STATE OF OKLAHOMA

2nd Session of the 53rd Legislature (2012)

HOUSE BILL 2208	By:	DeWitt

AS INTRODUCED

An Act relating to waters and water rights; amending 82 O.S. 2011, Section 277.6, which relates to the board of directors of irrigation districts; modifying requirement for development of a comprehensive plan; amending 82 O.S. 2011, Section 565, which relates to plans of improvement prepared by master conservancy districts; updating statutory language; requiring plans to be submitted to the Oklahoma Water Resources Board for certain purposes; amending 82 O.S. 2011, Section 1085.3, which relates to dividing the state into water districts; prohibiting the creation of new water districts under certain circumstances; amending 82 O.S. 2011, Section 1086.1, which relates to the policy of the state as to use of surplus and excess water; updating and deleting obsolete statutory language; requiring the development of a comprehensive state water plan to focus on certain local and regional planning; listing certain entities; amending 82 O.S. 2011, Section 1086.2, which relates to certain powers of the Oklahoma Water Resources Board; updating statutory outline; requiring Board to focus on certain local and regional planning in developing a comprehensive state water plan; amending 82 O.S. 2011, Section 1277, which relates to annual written reports by regional water districts; amending 82 O.S. 2011, Section 1324.10, which relates to powers of rural water, sewer, gas and solid waste management districts; directing each district to develop a comprehensive plan; requiring plan to be filed with the Oklahoma Water Resources Board and utilized for certain purposes; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     AMENDATORY     82 O.S. 2011, Section 277.6, is amended to read as follows:
Section 277.6  A.  Each director of the board shall take and subscribe to the official oath of office and execute a surety bond to the district conditioned upon the faithful discharge of his duties.
B.  The board shall:
1.  Elect a president or chairman and vice-president or vice-chairman from its members and elect or appoint a secretary-treasurer.  The secretary-treasurer of the board shall be bonded;
2.  Conduct its business in open meeting, pursuant to the Oklahoma Open Meeting Act;
3.  Maintain its records pursuant to the Oklahoma Open Records Act, except those records which are considered private or confidential under applicable laws of the United States;
4.  Have standing to appear before any court of this state.  Such standing shall extend to all matters germane to the powers and duties of the district including but not limited to questions of the validity of the establishment and operation of the district, contracts and collection of delinquent assessments;
5.  On a date specified by the board, each year, prepare a budget, estimating the amount of money required for the ensuing year to meet all obligations of the district and determine the assessments necessary to pay those obligations.  Assessments may be modified or adopted by the Board board when determined necessary;
6.  Determine collection procedures for all assessments imposed by the district.  Assessments may be set by the board for all expenses of the district including the establishment and maintenance of a reserve fund, provided, however, that any assessments for construction or improvements and the principal indebtedness and interest which may be incurred relating thereto shall be approved by vote of the electors.  The amount approved by the electors for construction or improvements may include additional amounts necessary for the establishment of a reasonable reserve and the payment of costs of issuance and underwriters' discount.  The maximum amount of principal indebtedness and interest shall not be less than one hundred ten percent (110%) of the estimated cost of such construction or improvement, in order to provide for contingencies.  All plans of construction and improvements shall be submitted to the Oklahoma Water Resources Board;
7.  Let contracts for public improvements or public construction projects of the district.  Such improvements or construction projects shall be on sealed bids to the lowest and best responsible bidder and shall be conditioned upon the filing of a performance bond equal to one hundred percent (100%) of the contract price for the faithful performance of the contract except as otherwise provided by the Public Competitive Bidding Act of 1974;
8.  Cause an independent auditor to prepare and furnish an annual certified audit of the financial condition of the district for the preceding year to the board.  A copy of such audit shall be submitted to the Oklahoma Water Resources Board, and made available to the electors and creditors of the district; and
9.  In the best interests of the entire district, establish a written comprehensive and reasonable plan of operation for the release, distribution, and use of water among the owners of lands within the district.  Prior to the adoption of any final plan of operation or amendments thereto, the board shall provide for a meeting on the proposed or modified plan of operation.  Notice of the intended action shall be mailed to the electors.  Copies of the plan or amendments thereto shall be made available, at no charge, to the electors.  The board shall fully consider all written and oral submissions respecting the plan or amendments thereto.  A final plan of operation or amendments thereto shall be submitted to the electors for approval at the annual meeting or at a special meeting of the electors called for such approval.  Upon approval of such plan or amendments thereto, the plan or plan as amended shall constitute the official plan of operation for the district.  Copies of the official plan of operation for the district shall be made available to the public.
