1. The state water commission shall report quarterly to a legislative committee designated by the legislative management:

a. Each project the state water commission has designated as a carryover project that has had a cost-share agreement in place for at least four years; b. The amount of funds still committed for each carryover project included in the report; c. The total amount of funds reallocated or made available from carryover projects included in a previous report to other projects since the commission's preceding report; and d. The status of each carryover project for which the committee has made a recommendation under subsection 2 since the commission's preceding report.

2. The legislative committee designated by the legislative management to receive the state water commission's reports may make a recommendation to the state water commission that a carryover project included in a report be terminated under section 61-02-14.3 and any funds remaining for the carryover project be reallocated and made available for projects with the same general purpose as the carryover project.