(Reprinted with amendments adopted on June 2, 2003)

 

Senate Bill No. 336–Senator Hardy

 

March 17, 2003

____________

 

Referred to Committee on Natural Resources

 

SUMMARY—Makes various changes relating to water rights
and creates Lincoln County Water District. (BDR 48‑848)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to water; authorizing the State Engineer to postpone action on certain applications for water rights; providing that certain applications for water rights remain active until acted upon by the State Engineer; requiring the State Engineer to provide certain notices to persons who submitted reports of conveyance if he confirms those reports; creating the Lincoln County Water District; setting forth the powers of the District and the form and method of governance of the District; requiring the State Engineer to quantify in acre-feet certain water rights, to give certain persons notice concerning those water rights and to file a notice concerning those water rights with the office of the county recorder of the county in which the water is appropriated; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Whereas, Adequate and efficient water service is vital to the economic development and well-being of the residents of Lincoln County; and

    Whereas, Inhabited areas of Lincoln County are remote from any established water system, thus dictating that indispensable

activities such as water service be administered by a governmental entity created for the residents of Lincoln County; and

    Whereas, Lincoln County could best be served water through a single governmental entity; now, therefore,

1-1  Section 1.  NRS 533.360 is hereby amended to read as follows:

1-2  533.360  1.  Except as otherwise provided in subsection 4,

1-3  NRS 533.345 and subsection [3] 4 of NRS 533.370, when an

1-4  application is filed in compliance with this chapter , the State

1-5  Engineer shall, within 30 days, publish or cause to be published

1-6  once a week for 4 consecutive weeks in a newspaper of general

1-7  circulation and printed and published in the county where the water

1-8  is sought to be appropriated, a notice of the application [,] which

1-9  sets forth:

1-10      (a) That the application has been filed.

1-11      (b) The date of the filing.

1-12      (c) The name and address of the applicant.

1-13      (d) The name of the source from which the appropriation is to be

1-14  made.

1-15      (e) The location of the place of diversion, described by legal

1-16  subdivision or metes and bounds and by a physical description of

1-17  that place of diversion.

1-18      (f) The purpose for which the water is to be appropriated.

1-19  The publisher shall add thereto the date of the first publication and

1-20  the date of the last publication.

1-21      2.  Except as otherwise provided in subsection 4, proof of

1-22  publication must be filed within 30 days after the final day of

1-23  publication. The State Engineer shall pay for the publication from

1-24  the application fee. If the application is cancelled for any reason

1-25  before publication, the State Engineer shall return to the applicant

1-26  that portion of the application fee collected for publication.

1-27      3.  If the application is for a proposed well:

1-28      (a) For municipal, quasi-municipal or industrial use; and

1-29      (b) Whose reasonably expected rate of diversion is one-half

1-30  cubic foot per second or more,

1-31  the applicant shall mail a copy of the notice of application to each

1-32  owner of real property containing a domestic well that is within

1-33  2,500 feet of the proposed well, to his address as shown in the latest

1-34  records of the county assessor. If there are not more than six such

1-35  wells, notices must be sent to each owner by certified mail, return

1-36  receipt requested. If there are more than six such wells, at least six

1-37  notices must be sent to owners by certified mail, return receipt

1-38  requested. The return receipts from these notices must be filed with

1-39  the State Engineer before he may consider the application.

1-40      4.  The provisions of this section do not apply to an

1-41  environmental permit.

2-1  Sec. 2.  NRS 533.370 is hereby amended to read as follows:

2-2  533.370  1.  Except as otherwise provided in this section and

2-3  NRS 533.345, 533.371, 533.372 and 533.503, the State Engineer

2-4  shall approve an application submitted in proper form which

2-5  contemplates the application of water to beneficial use if:

2-6  (a) The application is accompanied by the prescribed fees;

2-7  (b) The proposed use or change, if within an irrigation district,

2-8  does not adversely affect the cost of water for other holders of water

2-9  rights in the district or lessen the efficiency of the district in its

2-10  delivery or use of water; and

2-11      (c) The applicant provides proof satisfactory to the State

2-12  Engineer of:

2-13          (1) His intention in good faith to construct any work

2-14  necessary to apply the water to the intended beneficial use with

2-15  reasonable diligence; and

2-16          (2) His financial ability and reasonable expectation actually

2-17  to construct the work and apply the water to the intended beneficial

2-18  use with reasonable diligence.

