1999 Legislation
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SENATE BILL NO. 1135 – Soil Conservation Comm, grants, use

SENATE BILL NO. 1135

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S1135...............................................by AGRICULTURAL AFFAIRS
SOIL CONSERVATION COMMISSION - Amends and adds to existing law to provide
that Soil Conservation Districts and the State Soil Conservation Commission
shall be the main entities providing grants, loans and approving programs
for reducing or eliminating nonpoint source pollution from agriculture.

02/09    Senate intro - 1st rdg - to printing
02/10    Rpt prt - to Agric Aff
02/16    Rpt out - rec d/p - to 2nd rdg
02/17    2nd rdg - to 3rd rdg
02/25    3rd rdg - PASSED - 34-0-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Crow, Danielson, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins,
      Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry, Richardson,
      Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
      Twiggs, Wheeler, Whitworth
      NAYS--None
      Absent and excused--Darrington
    Floor Sponsor - Branch
    Title apvd - to House
02/26    House intro - 1st rdg - to Agric Aff
03/09    Rpt out - rec d/p - to 2nd rdg
03/10    2nd rdg - to 3rd rdg
03/11    3rd rdg - PASSED - 65-0-5
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
      Black, Boe, Bruneel, Callister, Campbell, Chase, Clark, Cuddy, Deal,
      Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
      Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet,
      Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh,
      Linford, Loertscher, Marley, McKague, Montgomery, Mortensen, Moyle,
      Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali,
      Schaefer, Sellman, Smith, Smylie, Stevenson, Stoicheff, Stone,
      Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Williams, Zimmermann
      NAYS -- None
      Absent and excused -- Crow, Mader, Meyer, Wood, Mr Speaker
    Floor Sponsor - Bell, Chase
    Title apvd - to Senate
03/12    To enrol
03/15    Rpt enrol - Pres signed
03/16    Sp signed - to Governor
03/19    Governor signed
         Session Law Chapter 137
         Effective: 07/01/99

Bill Text


S1135


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                                      IN THE SENATE

                                   SENATE BILL NO. 1135

                            BY AGRICULTURAL AFFAIRS COMMITTEE

 1                                        AN ACT
 2    RELATING TO SOIL CONSERVATION DISTRICTS AND THE SOIL CONSERVATION  COMMISSION;
 3        AMENDING SECTION 22-2728, IDAHO CODE, TO REVISE LEGISLATIVE POLICY REGARD-
 4        ING  SOIL  CONSERVATION  DISTRICTS  AND  THE SOIL CONSERVATION COMMISSION;
 5        AMENDING SECTION 22-2729, IDAHO CODE, TO PROVIDE ADDITIONAL POWERS TO  THE
 6        SOIL  CONSERVATION  COMMISSION  REGARDING  CERTAIN  ACTIVITIES AND TO MAKE
 7        TECHNICAL CORRECTIONS; AMENDING SECTION 22-2730, IDAHO  CODE,  TO  PROVIDE
 8        CORRECT  NOMENCLATURE FOR THE RESOURCE CONSERVATION AND RANGELAND DEVELOP-
 9        MENT FUND, TO REVISE PURPOSES FOR THE FUND, TO PROVIDE THAT THE SOIL  CON-
10        SERVATION  COMMISSION SHALL ESTABLISH A LIST OF PRIORITY PROJECTS FOR CON-
11        TROL OF AGRICULTURAL NONPOINT SOURCE POLLUTION AND  TO  MAKE  A  TECHNICAL
12        CORRECTION;  AMENDING  SECTION 22-2731, IDAHO CODE, TO REVISE PURPOSES FOR
13        ALLOCATION OF THE RESOURCE CONSERVATION AND  RANGELAND  DEVELOPMENT  FUND;
14        AMENDING  SECTION 22-2732, IDAHO CODE, TO PROVIDE FOR LOANS FROM THE FUND,
15        TO REVISE PROCEDURES FOR APPLICANTS APPLYING FOR A LOAN FROM THE FUND  AND
16        TO  MAKE  TECHNICAL  CORRECTIONS; AMENDING SECTION 22-2733, IDAHO CODE, TO
17        PROVIDE FOR GRANTS FROM THE FUND, TO REVISE PROCEDURES FOR APPLICATION  OR
18        APPROVAL OF GRANTS FROM THE FUND AND TO MAKE TECHNICAL CORRECTIONS; AMEND-
19        ING  CHAPTER  27,  TITLE  22, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
20        22-2734, IDAHO CODE, TO ESTABLISH A COST-SHARE PROGRAM FROM THE  FUND  AND
21        TO  PROVIDE  PROCEDURES  GOVERNING APPLICATION AND APPROVAL FROM THE FUND;
22        AMENDING CHAPTER 27, TITLE 22, IDAHO CODE, BY THE ADDITION OF A  NEW  SEC-
23        TION 22-2735, IDAHO CODE, TO PROVIDE FOR PAYMENTS BY THE SOIL CONSERVATION
24        COMMISSION  FOR  ELIGIBLE  IMPROVEMENTS, PROJECTS OR PLANS, TO PROVIDE FOR
25        AGREEMENTS AND TO PROVIDE RULES; AMENDING SECTION 39-3624, IDAHO CODE,  TO
26        DELETE REFERENCE TO SOIL CONSERVATION DISTRICTS; AMENDING SECTION 39-3625,
27        IDAHO  CODE,  TO  DELETE  DEFINITIONS  OF "SOIL CONSERVATION DISTRICT" AND
28        "SOIL CONSERVATION COMMISSION"; AMENDING SECTION 39-3626, IDAHO  CODE,  TO
29        DELETE  REFERENCE  TO  SOIL CONSERVATION DISTRICTS, TO DELETE REFERENCE TO
30        THE BOARD OF HEALTH AND  WELFARE  AND  THE  SOIL  CONSERVATION  COMMISSION
31        ESTABLISHING  A  LIST  OF  PRIORITY  PROJECTS  FOR CONTROL OF AGRICULTURAL
32        NONPOINT SOURCE POLLUTION AND TO MAKE A TECHNICAL CORRECTION; AND AMENDING
33        SECTION 39-3627, IDAHO CODE, TO DELETE REFERENCE TO  CONTRACTS  OR  AGREE-
34        MENTS  WITH  SOIL  CONSERVATION DISTRICTS OR THE SOIL CONSERVATION COMMIS-
35        SION.

