North Dakota HB 1374: AN ACT to create and enact sections 61‑02‑14.3, 61‑02‑80, 61‑02‑81, and a new section to chapter 61‑03 of the North Dakota Century Code, relating to contracts and financial assistance for water projects and duties of the state engineer; and to amend and reenact sections 61‑02‑01.3, 61‑02‑01.4, 61‑02‑02, 61‑02‑04, 61‑02‑07, and 61‑02‑08, subsection 1 of section 61‑02‑14, and subsection 4 of section 61‑02‑62 of the North Dakota Century Code, relating to definitions of types of financial assistance for water projects and the composition and operation of the state water commission.

Bill Text

17.0880.02000
Sixty-fifth
Legislative Assembly
of North Dakota
Introduced by
Representatives Schmidt, D. Anderson, J. Nelson, Sanford, Streyle, Zubke
Senators Bekkedahl, Kreun, G. Lee, Luick, Schaible, Sorvaag
A BILL for an Act to create and enact sections 61-02-14.3, 61-02-80, 61-02-81, and a new
section to chapter 61-03 of the North Dakota Century Code, relating to contracts and financial
assistance for water projects and duties of the state engineer; and to amend and reenact
sections 61-02-01.3, 61-02-01.4, 61-02-02, 61-02-04, 61-02-07, 61-02-08, and 61-02-12,
subsection 1 of section 61-02-14, and subsection 4 of section 61-02-62 of the North Dakota
Century Code, relating to definitions of types of financial assistance for water projects and the
composition and operation of the state water commission.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 61-02-01.3 of the North Dakota Century Code is
amended and reenacted as follows:
61-02-01.3. Comprehensive water development plan.
Biennially, the commission shall develop and maintain a comprehensive water development
plan organized on a river basin perspective, including an inventory of future water projects for
budgeting and planning purposes. As part of the commission's planning process, in order to
facilitate local project sponsor participation and project prioritization and to assist in project
cost-benefit analysis life cycle analyses for water supply projects and economic analyses for
flood control projects expected to cost more than fiveseven hundred fifty thousand dollars, the
commission shall develop a policy that outlines procedures for commissioner-hosted meetings
within the Red River, James River, Mouse River, upper Missouri River, lower Missouri River,
and Devils Lake drainage basins.
SECTION 2. AMENDMENT. Section 61-02-01.4 of the North Dakota Century Code is
amended and reenacted as follows:
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HOUSE BILL NO. 1374

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61-02-01.4. State water commission cost-share policy.
The state water commission shall adopt a cost-share policy for the financing of water
projects. The policy:
1. Must provide a water supply project is eligible for grantsa cost - share up to seventy-five
percent of the total eligible project costs.
2. May not determine program eligibility of water supply projects based on a population
growth factor. However, a population growth factor may be used in prioritizing projects
for that purpose.
3. Must consider all project costs potentially eligible for reimbursement, except the
commission shall exclude operations expense and regular maintenance for water
conveyance projects and may exclude operations expense and regular maintenance
for other projects. The commission shall require a water project sponsor to maintain a
capital improvement fund from the rates charged customers for future extraordinary
maintenance projects as condition of funding an extraordinary maintenance project.
4. May not determine program eligibility of water supply projects based on affordability.
However, affordability may be used in prioritizing projects for that purpose.
SECTION 3. AMENDMENT. Section 61-02-02 of the North Dakota Century Code is
amended and reenacted as follows:
61-02-02. Definitions.
In this chapter, unless the context or subject matter otherwise requires:
1. "Commission" means the state water commission.
2. "Cost of works" includes:
a. The cost of construction, the cost of all lands, property rights, water rights,
easements, and franchises acquired which are deemed necessary for such
construction;
b. The cost of all water rights acquired or exercised by the commission in
connection with such works;
c. The cost of all machinery and equipment, financing charges, interest prior to and
during construction and for a period not exceeding three years after the
completion of construction;
Page No. 2 17.0880.02000
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d. The cost of engineering and legal expenses, plans, specifications, surveys,
estimates of cost, and other expenses necessary or incident to determining the
feasibility or practicability of any project;
e. Administrative expenses;
f. The construction of the works and the placing of the same in operation; and
g. Such other expenses as may be necessary or incident to the financing authorized
in this chapter, including funding of debt service, repair and replacement
reserves, capitalized interest, and the payment of bond issuance costs.
3. "Cost - share" means funds appropriated by the legislative assembly or otherwise
transferred by the commission to a local entity under commission policy as
reimbursement for a percentage of the total approved cost of a project approved by
the commission.
4. "Grant" means a one - time sum of money appropriated by the legislative assembly and
trans