2018 Utah Legislative Update

Transcription

1 Rural Water Association of Utah 2018 Annual Conference 2018 Utah Legislative Update David B. Hartvigsen SMITH HARTVIGSEN PLLC MARCH 1, 2018

2 The Legislative Process Steps for a Bill to become Law 1. Issue may be studied by an Interim Committee 2. Bill File (with title only) Opened by Legislator 3. Bill is numbered (text of bill made public) 4. Bill is introduced and sent to the Rules Committee 5. Bill is assigned to a Standing committee for a hearing in each house (1x in House, 1x in Senate) 6. Bill is subject to Floor Debate (1x in House, 2x in Senate) 7. Bill, if passed, is enrolled & sent to Governor for action 8. Veto Override Session 9. Bill is enacted, sent back to Interim Study, or filed (dead) Rule

3 HB60 Water Commissioner Amendments This Bill exempts the State Engineer from having to comply with all of the requirements of the State s Procurement Code with respect to the use of the Water Commissioner Fund, which consists of money from water users. Rep. Chew Sen. Dayton Sen. 2 nd #3 Circled It also clarifies the procedure that each Distribution System Committee must follow for approving Water/River Commissioner expenses.

4 HB73 Instream Flow Water Rights Amendments Utah currently allows 3 entities to hold instream flow rights: Utah Division of Wildlife Resources Utah Division of Parks & Recreation, and A qualified Fishing Group that promotes fishing opportunities The Fishing Groups were added on a temporary 10-year test basis Rep. Hawkes Sen. Not heard in House Committee The 10-year test period expires on December 31, 2018 This bill deletes the expiration date and gives Fishing Groups a permanent right to hold instream flow water rights SB35 is a similar bill, but it only pushes the expiration date back one year to December 31, 2019

5 HB103 S1 Water Conservation [Plan] Revisions This Bill adds new requirements to what must be included in the Water Conservation Plans that culinary and secondary water providers are required to prepare, adopt, and file with the Utah Division of Water Resources These plans must now include: Clear water use reduction goals for residential, commercial and industrial uses Specific water conservation measures for residential, commercial and industrial uses, including landscaping Information that was previously optional, such as conservation based rates, reuse, leak repair, and public education Complete and accurate water use data Each water provider must report annually to its governing board on its efforts and progress in achieving the plan s objectives Rep. Froerer Sen. Anderegg Sen. 2 nd #63

6 HB124 S1 Water Holdings Accountability & Transparency Amds. This Bill requires a 1 st class city (pop. of 100K+) that supplies municipal water outside of its boundaries to provide the following information to the State Engineer and to post it on its website: A map of the area that it serves Any Change Applications (by number) being used to serve water outside of its boundaries, if applicable The amount of water being delivered outside of its boundaries Its water rate fee schedule for users both inside and outside of its boundaries The number of retail connections served inside its boundaries and the number served outside of its boundaries Certain Master Meter information Rep. Coleman Sen. Van Tassell House 3 rd #11

7 HB135 S3 Extraterritorial Jurisdiction Amendments Under U.C.A , a city (pop. of 1,000+) has jurisdiction over the watershed outside of its boundaries that is the source of its water supplies in order to protect its water from pollution For most cities, this jurisdiction is limited to 15 miles upstream for its point of diversion and 300 feet on each side of the stream However, for cities of the first class (pop. of 100,000+), this jurisdiction currently extends to the entire watershed upstream for its point of diversion This Bill deletes the special provision for cities of the first class that gave them much broader extraterritorial jurisdiction The effective date of this change would be July 1, 2020 Rep. Noel Sen. House 3 rd #12

8 HB244 Culinary Water Discount This Bill expressly allows a retail water provider to offer a discounted rate to a customer that uses culinary water for irrigation or landscape purposes if the customer meets any conservation best practices or efficiencies established by the retail water provider. Rep. Daw Sen. Not heard in House Committee A retail water provider is defined as an entity that supplies culinary* water to end users; and has more than 500 service connections *Will change to culinary or pressurized secondary water if HB103 passes

9 HB255 Extra-Jurisdictional Municipal Property This Bill deals with the scenario where a municipality owns property within the boundaries of another municipality It requires the municipality to hold a public hearing before buying, leasing, etc., land located within another municipality It requires the municipality to make a finding that there is no suitable land within its own boundaries for intended purpose before it can condemn land located within another municipality Rep. Coleman Sen. In new House Committee This Bill also takes away the automatic tax exemption on property owned by a municipality for property located within another municipality The municipality that has land within its boundaries that is owned by another municipality may choose to levy a tax on that property

10 HB303 S2 Drinking Water Source Sizing Requirements This Bill defines a community water system to be a public water system that serves residents year-round It gives the Drinking Water Board authority to make rules regarding fines and penalties for a community water system that fails to comply with certain reporting requirements It also requires a community water system serving 500+ people to accurately collect and report to the State Engineer the following data: Peak day source demand Average annual demand The number of retail residential equivalent ( RE ) connections The quantity of non-revue water delivered Other types of data required by the Division of Drinking Water by rule Rep. Sandall Sen. Buxton House 3 rd #32

11 HB303 S2 Drinking Water Source Sizing Requirements (cont d.) This Bill requires the Director of the Division of Drinking Water to set system-specific source and storage minimum sizing requirements for community water systems based on the system s reported actual water use data from the last three years. This data is to be provided by: Rep. Sandall Sen. Buxton House 3 rd #32 March 1, 2019 for systems serving at least 3,300 people March 1, 2023 for systems serving 500 to 3,300 people On a case-by-case basis for systems serving less than 500 people An alternate method of establishing these minimum requirements is provided for systems where the actual data is unavailable These minimum requirements shall include the needed fire storage capacity pursuant to the State Fire Code and Local Fire Code Official

12 HB332 S1 Local Government Financial Amendments This Bill, among other things, encourages local and special service districts with annual budgets of less than $50,000 to obtain liability insurance This same encouragement should be allied to every water supplier of any type, public or private Rep. Handy Sen. Stevenson Sen. 2 nd #

13 HB341 Government Nonprofit Amendments This Bill simply repeals a repealer in a bill from last year. Last year s bill made certain private entities that received and spend funds from governmental entities subject to a list of government regulations like the Open Meetings Act. An exception for water companies was granted, because the funds they receive are merely from legitimate governmental shareholders. But that exception is to be repealed in Rep. McKell Sen. Dayton Sen. Consent #13 This bill makes that exception permanent.

14 HB381 S1 Agricultural Water Optimization This Bill creates the Agricultural Water Optimization Task Force, which has the following key duties: Identify critical issues facing the State's long-term water supply, particularly in regard to how the State should optimize agricultural water supply and use in light of future population growth, and the future water needs of Utah agriculture Identify current obstacles to, and constraints upon, quantification of agricultural water use, and recommend means, methods, technologies, or other opportunities to improve the quantification of agricultural water use on a basin level Identify means, methods, systems, or technologies with the potential to maintain or increase agricultural production while reducing the agriculture industry's water diversion and consumption The Task Force reports annually to the: Legislative Water Development Commission Natural Resources, Agriculture, and Environment Interim Committee Executive Water Task Force Rep. Hawkes Sen. Dayton House 3 rd #33

15 HB450 Wastewater Reuse Amendments This Bill neuters the Utah Wastewater Reuse Act by: Reducing the priority of the reuse water to the date of the reuse application Allowing only the owner or operator of a POTW (publicly owned treatment plant / sewage treatment plant) that also collects and transports the sewage to the POTW to do reuse projects Using their own water rights; or Using the water rights of others pursuant to a contract with the owner(s) of the water right(s) Rep. Froerer Sen. In House Committee

16 HJR15 Proposed Municipal Water Constitutional Amendment This Resolution propose a 2018 ballot question to amend the Utah Constitution as follows: Article XI, Section 6. [Municipalities forbidden to sell waterworks or rights.] No municipal corporation, shall directly or indirectly, lease, sell, alien, or dispose of any waterworks, water rights, or sources of water supply now, or hereafter to be owned or controlled by it; but all such waterworks, water rights and sources of water supply now owned or hereafter to be acquired by any municipal corporation, shall be preserved, maintained and operated by it for supplying its inhabitants with water at reasonable charges: Provided, that thing herein contained shall be construed to prevent any such municipal corporation from exchanging water-rights, or sources of water supply, for other water-rights or sources of water supply of equal value, and to be devoted in like manner to the public supply of its inhabitants. Rep. Stratton Sen. Held in House Committee

17 SB34 Legislative Water Development Commission Amendments This Bill makes the Legislative Water Development Commission a permanent Commission by deleting its expiration date It also authorizes the Commission to meet up to six times annually without approval of the Legislative Management Committee (any additional meetings will require approval of the Legislative Management Committee) Sen. Dayton Rep. Grover Enrolled

18 SB35 Water Right for Trout Habitat Repeal Date Extension Utah water law currently allows 3 entities to hold instream flow rights: Utah Division of Wildlife Resources Utah Division of Parks & Recreation, and A qualified Fishing Group that promotes fishing opportunities The Fishing Groups were added on a temporary 10-year test basis The 10-year test period expires on December 31, 2018 This bill pushes the expiration date back one year to December 31, 2019 HB73 is a similar bill, but it proposed deleting the expiration date entirely Sen. Christensen Rep. Sandall Enrolled

