STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

HOUSE BILL 1337	By:	Renegar

AS INTRODUCED

An Act relating to waters and water rights; creating the Oklahoma Water Basin Protection Act; defining terms; stating purpose of water basin districts; providing for the creation of water basin districts; naming certain water drainage basins; providing for the creation of water basin districts by interlocal agreement; requiring the establishment of a board of directors; providing for membership and terms of office of the board of directors; specifying certain requirements for an interlocal agreement creating a water basin district; requiring submission of an interlocal agreement to the Attorney General; establishing the powers of a water basin district; providing for the duties of the board of directors of a water basin district; establishing a severance fee on the use of stream water which is transferred outside the water drainage basin by a certain distance; directing the Oklahoma Water Resources Board to require certain metering and reporting; exempting the use of stream water under certain permits from the severance fee; requiring the deposit of certain monies in the Oklahoma Water Basin Revolving Fund; directing the State Board to distribute all severance fees in certain manner; specifying certain uses of the severance fee funds by a board of directors of a water basin district; requiring a board of directors to develop and adopt a water basin improvement plan; requiring approval of projects by a majority of the board of directors; making each water basin district subject to certain laws; requiring certain water basin districts to make a written report; creating the Oklahoma Water Basin Revolving Fund; making the fund continuing; providing for source of funding; providing for distribution of funds; requiring expenditures to be made upon warrants; providing for codification; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.1 of Title 82, unless there is created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the “Oklahoma Water Basin Protection Act”.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.2 of Title 82, unless there is created a duplication in numbering, reads as follows:
As used in the Oklahoma Water Basin Protection Act:
1.  “Board of directors” means a board of directors of a water basin district organized under this act; 
2.  “District” means a water basin district organized pursuant to the provisions of this act.  A district is a body corporate and an instrumentality of each public agency which establishes it by interlocal agreement;
3.  “Public agency” shall be defined in the Interlocal Cooperation Act, except public agencies of other states shall not be entitled to membership in the district; 
4.  “State Board” means the Oklahoma Water Resources Board; 
5.  "Sewage" means the water‑carried wastes created in and carried or to be carried away from residences, residential establishments, industrial or commercial establishments or any other private or public building or institution together with such surface or groundwater or household and industrial wastes as may be present.  Sewage does not include hazardous waste; 
6.  "Sewage facilities" means and includes any plants, systems, facilities or properties used or useful or having the present capacity for future use in connection with the collection, transportation, treatment, purification, storage, processing, release, or disposal of sewage, including wastes resulting from any processes of industry, manufacture, trade or business or from the development of any natural resources, or any integral part thereof, including but not limited to treatment plants, pumping stations, intercepting sewers, trunk sewers, pressure lines, mains and all necessary appurtenances and equipment, and all property, rights, easements and franchises relating thereto and deemed necessary or convenient by the board of directors of a water basin district for the operation thereof;
7.  “Water basin” means one of the nineteen water drainage basins located in the state, as listed in Section 3 of this act; and
8.  "Water facilities" means and includes all facilities from the initial source to the place for utilization of water by a public agency or person as provided in this act, including but not limited to all plants, systems, facilities or properties used or useful or having the present capacity for future use in connection with the supply, treatment, distribution, transportation, or storage of water, and any integral part thereof, including but not limited to water supply systems, water distribution systems, sources of water supply including lakes, reservoirs and wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, filtration plants, purification plants, hydrants, meters, valves, and all necessary appurtenances and equipment and all properties, rights, easements and franchises relating thereto and deemed necessary or convenient by the board of directors of a water basin district for the operation thereof.
SECTION 3.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.3 of Title 82, unless there is created a duplication in numbering, reads as follows:
A.  Water basin districts may be organized under the Oklahoma Water Basin Protection Act for the purpose of:
1.  Advising the Oklahoma Water Resources Board on the approval of applications for the use of stream water to be transferred outside the boundaries of the water drainage basin from which it originates by more than twenty (20) miles outside the boundaries of the water basin; and
2.  Distributing funds collected by the State Board and transferred to the water basin district from the levy of a severance fee on stream water transferred out of the water basin made pursuant to Section 7 of this act for purposes and projects listed in Section 9 of this act.
