AB419 - Revises provisions relating to water. (BDR 48-736)

REQUIRES TWO-THIRDS MAJORITY VOTE EXEMPT (§ 1.5 & NRS 533.345) (Reprinted with amendments adopted on April 21, 2025) FIRST REPRINT A.B. 419 - *AB419_R1* ASSEMBLY BILL NO. 419–ASSEMBLYMEMBERS DELONG, COLE, GURR; DICKMAN AND O’NEILL MARCH 13, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to water. (BDR 48-736) 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; requiring the State Engineer to prepare and submit a biennial report to the Legislature relating to certain applications pending a final decision by the State Engineer; requiring the State Engineer to adopt certain regulations relating to hearings and to establish a pre- application review process to meet with prospective applicants; making the State Engineer subject to the Nevada Administrative Procedure Act for purposes of adopting regulations and certain provisions governing the adjudication of contested cases; and providing other matters properly relating thereto. Legislative Counsel’s Digest: The State Engineer, an appointee of the Director of the State Department of 1 Conservation and Natural Resources, manages the appropriation of water in this 2 State. (Title 48 of NRS) Section 1 of this bill requires the State Engineer to prepare 3 and submit a biennial report to the Director of the Legislative Counsel Bureau for 4 transmittal to the Legislative Commission relating to certain applications to 5 appropriate water that have been pending a final decision by the State Engineer for 6 2 or more years. 7 Under existing law, the State Engineer is authorized to make such reasonable 8 rules and regulations as may be necessary for the proper and orderly execution of 9 the powers conferred upon him or her by law, including regulations governing the 10 practice and procedure in all contests before the Office of the State Engineer. (NRS 11 532.120) Section 1.5 of this bill requires the State Engineer to adopt regulations: 12 (1) governing hearings before the Office, which must include rules governing 13 expert testimony; and (2) to establish a pre-application process for purposes of the 14 provisions governing underground water and wells, the adjudication of vested water 15 rights and the appropriation of public water, which must include procedures for a 16 – 2 – - *AB419_R1* prospective applicant to meet with the State Engineer or his or her designee at the 17 request of the potential applicant to review the prospective application and identify 18 any potential barriers to approval of the application. (Chapters 533 and 534 of 19 NRS) 20 Under existing law the State Engineer is exempt from the Nevada 21 Administrative Procedure Act, which establishes procedural requirements for the 22 adoption of regulations and the adjudication of contested cases. (Chapter 233B of 23 NRS) Section 11 of this bill makes the State Engineer subject to the Nevada 24 Administrative Procedure Act for purposes of adopting regulations and certain 25 provisions governing the adjudication of contested cases. 26 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. Chapter 532 of NRS is hereby amended by adding 1 thereto a new section to read as follows: 2 On or before September 15 of each even-numbered year, the 3 State Engineer shall prepare and submit to the Director of the 4 Legislative Counsel Bureau for transmittal to the Legislative 5 Commission a report of all applications submitted pursuant to 6 chapters 533 and 534 of NRS that are pending a final decision by 7 the State Engineer as of the date of the report. The report must 8 include, without limitation: 9 1. The number of applications pending a final decision that 10 have been pending for 2 or more years; and 11 2. The name of the applicant for each application pending a 12 final decision that has been pending for 2 or more years, the 13 primary reason the application is pending a final decision and the 14 anticipated date a final decision will be made on the application, if 15 any. 16 Sec. 1.5. NRS 532.120 is hereby amended to read as follows: 17 532.120 1. The State Engineer may make such reasonable 18 rules and regulations as may be necessary for the proper and orderly 19 execution of the powers conferred by law. 20 2. The State Engineer may adopt regulations, not in conflict 21 with law, governing the practice and procedure in all contests and 22 hearings before the Office of the State Engineer, to ensure the 23 proper and orderly exercise of the powers granted by law, and the 24 speedy accomplishment of the purposes of chapters 533, 534, 535 25 and 536 of NRS. Such rules of practice and procedure must be 26 furnished to any person upon application therefor [.] and must 27 include, without limitation, rules: 28 (a) Limiting the evidence presented in a hearing to the subject 29 matter contained in an application or a protest, as applicable; and 30 (b) Requiring expert testimony presented in a hearing to 31 comply with the provisions of NRS 50.275 and 50.285. 