SB 1221 — basin management areas; appropriation

THE DIRECTOR MAY REFER EITHER OF THE FOLLOWING TO THE APPLICABLE COUNTY BOARD OF SUPERVISORS FOR DESIGNATION AS A BASIN MANAGEMENT AREA:

1.

AN IRRIGATION NON-EXPANSION AREA THAT IS LOCATED OUTSIDE OF A BASIN OR SUBBASIN IN WHICH GROUNDWATER MAY BE TRANSPORTED TO AN ACTIVE MANAGEMENT AREA PURSUANT TO ARTICLE 8.1 OF THIS CHAPTER.

- 2 - S.B.

1221 2.

A BASIN IN WHICH THE DEPARTMENT HAS REPORTED OBSERVED MEAN DECLINES IN GROUNDWATER LEVELS GREATER THAN FIFTY FEET DURING THE PERIOD FROM 2000 THROUGH 2020.

I.

IF THE DIRECTOR REFERS AN IRRIGATION NON-EXPANSION AREA OR BASIN TO A COUNTY BOARD OF SUPERVISORS PURSUANT TO SUBSECTION H OF THIS SECTION, THE IRRIGATION NON-EXPANSION AREA OR REFERRED BASIN IS NOT SUBJECT TO THE PETITION REQUIREMENTS PRESCRIBED IN SUBSECTION A OF THIS SECTION BUT IS SUBJECT TO THE MEETING AND VOTE PROCEDURES PRESCRIBED IN SUBSECTIONS F AND G OF THIS SECTION.

J.

IF A PETITION THAT IS FILED PURSUANT TO SECTION 45-445 RECEIVES APPROVAL OR THE DIRECTOR DESIGNATESDECLARES AALL BASINBASINS OR SUBBASINS IN AN IRRIGATION NON-EXPANSION AREA AS A BASIN MANAGEMENT AREA INDEPENDENTPURSUANT OFTO ASECTION GENERAL45-445.10, ELECTION, THE DIRECTOR SHALL HOLD A SERIES OF PUBLIC MEETINGS AS FOLLOWS:

AT THE MEETING, THE DIRECTOR SHALL PRESENT ANY DATA ON GROUNDWATER LEVELS FOR THE PROPOSED BASIN MANAGEMENT AREA FROM THE -DEPARTMENT 2AND -SHALL S.B.DESCRIBE THE EFFECTS OF THE PROPOSED FORMATION OF THE BASIN MANAGEMENT AREA, INCLUDING THE RESULTS OF THE COST BENEFIT ANALYSIS CONDUCTED PURSUANT TO SECTION 45-445, THE COST OF APPLICATIONS THAT USERS MAY SUBMIT TO THE DEPARTMENT AND THE EFFECTS OF WATER CONSERVATION.

1221ANY DEPARTMENTPERSON ANDMAY SHALLAPPEAR DESCRIBEAT THE EFFECTSMEETING, OFEITHER THEIN PROPOSEDPERSON FORMATIONOR OFBY THEREPRESENTATIVE, BASINAND MANAGEMENTMAY AREA,SUBMIT ORAL OR DOCUMENTARY INFORMATION REGARDING THE COSTPROPOSED OFACTION APPLICATIONSOR THATANY USERSSECONDARY MAYMODELING SUBMITCHALLENGING TOTHE MODELING COMPLETED BY THE DEPARTMENT ANDPURSUANT THETO EFFECTSSECTION OF45-445, WATERSUBSECTION CONSERVATION.D OR E.

ANY PERSON MAY APPEAR AT THE MEETING, EITHER IN PERSON OR BY REPRESENTATIVE, AND MAY SUBMIT ORAL OR DOCUMENTARY INFORMATION REGARDING THE PROPOSED ACTION OR ANY SECONDARY MODELING CHALLENGING THE MODELING COMPLETED BY THE DEPARTMENT PURSUANT TO SECTION 45-445.

THE DIRECTORTHIRD MAYMEETING CALLSHALL ANYBE OTHERA PUBLICMEETING MEETINGSOF A JOINT LEGISLATIVE COMMITTEE CONSISTING OF ALL MEMBERS OF THE DIRECTORHOUSE DEEMSOF NECESSARY.REPRESENTATIVES NATURAL RESOURCES, ENERGY AND WATER COMMITTEE AND THE SENATE NATURAL RESOURCES, ENERGY AND WATER COMMITTEE, OR THEIR SUCCESSOR COMMITTEES.

THE - 3 - S.B.

1221 CHAIRPERSON OF THE HOUSE OF REPRESENTATIVES NATURAL RESOURCES, ENERGY AND WATER COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE, AND THE CHAIRPERSON OF THE SENATE NATURAL RESOURCES, ENERGY AND WATER COMMITTEE, OR THE CHAIRPERSON'S DESIGNEE, SHALL SERVE AS COCHAIRPERSONS.

AT THE MEETING, THE DIRECTOR SHALL PRESENT ANY DATA ON GROUNDWATER LEVELS FOR THE PROPOSED BASIN MANAGEMENT AREA FROM THE DEPARTMENT AND SHALL DESCRIBE THE EFFECTS OF THE PROPOSED FORMATION OF THE BASIN MANAGEMENT AREA.

ANY PERSON MAY APPEAR AT THE MEETING, EITHER IN PERSON OR BY REPRESENTATIVE, AND MAY SUBMIT ORAL OR DOCUMENTARY INFORMATION REGARDING THE PROPOSED ACTION OR ANY SECONDARY MODELING CHALLENGING THE MODELING COMPLETED BY THE DEPARTMENT PURSUANT TO SECTION 45-445, SUBSECTION D OR E.

WITHIN THIRTYFIFTEEN DAYS AFTER THE FINALJOINT PUBLICLEGISLATIVE MEETING ASPRESCRIBED DECLAREDIN BYSUBSECTION THEA, DIRECTOR,PARAGRAPH 3 OF THIS SECTION ADJOURNS, THE DIRECTOR SHALL DOMAKE BOTHA OFDETERMINATION AS TO WHETHER THE FOLLOWING:PROCEDURES OUTLINED IN SECTION 45-445 AND THIS SECTION HAVE BEEN COMPLIED WITH.

1.C.

DECLAREA PARTY MAY SEEK JUDICIAL REVIEW OF THE BASINDIRECTOR'S MANAGEMENTDETERMINATION AREAPURSUANT ESTABLISHED.TO TITLE 12, CHAPTER 7, ARTICLE 6.

2.D.

FILEIF ATHE COPYDIRECTOR DETERMINES PURSUANT TO SUBSECTION B OF THETHIS DIRECTOR'SSECTION FINDINGSTHAT ALL REQUIREMENTS HAVE BEEN COMPLIED WITH, NO CHALLENGE HAS BEEN FILED PURSUANT TO SUBSECTION C OF THIS SECTION 45-445,OR SUBSECTIONA FINAL DECISION HAS BEEN ISSUED IN FAVOR OF THE DEPARTMENT AND ALL CONDITIONS HAVE BEEN MET, THE DIRECTOR SHALL DECLARE A BASIN MANAGEMENT AREA ESTABLISHED AND FILE A TRUE MAP OF THE BASIN MANAGEMENT AREA IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OR COUNTIES IN WHICH THE BASIN MANAGEMENT AREA IS ESTABLISHED.LOCATED.

FOR MUNICIPALMUNICIPAL, INDUSTRIAL OR INDUSTRIALRESIDENTIAL USERS, ON APPLICATION THE DIRECTOR SHALL GRANT THE USER A CERTIFICATE OF GROUNDWATER RIGHTS THAT IS CONSISTENT WITH THE MAXIMUM AMOUNT OF GROUNDWATER WITHDRAWN AND USED BY THE USER IN ACRE-FEETACRE FEET IN ANY ONE YEAR IN THE FIVE PRECEDING YEARS BEFORE THE DATE OF FORMATION OF THE BASIN MANAGEMENT AREA.

FOR IRRIGATIONAGRICULTURAL USERS, THE DIRECTOR SHALL GRANT THE USER A CERTIFICATE OF GROUNDWATER RIGHTS THAT IS CONSISTENT WITH THE AVERAGEHIGHER USE OF THEEITHER: IRRIGATION GROUNDWATER USER IN ACRE-FEET OVER THE TEN YEARS PRECEDING THE DATE OF FORMATION OF THE BASIN MANAGEMENT AREA.