36    Be It Enacted by the Legislature of the State of Idaho:

37        SECTION 1.  That Section 22-2728, Idaho Code, be, and the same  is  hereby
38    amended to read as follows:

39        22-2728.  DECLARATION  OF  POLICY -- DESIGNATION OF SOIL CONSERVATION DIS-
40    TRICTS AND SOIL CONSERVATION COMMISSION. (a) The  legislature  recognizes  and
41    finds:
42        (1)  That  it  is essential to the general welfare of all citizens of this
43        state and it is in the public  interest  that  multiple  use  conservation


                                          2

 1        improvements  should  be implemented on a broader scale on both public and
 2        private lands in the state;
 3        (2)  That due to numerous economic and practical problems, relating to the
 4        improvement of individual tracts of land both public and private, insuffi-
 5        cient attention has been given to resource conservation and improvement;
 6        (3)  That rangeland and other agricultural land  improvement  projects  of
 7        the  nature contemplated by this act would enhance the economic productiv-
 8        ity and environmental quality of the state; and
 9        (4)  That it appears to be sound public policy for the state of  Idaho  to
10        provide  for  a  revolving account to provide loans ,   or
11         grants ,  and  cost-share  funding    to  the  end  that
12        rangelands  and  other  agricultural lands within the state can be made to
13        provide the greatest benefits to all concerned.
14        (b)  The purposes of this act  are  to  provide  a  means  whereby  funds,
15    including  federal,  state, private, or other moneys, can be obtained and uti-
16    lized for the accelerated development of  water quality programs,  
17    multiple  use rangeland ,  and other agricultural land conservation
18    improvements in the state and to provide that these improvements ,  proj-
19    ects  and  programs    be  locally  planned, coordinated, and
20    implemented through  existing  statutory provisions  pertaining  to
21    soil  conservation  districts  and  the state soil conservation commission and
22    through the administrative direction and supervision of the   state  soil
23    conservation    commission  in  cooperation with  the department of
24    agriculture and  appropriate federal and state agencies and  the  owners
25    and operators of privately-owned lands.

26        SECTION  2.  That  Section 22-2729, Idaho Code, be, and the same is hereby
27    amended to read as follows:

28        22-2729.  ADDITIONAL POWERS.  (a)  In addition to  the  powers,
29    functions,  and  duties of the soil conservation districts and state soil con-
30    servation commission previously provided for in this chapter,  these dis-
31    tricts and  the commission shall have the following  additional  powers,
32    functions, and duties:
33        (1)  The   districts   commission  shall conduct, in
34    cooperation with appropriate federal and state agencies  and  the  owners  and
35    operators  of  privately-owned rangelands and other agricultural lands in this
36    state, conservation improvements on or in respect to these lands for the  pur-
37    poses  of  implementing  conservation  systems to conserve and improve natural
38    resource conditions;
39        (2)  The commission shall assist and advise the districts  and  other
40    entities    in  implementing  the  conservation  improvements and ,
41      shall  within the funds available , may  provide
42    loans ,   or  grants , and cost-share funding, or a
43    combination of those funding sources,  from  the  resource  conservation
44    and  rangeland  development  account   fund  for funding
45    of selected conservation improvements;
46        (3)  The commission shall determine whether  funds  are  available  before
47    approving  any conservation improvements and after having made such determina-
48    tion shall enter into the necessary contracts for this implementation;
49        (4)  The Idaho soil conservation commission shall be the agency for admin-
50    istration of funds accruing to the resource conservation and rangeland  devel-
51    opment  program   account, and may receive up to four percent (4%) of the
52    moneys accruing to the account to be appropriated annually for the purpose  of
53    administering loans or grants authorized pursuant to this section  


                                          3

 1    fund ;
 2        (5)  The  commission  shall  promulgate  such  rules  and regulations
 3     as are necessary to carry out the purposes of this act.

