First Substitute S.B. 51

Senator Leonard M. Blackham proposes to substitute the following bill:

1 WATER RIGHT TRANSFER AMENDMENTS
2 2001 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Leonard M. Blackham
5 This act modifies the Water and Irrigation Code to specify the reasons why a water
6 corporation may withhold its consent to a request by a shareholder to change the point of
7 diversion, place of use, or purpose of use of the shareholder's water. This act authorizes the
8 Division of Water Rights to provide advice and technical assistance to water corporations
9 and their shareholders on proposed changes, and appropriates an ongoing appropriation of
10 $130,000 from the General Fund for fiscal year 2001-02 to the Division of Water Rights to
11 provide the advice and technical assistance. This act takes effect on July 1, 2001.
12 This act affects sections of Utah Code Annotated 1953 as follows:
13 ENACTS:
14 73-3-3.5, Utah Code Annotated 1953
15 Be it enacted by the Legislature of the state of Utah:
16 Section 1. Section 73-3-3.5 is enacted to read:
17 73-3-3.5. Change of point of diversion, place of use, or purpose of use of water in a
18 water corporation.
19 (1) As used in this section, "shareholder" means the owner of a share of stock, or other
20 evidence of ownership, that entitles the person to a proportionate share of water in a water
21 corporation.
22 (2) A shareholder who seeks to change the point of diversion, place of use, or purpose of
23 use of the shareholder's water shall submit a request for the change to the water corporation.
24 (3) The water corporation shall approve the request for the change and allow a change
25 application to be submitted to the state engineer, pursuant to Section 73-3-3 , unless:

26 (a) the proposed change increases costs to the water corporation or its shareholders, or
27 interferes with the water corporation's ability to manage and distribute the water for the benefit of
28 all its shareholders; and
29 (b) (i) the water corporation and the shareholder requesting the change cannot agree on
30 conditions to be imposed on the change to prevent the impacts listed in Subsection (3)(a); or
31 (ii) the impacts listed in Subsection (3)(a) cannot be practicably avoided.
32 (4) A water corporation shall make its decisions to approve, approve with conditions, or
33 deny change requests based on the facts and circumstances of each proposed change.
34 (5) The Division of Water Rights may provide advice and technical assistance to water
35 corporations and their shareholders regarding:
36 (a) the feasibility of a proposed change;
37 (b) the impacts of a proposed change on a water corporation and its shareholders; and
38 (c) conditions that may be imposed on a change to avoid negative impacts to a water
39 corporation and its shareholders.
40 Section 2. Appropriation.
41 Subject to future budget constraints, there is appropriated, as an ongoing appropriation,
42 $130,000 from the General Fund for fiscal year 2001-02 to the Division of Water Rights for
43 salaries, benefits, and expenses of personnel who will provide advice and technical assistance to
44 water corporations and their shareholders on proposed changes in the point of diversion, place of
45 use, or purpose of use of water corporation's water.
46 Section 3. Effective date.
47 This act takes effect on July 1, 2001.