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<br />- 5 - <br /> <br />(c) Any interest earned on the moneys in the litigation fund shall be credited on an annual basis <br />to the Celerase '.yaler eenser/alien beal's censtru"tien LITIGATION fund "realed in sabseetien <br />(1) efthis seetien. <br /> <br />(d) The board, in conjunction with the attorney general, shall report annually to the senate <br />agriculture and natural resources committee and the house of representatives agriculture, <br />livestock, and natural resources committee on any litigation OR OTHER ACTNITY that <br />involves the use of any moneys from the litigation fund created in paragraph (a) ofthis <br />subsection (. ). <br /> <br />(e) Any moneys remaining in the litigation fund at such time as the general assembly acts to <br />close the fund shall be credited to the Colorado water conservation board construction fund <br />created in subsection (1) of this section. <br /> <br />(t) (Deleted by amendment, L. 2001, p. 690, 9 27, effective May 30, 2001.) <br /> <br />Discussion <br /> <br />Section 37-60-121 (2.5)(a), CRS, created the Litigation Fund (Account) in the Construction <br />Fund. Currently, the Board is only authorized to spend up to $4.0 million from the Litigation Fund <br />for litigation in support of water users whose water supply yield may be diminished as a result of by- <br />pass flow requirements, or to oppose federal applications for in-stream flows. The fund can only be <br />used when the Attorney General's budget has been depleted. <br /> <br />The funds in the account have never been spent on litigation, but $1 million dollars of the <br />original $4 million was transferred to the Native Species Conservation Trust Fund pursuant to SB <br />99-173, leaving a current balance in the fund of$3 million. <br /> <br />The intent of the revisions is to make available to the Board an on-going spending authority <br />of $3 million, until the funds are exhausted or refreshed, to avoid, prevent, or defend against future <br />litigation directed toward the water users of the state. The proposed revision also expands the use of <br />the Litigation Fund to include expenditures relative to more general questions of law and regulation. <br />The funds could be used for outside litigation support, retention of experts, operating costs and other <br />general costs associated with investigating the impacts federal or state regulatory processes may <br />have on the state and its water users. <br /> <br />For example, we spent operating funds on outside experts in the Golden case. We also spent <br />funds preparing our proposed monitoring plan that helped avoid litigation during the recent <br />Snowmass Creek 404 permitting discussions. The State Engineer is also always involved in litigation <br />of statewide importance. We believe that because the Attorney General is a member of our Board <br />and we are constantly collaborating to address issues oflaw and the challenges presented by lawsuits <br />and regulations, that a framework should exist to ensure the prudent expenditure of funds more <br />expeditiously. We also do not believe it is in the best interest of the state or water users to wait until <br />the Attorney General is out of funds before being able to take advantage of the Litigation Fund. <br /> <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />