HB 410

Enrolled Copy  H.B. 410
1Water Leasing Amendments
                                     2026 GENERAL SESSION
                                            STATE OF UTAH
                                    Chief Sponsor: Jill Koford
                                  Senate Sponsor: Scott D. Sandall
  Cosponsor:  Joseph Elison  Stephanie Pitcher
  John Arthur  Jake Fitisemanu  David Shallenberger
  Jennifer Dailey-Provost  Sahara Hayes  Jason E. Thompson
  James A. Dunnigan  Clinton D. Okerlund
2
3  LONG TITLE
4  General Description:
5     This bill addresses leasing of water.
6  Highlighted Provisions:
7     This bill:
8     ▸ makes appropriations to the Great Salt Lake Preservation Program (program) nonlapsing;
9     ▸ addresses diversion or impoundment by an intervening user of leased water;
10     ▸ provides for streamlined leasing of certain water;
11     ▸ directs the Great Salt Lake commissioner to facilitate leasing of water for the Great Salt
12  Lake;
13     ▸ creates the program;
14     ▸ defines terms;
15     ▸ creates the Great Salt Lake Preservation Board (board);
16     ▸ provides for rulemaking by the board;
17     ▸ establishes the leasing process;
18     ▸ addresses applications related to a lease of water;
19     ▸ authorizes the board to take action if a person violates a lease;
20     ▸ requires reporting by the board and the state engineer;
21     ▸ enacts a sunset date; and
22     ▸ makes technical and conforming amendments.
H.B. 410  Enrolled Copy
23   Money Appropriated in this Bill:
24This bill appropriates $2,750,000 in operating and capital budgets for fiscal year 2027, all
25   of which is from the General Fund.
26   Other Special Clauses:
27None
28   Utah Code Sections Affected:
29   AMENDS:
3063I-1-273 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 119
3163J-1-602.2 (Effective 05/06/26) (Partially Repealed 07/01/29), as last amended by Laws
32of Utah 2025, First Special Session, Chapter 17
3373-5-3 (Effective 05/06/26), as last amended by Laws of Utah 2014, Chapter 369
3473-32-202 (Effective 05/06/26), as last amended by Laws of Utah 2025, Chapter 93
35   ENACTS:
3673-3-30.5 (Effective 05/06/26), Utah Code Annotated 1953
3773-34-101 (Effective 05/06/26), Utah Code Annotated 1953
3873-34-201 (Effective 05/06/26), Utah Code Annotated 1953
3973-34-301 (Effective 05/06/26), Utah Code Annotated 1953
4073-34-302 (Effective 05/06/26), Utah Code Annotated 1953
4173-34-303 (Effective 05/06/26), Utah Code Annotated 1953
4273-34-401 (Effective 05/06/26), Utah Code Annotated 1953
4373-34-402 (Effective 05/06/26), Utah Code Annotated 1953
44
45   Be it enacted by the Legislature of the state of Utah:
46Section 1. Section 63I-1-273 is amended to read:
4763I-1-273 (Effective 05/06/26). Repeal dates: Title 73.
48   (1) Subsection 73-1-4(2)(e)(xi), regarding a water right subject to an approved change
49application for use within a water bank that has been authorized but not dissolved, is
50repealed December 31, 2030.
51   (2) Subsection 73-10-4(1)(i), regarding management of an application to create a water
52bank, is repealed December 31, 2030.
53   (3) Section 73-10-39, Study and recommendations related to the financing of water
54infrastructure, is repealed July 1, 2027.
55   (4) Title 73, Chapter 10g, Part 2, Agricultural Water Optimization, is repealed July 1, 2028.
56   (5) Title 73, Chapter 10g, Part 7, Utah Water Agent, is repealed July 1, 2034.
                                                  -2-
Enrolled Copy  H.B. 410
57  (6) Section 73-18-3.5, Advisory council, is repealed July 1, 2029.
58  (7) Title 73, Chapter 27, Legislative Water Development Commission, is repealed January
59      1, 2031.
60  (8) Title 73, Chapter 31, Water Banking Act, is repealed December 31, 2030.
61  (9) Section 73-32-302, Advisory council created -- Staffing -- Per diem and travel expenses
62      -- Annual conflict of interest disclosure statement -- Exception -- Penalties, is repealed
63      July 1, 2027.
64  (10) Section 73-32-303, Duties of the council, is repealed July 1, 2027.