2-19      2.  Except as otherwise provided in this subsection and

2-20  subsection [6,] 7, the State Engineer shall approve or reject each

2-21  application within 1 year after the final date for filing a protest.

2-22  [However:

2-23      (a) Action may be postponed by the] The State Engineer may:

2-24      (a) Postpone action upon written authorization to do so by the

2-25  applicant or, if an application is protested, by the protestant and the

2-26  applicant . [; and]

2-27      (b) Postpone action if the purpose for which the application

2-28  was made is municipal use.

2-29      (c) In areas where studies of water supplies have been

2-30  determined to be necessary by the State Engineer pursuant to NRS

2-31  533.368 or where court actions are pending, [the State Engineer

2-32  may] withhold action until it is determined there is unappropriated

2-33  water or the court action becomes final.

2-34      3.  If the State Engineer does not act upon an application

2-35  within 1 year after the final date for filing a protest, the

2-36  application remains active until acted upon by the State Engineer.

2-37      4.  Except as otherwise provided in subsection [6,] 7, where

2-38  there is no unappropriated water in the proposed source of supply,

2-39  or where its proposed use or change conflicts with existing rights, or

2-40  with protectible interests in existing domestic wells as set forth in

2-41  NRS 533.024, or threatens to prove detrimental to the public

2-42  interest, the State Engineer shall reject the application and refuse to

2-43  issue the requested permit. If a previous application for a similar use

2-44  of water within the same basin has been rejected on those grounds,

2-45  the new application may be denied without publication.

3-1  [4.] 5. In determining whether an application for an interbasin

3-2  transfer of ground water must be rejected pursuant to this section,

3-3  the State Engineer shall consider:

3-4  (a) Whether the applicant has justified the need to import the

3-5  water from another basin;

3-6  (b) If the State Engineer determines that a plan for conservation

3-7  of water is advisable for the basin into which the water is to be

3-8  imported, whether the applicant has demonstrated that such a plan

3-9  has been adopted and is being effectively carried out;

3-10      (c) Whether the proposed action is environmentally sound as it

3-11  relates to the basin from which the water is exported;

3-12      (d) Whether the proposed action is an appropriate long-term use

3-13  which will not unduly limit the future growth and development in

3-14  the basin from which the water is exported; and

3-15      (e) Any other factor the State Engineer determines to be

3-16  relevant.

3-17      [5.] 6. If a hearing is held regarding an application, the decision

3-18  of the State Engineer must be in writing and include findings of fact,

3-19  conclusions of law and a statement of the underlying facts

3-20  supporting the findings of fact. The written decision may take the

3-21  form of a transcription of an oral ruling. The rejection or approval of

3-22  an application must be endorsed on a copy of the original

3-23  application, and a record must be made of the endorsement in the

3-24  records of the State Engineer. The copy of the application so

3-25  endorsed must be returned to the applicant. Except as otherwise

3-26  provided in subsection [7,] 8, if the application is approved, the

3-27  applicant may, on receipt thereof, proceed with the construction of

3-28  the necessary works and take all steps required to apply the water to

3-29  beneficial use and to perfect the proposed appropriation. If the

3-30  application is rejected, the applicant may take no steps toward

3-31  the prosecution of the proposed work or the diversion and use of the

3-32  public water while the rejection continues in force.

3-33      [6.] 7. The provisions of subsections 1 to [4,] 5, inclusive, do

3-34  not apply to an application for an environmental permit.

3-35      [7.] 8. The provisions of subsection [5] 6 do not authorize the

3-36  recipient of an approved application to use any state land

3-37  administered by the Division of State Lands of the State Department

3-38  of Conservation and Natural Resources without the appropriate

3-39  authorization for that use from the State Land Registrar.

3-40      [8.] 9. As used in this section, “interbasin transfer of ground

3-41  water” means a transfer of ground water for which the proposed

3-42  point of diversion is in a different basin than the proposed place of

3-43  beneficial use.

