S 1 REGIONAL WATER SYSTEM RESILIENCY

Sen Peter Wirth

Actions: SPREF [1] SCONC/SJC-SCONC [4] DP-SJC [7] DNP-CS/DP [8] PASSED/S (33-0) [6] HAAWC-HAAWC [10] DP/a [14] fl/a- PASSED/H (46-22) [12] s/cncrd [17] SGND BY GOV (Mar. 13) Ch. 4.

Scheduled: Not Scheduled

 Senate Bill 1 (SB 1) enacts the Regional Water System Resiliency Act and authorizes the creation of regional utility authorities, It provides the powers and duties of authorities and their boards of directors, specifically authorizing the issuance of bonds; providing for the transfer of assets, liabilities including water rights. 

 Senate Bill 1 (SB 1) enacts the Regional Water System Resiliency Act (RWSRA) that authorizes the creation of regional utility authorities, a political subdivision of the state, composed of two or more entities. It establishes notification through resolution, the content of which SB 1 specifies, and requires a minimum of two public hearings. It establishes the process of incorporation, including the content of the articles of incorporation, filing requirements, and a required notice that the articles of incorporation are executed pursuant to the RWSRA. 
SB 1 creates filing requirements with different state and county entities to establish a service area or transfer a water right for each such authority. SB 1 specifically allows for transfer to the authority of all of these entities’ assets and liabilities with the exception of an entity's liabilities, fines or penalties incurred from a violation of applicable federal or state laws or any rules or regulations issued thereunder. 
SB 1 generally establishes that an authority may provide for water and wastewater services; road improvements for the protection of the authority's infrastructure; renewable energy projects; or
other projects that are integral to the operation and maintenance of the authority's facilities. It provides for permissive and mandatory regulatory powers. SB 1 stipulates that for connection to the authority’s infrastructure for wastewater services or for delivery of water owned or leased by the land grant or the Indian nation, tribe or pueblo in exchange for a right-of-way agreement with the authority. It creates a process to investigate non-compliance with regulatory requirements  by an authority. It exempts an authority from the jurisdiction of the Public Regulatory Commission or the provisions of the Public Utility Act.
SB 1 institutes provisions concerning an authority’s board of directors, including compliance with the Local Election Act and in accordance with the Election Code, terms of office, and disqualification of directors. It reaffirms that a board has all the powers, privileges and duties vested in the authority, and further delineates the board’s powers and duties including delegation of duties under certain circumstance. Its powers include both permissive and mandatory duties.
SB 1 allows for the transfer of assets and liabilities of specified governmental entities that provide water or sewer services. 

SB 1 would be effective 1 July 2023.
 

 3/6/23
The house of representatives amended CS/SB 1A HAAWC (CS/SB1AA Fl by changing mandatory duties of a regional water authority to discretionary duties.

2/17/23
The House Agriculture, Acequias and Water Resources Committee amended CS/SB 1 (CS/SB 1A HAAWC) by clarifying that when a founding or joining entity transfers a water right to an authority, that entity must file a change of ownership form with and apply to the state engineer for change in place of use of point of diversion. It makes a technical change.
 

 2/6/23
The Senate Judiciary Committee introduced a committee substitute for SB 1 (CS/SB 1 SJC) that enacts the Regional Water System Resiliency Act (RWSRA) that authorizes the creation of regional utility authorities, a political subdivision of the state, composed of two or more entities. It establishes notification through resolution, the content of which SB 1 specifies, and requires a minimum of two public hearings. It establishes the process of incorporation, including the content of the articles of incorporation, filing requirements, amendments to articles of incorporation, and a required notice that the articles of incorporation are executed pursuant to the RWSRA.  The articles become effective upon filing with the secretary of state. No corporate reports will be required. 
CS/SB 1 SJC creates filing requirements with different state and county entities to establish a service area or transfer a water right for each such authority. SB 1 specifically allows for transfer to the authority of all of these entities’ assets and liabilities. However prior to transferring compliance liability, there must be a compliance schedule developed and approved by the authority and relevant state or federal agencies.
 CS/SB 1 SJC generally establishes that an authority may provide for water and wastewater services; road improvements for the protection of the authority's infrastructure; renewable energy projects; or other projects that are integral to the operation and maintenance of the authority's facilities. It provides for permissive and mandatory regulatory powers. CS/SB 1 SJC stipulates that when a founding or joining entity transfers a water right to an authority, the authority shall file a change of ownership form with the state engineer and shall change the place of use or point of diversion of the transferred right. It creates a process to investigate non-compliance with regulatory requirements by an authority. It exempts an authority from the jurisdiction of the Public Regulatory Commission or the provisions of the Public Utility Act.
CS/SB 1 SJC institutes provisions concerning an authority’s board of directors, including compliance with the Local Election Act and with the Election Code, terms of office, and disqualification of directors. It reaffirms that a board has all the powers, privileges and duties vested in the authority, and further delineates the board’s powers and duties including delegation of duties under certain circumstance. Its powers include both permissive and mandatory duties. A member’s term is four years and the board must meet at least quarterly. It establishes a process for disqualifications of board members and for disconnection or shutoff of service. CS/SB 1 SJC authorizes a board to file a lawsuit to recover costs and damages from an unauthorized, illegal or delinquent connection. The Department of Finance and Administration approves the operating budget of each board.
CS/SB 1 SJC allows for the transfer of assets and liabilities of specified governmental entities that provide water or sewer services, including an authority created pursuant to this act.
CS/SB 1 SJC would be effective 1 July 2023.