AB363 - Revises provisions relating to groundwater boards. (BDR 48-385)

EXEMPT (Reprinted with amendments adopted on April 16, 2025) FIRST REPRINT A.B. 363 - *AB363_R1* ASSEMBLY BILL NO. 363–COMMITTEE ON NATURAL RESOURCES (ON BEHALF OF THE JOINT INTERIM STANDING COMMITTEE ON NATURAL RESOURCES) MARCH 4, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to groundwater boards. (BDR 48-385) 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; revising provisions relating to the establishment, membership and duties of a groundwater board; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law authorizes a board of county commissioners to recommend to the 1 State Engineer that the State Engineer establish a groundwater board in an area 2 designated as a groundwater basin by the State Engineer. If the State Engineer 3 directs the establishment of a groundwater board, the Governor is required to 4 appoint seven members to serve on the groundwater board. Existing law authorizes 5 the Governor to dissolve the groundwater board if the Governor determines that the 6 future activities of the board are likely to be insubstantial. (NRS 534.035) Section 1 7 of this bill authorizes a board of county commissioners to request or boards of 8 county commissioners to jointly request that the State Engineer establish a 9 groundwater board. If the State Engineer establishes a groundwater board, section 10 1: (1) requires the State Engineer to appoint seven members to the groundwater 11 board; and (2) authorizes a board of county commissioners or boards of county 12 commissioners, as applicable, to appoint a nonvoting member to the groundwater 13 board. Section 1 additionally provides that the groundwater board: (1) must be 14 dissolved after 4 years, unless the State Engineer approves a request from the board 15 of county commissioners or boards of county commissioners, as applicable, to 16 continue the board; and (2) may be dissolved by a majority vote of the groundwater 17 board. Section 1 further provides that only one groundwater board may be 18 established for a designated groundwater basin. 19 Section 1 also requires the State Engineer to consider the written advice and 20 recommendations of the groundwater board on reducing overpumping in the 21 designated groundwater basin. 22 – 2 – - *AB363_R1* Section 1 also authorizes the board of county commissioners or boards of 23 county commissioners, as applicable, to submit a list of names of persons who are 24 eligible for appointment to the groundwater board to the State Engineer, who may 25 appoint members to the groundwater board from the list. 26 Existing law requires: (1) the State to pay certain expenses of a groundwater 27 board such as per diem and travel allowances for board members and expenses for 28 consultants employed by a groundwater board; and (2) the State Engineer to 29 determine and certify the budget of a groundwater board for paying such expenses. 30 (NRS 534.035, 534.040) Sections 1 and 2 of this bill eliminate these provisions 31 and provide that members serve without compensation. 32 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 534.035 is hereby amended to read as follows: 1 534.035 1. In each area designated as a groundwater basin by 2 the State Engineer pursuant to the provisions of NRS 534.030 [, the] 3 : 4 (a) If the designated groundwater basin is located in one 5 county, the board of county commissioners may [recommend to the 6 State Engineer] request that the State Engineer establish a 7 groundwater board. The State Engineer shall determine whether or 8 not a groundwater board is to be established and may direct its 9 establishment by order. 10 (b) If the designated groundwater basin is located in more 11 than one county: 12 (1) A board of county commissioners may request or the 13 board of county commissioners of the counties may jointly request 14 that the State Engineer establish a groundwater board. 15 (2) Regardless of whether a groundwater board is requested 16 jointly to be established, the State Engineer may appoint members 17 of the groundwater board in accordance with subsection 3 for any 18 county in which the designated groundwater basin is located. 19 2. Not more than one groundwater board may be established 20 in a designated groundwater basin pursuant to subsection 1. 