 

 

4-1  Sec. 3.  NRS 533.386 is hereby amended to read as follows:

4-2  533.386  1.  The State Engineer shall confirm that the report of

4-3  conveyance required by paragraph (a) of subsection 1 of NRS

4-4  533.384 includes all material required by that subsection and that:

4-5  (a) The report is accompanied by the prescribed fee;

4-6  (b) No conflict exists in the chain of title that can be determined

4-7  by the State Engineer from the conveyance documents or from other

4-8  information on file in the office of the State Engineer; and

4-9  (c) The State Engineer is able to determine the rate of diversion

4-10  and the amount of water conveyed in acre-feet or million gallons

4-11  from the conveyance documents or from other information on file in

4-12  the office of the State Engineer.

4-13      2.  If the State Engineer confirms a report of conveyance

4-14  pursuant to subsection 1, he shall in a timely manner provide a

4-15  notice of the confirmation to the person who submitted the report

4-16  of conveyance. The notice must include, without limitation, a

4-17  statement indicating that neither the confirmation of the report of

4-18  conveyance nor the report of conveyance, if the report sets forth

4-19  the amount of water conveyed, guarantees that:

4-20      (a) The water right is in good standing with the office of the

4-21  State Engineer; or

4-22      (b) The amount of water referenced in the notice or in the

4-23  report of conveyance is the actual amount of water that a person is

4-24  entitled to use upon conveyance of the application or permit to

4-25  appropriate any of the public waters, the certificate of

4-26  appropriation, the adjudicated or unadjudicated water right, or the

4-27  application or permit to change the place of diversion, manner of

4-28  use or place of use of water.

4-29      3.  If the State Engineer determines that the report of

4-30  conveyance is deficient, he shall reject the report of conveyance and

4-31  return it to the person who submitted it with:

4-32      (a) An explanation of the deficiency; and

4-33      (b) A notice stating that the State Engineer will not confirm a

4-34  report of conveyance that has been rejected unless the report is

4-35  resubmitted with the material required to cure the deficiency. The

4-36  notice must also include a statement of the provisions of subsection

4-37  [3.] 4.

4-38      [3.] 4. The State Engineer shall not consider or treat the person

4-39  to whom:

4-40      (a) An application or permit to appropriate any of the public

4-41  waters;

4-42      (b) A certificate of appropriation;

4-43      (c) An adjudicated or unadjudicated water right; or

4-44      (d) An application or permit to change the place of diversion,

4-45  manner of use or place of use of water,

5-1  is conveyed as the owner or holder of the application, right,

5-2  certificate or permit for the purposes of this chapter, including,

5-3  without limitation, all advisements and other notices required of the

5-4  State Engineer and the granting of permits to change the place of

5-5  diversion, manner of use or place of use of water, until a report of

5-6  the conveyance is confirmed pursuant to subsection 1.

5-7  Sec. 3.5. NRS 534.270 is hereby amended to read as follows:

5-8  534.270  1.  Upon receipt of an application for a permit to

5-9  operate a project, the State Engineer shall endorse on the application

5-10  the date it was received and keep a record of the application. He

5-11  shall conduct an initial review of the application within 45 days after

5-12  receipt of the application. If the State Engineer determines in the

5-13  initial review that the application is incomplete, he shall notify the

5-14  applicant. The application is incomplete until the applicant files all

5-15  the information requested in the application. The State Engineer

5-16  shall determine whether the application is correct within 180 days

5-17  after receipt of a complete application. The State Engineer may

5-18  request additional information from the applicant. The State

5-19  Engineer may conduct such independent investigations as are

5-20  necessary to determine whether the application should be approved

5-21  or rejected.

5-22      2.  If the application is determined to be complete and correct,

5-23  the State Engineer, within 30 days after such a determination or a

5-24  longer period if requested by the applicant, shall cause notice of the

5-25  application to be given once each week for 2 consecutive weeks in a

5-26  newspaper of general circulation in the county or counties in which

5-27  persons reside who could reasonably be expected to be affected by

5-28  the project. The notice must state:

5-29      (a) The legal description of the location of the proposed project;

5-30      (b) A brief description of the proposed project including its

5-31  capacity;

5-32      (c) That any person who may be adversely affected by the

5-33  project may file a written protest with the State Engineer within 30

5-34  days after the last publication of the notice;

5-35      (d) The date of the last publication;

5-36      (e) That the grounds for protesting the project are limited to

5-37  whether the project would be in compliance with subsection 2 of

5-38  NRS 534.250;

5-39      (f) The name of the applicant; and

5-40      (g) That a protest must:

5-41          (1) State the name and mailing address of the protester;

5-42          (2) Clearly set forth the reason why the permit should not be

5-43  issued; and

5-44          (3) Be signed by the protester or the protester’s agent or

5-45  attorney.

