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WATER LAW - PROTECTED PURCHASER AMENDMENTS

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2016 GENERAL SESSION

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STATE OF UTAH

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Chief Sponsor: Margaret Dayton

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House Sponsor: Keith Grover

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7     LONG TITLE
8     General Description:
9          This bill modifies the definition of a protected purchaser.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies the definition of a protected purchaser; and
13          ▸     makes technical changes.
14     Money Appropriated in this Bill:
15          None
16     Other Special Clauses:
17          None
18     Utah Code Sections Affected:
19     AMENDS:
20          70A-8-303, as last amended by Laws of Utah 2012, Chapter 386
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22     Be it enacted by the Legislature of the state of Utah:
23          Section 1. Section 70A-8-303 is amended to read:
24          70A-8-303. Protected purchaser.
25          (1) "Protected purchaser" means a purchaser of a certificated or uncertificated security,
26     or of an interest in the security, who:
27          (a) [(i)] gives value;
28          [(ii)] (b) does not have notice of an adverse claim to the security; [and]
29          [(iii)] (c) obtains control of the security; [or] and
30          [(b)] (d) for a [security] share of stock issued by a land company or a water
31     company[,]:
32          (i) pays, or whose predecessors in interest paid, an assessment levied against the share
33     of stock for at least four of the immediate past seven years by the land company or the water
34     company [in accordance with Title 16, Chapter 4, Share Assessment Act, against the security at
35     least once within the five-year period immediately preceding the date it is determined whether
36     the purchaser is a protected purchaser.]; or
37          (ii) has used, or whose predecessors in interest have used, either directly or indirectly,
38     the water available under the share of stock issued by a water company for at least four of the
39     immediate past seven years.
40          (2) In addition to acquiring the rights of a purchaser, a protected purchaser acquires the
41     purchaser's interest in the certificated or uncertificated security, share of stock in a land
42     company, or share of stock in a water company free of any adverse claim.