65  (11) Title 73, Chapter 34, Great Salt Lake Preservation Program, is repealed July 1, 2030.
66Section 2. Section 63J-1-602.2 is amended to read:
6763J-1-602.2 (Effective 05/06/26) (Partially Repealed 07/01/29). List of nonlapsing
68  appropriations to programs.
69     Appropriations made to the following programs are nonlapsing:
70  (1) The Legislature and the Legislature's committees.
71  (2) The State Board of Education, including all appropriations to agencies, line items, and
72      programs under the jurisdiction of the State Board of Education, in accordance with
73      Section 53F-9-103.
74  (3) The Rangeland Improvement Act created in Section 4-20-101.
75  (4) The Percent-for-Art Program created in Section 9-6-404.
76  (5) The LeRay McAllister Working Farm and Ranch Fund Program created in Title 4,
77      Chapter 46, Part 3, LeRay McAllister Working Farm and Ranch Fund.
78  (6) The Utah Lake Authority created in Section 11-65-201.
79  (7) Dedicated credits accrued to the Utah Marriage Commission as provided under
80      Subsection 17-66-303(2)(d)(ii).
81  (8) The Wildlife Land and Water Acquisition Program created in Section 23A-6-205.
82  (9) Sanctions collected as dedicated credits from Medicaid providers under Subsection
83      26B-3-108(7).
84  (10) The primary care grant program created in Section 26B-4-310.
85  (11) The Opiate Overdose Outreach Pilot Program created in Section 26B-4-512.
86  (12) The Utah Health Care Workforce Financial Assistance Program created in Section
87      26B-4-702.
88  (13) The Rural Physician Loan Repayment Program created in Section 26B-4-703.
89  (14) The Utah Medical Education Council for the:
90      (a) administration of the Utah Medical Education Program created in Section 26B-4-707;
                                               -3-
 H.B. 410  Enrolled Copy
91(b) provision of medical residency grants described in Section 26B-4-711; and
92(c) provision of the forensic psychiatric fellowship grant described in Section 26B-4-712.
93   (15) The Division of Services for People with Disabilities, as provided in Section 26B-6-402.
94   (16) The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
95created in Section 26B-7-122.
96   (17) Funds that the Department of Alcoholic Beverage Services retains in accordance with
97Subsection 32B-2-301(8)(a) or (b).
98   (18) The General Assistance program administered by the Department of Workforce
99Services, as provided in Section 35A-3-401.
100   (19) The Utah National Guard, created in Title 39A, National Guard and Militia Act.
101   (20) The Search and Rescue Financial Assistance Program, as provided in Section
10253-2a-1102.
103   (21) The Emergency Medical Services Grant Program, as provided in Section 53-2d-207.
104   (22) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
105   (23) The Utah Board of Higher Education for teacher preparation programs, as provided in
106Section 53H-5-402.
107   (24) Innovation grants under Section 53G-10-608, except as provided in Subsection
10853G-10-608(3).
109   (25) The Division of Fleet Operations for the purpose of upgrading underground storage
110tanks under Section 63A-9-401.
111   (26) The Division of Technology Services for technology innovation as provided under
112Section 63A-16-903.
113   (27) The State Capitol Preservation Board created by Section 63O-2-201.
114   (28) The Office of Administrative Rules for publishing, as provided in Section 63G-3-402.
115   (29) The Colorado River Authority of Utah, created in Title 63M, Chapter 14, Colorado
116River Authority of Utah Act.
117   (30) The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as
118provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
119   (31) The Governor's Office of Economic Opportunity's Rural Employment Expansion
120Program, as described in Title 63N, Chapter 4, Part 4, Rural Employment Expansion
121Program.
122   (32) County correctional facility contracting program for state inmates as described in
123Section 64-13e-103.
124   (33) County correctional facility reimbursement program for state probationary inmates and
                                                -4-
 Enrolled Copy  H.B. 410
125      state parole inmates as described in Section 64-13e-104.
126  (34) Programs for the Jordan River Recreation Area as described in Section 65A-2-8.
127  (35) The Division of Human Resource Management user training program, as provided in
128      Section 63A-17-106.
129  (36) A public safety answering point's emergency telecommunications service fund, as
130      provided in Section 69-2-301.
131  (37) The Traffic Noise Abatement Program created in Section 72-6-112.