C.  The board shall have the power and authority to:
1.  Manage and conduct the business affairs of the district;
2.  Make and execute all necessary contracts;
3.  Organize as a municipal corporation;
4.  Employ such agents, officers and employees, including but not limited to a manager, as may be required and prescribe their duties and compensation;
5.  Institute, maintain and defend any and all actions, suits and proceedings, in person or by counsel, in the name of the district;
6.  Appear before the Oklahoma Water Resources Board to protest any application not in conformity with the district's plan of operation or not in the best interests of the district;
7.  Perform any lawful act necessary to provide sufficient water to each elector in the district;
8.  Provide for the proper drainage of all lands affected by the operations of the district;
9.  Procure water either inside or outside of this state;
10.  Develop comprehensive plans for efficient use of streams and groundwater and the control and prevention of waste.  Such Beginning in 2015 and every five (5) years thereafter, the plans shall be filed with the Oklahoma Water Resources Board and shall be utilized by the Board for informational purposes only in developing the comprehensive state water plan;
11.  Reclassify or authorize transfer of existing lands of the district as provided in the Oklahoma Irrigation District Act;
12.  For the purposes of the district:
a.	acquire by purchase, lease or grant, rights-of-way and improvement locations, and release such acquired interests, provided that the acquisition or release of the property or facilities of public service corporations shall be accomplished as provided for by Section 1722 of Title 69 of the Oklahoma Statutes,
b.	enter upon lands for the making of surveys, provided consent for such entry is first obtained,
c.	condemn lands in accordance with the procedure provided for condemnation of land by railroad corporations.  The power of eminent domain shall not be exercised to acquire water rights unless the land is acquired in fee.  Oil, gas and minerals shall not be subject to the power of eminent domain, except to the extent necessary to prevent activities adversely affecting the purposes of the district,
d.	purchase and acquire leases of water rights,
e.	make application for appropriations of water,
f.	construct, use, maintain, repair and improve canals, wells, reservoirs and water supply and distribution facilities and appurtenances of all kinds, and
g.	enter into contracts and obligations with this state and the United States under the provisions of the Federal Reclamation Act and all other state and federal acts for the acquisition of water supply and distribution facilities;
13.  Accept the appointment of the district as fiscal agent of the United States or this state, or accept authorization of the district by the United States or this state to make collection of money for and on behalf of the United States or this state in connection with any federal or state project, and assume the duties and liabilities incident to such action, and do any and all things required by rules and regulations now or hereafter established by any agency or department of the federal or state government in regard thereto;
14.  Accept gifts of money, property and services;
15.  Sell and dispose of the property of the district if provision is made for the payment of indebtedness thereon and consent is obtained from all lienholders:
a.	all property except easements shall be sold by sealed bid to the highest bidder but the board has the right to reject all such bids,
b.	if real property has been acquired by the district through the exercise of the power of eminent domain or the imminent threat thereof and the district has determined that such property shall be sold, the immediate former owner, or his heirs at law or devisees, as the case may be, shall have the first option to repurchase the property at the price at which the property was purchased from the owner,
c.	if any property acquired by the district through the exercise of the power of eminent domain or the imminent threat thereof is not needed for immediate use, the former owner, or his heirs at law or devisees, as the case may be, shall have first option to lease the property until such time as the property is actually needed for district purposes;
16.  Make surveys;
17.  Carry out research projects;
18.  Construct dams and drainage systems;
19.  Install pumps and equipment to recharge underground basins and subbasins;
20.  Purchase real property;
21.  Upon vote of the electors, borrow money and issue special assessment bonds or notes, in such principal amounts as do not exceed the maximum amount voted by the electors.  All such bonds or notes may bear interest at such fixed or variable rate or rates, in any combination, as may be determined by the directors of the district.  Provided, the average coupon rate thereon shall in no event exceed fourteen percent (14%) per annum;
22.  Appoint committees of electors to undertake studies and report to the board upon any issue germane to the operations and management of the district; and
23.  Generally perform all such acts as shall be necessary to conduct the affairs of the district.
D.  The provisions of this section shall not be construed to affect or supercede any laws of this state relating to the authority or the jurisdiction of any agency of this state or political subdivision of this state to implement their respective duties pursuant to law, but shall be held and construed as auxiliary and supplementary thereto.