THE(a) DIRECTOR SHALL EXCLUDE FROM THE CALCULATION OF THE AVERAGE AMOUNTUSE OF WATERTHE USEDAGRICULTURAL ANNUALLYGROUNDWATER BYUSER ANIN IRRIGATIONACRE USERFEET INOVER THE PRECEDING TEN YEARS PRECEDINGBEFORE DESIGNATION OF THE BASINDATE MANAGEMENTOF AREAFORMATION ANYOF YEARS DURING WHICH THE IRRIGATIONBASIN USERMANAGEMENT DIDAREA. NOT USE WATER.

- 4 - S.B.

1221 (b) THE MEDIAN USE OF THE AGRICULTURAL GROUNDWATER USER IN ACRE-FEET OVER THE PRECEDING TEN YEARS BEFORE THE DATE OF FORMATION OF THE BASIN MANAGEMENT AREA.

3.

NOTWITHSTANDING PARAGRAPH 2 OF THIS SUBSECTION, FOR AGRICULTURAL USERS THAT HAVE WITHDRAWN AND USED GROUNDWATER FOR FEWER THAN TEN YEARS BEFORE THE DATE OF FORMATION OF A BASIN MANAGEMENT AREA, THE DIRECTOR SHALL GRANT THE USER A CERTIFICATE OF GROUNDWATER RIGHTS THAT IS CONSISTENT WITH THE HIGHER OF EITHER:

(a) THE AVERAGE GROUNDWATER USE OF THE AGRICULTURAL GROUNDWATER USER IN ACRE FEET OVER THE PRECEDING YEARS THAT GROUNDWATER WAS USED IN THE TEN YEARS BEFORE THE DATE OF FORMATION OF THE BASIN MANAGEMENT AREA.

(b) THE MEDIAN GROUNDWATER USE OF THE AGRICULTURAL GROUNDWATER USER IN ACRE FEET OVER THE PRECEDING YEARS THAT GROUNDWATER WAS USED IN THE TEN YEARS BEFORE THE DATE OF FORMATION OF THE BASIN MANAGEMENT AREA.

FOR THE PURPOSES OF THIS SUBSECTION, "SUBSTANTIAL CAPITAL INVESTMENT" INCLUDES APPLICATIONS FOR REZONING OR OTHER PERMITS, THE ACQUISITION OF LEASED RIGHT-OF-WAYS AND THE IMPROVEMENT OF LAND, INFRASTRUCTURE OR ON-SITE IRRIGATION DISTRIBUTION FACILITIES, INCLUDING THE DRILLING OF WELLS.

-D. 3 - S.B.

1221 D.

FOR THE PURPOSES OF THIS SUBSECTION:SUBSECTION, A USER MAY VOLUNTARILY ACQUIRE AND REPORT METERING DATA.

1.- 5 - S.B.

A1221 USERG. MAY VOLUNTARILY ACQUIRE AND REPORT METERING DATA.

2.

THE ANNUAL REPORT A GROUNDWATER USER SUBMITS TO THE DEPARTMENT IS A PUBLIC RECORD.

3.

REPORTS AND THE CORRESPONDING DATA MAY BE PRESENTED AS EVIDENCE IN ANY COURT IN THIS STATE ONLY IF THE CASE DOES NOT INVOLVE A GENERAL STREAM ADJUDICATION OR A FEDERALLY RESERVED WATER RIGHT.

A GROUNDWATER USER MAY CONSENT TO THE WAIVER OF THIS PRIVILEGE.

G.

-5. 4 - S.B.

1221 5.

FOR IRRIGATIONTHE USERS,PURPOSES SUBSTANTIALOF CAPITALTHIS INVESTMENTARTICLE, INCLUDESANY THEDATA IMPROVEMENTOR OFESTIMATE LAND,A INFRASTRUCTUREPERSON ORSUBMITS ON-SITEREGARDING IRRIGATIONA DISTRIBUTIONPERSON'S FACILITIES,GROUNDWATER INCLUDINGUSE IS NOT A PUBLIC RECORD UNDER TITLE 39, CHAPTER 1 AND MAY NOT BE DISCLOSED UNLESS THE DRILLINGGROUNDWATER OFUSER WELLS.CONSENTS TO DISCLOSURE.

I.

FOR NON-IRRIGATION USE, SUBSTANTIAL CAPITAL INVESTMENT INCLUDES COSTS RELATED TO ANY OF THE FOLLOWING:

1.

ACQUISITION OF PERMITS AND APPROVALS, INCLUDING LEGAL, TECHNICAL AND ENVIRONMENTAL SERVICES THAT ARE NECESSARY FOR THE AUTHORIZATION TO PROCEED WITH THE PROJECT.

2.

THE ACQUISITION OR LEASE OF LAND FOR PURPOSES OF RIGHTS-OF-WAY, EASEMENT OR OTHER STATE OR FEDERAL LAND USE AUTHORIZATION.

3.

IMPROVEMENT OF LAND FOR THE INTENDED NON-IRRIGATION USE.

4.

CONSTRUCTION OF GROUNDWATER-RELATED INFRASTRUCTURE OR IMPROVEMENTS, INCLUDING WATER DISTRIBUTION FACILITIES, STORAGE FACILITIES, RECHARGE FACILITIES, THE DRILLING OR EQUIPPING OF WELLS, GROUNDWATER TREATMENT FACILITIES WATER AND POWER TRANSMISSION AND OTHER PROJECT-ASSOCIATED FACILITIES.

5.

CONSTRUCTION AND MAINTENANCE OF ANCILLARY STRUCTURES THAT ARE CRITICAL TO A NON-IRRIGATION PROJECT.

J.

IF AN APPLICANT DEMONSTRATES A SUBSTANTIAL CAPITAL INVESTMENT IN THE FACILITIES ASSOCIATED WITH A NON-IRRIGATION USE, THE DIRECTOR SHALL ISSUE A GROUNDWATER PERMIT FOR THE IDENTIFIED USE.

IF THE APPLICANT PUTS GROUNDWATER TO BENEFICIAL USE FOR THE PURPOSES ASSOCIATED WITH THE PERMIT, THAT VOLUME OF WATER BECOMES PERFECTED AND THE DIRECTOR SHALL ISSUE A CERTIFICATE FOR THAT VOLUME OR INCREASE THE GROUNDWATER RIGHT ON THE APPLICANT'S EXISTING CERTIFICATE.

FOR THE PURPOSES OF THIS SUBSECTION, A PERMIT HOLDER MAY APPLY TO PERFECT ALL OR PART OF THE PERMIT VOLUME.

PERMITS THAT ARE UNPERFECTED CANNOT BE TRANSFERRED AND PERMITS CANNOT EARN FLEXIBILITY CREDITS.

K.

FOR THE PURPOSES OF THIS ARTICLE, ANY DATA OR ESTIMATE A PERSON SUBMITS REGARDING A PERSON'S GROUNDWATER USE IS A PUBLIC RECORD UNDER TITLE 39, CHAPTER 1 AND MAY BE PRESENTED AS EVIDENCE IN ANY COURT IN THIS STATE ONLY IF THE CASE DOES NOT INVOLVE A GENERAL STREAM ADJUDICATION OR A FEDERALLY RESERVED WATER RIGHT OR THE GROUNDWATER USER CONSENTS TO THE WAIVER OF THIS PRIVILEGE.

IF AN ACTIVE BASIN MANAGEMENT COUNCIL IS FORMED PURSUANT TO ARTICLE 3.2 OF THIS CHAPTER, THE DEPARTMENT SHALL PROVIDE THE BASIN MANAGEMENT COUNCIL WITH -A 5COPY -OF S.B.ALL PAST AND FUTURE RECEIPTS GRANTED IN THE GROUNDWATER BASIN OR SUBBASIN PURSUANT TO THIS SECTION.

1221 A COPY OF ALL PAST AND FUTURE RECEIPTS GRANTED IN THE GROUNDWATER BASIN PURSUANT TO THIS SECTION.

B.- 6 - S.B.

1221 B.

ARE LESS THAN THE AMOUNT OF THE ANNUAL ALLOCATION OF WATER GRANTED PURSUANT TO THE CERTIFICATE OF GROUNDWATER RIGHT OR THE AMOUNT OF WATER THAT THE PERSON IS ENTITLED TO USE UNDER AN ACTIVE BASIN MANAGEMENT -AREA 6MANAGEMENT -PLAN S.B.PURSUANT TO SECTION 45-446.01, THE AMOUNT OF WATER NOT USED THAT WOULD HAVE BEEN GROUNDWATER SHALL BE REGISTERED AS A CREDIT TO THE ACCOUNT.