132  (38) The money appropriated from the Navajo Water Rights Negotiation Account to the
133      Division of Water Rights, created in Section 73-2-1.1, for purposes of participating in a
134      settlement of federal reserved water right claims.
135  (39) The Judicial Council for compensation for special prosecutors, as provided in Section
136      77-10a-19.
137  (40) A state rehabilitative employment program, as provided in Section 78A-6-210.
138  (41) The Utah Geological Survey, as provided in Section 79-3-401.
139  (42) The Bonneville Shoreline Trail Program created under Section 79-5-503.
140  (43) Adoption document access as provided in Sections 81-13-103, 81-13-504, and
141      81-13-505.
142  (44) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense
143      Commission.
144  (45) The program established by the Division of Facilities Construction and Management
145      under Section 63A-5b-703 under which state agencies receive an appropriation and pay
146      lease payments for the use and occupancy of buildings owned by the Division of
147      Facilities Construction and Management.
148  (46) The State Tax Commission for reimbursing counties for deferrals in accordance with
149      Section 59-2-1802.5.
150  (47) The Veterinarian Education Loan Repayment Program created in Section 4-2-902.
151  (48) The Great Salt Lake Preservation Program created in Title 73, Chapter 34, Great Salt
152      Lake Preservation Program.
153Section 3. Section 73-3-30.5 is enacted to read:
15473-3-30.5 (Effective 05/06/26). Standardized leasing of water described in
155  instream flow provisions.
156  (1) As used in this section:
157      (a) "Concurring partner" means:
158(i) a division, as defined in Section 73-3-30; or
                                                -5-
 H.B. 410  Enrolled Copy
159(ii) the executive director of the Colorado River Authority of Utah, appointed under
160Section 63M-14-401.
161(b) "Land in agricultural use" means the same as that term is defined in Section 59-2-502.
162(c) "Person entitled to the use of water" means the same as that term is defined in
163Section 73-3-3.
164(d) "Split season use" means making sequential use of a portion of a water right in the
165same calendar year.
166   (2) The state engineer:
167(a) shall prioritize the processing of an application if the conditions of Subsections (3)
168and (4) are met; and
169(b) may adjust the prioritization described in Subsection (2)(a) as necessary to address:
170(i) a protest to the application; or
171(ii) unusual conditions that make the initial prioritization infeasible.
172   (3) To qualify for prioritization under this section, a lease:
173(a) may only lease water:
174(i) for a beneficial use described in Section 73-3-30;
175(ii) on a water right where the point of diversion is a surface source within an
176established distribution system served by a water commissioner appointed by the
177state engineer under Section 73-5-1; and
178(iii) when the approved used for the underlying water right is for an irrigation,
179industrial, or municipal purpose;
180(b) may include a lease of water based on split season use; and
181(c) may not include a lease of water diverted from an underground source of water.
182   (4) A person entitled to the use of water who files an application that complies with this
183section shall:
184(a) file the application by no later than December 1 for a lease agreement intended to
185commence on or after April 1 in the following year;
186(b) describe in the application the concurrence of the applicable concurring partner;
187(c) for an application that includes a split season use on land in agricultural use, identify
188a single period during the water right period of use, of at least four consecutive
189weeks, that will be the basis for the split season use; and
190(d) confirm that the application based on a lease of water meets the conditions of
191Subsection (3) and this Subsection (4).
192Section 4. Section 73-5-3 is amended to read:
                                                    -6-
 Enrolled Copy  H.B. 410
19373-5-3 (Effective 05/06/26). Control by engineer of division and distribution
194  under judgments.
195  (1) The state engineer or the state engineer's designee shall carry into effect a judgment of a
196      court in relation to the division, distribution, or use of water under the provisions of this
197      title.
198  (2) The state engineer shall:
199      (a) divide water among several appropriators entitled to the water in accordance with the
200right of each appropriator;
201      (b) regulate and control the use of the water by closing or partially closing a head gate,
202cap, valve, or other controlling work of a ditch, canal, pipe, flume, well or tunnel, or
203other means of diversion to prevent the waste of water or its use in excess of the
204quantity to which an appropriator is lawfully entitled; and
205      (c) regulate a controlling work of reservoirs in accordance with [the provisions of ]this
206title.