 4        SECTION 3.  That Section 22-2730, Idaho Code, be, and the same  is  hereby
 5    amended to read as follows:

 6        22-2730.  RESOURCE  CONSERVATION  AND  RANGELAND DEVELOPMENT  ACCOUNT
 7      FUND  CREATED. ( a    1  )  There  is
 8    hereby  created  in  the  agency asset   state treasury 
 9    a n account   fund  to be known as  the  Idaho  resource
10    conservation and rangeland development  account   fund ,
11    which  shall consist of all moneys which may be appropriated to it by the leg-
12    islature or made available to it from federal, private, or other sources.  The
13    state  treasurer  is  directed  to  invest all unobligated moneys in the 
14    account   fund . All interest and other income accruing  from
15    such  investments  shall accrue to the  account   fund .
16    The soil conservation commission may expend  from  the    account  
17      fund  such sums as it shall deem necessary for any of the conser-
18    vation improvements , projects and programs    provided  for  under
19    this  act  under such terms and conditions provided for in its rules and 
20    regulations   the water quality program for agriculture .
21         (2)  The Idaho soil conservation commission shall establish  a  list
22    of  priority  projects  for control of agricultural nonpoint source pollution.
23    These priority lists shall be used as  the  method  for  allocation  of  funds
24    granted, or loaned or cost-shared under this act. 

25        SECTION  4.  That  Section 22-2731, Idaho Code, be, and the same is hereby
26    amended to read as follows:

27        22-2731.  ALLOCATION OF FUND.  (a)  The Idaho resource  conser-
28    vation  and rangeland development  account   fund  shall
29    be allocated for use:
30        (1)  By the  state soil conservation   commission  to  eligible
31    applicants  for  conservation improvements which it deems to be "in the public
32    interest" in such amounts as are necessary for the implementation of conserva-
33    tion measures identified in a conservation plan .  ; 
34        (2)  By the commission to eligible applicants for the purpose of conserva-
35    tion improvements on rangelands, agricultural lands, and riparian lands, which
36    will provide environmental enhancement to soil, water, wildlife,  and  related
37    resources ;
38        (3)  By  the  commission for the purpose of implementing the water quality
39    program for agriculture .

40        SECTION 5.  That Section 22-2732, Idaho Code, be, and the same  is  hereby
41    amended to read as follows:

42        22-2732.  LOANS FROM  ACCOUNT   FUND  -- APPLICATION
43    -- APPROVAL -- REPAYMENT. (a) Eligible applicants may file an application with
44    the local soil conservation district  or the state soil conservation com-
45    mission   for a loan from the  account   fund  for
46    the purpose of financing conservation improvement cost. Such application shall
47    be filed in such a manner, and shall be in such form, and  be  accompanied  by
48    such  information  as may be prescribed by the commission .  ;
49    provided, however, that a  A ny such application  filed  with


                                          4

 1    the  district   or the commission  under the provisions of this act
 2    shall:
 3        (1)  Describe the nature and purposes of the improvements   or  proj-
 4        ects .
 5        (2)  Set  forth  or  be accompanied by a conservation plan approved by the
 6        local soil conservation district  which   or  the  commis-
 7        sion  that  identifies the conservation improvements,  or proj-
 8        ects,  together with such  engineering     technical
 9          and  economic  feasibility  data and estimated costs  of con-
10        struction  as may be required by the commission.
11        (3)  State whether money other than that for  which  application  is  made
12        under  this act will be used for improvement costs, and whether such money
13        is available or has been sought for this purpose.
14        (4)  Show that the applicant holds or can acquire title to  all  lands  or
15        has  necessary  easements  and rights - of - way for
16        the improvements.
17        (5)  Show the  proposed  project is  feasible  from  an   engineering
18          a technical  standpoint and economically justified.
19        (b)  Within  sixty  (60) days of receipt of an application, the local soil
20    conservation district  or the commission  shall review  and  evalu-
21    ate,  and  if  it deems necessary, investigate  all  aspects of the
22    proposed improvements. As part of such investigation, the  district    or
23    the  commission  shall determine whether the plan for development of the
24    conservation improvements is satisfactory. If the district  or  the  com-
25    mission    determines  the  plan  is unsatisfactory, it shall return the
26    application to the applicant and  the district  may make such  rec-
27    ommendations  to  the  applicant  as are considered necessary to make the plan
28    satisfactory. If the district  or the commission    determines  the
29    plan    is   and application are  satisfactory, it shall
30     assign a priority to the application and forward the application to  the
31    commission  with  a recommendation   be considered  for fund-
32    ing.
33        (c)  The commission may approve a loan for  conservation  improvements  if
34    after review, evaluation, and investigation if necessary, finds that:
35        (1)  The applicant is qualified and responsible;
36        (2)  There is reasonable assurance that the borrower can repay the loan;
37        (3)  That  money  in  the  resource conservation and rangeland development
38         account   fund  is available for  the  loan  ;
39         . 
40         (4)  That the loan will not result in a condition whereby the appli-
41        cant  has  a  loan liability in excess of fifty thousand dollars ($50,000)
42        pursuant to this act. 
43        (d)  If the commission approves a loan,  the  applicant  shall  execute  a
44    promissory  note  for  repayment  to  the  account  of money loaned therefrom,
45    together with interest not to exceed six percent (6%) annually  as  determined
46    by  the commission. The note shall further provide that repayment of the loan,
47    together with interest thereon, shall commence not later  than  two  (2)  full
48    years  from  the  date the note is signed. Repayment shall be completed within
49    the time period specified by the commission not to exceed fifteen (15)  years,
50    except  that  the commission may extend the time for making repayment in event
51    of emergency or hardship. Such agreement shall also provide for such assurance
52    of, and security for, repayment of the loan as are considered necessary by the
53    commission.
54        (e)   Upon approval of the loan and securing all necessary documents,
55    the commission will make available, in  approved  form,  project  or  contract