1221 AREA MANAGEMENT PLAN PURSUANT TO SECTION 45-446.01, THE AMOUNT OF WATER NOT USED THAT WOULD HAVE BEEN GROUNDWATER SHALL BE REGISTERED AS A CREDIT TO THE ACCOUNT.

THE MAXIMUM EXCESS AMOUNT OF GROUNDWATER THAT A PERSON MAY USE PURSUANT TO THIS SECTION IN ANY ONE YEAR SHALL BE EQUAL TO TWENTY-FIVEFIFTY PERCENT OF THE ANNUAL ALLOCATION OF WATER GRANTED PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHT.

F.- 7 - S.B.

1221 F.

EACH PERSON WHO OWNS A CERTIFICATE OF GROUNDWATER RIGHT AND WHOSE RIGHT HAS REGISTERED A CREDIT BALANCE TO ITS FLEXIBILITY ACCOUNT MAY CONVEY OR SELL ALL OR A PORTION OF THE CREDIT BALANCE TO ANY PERSON, INCLUDING THE CONVEYOR OR SELLER OF THE CREDIT BALANCE, WHO OWNS ANOTHER CERTIFICATE OF GROUNDWATER RIGHT IN THE SAME GROUNDWATER BASIN.BASIN OR SUBBASIN.

AFTER RECEIVING THE NOTICE, THE DIRECTOR SHALL REGISTER A DEDUCTION OF THE -CREDIT 7AMOUNT -EXTINGUISHED S.B.FROM THE FLEXIBILITY ACCOUNT BALANCE OF THE PERSON WHO EXTINGUISHED THE CREDIT BALANCE.

1221 CREDIT AMOUNT EXTINGUISHED FROM THE FLEXIBILITY ACCOUNT BALANCE OF THE PERSON WHO EXTINGUISHED THE CREDIT BALANCE.

3.- 8 - S.B.

1221 3.

Use of agricultural groundwater rightsright A.

-B. 8 - S.B.

1221 B.

IF THE MUNICIPAL AND INDUSTRIAL USE IS ON LAND DESCRIBED IN THE AGRICULTURAL CERTIFICATE OF GROUNDWATER RIGHTS, EIGHTY-FIVENINETY PERCENT OF THE AMOUNT OF THE AGRICULTURAL GROUNDWATER RIGHT ALLOCATION.

IF THE MUNICIPAL AND INDUSTRIAL USE IS ON LAND OTHER THAN LAND DESCRIBED IN THE AGRICULTURAL CERTIFICATE OF GROUNDWATER RIGHTS, EIGHTY-FIVEEIGHTY PERCENT OF THE AMOUNT OF THE AGRICULTURAL GROUNDWATER RIGHT ALLOCATION.

A PERSON WHO PROPOSES TO CONVERT AN AGRICULTURAL GROUNDWATER RIGHT TO A MUNICIPAL AND INDUSTRIAL USE SHALL NOTIFY THE DIRECTOR, ON A FORM PRESCRIBED AND FURNISHED BY THE DIRECTOR, OF THE CONVERSION AND THE LOCATION OF EACH WELL FROM WHICH GROUNDWATER WILL BE WITHDRAWN FOR A MUNICIPAL- AND9 INDUSTRIAL- USES.B. AND THE TYPES OF USE FOR WHICH GROUNDWATER WILL BE WITHDRAWN.

1221 MUNICIPAL AND INDUSTRIAL USE AND THE TYPES OF USE FOR WHICH GROUNDWATER WILL BE WITHDRAWN.

THE OWNER OF A MUNICIPAL AND INDUSTRIAL CERTIFICATE OF GROUNDWATER RIGHTS MAY SELL OR CONVEY ALL OR PART OF THE GROUNDWATER RIGHT FOR ANY NONAGRICULTURAL USE IN THE SAME GROUNDWATER BASIN.BASIN OR SUBBASIN.

-C. 9 - S.B.

1221 C.

1.- 10 - S.B.

1221 1.

THE OWNER OF AN AGRICULTURAL CERTIFICATE OF GROUNDWATER RIGHTS MAY SELL OR CONVEY ALL OR PART OF THE RIGHT FOR AGRICULTURAL USE ON OTHER LAND IN THE SAME GROUNDWATER BASIN.BASIN OR SUBBASIN.

-5. 10 - S.B.

1221 5.

J.

NOTWITHSTANDING ANY OTHER LAW, THE TRANSFER OF FLEXIBILITY CREDITS BETWEEN AN IRRIGATION USER AND A LIVESTOCK INDUSTRIAL USER THAT SHARE COMMON OWNERSHIP SHALL NOT BE SUBJECT TO ANY REDUCTION IN THE IRRIGATION GROUNDWATER RIGHT ALLOCATION.

2.- 11 - S.B.

1221 2.

-45-445.10. 11 - S.B.

1221Irrigation 45-445.10.non-expansion area to basin management area IF A BASIN MANAGEMENT AREA IS ESTABLISHED PURSUANT TO THIS ARTICLE IN AN AREA THAT WAS PREVIOUSLY DESIGNATED AS AN IRRIGATION NON-EXPANSION AREA, THE DIRECTOR SHALL DECLARE ALL BASINS OR SUBBASINS IN THE IRRIGATION NON-EXPANSION AREA AS A BASIN MANAGEMENT AREA AND THE IRRIGATION NON-EXPANSION AREA AND ANY REGULATIONS ADOPTED PURSUANT TO THE DESIGNATION AS AN IRRIGATION NON-EXPANSION TERMINATE.

Irrigation non-expansion area to basin management area IF A BASIN MANAGEMENT AREA IS ESTABLISHED PURSUANT TO THIS ARTICLE IN AN AREA THAT WAS PREVIOUSLY DESIGNATED AS AN IRRIGATION NON-EXPANSION AREA, THE DIRECTOR SHALL DECLARE ALL BASINS IN THE IRRIGATION NON-EXPANSION AREA AS A BASIN MANAGEMENT AREA AND THE IRRIGATION NON-EXPANSION AREA AND ANY REGULATIONS ADOPTED PURSUANT TO THE DESIGNATION AS AN IRRIGATION NON-EXPANSION AREA TERMINATE.

45-445.12.ARTICLE 3.2.

BasinACTIVE managementBASIN council;MANAGEMENT 45-446.

Active basin management area;

initiation procedures;

election;

map A.

THE DESIGNATION OF AN ACTIVE BASIN MANAGEMENT AREA IN ANY LOCATION THAT IS DESIGNATED A BASIN MANAGEMENT AREA PURSUANT TO ARTICLE 3.1 OF THIS CHAPTER MAY BE INITIATED BY A UNANIMOUS VOTE OF ALL BOARDS OF SUPERVISORS WITH GEOGRAPHIC BOUNDARIES WITHIN THE GROUNDWATER BASIN OR SUBBASIN.

IF ALL SUPERVISORS VOTE TO DESIGNATE AN ACTIVE BASIN MANAGEMENT AREA, THE COUNTY BOARD OF SUPERVISORS SHALL CALL FOR AN ELECTION ON THE QUESTION OF DESIGNATING AN ACTIVE BASIN MANAGEMENT AREA WITH BOUNDARIES THAT ARE COTERMINOUS WITH THE BOUNDARIES OF THE GROUNDWATER BASIN OR SUBBASIN DESIGNATED AS A BASIN MANAGEMENT AREA AND FOR THE ELECTION OF - 12 - S.B.

1221 THREE ACTIVE BASIN MANAGEMENT COUNCIL MEMBERS.

IF THE PROPOSED ACTIVE BASIN MANAGEMENT AREA IS LOCATED IN MORE THAN ONE COUNTY, THE RESPECTIVE COUNTIES SHALL COOPERATE TO ADMINISTER THE ELECTION.

NOTWITHSTANDING ANY OTHER LAW, THE ELECTION SHALL BE CONDUCTED AS PRESCRIBED IN TITLE 16, CHAPTER 4, ARTICLE 8.1, EXCEPT THAT THE ELECTION SHALL INCLUDE ONLY REGISTERED VOTERS WHO RESIDE INSIDE THE BOUNDARIES OF THE PROPOSED ACTIVE BASIN MANAGEMENT AREA AND WHO RECEIVE THEIR DRINKING WATER FROM THE GROUNDWATER BASIN OR SUBBASIN AS ELIGIBLE VOTERS.

B.

THE BALLOT SHALL BE WORDED "SHOULD THE (INSERT THE NAME OF GROUNDWATER BASIN OR SUBBASIN) BE DESIGNATED AN ACTIVE BASIN MANAGEMENT AREA?" FOLLOWED BY THE WORDS "YES" AND "NO".

