SOUTHERN NEVADA WATER SYSTEM ACT OF 1975

[Rev. 6/29/2024 7:36:53 PM--2023]

SOUTHERN NEVADA WATER SYSTEM ACT OF 1995

Chapter 393, Statutes of Nevada 1995

AN ACT relating to the Colorado River Commission; transferring certain powers and duties relating to the Southern Nevada Water System; expanding certain powers and duties of the Commission; requiring certain water purveyors to pay the cost of certain functions and duties of the Commission; and providing other matters properly relating thereto.

[Approved: June 28, 1995]

(Leadlines for sections have been supplied by the Legislative Counsel of the State of Nevada)

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

Section 1. Definitions. As used in this section and sections 2 and 3 of this act, unless the context otherwise requires:

1. The terms “Commission,” “facilities,” “federal facilities,” “project” and “state facilities” have the meanings ascribed to them in chapter 482, Statutes of Nevada 1975, as amended.

2. “Southern Nevada Water Authority” means the political subdivision of the State of Nevada created on July 25, 1991, by a cooperative agreement entered into on that date pursuant to the provisions of NRS 277.080 to 277.180, inclusive.

(Ch. 393, Stats. 1995 p. 963)

Sec. 2. Rights, powers, duties, obligations and liabilities of Southern Nevada Water Authority; effectuation of provisions; employment of certain persons.

1. Except as otherwise provided in subsections 2 and 4, the Southern Nevada Water Authority shall hold in its own name and shall exercise in its own right all rights, interests, functions and powers, shall perform all duties and obligations and shall assume all liabilities of the State of Nevada and the Colorado River Commission of Nevada relating to the project and its facilities, including, without limitation:

(a) Those powers and duties of the Colorado River Commission specified in chapter 268, Statutes of Nevada 1967, as amended, and chapter 482, Statutes of Nevada 1975, as amended; and

(b) All rights, powers, duties, obligations and liabilities of the State of Nevada and the Commission pursuant to each of the following contracts:

(1) That certain “Amendatory, Supplementary and Restating Contract between the United States and the State of Nevada for the Delivery of Water and Repayment of Project Works,” dated March 2, 1992.

(2) That certain “Amendatory, Supplementary and Restating Contract for the Delivery of Water through the Southern Nevada Water System between the State of Nevada, acting through its Colorado River Commission, and the City of Boulder City, City of Henderson, the City of North Las Vegas, and the Las Vegas Valley Water District,” dated March 2, 1992.

(3) That certain “Negotiated Water Service Contract between the United States and the State of Nevada, acting through the Division of Colorado River Resources, for Delivery of Water,” Contract No. F26600-78-D0011, dated January 23, 1978.

(4) That certain “Contract for the Conveyance of Water through the Southern Nevada Water System” between the Colorado River Commission and the Southern Nevada Water Authority, dated March 2, 1992.

(5) That certain “Water Distribution and Quality Control Service Contract” between the Las Vegas Valley Water District, the State of Nevada and the Colorado River Commission, dated August 1, 1971.

(6) That certain “Second Amendatory and Supplemental Contract for Sale of Electric Power and Energy for the Southern Nevada Water System,” between Nevada Power Company and the Colorado River Commission, dated May 29, 1992.

(7) That certain “Temporary Construction Easement between Victory Valley Land Company, L.P. and the State of Nevada, acting by and through its Colorado River Commission,” dated November 15, 1994.

(8) That certain “Easement Agreement between the Steward Gravel Pit Limited Partnership, Jim Rhodes and the State of Nevada, acting by and through its Colorado River Commission as Grantee,” dated December 23, 1994.

(9) That certain “Agreement for Grant of a Right-of-way Permit and for the Transfer of Flood Control Improvements between the City of Henderson, Nevada, and the State of Nevada, acting by and through its Colorado River Commission,” dated January 18, 1995.

(10) All permits and contracts for personal services or construction relating to the project and its facilities.

2. The provisions of subsection 1 do not affect:

(a) An irrevocable pledge of the faith and credit of the State of Nevada for the performance and observance of all covenants, conditions, limitations, promises and undertakings made or specified to be kept, observed or fulfilled on the part of this state with respect to the federal facilities and the state facilities of the Southern Nevada Water Project; or

(b) The authority of the Colorado River Commission of Nevada to receive, protect and safeguard and hold in trust for the State of Nevada all water and water rights, and all other rights, interests or benefits in and to the waters described in NRS 538.041 to 538.251, inclusive, pursuant to the provisions of those laws, and in connection with that authority to exercise the rights and powers and carry out the duties set forth in NRS 538.041 to 538.251, inclusive.

3. The Colorado River Commission of Nevada, the Southern Nevada Water Authority and, with respect to the contract described in subparagraph (2) of paragraph (b) of subsection 1, the City of Boulder City, the City of Henderson, the City of North Las Vegas, and the Las Vegas Valley Water District shall amend the contracts described in subsection 1, consistent with and to effect the provisions of this section. The Colorado River Commission of Nevada and the Southern Nevada Water Authority shall amend or terminate the contract described in subparagraph (4) of paragraph (b) of subsection 1 consistent with the provisions of this section.

4. To the extent the transfer to the Southern Nevada Water Authority of any right, interest, function or power, or the assumption by the Southern Nevada Water Authority of any duty, obligation or liability, relating to the project or its facilities requires the consent of the United States, then until that consent has been given, the Southern Nevada Water Authority shall, as an agent of the State of Nevada, exercise those rights, functions and powers, perform those duties and obligations and assume those liabilities of the State of Nevada. To the extent the amendment or termination of any of the contracts specified in paragraph (b) of subsection 1 is dependent upon the consent of the United States to be effective or to accomplish the purposes of this section, the amendment or termination is contingent upon that consent.