6-1  3.  A protest to a proposed project:

6-2  (a) May be made by any person who may be adversely affected

6-3  by the project;

6-4  (b) Must be in writing;

6-5  (c) Must be filed with the State Engineer within 30 days after

6-6  the last publication of the notice;

6-7  (d) Must be upon a ground listed in subsection 2 of

6-8  NRS 534.250;

6-9  (e) Must state the name and mailing address of the protester;

6-10      (f) Must clearly set forth the reason why the permit should not

6-11  be issued; and

6-12      (g) Must be signed by the protester or the protester’s agent or

6-13  attorney.

6-14      4.  Upon receipt of a protest, the State Engineer shall advise the

6-15  applicant by certified mail that a protest has been filed.

6-16      5.  Upon receipt of a protest, or upon his own motion, the State

6-17  Engineer may hold a hearing. Not less than 30 days before the

6-18  hearing, the State Engineer shall send by certified mail notice of the

6-19  hearing to the applicant and any person who filed a protest.

6-20      6.  The State Engineer shall either approve or deny each

6-21  application within 1 year after the final date for filing a protest,

6-22  unless he has received a written request from the applicant to

6-23  postpone his decision or, in the case of a protested application, from

6-24  both the protester and the applicant. The State Engineer may delay

6-25  action on the application pursuant to paragraph [(b)] (c) of

6-26  subsection 2 of NRS 533.370.

6-27      7.  Any person aggrieved by any decision of the State Engineer

6-28  made pursuant to subsection 6, may appeal that decision to the

6-29  district court pursuant to NRS 533.450.

6-30      Sec. 4.  NRS 538.171 is hereby amended to read as follows:

6-31      538.171  1.  The Commission shall receive, protect and

6-32  safeguard and hold in trust for the State of Nevada all water and

6-33  water rights, and all other rights, interests or benefits in and to the

6-34  waters described in NRS 538.041 to 538.251, inclusive, and to the

6-35  power generated thereon, held by or which may accrue to the State

6-36  of Nevada under and by virtue of any Act of the Congress of the

6-37  United States or any agreements, compacts or treaties to which the

6-38  State of Nevada may become a party, or otherwise.

6-39      2.  Except as otherwise provided in this subsection, applications

6-40  for the original appropriation of such waters, or to change the place

6-41  of diversion, manner of use or place of use of water covered by the

6-42  original appropriation, must be made to the Commission in

6-43  accordance with the regulations of the Commission. In considering

6-44  such an application, the Commission shall use the criteria set forth

6-45  in subsection [3] 4 of NRS 533.370. The Commission’s action on

7-1  the application constitutes the recommendation of the State of

7-2  Nevada to the United States for the purposes of any federal action

7-3  on the matter required by law. The provisions of this subsection do

7-4  not apply to supplemental water.

7-5  3.  The Commission shall furnish to the State Engineer a copy

7-6  of all agreements entered into by the Commission concerning the

7-7  original appropriation and use of such waters. It shall also furnish to

7-8  the State Engineer any other information it possesses relating to the

7-9  use of water from the Colorado River which the State Engineer

7-10  deems necessary to allow him to act on applications for permits for

7-11  the subsequent appropriation of these waters after they fall within

7-12  the State Engineer’s jurisdiction.

7-13      4.  Notwithstanding any provision of chapter 533 of NRS, any

7-14  original appropriation and use of the waters described in subsection

7-15  1 by the Commission or by any entity to whom or with whom the

7-16  Commission has contracted the water is not subject to regulation by

7-17  the State Engineer.

7-18      Sec. 5.  NRS 349.983 is hereby amended to read as follows:

7-19      349.983  1.  Grants may be made pursuant to paragraph (a) of

7-20  subsection 1 of NRS 349.981 only for the Lincoln Valley Water

7-21  District and those community and nontransient water systems that:

7-22      (a) Were in existence on January 1, 1995; and

7-23      (b) Are currently publicly owned.

