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House amends and approves SB 23 to change 'protected purchaser' water rules
Summary
First Substitute SB 23 was uncircled, amended on the floor to remove certain usage‑based protections for secured creditors, and passed. Sponsors said the change narrows the protected purchaser rule for mutual land and water companies, altering the assessment‑payment lookback period.
SALT LAKE CITY — Lawmakers on the Utah House floor on Feb. 24 took up First Substitute Senate Bill 23, a set of amendments to water law that address how a "protected purchaser" is recognized for certain mutual land and water companies. Representative Grover, sponsor in the House, explained the bill narrows the protected purchaser qualification and adjusts the measurement period for payment of assessments.
The sponsor said the bill would apply protected purchaser status when a person or predecessor paid assessments for 4 of the previous 7 years (instead of 1 in 5 under current statute) and similarly narrows the use‑based test for water companies. During floor debate Representative Webb moved to amend language that would have required secure creditors to be treated as responsible for water use, arguing that lenders cannot realistically control or monitor water use. "A lender or secured creditor has no control over whether the bought water is being used or not," Webb said, urging the House to strike the usage provision.
Representative Grover said he understood concerns and did not oppose the amendment; floor members adopted the amendment. After summation, the House passed First Substitute SB 23 with the amendment (78‑0) and returned the bill to the Senate for consideration of the House changes.
Next steps: The amended measure will be transmitted to the Senate for consideration of the House floor amendment.
