02-24 13:44 H.B. 546
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Water Infrastructure Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Thomas W. Peterson
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill addresses storm water and storm water's effects on the Great Salt Lake.
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Highlighted Provisions:
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This bill:
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▸ defines terms;
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▸ creates the Storm Water Improvements Fund, including providing for loans to political
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subdivisions;
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▸ requires a study on the management of storm water in the Great Salt Lake basin;
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▸ requires reporting on the study;
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▸ modifies references to revolving loan funds; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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63A-3-205, as last amended by Laws of Utah 2022, Chapters 100, 451
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63B-1b-102, as last amended by Laws of Utah 2022, Chapters 100, 451
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63C-25-101, as last amended by Laws of Utah 2024, Chapter 419
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ENACTS:
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19-5-108.7, Utah Code Annotated 1953
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 19-5-108.7 is enacted to read:
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19-5-108.7 . Storm water study and funding.
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(1) As used in this section:
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(a) "Fund" means the Storm Water Improvements Fund created by this section.
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(b) "Great Salt Lake basin" means the area within:
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(i) the surveyed meander line of the Great Salt Lake;
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(ii) the drainage areas of the Bear River or the Bear River's tributaries;
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(iii) the drainage areas of Bear Lake or Bear Lake's tributaries;
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(iv) the drainage areas of the Weber River or the Weber River's tributaries;
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(v) the drainage areas of the Jordan River or the Jordan River's tributaries;
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(vi) the drainage areas of Utah Lake or Utah Lake's tributaries;
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(vii) other water drainages lying between the Bear River and the Jordan River that are
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tributary to the Great Salt Lake and not included in the drainage areas described in
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Subsections (1)(b)(ii) through (vi); and
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(viii) the drainage area of Tooele Valley.
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(c) "Low impact development" means the same as that term is defined in Section
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19-5-108.5.
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(d) "Political subdivision" means a county, city, town, improvement district, water
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conservancy district, special service district, drainage district, metropolitan water
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district, irrigation district, separate legal or administrative entity created under Title
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11, Chapter 13, Interlocal Cooperation Act, or any other entity constituting a political
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subdivision under the laws of this state.
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(e) "Storm water" means the same as that term is defined in Section 19-5-108.5.
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(2)(a) There is created an enterprise fund called the "Storm Water Improvements Fund."
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(b) The fund consists of:
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(i) money appropriated or otherwise made available to the fund by the Legislature;
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(ii) money received for the repayment of loans made by the board under this section;
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and
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(iii) interest or earnings under Subsection (2)(c).
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(c) The state treasurer shall:
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(i) invest the money in the fund in accordance with Title 51, Chapter 7, State Money
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Management Act; and
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(ii) deposit the interest or other earnings derived from those investments into the fund.
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(d) The money in the fund is available for loans to political subdivisions, administrative
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costs, or other purposes of this section to the extent the money is appropriated by the
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Legislature for that purpose.
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(e) The board may, in accordance with this section, loan money available in the fund to a
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political subdivision in the Great Salt Lake basin to be used for:
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(i) upgrading storm water infrastructure, including to:
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(A) maintain or improve flood control;
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(B) protect water quality; and
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(C) prevent erosion; or
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(ii) replacing low impact development with alternate forms of storm water
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infrastructure while maintaining water quality.
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(f) A political subdivision may apply to the board for a loan under this section to:
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(i) meet the purposes described in Subsection (2)(e); and
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(ii) support availability of water being distributed to the Great Salt Lake.
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(g) A loan made under this section shall:
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(i) have a fixed annual interest rate below municipal bond market rates based on
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policies developed by the board;
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(ii) have a term no longer than 30 years; and
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(iii) comply with rules made by the board under Subsection (2)(h).
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(h) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
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board shall make rules establishing:
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(i) the form, content, and procedure for a loan application;
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(ii) criteria and procedures for prioritizing a loan application;
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(iii) procedures for making a loan;
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(iv) procedures for administering and ensuring repayment of a loan, including late
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payment penalties; and
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(v) procedures for recovering on a defaulted loan.
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(3)(a) The division shall study the management of storm water in the Great Salt Lake
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basin.