207  (3)(a) If the state engineer regulates a head gate, cap, valve, or other controlling work of
208      a ditch, canal, pipe, flume, well or tunnel, or other means of diversion, or the
209      controlling work of a reservoir, the state engineer may attach to the controlling work
210      a written notice, properly dated and signed, setting forth that the controlling work has
211      been properly regulated and is wholly under the state engineer's control.
212      (b) The notice provided under Subsection (3)(a) [shall be] is a legal notice, as to the facts
213contained in the notice, to all parties interested in the division and distribution of the
214water of the ditch, canal, pipe, flume, well or tunnel, or other means of diversion, or
215reservoir.
216  (4)(a) If the state engineer is required to enter upon private property to carry out [the
217      provisions of ]this title and is refused by the owner or possessor of the property the
218      right of entry, the state engineer may petition the district court for an order granting a
219      right of entry.
220      (b) After notice and hearing, the court may grant the state engineer a right of entry, on
221security given by the state engineer to pay the owner of the property for [all ]damage
222caused by the entry.
223  (5)(a) Leased water approved for use under Section 73-3-30 for a purpose described in
224      Section 73-3-30:
225(i) is not subject to diversion or impoundment by an intervening user between the
226point where the water is released or would otherwise have been diverted for the
                                                  -7-
 H.B. 410  Enrolled Copy
227underlying water right and the approved place of use; and
228(ii) may not be regulated or controlled by a person other than the state engineer or the
229state engineer's designee.
230(b) The state engineer may allocate water described in Subsection (5)(a) as if the water
231was naturally flowing.
232(c) When water described in Subsection (5)(a) reaches an impoundment or barrier that
233impedes or interferes with the flow of the water, the owner or operator of the
234impoundment or barrier:
235(i) may not refuse to release the water from the impoundment or barrier; and
236(ii) shall ensure that the water is passed through the impoundment or barrier upon the
237direction of the state engineer or the state engineer's designee at the owner or
238operator's sole expense.
239(d) Nothing in this Subsection (5) prohibits the state engineer from regulating or
240controlling water described in Subsection (5)(a) in accordance with a written
241agreement between an individual water user, group of water users, or an owner or
242operator of an impoundment or barrier described in Subsection (5)(c).
243Section 5. Section 73-32-202 is amended to read:
24473-32-202 (Effective 05/06/26). Duties and authorizations of the commissioner.
245   (1) The commissioner, under the administrative oversight of the executive director, shall:
246(a) subject to Section 73-32-204, prepare an approved strategic plan for the long-term
247health of the Great Salt Lake and update the strategic plan regularly;
248(b) oversee the execution of the strategic plan by other state agencies as provided in
249Section 73-32-203;
250(c) maintain information that measures Great Salt Lake levels, salinity, and overall
251health;
252(d) meet regularly with the executive director and with the executive director of the
253Department of Environmental Quality;
254(e) consult with the Division of Forestry, Fire, and State Lands regarding Title 65A,
255Chapter 16, Great Salt Lake Watershed Enhancement Program;
256(f) monitor the integrated water assessment conducted under Chapter 10g, Part 4, Great
257Salt Lake Watershed Integrated Water Assessment;
258(g) inform the governor, the president of the Senate, and the speaker of the House of
259Representatives, at least annually, about the status of the strategic plan and the
260progress regarding implementation of the strategic plan;
                                                  -8-
 Enrolled Copy  H.B. 410
261      (h) at least annually report to the Executive Appropriations Committee regarding the
262expenditure of money under this chapter;
263      (i) work cooperatively with and receive input and recommendations from the Great Salt
264Lake Trust Council created under Section 65A-16-301 in accordance with Section
26565A-16-302;
266      (j) coordinate and work collaboratively with water conservancy districts that serve water
267users within the Great Salt Lake watershed;
268      (k) consult on projects funded by state appropriations that are designed to acquire or
269lease water or water rights for the Great Salt Lake to ensure the project is consistent
270with the strategic plan;[ and]
271      (l) facilitate leasing under Chapter 34, Great Salt Lake Preservation Program; and
272      [(l)] (m) annually report to the Natural Resources, Agriculture, and Environment Interim
273Committee regarding the activities of the commissioner.
