Chairman Hager reconvened the conference committee on House Bill 1218 on the LC form 02/2005 and the committee moved and approved an amended LC form that preserves a $1,000,000 threshold for when the State will not require an economic analysis for an assessment-drain project and directs a study to legislative management to determine an appropriate threshold.

The committee’s action kept in place language in section 3 that states the commission may not require an economic analysis for an assessment-drain project if the project is expected to cost less than $1,000,000. Representative Doctor, who moved the amendments adopting LC form 02/2005 plus additional changes, said an email from Reese Haas, director of the Department of Water Resources, showed recent project cost distributions: “since 2019, totally completed 50 projects under 3,000,000 were 43. Projects under 2,000,000 were 34, and projects under 1,000,000 were 24.”

Why it matters: The $1,000,000 figure has appeared in statute in prior sessions, committee members said, but the State Water Commission had interpreted its own rules to require analyses at lower thresholds in some cases. Committee members agreed to add a study and to route that study to Legislative Management so an interim committee can review data and recommend a final threshold in a future session.

During debate, Senator Engadin questioned raising the threshold to $1,000,000 and asked whether a lower threshold (for example the $750,000 the House had proposed) might ensure more projects receive review. The committee discussed that the $750,000 figure had been a House amendment to an earlier $5,000,000 proposal and that the $1,000,000 level has historically existed in code. Senator Gerhardt said he supported the study but opposed removing economic analysis entirely, citing concerns about under-reporting of project costs and the potential for “games” in cost estimates when a specific target is set.

Committee chair Hager and members said the study would provide data to set an appropriate, evidence-based threshold in a later session. To that end, the committee amended section 3 to replace references to the State Water Commission with Legislative Management so the study would be directed to the legislative interim process; the State Water Commission and Department of Water Resources will remain involved as participants in the study.

The committee voted to adopt the LC form 02/2005 with the additional amendments. The roll call recorded five votes in favor and one opposed; Chairman Hager announced the amendment “will be attached” and the committee adjourned and planned to reschedule a follow-up meeting.

Votes at a glance

- Motion: Adopt LC form 02/2005 plus additional amendments (moves and further amends section 3 to assign the study to Legislative Management). Mover: Representative Doctor. Second: Senator Kessel. Outcome: approved 5–1.

Context and next steps

Committee members said the interim study directed to Legislative Management is intended to collect additional economic analyses and project data so that lawmakers can set a clearer statutory threshold in a future session. The Department of Water Resources will supply project cost data, and the State Water Commission will participate in the study process.