Strike everything after the enacting
clause and insert:
"Section 1. Section
45-2244, Arizona Revised Statutes, is amended to read:
START_STATUTE45-2244. Acquisition and disposition of initial
quantity of water
A. The authority, acting through its board, shall
apportion the rights to the delivery of the first eighteen thousand five
hundred acre-feet per year of Colorado river water that it obtains as follows:
1. The right to the delivery of fifteen eighteen
thousand five hundred acre-feet
per year of Colorado river water shall be apportioned by subcontract and made
available to authority members for municipal uses.
2. The right
to the delivery of three thousand five hundred acre-feet per year of Colorado river water shall be apportioned by subcontract and made available for industrial
uses.
3. 2. Notwithstanding
the apportionment to municipal and
industrial uses as prescribed by paragraphs paragraph 1 and 2 of this subsection, Colorado river water
may be made available by the authority for industrial, agricultural or
miscellaneous uses as prescribed by subsection F E
of this section until that water is needed for municipal or industrial uses.
B. The authority, acting through its board, shall
make available Colorado river water that is apportioned for municipal uses as
prescribed by subsection A, paragraph 1 of this section to authority members
through subcontracts between the authority and the authority member for the
sale and delivery of Colorado river water. The term of these
subcontracts may be coextensive with the term of the contract with the United States pursuant to which the authority obtains the Colorado river water or the duration of
the subcontracts may be for a lesser term. The rate charged for the
Colorado river water made available to the authority members for municipal uses
may be fixed for all or part of the subcontract term but shall be established
by subcontract to permit the authority member to provide the water to its
customers at a reasonable cost as determined by the authority in the exercise
of its discretion. Any subcontract may require the authority member
to pay water supply fees or to assess and share the cost of water supply fees
with the authority. Water supply fees include standby or holding
charges, development impact fees, connection fees, extraction fees, user fees,
administrative fees, other fees or charges that the subcontract requires and
the member collects for new uses to be served with the water made available
pursuant to subcontract or any other fees that the authority determines to be
necessary or prudent to fund the acquisition of replacement supplies of water.
Any such fees assessed or collected by the authority member shall be remitted
to the authority and deposited in the funds of the authority as provided in
this chapter.
C. The Colorado river water apportioned for
municipal uses under subsection B of this section shall be served by the
authority member within the service area established for the authority member
in any water service contract between the authority member and the United States. The Colorado river water so apportioned may not be served to any
single industrial user for manufacturing purposes, processing purposes or
thermoelectric power generation, with a demand greater than two hundred fifty
acre-feet per year until the end of the seventh year after the authority is
formed.
D. If Colorado river water that is made available to
authority members for municipal uses pursuant to subsection B of this section
is not subcontracted for by authority members within one year of the
authority's formation pursuant to section 45-2202, subsection C, the Colorado
river water may be made available by subcontract to other municipal water
providers in the county in which the authority is formed on terms consistent
with this section.
E. The
authority shall make Colorado river water that is apportioned for industrial
uses as provided in subsection A, paragraph 2 of this section available to
applicants through subcontracts for the sale and delivery of that
water. The term of the subcontracts shall be set by the authority
and may be coextensive with the term of the contract with the United States pursuant to which the authority obtains the Colorado river water. The rate
charged for Colorado river water made available to applicants for industrial
uses may be established by subcontract or by tariff set by the
authority. The rate charged may vary or may be fixed for all or a
part of the subcontract term. The initial rate charged per acre-foot
shall not be less than the rate charged per acre-foot by a multi-county water
conservation district, or its successors, for the capital and fixed operation
and maintenance charges associated with an acre-foot of central Arizona project
municipal and industrial water in the year in which the authority subcontracts
for the sale and delivery of the water.
F. E. Notwithstanding
the apportionment to municipal and
industrial uses as provided in subsection A, paragraphs paragraph 1 and 2 of this section, the authority may
subcontract for the delivery of Colorado river water for industrial,
agricultural or miscellaneous uses for which subcontracts have not been
executed as provided in subsections
subsection B and E of this section or for
which subcontracts have been executed as provided in subsections subsection B and E of this section if there is no current
demand for the water by the subcontractors. A subcontract for the
delivery of Colorado river water for an industrial, agricultural or
miscellaneous use under this subsection shall not be for a term of more than
five years. A subcontract under this subsection may serve an
existing use of Colorado river water which was not supported by a contract for
the delivery of Colorado river water on January 1, 1994, or a new use of Colorado river water initiated after January 1, 1994. A subcontract under this
subsection shall be subject to the approval of subcontractors with subcontracts
entered into pursuant to subsection B of this section. Any
subcontract under this subsection shall impose the charge per acre-foot of Colorado river water delivered that the authority in its discretion determines to be
adequate. Any subcontract under this subsection may be renewed or extended
successively for the same or a shorter period of time. For the purposes of this
subsection, "miscellaneous use" means a use of water for recreational
or fish and wildlife purposes.