7-24      2.  In making its determination of which purveyors of water are

7-25  to receive grants pursuant to paragraph (a) of subsection 1 of NRS

7-26  349.981, the Board shall give preference to those purveyors of water

7-27  whose public water systems regularly serve fewer than 6,000

7-28  persons.

7-29      3.  Each recipient of a grant pursuant to paragraph (a) of

7-30  subsection 1 of NRS 349.981 shall provide an amount of money for

7-31  the same purpose. The Board shall develop a scale to be used to

7-32  determine that amount, but the recipient must not be required to

7-33  provide an amount less than 15 percent or more than 75 percent of

7-34  the amount of the grant. The scale must be based upon the average

7-35  household income of the customers of the recipient, and provide

7-36  adjustments for the demonstrated economic hardship of those

7-37  customers, the existence of an imminent risk to public health and

7-38  any other factor that the Board determines to be relevant.

7-39      Sec. 6.  As used in sections 6 to 16, inclusive, of this act,

7-40  unless the context otherwise requires, the words and terms defined

7-41  in sections 7, 8 and 9 of this act have the meanings ascribed to them

7-42  in those sections.

7-43      Sec. 7.  “Board” means the Governing Board of the District.

7-44      Sec. 8.  “District” means the Lincoln County Water District

7-45  created by section 10 of this act.

8-1  Sec. 9.  “Service area” means the service area of the District

8-2  described in section 10 of this act.

8-3  Sec. 10.  There is hereby created a political subdivision of this

8-4  state to be known as the “Lincoln County Water District.” The

8-5  jurisdiction and service area of the District are all that real property

8-6  within the boundaries of Lincoln County, Nevada, as described in

8-7  NRS 243.210, 243.215 and 243.220.

8-8  Sec. 11.  The District has the following powers:

8-9  1.  To have perpetual succession.

8-10      2.  To sue and be sued in the name of the District in all courts or

8-11  tribunals of competent jurisdiction.

8-12      3.  To adopt a seal and alter it at the pleasure of the District.

8-13      4.  To enter into contracts, and employ and fix the

8-14  compensation of staff and professional advisers.

8-15      5.  To incur indebtedness pursuant to chapter 271 of NRS, issue

8-16  bonds pursuant to chapter 350 of NRS and provide for medium-term

8-17  obligations pursuant to chapter 350 of NRS to pay, in whole or in

8-18  part, the costs of acquiring, constructing and operating any lands,

8-19  easements, water rights, water, waterworks or projects, conduits,

8-20  pipelines, wells, reservoirs, structures, machinery and other property

8-21  or equipment useful or necessary to store, convey, supply or

8-22  otherwise deal with water, and otherwise to carry out the powers set

8-23  forth in this section. For the purposes of NRS 350.572, sections 6 to

8-24  16, inclusive, of this act do not expressly or impliedly require an

8-25  election before the issuance of a security or indebtedness pursuant to

8-26  NRS 350.500 to 350.720, inclusive, if the obligation is payable

8-27  solely from pledged revenues, but an election must be held before

8-28  incurring a general obligation.

8-29      6.  To acquire, by purchase, grant, gift, devise, lease,

8-30  construction, contract or otherwise, lands, rights-of-way, easements,

8-31  privileges, water and water rights, and property of every kind,

8-32  whether real or personal, to construct, maintain and operate, within

8-33  or without the District, any and all works and improvements

8-34  necessary or proper to carry out any of the objects or purposes of

8-35  sections 6 to 16, inclusive, of this act, and to complete, extend, add

8-36  to, repair or otherwise improve any works, improvements or

8-37  property acquired by it as authorized by sections 6 to 16, inclusive,

8-38  of this act.

8-39      7.  To sell, lease, encumber, hypothecate or otherwise dispose

8-40  of property, whether real or personal, including, without limitation,

8-41  water and water rights, as is necessary or convenient to the full

8-42  exercise of the powers of the District.

8-43      8.  To adopt ordinances, rules, regulations and bylaws

8-44  necessary for the exercise of the powers and conduct of the affairs

8-45  of the Board and District.