                                          5

 1    funding.
 2        (f)    If  an applicant fails to comply with the repayment contract,
 3    the interest in the improvement may be conveyed to a successor  upon  approval
 4    by the commission, which may contract with the qualified successor in interest
 5    of  the  original  obligor  for  repayment of the loan, together with interest
 6    thereon, and for succession to its rights and obligation in any contract  with
 7    the commission.

 8        SECTION  6.  That  Section 22-2733, Idaho Code, be, and the same is hereby
 9    amended to read as follows:

10        22-2733.  GRANTS FROM  ACCOUNT   FUND   --  APPLICA-
11    TION  --  APPROVAL  --  GRANT  AGREEMENT.  (a) Eligible applicants may file an
12    application with the local soil conservation district  or the state  soil
13    conservation commission  for a grant from the  account  
14    fund  for the purpose of financing  demonstration project costs for
15    improving  rangeland  and riparian areas   conservation improvement
16    costs . Such application shall be filed in such a manner and shall be in
17    such form, and be accompanied by such information as may be prescribed by  the
18    commission;  provided,  however, that any such application filed with the dis-
19    trict  or the commission  under  the  provisions  of  this  section
20    shall:
21        (1)  Describe  the nature and purpose of the  improvements or conser-
22        vation plan implementation  project.
23        (2)  Set forth or be accompanied by a n  improvement    project
24        plan  approved  by the local soil conservation district  which 
25         or the  commission  that    identifies  the  practices  to  be
26        applied,  together  with  such    engineering    technical
27         and economic feasibility data and estimated  costs    of  con-
28        struction  as may be required by the commission.
29        (3)  State  whether  money  other  than that for which application is made
30        under this section will be used for  improvement  project 
31        or conservation plan implementation  costs, and whether  such  money
32        is available or has been sought for this purpose.
33        (4)  Show  that  the  applicant holds or can acquire title to all lands or
34        has necessary easements and rights -  of  -  way  to
35        implement the project plan.
36        (b)  Within  sixty  (60) days of receipt of an application, the local soil
37    conservation  district    or  the  commission    shall  review  and
38    evaluate ,  and ,  if it  deems  necessary,  investigate
39    all  aspects  of the proposed improvement s  , project or con-
40    servation plan . As part of such investigation, the  district    or
41    the  commission    shall determine whether the project plan is satisfac-
42    tory. If the district  or the commission  determines that the  plan
43    is  unsatisfactory,  it  shall return the application to the applicant and the
44    district  or the commission  may make such recommendations  to  the
45    applicant  as  are  considered necessary to make the plan satisfactory. If the
46    district  or the commission  determines the plan  is  satisfactory,
47    it  shall   assign a priority to the application and forward the applica-
48    tion to the commission with a recommendation   be considered 
49    for funding.
50        (c)  The commission may approve a grant if after review,  evaluation,  and
51    investigation if necessary, it finds that:
52        (1)  The applicant is qualified and responsible.
53        (2)  The    improvement,    project , or conservation plan


                                          6

 1         demonstrates public benefits.
 2        (3)  That money in the resource  conservation  and  rangeland  development
 3         account   fund  is available for the grant.
 4        (d)  If  the  commission  approves  a  grant,  the  commission 
 5    applicant shall enter into an agreement covering the grant  offer  and  accep-
 6    tance of the grant for implementing the  improvement,  project
 7    ,  or  conservation    plan.  The  agreement shall be  improvement,
 8     project , or conservation plan  specific. The terms and con-
 9    ditions shall be those specified by the commission.
10         (e)  Upon approval of the grant and  securing  all  necessary  docu-
11    ments,  the  commission  will make available, in the approved form, project or
12    contract funding. 