274  (2) The commissioner may:
275      (a) access information from other state or federal agencies related to the Great Salt Lake;
276      (b) develop cooperative agreements between the state, political subdivisions, and
277agencies of the federal government for involvement in the strategic plan;
278      (c) produce research, documents, maps, studies, analysis, or other information that
279supports the strategic plan for the Great Salt Lake;
280      (d) facilitate and coordinate the exchange of information, comments, and
281recommendations on Great Salt Lake policies between and among:
282(i) state agencies;
283(ii) political subdivisions;
284(iii) institutions of higher education that conduct research relevant to the Great Salt
285Lake;
286(iv) nonprofit entities; and
287(v) private business;
288      (e) communicate with the Great Salt Lake Watershed Council created under Chapter
28910g, Part 3, Watershed Councils Act;
290      (f) subject to Subsection (4), negotiate agreements, leases, or other means to acquire or
291lease water or water rights for the Great Salt Lake pursuant to the exemption under
292Subsection 63G-6a-107.6(2);[ and]
293      (g) accept money from public and private sources for the purpose of funding the leasing
294of water or water rights for the Great Salt Lake, including leases under Chapter 34,
                                                -9-
 H.B. 410  Enrolled Copy
295Great Salt Lake Preservation Program; and
296[(g)] (h) perform other duties that the commissioner considers necessary or expedient to
297carry out the purposes of this chapter.
298   (3)(a) The commissioner may not expend money for the purpose of acquiring or leasing
299water or water rights without first obtaining a review and recommendations regarding
300the expenditure from the Great Salt Lake Trust Council created in accordance with
301Section 65A-16-301.
302(b) The Great Salt Lake Trust Council shall review an expenditure described in
303Subsection (3)(a) and may make a favorable recommendation if the Great Salt Lake
304Trust Council finds that the expenditure is consistent with:
305(i) the strategic plan; and
306(ii) activities of the water trust created in Title 65A, Chapter 16, Great Salt Lake
307Watershed Enhancement Program.
308   (4)(a) A change application for a water right acquired or leased under Subsection (2)(f)
309for use on sovereign lands in the Great Salt Lake shall be administered in accordance
310with Section 73-3-30.
311(b) The commissioner shall consult with the commissioner of the Department of
312Agriculture and Food regarding terms and conditions for leasing agricultural water
313for the Great Salt Lake.
314   (5) In fulfilling the duties under this chapter, the commissioner shall consult and coordinate,
315as necessary, with:
316(a) divisions within the department;
317(b) the Department of Agriculture and Food;
318(c) the Department of Environmental Quality;
319(d) other applicable state agencies;
320(e) political subdivisions of the state;
321(f) federal agencies;
322(g) elected officials; and
323(h) local tribal officials.
324Section 6. Section 73-34-101 is enacted to read:
325CHAPTER 34. Great Salt Lake Preservation Program
326Part 1. General Provisions
32773-34-101 (Effective 05/06/26). Definitions.
                                                  - 10 -
 Enrolled Copy  H.B. 410
328     As used in this chapter:
329  (1) "Agricultural water" means water placed to beneficial use on land in agricultural use, as
330      defined under Section 59-2-502, that is located within the Utah portion of the Great Salt
331      Lake basin.
332  (2) "Agricultural water user" means a person, including a water company, who distributes
333      or is entitled to the use of agricultural water as:
334      (a) the record owner of a perfected water right in agricultural water;
335      (b) a person who has written authorization from a person described in Subsection (2)(a)
336to file a change application on that person's behalf; or
337      (c) a shareholder in a water company who is authorized to file a change application in
338accordance with Section 73-3-3.5.
339  (3) "Board" means the Great Salt Lake Preservation Board created by Section 73-34-201.
340  (4) "Commissioner" means the Great Salt Lake commissioner appointed under Section
341      73-32-201.
342  (5) "Great Salt Lake basin" means the area within:
343      (a) the surveyed meander line of the Great Salt Lake;
344      (b) the drainage areas of the Bear River or the Bear River's tributaries;
345      (c) the drainage areas of Bear Lake or Bear Lake's tributaries;
346      (d) the drainage areas of the Weber River or the Weber River's tributaries;
347      (e) the drainage areas of the Jordan River or the Jordan River's tributaries;
348      (f) the drainage areas of Utah Lake or Utah Lake's tributaries;
349      (g) other water drainages lying between the Bear River and the Jordan River that are
350tributary to the Great Salt Lake and not included in the drainage areas described in
351Subsections (5)(a) through (f); and
352      (h) the drainage area of Tooele Valley.
