CO SB029

Prohibits purchasers of agricultural water rights represented by mutual ditch company shares from engaging in investment water speculation, defined as purchasing with intent to profit from increased water value or receiving payment for nonuse.

State engineer may investigate complaints of investment water speculation starting January 1, 2023, and must make written determination within 35 days or complaint is dismissed without prejudice.

Establishes rebuttable presumption of speculation if purchaser holds or will hold a minimum percent of mutual ditch company shares, with threshold to be determined by each ditch company and reported to state engineer by December 31, 2022.

Allows state engineer to fine violators up to $10,000 and require state engineer approval for any sales or transfers to that purchaser for up to 2 years; exempts purchases by municipalities, water districts, state entities, and nonprofit organizations for public purposes.

Authorizes attorney general to bring civil action against complainants filing frivolous or harassing complaints, with penalties up to $1,000 and prohibition from filing similar complaints for up to one year.