CHAPTER 71
HOUSE BILL No. 2133
An Act amending the multipurpose small lakes program act; amending K.S.A. 82a-1602,
82a-1603, 82a-1604, 82a-1605 and 82a-1606 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 82a-1602 is hereby amended to read as follows:
82a-1602. In order to provide public water supply storage and water re-
lated recreational facilities in the state there is hereby established a mul-
tipurpose small lakes program. The program shall be administered by the
state conservation commission. Except as otherwise provided by this act,
the state conservation commission shall adopt all rules and regulations
necessary to implement the provisions of this act.

      Sec.  2. K.S.A. 82a-1603 is hereby amended to read as follows: 82a-
1603. When used in this act:

      (a) ``Chief engineer'' means the chief engineer of the division of water
resources of the state board of agriculture.

      (b) ``Class I funded project'' means a proposed new project or ren-
ovation of an existing project located within the boundaries of an organ-
ized watershed district which is receiving or is eligible to receive financial
participation from the state conservation commission for the flood control
storage portion of the project.

      (c) ``Class II funded project'' means a proposed new project or ren-
ovation of an existing project which is receiving or is eligible to receive
financial participation from the federal government.

      (d) ``Class III funded project'' means a proposed new project or ren-
ovation of an existing project located outside the boundaries of an organ-
ized watershed district which is not receiving or is not eligible to receive
financial participation from the state conservation commission or the fed-
eral government except as provided in K.S.A. 82a-1606, and amendments
thereto.

      (e) ``Flood control storage'' means storage space in reservoirs to hold
flood waters.

      (f) ``Future use public water supply storage'' means storage space
which the Kansas water office determines will be needed within the next
20 years for use by public water supply users in an area but for which
there is no current sponsor.

      (f) (g) ``General plan'' means a preliminary engineering report de-
scribing the characteristics of the project area, the nature and methods
of dealing with the soil and water problems within the project area, and
the projects proposed to be undertaken by the sponsor within the project
area. Such plan shall include maps, descriptions and other data as may
be necessary for the location, identification and establishment of the char-
acter of the work to be undertaken; a cost-benefit analysis of alternatives
to the project, including but not limited to, nonstructural flood control
options and water conservation and reuse to reduce need for new water
supply storage; and any other data and information as the chief engineer
may require.

      (g) (h) ``Land right'' means real property as that term is defined by
the laws of the state of Kansas and all rights thereto and interest therein
and shall include any road, highway, bridge, street, easement or other
right-of-way thereon.

      (h) (i) ``Multipurpose small lake project'' means a dam and lake con-
taining (1) flood control storage and (2) either public water supply storage
or recreation features or both.

      (i) (j) ``Public water supply'' means a water supply for municipal, in-
dustrial or domestic use.

      (j) (k) ``Public water supply storage'' means storage of water for mu-
nicipal, industrial or domestic use.

      (k) (l) ``Recreation feature'' means water storage and related facilities
for activities such as swimming, fishing, boating, camping or other related
activities.

      (m) ``Renovation'' means repair or restoration of an existing lake
which contains water storage space for use as a public water supply and
which has either recreational purposes or flood control purposes, or both.

      (l) (n) ``Sponsor'' means: (1) Any political subdivision of the state
which has the power of taxation and the right of eminent domain; (2) any
public wholesale water supply district; or (3) any rural water district.

      (m) (o) ``Water user'' means any city, rural water district, wholesale
water district or any other political subdivision of the state which is in the
business of furnishing municipal or industrial water to the public.

      Sec.  3. K.S.A. 82a-1604 is hereby amended to read as follows: 82a-
1604. (a) The state may participate with a sponsor in the development,
construction or renovation of a class I multipurpose small lake project if
the sponsor has a general plan which has been submitted to and approved
by the chief engineer in the manner provided by K.S.A. 24-1213 and 24-
1214, and amendments thereto. If the Kansas water office determines
that additional public water supply storage shall be needed in that area
of the state within 20 years from the time such project is to be completed
and a water user is not available to finance public water supply storage,
the state may include future use public water supply storage in the project.
The Kansas water office shall apply for a water appropriation right suf-
ficient to insure a dependable yield from the public water supply storage.
The Kansas water office shall be exempt from all applicable fees imposed
pursuant to K.S.A. 82a-701 et seq., and amendments thereto, for such
applications. The Kansas water office shall have authority to adopt rules
and regulations relative to the inclusion of public water supply storage in
proposed projects under this act and the disposition of state-owned water
rights and associated public water supply storage space in such projects.

      (b) The sponsor of such class I project shall be responsible for ac-
quiring land rights and for the costs of operation and maintenance of such
project. The sponsor participating in the construction of recreation fea-
tures of a project shall pay for that portion of the project attributable to
recreation. The state may provide up to 50% of the engineering and
construction costs and up to 50% of the costs of land rights associated
with recreation features. Subject to the provisions of subsection (a) sub-
sections (a) and (c), the state may pay up to 100% of the engineering and
construction costs of flood control and public water supply storage. All
other costs of such project, including land, construction, operation and
maintenance shall be paid by the sponsor.

      (c) The state shall not participate in the costs of public water supply
storage in a renovation project unless the Kansas water office determines
that renovation is the most cost effective alternative for such storage. The
state shall be authorized to pay only up to 50% of the engineering and
construction costs of public water supply storage in such a renovation
project.

      (d) The Kansas water office may recover the state's costs incurred in
providing public water supply storage in such class I project, and interest
on such costs, by selling such storage and the associated water rights.
Interest on such costs shall be computed at a rate per annum which is
equal to the greater of: (1) The average rate of interest earned the past
calendar year on repurchase agreements of less than 30 days' duration
entered into by the pooled money investment board, less 5%; or (2) four
percent.