13        SECTION 7.  That Chapter 27, Title 22, Idaho Code, be,  and  the  same  is
14    hereby  amended  by  the addition thereto of a  NEW SECTION , to be
15    known and designated as Section 22-2734, Idaho Code, and to read as follows:

16        22-2734.  COST SHARE FROM FUND -- APPLICATION --  APPROVAL.  (1)  Eligible
17    applicants may file an application with the state soil conservation commission
18    for  a  cost-share contract, project, or program from the fund for the purpose
19    of financing agricultural and grazing conservation improvements. Such applica-
20    tion shall be filed in such a manner and shall be in such form and be accompa-
21    nied by such information as may be prescribed by the commission; provided how-
22    ever, that any such application filed with the commission under the provisions
23    of this act shall:
24        (a)  Describe the nature and purposes of  the  improvements  and  projects
25        requiring cost sharing;
26        (b)  Set  forth  or be accompanied by a plan that identifies the conserva-
27        tion improvements or projects, together with such technical  and  economic
28        feasibility data and estimated costs as may be required by the commission;
29        (c)  State  whether  money  other  than that for which application is made
30        under this act will be used for costs, and whether such money is available
31        or has been sought for this purpose;
32        (d)  Show the proposed project is feasible from a technical standpoint and
33        is economically justified.
34        (2)  Within sixty (60) days of receipt of an application for a  cost-share
35    project,  the commission shall review and evaluate and, if it deems necessary,
36    investigate aspects of the contract or project. As part of such investigation,
37    the commission shall determine whether the plan for development of the conser-
38    vation improvements is satisfactory. If the commission determines the plan  is
39    unsatisfactory,  it  shall  return  the  application  to the applicant and the
40    appropriate agency may make such recommendations to the applicant as are  con-
41    sidered  necessary to make the plan satisfactory. If the commission determines
42    the plan is satisfactory, it shall be considered for funding.
43        (3)  The commission may approve a cost-share grant for conservation  proj-
44    ects and improvements if, after review, evaluation and investigation, it finds
45    that:
46        (a)  The applicant is qualified and responsible;
47        (b)  There  is reasonable assurance that the applicant will adhere to con-
48        tract terms;
49        (c)  The money in the resource conservation and rangeland development fund
50        is available for the cost-share project.
51        (4)  Upon approval of the cost-share contract and securing  all  necessary
52    documents, the commission will make funding available.


                                          7

 1        SECTION  8.  That  Chapter  27,  Title 22, Idaho Code, be, and the same is
 2    hereby amended by the addition thereto of a  NEW SECTION  ,  to  be
 3    known and designated as Section 22-2735, Idaho Code, and to read as follows:

 4        22-2735.  PAYMENTS  BY  THE STATE SOIL CONSERVATION COMMISSION -- RULES --
 5    APPROVAL OF ATTORNEY GENERAL -- AUDIT OF PAYMENTS. (1) The commission may make
 6    payments not to exceed the estimated reasonable cost of an  eligible  improve-
 7    ment, project, or plan.
 8        (2)  The  commission  may,  in  the name of the state of Idaho, enter into
 9    contracts with approved applicants, and any such approved applicants may enter
10    into a contract with the commission concerning eligible improvements, projects
11    or plans. Any such contract may include such provisions as may be agreed  upon
12    by  the parties thereto, and shall include, in substance, the following provi-
13    sions:
14        (a)  An estimate of the reasonable cost of the improvements, projects,  or
15        plans as determined by the commission;
16        (b)  The  terms  under which the commission may unilaterally terminate the
17        contract and/or seek repayment from the application of sums  already  paid
18        pursuant to the contract for noncompliance by the applicant with the terms
19        and conditions of the contract and the provisions of this chapter;
20        (c)  An  agreement  by  the applicant binding for the life of the eligible
21        improvements, projects or plans:
22             (i)   To develop water quality plans for landowners and provide  pay-
23             ments to landowners for installation of best management practices;
24             (ii)  To  determine  payment rates in conjunction with the commission
25             for best management practices;
26             (iii) To establish a method for  administration  and  provisions  for
27             technical  assistance  to  landowners in conjunction with the commis-
28             sion;
29             (iv)  To allow the state to make payments up to the estimated reason-
30             able cost  for  best  management  practices  installation,  technical
31             assistance and project administration of an eligible project;
32             (v)   To  develop  and  to  secure  the approval of the commission of
33             plans for operation of the eligible project;
34             (vi)  To ensure that the local matching share of the cost is provided
35             as applicable;
36             (vii) To assure an adequate  level  of  landowner  participation  and
37             application  of  best  management  practices  to ensure water quality
38             goals are met.
39        (3)  The commission may enter into contracts to provide  technical  assis-
40    tance to applicants that have entered agreements pursuant to this chapter. Any
41    such  contract may include such provisions agreed upon by the parties thereto,
42    and shall include, in substance, the following provisions:
43        (a)  An estimate of the reasonable cost of technical assistance;
44        (b)  The terms under which the commission may unilaterally  terminate  the
45        contract, and/or seek repayment of sums paid pursuant to the contract, for
46        noncompliance  by the applicants with the terms and conditions of the con-
47        tract, the provisions of this chapter, or rules adopted pursuant thereto.
48        (4)  The commission may enter into contracts and establish  procedures  to
49    be  followed  in applying for eligible improvements, projects and plans herein
50    authorized as shall be necessary for the effective administration of the water
51    quality program for agriculture.
52        (5)  All contracts entered into pursuant to this section shall be  subject
53    to approval by the attorney general as to form. All payments by the state pur-
54    suant to such contracts shall be made after audit and upon warrant as provided


                                          8

 1    by  law on vouchers approved by the the director of the department of agricul-
 2    ture.
 3        (6)  All grant agreements and contracts previously entered into  with  the
 4    state board of health and welfare, soil conservation districts and the commis-
 5    sion  pursuant to section 39-3627, Idaho Code, for payments and administration
 6    are now to be administered and payments implemented solely by the commission.