SECTION 2.     AMENDATORY     82 O.S. 2011, Section 565, is amended to read as follows:
Section 565.  A.  Upon their qualification, the board shall prepare or cause to be prepared a plan for the improvements for which the district was created.  Such The plans shall include such maps, profiles, plans and other data and descriptions as may be necessary to set forth properly the location and character of the work, and of the property benefited or taken or damaged, with estimates of cost and specifications for doing the work.
B.  In case the board of directors finds that any former survey made by any other district or in any other manner is useful for the purposes of the district, the board of directors may take over the data secured by such the survey, or such other proceedings as may be useful to it, and may pay therefor an amount equal to the value of such the data of such district. No construction shall be made under the authority of this act which will cause the flooding of any land, village or city or which will cause the water to back up into or on any land, village or city, unless the board of directors shall have acquired and paid for the right to use the land affected for such overflow purpose and shall have paid all damages incident thereto. No railroad shall be required to be constructed with a grade in excess of the ruling grade then existing upon that division of said the railroad whereon said on which the change is required, without just compensation.  Upon the completion of such the plan, the board shall file a copy of the plan with the court clerk of the court having jurisdiction of such district and cause the court clerk to give notice by publication as provided herein in this section in each county of said the district, of the completion of said plan, and shall permit the inspection thereof of the plan at his the office of the district, by all persons interested.  Said The notice shall fix the time and place for the hearing by the court of all objections to said the plan, not less than ten (10) days nor more than thirty (30) days after the last publication of said the notice.  Any owner of land which will be benefited or directly affected by the construction, operation and maintenance of works proposed in said the plan, whether inside or outside of said the district, may object to the approval of said the plan.  All objections to said the plan shall be in writing and be filed with the said court clerk at least five (5) days before the date of hearing fixed in said the notice, provided, however, that the.  The court, for good cause shown, shall have authority to extend the time for filing said the objections in its discretion.  If at said the date the owners of a majority of the area of land in the said district shall file a protest and objection to the plan as a whole, then the court shall order an assessment of the properties in said the district sufficient to pay the cost of the proceedings up to said the time, said the costs to be fixed by the court, and to be prorated equally upon the property included in said the district, provided, however, that no.  No assessment for said purpose shall be more than twenty cents ($0.20) per acre on agricultural lands.  Upon the collection of said the assessments the court shall order said the district dissolved.  If said the district be is not dissolved by the court, the court shall hear said objections and adopt, reject or refer back said the plan to said the board of directors.  If said the court shall reject said the plan, then said the board shall proceed as in the first instance under this section to prepare another plan.
If the court should refer back said the plan to said the board for amendment, then the court shall continue the hearing to a day certain without publication of notice.
If the court refers back said the plan to said the board, then a certified copy of said the journal entry of said the court shall be filed with the secretary of the board of directors, and by him be incorporated the secretary shall incorporate it into the records of the district.  The official plan may be altered in detail from time to time until the assessment roll is filed, and of all such alterations the appraisers shall take notice.  But after the assessment roll has been filed in court, no alterations of the official plan shall be made except as provided herein in this section.
C.  Any plan shall be submitted to the Oklahoma Water Resources Board to be utilized by the Board for informational purposes in completing the comprehensive state water plan.
SECTION 3.     AMENDATORY     82 O.S. 2011, Section 1085.3, is amended to read as follows:
Section 1085.3  The A.  Except as otherwise provided for in subsection B of this section, the Oklahoma Water Resources Board shall, from time to time as may be necessary for the economical and satisfactory apportionment of the water, divide the state in conformity with the drainage areas, into water districts to be designated by name and to comprise, as far as possible, one or more distinct stream systems in each district.  The districts may be changed from time to time as may in its the opinion of the Board be necessary for the economical and satisfactory apportionment of the water.  
