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H0546.........................................by RESOURCES AND CONSERVATION IDAHO WATER RESOURCE BOARD - Amends existing law relating to the Idaho Water Resource Board to revise conditions under which the board may approve a loan for certain water project costs. 02/02 House intro - 1st rdg - to printing 02/03 Rpt prt - to Res/Con 02/22 Rpt out - rec d/p - to 2nd rdg 02/23 2nd rdg - to 3rd rdg 03/01 3rd rdg - PASSED - 67-0-3 AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer, Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Brackett, Bradford, Cannon, Chadderdon, Clark, Collins, Crow, Deal, Denney, Ellsworth, Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest, Henderson, Jaquet, Kemp, Lake, LeFavour, Loertscher, Martinez, Mathews, McGeachin, McKague, Miller, Mitchell, Moyle, Nielsen, Nonini, Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche, Rydalch, Sali(Sali), Sayler, Schaefer, Shepherd(2), Shepherd(8), Shirley, Skippen, Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Wills, Wood NAYS -- None Absent and excused -- Edmunson, Trail, Mr. Speaker Floor Sponsor - Wood Title apvd - to Senate 03/02 Senate intro - 1st rdg - to Res/Env 03/14 Rpt out - rec d/p - to 2nd rdg 03/15 2nd rdg - to 3rd rdg 03/16 3rd rdg - PASSED - 35-0-0 AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett, Burtenshaw, Cameron, Coiner, Compton, Corder, Darrington, Davis, Fulcher, Gannon, Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little, Lodge, Malepeai, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder, Stegner, Stennett, Sweet, Werk, Williams NAYS -- None Absent and excused -- None Floor Sponsor - Pearce Title apvd - to House 03/17 To enrol 03/20 Rpt enrol - Sp signed 03/21 Pres signed - To Governor 03/22 Governor signed Session Law Chapter 126 Effective: 07/01/06
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-eighth Legislature Second Regular Session - 2006IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 546 BY RESOURCES AND CONSERVATION COMMITTEE 1 AN ACT 2 RELATING TO THE IDAHO WATER RESOURCE BOARD; AMENDING SECTION 42-1756, IDAHO 3 CODE, TO REVISE CONDITIONS UNDER WHICH THE BOARD MAY APPROVE A LOAN FOR 4 CERTAIN WATER PROJECT COSTS AND TO MAKE TECHNICAL CORRECTIONS; AND AMEND- 5 ING SECTION 42-2042, IDAHO CODE, TO PROVIDE A CORRECT CODE REFERENCE AND 6 TO MAKE TECHNICAL CORRECTIONS. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 42-1756, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 42-1756. LOANS FROM ACCOUNT -- APPLICATION -- INVESTIGATION -- APPROVAL 11 -- REPAYMENT -- STATEMENT -- FILING -- DEFAULT. (a1) Any irrigation district, 12 canal or irrigation company, water users' association, municipal corporation, 13 municipality, private corporation, or, in special cases approved by the board, 14 an individual may file an application with the board for a loan from the 15 revolving account for the purpose of financing project costs. Such application 16 shall be filed in such manner, and shall be in such form and be accompanied by 17 such information as may be prescribed by the board; provided, however, that 18 any such application filed with the board under the provisions of this act, 19 shall: 20 (1a) Describe the nature and purpose(s) of the proposed project. 21 (2b) Set forth or be accompanied by a plan for development of the pro- 22 posed project, together with such engineering and economic feasibility 23 data and estimated costs of construction as may be required by the board. 24 (3c) State whether money other than that for which application is made to 25 the board will be used for project costs, and whether such money is avail- 26 able or has been sought for this purpose. 27 (4d) Show that the applicant holds or can acquire title to all lands or 28 has the necessary easements and rights-of-way for the project and related 29 lands, and has or can acquire all water rights necessary for the construc- 30 tion, operation and maintenance of the proposed project, or that there 31 exists sufficient water available for appropriation by proof of a permit 32 issued by the director of the department of water resources. 33 (b2) Upon receipt of an application, the board shall evaluate and, if it 34 deems it to be necessary, investigate all aspects of the proposed project and 35 the proposed construction thereof. As a part of such investigation, the board 36 shall determine whether the plan for development of the project is satisfac- 37 tory. If the board determines that the plan is unsatisfactory, it shall return 38 the application to the applicant and may make such recommendations to the 39 applicant as are considered necessary to make the plan satisfactory. 40 (c3) The board may approve a loan for project costs if after investiga- 41 tion (if this is deemed necessary,) and evaluation it finds that: 42 (1a) The plan does not conflict with any extant Idaho state water plan; 43 (2b) The proposed project is feasible from an engineering standpoint and 2 1 economically justified, with studies showing a favorable benefit to cost 2 ratio; 3 (3c) The plan for development of the proposed project is satisfactory; 4 (4d) The applicant is qualified and responsible; 5 (5e) There is reasonable assurance that the borrower can repay the loan; 6 and 7 (6f) That money in the revolving account is available for the loan; and8(7) That the loan does not exceed five hundred thousand dollars9($500,000) unless legislative approval has been obtained. 10 (d4) If the board approves a loan, the board and the applicant or appli- 11 cants shall enter into an agreement for repayment to the revolving account of 12 money loaned therefrom, together with interest thereon at reasonable rates as 13 determined by the board. The agreement shall further provide that repayment of 14 the loan, together with interest thereon, shall commence no later than one (1) 15 full year after construction of the project is completed, and that repayment 16 shall be completed within the time period specified by the board; provided 17 that repayment to reserve accounts or guarantee funds shall be made as pro- 18 vided by order of the board. The repayment period shall not exceed sixty (60) 19 years, except that the board may extend the time for making repayment in the 20 event of emergency or hardship. Such agreement shall also provide for such 21 assurances of, and security for, repayment of the loan as are considered nec- 22 essary by the board. 