B.  A water basin district may be created for each of the nineteen water drainage basins in the state.  The nineteen water drainage basins in the state as defined by the State Board are named as follows:
1.  Red River and tributaries; 
2.  North Fork of the Red River; 
3.  Cache Creek; 
4.  Beaver Creek; 
5.  Washita River; 
6.  Blue River; 
7.  Muddy Boggy Creek; 
8.  Kiamichi River; 
9.  Little River; 
10.  Mountain Fork River; 
11.  Arkansas River and tributaries; 
12.  Salt Fork of the Arkansas River; 
13.  Cimarron River; 
14.  Beaver/North Canadian River; 
15.  Canadian River; 
16.  Poteau River; 
17.  Deep Fork of the North Canadian River; 
18.  Grand/Neosho River; and
19.  Illinois River. 
SECTION 4.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.4 of Title 82, unless there is created a duplication in numbering, reads as follows:
A.  Two or more public agencies, by interlocal agreement made pursuant to the provisions of the Interlocal Cooperation Act and in accordance with the provisions of the Oklahoma Water Basin Protection Act, may establish a water basin district to carry out activities and projects authorized by this act.  The agreement under which the district is formed shall provide for the establishment of a board of directors to govern the affairs of the district.  Each public agency which is a member of the district shall have one member on the board appointed by the board of county commissioners of the county where the public agency has its principal office.  Each member appointed shall be a member of the governing body of the participating public agency.  The agreement shall further provide for staggered terms for board members not to exceed three (3) years.
B.  In addition to the requirements of subsection C of Section 1004 of Title 74 of the Oklahoma Statutes, an interlocal agreement establishing a water basin district shall also contain the following:
1.  An accurate description of the water drainage basin which it is proposed shall be embraced within the district, and a map of the water drainage basin shall be attached to the agreement as an exhibit thereto;
2.  A brief and concise statement describing the purpose of the district and its proposed activities or projects, in general terms;
3.  A brief and concise statement showing the necessity for forming and operating the proposed district, describing the benefits to be received therefrom by the persons and public agencies in the territory proposed to be embraced in the district;
4.  The proposed name for the district;
5.  The proposed location of the principal office of the district;
6.  Any other and additional information as may be appropriate and useful in the agreement;
7.  The terms and conditions of eligibility for initial membership in the district, for new members seeking to join the district, and for withdrawal by a signatory public agency from the district; and
8.  A statement providing that water rights cannot be acquired by eminent domain.
C.  The interlocal agreement, after being executed by appropriate resolution of the governing bodies of the member public agencies, and the materials required by subsection B of this section shall be submitted to the Attorney General as required by the Interlocal Cooperation Act.  Approval of the agreement shall also constitute certification by the State of Oklahoma of the district as a water basin district.
SECTION 5.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.5 of Title 82, unless there is created a duplication in numbering, reads as follows:
Each water basin district organized pursuant to the Oklahoma Water Basin Protection Act shall have power to:
1.  Sue and be sued, complain and defend, in its corporate name; 
2.  Adopt a seal which may be altered at pleasure, and to use it, or a facsimile thereof, as required by law; 
3.  Accept gifts, loans, or grants of money, services, franchises, rights, privileges, licenses, rights‑of‑way, easements or other property, real or personal, or provisions for nonpayment as may be authorized or available to the district pursuant to federal, state or local regulations, or programs;
4.  Make any and all contracts necessary or convenient for the exercise of the powers of the district on such terms and for such period of time as its board of directors shall determine;
5.  Conduct its affairs within this state subject to the provisions of this act;
6.  Invest funds in the same manner as generally authorized for counties and municipalities and for the purpose of defraying interest expenses related to facility construction debt service;
7.  Individually or jointly with other persons or public agencies acquire, own, hire, use, operate, lease as lessor or lessee, and dispose of personal property and real property and any interest therein, including projects existing, proposed or under construction, and make improvements thereon;
8.  Adopt regulations as it deems necessary, not inconsistent with state law or the powers of any existing public agency to adopt or enforce regulations; and 
9.  Do and perform all acts and things, and to have and exercise any and all powers as may be necessary, convenient or appropriate to effectuate the purpose for which the district is organized, and exercise all other powers not inconsistent with the Articles of Association forming the district pursuant to the Interlocal Cooperation Act, the Constitution of the State of Oklahoma or the United States Constitution which may be reasonably necessary or appropriate or incidental to the exercise of any of the powers enumerated in this act.  The district may perform any act authorized by this act through, or by means of, its officers, agents or employees or by contract with any person.  