353  (6) "Program" means the program created under Section 73-34-301 by the board to lease
354      agricultural water from agricultural water users for the benefit of the Great Salt Lake.
355  (7) "Shareholder" means the same as that term is defined in Section 73-3-3.5.
356  (8) "Water company" means the same as that term is defined in Section 73-3-3.5.
357Section 7. Section 73-34-201 is enacted to read:
358Part 2. Program Administration
35973-34-201 (Effective 05/06/26). Great Salt Lake Preservation Board.
360  (1) There is created within the Office of the Great Salt Lake Commissioner the Great Salt
361      Lake Preservation Board that consists of the following five members:
                                                 - 11 -
 H.B. 410  Enrolled Copy
362(a) one representative of agriculture appointed by the governor as a voting member to
363serve a four-year term;
364(b) the executive director of the Department of Natural Resources, or the executive
365director's designee, to serve as a voting member;
366(c) the commissioner of the Department of Agriculture and Food, or the commissioner
367of agriculture and food's designee, to serve as a voting member;
368(d) the commissioner, or the commissioner's designee, to serve as a nonvoting member;
369and
370(e) the state engineer, or the state engineer's designee, to serve as a nonvoting member.
371   (2) The commissioner is the chair of the board.
372   (3) When a vacancy occurs in the membership appointed under Subsection (1)(a) for any
373reason, the governor shall appoint a replacement for the unexpired term.
374   (4)(a) Attendance of three voting members at a meeting constitutes a quorum for the
375transaction of business.
376(b) The vote of the majority of voting members when a quorum is present is an action of
377the board.
378(c) The board shall convene at the times and places prescribed by the chair.
379   (5) A member may not receive compensation or benefits for the member's service, but may
380receive per diem and travel expenses in accordance with:
381(a) Section 63A-3-106;
382(b) Section 63A-3-107; and
383(c) rules made by the Division of Finance in accordance with Sections 63A-3-106 and
38463A-3-107.
385   (6) The board may:
386(a) expend money to lease agricultural water under the program;
387(b) make rules when authorized under this chapter; and
388(c) take action under Section 73-34-401.
389Section 8. Section 73-34-301 is enacted to read:
390Part 3. Leasing Process
39173-34-301 (Effective 05/06/26). Program created -- Application process --
392   Rulemaking.
393   (1) The board shall establish a program for the leasing of agricultural water from
394agricultural water users for the benefit of the Great Salt Lake.
395   (2) The board shall annually set rates under the program for the leasing of agricultural water
                                                 - 12 -
 Enrolled Copy  H.B. 410
396      from an agricultural water user. When determining rates for a lease under this chapter,
397      the board shall consider the five-year average price for alfalfa hay, based on the United
398      States Department of Agriculture Utah Direct Hay Report.
399  (3)(a) The board shall at least annually accept applications for the leasing of agricultural
400      water for the benefit of the Great Salt Lake.
401      (b) The board shall at least annually award the leases of agricultural water under the
402program.
403  (4) Subject to Section 73-34-302, the board shall establish ranking and other criteria to
404      determine from whom the board may lease agricultural water, except that the board shall
405      prioritize senior adjudicated water rights.
406  (5) The board shall work cooperatively with the commissioner related to the
407      commissioner's negotiation of agreements, leases, or other means to acquire or lease
408      water or water rights for the benefit of the Great Salt Lake under Section 73-32-202.
409  (6) The board may, in accordance with Title 63G, Chapter 3, Utah Administrative
410      Rulemaking Act, make rules establishing:
411      (a) the process for setting rates under Subsection (2);
412      (b) how a person submits an application, including the information required to be
413submitted;
414      (c) the criteria for awarding leases;
415      (d) conditions the board imposes on the award of a lease; and
416      (e) other matters necessary to administer leases under this chapter.
417Section 9. Section 73-34-302 is enacted to read:
41873-34-302 (Effective 05/06/26). Leasing requirements.
419  (1) The board may lease agricultural water:
420      (a) only to benefit the Great Salt Lake; and
421      (b) if for a full irrigation season, no more than two years out of a five-year period on the
422same agricultural field.
423  (2) Once a lease is approved by the board under the program, the agricultural user awarded
424      the lease shall obtain approval of a water right application in accordance with this title.
