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Utah law distinguishes between owning a water right directly and owning shares in a water company, a cooperative organization that holds the water right and delivers water to its shareholders. This bill would clarify that a share of stock in a water company is not itself a water right and, unless a company's bylaws say otherwise, is not automatically tied to a piece of land; ownership of shares would continue to be tracked through the water company's own records rather than the state engineer's records, and shares could only be transferred according to the procedures set out in the water company's governing documents and relevant securities law. It would also specify that when a water company designates a particular property or location for water delivery, the company must deliver water only there unless it agrees in writing to a different location, and that this kind of delivery designation cannot be used as grounds for transferring or changing title to the underlying water right. Finally, anyone who receives a transferred water company share would take on responsibility for any unpaid fees tied to that share, and the bill makes related technical updates to how water right deeds are recorded and reported to the state engineer.