LEGISLATIVE DEVELOPMENTS

October 2005

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Oregon Legislature Passes House Bill 3038 in Response to Oregon Court of Appeals Decision that Restricted Water Rights Not Used within Five Years

Recently, the Oregon Legislative Assembly gave its final approval to House Bill 3038, which was proposed following a decision in a Court of Appeals case that held that cities cannot acquire and hold longterm water rights if they don’t use the water within five years. Oregon’s land-use planning laws, on the other hand, require cities to expand their boundaries to provide enough land to accommodate 20 years of growth. House Bill 3038 states that holders of water permits for municipal use can hold water rights for up to 20 years without first completing necessary construction or perfecting the right if, among other things, officials show good cause.