9-1  9.  Except as otherwise provided in this subsection, to exercise

9-2  the power of eminent domain in the manner prescribed by law,

9-3  within or without the service area, to take any property, including,

9-4  without limitation, the property specified in subsections 6 and 15,

9-5  necessary or convenient for the exercise of the powers of the District

9-6  or for the provision of adequate water service to the service area.

9-7  The District shall not exercise the power of eminent domain to

9-8  acquire the water rights or waterworks facilities of any nonprofit

9-9  purveyor delivering water for domestic use whose service area is

9-10  adjacent to the District without first obtaining the consent of the

9-11  purveyor.

9-12      10.  To enter upon any land, to make surveys and locate any

9-13  necessary improvements, including, without limitation, lines for

9-14  channels, conduits, canals, pipelines, roadways and other  rights-of-

9-15  way, to acquire property necessary or convenient for the

9-16  construction, use, supply, maintenance, repair and improvement of

9-17  such improvements, including, without limitation, works

9-18  constructed and being constructed by private owners, lands for

9-19  reservoirs for the storage of necessary water, and all necessary

9-20  appurtenances, and, where necessary and for the purposes and uses

9-21  set forth in this section, to acquire and hold the stock of

9-22  corporations, domestic or foreign, owning water or water rights,

9-23  canals, waterworks, franchises, concessions or other rights.

9-24      11.  To enter into and do any acts necessary or proper for the

9-25  performance of any agreement with the United States, or any state,

9-26  county or district of any kind, public or private corporation,

9-27  association, firm or natural person, or any number of them, for the

9-28  joint acquisition, construction, leasing, ownership, disposition, use,

9-29  management, maintenance, repair or operation of any rights, works

9-30  or other property of a kind which may be lawfully acquired or

9-31  owned by the District.

9-32      12.  To acquire the right to store water in any reservoirs, or to

9-33  carry water through any canal, ditch or conduit not owned or

9-34  controlled by the District, and to grant to any owner or lessee the

9-35  right to the use of any water or right to store such water in any

9-36  reservoir of the District, or to carry such water through any tunnel,

9-37  canal, ditch or conduit of the District.

9-38      13.  To enter into and do any acts necessary or proper for the

9-39  performance of any agreement with any district of any kind, public

9-40  or private corporation, association, firm or natural person, or any

9-41  number of them, for the transfer or delivery to any district,

9-42  corporation, association, firm or natural person of any water right or

9-43  water pumped, stored, appropriated or otherwise acquired or secured

9-44  for the use of the District, or for the purpose of exchanging the

10-1  water or water right for any other water, water right or water supply

10-2  to be delivered to the District by the other party to the agreement.

10-3      14.  To cooperate and act in conjunction with the State of

10-4  Nevada or any of its engineers, officers, boards, commissions,

10-5  departments or agencies, with the Government of the United States

10-6  or any of its engineers, officers, boards, commissions, departments

10-7  or agencies, or with any public or private corporation, to construct

10-8  any work for the development, importation or distribution of water

10-9  of the District, for the protection of life or property therein, or for

10-10  the conservation of its water for beneficial use within the District, or

10-11  to carry out any other works, acts or purposes provided for in

10-12  sections 6 to 16, inclusive, of this act, and to adopt and carry out any

10-13  definite plan or system of work for any of the purposes described in

10-14  sections 6 to 16, inclusive, of this act.

10-15     15.  To store water in surface or underground reservoirs within

10-16  or without the District for the common benefit of the District, to

10-17  conserve and reclaim water for present and future use within the

10-18  District, to appropriate and acquire water and water rights and

10-19  import water into the District for any useful purpose to the District,

10-20  and to commence, maintain, intervene in and compromise in the

10-21  name of the District, or otherwise, and assume the costs and

10-22  expenses of any action or proceeding involving or affecting:

10-23     (a) The ownership or use of water or water rights within or

10-24  without the District used or useful for any purpose of the District or

10-25  of common benefit to any land situated therein;

10-26     (b) The wasteful use of water within the District;

10-27     (c) The interference with or diminution of water or water rights

10-28  within the District;

10-29     (d) The contamination or pollution of the surface or subsurface

10-30  water used in the District or any other act that otherwise renders

10-31  such water unfit for beneficial use; and

10-32     (e) The interference with this water that may endanger or

10-33  damage the residents, lands or use of water in the District.

