1.  There is hereby created in the State General Fund an account designated as the Water Rights Technical Support Account. The Account must be administered by the Board for Financing Water Projects.

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2.  The Water Rights Technical Support Account is a continuing account without reversion. Money in the Account must be invested as the money in other state accounts is invested. The interest and income earned on the money in the Account, after deducting any applicable charges, must be credited to the Account. Claims against the Account must be paid as other claims against the State are paid.

3.  The Board for Financing Water Projects may accept gifts, grants and donations from any source for deposit in the Water Rights Technical Support Account.

4.  Except as otherwise provided in subsection 5, money in the Water Rights Technical Support Account must be used by the Board for Financing Water Projects only to make grants to a local government to:

(a) Obtain and provide expert and technical assistance to gather data to protect its existing water rights; or

(b) Fund projects to enhance or protect its existing water rights.

5.  Any grant of money from the Water Rights Technical Support Account must not be used by a local government to pay for any assistance or projects as set forth in subsection 4 if the only purpose of the assistance or project is to obtain evidence, including, without limitation, technical evidence and oral testimony or to pay for expert witnesses or attorney’s fees for or in anticipation of any administrative or judicial proceeding, including, without limitation, hearings before the State Engineer or in any state or federal court.