1.    The legislative assembly finds that some cities suffered serious economic and social injuries due to the major flood disaster in 1997 and other recent floods and are at significant risk for future flooding; that construction of flood control or reduction projects is necessary for the protection of health, property, and enterprises and for the promotion of prosperity and the general welfare of the people of the state; and that construction of any such projects involves and requires the exercise of the sovereign powers of the state and concerns a public purpose. It is necessary and in the public interest the state by and through the state water commission assist in financing the costs of constructing flood control or reduction projects through the issuance of bonds.

2.    The legislative assembly finds continued construction of the southwest pipeline project is necessary for the protection of health, property, and enterprises and for the promotion of prosperity and the general welfare of the people of the state, involves and requires the exercise of the sovereign powers of the state, and concerns a public purpose. The legislative assembly also finds current funding for the southwest pipeline project has become uncertain, and it is necessary and in the public interest the state by and through the state water commission assist in financing the costs of continued construction of the southwest pipeline project through the issuance of bonds.

3.    The legislative assembly finds the Devils Lake basin is suffering and facing a worsening flood disaster; construction of an outlet from Devils Lake is necessary for the protection of health, property, and enterprises and for the promotion of prosperity and the general welfare of the people of the state; and construction of the outlet involves and requires the exercise of the sovereign powers of the state and concerns a public purpose. It is necessary and in the public interest an outlet from Devils Lake be constructed with financing from the state water commission to provide flood relief to the Devils Lake basin.

4.    The legislative assembly finds there is a critical need to develop a comprehensive statewide water development program to serve the long-term water resource needs of the state and its people and to protect the state’s current usage of, and the state’s claim to, its proper share of Missouri River water.

5.    In furtherance of the public purpose set forth in subsection 1, the state water commission may issue bonds under chapter 61-02, and the proceeds are appropriated for flood control projects authorized and funded in part by the federal government and designed to provide permanent flood control or reduction to cities that suffered severe damages as a result of the 1997 flood or other recent floods and to repay the line of credit extended to the state water commission under S.L. 1999, ch. 535, § 4. The commission may issue bonds for a flood control or reduction project only:

a.    When:

(1) A flood control or reduction project involves a city that suffered catastrophic flood damage requiring evacuation of the major share of its populace; (2) A flood control or reduction project includes interstate features and requires acquisition of private property to build permanent flood protection systems to comply with federal flood protection standards; (3) The governing body of a city provides a written certification to the state water commission that the city has committed itself to contribute one-half or more of the North Dakota project sponsor’s share of the nonfederal share of the cost to construct the project; (4) The United States army corps of engineers issues its approval of the flood control or reduction project; (5) A project cooperation agreement, which contains provisions acceptable to the department of water resources and is approved by the governor, is entered by the state of Minnesota or one of its political subdivisions in which the flood control or reduction project is to be constructed;    (6) A project cooperation agreement, which contains provisions acceptable to the department of water resources and is approved by the governor, is entered by the state or one of its political subdivisions in which the flood control or reduction project is to be constructed; (7) The governing body of the city has approved a financing plan for all amounts of the nonfederal share of a flood control or reduction project in excess of the amounts to be paid by the state; and

(8) The flood control or reduction project is designed to be cost-effective, and any impact on residential neighborhoods is minimized in an amount reasonably practicable as determined by the department of water resources and approved by the governor; b.    When a flood control or reduction project in a city with a population as of the 1990 federal decennial census of at least eight thousand and not more than ten thousand has received significant federal funding through federal grants and funds from the United States army corps of engineers and the federal emergency management agency; or

c.    When a flood control or reduction project in a city with a population as of the 1990 federal decennial census of at least four thousand five hundred and not more than six thousand has at least seventy percent of the land within the boundaries of the city located within the one hundred year floodplain as designated on a flood insurance rate map and the United States army corps of engineers issues its approval of the flood control or reduction project.

6.    In furtherance of the public purpose set forth in subsection 2, the state water commission may issue bonds under chapter 61-02, and the proceeds are appropriated for construction of the southwest pipeline project and to repay the line of credit extended to the state water commission under S.L. 1999, ch. 535, § 4. The commission may issue bonds under this chapter for continued construction of the southwest pipeline project only when it is determined the Perkins County water system will not make payment to the state water commission in the amount of four million five hundred thousand dollars or on January 1, 2000, whichever occurs earlier. If the Perkins County water system makes payment to the state water commission after January 1, 2000, the payment must be used to pay principal and interest on bonds issued for continued construction of the southwest pipeline project as provided in subsection 2 of section 61-02.1-04. If the Perkins County water system does not make payment to the state water commission, no benefits may accrue to the Perkins County water system.

7.    In furtherance of the public purposes set forth in subsections 3 and 4, the state water commission may issue bonds under chapter 61-02 to finance the cost of one or more of the projects identified in this section.

8.    This chapter does not affect the state water commission’s authority to otherwise issue bonds pursuant to chapter 61-02 or section 61-24.3-01.

9.    Notwithstanding this section, the state water commission may not issue bonds authorized under subsection 5 for a project unless federal funds have been appropriated for that project.