10-34     16.  To sell and distribute water under the control of the

10-35  District, without preference, to any natural person, firm, corporation,

10-36  association, district, agency or inhabitant, public or private, for use

10-37  within the service area, to fix, establish and adjust rates, classes of

10-38  rates, terms and conditions for the sale and use of such water, and to

10-39  sell water for use outside the service area upon a finding by the

10-40  Board that there is a surplus of water above that amount required to

10-41  serve customers within the service area.

10-42     17.  To cause taxes to be levied and collected for the purposes

10-43  prescribed in sections 6 to 16, inclusive, of this act, including,

10-44  without limitation, the payment of any obligation of the District

10-45  during its organizational state and thereafter, and necessary

11-1  engineering costs, and to assist in the operational expenses of the

11-2  District, until such taxes are no longer required.

11-3      18.  To supplement the surface and ground-water resources of

11-4  Lincoln County by the importation and use of water from other

11-5  sources for industrial, irrigation, municipal and domestic uses.

11-6      19.  To restrict the use of water of the District during any

11-7  emergency caused by drought or other threatened or existing water

11-8  shortage, and to prohibit the waste of water of the District at any

11-9  time through the adoption of ordinances, rules or regulations and the

11-10  imposition of fines for violations of those ordinances, rules and

11-11  regulations.

11-12     20.  To supply water under contract or agreement, or in any

11-13  other manner, to the United States or any department or agency

11-14  thereof, the State of Nevada, Lincoln County, Nevada, and any city,

11-15  town, corporation, association, partnership or natural person situated

11-16  in Lincoln County, Nevada, for an appropriate charge, consideration

11-17  or exchange made therefor, when such supply is available or can be

11-18  developed as an incident of or in connection with the primary

11-19  functions and operations of the District.

11-20     21.  To create assessment districts to extend mains, improve

11-21  distribution systems and acquire presently operating private water

11-22  companies and mutual water distribution systems.

11-23     22.  To accept from the Government of the United States or any

11-24  of its agencies financial assistance or participation in the form of

11-25  grants-in-aid or any other form in connection with any of the

11-26  functions of the District.

11-27     23.  To do all acts and things reasonably implied from and

11-28  necessary for the full exercise of all powers of the District granted

11-29  by sections 6 to 16, inclusive, of this act.

11-30     Sec. 12.  1.  All powers, duties and privileges of the District

11-31  must be exercised and performed by the Board.

11-32     2.  The Board must be composed of the members of the Board

11-33  of County Commissioners of Lincoln County.

11-34     Sec. 13.  1.  The Board shall:

11-35     (a) Choose one of its members to be Chairman, and prescribe

11-36  the term of that office and the powers and duties thereof.

11-37     (b) Fix the time and place at which its regular meetings will be

11-38  held and provide for the calling and conduct of special meetings.

11-39     (c) Fix the location of the principal place of business of the

11-40  District.

11-41     (d) Elect a Secretary-Treasurer of the Board and the District,

11-42  who may or may not be a member of the Board.

11-43     (e) Appoint a General Manager who must not be a member of

11-44  the Board.

12-1      (f) Delegate and redelegate to officers of the District the power

12-2  to employ necessary executives, clerical workers, engineering

12-3  assistants and laborers, and retain legal, accounting or engineering

12-4  services, subject to such conditions and restrictions as may be

12-5  imposed by the Board.

12-6      (g) Prescribe the powers, duties, compensation and benefits of

12-7  all officers and employees of the District, and require all bonds

12-8  necessary to protect the money and property of the District.

12-9      (h) Take all actions and do all things reasonably and lawfully

12-10  necessary to conduct the business of the District and achieve the

12-11  purposes of sections 6 to 16, inclusive, of this act.

12-12     2.  A simple majority of the members of the Board constitutes a

12-13  quorum. The vote of a simple majority of the quorum is required to

12-14  take action.

12-15     3.  Members of the Board are entitled to receive a salary of not

12-16  more than $80 per day and reasonable per diem and travel expenses,

12-17  as set by the Board, for their attendance at meetings and conduct of

12-18  other business of the District.