19 SB45 Water Law Amendments Diligence Claims This Bill requires the State Engineer to evaluate the beneficial use asserted in a Diligence Claim and to include the results of that evaluation in the Field Investigation Report on the Diligence Claim Sen. Dayton Rep. Noel Enrolled

20 SB61 S1 Water Rights Adjudication Amendments This Bill clarifies the General Adjudication process by: Simplifying the wording in the summons served on the public to initiate the General Adjudication in a drainage basin or sub-basin Specifying how the State Engineer should respond when an untimely Statement of Claim is received Specifically authorizing the State Engineer to prepare and file an Addendum which amends a previously filed Proposed Determination Sen. Dayton Rep. Sandall Enrolled

21 SB96 S2 Canal Amendments This Bill establishes a statutory procedure for property owners that have a canal or other water conveyance facility located on their property to seek permission to relocate that facility, including the following key provisions: Unless prohibited by the terms of an easement or other written agreement, the property owner may relocate the facility after submitting a professionally prepared redesign of the facility to the facility owner that meets a list of statutory requirements and after receiving the facility owner s timely approval The facility owner may changes in the redesign plans directly related to a reasonably anticipated negative impact and shall approve the redesign if the anticipated negative impacts are reasonably addressed As property owner may not relocate the facility if the proposal: Significantly decreases the utility of the facility for its current use Increases the burden on the facility owner in a manner not compensated for by the property owner, or Frustrates the purpose of the facility Sen. Hinkins Rep. McKell In House Rules due to Fiscal Impact

22 SB96 S2 Canal Amendments (cont d.) Either party may involve the Office of the Property Rights Ombudsman to facilitate resolution of any disputes in this process Unresolved disputes may be decided in the court system Sen. Hinkins Rep. McKell In House Rules due to Fiscal Impact The property owner is responsible for the: All costs of relocating the facility All engineering and inspection costs Costs incurred by the facility owner related to the modification of the facility Legal costs of the facility owner in reviewing and approving the plans, up to $5,000

23 SB98 Ratification of Ute Indian Water Compact This Bill recites the terms of the Ute Indian Water Compact between the Ute Indian Tribe of the Uintah and Ouray Reservations, the State of Utah, and the United States of America Sen. Van Tassell Rep. In House Rules for assignment It then officially ratifies this Compact on behalf of the State of Utah This Compact identifies and quantifies the water rights allocated to seven different groups of land associated with the Ute Indian Tribe, plus 10,000 acre-feet of municipal and industrial water

24 SB170 Conservation District Amendments This Bill brings Conservation Districts into the fold with other local governmental entities, instead of treating them as creatures of federal law, for purpose of compliance with the financial transparency requirements contained in Part 4 of Chapter 3 of Title 63A, the Utah Administrative Services Code Sen. Henderson Rep. Eliason House Consent #9 Financial information and records of Conservation District will need to be posted on the Utah Public Finance Website by July 1, 2019

25 SB204 Secondary Water Metering Requirements This recently released Bill establishes a schedule for secondary water suppliers to meter secondary water connections, as follows: All new secondary connections - Upon installation (There is concern that the current wording would also trigger the metering of all existing connections if a new connection is added.) Commercial industrial and institutional connections by 7/1/2023 Residential connections by 7/1/2026 Agricultural connections by 7/1/2028 Secondary water is defined as all water that is not culinary water Secondary water supplier is defined as an entity that supplies pressurized secondary water to at least 500 connections The data collected from these meters is to be provided to the State Engineer and the Utah Division of Water Resources Sen. Anderegg Rep. Not Heard In Senate Committee

26 Interim Topics from 2017 Session Allow the use of Deed Riders for Assignments Amend Application Approval Criteria in Canal Modifications (2017 SB271) Clarify the General Adjudication Statutes Clarify how Appurtenancy works with Change Applications Clarify Stock Water Rights on Public Lands Implement a Water Banking System Implement Regional Watershed Councils Ratify the Ute Indian Compact Technical Changes/Clarifications to the Water Code Update Dam Safety Fees Water Commissioner Amendments (2017 HB225) Water Conservation Amendments (2017 HB304) SB96 SB61 HB73 SB98 SB45 HB60 HB103 Basis for seven of the 2018 bills

27 2018 Interim Topics to be Discussed Likely candidates include: Bills that do not pass in this session Water Banking Instream Flow Amendments Water Conservation Water Reuse Water Project Financing Regional Watershed Councils More Water Code clarifications and technical changes Discussion pending

28 QUESTIONS? Contact Info: David B. Hartvigsen SMITH HARTVIGSEN PLLC 257 East 200 South, Suite 500 Salt Lake City, Utah office cell Session Over!