21 3. If a groundwater board is [established, the governing bodies 22 of all the cities and towns within the designated area, the board of 23 county commissioners of each county in which the area is located, 24 and the governing body of any water district in which the area is 25 included, or partly included, shall each submit a list of names of 26 residents of the area to the Governor, who] established pursuant to 27 subsection 1, the State Engineer shall appoint seven members of 28 the board [. At least one member must be appointed from each list. 29 3. After the initial terms, the] as follows: 30 – 3 – - *AB363_R1* (a) Four members, each of whom holds a permit or certificate 1 to appropriate water within the designated groundwater basin with 2 a senior date of priority, as determined by the State Engineer; 3 (b) Two members, each of whom holds a permit or certificate 4 to appropriate water within the designated groundwater basin with 5 a junior date of priority, as determined by the State Engineer; and 6 (c) One member who holds a permit or certificate, or permits 7 or certificates, within the designated groundwater basin for the 8 greatest quantity of groundwater in the basin, or if such a person 9 is already appointed or unwilling to serve, the person who holds a 10 permit or certificate, or permits or certificates, in the designated 11 groundwater basin for the next greatest quantity of groundwater 12 in the basin, as determined by the State Engineer. 13 4. In addition to the members appointed pursuant to 14 subsection 3, the board of county commissioners or boards of 15 county commissioners, as applicable, may appoint a nonvoting 16 member to the groundwater board. 17 5. The board of county commissioners or boards of county 18 commissioners, as applicable, may submit a list of names of 19 persons who are eligible for appointment pursuant to subsection 3 20 to the State Engineer, who may appoint members to the 21 groundwater board from the list. 22 6. The term of office of each member of the board is 4 years. 23 The groundwater board shall elect one member as chair and one 24 member as secretary to serve as such at the pleasure of the 25 groundwater board. 26 [4.] 7. The groundwater board shall [maintain its headquarters 27 at the county seat of] hold public meetings and any physical 28 location for such public meetings must be in the county in which 29 the designated area is located, or if the area lies in more than one 30 county [,] and the counties jointly requested the establishment of 31 the groundwater board, in [the county seat of] one of the counties 32 in which the area is located. The board shall hold meetings at such 33 times and places as it may determine. Special meetings may be 34 called at any time by the secretary at the request of any four 35 members, or by the chair, upon notice specifying the matters to be 36 acted upon at the meeting. No matters other than those specified in 37 the notice may be acted upon at that meeting unless all members are 38 present and consent thereto. 39 [5.] 8. A majority of the groundwater board constitutes a 40 quorum, and the groundwater board shall act only by a majority of 41 those present. 42 [6. For each day’s attendance at each meeting of the 43 groundwater board, or for each day when services are actually 44 performed for the groundwater board, the members are entitled to 45 – 4 – - *AB363_R1* receive per diem and travel allowances provided by law. Claims for 1 those expenses must be paid as provided in subsection 7 of 2 NRS 534.040. 3 7.] 9. Members of the groundwater board serve without 4 compensation. 5 10. The State Engineer shall [not approve any application or 6 issue any permit to drill a well, appropriate groundwater, change the 7 place or manner of use or the point of diversion of water within the 8 designated area, adopt any related regulations or enter any related 9 orders until the State Engineer has conferred with the board and 10 obtained its] consider the written advice and recommendations [.] of 11 the groundwater board on reducing overpumping in the 12 designated groundwater basin. 13 [8. It is the intention of the Legislature that the State Engineer 14 and the board be in agreement whenever possible, but, for the 15 purpose of fixing responsibility to the Governor, if] If there is any 16 disagreement between the State Engineer and the groundwater 17 board, the views of the State Engineer prevail. A [written report of 18 any such disagreement must be made immediately to the Governor 19 by the State Engineer and the board. 20 9. Any] decision of the State Engineer to comply or not 21 comply with the views of the groundwater board is not subject to 22 judicial review. A disagreement between the State Engineer and a 23 groundwater board is not admissible in any proceeding 24 challenging a decision of the State Engineer. 25 11. A groundwater board [may request from the State Engineer 26 or any other state, county, city or district agency such technical 27 information, data and advice as it may require to perform its 28 functions, and] : 29 (a) Must be dissolved 4 years after the date the board is 30 established by the State Engineer [and such other agencies shall, 31 within the resources available to them, furnish such assistance as 32 may be requested. 