Department of Natural Resources Amendments

56
9-8a-205
63A-17-502
63J-1-602.1
73-1-22
73-2-11
73-3-8
73-3-30
73-10-34
73-10-36
79-2-406
79-2-604
79-2-702
79-3-202
79-3-302
79-4-402
79-4-1001
79-6-501
79-6-502
79-6-503
79-6-504
79-6-505
0
Department of Natural Resources Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Rex P. Shipp
Senate Sponsor: Keven J. Stratton
LONG TITLE
General Description:
This bill addresses provisions related to the Department of Natural Resources.
Highlighted Provisions:
This bill:
removes language related to determining the work period for certain Department of
Natural Resources' employees;
modifies provisions related to records kept by the Division of Water Rights, including to
allow for the records to be kept in physical or electronic form;
corrects citations;
addresses treatment of water rights after termination or noncompliance of certain royalty
contracts or mineral leases;
removes a cap on low-interest loans related to secondary water metering;
modifies when certain applications may be filed with the state engineer under instream
flow provisions;
clarifies rulemaking authority related to rules enforced by the Division of Law
Enforcement;
modifies the duties of the Utah Geological Survey;
modifies the makeup of the Board of the Utah Geological Survey;
changes the term "buffalo" to "bison" in certain circumstances;
repeals section specifying funding sources of the Watershed Restoration Initiative;
repeals the Alternative Energy Development Tax Credit Act; and
makes technical and conforming amendments.
Money Appropriated in this Bill:
This bill appropriates
$5,000,000
in operating and capital budgets for fiscal year 2027, all
of which is from the General Fund.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
9-8a-205
, as renumbered and amended by Laws of Utah 2023, Chapter 160
63A-17-502
, as last amended by Laws of Utah 2024, Chapter 151
63J-1-602.1
, as last amended by Laws of Utah 2025, First Special Session, Chapter 9
73-2-11
, as last amended by Laws of Utah 2024, Chapter 365
73-3-8
, as last amended by Laws of Utah 2024, Chapter 233
73-3-30
, as last amended by Laws of Utah 2023, Chapters 34, 253
73-10-34
, as last amended by Laws of Utah 2025, Chapter 102
73-10-36
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
79-2-406
, as last amended by Laws of Utah 2024, Chapter 88
79-2-702
, as enacted by Laws of Utah 2024, Chapter 80
79-3-202
, as last amended by Laws of Utah 2025, First Special Session, Chapter 15
79-3-302
, as last amended by Laws of Utah 2025, Chapter 57
79-4-402
, as last amended by Laws of Utah 2025, Chapters 77, 153
79-4-1001
, as last amended by Laws of Utah 2025, Chapter 153
ENACTS:
73-1-22
, Utah Code Annotated 1953
REPEALS:
79-2-604
, as enacted by Laws of Utah 2022, Chapter 51
79-6-501
, as renumbered and amended by Laws of Utah 2021, Chapter 280
79-6-502
, as renumbered and amended by Laws of Utah 2021, Chapter 280
79-6-503
, as last amended by Laws of Utah 2021, Chapter 64 and renumbered and
amended by Laws of Utah 2021, Chapter 280
79-6-504
, as renumbered and amended by Laws of Utah 2021, Chapter 280
79-6-505
, as last amended by Laws of Utah 2022, Chapter 68
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
9-8a-205
is amended to read:
9-8a-205
. Cultural Site Stewardship Program -- Definitions -- Creation --
Objectives -- Administration -- Activities.
(1)
As used in this section:
(a)
(i)
"Cultural site" means a significant archaeological or paleontological site in the
state as determined by the office.
(ii)
"Cultural site" may include a:
(A)
site as defined in Section
9-8a-302
; and
(B)
site as defined in Section
79-3-102
.
(b)
"Stewardship program" means the Cultural Site Stewardship Program created in this
section.
(c)
"Vandalism" means to damage, destroy, or commit any other act that defaces or
harms a cultural site without the consent of the owner or appropriate governmental
agency, including inscribing, marking, etching, scratching, drawing, painting on, or
affixing to the cultural resource a mark, figure, or design.
(2)
There is created within the office the Cultural Site Stewardship Program.
(3)
The office shall seek to accomplish the following objectives through administration of
the stewardship program:
(a)
protect cultural sites located in the state;
(b)
increase public awareness of the significance and value of cultural sites and the
damage done to cultural sites by vandalism;
(c)
discourage vandalism and the unlawful sale and trade of archaeological artifacts and
paleontological artifacts;
(d)
support and encourage improved standards for investigating and researching cultural
sites in the state;
(e)
promote cooperation among governmental agencies, private landowners, Native
American tribes, industry groups, and interested persons to protect cultural sites; and
(f)
increase the inventory of cultural sites maintained in accordance with Subsections
9-8a-304(2)(b)
and
79-3-202(1)(m)
79-3-202(1)(p)
.
(4)
The office shall:
(a)
maintain a position to oversee the operation of the stewardship program; and
(b)
provide administrative services to the stewardship program.
(5)
The office shall select, train, and certify volunteers to participate in the stewardship
program, based on rules made by the office in accordance with
Title 63G, Chapter 3,
Utah Administrative Rulemaking Act
.
(6)
To accomplish the stewardship program's objectives, the office shall:
(a)
enter into agreements with the entities described in Subsection
(3)(e)
to promote the
protection of cultural sites;
(b)
establish a list of cultural sites suitable for monitoring, in cooperation with the
entities described in Subsection
(3)(e)
;
(c)
schedule periodic monitoring activities by volunteers of each cultural site included
on the list described in Subsection
(6)(b)
, after obtaining approval of the landowner
or manager;
(d)
establish rules, in accordance with
Title 63G, Chapter 3, Utah Administrative
Rulemaking Act
, for reporting vandalism of a cultural site to the appropriate
authority; and
(e)
establish programs for educating members of the public about the significance and
value of cultural sites and the loss to members of the public resulting from vandalism
of cultural sites.
(7)
The office shall coordinate the activities of governmental agencies, private landowners,
and Native American tribes, as necessary, to carry out the stewardship program.
(8)
A volunteer participating in the stewardship program may not receive compensation,
benefits, per diem allowance, or travel expenses for the volunteer's service.
(9)
The office may accept gifts, grants, donations, or contributions from any source to assist
the division in the administration of the stewardship program.
(10)
Nothing in this section may be construed to alter or affect the office's duties under
Section
9-8a-404
.
Section 2. Section
63A-17-502
is amended to read:
63A-17-502
. Overtime policies for state employees.
(1)
As used in this section:
(a)
"Accrued overtime hours" means:
(i)
for a nonexempt employee, overtime hours earned during a fiscal year that, at the
end of the fiscal year, have not been paid and have not been taken as time off by
the nonexempt state employee who accrued them; and
(ii)
for an exempt employee, overtime hours earned during an overtime year.
(b)
"Appointed official" means:
(i)
each department executive director and deputy director, each division director, and
each member of a board or commission; and
(ii)
any other person employed by a department who is appointed by, or whose
appointment is required by law to be approved by, the governor and who:
(A)
is paid a salary by the state; and
(B)
who exercises managerial, policy-making, or advisory responsibility.
(c)
"Department" means, except as otherwise provided in this section, the Department of
Government Operations, the Department of Corrections, the Department of Financial
Institutions, the Department of Alcoholic Beverage Services, the Insurance
Department, the Public Service Commission, the Labor Commission, the Department
of Agriculture and Food, the Department of Human Services, the Department of
Natural Resources, the Department of Transportation, the Department of Commerce,
the Department of Workforce Services, the State Tax Commission, the Department of
Cultural and Community Engagement, the Department of Health, the National Guard,
the Department of Environmental Quality, the Department of Public Safety, the
Commission on Criminal and Juvenile Justice, all merit employees except attorneys
in the Office of the Attorney General, merit employees in the Office of the State
Treasurer, merit employees in the Office of the State Auditor, Department of
Veterans and Military Affairs, and the Board of Pardons and Parole.
(d)
"Elected official" means any person who is an employee of the state because the
person was elected by the registered voters of Utah to a position in state government.
(e)
"Exempt employee" means a state employee who is exempt as defined by the FLSA.
(f)
"FLSA" means the Fair Labor Standards Act of 1978, 29 U.S.C. Sec. 201 et seq.
(g)
"FLSA agreement" means the agreement authorized by the FLSA by which a
nonexempt employee elects the form of compensation the nonexempt employee will
receive for overtime.
(h)
"Nonexempt employee" means a state employee who is nonexempt as defined by the
division applying FLSA requirements.
(i)
"Overtime" means actual time worked in excess of an employee's defined work
period.
(j)
"Overtime year" means the year determined by a department under Subsection
(5)(b)

at the end of which an exempt employee's accrued overtime lapses.
(k)
"State employee" means every person employed by a department who is not:
(i)
an appointed official;
(ii)
an elected official; or
(iii)
a member of a board or commission who is paid only for per diem or travel
expenses.
(l)
"Uniform annual date" means the date when an exempt employee's accrued overtime
lapses.
(m)
"Work period" means:
(i)
for a nonexempt employee, except a nonexempt law enforcement or hospital
employee, a consecutive seven day, 24 hour work period of 40 hours;
(ii)
for an exempt employee, a 14 day, 80 hour payroll cycle;
(iii)
for a nonexempt hospital employee, the period the division establishes by rule
according to the requirements of the FLSA; or
(iv)
for a nonexempt law enforcement employee as defined in the FLSA
:
(A)
who is employed by the Department of Natural Resources, the period the
division establishes by rule according to the requirements of the FLSA; or
(B)
who is employed by a department other than the Department of Natural
Resources
, the period the division establishes by rule in accordance with
Subsection
(2)
.
(2)
Except for the Department of Natural Resources, the
The
division shall require each
department employing a nonexempt law enforcement employee to designate one of the
following work periods applicable to that employee:
(a)
80 hours in a 14 consecutive day payroll cycle; or
(b)
160 hours in a 28 consecutive day payroll cycle.
(3)
Each department shall compensate each state employee who works overtime by
complying with the requirements of this section.
(4)
(a)
Each department shall negotiate and obtain a signed FLSA agreement from each
nonexempt employee.
(b)
In the FLSA agreement, the nonexempt employee shall elect either to be
compensated for overtime by:
(i)
taking time off work at the rate of one and one-half hour off for each overtime
hour worked; or
(ii)
being paid for the overtime worked at the rate of one and one-half times the
employee's regular hourly wage.
(c)
A nonexempt employee who elects to take time off under this Subsection
(4)
shall be
paid for any overtime worked in excess of the cap established by the division.
(d)
Before working any overtime, a nonexempt employee shall obtain authorization to
work overtime from the employee's immediate supervisor.
(e)
Each department shall:
(i)
for an employee who elects to be compensated with time off for overtime, allow
overtime earned during a fiscal year to be accumulated; and
(ii)
for an employee who elects to be paid for overtime worked, pay them for
overtime worked in the paycheck for the pay period in which the employee
worked the overtime.
(f)
If a department pays a nonexempt employee for overtime, that department shall
charge that payment to that department's budget.
(g)
At the end of each fiscal year, the Division of Finance shall total all the accrued
overtime hours for nonexempt employees and charge that total against the
appropriate fund or subfund.
(5)
(a)
(i)
Except as provided in Subsection
(5)(a)(ii)
, each department shall
compensate each exempt employee who works overtime by granting the employee
time off at the rate of one hour off for each hour of overtime worked.
(ii)
The director of the division may grant limited exceptions to the compensation
requirement described in Subsection
(5)(a)(i)
, where work circumstances dictate,
by authorizing a department to pay an exempt employee for overtime worked at
the employee's regular hourly wage if that department has funds available.
(b)
(i)
Each department shall:
(A)
establish in its written human resource policies a uniform annual date for each
division that is at the end of any pay period; and
(B)
communicate the uniform annual date to its employees.
(ii)
If any department fails to establish a uniform annual date as required by this
Subsection
(5)
, the director of the division, in conjunction with the director of the
Division of Finance, shall establish the date for that department.
(c)
The overtime authorized for an exempt employee under this Subsection
(5)
is not an
entitlement, a benefit, or a vested right.
(d)
At the end of the overtime year, upon transfer to another department at any time, and
upon termination, retirement, or other situations where the employee will not return
to work before the end of the overtime year:
(i)
any of an exempt employee's overtime that is more than the maximum established
by division rule lapses; and
(ii)
unless authorized by the director of the division under Subsection
(5)(a)(ii)
, a
department may not compensate the exempt employee for that lapsed overtime by
paying the employee for the overtime or by granting the employee time off for the
lapsed overtime.
(e)
Before working any overtime, each exempt employee shall obtain authorization to
work overtime from the exempt employee's immediate supervisor.
(f)
If a department pays an exempt employee for overtime under authorization from the
director of the division, that department shall charge that payment to that
department's budget in the pay period earned.
(6)
The division shall:
(a)
ensure that the provisions of the FLSA and this section are implemented throughout
state government;
(b)
determine, for each state employee, whether the employee is exempt, nonexempt,
law enforcement, or has some other status under the FLSA;
(c)
in coordination with modifications to the systems operated by the Division of
Finance, make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act:
(i)
establishing procedures for recording overtime worked that comply with FLSA
requirements;
(ii)
establishing requirements governing overtime worked while traveling and
procedures for recording that overtime that comply with FLSA requirements;
(iii)
establishing requirements governing overtime worked if the employee is "on
call" and procedures for recording that overtime that comply with FLSA
requirements;
(iv)
establishing requirements governing overtime worked while an employee is
being trained and procedures for recording that overtime that comply with FLSA
requirements;
(v)
subject to the FLSA and Subsection
(2)
, establishing the maximum number of
hours that a nonexempt employee may accrue before a department is required to
pay the employee for the overtime worked;
(vi)
subject to the FLSA, establishing the maximum number of overtime hours for an
exempt employee that do not lapse; and
(vii)
establishing procedures for adjudicating appeals of an FLSA determination
made by the division as required by this section;
(d)
monitor departments for compliance with the FLSA; and
(e)
recommend to the Legislature and the governor any statutory changes necessary
because of federal government action.
(7)
(a)
In coordination with the procedures for recording overtime worked established in
rule by the division, the Division of Finance shall modify its payroll and human
resource systems to accommodate those procedures.
(b)
Notwithstanding the procedures and requirements of Title 63G, Chapter 4,
Administrative Procedures Act, Section
63A-17-602
, and Section
67-19a-301
, an
employee who is aggrieved by the FLSA designation made by the division as
required by this section may appeal that determination to the director of the division
by following the procedures and requirements established in division rule.
(c)
Upon receipt of an appeal under this section, the director shall notify the executive
director of the employee's department that the appeal has been filed.
(d)
If the employee is aggrieved by the decision of the director, the employee shall
appeal that determination to the Department of Labor, Wage and Hour Division,
according to the procedures and requirements of federal law.
Section 3. Section
63J-1-602.1
is amended to read:
63J-1-602.1
. List of nonlapsing appropriations from accounts and funds.
Appropriations made from the following accounts or funds are nonlapsing:
(1)
The Native American Repatriation Restricted Account created in Section
9-9-407
.
(2)
Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as
provided under Title
9, Chapter 23
, Pete Suazo Utah Athletic Commission Act.
(3)
Funds collected for directing and administering the C-PACE district created in Section
11-42a-106
.
(4)
Money received by the Utah Inland Port Authority, as provided in Section
11-58-105
.
(5)
The Commerce Electronic Payment Fee Restricted Account created in Section
13-1-17
.
(6)
The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section
19-2a-106
.
(7)
The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
Section
19-5-126
.
(8)
State funds for matching federal funds in the Children's Health Insurance Program as
provided in Section
26B-3-906
.
(9)
Funds collected from the program fund for local health department expenses incurred in
responding to a local health emergency under Section
26B-7-111
.
(10)
The Technology Development Restricted Account created in Section
31A-3-104
.
(11)
The Criminal Background Check Restricted Account created in Section
31A-3-105
.
(12)
The Captive Insurance Restricted Account created in Section
31A-3-304
, except to the
extent that Section
31A-3-304
makes the money received under that section free revenue.
(13)
The Title Licensee Enforcement Restricted Account created in Section
31A-23a-415
.
(14)
The Health Insurance Actuarial Review Restricted Account created in Section
31A-30-115
.
(15)
The State Mandated Insurer Payments Restricted Account created in Section
31A-30-118
.
(16)
The Insurance Fraud Investigation Restricted Account created in Section
31A-31-108
.
(17)
The Underage Drinking Prevention Media and Education Campaign Restricted
Account created in Section
32B-2-306
.
(18)
The School Readiness Restricted Account created in Section
35A-15-203
.
(19)
Money received by the Utah State Office of Rehabilitation for the sale of certain
products or services, as provided in Section
35A-13-202
.
(20)
The Property Loss Related to Homelessness Compensation Enterprise Fund created in
Section
35A-16-212
.
(21)
The Homeless Shelter Cities Mitigation Restricted Account created in Section
35A-16-402
.
(22)
The Oil and Gas Administrative Penalties Account created in Section
40-6-11
.
(23)
The Oil and Gas Conservation Account created in Section
40-6-14.5
.
(24)
The Division of Oil, Gas, and Mining Restricted account created in Section
40-6-23
.
(25)
The Electronic Payment Fee Restricted Account created by Section
41-1a-121
to the
Motor Vehicle Division.
(26)
The License Plate Restricted Account created by Section
41-1a-122
.
(27)
The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
created by Section
41-3-110
to the State Tax Commission.
(28)
The State Disaster Recovery Restricted Account to the Division of Emergency
Management, as provided in Section
53-2a-603
.
(29)
The Disaster Response, Recovery, and Mitigation Restricted Account created in
Section
53-2a-1302
.
(30)
The Emergency Medical Services Critical Needs Account created in Section
53-2d-110
.
(31)
The Department of Public Safety Restricted Account to the Department of Public
Safety, as provided in Section
53-3-106
.
(32)
The Utah Highway Patrol Aero Bureau Restricted Account created in Section
53-8-303
.
(33)
The DNA Specimen Restricted Account created in Section
53-10-407
.
(34)
The Technical Colleges Capital Projects Fund created in Section
53H-9-605
.
(35)
The Higher Education Capital Projects Fund created in Section
53H-9-502
.
(36)
A certain portion of money collected for administrative costs under the School
Institutional Trust Lands Management Act, as provided under Section
53C-3-202
.
(37)
The Public Utility Regulatory Restricted Account created in Section
54-5-1.5
, subject
to Subsection
54-5-1.5(4)(d)
.
(38)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-3a-105
.
(39)
Certain fines collected by the Division of Professional Licensing for violation of
unlawful or unprofessional conduct that are used for education and enforcement
purposes, as provided in Section
58-17b-505
.
(40)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-22-104
.
(41)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-55-106
.
(42)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-56-3.5
.
(43)
Certain fines collected by the Division of Professional Licensing for use in education
and enforcement of the Security Personnel Licensing Act, as provided in Section
58-63-103
.
(44)
The Relative Value Study Restricted Account created in Section
59-9-105
.
(45)
The Cigarette Tax Restricted Account created in Section
59-14-204
.
(46)
Funds paid to the Division of Real Estate for the cost of a criminal background check
for a mortgage loan license, as provided in Section
61-2c-202
.
(47)
Funds paid to the Division of Real Estate for the cost of a criminal background check
for principal broker, associate broker, and sales agent licenses, as provided in Section
61-2f-204
.
(48)
Certain funds donated to the Department of Health and Human Services, as provided
in Section
26B-1-202
.
(49)
Certain funds donated to the Division of Child and Family Services, as provided in
Section
80-2-404
.
(50)
Funds collected by the Office of Administrative Rules for publishing, as provided in
Section
63G-3-402
.
(51)
The Immigration Act Restricted Account created in Section
63G-12-103
.
(52)
Money received by the military installation development authority, as provided in
Section
63H-1-504
.
(53)
The Unified Statewide 911 Emergency Service Account created in Section
63H-7a-304
.
(54)
The Utah Statewide Radio System Restricted Account created in Section
63H-7a-403
.
(55)
The Utah Capital Investment Restricted Account created in Section
63N-6-204
.
(56)
The Motion Picture Incentive Account created in Section
63N-8-103
.
(57)
Funds collected by the housing of state probationary inmates or state parole inmates, as
provided in Subsection
64-13e-104(2)
.
(58)
Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and
State Lands, as provided in Section
65A-8-103
.
(59)
The following funds or accounts created in Section
72-2-124
:
(a)
Transportation Investment Fund of 2005;
(b)
Transit Transportation Investment Fund;
(c)
Cottonwood Canyons Transportation Investment Fund;
(d)
Active Transportation Investment Fund; and
(e)
Commuter Rail Subaccount.
(60)
The Amusement Ride Safety Restricted Account, as provided in Section
72-16-204
.
(61)
Certain funds received by the Office of the State Engineer for well drilling fines or
bonds, as provided in Section
73-3-25
.
(62)
The Water Resources Conservation and Development Fund, as provided in Section
73-23-2
.
(63)
Award money under the State Asset Forfeiture Grant Program, as provided under
Section
77-11b-403
.
(64)
Funds donated or paid to a juvenile court by private sources, as provided in Subsection
78A-6-203(1)(c)
.
(65)
Fees for certificate of admission created under Section
78A-9-102
.
(66)
Funds collected for adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(67)
Funds collected for indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah
Indigent Defense Commission.
(68)
The Utah Geological Survey Restricted Account created in Section
79-3-403
.
(69)
Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State Park,
and Green River State Park, as provided under Section
79-4-403
.
(70)
Certain funds received by the Division of State Parks from the sale or disposal of
buffalo
bison
, as provided under Section
79-4-1001
.
Section 4. Section
73-1-22
is enacted to read:
73-1-22
. Litigation expenses.
The Department of Natural Resources may fund general litigation expenses and other
costs incurred by the state related to litigation concerning the state's interests in water,
including interests related to conservation, the right to use water, and the development of water
resources.
Section 5. Section
73-2-11
is amended to read:
73-2-11
. Records -- Certified copies -- Evidence.
(1)
The state engineer shall keep on file in the state engineer's office
a
full and proper
records
record, in physical or electronic form,
of the state engineer's work, including
all
field notes, computations and facts made or collected by the state engineer, all of which
shall be part of the records of the state engineer's office and the property of the state. All
records, maps and papers
the following made or collected by the state engineer:
(a)
a field note;
(b)
a computation; or
(c)
a fact.
(2)
Subject to Subsection
(3)
, a record, including a map or document, whether physical or
electronic,
recorded or filed in the office of the state engineer
shall be open to the public
during business hours
is a public record
.
(3)
A record described in Subsection
(1)
or
(2)
is:
(a)
a record of the state engineer's office;
(b)
property of the state; and
(c)
made public by the state engineer, except a record classified as private, controlled, or
protected in accordance with Title 63G, Chapter 2, Government Records Access and
Management Act, and this title.
(4)
The office of the state engineer is
hereby declared to be
an office of public record, and
none of the files, records or documents shall be removed therefrom
a file or record may
not be removed from the office of the state engineer
, except in the custody of the state
engineer or one of the state engineer's deputies.
Certified copies of any record or
document shall be furnished by the state engineer
(5)
(a)
The state engineer shall furnish a certified copy of a record
on demand, upon
payment of the reasonable cost of making the
same
certified copy
, together with the
legal fee for certification.

Such copies shall be

(b)
A certified copy under this Subsection
(5)
is
competent evidence, and
shall have
has

the same force and effect as the
originals
original
.
Section 6. Section
73-3-8
is amended to read:
73-3-8
. Approval or rejection of application -- Requirements for approval --
Application for specified period of time -- Filing of royalty contract for removal of salt or
minerals -- Request for agency action.
(1)
(a)
It shall be the duty of the state engineer to
The state engineer shall
approve an
application if there is reason to believe that:
(i)
for an application to appropriate, there is unappropriated water in the proposed
source;
(ii)
the proposed use will not impair existing rights or interfere with the more
beneficial use of the water;
(iii)
the proposed plan:
(A)
is physically and economically feasible, unless the application is filed by the
United States Bureau of Reclamation; and
(B)
would not prove detrimental to the public welfare;
(iv)
the applicant has the financial ability to complete the proposed works;
(v)
the application was filed in good faith and not for purposes of speculation or
monopoly; and
(vi)
if applicable, the application complies with a groundwater management plan
adopted under Section
73-5-15
.
(b)
If the state engineer, because of information in the state engineer's possession
obtained either by the state engineer's own investigation or otherwise, has reason to
believe that an application will interfere with the water's more beneficial use for
irrigation, municipal and industrial, domestic or culinary, stock watering, power or
mining development, or manufacturing, or will unreasonably affect public recreation
or the natural stream environment, or will prove detrimental to the public welfare, the
state engineer shall withhold approval or rejection of the application until the state
engineer has investigated the matter.
(c)
If an application does not meet the requirements of this section, it shall be rejected.
(2)
(a)
An application to appropriate water for industrial, power, mining development,
manufacturing purposes, agriculture, or municipal purposes may be approved for a
specific and certain period from the time the water is placed to beneficial use under
the application, but in no event may an application be granted for a period of time
less than that ordinarily needed to satisfy the essential and primary purpose of the
application or until the water is no longer available as determined by the state
engineer.