 7        SECTION 9.  That Section 39-3624, Idaho Code, be, and the same  is  hereby
 8    amended to read as follows:

 9        39-3624.  DECLARATION  OF  POLICY -- DESIGNATION OF DIRECTOR. The legisla-
10    ture, recognizing that water is one (1) of the state's most  valuable  natural
11    resources,  has adopted water quality standards and authorized the director of
12    the department of health and welfare to implement these standards. In order to
13    provide and maintain maximum water quality in the state for  domestic,  indus-
14    trial,  agricultural  (irrigation  and  stockwatering), mining, manufacturing,
15    electric power generation, municipal, fish culture,  artificial  ground  water
16    recharge,  transportation  and  recreational purposes at the earliest possible
17    date, and to conform to the expressed intent of congress to abate pollution of
18    ground waters, streams and lakes, the legislature declares the purpose of this
19    act is to enhance and preserve the quality and value of the water resources of
20    the state of Idaho and to assist in the  prevention,  control,  abatement  and
21    monitoring of water pollution. In consequence of the benefits resulting to the
22    public  health,  welfare and economy it is hereby declared to be the policy of
23    the state of Idaho to protect this  natural resource by assisting in  monitor-
24    ing,  preventing and controlling water pollution; to support and aid technical
25    and planning research leading to the prevention and control  of  water  pollu-
26    tion, and to provide financial and technical assistance to municipalities
27    ,  soil  conservation districts  and other agencies in the abatement and
28    prevention of water pollution. The director of the department  of  health  and
29    welfare  shall  administer  this  act and nothing herein shall be construed as
30    impairing or in any manner affecting the statutory authority  or  jurisdiction
31    of  municipalities  in  providing domestic water, sewage collection and treat-
32    ment.

33        SECTION 10.  That Section 39-3625, Idaho Code, be, and the same is  hereby
34    amended to read as follows:

35        39-3625.  DEFINITIONS.  A. "Sewage treatment works" means any facility for
36    the purpose of collecting, treating, neutralizing  or  stabilizing  sewage  or
37    industrial  wastes of a liquid nature, including treatment by disposal plants,
38    the necessary intercepting, outfall and outlet sewers, pumping stations  inte-
39    gral  to  such  plants  or sewers, equipment and furnishings thereof and their
40    appurtenances.
41        B.  "Construction" means the erection, building, acquisition,  alteration,
42    reconstruction,  improvement  or  extension  of sewage treatment works or best
43    management practices, preliminary planning to determine the economic and engi-
44    neering feasibility of sewage treatment works or  best  management  practices,
45    the  engineering,  architectural,  legal,  fiscal and economic investigations,
46    reports and studies, surveys, designs,  plans,  working  drawings,  specifica-
47    tions,  procedures,  and  other action necessary in the construction of sewage
48    treatment works or best management practices, and the inspection and  supervi-
49    sion  of  the  construction of sewage treatment works or best management prac-
50    tices.
51        C.  "Eligible construction project" means a project  for  construction  of


                                          9

 1    sewage treatment works or for a project for the application of best management
 2    practices  as  set  forth in the approved state water quality plan, in related
 3    project areas:
 4        1.  For which approval of the  Idaho  board  of  health  and  welfare   is
 5        required under section 39-118, Idaho Code;
 6        2.  Which  is,  in  the judgment of the Idaho board of health and welfare,
 7        eligible for water pollution abatement assistance, whether or not  federal
 8        funds are then available therefor;
 9        3.  Which  conforms with applicable rules of the Idaho board of health and
10        welfare;
11        4.  Which is, in the judgment of the Idaho board of  health  and  welfare,
12        necessary  for the accomplishment of the state's policy of water purity as
13        stated in section 39-3601, Idaho Code; and
14        5.  Which is needed, in the judgment of the Idaho board of health and wel-
15        fare, to correct existing water pollution problems or public  health  haz-
16        ards  and  to  provide reasonable reserve capacity to prevent future water
17        pollution problems or public health hazards.
18        D.  "Municipality" means any county, city, special service district,  non-
19    profit corporation or other governmental entity having authority to dispose of
20    sewage,  industrial  wastes,  or  other wastes, any Indian tribe or authorized
21    Indian tribal organization, or any combination of two (2) or more of the fore-
22    going acting jointly, in connection with an eligible project.
23        E.  "Board" means the Idaho board of health and welfare.
24        F.  "Department" means the Idaho department of health and welfare.
25        G.  "Director" means the director of the Idaho department  of  health  and
26    welfare.
27        H.  "Nondomestic  wastewater"  means wastewater whose source of contamina-
28    tion is not principally human excreta.
29        I.  "Best management practice" means  practices,  techniques  or  measures
30    identified in the state water quality plan which are determined to be the most
31    effective,  practicable  means  of preventing or reducing pollutants generated
32    from nonpoint sources to a level compatible with water quality goals.
33        J.   "Soil conservation district" means an entity of state government
34    as defined in section 22-2717, Idaho Code.
35        K.  "Soil conservation commission" means an agency of state government  as
36    created by section 22-2718, Idaho Code.
37        L.    "Nonpoint  source  pollution" means water pollution that comes
38    from many varied, nonspecific and diffused sources and can be  categorized  by
39    the general land disturbing activity that causes the pollution.
40          M    K  .  "Training  program" means any course of
41    training established to provide sewage  treatment  plant  operating  personnel
42    with increased knowledge to improve their ability to operate and maintain sew-
43    age treatment works.

