48-3713.02. Additional authority regarding water storage

A. The district may enter into a contract with the state, the Arizona water banking authority, a county, a municipality or another person to develop, acquire, construct, operate or maintain water storage, storage facilities and recovery wells pursuant to title 45, chapter 3.1 on behalf of the state, the Arizona water banking authority, a county, a municipality or any other person. With respect to such agreements or contracts, the state, the Arizona water banking authority, a county, a municipality or any other persons shall pay all costs relating to such water storage, storage facilities and recovery wells, including their proportional share of the costs that the district incurred under section 48-3713.01.

B. The contract shall contain the further provision that use of central Arizona project facilities for any purpose under this section shall not interfere with deliveries to central Arizona project subcontractors for direct use.

C. Any contract executed by the district under this section with a central Arizona project subcontractor shall contain the provision that in any year in which the amount of Colorado river water available for delivery to central Arizona project subcontractors is one million five hundred thousand acre-feet or less, central Arizona project water allocated to the subcontractor to be used for any water storage under this section will be limited to water which would otherwise not be delivered for direct use to other central Arizona project subcontractors, except that after December 31, 1993, central Arizona project water allocated to the subcontractor to be used for any water storage under this section will be limited to water which would otherwise not be delivered for direct use to other central Arizona project subcontractors serving water in the same active management area. Nothing in this subsection shall be construed to affect the subcontract rights of central Arizona project subcontractors.

D. The contract may include a provision to require the district to pay to the county contributions in lieu of taxes on any property, or interest in property, acquired under this section. The amount of the contribution shall be determined according to the procedures in title 42, chapter 15, article 6. If the contract contains such a provision, the property, or interest in property, acquired under this section is deemed to be taxable property in the county only for purposes of determining the county's levy limit under section 42-17051 and the distribution of state transaction privilege tax revenues to the counties under section 42-5029, subsection D, paragraph 3, subdivision (a), item (i).