SB1355 - 492R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 45, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 45-117, to read:

START_STATUTE45-117. Water resources fund; purpose; exemption

A. The water resources fund is established to be maintained in perpetuity consisting of:

1. Monies deposited in the fund pursuant to sections 45-122, 45-124 and 45-125.

2. Monies appropriated by the legislature to the fund.

3. Gifts, grants and donations to the fund received from any public or private source.

4. Interest and other income received from investing monies in the fund.

B. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. Monies in the fund shall only be used by the department of water resources for the purposes of this title.

Sec. 2. Title 45, chapter 1, article 2, Arizona Revised Statutes, is amended by adding article 2, to read:

ARTICLE 2. WATER USE ASSESSMENTS

START_STATUTE45-121. Definitions

In this article, unless the context otherwise requires:

1. "Agricultural irrigated acreage" means land that is irrigated with any water during a year.

2. "Domestic purposes" means uses related to the supply, service and activities of households and private residences and includes the application of water to ten acres or less of land to produce plants or parts of plants for sale or human consumption, or for use as feed for livestock, range livestock or poultry, as defined in section 3-1201.

3. "Industrial water" means any water not delivered by a municipal water delivery system, not used to irrigate agricultural irrigated acreage, and not used for stock watering or domestic purposes.

4. "Irrigate" means to apply water to more than ten acres of land from a water distribution system common to the irrigated land to produce plants or parts of plants for sale or human consumption, or for use as feed for livestock, range livestock or poultry, as defined in section 3-1201.

5. "Municipal water delivery system" means an entity that distributes or sells potable water primarily through a pipeline delivery system that is owned by any of the following:

(a) A city or town incorporated or chartered under the constitution and laws of this state.

(b) A private entity that is regulated as a public service corporation by the Arizona corporation commission under a certificate of public convenience and necessity.

(d) An entity that is regulated as a water supply system by the department of environmental quality.

6. "Stock watering" means the watering of livestock, range livestock or poultry, as defined in section 3-1201. END_STATUTE

START_STATUTE45-122. Water use assessment on municipal water delivery systems; exemption

A. The director shall establish by rule a water use assessment to be paid by the owner or operator of a municipal water delivery system based on the number of gallons of water delivered to customers.

B. The department of revenue shall collect the water use assessment under this section.

C. The owner or operator of a municipal water delivery system shall pay the assessment to the department of revenue at the same time as paying the transaction privilege tax under section 42-5014. If the system for any reason does not pay the transaction privilege tax, the assessment imposed by this article is due and payable to the department of revenue, and is delinquent if not paid, as provided in section 42-5014, subsection A.

D. The department of revenue shall separately account for monies paid under this section and shall deposit, pursuant to sections 35-146 and 35-147, the assessments collected under this section in the water resources fund established by section 45-117.

E. Water delivered to a customer for resale is exempt from this section. END_STATUTE

START_STATUTE45-123. Administration of water use assessment; municipal water delivery systems

Unless the context otherwise requires, title 42, chapter 5, article 1 governs the administration, collection and enforcement of the water use assessment on municipal water delivery systems imposed by section 45-122, except that:

1. If a municipal water delivery system is subject to the transaction privilege tax under section 42-5014:

(a) A separate license and bond are not required for the assessment imposed by section 45-122, but the assessment due under section 45-122 shall be included, reported and paid with the transaction privilege tax, with a separate accounting for the assessment imposed by section 45-122.

(b) The assessment imposed by section 45-122 may be included without segregation in any notice and lien filed for unpaid transaction privilege taxes.

2. A separate bond is not required of employees of the department of revenue in administering this article. END_STATUTE

START_STATUTE45-124. Water use assessment on agricultural irrigated acreage; report; civil penalty

A. The director shall establish by rule a water use assessment to be paid by the owner or operator of agricultural irrigated acreage.

B. An owner or operator of agricultural irrigated acreage shall report to the director by March 31 of each year the number of acres irrigated during the previous calendar year and include payment of the assessment for the previous year with the report, except that the water use report for calendar year 2010 shall report the number of acres irrigated after the effective date of this section and include payment of the assessment for those acres.

C. Each report shall contain either a sworn statement or a certification, under penalty of perjury, that the information contained in the report is true and correct according to the best belief and knowledge of the person filing the report.

