AB190 - Revises provisions relating to water. (BDR 48-886)

A.B. 190 - *AB190* ASSEMBLY BILL NO. 190–ASSEMBLYMEMBER GURR PREFILED FEBRUARY 3, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to water. (BDR 48-886) FISCAL NOTE: Effect on Local Government: No. Effect on the State: Contains Appropriation not included in Executive Budget. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to water; creating the Fund for Hydrological Studies to make grants of money for hydrological studies in certain counties; revising provisions governing the payment of the cost of a hydrological study required by the State Engineer in certain counties; making an appropriation to the Fund to be used for such grants of money; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law: (1) authorizes the State Engineer to require a hydrological, 1 environmental or any other study be conducted before the State Engineer approves 2 or rejects an application to apply water to beneficial use if such a study has not 3 been conducted by the applicant, a governmental agency or other person or the 4 study is not available; and (2) requires the applicant to bear the full cost of the 5 study. (NRS 533.368, 533.370) Any money collected from the applicant to perform 6 the study is required under existing law to be deposited in the Account for Studies 7 Concerning Water and used to defray the costs of conducting these studies and 8 certain inventories. (NRS 533.369) 9 Section 1 of this bill creates a Fund for Hydrological Studies and, with certain 10 exceptions, requires, for a hydrological study which is required by the State 11 Engineer to be conducted in a county whose population is less than 100,000 12 (currently all counties other than Clark and Washoe Counties): (1) an applicant to 13 pay a deposit to defray 50 percent of the cost of such a study; and (2) the State 14 Engineer to make a grant of money from the Fund equal to the amount deposited by 15 the applicant to defray the remaining 50 percent of the cost of such a study. Section 16 1 further requires, if there is insufficient money in the Fund to make such a grant of 17 money, the State Engineer to make a grant of money from the Account for Studies 18 Concerning Water to cover the remaining costs. If the Account also has insufficient 19 money to cover the remaining amount, section 1 authorizes the applicant to: (1) pay 20 a cash deposit to the State Engineer in an amount sufficient to defray the remaining 21 – 2 – - *AB190* cost of the study; or (2) withdraw his or her application and receive a refund of any 22 money deposited pursuant to the provisions of section 1. Finally, section 1 sets 23 forth procedures governing the use of money deposited in the Fund and requires 24 that any money paid by an applicant or the State Engineer that exceeds the amount 25 required to conduct the study be refunded to the applicant, the Fund or Account in 26 an amount which is proportional to the deposits contributed by the applicant or the 27 State Engineer. 28 Section 2 of this bill authorizes the State Engineer to adopt regulations to carry 29 out the provisions of section 1 and makes a conforming change to reflect the 30 changes made by section 1 to the requirements for the defrayment of the cost of 31 certain hydrological studies. Section 3 of this bill makes a conforming change to 32 reflect the use of money in the Account for such studies. 33 Section 4 of this bill makes an appropriation to the Fund for grants of money 34 required to be made by the State Engineer pursuant to section 1. 35 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 533 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 1. The Fund for Hydrological Studies is hereby created as a 3 special revenue fund in the State Treasury. 4 2. If a hydrological study is required by the State Engineer 5 pursuant to subsection 1 of NRS 533.368 and the study will be 6 conducted in a county whose population is less than 100,000, 7 except as otherwise provided in subsection 4, the applicant must 8 pay a cash deposit to the State Engineer which is sufficient to 9 defray 50 percent of the cost of the study. 10 3. Upon the applicant paying a cash deposit pursuant to 11 subsection 2, the State Engineer shall, except as otherwise 12 provided in this section, make a grant of money from the Fund 13 equal to the amount deposited by the applicant to pay the 14 remaining cost of the study. If there is insufficient money 15 available in: 16 (a) The Fund, the State Engineer shall make a grant of money 17 from the Account for Studies Concerning Water established by 18 NRS 533.369 to defray any remaining cost of the study. 19 (b) The Account for Studies Concerning Water, the applicant 20 may: 21 (1) Pay the remaining cost of the study; or 22 (2) Withdraw his or her application and receive a refund of 23 any money deposited pursuant to subsection 2. 24 4. The State Engineer or a person designated by the State 25 Engineer shall not conduct a hydrological study required pursuant 26 to subsection 1 of NRS 533.368 until the full cost of the study is 27 paid in accordance with the requirements of this section. 