(b)
At the expiration of the period fixed by the state engineer the water shall revert to the
public and is subject to appropriation as provided by this title.
(c)
No later than 60 calendar days before the expiration date of the fixed time period, the
state engineer shall send notice by mail or by any form of electronic communication
through which receipt is verifiable, to the applicant of record.
(d)
Except as provided by Subsection
(2)(e)
, the state engineer may extend any limited
water right upon a showing that:
(i)
the essential purpose of the original application has not been satisfied;
(ii)
the need for an extension is not the result of any default or neglect by the
applicant; and
(iii)
the water is still available.
(e)
An extension may not exceed the time necessary to satisfy the primary purpose of the
original application.
(f)
A request for extension of the fixed time period must be filed in writing in the office
of the state engineer on or before the expiration date of the application.
(3)
(a)
Before the approval of any application to divert water from navigable lakes or
streams of the state that contemplates the recovery of salts and other minerals or
elements, as defined in Section
65A-17-101
, therefrom by precipitation or otherwise,
the applicant shall file with the state engineer a copy of:
(i)
a contract for the payment of royalties to the state; and
(ii)
any mineral lease.
(b)
The approval of an application shall be reversed if the applicant fails to comply with
terms of the royalty contract or mineral lease.
(b)
Upon written notice to the state engineer of termination or noncompliance of a
royalty contract or mineral lease described in Subsection
(3)(a)
, the state engineer
shall:
(i)
reverse the approval of an application; or
(ii)
indicate on the water right in the records of the state engineer the default if the
written notice states that the royalty contract or mineral lease has a reversionary
provision related to the water right.
(4)
(a)
The state engineer shall investigate all temporary change applications.
(b)
The state engineer shall:
(i)
approve the temporary change if the state engineer finds there is reason to believe
that the temporary change will not impair an existing right; and
(ii)
deny the temporary change if the state engineer finds there is reason to believe the
temporary change would impair an existing right.
(5)
(a)
With respect to a change application for a permanent or fixed time change:
(i)
the state engineer shall follow the same procedures provided in this title for
approving an application to appropriate water; and
(ii)
the rights and duties of a change applicant are the same as the rights and duties of
a person who applies to appropriate water under this title.
(b)
The state engineer may waive notice for a permanent or fixed time change
application if the application only involves a change in point of diversion of 660 feet
or less.
(c)
The state engineer may condition approval of a change application, including to:
(i)
prevent an enlargement of the quantity of water depleted by the nature of the
proposed use when compared with the nature of the currently approved use of
water proposed to be changed; and
(ii)
ensure that the recognition and subsequent use of saved water, as defined in
Section
73-3-3
:
(A)
is quantified, reported, and verified;
(B)
does not lead to an enlargement of the depletion or diversion amounts in the
underlying water right that serves as the basis of the saved water, or an increase
in the authorized number of irrigated acres unless depletion is accounted for
and regulated in the condition;
(C)
is limited to the net decrease in depletion and net reduction in diversion of the
underlying water right that serves as the basis of the saved water;
(D)
is limited to the volume of water that will be sustained over time from the net
decrease in depletion or net reduction in diversion of the underlying water right
that serves as the basis of the saved water;
(E)
does not violate an existing water agreement; and
(F)
when based solely on a net reduction in diversion, the subsequent use is
limited to nonconsumptive beneficial uses and does not increase the depletion
allowed by the underlying water right that serves as the basis of the saved
water or otherwise cause quantity impairment to an existing water right when
the saved water is beneficially used separate from the underlying water right.
(d)
Except for an application proposing to quantify saved water, a condition described in
Subsection
(5)(c)
may not include a reduction in the currently approved diversion
rate of water under the water right identified in the change application solely to
account for the difference in depletion under the nature of the proposed use when
compared with the nature of the currently approved use.
(6)
(a)
Except as provided in Subsection
(6)(b)
, the state engineer shall reject a
permanent or fixed time change application if the person proposing to make the
change is unable to meet the burden described in Subsection
73-3-3(5)
.
(b)
If otherwise proper, the state engineer may approve a change application upon one or
more of the following conditions:
(i)
for part of the water involved;
(ii)
that the applicant acquire a conflicting right; or
(iii)
that the applicant provide and implement a plan approved by the state engineer to
mitigate impairment of an existing right.
(c)
(i)
There is a rebuttable presumption of quantity impairment, as defined in Section
73-3-3
, to the extent that, for a period of at least seven consecutive years, a portion
of the right identified in a change application has not been:
(A)
diverted from the approved point of diversion; or
(B)
beneficially used at the approved place of use.
(ii)
The rebuttable presumption described in Subsection
(6)(c)(i)
does not apply if the
beneficial use requirement is excused by:
(A)
Subsection
73-1-4(2)(e)
;
(B)
an approved nonuse application under Subsection
73-1-4(2)(b)
;
(C)
Subsection
73-3-30(7)
; or
(D)
the passage of time under Subsection
73-1-4(2)(c)(i)
.
(d)
The state engineer may not consider quantity impairment based on the conditions
described in Subsection
(6)(c)
unless the issue is raised in a:
(i)
timely protest that identifies which of the protestant's existing rights the protestant
reasonably believes will experience quantity impairment; or
(ii)
written notice provided by the state engineer to the applicant within 90 days after
the change application is filed.
(e)
The written notice described in Subsection
(6)(d)(ii)
shall:
(i)
specifically identify an existing right the state engineer reasonably believes may
experience quantity impairment; and
(ii)
be mailed to the owner of an identified right, as shown by the state engineer's
records, if the owner has not protested the change application.
(f)
The state engineer is not required to include all rights the state engineer believes may
be impaired by the proposed change in the written notice described in Subsection
(6)(d)(ii)
.
(g)
The owner of a right who receives the written notice described in Subsection
(6)(d)(ii)
may not become a party to the administrative proceeding if the owner has
not filed a timely protest.
(h)
If a change applicant, the protestants, and the persons identified by the state engineer
under Subsection
(6)(d)(ii)

(6)(d)(i)
come to a written agreement regarding how the
issue of quantity impairment shall be mitigated, the state engineer may incorporate
the terms of the agreement into a change application approval.
Section 7. Section
73-3-30
is amended to read:
73-3-30
. Change application for an instream flow -- Change application for
delivery to a reservoir.
(1)
As used in this section:
(a)
"Colorado River System" means the same as that term is defined in Sections
73-12a-2

and
73-13-10
.
(b)
"Division" means the Division of Wildlife Resources created in Section
23A-2-201
,
the Division of State Parks created in Section
79-4-201
, or the Division of Forestry,
Fire, and State Lands created in Section
65A-1-4
.
(c)
"Person entitled to the use of water" means the same as that term is defined in
Section
73-3-3
.
(d)
"Sovereign lands" means the same as that term is defined in Section
65A-1-1
.
(e)
"Wildlife" means species of animals, including mammals, birds, fish, reptiles,
amphibians, mollusks, and crustaceans, that are protected or regulated by a statute,
law, regulation, ordinance, or administrative rule.
(2)
(a)
Pursuant to Section
73-3-3
, a division may file a permanent change application, a
fixed time change application, or a temporary change application, or a person entitled
to the use of water may file a fixed time change application or a temporary change
application, to provide water within the state for:
(i)
an instream flow within a specified section of a natural or altered stream; or
(ii)
use on sovereign lands.
(b)
The state engineer may not approve a change application filed under this Subsection
(2)
unless the proposed instream flow or use on sovereign lands will contribute to:
(i)
the propagation or maintenance of wildlife;
(ii)
the management of state parks; or
(iii)
the reasonable preservation or enhancement of the natural aquatic environment.
(c)
A division may file a change application on:
(i)
a
perfected
water right:
(A)
presently owned by the division;
(B)
purchased by the division for the purpose of providing water for an instream
flow or use on sovereign lands, through funding provided for that purpose by
legislative appropriation; or
(C)
secured by lease, agreement, gift, exchange, or contribution; or
(ii)
an appurtenant water right acquired with the acquisition of real property by the
division.
(d)
A division may:
(i)
purchase a water right for the purposes described in Subsection
(2)(a)
only with
funds specifically appropriated by the Legislature for water rights purchases; or
(ii)
accept a donated water right without legislative approval.
(e)
A division may not acquire water rights by eminent domain for an instream flow, use
on sovereign lands, or for any other purpose.
