Utah HB0292 amends the rule against perpetuities to exempt water right subordination agreements from its application.

Utah HB0292 modifies the rule against perpetuities by clarifying that water right subordination agreements do not create nonvested property interests subject to the rule. This bill defines key terms such as "person with control of a water right," "water right," and "water right subordination agreement." It specifies that these agreements, which allow a water right to stand behind others in priority, are not subject to the common law rule against perpetuities. The changes enacted by this bill apply retroactively, affecting agreements made prior to the bill's effective date of May 6, 2026.

Utah HB0292 amends the rule against perpetuities to exempt water right subordination agreements from its application.

Utah HB0292 modifies the rule against perpetuities by clarifying that water right subordination agreements do not create nonvested property interests subject to the rule. This bill defines key terms such as "person with control of a water right," "water right," and "water right subordination agreement." It specifies that these agreements, which allow a water right to stand behind others in priority, are not subject to the common law rule against perpetuities. The changes enacted by this bill apply retroactively, affecting agreements made prior to the bill's effective date of May 6, 2026.