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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 - 2006
IN 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; and
8 (7) That the loan does not exceed five hundred thousand dollars
9 ($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) above of 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 Hills Pproject, which is located in Owyhee Ccounty 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