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(b) The study conducted under this Subsection (3) shall include examination of:
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(i) the water quality relationship to low impact development;
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(ii) the feasibility of regionalized solutions;
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(iii) the water quantity advantages of storm water projects that are not low impact
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development;
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(iv) how to maximize the amount of storm water that reaches the Great Salt Lake;
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(v) funding needs;
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(vi) priorities for awarding money;
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(vii) subject to Subsection (3)(c), water supply benefits; and
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(viii) coordination with utilities.
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(c) The division shall coordinate with the Division of Water Resources in examining
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water supply benefits.
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(d) The division shall report the findings of the study to the Legislative Water
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Development Commission by no later than the 2025 November interim meetings of
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the Legislature.
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Section 2. Section 63A-3-205 is amended to read:
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63A-3-205 . Revolving loan funds -- Standards and procedures.
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(1) As used in this section, "revolving loan fund" means:
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(a) the Water Resources Conservation and Development Fund, created in Section
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73-10-24;
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(b) the Water Resources Construction Fund, created in Section 73-10-8;
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(c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
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(d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels
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and Emission Reduction Technology Program Act;
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(e) the Water Development Security Fund and its subaccounts, created in Section
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73-10c-5;
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(f) the Agriculture Resource Development Fund, created in Section 4-18-106;
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(g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
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(h) the Permanent Community Impact Fund, created in Section 35A-8-303;
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(i) the Petroleum Storage Tank Fund, created in Section 19-6-409;
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(j) the Uintah Basin Revitalization Fund, created in Section 35A-8-1602;
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(k) the Navajo Revitalization Fund, created in Section 35A-8-1704; [and]
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(l) the Energy Efficiency Fund, created in Section 11-45-201[.] ; and
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(m) the Storm Water Improvements Fund, created in Section 19-5-108.7.
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(2) The division shall for each revolving loan fund make rules establishing standards and
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procedures governing:
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(a) payment schedules and due dates;
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(b) interest rate effective dates;
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(c) loan documentation requirements; and
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(d) interest rate calculation requirements.
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Section 3. Section 63B-1b-102 is amended to read:
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63B-1b-102 . Definitions.
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As used in this chapter:
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(1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
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representing loans or grants made by an authorizing agency.
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(2) "Authorized official" means the state treasurer or other person authorized by a bond
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document to perform the required action.
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(3) "Authorizing agency" means the board, person, or unit with legal responsibility for
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administering and managing revolving loan funds.
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(4) "Bond document" means:
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(a) a resolution of the commission; or
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(b) an indenture or other similar document authorized by the commission that authorizes
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and secures outstanding revenue bonds from time to time.
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(5) "Commission" means the State Bonding Commission, created in Section 63B-1-201.
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(6) "Revenue bonds" means any special fund revenue bonds issued under this chapter.
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(7) "Revolving Loan Funds" means:
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(a) the Water Resources Conservation and Development Fund, created in Section
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73-10-24;
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(b) the Water Resources Construction Fund, created in Section 73-10-8;
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(c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
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(d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels
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and Emission Reduction Technology Program Act;
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(e) the Water Development Security Fund and its subaccounts, created in Section
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73-10c-5;
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(f) the Agriculture Resource Development Fund, created in Section 4-18-106;
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(g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
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(h) the Permanent Community Impact Fund, created in Section 35A-8-303;
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(i) the Petroleum Storage Tank Fund, created in Section 19-6-409; [and]
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(j) the State Infrastructure Bank Fund, created in Section 72-2-202[.] ; and
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(k) the Storm Water Improvements Fund, created in Section 19-5-108.7.
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Section 4. Section 63C-25-101 is amended to read:
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63C-25-101 . Definitions.
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As used in this chapter:
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(1) "Authority" means the same as that term is defined in Section 63B-1-303.
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(2) "Bond" means the same as that term is defined in Section 63B-1-101.
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(3)(a) "Bonding government entity" means the state or any entity that is authorized to
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issue bonds under any provision of state law.
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(b) "Bonding government entity" includes:
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(i) a bonding political subdivision; and
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(ii) a public infrastructure district that is authorized to issue bonds either directly, or
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through the authority of a bonding political subdivision or other governmental
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entity.
