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Panel backs higher penalties for water law violations, including per-barrel repayment for illegal sales

2676122 · March 18, 2025
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Summary

The committee unanimously recommended due pass for House Bill 348, which would raise civil penalties for water-law violations, add per-barrel penalties for illegal water sales and change accrual timing to start when the State Engineer provides notice.

The Senate committee gave House Bill 348 a unanimous due-pass recommendation after sponsors and the state engineer detailed the need to update century-old penalties for water-law violations.

Representative Ortez described the bill as modernizing penalties that were set at $100 per day in 1907 and no longer deter illegal diversions and sales. The proposal would raise the daily penalty (the committee-reviewed draft increased the figure substantially) and include a per-barrel penalty for illegal water sales (for example, $25 per barrel or double the economic benefit), a change supported in testimony from Watermaster districts and conservancy organizations.

State Engineer Elizabeth Anderson told the committee this measure is the agency—s top priority because current penalties do not deter intentional overdiversions or illegal wells. Witnesses from irrigation districts and water utilities described local impacts — theft and unauthorized diversions have cost districts operational control, and stronger penalties coupled with improved metering and telemetry would boost enforceability.

Committee members asked about enforcement capacity and meter accuracy. The state engineer described steps to expand Watermaster staff, meter approvals and the utility of telemetry to deliver remote meter readings. Testimony showed existing staffing varies by basin; some areas have several Watermaster staff, others fewer. Committee supporters said the bill would give agencies teeth to deter theft and to require payback rather than leave victims uncompensated.

Outcome: The committee recorded a unanimous due-pass recommendation for House Bill 348.