B.  No new water districts shall be created where existing water planning and implementation districts are in existence, including but not limited to:
1.  Irrigation districts; 
2.  Master conservancy districts;
3.  Regional water districts; and 
4.  Rural water districts.
SECTION 4.     AMENDATORY     82 O.S. 2011, Section 1086.1, is amended to read as follows:
Section 1086.1  A.  All of the people have a primary interest in the orderly and coordinated control, protection, management, conservation, development and utilization of the water resources of the state.  The people residing within areas where waters originate benefit from the optimum development and utilization of water within the area of origin.  The people in water deficient areas benefit by being able to use excess and surplus waters.  The policy of the State of Oklahoma is to encourage the use of surplus and excess water to the extent that the use thereof of the water is not required by people residing within the area where such the water originates.  In order to maximize the alternatives available for the use and benefit of the public and water‑user entities and for the use and benefit of the public and for the general welfare and future economic growth of the state, it is therefore the purpose of this act to provide means for the expeditious and coordinated preparation of a comprehensive state water plan and decennial updates thereof for submission to the Legislature providing for the management, protection, conservation, structural and nonstructural development and utilization of water resources of this state, in accordance with the following principles:
1.  Multiple-purpose dams and reservoir sites, both existing and planned or under construction as of the effective date of this act or amendment thereof, within the area where excess or surplus water originates and elsewhere, should be utilized to the maximum;
2.  Water should be stored during periods of surplus supply for use during periods of short supply; such and the storage should be in the area of usage.  In such cases where storage in the area of origin may be permitted, the purchasing entities shall pay to the county of origin, in lieu of ad valorem taxes and as part of the total cost of the purchase of the water, an amount computed by averaging the tax on land similar to the land taken off the tax rolls as a result of the construction of such the storage facilities within the county of origin;
3.  Water use within Oklahoma should be developed to the maximum extent feasible for the benefit of Oklahoma so that out‑of‑state downstream users will not acquire vested rights therein to the detriment of the citizens of this state;
4.  Only excess or surplus water should be utilized outside of the areas of origin and citizens within the areas of origin have a prior right to water originating therein to the extent that it may be required for beneficial use therein;
5.  All citizens, municipalities and other water‑user entities in need of water for beneficial use shall be entitled to appropriate water and vest rights therein in accordance with priorities as provided by law, and shall be entitled to cause same to be made available to the water user in the most practicable and feasible manner; and
6.  Statutory power of the Oklahoma Water Resources Board in the granting of water rights to those citizens, municipalities and other water‑user entities who utilize such the water for beneficial use shall be preserved; and 
7.  The development and conservation planning done by the following and other local and regional entities shall be focused on first and be the basis for statewide planning:
a.	irrigation districts,
b.	master conservancy districts,
c.	regional water districts, and 
d.	rural water districts.
B.  The exercise of the powers granted by this act are in all respects for the benefit of the people of the state, for the increase of their commerce and prosperity and for the improvement of their health and living conditions.  The primary purpose governing all exercise of powers hereunder shall be to maximize and not to minimize the alternatives available to all citizens, municipalities and other water‑user entities in acquiring water for beneficial use.
SECTION 5.     AMENDATORY     82 O.S. 2011, Section 1086.2, is amended to read as follows:
Section 1086.2  For the purpose of effectuating the provisions of this act and the policy established in Section 1086.1 of this title, the Oklahoma Water Resources Board is hereby authorized, empowered and directed to prepare a comprehensive state water plan and decennial updates of the plan for submission to the Legislature.  In connection with the plan, the Board shall:
1.  To prepare a comprehensive state water plan and decennial updates thereof for submission to the Legislature and, in connection therewith, to conduct Conduct surveys and cooperate with other state and federal agencies.  Such The comprehensive state water plan and the parts and portions thereof of the plan shall be submitted in final and completed form not later than September 1, 1975, and, in addition to the foregoing requirements, shall include a definition of "excess and surplus water of this state" and a recommended procedure for determining "excess and surplus water of this state," which definition and procedure are to be developed to insure ensure that the area of origin will never be made water deficient.;
The Water Resources Board shall permit
2.  First focus on development and conservation planning done by local and regional entities, including but not limited to the following entities:
a.	irrigation districts, 
b.	master conservancy districts,
c.	regional water districts, and
d.	rural water districts;
3.  Permit representatives of the United States Army Corps of Engineers, the Bureau of Reclamation, the Soil Conservation Service and other appropriate federal agencies, as well as representatives of state agencies involved in tourism, parks, fish and wildlife, recreation, soil conservation, public health, agriculture, public utilities and industrial development to participate to the extent of their authority and capacity in the development of the comprehensive state water plan.  The Water Resources Board shall prepare such;
4.  Prepare the plan and updates in printed form.  Upon completion thereof, the plan shall be submitted to the Oklahoma Legislature not later than September 1, 1975.  The Board is not authorized to implement the plan or any part or update thereof except by express authorization and consent of the Legislature.  The first decennial update shall be prepared and submitted to the Legislature no later than September 1, 1995.  Thereafter, updates shall be prepared and likewise submitted no later than September 1 of the fifth year following the taking of the Federal Decennial Census.