C.

CANDIDATES FOR AN ACTIVE BASIN MANAGEMENT COUNCIL SHALL FILE NOMINATION PETITIONS WITH THE DIRECTOR IN THE MANNER PRESCRIBED BY THE DIRECTOR.

ANY QUALIFIED ELECTOR OF THE PROPOSED ACTIVE BASIN MANAGEMENT AREA MAY SIGN THE PETITIONS OF NOT MORE THAN THREE CANDIDATES.

THE NAMES OF CANDIDATES SHALL APPEAR ON THE ELECTION BALLOT IN ALPHABETICAL ORDER BY SURNAMES, WITH A SQUARE OPPOSITE EACH NAME, AND AN INSTRUCTION TO MARK AN X IN THE SQUARES OPPOSITE THE NAMES OF NOT MORE THAN THREE CANDIDATES FOR WHOM THE VOTER WISHES TO VOTE.

D.

IF A MAJORITY OF THE ELIGIBLE VOTERS VOTING ON THE QUESTION APPROVES THE FORMATION OF THE ACTIVE BASIN MANAGEMENT AREA, THE DIRECTOR SHALL HOLD THREE PUBLIC MEETINGS, MAKE THE NECESSARY DETERMINATION AND ALLOW FOR CHALLENGES AS PRESCRIBED IN SECTION 45-445.01, EXCEPT THE DIRECTOR SHALL DESCRIBE THE EFFECTS OF THE PROPOSED FORMATION OF AN ACTIVE BASIN MANAGEMENT AREA AND MAKE A DETERMINATION CONSISTENT WITH THE PROCEDURES PRESCRIBED IN THIS ARTICLE.

AFTER THE ACTIVE BASIN MANAGEMENT AREA IS ESTABLISHED, THE DIRECTOR SHALL FILE A TRUE COPY OF THE MAP OF THE ACTIVE BASIN MANAGEMENT AREA IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OR COUNTIES IN WHICH THE ACTIVE BASIN MANAGEMENT AREA IS LOCATED.

E.

THE THREE CANDIDATES WHO RECEIVE THE HIGHEST NUMBER OF VOTES AT THE ELECTION FOR THE ACTIVE BASIN MANAGEMENT COUNCIL MEMBERS SHALL BE DECLARED ELECTED.

THE COUNCIL MEMBERS' TERMS SHALL BEGIN ON THE DATE OF FILING THE OATH OF OFFICE WITH THE SECRETARY OF STATE AND THE CANDIDATES SHALL SERVE FOUR YEAR TERMS.

45-446.01.

Active basin management council;

duties;duties A.

exemptionAN A.ACTIVE BASIN MANAGEMENT COUNCIL SHALL BE ESTABLISHED IN EACH ACTIVE BASIN MANAGEMENT AREA CONSISTING OF THE FOLLOWING FIVE MEMBERS:

A BASIN MANAGEMENT COUNCIL SHALL BE ESTABLISHED IN EACH BASIN MANAGEMENT AREA CONSISTING OF THE FOLLOWING FIVE MEMBERS:

ONETHREE MEMBERMEMBERS WHO REPRESENTSRESIDE ORWITHIN ISTHE ANBOUNDARIES INDUSTRIALOF USERTHE WITHACTIVE ABASIN CERTIFICATEMANAGEMENT OFAREA, GROUNDWATERWHO RIGHTSRECEIVE INTHEIR DRINKING WATER FROM THE GROUNDWATER BASIN OR SUBBASIN AND ISWHO AARE RESIDENTELECTED OFPURSUANT THISTO STATE.SECTION 45-446.

TWO MEMBERS WHO REPRESENTARE ORRESIDENTS AREOF ANTHIS IRRIGATIONSTATE USERAND WITHWHO AARE CERTIFICATEAPPOINTED OFBY GROUNDWATERTHE RIGHTSIRRIGATION INDISTRICTS THEWHOSE BASINBOUNDARIES ANDOVERLAP ISWITH ATHE RESIDENTACTIVE OFBASIN THISMANAGEMENT STATE.AREA.

3.IF NO IRRIGATION DISTRICTS OVERLAP WITH THE - 13 - S.B.

ONE1221 MEMBERBOUNDARIES WHOOF REPRESENTSTHE AACTIVE MUNICIPALBASIN USERMANAGEMENT WITHAREA, ATHE CERTIFICATEIRRIGATION OFDISTRICT GROUNDWATERWHOSE RIGHTSBOUNDARIES INARE CLOSEST TO THOSE OF THE ACTIVE BASIN ANDMANAGEMENT ISAREA ASHALL RESIDENTAPPOINT OFTHESE THISCOUNCIL STATE.MEMBERS.

4.

ONE AT-LARGE MEMBER WHO RESIDES IN THE BASIN.

MEMBERSIF OFA THE BASIN MANAGEMENT COUNCIL SHALLMEMBER BEPOSITION APPOINTEDIS BYVACATED, THE FOLLOWINGAPPOINTING ENTITIESAUTHORITY ANDSHALL INIMMEDIATELY THEAPPOINT FOLLOWINGA ORDER:NEW MEMBER.

1.IF AN ELECTED COUNCIL MEMBER IS REMOVED, THE VOTERS SHALL ELECT A REPLACEMENT AT THE NEXT REGULARLY SCHEDULED ELECTION.

ONEA MEMBERREPLACEMENT WHOMEMBER'S ISTERM APPOINTEDSHALL BYEND AT THE GOVERNOR.SAME TIME AS THE REPLACED MEMBER'S TERM.

2.

ONE MEMBER WHO IS APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES.

3.

ONE MEMBER WHO IS APPOINTED BY THE PRESIDENT OF THE SENATE.

4.

ONE MEMBER WHO IS APPOINTED BY THE GOVERNOR FROM A LIST OF THREE NAMES THE MINORITY LEADER OF THE HOUSE OF REPRESENTATIVES PROVIDES TO THE GOVERNOR.

5.

ONE MEMBER WHO IS APPOINTED BY THE GOVERNOR FROM A LIST OF THREE NAMES THE MINORITY LEADER OF THE SENATE PROVIDES TO THE GOVERNOR.

IFACTIVE ABASIN MANAGEMENT COUNCIL MEMBERMEMBERS POSITIONSERVE ISFOUR-YEAR VACATED,TERMS. THE APPOINTING AUTHORITY SHALL IMMEDIATELY APPOINT A NEW MEMBER WHO REPRESENTS THE SAME CLASS OF CERTIFICATED GROUNDWATER RIGHT HOLDER OR RESIDENT OF THIS STATE AT LARGE AS THE PRIOR APPOINTEE.

COUNCIL MEMBERS MAY BE REMOVED ONLY FOR CAUSE.

IF A COUNCIL MEMBER IS REMOVED THE REPLACEMENT MEMBER'S TERM SHALL END AT THE SAME TIME AS THE REPLACED MEMBER'S TERM.

EXCEPTACTIVE AS PROVIDED IN SUBSECTION F OF THIS SECTION, BASIN MANAGEMENT COUNCIL MEMBERS ARE SUBJECTNOT ELIGIBLE TO ARECEIVE RETENTIONCOMPENSATION ELECTIONBUT EVERYARE FOURELIGIBLE YEARSFOR ANDREIMBURSEMENT MAYOF CONTINUEEXPENSES PURSUANT TO SERVETITLE ONLY38, IFCHAPTER RETAINED4, BYARTICLE A2. MAJORITY VOTE OF ELIGIBLE VOTERS.

-E. 12 - S.B.

1221THE E.ACTIVE BASIN MANAGEMENT COUNCIL SHALL:

BASIN MANAGEMENT COUNCIL MEMBERS ARE NOT ELIGIBLE TO RECEIVE COMPENSATION BUT ARE ELIGIBLE FOR REIMBURSEMENT OF EXPENSES PURSUANT TO TITLE 38, CHAPTER 4, ARTICLE 2.

F.

THE INITIAL BASIN MANAGEMENT COUNCIL MEMBERS SHALL ASSIGN THEMSELVES BY LOT TO CLASS ONE AND CLASS TWO.

CLASS ONE SHALL HAVE THREE MEMBERS AND CLASS TWO SHALL HAVE TWO MEMBERS.

IF A BASIN MANAGEMENT COUNCIL IS ESTABLISHED SIXTY DAYS OR MORE BEFORE A REGULAR GENERAL ELECTION, CLASS ONE SHALL BE SUBJECT TO RETENTION AT THE NEXT REGULAR GENERAL ELECTION AFTER ESTABLISHMENT AND CLASS TWO SHALL BE SUBJECT TO RETENTION ON THE REGULAR GENERAL ELECTION IMMEDIATELY FOLLOWING THE NEXT REGULAR GENERAL ELECTION BALLOT AFTER ESTABLISHMENT.