(3)
(a)
A person entitled to the use of water shall obtain a division director's approval of
the proposed change before filing a fixed time change application or a temporary
change application with the state engineer.
(b)
By approving a proposed fixed time change application or temporary change
application, a division director attests that the water that is the subject of the
application can be used consistent with the statutory mandates of the director's
division.
(4)
(a)
Pursuant to Section
73-3-3
, a person entitled to the use of water may file a fixed
time change application or a temporary change application for a project to deliver
water to a reservoir located partially or entirely within the Colorado River System in
the state in accordance with:
(i)
Colorado River Drought Contingency Plan Authorization Act, Public Law 116-14;
(ii)
a water conservation program funded by the Bureau of Reclamation; or
(iii)
a water conservation program authorized by the state.
(b)
Before filing a change application under this Subsection
(4)
, a person entitled to the
use of water shall obtain the approval from the executive director of the Colorado
River Authority of Utah, appointed under Section
63M-14-401
.
(c)
By approving a proposed fixed time change application or temporary change
application, the executive director of the Colorado River Authority of Utah attests
that the water that is the subject of the application can be used consistent with this
section.
(5)
In addition to the requirements of Section
73-3-3
, an application authorized by this
section shall include:
(a)
a legal description of:
(i)
the segment of the natural or altered stream that will be the place of use for an
instream flow;
(ii)
the location where the water will be used on sovereign lands; or
(iii)
the reservoir located partially or entirely within the Colorado River System in the
state that the water will be delivered to; and
(b)
appropriate studies, reports, or other information required by the state engineer
demonstrating:
(i)
the projected benefits to the public resulting from the change; and
(ii)
the necessity for the proposed instream flow or use on sovereign lands.
(6)
A person may not appropriate unappropriated water under Section
73-3-2
for the
purpose of providing an instream flow or use on sovereign lands.
(7)
Water used in accordance with this section is considered to be beneficially used, as
required by Section
73-3-1
.
(8)
A physical structure or physical diversion from the stream is not required to implement
a change under this section.
(9)
An approved change application described in this section does not create a right of
access across private property or allow any infringement of a private property right.
Section 8. Section
73-10-34
is amended to read:
73-10-34
. Secondary water metering -- Loans and grants.
(1)
As used in this section:
(a)
"Agriculture use" means water used on land assessed under Title 59, Chapter 2, Part
5, Farmland Assessment Act.
(b)
(i)
"Commercial user" means a secondary water user that is a place of business.
(ii)
"Commercial user" does not include a multi-family residence, an agricultural
user, or a customer that falls within the industrial or institutional classification.
(c)
"Critical area" means an area:
(i)
serviced by one of the four largest water conservancy districts, as defined in
Section
17B-1-102
, measured by operating budgets; or
(ii)
within the Great Salt Lake basin, which includes:
(A)
the surveyed meander line of the Great Salt Lake;
(B)
the drainage areas of the Bear River or the Bear River's tributaries;
(C)
the drainage areas of Bear Lake or Bear Lake's tributaries;
(D)
the drainage areas of the Weber River or the Weber River's tributaries;
(E)
the drainage areas of the Jordan River or the Jordan River's tributaries;
(F)
the drainage areas of Utah Lake or Utah Lake's tributaries;
(G)
other water drainages lying between the Bear River and the Jordan River that
are tributary to the Great Salt Lake and not included in the drainage areas
described in Subsections
(1)(c)(ii)(B)
through
(F)
; and
(H)
the drainage area of Tooele Valley.
(d)
"Full metering" means that use of secondary water is accurately metered by a meter
that is installed and maintained on every secondary water connection of a secondary
water supplier.
(e)
(i)
"Industrial user" means a secondary water user that manufactures or produces
materials.
(ii)
"Industrial user" includes a manufacturing plant, an oil and gas producer, and a
mining company.
(f)
(i)
"Institutional user" means a secondary water user that is dedicated to public
service, regardless of ownership.
(ii)
"Institutional user" includes a school, church, hospital, park, golf course, and
government facility.
(g)
"Power generation use" means water used in the production of energy, such as use in
an electric generation facility, natural gas refinery, or coal processing plant.
(h)
(i)
"Residential user" means a secondary water user in a residence.
(ii)
"Residential user" includes a single-family or multi-family home, apartment,
duplex, twin home, condominium, or planned community.
(i)
"Secondary water" means water that is:
(i)
not culinary or water used on land assessed under Title 59, Chapter 2, Part 5,
Farmland Assessment Act; and
(ii)
delivered to and used by an end user for the irrigation of landscaping or a garden.
(j)
"Secondary water connection" means the location at which the water leaves the
secondary water supplier's pipeline and enters into the remainder of the pipes that are
owned by another person to supply water to an end user.
(k)
"Secondary water supplier" means an entity that supplies pressurized secondary
water.
(l)
"Small secondary water retail supplier" means an entity that:
(i)
supplies pressurized secondary water only to the end user of the secondary water;
and
(ii)
(A)
is a city or town; or
(B)
supplies 5,000 or fewer secondary water connections.
(2)
(a)
(i)
A secondary water supplier that supplies secondary water within a county of
the first or second class and begins design work for new service on or after April
1, 2020, to a commercial, industrial, institutional, or residential user shall meter
the use of pressurized secondary water by the users receiving that new service.
(ii)
A secondary water supplier that supplies secondary water within a county of the
third, fourth, fifth, or sixth class and begins design work for new service on or
after May 4, 2022, to a commercial, industrial, institutional, or residential user
shall meter the use of pressurized secondary water by the users receiving that new
service.
(b)
By no later than January 1, 2030, a secondary water supplier shall install and
maintain a meter of the use of pressurized secondary water by each user receiving
secondary water service from the secondary water supplier.
(c)
Beginning January 1, 2022, a secondary water supplier shall establish a meter
installation reserve for metering installation and replacement projects.
(d)
A secondary water supplier, including a small secondary water retail supplier, may
not raise the rates charged for secondary water:
(i)
by more than 10% in a calendar year for costs associated with metering secondary
water unless the rise in rates is necessary because the secondary water supplier
experiences a catastrophic failure or other similar event; or
(ii)
unless, before raising the rates on the end user, the entity charging the end user
provides a statement explaining the basis for why the needs of the secondary
water supplier required an increase in rates.
(e)
(i)
A secondary water supplier that provides pressurized secondary water to a
commercial, industrial, institutional, or residential user shall develop a plan, or if
the secondary water supplier previously filed a similar plan, update the plan for
metering the use of the pressurized water.
(ii)
The plan required by this Subsection
(2)(e)
shall be filed or updated with the
Division of Water Resources by no later than December 31, 2025, and address the
process the secondary water supplier will follow to implement metering, including:
(A)
the costs of full metering by the secondary water supplier;
(B)
how long it would take the secondary water supplier to complete full
metering, including an anticipated beginning date and completion date, except
a secondary water supplier shall achieve full metering by no later than January
1, 2030; and
(C)
how the secondary water supplier will finance metering.
(3)
A secondary water supplier shall on or before March 31 of each year, report to the
Division of Water Rights:
(a)
for commercial, industrial, institutional, and residential users whose pressurized
secondary water use is metered, the number of acre feet of pressurized secondary
water the secondary water supplier supplied to the commercial, industrial,
institutional, and residential users during the preceding 12-month period;
(b)
the number of secondary water meters within the secondary water supplier's service
boundary;
(c)
a description of the secondary water supplier's service boundary;
(d)
the number of secondary water connections in each of the following categories
through which the secondary water supplier supplies pressurized secondary water:
(i)
commercial;
(ii)
industrial;
(iii)
institutional; and
(iv)
residential;
(e)
the total volume of water that the secondary water supplier receives from the
secondary water supplier's sources; and
(f)
the dates of service during the preceding 12-month period in which the secondary
water supplier supplied pressurized secondary water.
(4)
(a)
Beginning July 1, 2019, the Board of Water Resources may make
up to
$10,000,000 in
low-interest loans available each year:
(i)
from the Water Resources Conservation and Development Fund, created in
Section
73-10-24
; and
(ii)
for financing the cost of secondary water metering.
(b)
The Division of Water Resources and the Board of Water Resources shall make rules
in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
establishing the criteria and process for receiving a loan described in this Subsection
(4)
, except the rules may not include prepayment penalties.
(5)
(a)
Beginning July 1, 2021, subject to appropriation, the Division of Water Resources
may make matching grants each year for financing the cost of secondary water
metering for a commercial, industrial, institutional, or residential user by a small
secondary water retail supplier that:
(i)
is not for new service described in Subsection
(2)(a)
; and
(ii)
matches the amount of the grant.