5. The Colorado River Commission of Nevada shall transfer to the Southern Nevada Water Authority all books and records in its possession relating to the project and its facilities.

6. The State Treasurer shall transfer from the Colorado River Commission Fund to the Southern Nevada Water Authority all assets and liabilities relating to the federal facilities and the state facilities.

7. The Colorado River Commission shall execute on behalf of itself and, where necessary, on behalf of the State, all documents, including assignments, conveyances and assumptions, required to effect the transfer of rights, interests, functions, powers, duties, obligations and liabilities to the Southern Nevada Water Authority made pursuant to this section.

8. The Southern Nevada Water Authority, or any entity with which the Southern Nevada Water Authority has contracted for operation and maintenance of the project and its facilities, shall extend a written offer of employment, substantially on the same terms as the employee enjoyed before that offer of employment, to those persons employed by the Colorado River Commission on December 31, 1994, respectively, in the positions of Chief Engineer, Professional Engineer who has primary responsibility for matters concerning the project and its facilities, Engineering Technician IV and one person employed in the position of Management Assistant. The offer must include a provision that:

(a) The employee may transfer without examination, interview or any other qualifying test.

(b) The employment of the employee must become effective on the date of the transfer of the project and its facilities pursuant to this section.

(c) Sets forth the period, which must be not less than 7 days, within which the employee may accept the offer in writing.

Ê The transfer of employment must not, insofar as possible, adversely affect the rights and privileges enjoyed by or available to the employees as part of their compensation for employment while so employed by the Commission. If an employee fails or refuses to accept the offer of employment made pursuant to this subsection, the employee may not be regarded as deprived of employment with the Commission and his or her rights and privileges may not be regarded as adversely affected.

9. The Colorado River Commission and the Southern Nevada Water Authority shall cooperate fully and take all reasonable steps before the date the transfer becomes effective to ensure that the provisions of this section are carried out in an orderly manner.

(Ch. 393, Stats. 1995 p. 963)

Sec. 2.5. Authority of Board of Directors to restrict water usage during certain water emergencies and shortages; ratification of restrictions by Board of Directors.

1. The Board of Directors of the Southern Nevada Water Authority may, by resolution, authorize the General Manager to restrict the use of water:

(a) During any period in which the Federal Government has declared a water shortage in the Colorado River;

(b) If emergency conditions exist; or

2. Any restrictions imposed by the General Manager pursuant to subsection 1 must be ratified by the Board of Directors of the Southern Nevada Water Authority not more than 15 calendar days after the date the restrictions are imposed.

3. The provisions of this section shall not be construed to authorize the Board of Directors to restrict the use of any water rights held by the United States Department of Defense.

(Ch. 210, Stats. 2023 p. 1286)

Sec. 3. Application and disbursement of revenues from sale of water; incurrence of obligations to refund certain general obligations of state; legislative finding and declaration.

1. Revenues received from the sale of water delivered through the federal facilities and the state facilities must be applied and disbursed by the Southern Nevada Water Authority in the following order:

(a) To the payment to the Federal Government or to the Southern Nevada Water Authority for the cost of operation and maintenance of those facilities.

(b) To the payment of the Federal Government for the cost of the construction of the facilities allocated by the Secretary of the Interior for reimbursement pursuant to any contracts therefor.

(c) To the payment of compensation and expenses of the Southern Nevada Water Authority and all other obligations incurred through performance by the Southern Nevada Water Authority of the duties designated in NRS 538.226 and section 2 of this act.

(d) To the payment of the principal, interest and any other charges related to any obligations incurred to refund any general obligations of the state issued for the acquisition, construction, improvement or equipment of the federal facilities or the state facilities.

(e) To the payment of the principal, interest and any other charges related to any obligations incurred by the Southern Nevada Water Authority for the acquisition, construction, improvement or equipment of the federal facilities or the state facilities or other facilities designed to provide water to southern Nevada, including any obligations issued to refund those obligations.

(f) To the payment of expenses incurred by the Southern Nevada Water Authority related to the acquisition, construction, improvement or equipment of the federal facilities or the state facilities or incurred to acquire, construct, improve, equip, operate or maintain facilities designed to provide water to southern Nevada.

2. The Southern Nevada Water Authority may incur obligations to refund any general obligations of the state issued for the acquisition, construction, improvement or equipment of the federal facilities or state facilities if the Southern Nevada Water Authority:

(a) Requests the State Treasurer to issue general obligations of the state pursuant to the provisions of the State Securities Law;

(b) Requests the Las Vegas Valley Water District to issue obligations pursuant to the provisions of section 27 of the Las Vegas Valley Water District Act, as added by section 4 of chapter 631, Statutes of Nevada 1993, at page 2643; or

3. If the Southern Nevada Water Authority incurs obligations pursuant to subsection 2, it must:

(a) Pledge any revenue applied and disbursed pursuant to paragraph (d) of subsection 1 to the payment of the obligations incurred pursuant to subsection 2; and

(b) Ensure that the revenue pledged pursuant to paragraph (a) is maintained in an amount sufficient to pay the principal, interest and any other charges relating to those obligations.

4. The Legislature finds and declares that the issuance of securities as general obligations of the State pursuant to paragraph (a) of subsection 2 are for the protection and preservation of the natural resources of this state and obtaining the benefits thereof, and constitute an exercise of the authority conferred by the second paragraph of Section 3 of Article 9 of the Constitution of the State of Nevada.

(Ch. 393, Stats. 1995 p. 966)