28 – 3 – - *AB190* 5. The money received by the State Engineer pursuant to this 1 section must be used to defray the cost of conducting a 2 hydrological study in a county whose population is less than 3 100,000 which is required pursuant to subsection 1 of NRS 4 533.368. Any money paid by an applicant or the State Engineer 5 that exceeds the amount required pursuant to subsection 2 to 6 conduct a study must be refunded to the applicant or the Fund or 7 Account for Studies Concerning Water, as applicable, in an 8 amount which is proportional to the deposits contributed by the 9 applicant or the State Engineer pursuant to this section. 10 6. The interest and income earned on the money in the Fund, 11 after deducting any applicable charges, must be credited to the 12 Fund. 13 7. Any balance remaining in the Fund does not revert to the 14 State Treasury at the end of any fiscal year. 15 Sec. 2. NRS 533.368 is hereby amended to read as follows: 16 533.368 1. If the State Engineer determines that a 17 hydrological study, an environmental study or any other study is 18 necessary before the State Engineer makes a final determination on 19 an application pursuant to NRS 533.370 and the applicant, a 20 governmental agency or other person has not conducted such a 21 study or the required study is not available, the State Engineer shall 22 advise the applicant of the need for the study and the type of study 23 required. 24 2. The required study must be conducted by the State Engineer 25 or by a person designated by the State Engineer, the applicant or a 26 consultant approved by the State Engineer, as determined by the 27 State Engineer. 28 3. [The] Except as otherwise provided in section 1 of this act, 29 the applicant shall bear the cost of a study required pursuant to 30 subsection 1 [. A] and a study must not be conducted by the State 31 Engineer or by a person designated by the State Engineer until the 32 applicant has paid a cash deposit to the State Engineer which is 33 sufficient to defray the cost of the study. 34 4. The State Engineer shall: 35 (a) Consult with the applicant and the governing body of the 36 county or counties in which the point of diversion and the place of 37 use is located concerning the scope and progress of the study. 38 (b) Send a copy of the completed study to all attorneys of 39 record, to a public library, if any, or other public building located in 40 the county of origin, to the county or counties in which the point of 41 diversion and the place of use is located and to the governing bodies 42 of the county of origin and of the county or counties in which the 43 point of diversion and the place of use is located. 44 – 4 – - *AB190* 5. The State Engineer may adopt regulations to carry out the 1 provisions of this section [.] and section 1 of this act. 2 Sec. 3. NRS 533.369 is hereby amended to read as follows: 3 533.369 1. [All] Except as otherwise provided in section 1 4 of this act, all money collected pursuant to subsection 3 of NRS 5 533.364 or subsection 3 of NRS 533.368 must be deposited with the 6 State Treasurer for credit to a special Account for Studies 7 Concerning Water. 8 2. The interest and income earned on the money in the Account 9 for Studies Concerning Water, after deducting any applicable 10 charges, must be credited to the Account. 11 3. [The] Except as otherwise provided in section 1 of this act, 12 the money received pursuant to subsection 3 of NRS 533.364 or 13 subsection 3 of NRS 533.368 must be used to defray the cost of 14 conducting the studies required pursuant to subsection 1 of NRS 15 533.368 and the inventories required pursuant to subsection 1 of 16 NRS 533.364. Any money paid by an applicant that exceeds the 17 amount required to conduct a study must be refunded to the 18 applicant. 19 4. Any balance remaining in the Account does not revert to the 20 State General Fund at the end of the fiscal year. 21 Sec. 4. 1. There is hereby appropriated from the State 22 General Fund to the Fund for Hydrological Studies created by 23 section 1 of this act for grants of money required to be made by the 24 State Engineer pursuant to section 1 of this act the following sums: 25 For the Fiscal Year 2025-2026 ............................... $3,000,000 26 For the Fiscal Year 2026-2027 ............................... $2,000,000 27 2. Any balance of the sums appropriated by subsection 1 28 remaining at the end of the respective fiscal years must not be 29 committed for expenditure after June 30 of the respective fiscal 30 years by the entity to which the appropriation is made or any entity 31 to which money from the appropriation is granted or otherwise 32 transferred in any manner, and any portion of the appropriated 33 money remaining must not be spent for any purpose after 34 September 18, 2026, and September 17, 2027, respectively, by 35 either the entity to which the money was appropriated or the entity 36 to which the money was subsequently granted or transferred, and 37 must be reverted to the State General Fund on or before 38 September 18, 2026, and September 17, 2027, respectively. 39 Sec. 5. 1. This section and section 4 of this act become 40 effective upon passage and approval. 41 2. Sections 1, 2 and 3 of this act become effective: 42 (a) Upon passage and approval for the purpose of adopting any 43 regulations and performing any other preparatory administrative 44 tasks that are necessary to carry out the provisions of this act; and 45 – 5 – - *AB190* (b) On July 1, 2025, for all other purposes. 1 H