CO HB1392

Creates a water bank operated by the Colorado Water Conservation Board allowing water rights holders to deposit water for temporary leases, loans, or trades without permanent severance from land.

Requires the Board to adopt rules by July 1, 2017 establishing deposit and withdrawal procedures, with deposits limited to 1,000 acre feet annually per applicant and withdrawals capped at either 3 years or 30% of deposited water in any 10-year period.

Prohibits water bank transactions that would negatively affect Colorado's interstate obligations or transfer native water out of the Rio Grande, Arkansas River basins, or across the continental divide (except water already decreed for transbasin export).

Authorizes the Board to delegate water bank operations to water conservation or conservancy districts after 2 years of operation and completion of at least 5 transactions or 1,000 acre feet in transfers.

Exempts individual water bank transactions from water court approval but requires Board rules to undergo water court review and allows public protests similar to water referee rulings.