44        SECTION  11.  That Section 39-3626, Idaho Code, be, and the same is hereby
45    amended to read as follows:

46        39-3626.  AUTHORIZATION OF GRANTS AND LOANS -- DESIGNATION OF  ADMINISTER-
47    ING  AGENCY  --  RESERVATION  OF  FUNDS FOR OPERATIONS -- CRITERIA -- PRIORITY
48    PROJECTS -- ELIGIBLE PROJECTS. A. The state of Idaho is hereby  authorized  to
49    make  grants  and loans at or below market interest rates, as funds are avail-
50    able, to any municipality  or soil conservation district  to assist
51    said municipality  or soil conservation district  in the  construc-
52    tion of sewage treatment works or application of best management practices and
53    to provide for training of treatment plant operating personnel.


                                          10

 1        B.  The Idaho board of health and welfare through the department of health
 2    and  welfare  shall  be  the agency for administration of funds authorized for
 3    grants or loans under this act, and may reserve up to four percent (4%) of the
 4    moneys accruing annually to the water pollution control and wastewater  facil-
 5    ity loan accounts to be appropriated annually for the purpose of operating the
 6    water  quality  programs  established  pursuant to this chapter. The board may
 7    also reserve up to six percent (6%) of the moneys  accruing  annually  to  the
 8    water pollution control account to be appropriated annually for the purpose of
 9    conducting water quality studies including monitoring.
10        C.  In  allocating state construction grants and loans under this act, the
11    Idaho board of health and welfare shall give consideration to water  pollution
12    control needs and protection of public health.
13        D.  Pursuant  to  subsection C .  the Idaho board of health and
14    welfare shall establish a list of priority municipal sewage facility projects.
15     The Idaho board of health and welfare with the  approval  of  the  Idaho
16    soil  conservation  commission shall establish a list of priority projects for
17    control of agricultural nonpoint source pollution. These priority lists  shall
18    be  used  as  the  method for allocation of funds granted or loaned under this
19    act. 

20        SECTION 12.  That Section 39-3627, Idaho Code, be, and the same is  hereby
21    amended to read as follows:

22        39-3627.  PAYMENTS  BY STATE BOARD OF HEALTH AND WELFARE -- CONTRACTS WITH
23    MUNICIPALITIES , SOIL CONSERVATION DISTRICTS OR SOIL CONSERVATION COMMIS-
24    SION  -- RULES -- APPROVAL OF ATTORNEY GENERAL -- AUDIT OF PAYMENTS.  A.
25    The  Idaho  board of health and welfare may make payments not to exceed ninety
26    percent (90%) of the estimated reasonable cost  of  an  eligible  construction
27    project funded by a grant. Payments may be made which are equal to one hundred
28    percent  (100%)  of  the estimated reasonable cost of an eligible construction
29    project funded by a loan.
30        B.  The Idaho board of health and welfare may, in the name of the state of
31    Idaho, enter into contracts with municipalities    or  soil  conservation
32    districts,    and  any such municipality  or soil conservation dis-
33    trict  may enter into a contract with the Idaho board of health and wel-
34    fare, concerning eligible construction projects. Any such contract may include
35    such provisions as may be agreed  upon  by  the  parties  thereto,  and  shall
36    include, in substance, the following provisions:
37        1.  An estimate of the reasonable cost of the project as determined by the
38        Idaho board of health and welfare.
39        2.  An  agreement by the municipality, binding for the actual service life
40        of the sewage treatment works:
41             a.  To proceed expeditiously  with,  and  complete,  the  project  in
42             accordance  with  plans  approved  pursuant  to section 39-118, Idaho
43             Code.
44             b.  To commence operation of the sewage treatment works on completion
45             of the project, and not to discontinue operation or  dispose  of  the
46             sewage  treatment  works  without the approval of the board of health
47             and welfare.
48             c.  To operate and maintain the sewage treatment works in  accordance
49             with applicable provisions and rules of the board.
50             d.  To  make available on an equitable basis the services of the sew-
51             age treatment works to the residents and  commercial  and  industrial
52             establishments of areas it was designed to serve.
53             e.  To  provide  for  the  payment of the municipality's share of the