425Section 10. Section 73-34-303 is enacted to read:
42673-34-303 (Effective 05/06/26). State engineer duties related to applications --
427  Reporting.
428  (1)(a) Under an application filed under Section 73-34-302, the state engineer shall limit
429      approval of the application to the period specified in the lease.
                                                - 13 -
 H.B. 410  Enrolled Copy
430(b) The state engineer shall approve the application in accordance with Section 73-3-30,
431except that the state engineer shall condition the approval on annual reporting of the
432measuring or monitoring of approved leases of agricultural water under the program.
433   (2)(a) The state engineer shall examine the measuring or monitoring of approved leases
434of agricultural water under the program.
435(b) By no later than December 31 of each year, the state engineer shall report to the
436Legislative Water Development Commission challenges faced by the state in the
437measuring and monitoring of agricultural water leased under the program for the
438benefit of the Great Salt Lake.
439Section 11. Section 73-34-401 is enacted to read:
440Part 4. Compliance and Oversight
44173-34-401 (Effective 05/06/26). Board action for noncompliance -- Rulemaking.
442   (1) The board may require a person awarded a lease under the program to repay the state for
443money received under the lease if the board finds that the person failed to comply with
444the conditions of the lease or diverted water in violation of the lease.
445   (2)(a) To commence an enforcement action under section, the board shall issue a notice
446of violation that includes notice of the amount of repayment for which a person is
447subject.
448(b) The board's issuance and enforcement of a notice of violation is exempt from Title
44963G, Chapter 4, Administrative Procedures Act.
450(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
451board may make rules necessary to enforce a notice of violation, that includes:
452(i) provisions consistent with this Subsection (2) for enforcement of the notice if a
453person to whom a notice is issued fails to respond to the notice or abate the
454violation;
455(ii) the right to a hearing, upon request by a person against whom the notice is issued;
456and
457(iii) provisions for timely issuance of a final order after the person to whom the
458notice is issued fails to respond to the notice or abate the violation, or after a
459hearing held under Subsection (2)(c)(ii).
460(d) A person may not intervene in an enforcement action commenced under this section.
461(e) After issuance of a final order under rules made pursuant to Subsection (2)(c), the
462board shall serve a copy of the final order on the person against whom the order is
463issued by:
                                                    - 14 -
 Enrolled Copy  H.B. 410
464(i) personal service under Utah Rules of Civil Procedure, Rule 5; or
465(ii) certified mail.
466      (f)(i) A court with jurisdiction may review the board's final order de novo in Salt
467Lake County or the county where the violation occurred.
468(ii) A person shall file a petition for judicial review of the board's final order issued
469under this section within 20 days from the day on which the final order was served
470on the person.
471      (g) The board may bring suit in a court with jurisdiction to enforce a final order issued
472under this section.
473      (h) If the board prevails in an action brought under Subsection (2)(f) or (g), the state
474may recover court costs and reasonable attorney fees.
475      (i) The board shall deposit money collected under this section into the General Fund as a
476dedicated credit to be used to implement the program.
477  (3) This section does not limit or impair the state engineer's enforcement powers set forth in
478      Section 73-2-25.
479Section 12. Section 73-34-402 is enacted to read:
48073-34-402 (Effective 05/06/26). Board report to Legislature.
481  (1) The board shall document:
482      (a) the number of acre-feet delivered to the Great Salt Lake under the program;
483      (b) the number of leases awarded under the program; and
484      (c) the amount of money expended to lease agricultural water under the program.
485  (2) The board shall annually for the previous period beginning on October 1 and ending
486      September 30:
487      (a) post on a public website the information documented under Subsection (1); and
488      (b) report to the Legislative Water Development Commission by no later than November
48930 the information documented under Subsection (1).
490Section 1. FY 2027 Appropriations.
491The following sums of money are appropriated for the fiscal year beginning July 1,
492  2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
493  fiscal year 2027.
494Subsection 1(a). Operating and Capital Budgets
495Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
496  Legislature appropriates the following sums of money from the funds or accounts indicated for
497  the use and support of the government of the state of Utah.
                                                - 15 -
 H.B. 410  Enrolled Copy
498   ITEM 1     To Department of Natural Resources - Office of the Great Salt Lake Commissioner
499From General Fund  2,750,000
500Schedule of Programs:
501Great Salt Lake Preservation Program  2,750,000
502Section 14. Effective Date.
503   This bill takes effect on May 6, 2026.
                                              - 16 -