      Sec.  4. K.S.A. 82a-1605 is hereby amended to read as follows: 82a-
1605. (a) The state may participate with a sponsor in the development,
construction or renovation of a class II multipurpose small lake project if
the sponsor has a general plan which has been submitted to and approved
by the chief engineer in the manner provided by K.S.A. 24-1213 and 24-
1214, and amendments thereto. If the Kansas water office determines
that additional public water supply storage shall be needed in that area
of the state within 20 years from the time such project is to be completed
and a water user is not available to finance public water supply storage,
the state may include future use public water supply storage in the project.
The Kansas water office shall apply for a water appropriation right suf-
ficient to insure a dependable yield from public water supply storage. The
Kansas water office shall be exempt from all applicable fees imposed
pursuant to K.S.A. 82a-701 et seq., and amendments thereto, for such
applications. The Kansas water office shall have authority to adopt rules
and regulations relative to the inclusion of public water supply storage in
proposed projects under this act and the disposition of state-owned water
rights and associated public water supply storage space in such projects.

      (b) In a class II project, the state may assume initial financial obli-
gations for public water supply storage in watersheds by entering into
long-term contracts with the federal government. In order to provide
security to the federal government, the state may grant assignments of
water rights, either appropriation rights or water reservation rights; as-
signments of rights under existing or prospective water purchase con-
tracts; assignments, mortgages or other transfers of interests in real prop-
erty held by the state and devoted to the specific small lake project for
which security is sought; or may provide other security that is permissible
under state law and acceptable by the federal government. Instead of
contracting to repay costs under long-term contracts, the state may pay
all of the required costs of the public water supply storage in a lump sum.

      (c) The sponsor of such class II project shall be responsible for ac-
quiring land rights and for the costs of operation and maintenance of such
project. The sponsor participating in the construction of recreation fea-
tures of a project shall pay for that portion of the project attributable to
recreation. The state or federal government may provide up to 50% of
the engineering and construction costs and up to 50% of the costs of land
rights associated with recreation features. Subject to the provisions of
subsection (d), the state may pay up to 100% of the engineering and
construction costs of flood control and public water supply storage. All
other costs of such project, including land, construction, operation and
maintenance shall be paid by the sponsor.

      (d) The state shall not participate in the costs of public water supply
storage in a renovation project unless the Kansas water office determines
that renovation is the most cost effective alternative for such storage. The
state shall be authorized to pay only up to 50% of the engineering and
construction costs of public water supply storage in such a renovation
project.

      (d) (e) The Kansas water office may recover the state's costs incurred
in providing public water supply storage in such class II project, and
interest on such costs, by selling such storage and the associated water
rights. Interest on such costs shall be computed at a rate per annum which
is equal to the greater of: (1) The average rate of interest earned the past
calendar year on repurchase agreements of less than 30 days' duration
entered into by the pooled money investment board, less 5%; or (2) four
percent.

      Sec.  5. K.S.A. 82a-1606 is hereby amended to read as follows: 82a-
1606. (a) The state may participate with a sponsor in the development,
construction or renovation of a class III multipurpose small lake project
if the sponsor has a general plan which has been submitted to and ap-
proved by the chief engineer in the manner provided by K.S.A. 24-1213
and 24-1214, and amendments thereto. If public water supply storage is
included in the project, the sponsor of such class III project shall pay for
100% of the costs associated with the public water supply storage portion
of such project unless the Kansas water office determines that additional
public water supply storage shall be needed in that area of the state within
20 years from the time such project is to be completed and a sponsor is
not available to finance 100% of the costs associated with the public water
supply storage, the state may participate in the future use public water
supply storage costs of the project. If the state participates in the public
water supply storage costs, the Kansas water office shall apply for a water
appropriation right sufficient to insure a dependable yield from public
water supply storage. The Kansas water office shall be exempt from all
applicable fees imposed pursuant to K.S.A. 82a-701 et seq., and amend-
ments thereto, for such applications. The Kansas water office shall have
authority to adopt rules and regulations relative to the inclusion of public
water supply storage in proposed projects under this act and the dispo-
sition of state-owned water rights and associated public water supply
storage space in such projects.

      (b) The sponsor of such class III project shall be responsible for ac-
quiring land rights and for the costs of operation and maintenance of the
project. The sponsor participating in the construction of recreation fea-
tures of a project shall pay for that portion of the project attributable to
recreation. The state may provide up to 50% of the engineering and
construction costs and up to 50% of the costs of land rights associated
with recreation features. Subject to the provisions of subsection (c), the
state may pay up to 100% of the engineering and construction costs of
flood control storage and public water supply storage. All other costs of
such project, including land, construction, operation and maintenance,
shall be paid by the sponsor.

      (c) The state shall not participate in the costs of public water supply
storage in a renovation project unless the Kansas water office determines
that renovation is the most cost effective alternative for such storage. The
state shall be authorized to pay only up to 50% of the engineering and
construction costs of public water supply storage in such a renovation
project.

      (d) The Kansas water office may recover the state's costs incurred in
providing public water supply storage in such class III project, and inter-
est on such costs, by selling such storage and the associated water rights.
Interest on such costs shall be computed at a rate per annum which is
equal to the greater of: (1) The average rate of interest earned the past
calendar year on repurchase agreements of less than 30 days' duration
entered into by the pooled money investment board, less 5%; or (2) four
percent.

 Sec.  6. K.S.A. 82a-1602, 82a-1603, 82a-1604, 82a-1605 and 82a-1606
are hereby repealed.
 Sec.  7. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 3, 2001.
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