                                          11

 1             cost of the project when the project is built using grant funds.
 2             f.  To develop and to secure the approval of the department of  plans
 3             for  the operation and maintenance of the sewage treatment works; and
 4             of plans and programs for the recovery of the capital costs and oper-
 5             ating expenses of the works or system.
 6             g.  To allow the board to make loans of up  to  one  hundred  percent
 7             (100%)  and  supplemental grants based upon financial capability to a
 8             municipality for the estimated reasonable cost of an  eligible  proj-
 9             ect, which may include treatment of nondomestic wastewater.
10             h.  To  provide for the accumulation of funds through the use of tax-
11             ing powers, through charges made for services, through revenue bonds,
12             or otherwise, for the purposes of (1) capital replacement, (2) future
13             improvement, betterment, and extension of such  works  occasioned  by
14             increased  wastewater  loadings  on the works, and (3) establishing a
15             fund dedicated solely to repayment of principal and interest of loans
16             made subsequent to this chapter.
17             i.  To commence annual principal and interest payments not later than
18             one (1) year from the date construction is completed and  to  provide
19             for  full amortization of loans not later than twenty (20) years from
20             the date project construction is completed.
21        3.  The terms under which the Idaho board of health and welfare  may  uni-
22        laterally terminate the contract and/or seek repayment from the municipal-
23        ity  or soil conservation district  of sums already paid pursu-
24        ant  to  the  contract for noncompliance by the municipality  or soil
25        conservation district  with the terms and conditions of the contract
26        and the provisions of this chapter.
27         4.  An agreement by the soil conservation district, binding for  the
28        life of the eligible project:
29             a.  To  develop  water  quality  plans  for landowners in the project
30             areas and provide cost-share payments to landowners for  installation
31             of best management practices.
32             b.  To  determine cost-share rates in conjunction with the state soil
33             conservation commission for best management practices.
34             c.  In conjunction with the state soil conservation commission estab-
35             lish a method for project administration and provisions for technical
36             assistance to landowners.
37             d.  To allow the state to give grants of up to ninety  percent  (90%)
38             of  the  estimated  reasonable  cost  for  best  management practices
39             installation, technical assistance and project administration  of  an
40             eligible project.
41             e.  To  develop  and to secure the approval of the department and the
42             state soil conservation commission of plans for operation of the eli-
43             gible project.
44             f.  To ensure that the local matching share of the cost of the  proj-
45             ect is provided.
46             g.  To assure an adequate level of landowner participation and appli-
47             cation of best management practices to insure water quality goals are
48             met.
49        C.  The Idaho board of health and welfare may, in the name of the state of
50    Idaho,  enter  into  contracts  with the soil conservation commission, and the
51    soil conservation commission may enter into contracts with the Idaho board  of
52    health  and welfare, to provide technical assistance to soil conservation dis-
53    tricts which have entered grant agreements pursuant to this chapter.  Any such
54    contract may include such provisions agreed upon by the parties  thereto,  and
55    shall include, in substance, the following provisions:


                                          12

 1        1.  An  estimate  of the reasonable cost of technical assistance as deter-
 2        mined by the Idaho board of health and welfare.
 3        2.  The terms under which the Idaho board of health and welfare  may  uni-
 4        laterally  terminate the contract, and/or seek repayment of sums paid pur-
 5        suant to the contract, for noncompliance by the soil conservation  commis-
 6        sion with the terms and conditions of the contract, the provisions of this
 7        chapter, or rules adopted pursuant thereto.
 8        D   C .  The board may adopt rules necessary for the mak-
 9    ing and enforcing of contracts hereunder and  establishing  procedures  to  be
10    followed in applying for state construction grants or loans or training grants
11    herein  authorized  as  shall be necessary for the effective administration of
12    the grants and loans program.
13         E  D .  All contracts entered into pursuant to this
14    section shall be subject to approval by the attorney general as to  form.  All
15    payments by the state pursuant to such contracts shall be made after audit and
16    upon warrant as provided by law on vouchers approved by the director.

Statement of Purpose / Fiscal Impact


                       STATEMENT OF PURPOSE
                             RS 08943
                                  
  This legislation amends Titles 22-2728 through 22-2738 to
  provide as state policy the use of a revolving account to
  provide loans grants and cost share opportunities to land
  owners and users of agricultural and range lands, can
  provide benefit to citizens. The amendments provide for the
  accelerated development of water quality programs, multiple
  use rangeland and other land conservation improvements and
  to provide that these improvements, projects, and programs
  be planned an implemented through Soil Conservation
  Districts and the Soil Conservation Commission.
  
  The legislation further amends Title39-3624 through 39-3627
  to remove the Soil Conservation Districts and Soil
  Conservation Commission from any formal programmatic
  relationship with the Idaho Department of Health and
  Welfare/Division of Environmental 
  
  Administration of landowner/operator contracts from the
  expired State Agricultural Water Quality Program will be
  moved from Idaho Department of Health and Welfare/Division
  of Environmental Quality to the Soil Conservation
  Commission.
  
  Fiscal impact - No fiscal impact.
  
  Contact: Representative Bell 334-4736
  Senator Branch 332-1328
           
  
  
  
  
  
  
  
  
  
  
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