Pursuant to §§ 46A-1-11 to 46A-1-13, inclusive, construction of a one hundred seventy–five million dollar Lake Andes–Wagner Irrigation Project, as generally described in the report “Planning Report/Environmental Statement” dated September 1985 and a twenty–four million dollar Marty II Irrigation Project as generally described in the report “Planning Report and Environmental Assessment” dated January 1990 is hereby authorized for the purpose of stabilizing crop and forage production in south central South Dakota to offset the effects of drought conditions which naturally devastate South Dakota’s economic viability.

Prior to construction of the authorized Lake Andes–Wagner/Marty II Irrigation Project the Legislature finds it necessary and prudent to develop accurate and quantitative means of addressing the reliable drainage requirements with respect to glacial till soils and to develop sound management practices that are beneficial to all irrigation in South Dakota. This phase of the project shall hereby be referred to as the Lake Andes–Wagner/Marty II Research Demonstration Program and shall conclude when the Legislature and the United States Congress accept a final report.

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The Board of Water and Natural Resources may provide loans under the State Water Management Resources System revolving loan program in amounts not to exceed a total of seven million dollars to the Lake Andes–Wagner/Marty II Irrigation Project to provide the nonfederal requirements for the federally authorized project. No disbursements may be made under the loans authorized by this section unless funds are appropriated by the Legislature in conformance with § 46A-1-61.

Indian lands shall be exempted from any payments due to the State of South Dakota. Notwithstanding the provisions of § 46A-1-66, no interest may accrue until the Board of Water and Natural Resources certifies the completion of the construction of the project as authorized. The initial loan repayment shall be due and payable one year following the certification of construction completion. Loan terms and conditions shall be set by the Board of Water and Natural Resources.

The loans authorized by this section may be increased or decreased by such amounts as may be justified by reason of ordinary fluctuations in development costs incurred after October 1, 1989, as indicated by engineering costs indices applicable for the type of construction involved.

Source: SL 1992, ch 254, § 14.