33 10. The Governor may dissolve the groundwater board by 34 order if the Governor determines that the future activities of the 35 board are likely to be insubstantial.] pursuant to subsection 3, 36 unless the State Engineer approves a request from the board of 37 county commissioners or boards of county commissioners, as 38 applicable, to continue the groundwater board for any additional 39 4-year term; and 40 (b) May be dissolved by a majority vote of the groundwater 41 board at a meeting of the board. 42 Sec. 2. NRS 534.040 is hereby amended to read as follows: 43 534.040 1. Upon the initiation of the administration of this 44 chapter in any particular basin, and where the investigations of the 45 – 5 – - *AB363_R1* State Engineer have shown the necessity for the supervision over the 1 waters of that basin, the State Engineer may employ a well 2 supervisor and other necessary assistants, who shall execute the 3 duties as provided in this chapter under the direction of the State 4 Engineer. The salaries of the well supervisor and the assistants of 5 the well supervisor must be fixed by the State Engineer. The well 6 supervisor and assistants are exempt from the provisions of chapter 7 284 of NRS. 8 2. If the money available from the license fees provided for in 9 NRS 534.140 is not sufficient to pay those salaries, together with 10 necessary expenses, including the compensation and other expenses 11 of the Well Drillers’ Advisory Board, the board of county 12 commissioners shall, except as otherwise provided in this 13 subsection, levy a special assessment annually, or at such time as the 14 assessment is needed, upon all taxable property situated within the 15 confines of the area designated by the State Engineer to come under 16 the provisions of this chapter in an amount as is necessary to pay 17 such salaries and expenses. If the board of county commissioners 18 determines that the amount of a special assessment levied upon a 19 property owner pursuant to this section when combined with the 20 amount of all other taxes and assessments levied upon the property 21 owner is less than the cost of collecting the special assessment 22 levied pursuant to this subsection, the board of county 23 commissioners may exempt the property owner from the assessment 24 and appropriate money from the general fund of the county to pay 25 the cost of the assessment. 26 3. Except as otherwise provided in subsection 2, in designated 27 areas within which the use of groundwater is predominantly for 28 agricultural purposes, any special assessment levied pursuant to this 29 section must be charged against each water user who has a permit to 30 appropriate water or a perfected water right, and the charge against 31 each water user must be based upon the proportion which his or her 32 water right bears to the aggregate water rights in the designated 33 area. The minimum charge is $1. 34 4. The salaries and expenses may be paid by the State Engineer 35 from the Water Distribution Revolving Account pending the levy 36 and collection of an assessment levied pursuant to this section. 37 5. Except as otherwise provided in subsection 2, if a special 38 assessment is levied pursuant to this section, the proper officers of 39 the county shall levy and collect the special assessment as other 40 special assessments are levied and collected, and the assessment is a 41 lien upon the property. 42 6. Any special assessment collected pursuant to this section 43 must be deposited with the State Treasurer for credit to the Water 44 District Account to be accounted for in basin well accounts. 45 – 6 – - *AB363_R1* 7. [Upon determination and certification by the State Engineer 1 of the amount to be budgeted for the current or ensuing fiscal year 2 for the purpose of paying the per diem and travel allowances of the 3 groundwater board and employing consultants or other help needed 4 to fulfill its responsibilities, the State Controller shall transfer that 5 amount to a separate operating account for that fiscal year for the 6 groundwater basin. Claims against the account must be approved by 7 the groundwater board and paid as other claims against the State are 8 paid.] The State Engineer may use money in a particular basin well 9 account to support an activity outside the basin in which the money 10 is collected if the activity bears a direct relationship to the 11 responsibilities or activities of the State Engineer regarding th [Text truncated for display. Full text available on LegiScan.]