(b)
For purposes of issuing grants under this section, the division shall prioritize the
small secondary water retail suppliers that can demonstrate the greatest need or
greatest inability to pay the entire cost of installing secondary water meters.
(c)
The amount of a grant under this Subsection
(5)
may not:
(i)
exceed 50% of the small secondary water retail supplier's cost of installing
secondary water meters; or
(ii)
supplant federal, state, or local money previously allocated to pay the small
secondary water retail supplier's cost of installing secondary water meters.
(d)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
Board of Water Resources shall make rules establishing:
(i)
the procedure for applying for a grant under this Subsection
(5)
; and
(ii)
how a small secondary water retail supplier can establish that the small secondary
water retail supplier meets the eligibility requirements of this Subsection
(5)
.
(6)
Nothing in this section affects a water right holder's obligation to measure and report
water usage as described in Sections
73-5-4
and
73-5-8
.
(7)
If a secondary water supplier fails to comply with Subsection
(2)(b)
, the secondary
water supplier:
(a)
beginning January 1, 2030, may not receive state money for water related purposes
until the secondary water supplier completes full metering; and
(b)
is subject to an enforcement action of the state engineer in accordance with
Subsection
(8)
.
(8)
(a)
(i)
The state engineer shall commence an enforcement action under this
Subsection
(8)
if the state engineer receives a referral from the director of the
Division of Water Resources.
(ii)
The director of the Division of Water Resources shall submit a referral to the state
engineer if the director:
(A)
finds that a secondary water supplier fails to fully meter secondary water as
required by this section; and
(B)
determines an enforcement action is necessary to conserve or protect a water
resource in the state.
(b)
To commence an enforcement action under this Subsection
(8)
, the state engineer
shall issue a notice of violation that includes notice of the administrative fine to
which a secondary water supplier is subject.
(c)
The state engineer's issuance and enforcement of a notice of violation is exempt from
Title 63G, Chapter 4, Administrative Procedures Act.
(d)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
state engineer shall make rules necessary to enforce a notice of violation, that
includes:
(i)
provisions consistent with this Subsection
(8)
for enforcement of the notice if a
secondary water supplier to whom a notice is issued fails to respond to the notice
or abate the violation;
(ii)
the right to a hearing, upon request by a secondary water supplier against whom
the notice is issued; and
(iii)
provisions for timely issuance of a final order after the secondary water supplier
to whom the notice is issued fails to respond to the notice or abate the violation, or
after a hearing held under Subsection
(8)(d)(ii)
.
(e)
A person may not intervene in an enforcement action commenced under this section.
(f)
After issuance of a final order under rules made pursuant to Subsection
(8)(d)
, the
state engineer shall serve a copy of the final order on the secondary water supplier
against whom the order is issued by:
(i)
personal service under Utah Rules of Civil Procedure, Rule 5; or
(ii)
certified mail.
(g)
(i)
The state engineer's final order may be reviewed by trial de novo by the court
with jurisdiction in Salt Lake County or the county where the violation occurred.
(ii)
A secondary water supplier shall file a petition for judicial review of the state
engineer's final order issued under this section within 20 days from the day on
which the final order was served on the secondary water supplier.
(h)
The state engineer may bring suit in a court
of competent
with
jurisdiction to
enforce a final order issued under this Subsection
(8)
.
(i)
If the state engineer prevails in an action brought under Subsection
(8)(g)
or
(h)
, the
state may recover court costs and a reasonable attorney fee.
(j)
As part of a final order issued under this Subsection
(8)
, the state engineer shall order
that a secondary water supplier to whom an order is issued pay an administrative fine
equal to:
(i)
$10 for each non-metered secondary water connection of the secondary water
supplier for failure to comply with full metering by January 1, 2030;
(ii)
$20 for each non-metered secondary water connection of the secondary water
supplier for failure to comply with full metering by January 1, 2031;
(iii)
$30 for each non-metered secondary water connection of the secondary water
supplier for failure to comply with full metering by January 1, 2032;
(iv)
$40 for each non-metered secondary water connection of the secondary water
supplier for failure to comply with full metering by January 1, 2033; and
(v)
$50 for each non-metered secondary water connection of the secondary water
supplier for failure to comply with full metering by January 1, 2034, and for each
subsequent year the secondary water supplier fails to comply with full metering.
(k)
Money collected under this Subsection
(8)
shall be deposited into the Water
Resources Conservation and Development Fund, created in Section
73-10-24
.
(9)
A secondary water supplier located within a county of the fifth or sixth class is exempt
from Subsections
(2)(a)
, (2)(b), (2)(c), (2)(e), (7), and (8) if:
(a)
the owner or operator of the secondary water supplier seeks an exemption under this
Subsection
(9)
by establishing with the Division of Water Resources that the cost of
purchasing, installing, and upgrading systems to accept meters exceeds 25% of the
total operating budget of the owner or operator of the secondary water supplier;
(b)
the secondary water supplier agrees to not add a new secondary water connection to
the secondary water supplier's system on or after May 4, 2022;
(c)
within six months of when the secondary water supplier seeks an exemption under
Subsection
(9)(a)
, the secondary water supplier provides to the Division of Water
Resources a plan for conservation within the secondary water supplier's service area
that does not require metering;
(d)
the secondary water supplier annually reports to the Division of Water Resources on
the results of the plan described in Subsection
(9)(c)
; and
(e)
the secondary water supplier submits to evaluations by the Division of Water
Resources of the effectiveness of the plan described in Subsection
(9)(c)
.
(10)
A secondary water supplier is exempt from Subsections
(2)(a)
, (2)(b), (2)(c), (2)(e),
(7), and (8) to the extent that the secondary water supplier:
(a)
is unable to obtain a meter that a meter manufacturer will warranty because of the
water quality within a specific location served by the secondary water supplier;
(b)
submits reasonable proof to the Division of Water Resources that the secondary
water supplier is unable to obtain a meter as described in Subsection
(10)(a)
;
(c)
within six months of when the secondary water supplier submits reasonable proof
under Subsection
(10)(b)
, provides to the Division of Water Resources a plan for
conservation within the secondary water supplier's service area that does not require
metering;
(d)
annually reports to the Division of Water Resources on the results of the plan
described in Subsection
(10)(c)
; and
(e)
submits to evaluations by the Division of Water Resources of the effectiveness of the
plan described in Subsection
(10)(c)
.
(11)
A secondary water supplier that is located within a critical management area that is
subject to a groundwater management plan adopted or amended under Section
73-5-15

on or after May 1, 2006, is exempt from Subsections
(2)(a)
, (2)(b), (2)(c), (2)(e), (7), and
(8).
(12)
If a secondary water supplier is required to have a water conservation plan under
Section
73-10-32
, that water conservation plan satisfies the requirements of Subsection
(9)(c)
or
(10)(c)
.
(13)
(a)
Notwithstanding the other provisions of this section and unless exempt under
Subsection
(9)
, (10), or (11), to comply with this section, a secondary water supplier
is not required to meter every secondary water connection of the secondary water
supplier's system, but shall meter at strategic points of the system as approved by the
state engineer under this Subsection
(13)
if:
(i)
the system has no or minimal storage and relies primarily on stream flow;
(ii)
(A)
the majority of secondary water users on the system are associated with
agriculture use or power generation use; and
(B)
less than 50% of the secondary water is used by residential secondary water
users; or
(iii)
the system has a mix of pressurized lines and open ditches and:
(A)
1,000 or fewer users if any part of the system is within a critical area; or
(B)
2,500 or fewer users for a system not described in Subsection
(13)(a)(iii)(A)
.
(b)
(i)
A secondary water supplier may obtain the approval by the state engineer of
strategic points where metering is to occur as required under this Subsection
(13)

by filing an application with the state engineer in the form established by the state
engineer.
(ii)
The state engineer may by rule, made in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, establish procedures for approving strategic
points for metering under this Subsection
(13)
.
(14)
(a)
A contract entered into or renewed on or after July 1, 2025, between a secondary
water supplier and an end user shall allow for billing by tiered conservation rates.
(b)
Except as provided in Subsection
(14)(f)
, by no later than July 1, 2030, regardless of
whether the secondary water supplier is fully metered or has modified existing
contracts with end users, a secondary water supplier shall begin billing an end user
using a tiered conservation rate that considers:
(i)
revenue stability;
(ii)
water conservation; and
(iii)
cost of service.
