HB2643 - 452R - House Bill Summary

House of Representatives

HB 2643

water protection fund; surcharge.

Sponsor: Representative O'Halleran

X	Committee on Natural Resources and Agriculture
	Committee on Appropriations
	Caucus and COW
	Third Read	This bill as introduced contains *an Appropriation clause.*
	As Passed the House

HB 2643 amends the 2001 regular session budget to reinstate funding for the Arizona Water Protection Fund in FY 2002-2003.

History

In 1994, the Arizona legislature created the Arizona Water Protection Fund (Fund) administered by a 15-member Commission. The Fund provides grants for projects benefiting rivers and riparian habitat. Any individual or entity, state or federal agency or political subdivision of Arizona may submit an application for Fund grants; however, all projects must be located in Arizona and be consistent with state water law. The Fund is authorized to receive an amount equal to $5 million each fiscal year, consisting of Central Arizona Project (CAP) fees on out-of-state sales (fees) and state general fund appropriations. In any year that the fees do not generate $5 million, the state general fund is required to make up the difference (ARS §45-2112). The fees are generated from an interstate water banking agreement allowing Nevada and California to purchase and lease Colorado River Water and store it in the CAP system.

In 2001, the Legislature diverted the surcharges from fees from the Fund to the state general fund for FY 2001-2002 and FY 2002-2003. Also, the Fund’s FY 2001-2002 and FY 2002-2003 general fund appropriations were eliminated.

Provisions

· Amends the 2001 regular session budget to reinstate monies collected from the CAP fees in FY 2002-2003 to the Arizona Water Protection Fund.

· Requires monies collected from the CAP fees in FY 2002-2003 to be deposited in the Water Protection Fund during the fiscal year that they are received.

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· 45th Legislature