IF A BASIN MANAGEMENT COUNCIL IS ESTABLISHED LESS THAN SIXTY DAYS BEFORE A REGULAR GENERAL ELECTION, CLASS ONE SHALL BE SUBJECT TO RETENTION AT THE SECOND NEXT REGULAR GENERAL ELECTION AFTER ESTABLISHMENT AND CLASS TWO SHALL BE SUBJECT TO RETENTION AT THE THIRD REGULAR GENERAL ELECTION AFTER ESTABLISHMENT.

G.

AT LEAST SIXTY BUT NOT MORE THAN NINETY DAYS BEFORE THE REGULAR GENERAL ELECTION IN WHICH A BASIN MANAGEMENT COUNCIL MEMBER IS SUBJECT TO RETENTION, A COUNCIL MEMBER WHO DESIRES TO BE RETAINED SHALL FILE, IN THE OFFICE OF THE CLERK OR CLERKS OF THE BOARD OF SUPERVISORS IN WHICH THE BASIN MANAGEMENT AREA IS LOCATED, A DECLARATION OF THE COUNCIL MEMBER'S DESIRE TO BE RETAINED.

IF A COUNCIL MEMBER WHO IS SUBJECT TO RETENTION DOES NOT FILE A DECLARATION OF THE COUNCIL MEMBER'S DESIRE TO BE RETAINED IN OFFICE, THE COUNCIL MEMBER'S OFFICE BECOMES VACANT ON JANUARY 1 FOLLOWING THE GENERAL ELECTION IN WHICH THE COUNCIL MEMBER WOULD HAVE BEEN A CANDIDATE FOR RETENTION.

H.

THE NAME OF ANY BASIN MANAGEMENT COUNCIL MEMBER WHOSE DECLARATION TO BE RETAINED IS FILED AS PROVIDED IN THIS SECTION SHALL BE PLACED ON THE APPROPRIATE OFFICIAL BALLOT AT THE NEXT REGULAR GENERAL ELECTION UNDER A NONPARTISAN DESIGNATION AND IN SUBSTANTIALLY THE FOLLOWING FORM:

SHALL (NAME OF COUNCIL MEMBER) OF THE (NAME OF BASIN) BASIN MANAGEMENT COUNCIL BE RETAINED IN OFFICE? YES __ NO __ (MARK X AFTER ONE).

I.

IF A MAJORITY OF THOSE VOTING ON THE QUESTION VOTE "NO", A VACANCY SHALL EXIST, WHICH SHALL BE FILLED AS PROVIDED IN THIS SECTION.

A COUNCIL MEMBER WHO RECEIVES A MAJORITY OF "NO" VOTES IS NOT RETAINED AND IS NOT ELIGIBLE FOR APPOINTMENT ON ANY BASIN MANAGEMENT COUNCIL.

IF A MAJORITY OF THOSE VOTING ON THE QUESTION VOTE "YES", THE COUNCIL MEMBER IS RETAINED IN OFFICE FOR ANOTHER FOUR-YEAR TERM, SUBJECT TO REMOVAL FOR CAUSE ONLY BY THE GOVERNOR OR BY RECALL AS PROVIDED IN TITLE 19, CHAPTER 2.

J.

COUNCIL MEMBERS REMOVED FOR CAUSE OR RECALLED FROM OFFICE ARE NOT ELIGIBLE FOR APPOINTMENT ON ANY BASIN MANAGEMENT COUNCIL.

COUNCIL MEMBERS WHO ARE NOT RECALLED OR REMOVED FOR CAUSE OR WHO DO NOT RECEIVE A MAJORITY OF "NO" VOTES IN A RETENTION ELECTION ARE ELIGIBLE TO SERVE AS - 13 - S.B.

1221 MANY TERMS AS DESIRED UNTIL RECALLED, REMOVED FOR CAUSE OR RECEIVING A MAJORITY OF "NO" VOTES IN A RETENTION ELECTION.

K.

THE BASIN MANAGEMENT COUNCIL SHALL:

HOLD AT LEAST TWO PUBLIC MEETINGS IN THE BASIN OR SUBBASIN AND ALLOW PUBLIC COMMENT BEFORE ADOPTING AAN ACTIVE BASIN MANAGEMENT AREA MANAGEMENT PLAN.

THE PLAN SHALL BE CONSISTENT WITH THE MANAGEMENT GOALS OF AAN ACTIVE BASIN MANAGEMENT AREA,AREA SHALL BE LEGALLY AND ECONOMICALLY FEASIBLE AND MUST BE APPROVED BY AALL MAJORITY OF THE MEMBERS OF THE COUNCIL.

THE PLAN SHALLMAY NOT REQUIRE A WATER USER TO REDUCE ANNUAL WATER USE BY AN AMOUNT GREATER THAN TEN PERCENT OF THE ANNUAL ALLOCATION OF WATER THAT THE USER IS ENTITLED TO PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHTS WITHINISSUED TENPURSUANT YEARSTO AFTERSECTION 45-445.02 AT ANY TIME DURING THE FORMATIONTERM OF THEAN ACTIVE BASIN MANAGEMENT AREAAREA, ANDINCLUDING MAYDURING NOT REQUIRE ANY WATERSUBSEQUENT USERTERM TOOF ACHIEVETHE TOTALACTIVE WATERMANAGEMENT USEAREA REDUCTIONSAND INMAY INCREMENTSNOT GREATERREQUIRE THANANY TWO- PERCENT14 PER- YEAR.S.B.

1221 WATER USER TO ACHIEVE TOTAL WATER USE REDUCTIONS IN INCREMENTS GREATER THAN TWO PERCENT PER YEAR.

L.F.

THEAN ACTIVE BASIN MANAGEMENT COUNCIL MAY:MAY HAVE ONLY THOSE POWERS GIVEN TO IT BY STATUTE AND MAY EXERCISE THE POWERS OF THE COUNCIL, INCLUDING THE SUBMISSION AND ADOPTION OF AN ACTIVE BASIN MANAGEMENT AREA MANAGEMENT PLAN, ONLY ON AN UNANIMOUS VOTE OF THE COUNCIL.

UNLESS OTHERWISE AUTHORIZED BY LAW, THE DIRECTOR MAY NOT TAKE ANY ACTION IN AN ACTIVE BASIN MANAGEMENT AREA NOT RECOMMENDED BY THE COUNCIL.

45-446.02.

Active basin management areas;

goals THE GOALS OF AN ACTIVE BASIN MANAGEMENT AREA AND AN ACTIVE BASIN MANAGEMENT COUNCIL MAY BE ANY OF THE FOLLOWING AS DETERMINED BY THE COUNCIL:

AFTERTO RECEIVINGPROTECT THE REPORTECONOMY OFWHILE HYDROLOGICALCONSIDERING CONDITIONS IN THE BASINNEED PROVIDEDTO BYPRESERVE THEGROUNDWATER DEPARTMENTFOR INFUTURE THENON-IRRIGATION YEARUSES. FOURTEEN AFTER FORMATION OF THE BASIN MANAGEMENT AREA AND BY AN AFFIRMATIVE VOTE OF FOUR OR MORE COUNCIL MEMBERS:

(a) INCREASE THE MANDATORY REDUCTION IN THE ANNUAL ALLOCATION OF WATER PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHTS BEGINNING IN YEAR FIFTEEN AFTER FORMATION OF THE BASIN MANAGEMENT AREA BY NOT GREATER THAN - 14 - S.B.

1221 ONE PERCENT A YEAR AND IN A TOTAL AGGREGATE AMOUNT THAT IS EQUAL OR LESS THAN THE DIRECTOR'S RECOMMENDATION IF ALL OF THE FOLLOWING APPLY:

(i) THE HYDROLOGICAL STUDY DEMONSTRATES THAT THE CONDITIONS IN SUBSECTION M, PARAGRAPH 2, SUBDIVISION (c) OF THIS SECTION EXIST IN THE BASIN.

(ii) THE COUNCIL HOLDS AT LEAST ONE PUBLIC MEETING ON THE HYDROLOGICAL REPORT AND THE DIRECTOR'S RECOMMENDATION BEFORE VOTING ON ANY REDUCTION IN THE ANNUAL ALLOCATION.