Work on the first update shall begin with the passage and approval of this act.  After completion of the first update, work on subsequent updates shall remain continuous and ongoing throughout the ten-year periods between submission of the updates.;
2.  To adopt such 5.  Adopt rules and regulations as may be necessary to effectuate the purposes of this act.;
3.  To make 6.  Make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this act.;
4.  To receive 7.  Receive and accept from the State of Oklahoma or the United States of America or any agency or instrumentality thereof grants of funds and to receive and accept aid or contributions from any source of either money, property, labor or other things of value to be held, used and applied only for the purposes for which such the grants and contributions may be made.;
5.  To expend 8.  Expend income and funds of the Board in the exercise of any or all of the powers granted to the Board under the provisions of this act.; and
6.  To cooperate 9.  Cooperate with all state institutions, agencies, departments, boards and officers in all matters relating to its duties; and all.  All state institutions, agencies, departments, boards and officers are hereby authorized and directed to cooperate with the Board.
SECTION 6.     AMENDATORY     82 O.S. 2011, Section 1277, is amended to read as follows:
Section 1277.  A.  Within sixty (60) days after the close of each calendar year any water district organized and in operation under this act shall make a written report to the Oklahoma Water Resources Board at its office and shall include the following:
1.  The total volume of water contracted for from the reservoir or reservoirs located within the district.  Measurement may be made either in gallons or acre‑feet, whichever is most convenient to the district.;
2.  A complete report of the finances, assets and liabilities of the district.; and
3.  Any other information that the Board may require from time to time which will be helpful to it in assisting said district in the development of industry to utilize the water available for beneficial use.  
B.  In addition to the written report required in subsection A of this section, each water district shall develop a comprehensive plan for efficient use of streams and groundwater and the control and prevention of waste.  Beginning in 2015 and every five (5) years thereafter, the plan shall be filed with the Oklahoma Water Resources Board and shall be utilized by the Board in developing the comprehensive state water plan.
SECTION 7.     AMENDATORY     82 O.S. 2011, Section 1324.10, is amended to read as follows:
Section 1324.10  A.  Every district incorporated hereunder shall have perpetual existence, subject to dissolution as provided by the Rural Water, Sewer, Gas and Solid Waste Management Districts Act, and 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.  Acquire by purchase, lease, gift, or in any other manner, and to maintain, use, and operate any and all property of any kind, real, personal, or mixed, or any interest therein; and to acquire and own water rights or rights to natural gas under the laws of this state, and to construct, erect, purchase, lease as lessee and in any manner acquire, own, hold, maintain, operate, sell, dispose of, lease as lessor, exchange and mortgage plants, buildings, works, machinery, supplies, equipment, apparatus, facilities, property rights and transportation and distribution lines, facilities, equipment or systems necessary to transport, distribute, sell, furnish and dispose of water or gas, and either subsequent to, or in connection with, the installation of water distribution, sewage facilities, gas distribution facilities or solid waste management system, to construct, operate and maintain sewage disposal facilities or solid waste management system to serve the users of the district.  Provided, all projects of the district shall be self‑liquidating, and the costs of construction shall be payable solely from the income, revenues, and properties of the district, and all property, assets and revenues of the district shall constitute a special fund for the accomplishment of the purposes and objectives of the Rural Water, Sewer, Gas and Solid Waste Management Districts Act;
4.  Borrow money and otherwise contract indebtedness for the purposes set forth in this act, and, without limitation of the generality of the foregoing, to borrow money and accept grants from the United States of America, or from any corporation or agency created or designated by the United States of America, and, in connection with such loan or grant, to enter into such agreements as the United States of America or such corporation or agency may require; and to issue its notes or obligations therefor, and to secure the payment thereof by mortgage, pledge or deed of trust on all or any property, assets, franchises, rights, privileges, licenses, rights‑of‑way, easements, revenues, or income of the said district;
5.  Make bylaws for the management and regulation of its affairs;
6.  Appoint officers, agents and employees, to prescribe their duties and to fix their compensation; and to employ such common and skilled labor and professional and other services as may be necessary to the proper performance of such work or improvement as is proposed to be done within any such district, and the maintenance thereof;
