1. (1) As used in this section:

   1. (a) "Designated water service area" means the area defined by a municipality in accordance with the Utah Constitution, Article XI, Section 6, Subsection (1)(c).

   2. (b) "Retail customer" means an end user:

      1. (i) who receives culinary water directly from a municipality's waterworks system; and
      2. (ii) whom the municipality described in Subsection (1)(b)(i) bills for water service.

   3. (c)

      1. (i) "Waterworks system" means municipally owned collection, treatment, storage, and distribution facilities for culinary or irrigation water, including any pipe, hydrant, or appurtenance to a pipe or hydrant.
      2. (ii) "Waterworks system" does not include a water right or a source of supply such as a well, spring, stream, or share in a mutual irrigation company.
2. (2) A municipality may enact ordinances, rules and regulations for the management and conduct of the waterworks system owned or controlled by it.

3. (3) A municipality that provides water to a retail customer outside of the municipality's boundary shall:

   1. (a) create and maintain a map showing:

      1. (i) the municipality's designated water service area; and
      2. (ii) each area outside the municipality's designated water service area where a retail customer receives water service from the municipality;
   2. (b) transmit a copy of the map described in Subsection (3)(a) to the state engineer;
   3. (c) if the municipality has more than 500 retail customers, post the map described in Subsection (3)(a) on the municipality's website;
   4. (d) define, by ordinance, the area included in the municipality's designated water service area;
   5. (e) adopt, by ordinance, any municipality rule or regulation applicable to the municipality's designated water service area or to a retail customer located outside of the municipality's designated water service area; and
   6. (f) adopt, by ordinance, reasonable water rates for retail customers in the municipality's designated water service area, in accordance with Section 10-8-22.

4. (4) Within the municipality's designated water service area, a municipality shall:

   1. (a) provide service to all retail customers in a manner consistent with principles of equal protection; and
   2. (b) apply restrictions on water use to all retail customers in times of anticipated or actual water shortages in a manner consistent with principles of equal protection.

5. (5) Nothing in this section:

   1. (a) prohibits a municipality from enacting a service restriction or other restriction:

      1. (i) affecting:

         1. (A) a localized area; or
         2. (B) the municipality's entire designated water service area; and

      2. (ii)

         1. (A) based on an operational or maintenance need;
         2. (B) based on an emergency situation; or
         3. (C) to address a health, safety, or general welfare need;
   2. (b) expands or diminishes the ability of a municipality to enter into a contract to supply water outside of the municipality's designated water service area; or
   3. (c) alters the authorities or definitions described in Title 19, Chapter 4, Safe Drinking Water Act.
6. (6) A municipality may not sell or convey an interest, in part or in whole, of the municipality's waterworks system, except to a public entity as defined in Section 73-1-4.

Amended by Chapter 99, 2019 General Session