(c)
A secondary water supplier may comply with Subsection
(14)(b)
by entering into a
contract with a third-party, including the public water system that serves an end user
of the secondary water supplier, to bill the end user according to end user's usage of
secondary water and the secondary water supplier's tiered conservation rate.
(d)
By no later than April 1, 2030, a secondary water supplier shall provide an
educational component for end users as determined by the division by rule made in
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, either
on a monthly statement or by an end user specific Internet portal that provides
information on the end user's usage more frequently than monthly.
(e)
A public water system:
(i)
shall enter into a contract with a secondary water supplier described in Subsection
(14)(c)
upon request from the secondary water supplier if the secondary water
supplier agrees to provide water use and other data necessary for accurate billing
in a file format compatible with the public water supplier's billing system;
(ii)
may collect the costs associated with billing on behalf of a secondary water
supplier under this section from the secondary water end users, including
reasonable administrative and overhead expenses; and
(iii)
shall, as the public water supplier and the secondary water supplier find
necessary or convenient, exchange with the secondary water supplier, for the
purpose of maintaining accurate records, relevant information with regard to an
end user of the secondary water supplier, such as:
(A)
a billing address;
(B)
an address where the secondary water is delivered;
(C)
a parcel identification number; and
(D)
ownership information.
(f)
(i)
A secondary water supplier is not required to bill an end user a tiered
conservation rate if the secondary water supplier is:
(A)
exempt from metering under Subsection
(9)
, (10), or (11); or
(B)
authorized to meter at strategic points of the system under Subsection
(13)
.
(ii)
Notwithstanding the other provisions of this section, on or after July 1, 2030, a
secondary water supplier with a tiered conservation rate under this Subsection
(14)

shall charge an end user at the lowest rate of the tiered conservation rate if the end
user is using a portion of the water to grow food, including growing a garden, fruit
trees, or pasture for grazing.
(g)
(i)
If a secondary water supplier violates this Subsection
(14)
on or after April 1,
2030, the secondary water supplier:
(A)
may not receive state money for water related purposes until the secondary
water supplier complies with this Subsection
(14)
; and
(B)
is subject to an enforcement action of the state engineer in accordance with
this Subsection
(14)(g)
.
(ii)
The state engineer shall commence an enforcement action under this Subsection
(14)(g)
if the state engineer receives a referral from the director of the Division of
Water Resources.
(iii)
The director of the Division of Water Resources shall submit a referral to the
state engineer if the director:
(A)
finds that a secondary water supplier fails to comply with this Subsection
(14)
;
and
(B)
determines an enforcement action is necessary to conserve or protect a water
resource in the state.
(iv)
To commence an enforcement action under this Subsection
(14)(g)
, the state
engineer shall issue a notice of violation that includes notice of the administrative
fine described in Subsection
(14)(g)(xiii)
to which a secondary water supplier is
subject.
(v)
The state engineer's issuance and enforcement of a notice of violation is exempt
from Title 63G, Chapter 4, Administrative Procedures Act.
(vi)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the state engineer shall make rules necessary to enforce a notice of violation, that
includes:
(A)
provisions consistent with this Subsection
(14)(g)
for enforcement of the
notice if a secondary water supplier to whom a notice is issued fails to respond
to the notice or abate the violation;
(B)
the right to a hearing, upon request by a secondary water supplier against
whom the notice is issued; and
(C)
provisions for timely issuance of a final order after the secondary water
supplier to whom the notice is issued fails to respond to the notice or abate the
violation, or after a hearing held under Subsection
(14)(g)(vi)(B)
.
(vii)
A person may not intervene in an enforcement action commenced under this
Subsection
(14)(g)
.
(viii)
After issuance of a final order under rules made pursuant to Subsection
(14)(g)(vi)
, the state engineer shall serve a copy of the final order on the
secondary water supplier against whom the order is issued by:
(A)
personal service under Utah Rules of Civil Procedure, Rule 5; or
(B)
certified mail.
(ix)
The state engineer's final order may be reviewed by trial de novo by a court with
jurisdiction in Salt Lake County or the county where the violation occurred.
(x)
A secondary water supplier shall file a petition for judicial review of the state
engineer's final order issued under this Subsection
(14)(g)
within 20 days from the
day on which the final order was served on the secondary water supplier.
(xi)
The state engineer may bring suit in a court to enforce a final order issued under
this Subsection
(14)(g)
.
(xii)
If the state engineer prevails in an action brought under Subsection
(14)(g)(x)
or
(xi)
, the state may recover court costs and reasonable attorney fees.
(xiii)
The administrative fine imposed under this section shall be an amount not to
exceed the sum of any money received by the secondary water supplier under this
section or Section
73-10-34.5
to fund costs related to metering.
(xiv)
Money collected under this Subsection
(14)
shall be deposited into the Water
Resources Conservation and Development Fund, created in Section
73-10-24
.
Section 9. Section
73-10-36
is amended to read:
73-10-36
. Division to provide technical assistance in local government planning.
(1)
As used in this section:
(a)
"Division" means the Division of Water Resources.
(b)
"General plan":
(i)
for a municipality, means the same as that term is defined in Section
10-20-102
;
and
(ii)
for a county, means the same as that term is defined in Section
17-79-102
.
(c)
"Local government" means a county or a municipality, as defined in Section
10-1-104
.
(d)
"Watershed council" means a council created under
Chapter 10g, Part 3, Watershed
Councils Act
.
(2)
The division shall provide technical assistance to a local government to support the
local government's adoption of a water use and preservation element in a general plan.
(3)
When consulted by a local government for information and technical resources
regarding regional water conservation goals under Subsection
10-20-404(2)(d)
or
17-79-403(2)(c)
17-79-403(2)(d)
, the division may seek input from the appropriate
watershed council or councils.
Section 10. Section
79-2-406
is amended to read:
79-2-406
. Wetlands -- In-lieu fee program study.
(1)
As used in this section, "committee" means the Natural Resources, Agriculture, and
Environment Interim Committee.
(2)
The department shall publish, on the department's website, the land use permits
collected by the Utah Geological Survey pursuant to Subsection
79-3-202(1)(q)
79-3-202(1)(t)
.
(3)
(a)
The department shall study and make recommendations to the committee on the
viability of an in-lieu fee program for wetland mitigation, including:
(i)
the viability of the state establishing and administering an in-lieu fee program; and
(ii)
the viability of the state partnering with a private organization to establish and
administer an in-lieu fee program.
(b)
As part of the study described in Subsection
(3)(a)
, the department shall consult with
public and private individuals and entities that may be necessary or helpful to the
establishment or administration of an in-lieu fee program for wetland mitigation,
which may include:
(i)
the Utah Department of Environmental Quality;
(ii)
the United States Army Corps of Engineers;
(iii)
the United States Fish and Wildlife Service;
(iv)
the United States Environmental Protection Agency; or
(v)
a non-profit entity that has experience with the establishment and administration
of in-lieu fee programs.
(c)
The department shall provide a report on the status of the department's study during
or before the committee's November interim meeting in 2022.
(d)
The department shall provide a final report of the department's study and
recommendations, including any recommended legislation, during or before the
committee's first interim meeting in 2023.
Section 11. Section
79-2-702
is amended to read:
79-2-702
. Division creation -- Purpose.
(1)
There is created within the department a Division of Law Enforcement.
(2)
Subject to the priorities defined by the director, the primary function of the division is to
enforce:
(a)
Title 23A, Wildlife Resources Act;
(b)
Title 41, Chapter 22, Off-highway Vehicles;
(c)
Title 65A, Forestry, Fire, and State Lands;
(d)
Title 73, Chapter 18, State Boating Act;
(e)
this title; and
(f)
an administrative rule enacted by
an advisory
a
board within
any
one
of the
department's divisions
or by one of the department's divisions
.
(3)
The division shall coordinate with county sheriffs, police, and other law enforcement
officers within a law enforcement jurisdiction the division operates to enforce this part.
(4)
This part does not limit or modify the powers and duties of other law enforcement
officers in the state.
Section 12. Section
79-3-202
is amended to read:
79-3-202
. Powers and duties of survey.