(iii) THE DIRECTOR RECOMMENDS THAT THE COUNCIL INCREASE THE MANDATORY REDUCTION IN THE ANNUAL ALLOCATION OF WATER PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHTS BETWEEN ONE AND FIVE PERCENT.

(b) DECREASE THE MANDATORY REDUCTION IN THE ANNUAL ALLOCATION OF WATER PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHTS BEGINNING IN YEAR FIFTEEN AFTER FORMATION OF THE BASIN MANAGEMENT AREA BY NOT GREATER THAN ONE PERCENT A YEAR IF THE HYDROLOGICAL STUDY DEMONSTRATES THAT THE CONDITIONS IN SUBSECTION M, PARAGRAPH 2, SUBDIVISION (c) OF THIS SECTION EXIST IN THE BASIN.

ADOPTTO AGATHER BESTAND MANAGEMENTOBTAIN PRACTICESA PROGRAMBETTER FORUNDERSTANDING MUNICIPALOF USERSTHE THATGROUNDWATER ALLOWSBASIN AOR MUNICIPALSUBBASIN USERAND WHOAQUIFER ISHEALTH ENTITLEDBY TOINSTALLING USEINDEX GROUNDWATERWELLS PURSUANTAND TOPROMOTING AWATER CERTIFICATEUSERS TOIN IMPLEMENT THE MUNICIPALITY'SGROUNDWATER CHOICEBASIN OFTO CONSERVATIONVOLUNTARILY PROGRAMSPROVIDE APPROVEDGROUNDWATER BYDATA THE DEPARTMENT AND APPROPRIATE TO THE MUNICIPALITY'SCOUNCIL. WATER USE.

MUNICIPAL USERS THAT PARTICIPATE IN THE BEST MANAGEMENT PRACTICES PROGRAM SHALL BE EXEMPT FROM ANY MANDATORY REDUCTION IN ANNUAL ALLOCATION GRANTED PURSUANT TO A CERTIFICATE OF GROUNDWATER RIGHTS.

M.

THE DIRECTOR SHALL:

1.

STARTING FIVE YEARS AFTER FORMATION OF A BASIN MANAGEMENT AREA, CONDUCT AN ECONOMIC STUDY TO BE RELEASED TO THE PUBLIC THAT EXAMINES THE FOLLOWING:

(a) THE COSTS OF PERMANENTLY CLOSING THE BASIN MANAGEMENT AREA, INCLUDING THE REDUCTION IN LOCAL PROPERTY, SALES AND TRANSACTION PRIVILEGE AND INCOME TAXES.

(b) THE COSTS OF THE MANDATORY TEN PERCENT REDUCTION IN ANNUAL GROUNDWATER USE PURSUANT TO CERTIFICATED GROUNDWATER RIGHTS, INCLUDING THE REDUCTION IN LOCAL PROPERTY, SALES AND TRANSACTION PRIVILEGE AND INCOME TAXES.

(c) THE TANGIBLE ECONOMIC BENEFITS OF PERMANENTLY CLOSING THE BASIN MANAGEMENT AREA AND THE MANDATORY TEN PERCENT REDUCTION IN ANNUAL GROUNDWATER USE PURSUANT TO CERTIFICATED GROUNDWATER RIGHTS.

FOR THE PURPOSES OF THIS SUBDIVISION, ECOSYSTEM BENEFITS DO NOT CONSTITUTE TANGIBLE ECONOMIC BENEFITS.

2.

NOT EARLIER THAN TEN YEARS AFTER FORMATION OF A BASIN MANAGEMENT AREA, INITIATE A HYDROLOGICAL ANALYSIS OF THE GROUNDWATER BASIN THAT IS RELEASED TO THE PUBLIC AND THE BASIN MANAGEMENT COUNCIL NOT MORE THAN FOURTEEN YEARS AFTER FORMATION OF THE BASIN MANAGEMENT AREA.

THE ANALYSIS SHALL INCLUDE ALL OF THE FOLLOWING:

- 15 - S.B.

1221 (a) A SUMMARY OF HYDROLOGICAL IMPROVEMENTS IN THE BASIN CAUSED BY THE BASIN CLOSURE AND REGULATION.

(b) A REPORT OF TRANSFERS INVOLVING ALL OR PORTIONS OF CERTIFICATES OF GROUNDWATER RIGHTS AND THE VOLUME OF WATER IN ACRE-FEET THAT WAS SAVED AS A RESULT.

(c) A DETERMINATION AS TO WHETHER THE FOLLOWING CONDITIONS EXIST IN THE BASIN:

(i) LAND SUBSIDENCE WITHIN THE BASIN DUE TO GROUNDWATER WITHDRAWAL IS ENDANGERING PROPERTY OR POTENTIAL STORAGE CAPACITY.

(ii) THERE HAS BEEN ACCELERATED DECLINE IN GROUNDWATER LEVELS WITHIN THE GROUNDWATER BASIN OVER THE PRECEDING FIVE YEARS AS MEASURED BY AT LEAST TEN INDEX WELLS ACROSS THE BASIN.

(iii) THE DEPARTMENT HAS REPORTED OBSERVED MEAN DECLINES IN GROUNDWATER LEVELS IN THE BASIN GREATER THAN FIFTY FEET DURING THE PRECEEDING TEN-YEAR.

(d) AN ASSESSMENT WHETHER THE BASIN MANAGEMENT COUNCIL COULD RESTORE ALL OR A PORTION OF USERS' MAXIMUM ANNUAL ALLOCATION OF WATER PURSUANT TO CERTIFICATED GROUNDWATER RIGHTS WITHOUT SUBSTANTIALLY ADVERSELY AFFECTING THE HYDROLOGICAL CONDITIONS IN THE BASIN.

(e) A RECOMMENDATION AS TO WHETHER THE BASIN MANAGEMENT COUNCIL SHOULD RESTORE ALL OR A PORTION OF THE BASIN'S GROUNDWATER USERS' CERTIFICATED WATER RIGHTS WITHOUT SUBSTANTIALLY AFFECTING THE BASIN.

PROVIDETO TECHNICALPRESERVE ANDEXISTING LEGALGROUNDWATER SUPPORTUSES TOIN THE COUNCILGROUNDWATER ONBASIN REQUESTOR SUBBASIN WHILE ALLOWING THE DEVELOPMENT OF ANYOTHER COUNCILUSES MEMBER.AND PRESERVING FUTURE WATER SUPPLIES FOR OTHER USES.

NOTTO REQUIREREDUCE ANYTHE USERRATE INOF AAQUIFER BASINDEPLETION, MANAGEMENTFROM AREATHE TOCURRENT MEASUREDEPLETION ORRATE REPORTAT WATERTHE USETIME WITHAN THEACTIVE USEBASIN OFMANAGEMENT DEVICESAREA ORIS METHODSESTABLISHED NOTTO PRESCRIBEDA INSET THISRATE ARTICLE.BY A SET YEAR AS DETERMINED BY THE COUNCIL.

NOTTO REQUIREADDRESS ANYTHE ANNUAL AVERAGE DEPTH-TO-STATIC LEVEL ACROSS THE GROUNDWATER USERBASIN INOR SUBBASIN FROM DROPPING BELOW A BASINSET MANAGEMENTLEVEL AREAAND, IF THE AVERAGE DEPTH-TO-STATIC LEVEL DROPS BELOW THE SET LEVEL, TO MEASUREBRING WITHDRAWALSTHE FROMAVERAGE ANYDEPTH-TO-STATIC WELLSLEVEL INBACK TO THE BASINSET MANAGEMENTLEVEL AREAWITHIN EXCEPTTWO ASYEARS PRESCRIBEDAFTER INTHE THISCONTINUATION ARTICLE.OR TERMINATION OF THE COUNCIL.

ADOPTTO AMAINTAIN WELL-SPACINGGROUNDWATER REQUIREMENTPROGRAMS FORIN NONEXEMPTTHE WELLSGROUNDWATER BASIN OR SUBBASIN THAT AREPROVIDE DRILLEDREASONABLE AFTERACCESS THETO BASINA ISSUPPLY CLOSED.OF WATER TO MEET REASONABLE COMMERCIAL AND BASIC DOMESTIC NEEDS.

ALLOWTO AINCREASE PERSONTHE TOTOTAL DEEPENAMOUNT OF NATURAL, INCIDENTAL OR CONSTRUCTARTIFICIAL RECHARGE IN THE GROUNDWATER BASIN OR SUBBASIN EACH YEAR, FROM A REPLACEMENTSET WELLLEVEL ATIN APPROXIMATELYACRE-FEET THEPER SAMEYEAR LOCATIONTO WITHOUTA CONDUCTINGHIGHER SET LEVEL IN ACRE-FEET PER YEAR, BY A WELLSET IMPACTYEAR ANALYSIS.AS DETERMINED BY THE COUNCIL.