D. If a person who is required under this section to file a water use report for a calendar year fails to file a water use report for the calendar year in question on or before March 31 of the following year, the director may assess and collect a civil penalty of twenty-five dollars for each month or portion of a month that the water use report is delinquent. The total penalty assessed under this subsection shall not exceed one hundred fifty dollars. The director shall deposit, pursuant to sections 35-146 and 35-147, all civil penalties collected under this subsection in the state general fund.

E. The records and reports required to be kept and filed under this section shall be in such form as the director prescribes. The director shall prepare blank forms and make them available on the department's website. Failure to receive or obtain the forms does not relieve any person from keeping the required records or making any required report.

F. The director shall deposit, pursuant to sections 35-146 and 35-147, the assessments collected under this section in the water resources fund established by section 45-117. END_STATUTE

START_STATUTE45-125. Water use assessment on industrial uses; report; civil penalty

A. The director shall establish by rule a water use assessment to be paid by the owner or operator of more than ten acres of land where there is an industrial water use.

B. An owner or operator of more than ten acres of land where there is an industrial water use shall report to the department by March 31 of each year the gallons of industrial water withdrawn, diverted or received during the previous calendar year and include payment of the assessment for that water with the water use report, except that the water use report for calendar year 2010 shall report gallons of industrial water withdrawn, diverted or received after the effective date of this section and include payment of the assessment for that water.

C. Each water use report shall contain either a sworn statement or a certification, under penalty of perjury, that the information contained in the report is true and correct according to the best belief and knowledge of the person filing the report.

F. The director shall deposit, pursuant to sections 35-146 and 35-147, the assessments collected under this section in the water resources fund established by section 45-117. END_STATUTE

START_STATUTE45-126. Violation; effects on applications by person in violation

The department shall not process an application or issue a permit or license for a person determined by the department to be in violation of this article. END_STATUTE

START_STATUTE45-127. Violation; civil penalties

A. A person who is determined to have failed or refused to pay an assessment made under this article or to be in violation of any rule adopted pursuant to this article shall pay a civil penalty in an amount not exceeding one thousand dollars per day of violation.

B. An action to recover an assessment or civil penalties under this article shall be brought in superior court.

C. In determining the amount of the civil penalty, the court shall consider whether the violation was knowing or wilful, the past conduct of the defendant, whether the defendant should have been on notice of the violation and any other relevant information.

D. All civil penalties collected pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the state general fund. END_STATUTE

Sec. 3. Section 45-1212.01, Arizona Revised Statutes, is amended to read:

START_STATUTE45-1212.01. Dam repair fund

A. The dam repair fund is established consisting of monies appropriated by the legislature, and monies collected by the director in full or partial satisfaction of a lien created by section 45-1212, subsection D and monies collected pursuant to section 45-1220.

B. Monies in the fund shall be used to employ remedial measures necessary to protect life and property in accordance with section 45‑1212 carry out the purposes of this chapter.

C. The director shall annually report to the legislature on the status of the fund and the purposes for which monies were expended during the preceding calendar year. The report shall be submitted pursuant to section 41-1178 no later than fifteen days after the commencement of each regular session.

D. The director shall administer the fund. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund. Monies in the dam repair fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.END_STATUTE

Sec. 4. Section 45-1220, Arizona Revised Statutes, is amended to read:

START_STATUTE45-1220. Deposit of monies; dam repair fund

A. Monies appropriated by the legislature for nonemergency dam repair, dam safety inspection fees collected pursuant to section 45-113, filing fees collected pursuant to section 45-1204 and payments of principal and interest collected by the director pursuant to section 45-1218 shall be deposited in the dam repair fund established by section 45-1212.01.

B. Monies in the dam repair fund deposited pursuant to subsection A of this section shall be used for loans and grants as provided in sections 45‑1218 and 45-1219 to carry out the purposes of this chapter. Upon approval of the joint legislative budget committee, such monies may be transferred to pay necessary costs of remedial measures as provided in section 45-1212.END_STATUTE

Sec. 5. Exemption from rule making

Notwithstanding any other law, the director of water resources is exempt from the rule making requirements in title 41, chapter 6, Arizona Revised Statutes, for twelve months after the effective date of this act to adopt rules establishing the water use assessments required by title 45, chapter 1, article 2, Arizona Revised Statutes, as added by this act.

Sec. 6. Emergency

This act is an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.