[atlas:bill]

AN ACT Relating to metering or measuring, reporting requirements, and fees for the inventory and management of water rights; amending RCW 43.79A.040; adding new sections to chapter 90.03 RCW; creating a new section; repealing RCW 90.44.450; prescribing penalties; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that efforts to restore salmon runs and address the state's population growth make accurate inventories of water rights and water usage vitally important. The legislature further recognizes that improved inventories, accurate reporting, and a reliable funding source are necessary to ensure legal withdrawals and diversions of our shared and finite water resources. Therefore, it is the intent of the legislature to create mandatory metering or measuring, reporting, and funding obligations for water users and the department of ecology.

NEW SECTION. Sec. 2. (1) Beginning January 1, 2000, the department shall require that all claimed, certificated, or permitted withdrawals or diversions be metered or have other approved means of measuring maximum instantaneous and total annual water withdrawal or diversion.

(2) Beginning January 1, 2002, the department shall require that all withdrawals or diversions exempt from water right permitting requirements serving two or more residences shall be metered or have other approved means of measuring maximum instantaneous and total annual water withdrawal or diversion.

NEW SECTION. Sec. 3. (1) Beginning January 15, 2001, and each January 1st thereafter, the department shall require, without exception, all holders of water right claims, certificates, and permits to report to the state on the following:

(a) The periods of the withdrawal or diversion; and

(b) The maximum instantaneous and annual volume of the withdrawal or diversion for the previous year, under each water right claim, certificate, or permit.

(2) Beginning January 15, 2000, the department shall begin an inventory of all withdrawals and diversions exempt from water right permitting requirements. This inventory is to be completed no later than December 2001, and updated annually beginning in January 2003.

(3) Beginning January 15, 2003, and each January 1st thereafter, the department shall require, without exception, all holders of a water right exempt from water right permitting requirements serving two or more residences to report to the state on the following:

(a) The periods of the withdrawal or diversion; and

(b) The maximum instantaneous and annual volume of the withdrawal or diversion for the previous year, under each water right exempt from water right permitting requirements.

(4) Beginning July 1, 2000, and each July 1st thereafter, the department shall provide an inventory of the withdrawals and diversions within the state, both instantaneous and annual, by water resource inventory area (WRIA) and as applicable and requested by sub-WRIA, based on reported water withdrawals and diversions and as estimated for all exempt withdrawals or diversions. Additionally, beginning July 1, 2003, the inventory shall include the actual reported withdrawals or diversions exempt from water right permitting requirements serving two or more residences and estimated instantaneous and annual volumes for other withdrawals or diversions exempt from water right permitting requirements.

(5) Beginning July 1, 2000, and each July 1st thereafter, the department shall provide the legislature the water withdrawal and diversion inventory by WRIA and if requested by sub-WRIA. The complete annual water withdrawal and diversion inventory shall be made available for public review and copies thereof available at the cost of printing.

(6) Beginning January 1, 2000, and each January 1st thereafter, the department shall require, without exception, the payment of a state water use and management fee in an amount not to exceed one hundred dollars per water right claim, certificate, or permit.

(7) Beginning January 1, 2003, and each January 1st thereafter, the department shall require, without exception, the payment of a state water use and management fee in an amount not to exceed fifty dollars per water right exempt from water right permitting requirements serving two or more residences.

(8) All state water use and management fee revenues shall be used in the following manner and priority:

(a) Preparation and development of the annual water withdrawal and diversion inventories as required by this section;

(b) Preparation and development of watershed assessments by watershed planning units created under chapter 247, Laws of 1998;

(c) Preparation and development of watershed plans, including instream flows, by watershed planning units created under chapter 247, Laws of 1998; and

(d) Watershed water resource enhancement projects as included in watershed plans developed under chapter 247, Laws of 1998.

(9) The failure to report maximum instantaneous, total annual withdrawal or diversion volume, or to pay the required state water use and management fee by the end of January of each year for each claim, certificate, permit, or water right exempt from water right permitting requirements shall result in an annual fine of not more than ten thousand dollars nor less than one thousand dollars based upon the estimated total volume of the withdrawal or diversion.

NEW SECTION. Sec. 4. The failure to report maximum instantaneous, total annual withdrawal or diversion volume, or to pay the required state water use and management fee for any:

(1) Claim;

(2) Certificate;

(3) Permit; or

(4) Water right exempt from water right permitting requirements, but required to meter or measure and report under sections 2 and 3 of this act;

for five consecutive years or for five of any ten years shall result in the statutory relinquishment of the water right under the claim, certificate, permit, or water right exempt from water right permitting requirements, but required to meter or measure and report under sections 2 and 3 of this act.

NEW SECTION. Sec. 5. The failure to report maximum instantaneous, total annual withdrawal or diversion volume, or to pay the required state water use and management fee for any claim, certificate, permit, or water right exempt from water right permitting requirements, but required to meter or measure and report under sections 2 and 3 of this act, is prima facie evidence of nonuse and abandonment.

NEW SECTION. Sec. 6. The state water use and management fee account is created in the custody of the state treasurer. All receipts from section 3 of this act must be deposited into the account. Expenditures from the account may be used only for the purposes under section 3 of this act. Only the director of ecology or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 7. RCW 43.79A.040 and 1998 c 268 s 1 are each amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the Washington international exchange scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility grant account, the self-insurance revolving fund, the sulfur dioxide abatement account, ((~~and~~)) the children's trust fund, and the state water use and management fee account. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 8. The director shall adopt rules to implement sections 2 through 5 of this act.

NEW SECTION. Sec. 9. RCW 90.44.450 (Metering or measuring ground water withdrawals--Reports) and 1989 c 348 s 7 are each repealed.

NEW SECTION. Sec. 10. Section 9 of this act takes effect January 1, 2000.

NEW SECTION. Sec. 11. Sections 2 through 6 and 8 of this act are added to chapter 90.03 RCW.