Members.
73          (1) (a) There is created within the Department of Natural Resources a Water
74     Development Coordinating Council. The council [comprises] is comprised of:
75          (i) the director of the Division of Water Resources;
76          (ii) the executive secretary of the Water Quality Board;
77          (iii) the executive secretary of the Drinking Water Board;
78          (iv) the director of the Housing and Community Development Division or the director's
79     designee; and
80          (v) the state treasurer or the state treasurer's designee.
81          (b) The council shall choose a chair and vice chair from among its own members.
82          (c) A member may not receive compensation or benefits for the member's service, but
83     may receive per diem and travel expenses in accordance with:
84          (i) Section 63A-3-106;
85          (ii) Section 63A-3-107; and

86          (iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
87     63A-3-107.
88          (2) The purposes of the council are to:
89          (a) coordinate the use and application of the funds available to the state to give
90     financial assistance to political subdivisions of this state so as to promote the conservation,
91     development, treatment, restoration, and protection of the waters of this state;
92          (b) promote the coordination of the financial assistance programs administered by the
93     state and the use of the financing alternative most economically advantageous to the state and
94     its political subdivisions;
95          (c) promote the consideration by the Board of Water Resources, Drinking Water
96     Board, and Water Quality Board of regional solutions to the water and wastewater needs of
97     individual political subdivisions of this state; [and]
98          (d) assess the adequacy and needs of the state and its political subdivisions with respect
99     to water-related infrastructures and advise the governor and the Legislature on those funding
100     needs[.]; and
101          (e) conduct reviews and reports on water-related infrastructure issues as directed by
102     statute.
103          Section 5. Section 73-10g-401 is enacted to read:
104     
Part 4. Capital Assets for Water

105          73-10g-401. Definitions.
106          As used in this part:
107          (1) "Capital asset" means an asset that:
108          (a) is a significant investment or an essential component necessary to provide water
109     service, including:
110          (i) a facility;
111          (ii) infrastructure, whether above or below ground level;
112          (iii) equipment; or
113          (iv) a communications network; and

114          (b) is owned by a water provider.
115          (2) "Governing body" means:
116          (a) for a political subdivision, the political subdivision governing body defined in
117     Section 63A-15-102; or
118          (b) for a private entity, the private entity's board of directors, managing members,
119     partners, or equivalent body.
120          (3) "Retail water supplier" means the same as that term is defined in Section 19-4-102.
121          (4) "Water conservancy district" means the same as that term is defined in Section
122     73-10-32.
123          (5) "Water provider" means:
124          (a) a retail water supplier; or
125          (b) a water conservancy district.
126          Section 6. Section 73-10g-402 is enacted to read:
127          73-10g-402. Capital asset management.
128          (1) As a condition of receiving state or federal financing or grants to be used for an
129     improvement to a capital asset related to water infrastructure, the governing body of a water
130     provider shall commit to adopt a capital asset management plan.
131          (2) (a) The Drinking Water Board shall make rules, in accordance with Title 63G,
132     Chapter 3, Utah Administrative Rulemaking Act, to establish the elements of a capital asset
133     management plan required under Subsection (1) for a water provider that is a retail water
134     supplier.
135          (b) The Board of Water Resources shall make rules, in accordance with Title 63G,
136     Chapter 3, Utah Administrative Rulemaking Act, to establish the elements of a capital asset
137     management plan required under Subsection (1) for a water provider that is a water
138     conservancy district.
139          (3) A qualified water conservancy district, as defined in Section 17B-2a-1010, is not
140     subject to this section but shall comply with Section 17B-2a-1010.
141          Section 7. Section 73-10g-403 is enacted to read:

142          73-10g-403. Participation in survey or evaluation.
143          A water provider shall participate in regular infrastructure needs surveys or evaluations
144     and shall complete the asset-related sections of a survey or evaluation within the deadline
145     established by the Division of Drinking Water or the Division of Water Resources.
146          Section 8. Section 73-10g-404 is enacted to read:
147          73-10g-404. Review and reporting by the Water Development Coordinating
148     Council.
149          (1) As used in this section:
150          (a) "Council" means the Water Development Coordinating Council created by Sections
151     73-10c-3 and 79-2-201.
152          (b) "Wastewater service provider" means the same as that term is defined in Section
153     19-5-201.
154          (2) The council shall review:
155          (a) best practices related to the assessment, evaluation, maintenance, and replacement
156     of capital assets of wastewater service providers or water providers; and
157          (b) costs associated with:
158          (i) the best practices described in Subsection (2)(a); and
159          (ii) adoption of a capital asset management plan.
160          (3) The council shall finalize the council's review and report to the Natural Resources,
161     Agriculture, and Environment Interim Committee by no later than the 2022 November interim
162     meeting of the Natural Resources, Agriculture, and Environment Interim Committee.