CO HB1028

Amends Colorado water law to establish that water rights obtained by the U.S. government as a condition of special use permits on federal land are presumed to be held for speculative purposes.

Water rights meeting these criteria are not automatically abandoned but are forfeited by the United States and revert to the prior owner for continued use under the original priority date.

Applies only to water rights originally appropriated by non-federal persons and excludes federal reserved water rights.

Preserves the U.S. government's legal authority to impose bypass flow requirements in connection with special use permits or other authorizations.

Takes effect August 6, 2014, unless a referendum petition is filed, in which case it requires voter approval at the November 2014 general election.