23 (e5) The state shall have a lien upon a project constructed with money 24 from the revolving account for the amount of the loan, together with the 25 interest thereon. This lien shall attach to all project facilities, equipment, 26 easements, real property and property of any kind or nature associated with 27 the project and all water rights associated in any way with the project. The 28 board shall file a statement of the loan, its amount, terms and a description 29 of the project with the county recorder of each county in which the project or 30 any part thereof is located. The county recorder shall record the lien in a 31 book kept for the recording of liens and it shall be indexed as other liens 32 are required by law to be indexed. The lien shall be valid until paid in full 33 or otherwise discharged. The lien shall be foreclosed in accordance with 34 applicable state law governing foreclosure of mortgages and liens as set forth 35 in chapter 1 of title 6, Idaho Code, chapter 13 of title 45, Idaho Code, and 36 related provisions of the statutes of this state. 37 (f6) If an applicant fails to comply with the repayment contract, its 38 interest in the project may be conveyed to a successor upon approval by the 39 board, which may contract with the qualified successor in interest of the 40 original obligor for repayment of the loan, together with the interest 41 thereon, and for succession to its rights and obligations in any contract with 42 the board. 43 (g7) The state shall have a lien on any or all projects which the board 44 improves or renovates with money from the revolving account, and such lien 45 shall be valid and continue in effect until such funds, together with interest 46 thereon, have been paid in full and the lien discharged. The board shall file 47 a statement of the lien, and the lien shall be foreclosed upon all project 48 property and rights as provided in subsection (e5)aboveof this section. 49 SECTION 2. That Section 42-2042, Idaho Code, be, and the same is hereby 50 amended to read as follows: 51 42-2042. AUTHORIZATION -- FINANCING. Pursuant to section 42-1756(c)(7), 52 Idaho Code, the Idaho water resource board is authorized to plan, finance, 53 construct, acquire, operate, own, maintain, and be the project sponsor and de- 3 1 veloper of a water resource development project as provided in the provisions 2 of the Carey Act and to use the water resource board revolving development 3 fund and revenues or other additions thereto from any source, including, but 4 not limited to, proceeds from loans secured by project revenues, to finance or 5 guarantee the funding of said project. Said project is known as the Indian 6 HillsPproject, which is located in OwyheeCcounty approximately two (2) miles 7 southwest of Hammett, Idaho. The Idaho water resource board is authorized by 8 this act to proceed with the project on the basis identified and approved by 9 the Idaho water resource board in the proposal submitted, pursuant to section 10 42-1734(m11), Idaho Code, to the governor of Idaho on November 25, 1974; and 11 the Idaho water resource board is further authorized to proceed in accordance 12 with and exercise the authority for issuance of revenue bonds as provided in 13 section 42-1734(s17), Idaho Code. The Idaho water resource board is further 14 authorized to own, sell, convey, mortgage, pledge or incumber the lands for 15 said project and do all things necessary for the construction and completion 16 of said project including the acquisition of all necessary real and personal 17 property in connection therewith, together with all necessary pumping and 18 water distribution works and facilities at the site of such water project and 19 all other necessary and related structures and equipment, and, in addition to 20 the powers conferred elsewhere on the Idaho water resource board, to issue and 21 sell revenue bonds under the provisions of sections 42-1739 through 42-1749, 22 Idaho Code, pledging thereto the revenues which the board shall derive from 23 such water project, and such other revenues as may come into the water 24 resource board revolving development fund from any source whatsoever, includ- 25 ing, but not limited to, any tax funds pledged or dedicated to the water 26 resource board revolving development fund, in order to pay the costs of plan- 27 ning, financing, acquiring, construction, operation and maintenance of such 28 water project. The water resource board is further authorized to charge and 29 collect such fees and assessments necessary for payment and reimbursement for 30 all the costs of said project and the water resource board shall have a first 31 and prior lien upon all lands of the project and water rights now appurtenant 32 or to become appurtenant to said lands and water distribution facilities; said 33 lien shall be in all respects prior to any and all other liens no matter how 34 created or attempted to be created by the owner or possessor of the project 35 lands or by law, and shall remain in full force and effect until the last 36 deferred payment for water rights and project facilities is fully paid and 37 satisfied according to the terms of the contract under which water is acquired 38 for said project by persons making entry upon said lands.
STATEMENT OF PURPOSE RS 15809 The purpose of this legislation is to amend Section 42-1756 Idaho Code to delete former subsection (c) paragraph (7) to allow the Water Resource Board to facilitate loans from the revolving loan fund in excess of $500,000. Since this statute was passed in the 1970's, the costs of construction of water projects for irrigation facilities and municipal projects have increased dramatically. The size of loans, and the amount approved from this fund, are now limited by the loan fund balance and approval of the Board. Also, during the period of time that the legislature is not in session, the Board needs the ability to approve loan requests and move projects forward in a timely manner. The legislation also makes technical corrections to update the numbering of sub-sections and paragraphs in Sections 42-1756 and 42-2042. FISCAL NOTE No impact to the general fund. Contact Name: Hal Anderson, Water Resources, Dept. Of Phone: (208) 287-4800 Reps. John A. Stevenson, Dell Raybould Senator Charles Coiner STATEMENT OF PURPOSE/FISCAL NOTE H 546