(1)
The survey shall:
(a)
assist and advise state and local agencies and state educational institutions on
geologic, paleontologic, and mineralogic subjects;
(b)
collect and distribute reliable information regarding the mineral industry and mineral
resources, topography, paleontology, and geology of the state;
(c)
survey the geology of the state, including mineral occurrences and the ores of metals,
energy resources, industrial minerals and rocks, mineral-bearing waters, and surface
and ground water resources, with special reference to
their
economic contents,
values, uses, kind, and availability
in order
to facilitate
their
economic use;
(d)
investigate the kind, amount, and availability of mineral substances contained in
lands owned and controlled by the state, to contribute to the most effective and
beneficial administration of
these
the
lands for the state;
(e)
determine and investigate areas of geologic and topographic hazards that could affect
the safety of, or cause economic loss to, the citizens of the state;
(f)
assist local and state agencies in
their
planning, zoning, and building regulation
functions by publishing maps, delineating appropriately wide special earthquake risk
areas, and, at the request of state agencies or other governmental agencies, review the
siting of critical facilities;
(g)
cooperate with state agencies, political subdivisions of the state, quasi-governmental
agencies, federal agencies, schools of higher education, and others in fields of mutual
concern, which may include field investigations and preparation, publication, and
distribution of reports and maps;
(h)
collect and preserve data pertaining to mineral resource exploration and development
programs and construction activities, such as claim maps, location of drill holes,
location of surface and underground workings, geologic plans and sections, drill logs,
and assay and sample maps, including the maintenance of a sample library of cores
and cuttings;
(i)
assist as requested by a state or local agency to measure, analyze, and report on the
quantity, quality, and seasonal and long-term viability of a groundwater and surface
water resource in the state;
(j)
provide data that supports scientific understanding, resource planning, and resource
development related to groundwater and surface water;
(k)
assess the function, distribution, and ecological characteristic of a wetland to
regional hydrology, historic change, and resource capacity to enhance resource
management or a planning effort;
(i)
(l)
study and analyze other scientific, economic, or aesthetic problems as, in the
judgment of the board, should be undertaken by the survey to serve the needs of the
state and to support the development of natural resources and
utilization
use
of lands
within the state;
(j)
(m)
prepare, publish, distribute, and sell maps, reports, and bulletins, embodying the
work accomplished by the survey, directly or in collaboration with others, and collect
and prepare exhibits of the geological and mineral resources of this state and interpret
their
the geological and mineral resources'
significance;
(k)
(n)
collect, maintain, and preserve data and information
in order
to accomplish the
purposes of this section and act as a repository for information concerning the
geology of this state;
(l)
(o)
stimulate research, study, and activities in the field of paleontology;
(m)
(p)
mark, protect, and preserve critical paleontological sites;
(n)
(q)
collect, preserve, and administer critical paleontological specimens until the
specimens are placed in a repository or curation facility;
(o)
(r)
administer critical paleontological site excavation records;
(p)
(s)
edit and publish critical paleontological records and reports; and
(q)
(t)
collect the land use permits described in Sections
10-20-611
and
17-79-608
.
(2)
(a)
The survey may maintain as confidential, and not as a public record, information
provided to the survey by any source.
(b)
The board shall adopt rules
in order
to determine whether to accept the information
described in Subsection
(2)(a)
and to maintain the confidentiality of the accepted
information.
(c)
The survey shall maintain information received from any source at the level of
confidentiality assigned to
it
the information
by the source.
(3)
Upon approval of the board, the survey shall undertake other activities consistent with
Subsection
(1)
.
(4)
(a)
Subject to the authority granted to the department, the survey may enter into
cooperative agreements with the entities specified in Subsection
(1)(g)
, if approved
by the board, and may accept or commit allocated or budgeted
funds
money
in
connection with
those
the
agreements.
(b)
The survey may undertake joint projects with private entities if:
(i)
the action is approved by the board;
(ii)
the projects are not inconsistent with the state's objectives; and
(iii)
the results of the projects are available to the public.
Section 13. Section
79-3-302
is amended to read:
79-3-302
. Members of board -- Qualifications and appointment -- Vacancies --
Organization -- Meetings -- Financial gain prohibited -- Expenses.
(1)
The board consists of
seven
eight
members appointed by the governor, with the advice
and consent of the Senate, in accordance with
Title 63G, Chapter 24, Part 2, Vacancies
.
(2)
In addition to the requirements of Section
79-2-203
, the members shall have the
following qualifications:
(a)
one member knowledgeable in the field of geology as applied to the practice of
civil
engineering
geology
;
(b)
four members knowledgeable and representative of various segments of the mineral
industry
or energy industry
throughout the state, such as hydrocarbons,
geothermal,
solid fuels, metals, and industrial minerals;
(c)
one member knowledgeable
of the economic or scientific interests of the mineral
industry in the state
about the economic and scientific focus of areas over which the
survey has duties or powers under Section
79-3-202
;
and
(d)
one member knowledgeable about groundwater or water resources; and
(d)
(e)
one member
who is
:

(i)
interested in the goals of the survey
;
and
(ii)
from the public at large.
(3)
The director of the School and Institutional Trust Lands Administration is an ex officio
member of the board but without
any
voting privileges.
(4)
(a)
Except as required by Subsection
(4)(b)
,
members are appointed for terms
the
governor shall appoint a member to a term
of four years.
(b)
Notwithstanding
the requirements of
Subsection
(4)(a)
, the governor shall, at the
time of appointment or reappointment, adjust the length of terms to ensure that the
terms of board members are staggered so that approximately half of the board is
appointed every two years.
(c)
When a vacancy occurs in the membership for any reason, the replacement shall be
appointed for the unexpired term by the governor with the advice and consent of the
Senate.
(5)
The board shall select from
its
the board's
members a chair and such officers and
committees as
it
the board
considers necessary.
(6)
(a)
The board shall hold meetings at least quarterly on
such dates as may be
dates
set
by
its
the board's
chair.
(b)
Special meetings may be held upon notice of the chair or by a majority of
its
the
board's
members.
(c)
A majority of the members of the board present at a meeting constitutes a quorum for
the transaction of business.
(7)
(a)
Members
A member
of the board may not obtain financial gain by reason of
information obtained during the course of
their
the member's
official duties.
(b)
A member shall comply with the conflict of interest provisions described in
Title
63G, Chapter 24, Part 3, Conflicts of Interest
.
(8)
A member may not receive compensation or benefits for the member's service, but may
receive per diem and travel expenses in accordance with:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules made by the Division of Finance pursuant to Sections
63A-3-106
and
63A-3-107
.
Section 14. Section
79-4-402
is amended to read:
79-4-402
. State Parks Restricted Account.
(1)
There is created within the General Fund a restricted account known as the State Parks
Restricted Account.
(2)
(a)
Except as provided in Subsection
(2)(b)
, the account consists of revenue from:
(i)
all
charges allowed under Section
79-4-203
;
(ii)
proceeds from the sale or disposal of
buffalo
bison
under Subsection
79-4-1001(2)(b)
;
(iii)
civil damages collected under Section
76-6-206.2
; and
(iv)
interest on money deposited in the account as follows:
(A)
25% of total interest beginning on July 1, 2025, through June 30, 2026;
(B)
50% of total interest beginning on July 1, 2026, through June 30, 2027;
(C)
75% of total interest beginning on July 1, 2027, through June 30, 2028; and
(D)
100% of total interest beginning on July 1, 2028, and each year thereafter.
(b)
The account
shall
may
not include revenue the division receives under Section
79-4-403
and Subsection
79-4-1001(2)(a)
.
(3)
The division shall use funds in this account for the purposes described in Section
79-4-203
.
Section 15. Section
79-4-1001
is amended to read:
79-4-1001
. Purchase, trade, sale, or disposal of bison -- Proceeds.
(1)
In accordance with a plan approved by the division to manage
buffalo
bison
herds on
Antelope Island, the division may purchase, trade, sell, or dispose of
buffalo
bison

obtained from Antelope Island through:
(a)
competitive bidding; or
(b)
a means as established by rule.
(2)
Proceeds received from the sale or disposal of
buffalo
bison
under this section shall be
deposited as follows:
(a)
the first $75,000 shall accrue to the division for the management of Antelope Island
buffalo
bison
herds as dedicated credits; and
(b)
proceeds in excess of $75,000 shall be deposited into the State Parks Restricted
Account created in Section
79-4-402
.
Section 16.
Repealer.
Funding.
Title.
Definitions.
Tax credits.
Qualifications for tax credit -- Procedure.
Report to the Legislature.
Section 17.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 17(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
DEPARTMENT OF NATURAL RESOURCES
ITEM 1
Department of Natural Resources - Administration
From General Fund, One-time
5,000,000
Litigation
5,000,000
The Legislature intends that money appropriated
by this item be expended by the Department of Natural
Resources in accordance with Section 73-1-22 enacted in
this bill.
Section 18.
Effective Date.
This bill takes effect on
May 6, 2026
.
2-11-26 12:56 PM