Amends existing law to authorize water districts to charge certain fees.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE SENATE SENATE BILL NO. 1223 BY RESOURCES AND ENVIRONMENT COMMITTEE AN ACT1 RELATING TO WATER DISTRICTS; AMENDING SECTION 42-612, IDAHO CODE, TO REVISE2 PROVISIONS REGARDING WATER DISTRICT BUDGETS AND TO PROVIDE THAT WATER3 USERS MAY AUTHORIZE A WATER DISTRICT TO CHARGE A FIXED FEE TO COVER AD-4 MINISTRATIVE COSTS ASSOCIATED WITH PROPERTY OWNERSHIP TRANSFERS; AND5 DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.6

Be It Enacted by the Legislature of the State of Idaho:7

SECTION 1. That Section 42-612, Idaho Code, be, and the same is hereby8 amended to read as follows:9 42-612. PROPOSED WATER DISTRICT BUDGET FOR SUCCEEDING YEAR -- ADOP-10 TION AND CONTENTS OF BUDGET -- DEBT OF WATER USER. (1) Each watermaster11 shall, at least fourteen (14) days prior to the annual meeting of the water12 users of the water district, prepare a proposed budget for the succeeding13 year, together with a distribution of the pro rata amounts of the budget as-14 sessed to the respective water users or water delivery organizations using15 the actual volume of water delivered for the past season or seasons. The16 proposed budget and distribution of pro rata assessments shall be presented17 to the water users for consideration and approval at the next annual meeting.18 (2) At any annual meeting, the water users must shall adopt a budget19 covering the estimated expenses of delivering the water of the district for20 the ensuing succeeding year and shall, by resolution, determine that how the21 moneys composing the budget shall be collected. The compensation of the wa-22 termaster and the watermaster's assistants and any other expenses of deliv-23 ering the water of the district to the users thereof, including the costs24 of the advisory committee in implementing resolutions adopted by the water25 users of the district for activities other than the payment of the salary and26 operating expenses of the watermaster and assistants, shall be paid in the27 manner hereinafter, in this section, provided for by this section.28 (3) To the extent possible, funding for advisory committee expenses29 associated with implementing resolutions adopted by the water users for30 activities other than the payment of the salary and operating expenses of the31 watermaster and assistants shall come from funds available pursuant to sec-32 tion 42-613A, Idaho Code. If funds available pursuant to section 42-613A,33 Idaho Code, are not sufficient to cover expenses incurred in implementing34 resolutions adopted by the water users, then such expenses shall come from35 assessments.36 (4) The budget shall show the aggregate amount to be collected from all37 the water users in the district and the amount to be paid by each water de-38 livery organization or other water user. For the purpose of computing the39 respective amounts to be paid by each water user, the actual volume of water40 delivered to each water delivery organization or other water user during the41 past season or seasons, not exceeding five (5) seasons, shall be used as a ba-42

2 sis. If a right has not previously been assessed or if past season delivery1 records are not available, the watermaster may, by resolution of the water2 users, estimate the volume of water delivered or reasonably used when water3 was available under the priority of the right during the past season or sea-4 sons. Notwithstanding other provisions of this section, if a water delivery5 organization or water user diverts water pursuant to a valid water right from6 a natural waterway that is regulated and assessed by one water district, and7 that water is then conveyed through and rediverted from a different natural8 waterway pursuant to section 42-105(1), Idaho Code, that is regulated by a9 second water district, the second water district may, by resolution of the10 water users, charge a fee instead of an assessment for the water that is redi-11 verted sufficient to pay the costs and expenses for watermaster services for12 data collection, water measurement, conveyance of water, and record keeping13 directly attributable to the conveyance of the water that is rediverted. A14 fee charged pursuant to this subsection is not an assessment. A water deliv-15 ery organization or a water user that is charged a fee is not eligible to vote16 at an annual water district meeting as set forth in section 42-605, Idaho17 Code, unless the water delivery organization or water user holds other water18 rights that are assessed by the water district and voting is based upon those19 assessed water rights.20 (5) Upon the adoption of the budget, the amount payable by each water21 delivery organization or other water user, as shown by the budget, shall22 become the debt of each respectively and shall become due and payable as23 hereinafter provided. Other provisions of chapter 6, title 42, Idaho Code,24 notwithstanding, water users may at the annual meeting by resolution provide25 for an annual minimum charge not to exceed two hundred fifty dollars ($250)26 per water user for watermaster services. The minimum charge is applicable27 whenever the prorated charge against any water delivery organization or28 other water user is less than the minimum charge.29 (6) At the annual meeting, water users may, by resolution, authorize30 the water district to charge a fixed fee, the amount of which shall be set31 in the resolution, to be used exclusively to cover administrative costs as-32 sociated with collaborating with title companies during property ownership33 transfers. Such collaboration may include but is not limited to notifying34 title companies of outstanding balances, confirming payment receipts, and35 transferring relevant water right documentation between the water district36 and the title company.37 (6) (7) Other provisions of chapter 6, title 42, Idaho Code, notwith-38 standing, water users at the annual meeting may provide, by resolution, that39 the respective amounts owed by each water user as shown in the adopted budget40 shall constitute a final determination of the amount due for that year with-41 out the need to carry forward any water user debits or credits to the follow-42 ing year.43

SECTION 2. An emergency existing therefor, which emergency is hereby44 declared to exist, this act shall be in full force and effect on and after45 July 1, 2026.46