SECTION 6.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.6 of Title 82, unless there is created a duplication in numbering, reads as follows:
The board of directors of a water basin district organized pursuant to the Oklahoma Water Basin Protection Act shall have the following duties relating to the approval of permits for the transfer of water for use outside the water drainage basin:
1.  To review applications submitted to the Oklahoma Water Resources Board for transfer of stream water more than twenty (20) miles from the boundary of the water basin and to advise the State Board on the issuance of a regular, temporary, or provisional permit.  The board of directors may file a protest on an application if the board finds that the amount of water requested will interfere with the amount needed for use within the water drainage basin or that the proposed beneficial use will interfere with existing or proposed beneficial uses within the water drainage basin; 
2.  Coordinate the completion of an environmental impact statement for the transfer of stream water out of the water basin of origin which shall be required prior to issuance of a regular permit by the State Board; and
3.  Review and approve any works proposed by the applicant for the storage, diversion, or carriage of water to be transferred outside the boundaries of the water basin and shall monitor the completion of the works.  The board of directors shall not be responsible for any costs associated with the construction or maintenance of the proposed works.
SECTION 7.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.7 of Title 82, unless there is created a duplication in numbering, reads as follows:
A.  For new permits approved after the effective date of this act by the Oklahoma Water Resources Board for the use of stream water to be transferred outside the boundaries of the water drainage basin in which it originates by more than twenty (20) miles, there is hereby levied upon the use of the stream water a severance fee based on the acre-foot volume of water transferred.  The amount of severance fee shall be set by the State Board using a least-cost-alternative formula.  The State Board shall require permit holders to meter and report the volume of water used annually and to submit the severance fee by June 30 of each year.
B.  Any modification or renewal of a permit issued prior to the effective date of this act for the use of stream water which transfers the water outside the boundaries of the water drainage basin in which it originates by more than twenty (20) miles shall be exempt from the severance fee authorized pursuant to this section.
C.  All monies collected by the State Board from the stream water severance fee levied pursuant to this section shall be deposited in the Oklahoma Water Basin Revolving Fund created in Section 10 of this act.
SECTION 8.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.8 of Title 82, unless there is created a duplication in numbering, reads as follows:
The Oklahoma Water Resources Board shall distribute all severance fees from the transfer of stream water collected pursuant to Section 7 of this act and deposited in the Oklahoma Water Basin Revolving Fund as follows:
1.  To the board of directors of the water basin district from which the water originated; 
2.  To the tribal government of any federally recognized Indian tribe whose jurisdictional boundaries are within the boundaries of the water drainage basin.  The amount distributed to tribal governments shall be established through compact agreements negotiated and entered into by the Governor on behalf of the state as set forth in Section 1221 of Title 74 of the Oklahoma Statutes; and 
3.  To any board of directors of a water basin district in another area of the state which has made application to the State Board and has a demonstrated need for the development of water infrastructure or has a need for water based on an emergency as defined by the State Board. 
SECTION 9.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.9 of Title 82, unless there is created a duplication in numbering, reads as follows:
A.  All funds distributed by the Oklahoma Water Resources Board to a board of directors of a water basin district as provided for in Section 8 of this act shall be used by the board of directors for the following purposes:
1.  The development of water infrastructure facilities within the water drainage basin, including but not limited to water facilities and sewage facilities; 
2.  Economic development incentives for projects located within the water drainage basin; 
3.  Assistance for any project which is receiving an incentive payment pursuant to the Oklahoma Quality Jobs Program Act and which is located within the water drainage basin; 
4.  Tourism and recreation projects located within the water drainage basin; and 
5.  Any other public assistance project which will improve the quality of life of persons living within the water drainage basin.
B.  Each board of directors of a water basin district shall develop and adopt a water basin improvement plan which shall establish a priority for the implementation of projects using funds distributed to the water basin district pursuant to the Oklahoma Water Basin Protection Act.
C.  Any project using funds distributed to the water basin district pursuant to the Oklahoma Water Basin Protection Act shall be approved by a majority of the board of directors of the water basin district.
D.  Except for contracts for employment for the water basin district, members of the board of directors and employees of the water basin district shall not have a financial interest, directly or indirectly, in any project funded by the water basin district. 
E.  Each water basin district shall be subject to the Oklahoma Open Records Act and the Oklahoma Open Meeting Act.
F.  Each water basin district which receives funds as provided for in Section 8 of this act during the preceding fiscal year shall make a written report to the Oklahoma Water Resources Board outlining the expenditure of the funds and any other information the State Board may require. 
SECTION 10.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 1290.10 of Title 82, unless there is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund for the Oklahoma Water Resources Board to be designated the “Oklahoma Water Basin Revolving Fund”.  The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Oklahoma Water Resources Board from the stream water severance fee levied pursuant to Section 7 of this act.  All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and distributed by the Oklahoma Water Resources Board as provided for in Section 8 of this act.  Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of State Finance for approval and payment.
SECTION 11.  This act shall become effective July 1, 2011.
SECTION 12.  It being immediately necessary for the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect and be in full force from and after its passage and approval.

53-1-5684	KB	12/22/10