7.  Sell or otherwise dispose of any property of any kind, real, personal, or mixed, or any interest therein, which shall not be necessary to the carrying on of the business of the district;
8.  In connection with the acquisition, construction, improvement, operation or maintenance of its transportation, and distribution lines, system, equipment, facilities or apparatus, use any street, road, alley or highway which is owned or held by the state, or any political subdivision.  The location of sewer, gas or water lines or other facilities connected with the water, sewer, gas or solid waste management district in such streets, roads, alleys or highways, must be concurred in by the governing or appropriate bodies of the cities, counties or state, which have jurisdiction over said property.  The district plans for locating lines shall comply with the written specifications for location of lines and facilities as set forth by the governing body of the county for property within their jurisdiction.  If the governing body of the county does not have written specifications for location of lines and facilities for property within their jurisdiction, they shall concur with the district plans or provide the district with an alternative plan.  The governing body of any such city, county or state agency may require that if a district attaches a gas line to any bridge, underpass or overpass, that such district furnish liability insurance in an amount to be determined by the governing body, covering damage which may be occasioned to such bridge, underpass or overpass, as a result of fire or explosion originating from said gas line.  Provided that the relocation or rearrangement of any public utility's or common carrier's facilities of service required to be made to permit or accommodate installation or maintenance of a district's facilities on, across or under any such publicly owned or held real property or interest therein shall be performed at the sole cost of the district;
9.  Make any and all contracts necessary or convenient for the exercise of the powers of the district;
10.  Fix, regulate and collect rates, fees, rents or other charges for water, gas and any other facilities, supplies, equipment or services furnished by the district.  Said rates shall be just, reasonable and nondiscriminatory;
11.  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 purposes for which the district is created;
12.  Buy from or sell water or gas to any municipality, or to another district created under this act, or to any other legal entity engaged in the distribution and storage of water or gas, provided quantities of water sold do not exceed any vested right of appropriation granted by the Oklahoma Water Resources Board;
13.  Enter into contracts with the United States of America, or any agency thereof, or the state, or any political subdivision or agency thereof, for the construction, operation and maintenance of structures needed to provide water storage to meet present and future anticipated needs and demands of the district;
14.  Enter into contracts jointly with any other district, municipality, city or town, the state, the United States of America, or any governmental agency, for the purpose of purchasing water, constructing, acquiring, operating water facilities or purchasing or leasing reservoir space;
15.  Enter into contracts for fire protection and to construct, enlarge, extend or otherwise improve community facilities providing essential services to rural residents, including, but not limited to, fire protection, ambulance service, community centers and outdoor recreational facilities; and
16.  Have and exercise the right of eminent domain in the same manner and according to the procedures provided for in Sections 51 through 65 of Title 66 of the Oklahoma Statutes, provided, that the.  The use of said the eminent domain provisions, shall be restricted to the purpose of developing and providing rural gas distribution, water works and sewage disposal facilities.  Provided, however, no personal or real property, easement or right‑of‑way of any utility may be acquired by eminent domain.
B.  No district organized hereunder shall sell or export water or gas pursuant to the Rural Water, Sewer, Gas and Solid Waste Management Districts Act outside of the state without consent of the Legislature.
C.  Appropriative rights to water held by the district shall not be alienated or encumbered apart from the alienation or encumbrance of the facilities of the district.
D.  The board of directors shall, on or before July 1 of each year, file with the county clerk of each county in which any part of said the district is located, an annual report for the preceding calendar year.  Such The report shall list all monies collected and all monies disbursed during said the calendar year.  Said The report shall also specify any and all indebtedness outstanding at the end of the calendar year.
E.  Each district shall develop a comprehensive plan for efficient use of streams and groundwater and the control and prevention of waste.  Beginning in 2015 and every five (5) years thereafter, the plan shall be filed with the Oklahoma Water Resources Board and shall be utilized by the Board in developing the comprehensive state water plan.
SECTION 8.  This act shall become effective November 1, 2012.

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