G. F. The authority may
accept transfers of the Colorado river water entitlements of its members and
may contract with the United States for the delivery to the authority of the
initial eighteen thousand five hundred acre‑feet a year of Colorado river water obtained by the authority. The authority may contract with
the United States for the delivery of any additional amounts of water obtained
by the authority from its members and may contract as provided in section
45-2245.
H. G. Any subcontract
under this section shall require the Colorado river water delivered pursuant to
the subcontract to be used in the county in which the authority is formed. END_STATUTE
Sec. 2. Section 45-2281, Arizona Revised
Statutes, is amended to read:
START_STATUTE45-2281. Establishment of funds; allocation of
authority revenues; member dues
A. On the authority's formation, a grant fund, a
water acquisition fund and an operating fund are established. The
authority's revenues shall be deposited in and disbursed from the funds as
provided by this section. Revenues deposited in the grant fund may be used to
make grants to authority members for water acquisition, water conservation and
water reuse. Revenues deposited in the water acquisition fund may be
used to acquire water pursuant to section 45-2245. Revenues
deposited in the operating fund shall be used as provided in subsection E of
this section.
B. Except as provided in subsection D of this
section, all revenues of the authority shall be deposited in the grant fund
except the following:
1. Dues paid by authority members, which shall be deposited in the operating
fund.
2. Ten per cent of all amounts paid by municipal
subcontractors under subcontracts entered into as provided in section 45-2244,
subsection B, which may
be deposited in the operating fund or the water acquisition fund as determined
by the board.
3. Fifty per cent of all amounts paid by
subcontractors of the authority pursuant to subcontracts entered into as
provided in section 45‑2244, subsection E or F.
4. That portion of the monies earned by the
authority under subcontracts entered into pursuant to section 45-2245,
subsection H that is equal to the cost to the authority of obtaining the water
transferred under those subcontracts and, after payment of seven million five
hundred thousand dollars as adjusted pursuant to subsection C of this section,
all of the monies earned from those subcontracts.
C. Except as provided in subsection B of this
section, all of the authority's revenues shall be deposited in the grant fund
until the full amount of the initial grant and any additional amounts required
in a grant agreement between the authority and the member that receives the
grant have been disbursed from the grant fund as provided in this
subsection. The initial grant from the grant fund shall be made to
the authority member that transferred, or caused to be transferred, to the
authority the right to the delivery of eighteen thousand five hundred acre-feet
per year of Colorado river water in connection with the authority's
formation. The amount of the grant to that member shall equal seven
million five hundred thousand dollars plus any additional monies that the
authority and the member agree to in a grant agreement between the authority
and the member, which amount shall be adjusted annually from the date of the
authority's formation either for inflation or as may otherwise be provided in
the subcontracts of the authority or in the grant agreement, until the amount
of the initial grant required by this subsection and any additional amounts
required by the grant agreement are paid in full. The initial grant
may be disbursed in a lump sum or in partial payments in accordance with the
request of the authority member that is entitled to receive the grant and as
revenues become available to the authority and are deposited in the grant
fund. The authority member that is entitled to receive the grant may
request that disbursements be made whenever revenues have been deposited in the
grant fund. Notwithstanding section 45‑2282, the authority
shall promptly disburse those revenues that are deposited in the fund on
receipt of a request from that member.
D. After the disbursement of the full amount of the
initial grant and any additional amounts required in a grant agreement of the
authority from the grant fund as provided in subsection C of this section, the
authority's revenues, except dues paid by authority members, may be deposited
in the grant fund, water acquisition fund or operating fund as determined by
the board.
E. The authority shall establish a schedule of dues
that is sufficient, when aggregated with other monies available for the payment
of administrative expenses, to pay the estimated administrative expenses of the
authority. Dues shall be assessed and allocated equitably among authority
members as determined by the board. All dues received by the
authority shall be deposited in the operating fund. Expenditures may
be made from the operating fund to pay:
1. The authority's administrative expenses.
2. The costs of the authority's formation including
an equitable portion of the costs of the municipal corporation that transferred
rights to the delivery of Colorado river water as provided in section 45-2202.
3. The costs associated with holding any entitlement
to water acquired by the authority.
4. Subject to subsection C of this section, the costs
incurred by the authority in the operation of any project undertaken by the
authority pursuant to this chapter.
5. Amounts payable to
the United States annually for the right to hold and use the eighteen thousand
five hundred acre-feet per year of Colorado river water acquired by the
authority pursuant to section 45-2202, subsection C, which amounts may include any tax, fee or
excise imposed upon the sale or transfer of the water.
F. Any authority member that is in arrears in the
payment of its dues for more than sixty days shall lose the right of its
appointed director to vote on all authority matters until all of the dues that
are in arrears are fully paid. An authority member whose dues are in
arrears does not lose membership in the authority because of the
arrearage." END_STATUTE
Amend title to conform
