1. (1) As used in this section:

   1. (a) "Concurring partner" means:

      1. (i) a division, as defined in Section 73-3-30; or
      2. (ii) the executive director of the Colorado River Authority of Utah, appointed under Section 73-35-401.
   2. (b) "Land in agricultural use" means the same as that term is defined in Section 59-2-502.
   3. (c) "Person entitled to the use of water" means the same as that term is defined in Section 73-3-3.
   4. (d) "Split season use" means making sequential use of a portion of a water right in the same calendar year.

2. (2) The state engineer:

   1. (a) shall prioritize the processing of an application if the conditions of Subsections (3) and (4) are met; and

   2. (b) may adjust the prioritization described in Subsection (2)(a) as necessary to address:

      1. (i) a protest to the application; or
      2. (ii) unusual conditions that make the initial prioritization infeasible.

3. (3) To qualify for prioritization under this section, a lease:

   1. (a) may only lease water:

      1. (i) for a beneficial use described in Section 73-3-30;
      2. (ii) on a water right where the point of diversion is a surface source within an established distribution system served by a water commissioner appointed by the state engineer under Section 73-5-1; and
      3. (iii) when the approved used for the underlying water right is for an irrigation, industrial, or municipal purpose;
   2. (b) may include a lease of water based on split season use; and
   3. (c) may not include a lease of water diverted from an underground source of water.

4. (4) A person entitled to the use of water who files an application that complies with this section shall:

   1. (a) file the application by no later than December 1 for a lease agreement intended to commence on or after April 1 in the following year;
   2. (b) describe in the application the concurrence of the applicable concurring partner;
   3. (c) for an application that includes a split season use on land in agricultural use, identify a single period during the water right period of use, of at least four consecutive weeks, that will be the basis for the split season use; and
   4. (d) confirm that the application based on a lease of water meets the conditions of Subsection (3) and this Subsection (4).

Enacted by Chapter 317, 2026 General Session