N.8.

TWENTY-FOURTO YEARSINCREASE AFTER THE FORMATIONTOTAL AMOUNT OF AWATER BASINREUSE MANAGEMENTIN AREATHE ANDGROUNDWATER EVERYBASIN FIFTEENOR YEARSSUBBASE THEREAFTER,EACH THEYEAR, BASINFROM MANAGEMENTA COUNCIL SHALL SET ALEVEL SCHEDULE FOR THE PROCEEDING TEN-YEAR PERIOD OF MANDATORY REDUCTIONS IN ANNUALACRE-FEET ALLOCATIONSPER OFYEAR GROUNDWATER PURSUANT TO CERTIFICATESA OFHIGHER GROUNDWATERSET RIGHTSLEVEL IN ANACRE-FEET AMOUNTPER BETWEENYEAR, ZEROBY ANDA FIFTEENSET PERCENT,YEAR WHICHAS SHALLDETERMINED TAKEBY EFFECT AT THE BEGINNINGCOUNCIL. OF THE NEXT YEAR.

FOR- THE15 PURPOSES- OFS.B. THIS SECTION, MANDATORY REDUCTIONS IN ANNUAL ALLOCATIONS SHALL NOT INCREASE OR DECREASE BY MORE THAN ONE PERCENT A YEAR.

O.1221 45-446.03.

BEGINNINGActive TWENTY-FIVEbasin YEARSmanagement AFTERarea; THE FORMATION OF A BASIN MANAGEMENT AREA AND EVERY TEN YEARS THEREAFTER, THE DIRECTOR SHALL RELEASE - 16 - S.B.

1221right Ato HYDROLOGICALwater; REPORT AS PRESCRIBED BY THIS SECTION BASED ON THE PRIOR TEN-YEAR PERIOD.

P.annual report;

ATtermination THEand ENDcontinuation OFA. EVERY TEN-YEAR PERIOD OF MANDATORY REDUCTIONS PRESCRIBED IN SUBSECTION N OF THIS SECTION AND BEFORE THE BEGINNING OF THE PROCEEDING TEN-YEAR PERIOD PRESCRIBED IN SUBSECTION N OF THIS SECTION, ALL MANDATORY REDUCTIONS IN ANNUAL ALLOCATION AS PRESCRIBED BY THE BASIN MANAGEMENT COUNCIL SHALL REMAIN IN EFFECT.

Q.THE DESIGNATION OF AN ACTIVE BASIN MANAGEMENT AREA MAY NOT INFRINGE ON A WATER USER'S CERTIFICATED WATER RIGHTS GRANTED PURSUANT TO SECTION 45-445.02, EXCEPT THAT AN ACTIVE BASIN MANAGEMENT COUNCIL MAY REQUIRE NOT MORE THAN A TWO PERCENT ANNUAL REDUCTION IN WATER USE AS PART OF AN ACTIVE BASIN MANAGEMENT AREA MANAGEMENT PLAN.

NOTWITHSTANDINGA ANYWATER OTHERUSER LAW,IN AAN ACTIVE BASIN MANAGEMENT COUNCILAREA MAY NOTTRANSFER REDUCE THE ANNUALUSER'S ALLOCATIONWATER OFRIGHTS GROUNDWATERPURSUANT AWARDED TO ANSECTION IRRIGATION45-445.02, USERSUBSECTION PURSUANTD, TOPARAGRAPH A4 CERTIFICATEOR OFUSE GROUNDWATER RIGHTSPURSUANT IFTO THESECTION IRRIGATION45-445.02, USERSUBSECTION FARMSD. LESS THAN ONE HUNDRED TWENTY ACRES AND USES LESS THAN TWO AND ONE-HALF ACRE-FEET PER ACRE PER YEAR.

R.B.

A BASIN MANAGEMENT COUNCIL MAY HAVE ONLY THOSE POWERS GIVEN TO IT BY STATUTE AND MAY EXERCISE THE POWERSDEPARTMENT: OF THE COUNCIL, INCLUDING THE SUBMISSION AND ADOPTION OF A BASIN MANAGEMENT AREA MANAGEMENT PLAN, ONLY ON A MAJORITY VOTE OF THE COUNCIL OR A FOUR PERSON MAJORITY AS PRESCRIBED BY THIS SECTION.

UNLESS OTHERWISE AUTHORIZED BY LAW, THE DIRECTOR MAY NOT TAKE ANY ACTION IN A BASIN MANAGEMENT AREA NOT RECOMMENDED BY THE COUNCIL.

45-445.13.

Basin management areas;

goals THE GOALS OF A BASIN MANAGEMENT AREA AND A BASIN MANAGEMENT COUNCIL MAY BE ANY OF THE FOLLOWING AS DETERMINED BY THE COUNCIL:

TOIN PROTECTCONJUNCTION WITH AN ACTIVE BASIN MANAGEMENT COUNCIL, SHALL ANNUALLY REVIEW THE ECONOMYSTATUS WHILEOF CONSIDERINGGROUNDWATER IN THE NEEDACTIVE TOBASIN PRESERVEMANAGEMENT AREA AND SHALL ESTIMATE THE AMOUNT OF ANY CHANGE IN GROUNDWATER FORLEVELS FUTUREIN NON-IRRIGATIONTHE USES.AREA.

TOSHALL GATHERSUBMIT ANDAN OBTAINANNUAL AREPORT, BETTERON UNDERSTANDINGOR OFBEFORE THEFEBRUARY GROUNDWATER1 BASINOF ANDEACH AQUIFERYEAR, HEALTHOF BYTHE INSTALLINGDEPARTMENT'S INDEXFINDINGS WELLSTO AND PROMOTING WATER USERS IN THE GROUNDWATERACTIVE BASIN TOMANAGEMENT VOLUNTARILY PROVIDE GROUNDWATER DATA TO THE COUNCIL.

TOMAY PRESERVENOT EXISTINGREQUIRE GROUNDWATERA USES IN THE GROUNDWATER BASINUSER WHILETO ALLOWINGMETER THEANY DEVELOPMENTWELLS OFLOCATED OTHERIN USESAN ANDACTIVE PRESERVINGBASIN FUTUREMANAGEMENT WATERAREA. SUPPLIES FOR OTHER USES.

TOMAY REDUCENOT THEREQUIRE RATEA OFGROUNDWATER AQUIFERUSER DEPLETION,TO FROMREPORT THE CURRENTUSER'S DEPLETIONGROUNDWATER RATEUSE ATBEYOND THE TIMEREQUIREMENTS APRESCRIBED BASININ MANAGEMENTSUBSECTION AREAD ISOF ESTABLISHEDTHIS TOSECTION. A SET RATE BY A SET YEAR AS DETERMINED BY THE COUNCIL.

5.C.

TOAN ADDRESSACTIVE THEBASIN ANNUALMANAGEMENT AVERAGECOUNCIL DEPTH-TO-STATICESTABLISHED LEVELPURSUANT ACROSSTO THETHIS GROUNDWATERARTICLE BASINMAY FROMNOT: DROPPING BELOW A SET LEVEL.

6.1.

TOREQUIRE MAINTAINA GROUNDWATER PROGRAMSUSER IN THE GROUNDWATER BASIN THAT PROVIDE REASONABLE ACCESS TO AMETER SUPPLYANY OFWELLS WATERLOCATED TOIN MEETAN REASONABLEACTIVE COMMERCIALBASIN ANDMANAGEMENT BASICAREA. DOMESTIC NEEDS.

7.2.

TOREQUIRE INCREASEA THEGROUNDWATER TOTALUSER AMOUNTTO OFREPORT NATURAL,THE INCIDENTALUSER'S ORGROUNDWATER ARTIFICIALUSE RECHARGEBEYOND IN THE GROUNDWATERREQUIREMENTS BASINPRESCRIBED EACH YEAR, FROM A SET LEVEL IN ACRE-FEETSUBSECTION PERD YEAROF TOTHIS ASECTION. HIGHER SET LEVEL IN ACRE-FEET PER YEAR, BY A SET YEAR AS DETERMINED BY THE COUNCIL.

8.D.