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(4) "Bonding political subdivision" means:
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(a) the Utah Inland Port Authority, created in Section 11-58-201;
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(b) the Military Installation Development Authority, created in Section 63H-1-201;
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(c) the Point of the Mountain State Land Authority, created in Section 11-59-201;
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(d) the Utah Lake Authority, created in Section 11-65-201;
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(e) the State Fair Park Authority, created in Section 11-68-201; or
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(f) the Utah Fairpark Area Investment and Restoration District, created in Section
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11-70-201.
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(5) "Commission" means the State Finance Review Commission created in Section
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63C-25-201.
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(6) "Concessionaire" means a person who:
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(a) operates, finances, maintains, or constructs a government facility under a contract
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with a bonding political subdivision; and
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(b) is not a bonding government entity.
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(7) "Concessionaire contract" means a contract:
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(a) between a bonding government entity and a concessionaire for the operation, finance,
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maintenance, or construction of a government facility;
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(b) that authorizes the concessionaire to operate the government facility for a term of
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five years or longer, including any extension of the contract; and
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(c) in which all or some of the annual source of payment to the concessionaire comes
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from state funds provided to the bonding government entity.
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(8) "Creating entity" means the same as that term is defined in Section 17D-4-102.
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(9) "Government facility" means infrastructure, improvements, or a building that:
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(a) costs more than $5,000,000 to construct; and
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(b) has a useful life greater than five years.
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(10) "Large public transit district" means the same as that term is defined in Section
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17B-2a-802.
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(11) "Loan entity" means the board, person, unit, or agency with legal responsibility for
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making a loan from a revolving loan fund.
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(12) "Obligation" means the same as that term is defined in Section 63B-1-303.
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(13) "Parameters resolution" means a resolution of a bonding government entity that sets
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forth for proposed bonds:
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(a) the maximum:
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(i) amount of bonds;
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(ii) term; and
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(iii) interest rate; and
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(b) the expected security for the bonds.
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(14) "Public infrastructure district" means a public infrastructure district created under Title
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17D, Chapter 4, Public Infrastructure District Act.
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(15) "Revolving loan fund" means:
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(a) the Water Resources Conservation and Development Fund, created in Section
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73-10-24;
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(b) the Water Resources Construction Fund, created in Section 73-10-8;
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(c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22;
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(d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels
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and Emission Reduction Technology Program Act;
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(e) the Water Development Security Fund and its subaccounts, created in Section
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73-10c-5;
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(f) the Agriculture Resource Development Fund, created in Section 4-18-106;
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(g) the Utah Rural Rehabilitation Fund, created in Section 4-19-105;
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(h) the Permanent Community Impact Fund, created in Section 35A-8-303;
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(i) the Petroleum Storage Tank Fund, created in Section 19-6-409;
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(j) the School Building Revolving Account, created in Section 53F-9-206;
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(k) the State Infrastructure Bank Fund, created in Section 72-2-202;
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(l) the Uintah Basin Revitalization Fund, created in Section 35A-8-1602;
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(m) the Navajo Revitalization Fund, created in Section 35A-8-1704;
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(n) the Energy Efficiency Fund, created in Section 11-45-201;
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(o) the Brownfields Fund, created in Section 19-8-120;
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(p) any of the enterprise revolving loan funds created in Section 63A-3-402[: and] ;
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(q) the Storm Water Improvements Fund, created in Section 19-5-108.7; and
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[(q)] (r) any other revolving loan fund created in statute where the borrower from the
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revolving loan fund is a public non-profit entity or political subdivision, including a
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fund listed in Section 63A-3-205, from which a loan entity is authorized to make a
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loan.
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(16)(a) "State funds" means an appropriation by the Legislature identified as coming
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from the General Fund or Education Fund.
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(b) "State funds" does not include:
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(i) a revolving loan fund; or
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(ii) revenues received by a bonding political subdivision from:
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(A) a tax levied by the bonding political subdivision;
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(B) a fee assessed by the bonding political subdivision; or
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(C) operation of the bonding political subdivision's government facility.
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Section 5. Effective Date.
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This bill takes effect on May 7, 2025.
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