45-579

45-579. Assignment of certificate of assured
water supply; definition

A. A holder of a certificate of assured water supply issued pursuant to section
45-576 may assign the certificate, in whole or in part, to another person if the holder
applies to the director for approval within ten years after the original certificate was
issued and the director approves the application. An application may be filed under this
section more than ten years after the original certificate was issued if a minimum of
five hundred lots within the subdivision covered by the certificate have been sold to
individual home buyers by the holder of the certificate and any previous holders of the
certificate. An application filed under this section shall be on a form prescribed by
the director. The director shall approve a timely application for assignment of a
certificate of assured water supply if the director determines that all of the following
apply:

1. The proposed assignee owns or is acquiring the subdivision to which the current
certificate applies, or if the application is for a partial assignment, the portion of
the subdivision to which the current certificate applies that is the subject of the
proposed assignment.

2. There has not been any material change in the subdivision plat, plan or map
since the certificate was originally issued, including an increase in the total number of
housing units or an increase in the total water demand for the subdivision, including all
assignments.

3. Either there is water delivery infrastructure in place that is capable of
delivering water to each lot within the subdivision or the proposed assignee has
demonstrated financial capability to complete the infrastructure. In determining whether
the proposed assignee has demonstrated financial capability to complete the
infrastructure, the director shall apply the same standards that are used in evaluating
financial capability for a new certificate application.

4. The water provider serving the subdivision and the source of supply have not
changed since the current certificate was issued and the water provider has agreed to
serve the subdivision after the assignment.

5. Water rights, permits, licenses, contracts and easements other than the
municipal provider's service area rights at the time the current certificate was issued
have been assigned and may be used to support water service to the portion of the
subdivision that is the subject of the assignment and to any remaining portions of the
subdivision that are retained by the subdivider.

6. There has not been any change in the manner in which the consistency with
management goal requirements were satisfied at the time the original certificate was
issued.

B. After a change of ownership has occurred and on approval of an assignment, the
director shall issue a certificate of assured water supply in the name of the assignee,
retaining the date of the original certificate as the date of issuance.

C. In the case of a partial assignment, the director shall issue a certificate in
the name of the assignee for the portion of the subdivision that is the subject of the
proposed assignment, and shall issue a certificate in the name of the assignor for the
portion of the subdivision retained, each with the date of the original certificate as
the date of issuance. The new certificates shall include all water demand for the
subdivision represented by the current certificate. The allocation of demand between the
certificates shall be based on a reasonable plan for allocation of the total subdivision
demand as approved by the director.

D. Section 45-578 does not apply to an application filed under this
section. Section 45-114, subsections A and B govern administrative proceedings,
rehearing and review and judicial review of final decisions of the director under this
section. If an administrative hearing is held, it shall be conducted in the active
management area in which the use is located.

E. Within two business days after receiving an application under subsection A of
this section, the director shall post notice of the application on the department's web
site until the director issues a decision on the application. The notice shall include
notice of the right to submit comments on the application as provided in this subsection,
including a toll free number where comments may be submitted by telephone and the
addresses where comments may be submitted by United States mail, electronic mail and hand
delivery. Any person may submit comments on the application within fourteen calendar
days after the first day that notice of the application is posted on the department's web
site. The director shall consider all timely comments submitted on the application
before issuing a decision on the application. Within two business days after issuing a
decision on the application, the director shall post notice of the decision on the
department's web site for a minimum of fourteen days. Notwithstanding title 41, chapter
6, article 10 and section 45-114, a person who submits comments on an application
pursuant to this subsection is not a party for purposes of title 41, chapter 6, article
10, is not entitled to an administrative hearing before or after the director's decision
on the application and is not entitled to judicial review of the director's decision.

F. For the purposes of this section, "original certificate" means the initial
certificate of assured water supply that is issued by the director for a subdivision.