TOA INCREASEGROUNDWATER THEUSER TOTALSHALL AMOUNTANNUALLY OFREPORT WATERTO REUSE IN THE GROUNDWATERACTIVE BASIN EACHMANAGEMENT YEAR,COUNCIL FROMAN AESTIMATE SETOF LEVELGROUNDWATER INUSE ACRE-FEETBASED PERON YEARPUMPING TOCAPACITY AAND HIGHERTHE SETPOWER LEVELUSAGE INOF ACRE-FEETTHE PERUSER'S YEAR,GROUNDWATER BYPUMPING AOR SETOTHER YEARSIMILARLY ASRELIABLE DETERMINEDAND BYACCESSIBLE THEMETHODS. COUNCIL.

FOR THE PURPOSES OF THIS PARAGRAPH, A USER MAY VOLUNTARILY ACQUIRE AND REPORT METERING DATA.

E.

FOR THE PURPOSES OF THIS ARTICLE, ANY DATA OR ESTIMATE A PERSON SUBMITS REGARDING A PERSON'S GROUNDWATER USE IS NOT A PUBLIC RECORD UNDER TITLE 39, CHAPTER 1 AND MAY NOT BE DISCLOSED UNLESS THE GROUNDWATER USER CONSENTS TO DISCLOSURE.

F.

AN ACTIVE BASIN MANAGEMENT AREA AND ACTIVE BASIN MANAGEMENT COUNCIL TERMINATE TEN YEARS AFTER THE DATE ON WHICH THE ACTIVE BASIN MANAGEMENT AREA WAS ESTABLISHED UNLESS CONTINUED PURSUANT TO THIS SECTION.

EXCEPT AS PROVIDED IN SUBSECTION J OF THIS SECTION, IF THE DIRECTOR DETERMINES EITHER THAT THE ACTIVE BASIN MANAGEMENT AREA NO LONGER MEETS THE CONDITIONS PRESCRIBED IN SECTION 45-445, SUBSECTION D PURSUANT TO SUBSECTION G OF THIS SECTION OR, PURSUANT TO THE COST BENEFIT ANALYSIS, THAT THE COST OUTWEIGHS THE PROJECTED BENEFITS, THE ACTIVE BASIN - 16 - S.B.

1221 MANAGEMENT AREA SHALL IMMEDIATELY TERMINATE.

A PARTY MAY SEEK JUDICIAL REVIEW OF THE DIRECTOR'S DETERMINATIONS PURSUANT TO TITLE 12, CHAPTER 7, ARTICLE 6.

G.

TWENTY-FOUR MONTHS BEFORE THE EXPECTED TERMINATION OF AN ACTIVE BASIN MANAGEMENT AREA, THE DIRECTOR SHALL:

1.

DETERMINE IF THE ACTIVE BASIN MANAGEMENT AREA CONTINUES TO MEET THE CONDITIONS PRESCRIBED IN SECTION 45-445, SUBSECTION D.

2.

DETERMINE IF THE PROBABLE BENEFITS TO THE LOCAL ECONOMY RESULTING FROM THE PROPOSED WATER MANAGEMENT AUTHORIZED BY THIS ARTICLE OUTWEIGH THE COSTS.

FOR THE PURPOSES OF THIS PARAGRAPH, THE DIRECTOR MAY HIRE AN OUTSIDE CONTRACTOR TO CONDUCT THE COST BENEFIT ANALYSIS.

3.

PRESENT THE DIRECTOR'S DETERMINATIONS TO THE ACTIVE BASIN MANAGEMENT COUNCIL.

TWELVE MONTHS BEFORE THE TERMINATION OF AN ACTIVE BASIN MANAGEMENT AREA THE REGISTERED VOTERS OF THE ACTIVE BASIN MANAGEMENT AREA MAY VOTE TO CONTINUE THE ACTIVE BASIN MANAGEMENT AREA AND ACTIVE BASIN MANAGEMENT COUNCIL IF THE GROUNDWATER BASIN OR SUBBASIN CONTINUES TO MEET THE CONDITIONS PRESCRIBED IN SECTION 45-445, SUBSECTION D AND THE COST BENEFIT ANALYSIS CONDUCTED PURSUANT TO PARAGRAPH 2 OF THIS SUBSECTION INDICATES THE BENEFITS OF MANAGEMENT OUTWEIGH THE RISKS.

AN ACTIVE BASIN MANAGEMENT COUNCIL MAY ORDER THE COUNTY RECORDERS WHERE THE ACTIVE BASIN MANAGEMENT AREA IS LOCATED TO HOLD AN ELECTION ASKING IF THE ACTIVE BASIN MANAGEMENT AREA SHOULD BE CONTINUED AND CALLING FOR THE ELECTION OF THE ELECTED MEMBERS OF AN ACTIVE BASIN MANAGEMENT COUNCIL.

H.

AN ELECTION TO CONTINUE AN ACTIVE BASIN MANAGEMENT AREA SHALL BE CONDUCTED AS PRESCRIBED IN TITLE 16, CHAPTER 4, ARTICLE 8.1, EXCEPT THAT THE ELECTION SHALL INCLUDE ONLY REGISTERED VOTERS WHO RESIDE INSIDE THE BOUNDARIES OF THE PROPOSED ACTIVE BASIN MANAGEMENT AREA AND WHO RECEIVE THEIR DRINKING WATER FROM THE BASIN OR SUBBASIN AS ELIGIBLE VOTERS.

CANDIDATES FOR AN ACTIVE BASIN MANAGEMENT COUNCIL SHALL COMPLY WITH SECTION 45-446.

I.

IF AN ACTIVE BASIN MANAGEMENT AREA IS NOT CONTINUED OR TERMINATES, THE ACTIVE BASIN MANAGEMENT AREA REVERTS TO A BASIN MANAGEMENT AREA AS PRESCRIBED IN ARTICLE 3.1 OF THIS CHAPTER AND ANY MANAGEMENT PLAN ADOPTED BY THE TERMINATED ACTIVE BASIN MANAGEMENT COUNCIL IS UNENFORCEABLE.

A WATER USER SHALL HAVE THE SAME CERTIFICATED GROUNDWATER RIGHT GUARANTEED TO THE WATER USER BEFORE THE FORMATION OF THE ACTIVE BASIN MANAGEMENT AREA.

J.

AN ACTIVE BASIN MANAGEMENT AREA THAT WAS ORIGINALLY DESIGNATED AS A BASIN MANAGEMENT AREA PURSUANT TO SECTION 45-445, SUBSECTION H OR I MAY NOT TERMINATE ON THE GROUNDS THAT THE BASIN NO LONGER MEETS THE CONDITIONS PRESCRIBED BY SECTION 45-445, SUBSECTION D.

1221 Sec.45-446.04.

Active basin management area;

active management area;

prohibition THE DIRECTOR OR VOTERS OF AN ACTIVE BASIN MANAGEMENT AREA MAY NOT DESIGNATE AN ACTIVE BASIN MANAGEMENT AREA AS AN ACTIVE MANAGEMENT AREA OR AS AN IRRIGATION NON-EXPANSION AREA.

45-446.05.

Preemption;

groundwater transportation THIS ARTICLE DOES NOT PREEMPT THE TRANSPORTATION OF GROUNDWATER PURSUANT TO ARTICLES 8 AND 8.1 OF THIS CHAPTER.

Sec.

(c) AAN ACTIVE BASIN MANAGEMENT COUNCIL ESTABLISHED PURSUANT TO TITLE 45, CHAPTER 2, ARTICLE 3.1.3.2.

EmergencyDepartment Thisof actwater isresources; an emergency measure that is necessary to preserve the public peace, health or safety and is operative immediately as provided by law.

-use 18of -monies;

appropriation;

grants;

exemption A.

The department of water resources shall use monies appropriated in the statewide water resources planning line item pursuant to Laws 2023, chapter 133, section 97 only to fund water conservation measures in a basin management area established pursuant to title 45, chapter 2, article 3.1, Arizona Revised Statutes, as added by this act.

B.

The sum of $40,000,000 is appropriated from the monies allocated to this state from the American rescue plan act of 2021 (P.L.

117-2) in fiscal year 2024-2025 to the department of water resources to fund water conservation, measures in a basin management area established pursuant to title 45, chapter 2, article 3.1, Arizona Revised Statutes, as added by this act.

- 18 - S.B.

1221 C.

A water user in a basin management area established pursuant to title 45, chapter 2, article 3.1, Arizona Revised Statutes, as added by this act, may apply for a grant of not more than fifty percent of the costs of the water user's water conservation measure.

The department of water resources shall award monies allocated pursuant to this section equitably to all classes of water users in a basin management area.

D.

The appropriation made in subsection B of this section and the amount appropriated for the statewide water resources planning line item in fiscal year 2023-2024 pursuant to Laws 2023, chapter 133, section 97 are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

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