Representative Logan Wilde proposes the following substitute bill:




Chief Sponsor: Logan Wilde

Senate Sponsor: D. Gregg Buxton


8     General Description:
9          This bill modifies provisions in regard to assigning water rights by a written instrument.
10     Highlighted Provisions:
11          This bill:
12          ▸     states that a right claimed under an application for the appropriation of water may
13     be assigned including by a form provided by the state engineer's office;
14          ▸     provides that, beginning July 1, 2017, the state engineer shall consider an
15     assignment that is recorded and forwarded to the state engineer as a submitted
16     report of water right conveyance; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          73-3-18, as last amended by Laws of Utah 2014, Chapter 369

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 73-3-18 is amended to read:
28          73-3-18. Lapse of application -- Notice -- Reinstatement -- Priorities --
29     Assignment of application -- Filing and recording -- Constructive notice -- Effect of
30     failure to record.
31          (1) If an application lapses for failure of the applicant to comply with a provision of
32     this title or an order of the state engineer, the state engineer shall promptly give notice of the
33     lapse to the applicant by regular mail.
34          (2) Within 60 days after notice of a lapse described in Subsection (1), the state engineer
35     may, upon a showing of reasonable cause, reinstate the application with the date of priority
36     changed to the date of reinstatement.
37          (3) The original priority date of a lapsed application may not be reinstated, except upon
38     a showing of fraud or mistake of the state engineer.
39          (4) Except as provided in Section 73-3-5.6, Section 73-3-12, Section 73-3-20, or
40     Subsection (2), the priority of an application is determined by the day on which the state
41     engineer's office receives the written application.
42          (5) Before the state engineer issues a certificate of appropriation, a right claimed under
43     an application for the appropriation of water may be [transferred or] assigned by a written
44     instrument, including by use of a form provided by the state engineer's office.
45          (6) (a) An instrument [transferring or] assigning a right described in Subsection (5)
46     shall be recorded in the office of the applicable county recorder to provide notice of the
47     instrument's contents.
48          (b) Beginning July 1, 2017, the state engineer shall consider an assignment using the
49     state engineer's form described in Subsection (5) that is recorded and forwarded to the state
50     engineer as a submitted report of water right conveyance for purposes of fulfilling Subsection
51     73-1-10(3)(a).
52          (7) An instrument described in Subsection [(6)] (5) that is not recorded as described in
53     Subsection (6) is void against any subsequent assignee in good faith and for valuable
54     consideration of the same application or any portion of the same application, if the subsequent
55     assignee's own assignment is recorded as described in Subsection (6) first.