12-19     Sec. 14.  1.  The Board may levy and collect general ad

12-20  valorem taxes on all taxable property within the District, but only

12-21  for the payment of principal and interest on its general obligations.

12-22  Such a levy and collection must be made in conjunction with

12-23  Lincoln County in the manner prescribed in this section.

12-24     2.  The Board shall determine the amount of money necessary

12-25  to be raised by taxation for a particular year in addition to other

12-26  sources of revenue of the District. The Board then shall fix a rate of

12-27  levy which, when applied to the assessed valuation of all taxable

12-28  property within the District, will produce an amount, when

12-29  combined with other revenues of the District, sufficient to pay,

12-30  when due, all principal of and interest on general obligations of the

12-31  District and any defaults or deficiencies relating thereto.

12-32     3.  In accordance with and in the same manner required by the

12-33  law applicable to incorporated cities, the Board shall certify the rate

12-34  of levy fixed pursuant to subsection 2 for levy upon all taxable

12-35  property in the District in accordance with such rate at the time and

12-36  in the manner required by law for levying of taxes for county

12-37  purposes.

12-38     4.  The proper officer or authority of Lincoln County, upon

12-39  behalf of the District, shall levy and collect the tax for the District

12-40  specified in subsection 3. Such a tax must be collected in the same

12-41  manner, including, without limitation, interest and penalties, as

12-42  other taxes collected by the County. When collected, the tax must be

12-43  paid to the District in monthly installments for deposit in the

12-44  appropriate depository of the District.

13-1      5.  If the taxes levied are not paid, the property subject to the

13-2  tax lien must be sold and the proceeds of the sale paid to the District

13-3  in accordance with the law applicable to tax sales and redemptions.

13-4      Sec. 15.  The District is exempt from regulation by the Public

13-5  Utilities Commission of Nevada.

13-6      Sec. 16.  If any provision of sections 6 to 16, inclusive, of this

13-7  act or the application thereof to any person, thing or circumstance is

13-8  held invalid, such invalidity does not affect the provisions or

13-9  application of sections 6 to 16, inclusive, of this act that can be

13-10  given effect without the invalid provision or application, and to this

13-11  end the provisions of sections 6 to 16, inclusive, of this act are

13-12  declared to be severable.

13-13     Sec. 17.  1.  On or before June 30, 2005, the State Engineer

13-14  shall quantify in acre-feet the amount of water that has been

13-15  beneficially used for the purpose set forth in the certificate of

13-16  appropriation for each certificate of appropriation which:

13-17     (a) Is issued pursuant to NRS 533.425 to appropriate water:

13-18         (1) In a county whose population is 400,000 or more; and

13-19         (2) From a basin for which the State Engineer keeps

13-20  pumping records; and

13-21     (b) Expresses the amount of appropriation only in terms of cubic

13-22  feet per second.

13-23     2.  The State Engineer shall notify each owner of a water right

13-24  described in subsection 1, as determined in the records of the Office

13-25  of the State Engineer, by registered or certified mail:

13-26     (a) That the water right has been quantified as required by

13-27  subsection 1; and

13-28     (b) Of the amount of water that the State Engineer has

13-29  determined was beneficially used for the purpose set forth in the

13-30  certificate of appropriation.

13-31     3.  The State Engineer shall file a notice with the office of the

13-32  county recorder of the county in which water is appropriated

13-33  pursuant to a certificate of appropriation described in subsection 1.

13-34  The notice must contain the information required to be included in

13-35  the notice given to the owner of the water right pursuant to

13-36  subsection 2.

13-37     Sec. 18.  The amendatory provisions of section 2 of this act

13-38  apply to:

13-39     1.  Each application described in NRS 533.370 that is made on

13-40  or after July 1, 2003; and

13-41     2.  Each such application that is pending with the office of the

13-42  State Engineer on July 1, 2003.

13-43     Sec. 19.  1.  This section and sections 5 to 16, inclusive, of

13-44  this act become effective upon passage and approval.

14-1      2.  Sections 1 to 4, inclusive, 17 and 18 of this act become

14-2  effective on July 1, 2003.

14-3      3.  Section 17 of this act expires by limitation on June 30, 2005.

 

14-4  H