32 – 3 – - *AB419_R1* 3. The State Engineer shall adopt regulations to establish a 1 pre-application review process for the purposes of chapters 533 2 and 534 of NRS, which must, without limitation: 3 (a) Include a process for a prospective applicant to request to 4 meet with the State Engineer or his or her designee; and 5 (b) Require the State Engineer or his or her designee to, not 6 later than 15 days after receiving a request pursuant to paragraph 7 (a), meet with the prospective applicant and review the prospective 8 application to identify any potential barriers to approval of the 9 application. 10 Sec. 2. (Deleted by amendment.) 11 Sec. 3. (Deleted by amendment.) 12 Sec. 4. (Deleted by amendment.) 13 Sec. 5. (Deleted by amendment.) 14 Sec. 6. (Deleted by amendment.) 15 Sec. 7. (Deleted by amendment.) 16 Sec. 8. (Deleted by amendment.) 17 Sec. 9. (Deleted by amendment.) 18 Sec. 10. (Deleted by amendment.) 19 Sec. 11. NRS 233B.039 is hereby amended to read as follows: 20 233B.039 1. The following agencies are entirely exempted 21 from the requirements of this chapter: 22 (a) The Governor. 23 (b) Except as otherwise provided in subsection 7 and NRS 24 209.221 and 209.2473, the Department of Corrections. 25 (c) The Nevada System of Higher Education. 26 (d) The Office of the Military. 27 (e) The Nevada Gaming Control Board. 28 (f) Except as otherwise provided in NRS 368A.140 and 463.765, 29 the Nevada Gaming Commission. 30 (g) Except as otherwise provided in NRS 425.620, the Division 31 of Welfare and Supportive Services of the Department of Health and 32 Human Services. 33 (h) Except as otherwise provided in NRS 422.390, the Division 34 of Health Care Financing and Policy of the Department of Health 35 and Human Services. 36 (i) [Except as otherwise provided in NRS 533.365, the Office of 37 the State Engineer. 38 (j)] The Division of Industrial Relations of the Department of 39 Business and Industry acting to enforce the provisions of 40 NRS 618.375. 41 [(k)] (j) The Administrator of the Division of Industrial 42 Relations of the Department of Business and Industry in 43 establishing and adjusting the schedule of fees and charges for 44 accident benefits pursuant to subsection 2 of NRS 616C.260. 45 – 4 – - *AB419_R1* [(l)] (k) The Board to Review Claims in adopting resolutions to 1 carry out its duties pursuant to NRS 445C.310. 2 [(m)] (l) The Silver State Health Insurance Exchange. 3 2. Except as otherwise provided in subsection 5 and NRS 4 391.323, the Department of Education, the Board of the Public 5 Employees’ Benefits Program and the Commission on Professional 6 Standards in Education are subject to the provisions of this chapter 7 for the purpose of adopting regulations but not with respect to any 8 contested case. 9 3. The special provisions of: 10 (a) Chapter 612 of NRS for the adoption of an emergency 11 regulation or the distribution of regulations by and the judicial 12 review of decisions of the Employment Security Division of the 13 Department of Employment, Training and Rehabilitation; 14 (b) Chapters 616A to 617, inclusive, of NRS for the 15 determination of contested claims; 16 (c) Chapter 91 of NRS for the judicial review of decisions of the 17 Administrator of the Securities Division of the Office of the 18 Secretary of State; and 19 (d) NRS 90.800 for the use of summary orders in contested 20 cases, 21  prevail over the general provisions of this chapter. 22 4. The provisions of NRS 233B.122, 233B.124, 233B.125 and 23 233B.126 do not apply to the Department of Health and Human 24 Services in the adjudication of contested cases involving the 25 issuance of letters of approval for health facilities and agencies. 26 5. The provisions of this chapter do not apply to: 27 (a) Any order for immediate action, including, but not limited 28 to, quarantine and the treatment or cleansing of infected or infested 29 animals, objects or premises, made under the authority of the State 30 Board of Agriculture, the State Board of Health, or any other agency 31 of this State in the discharge of a responsibility for the preservation 32 of human or animal health or for insect or pest control; 33 (b) An extraordinary regulation of the State Board of Pharmacy 34 adopted pursuant to NRS 453.2184; 35 (c) A regulation adopted by the State Board of Education 36 pursuant to NRS 388.255 or 394.1694; 37 (d) The judicial review of decisions of the Public Utilities 38 Commission of Nevada; 39 (e) The adoption, amendment or repeal of policies by the 40 Rehabilitation Division of the Department of Employment, Training 41 and Rehabilitation pursuant to NRS 426.561 or 615.178; 42 (f) The adoption or amendment of a rule or regulation to be 43 included in the State Plan for Services for Victims of Crime by the 44 – 5 – - *AB419_R1* Department of Health and Human Services pursuant to 1 NRS 217.130; 2 (g) The adoption, amendment or repeal of rules governing the 3 conduct of contests and exhibitions of unarmed combat by the 4 Nevada Athletic Commission pursuant to NRS 467.075; 5 (h) The adoption, amendment or repeal of standards of content 6 and performance for courses of study in public schools by the 7 Council to Establish Academic Standards for Public Schools and the 8 State Board of Education pursuant to NRS 389.520; 9 (i) The adoption, amendment or repeal of the statewide plan to 10 allocate money from the Fund for a Resilient Nevada created by 11 NRS 433.732 established by the Department of Health and Human 12 Services pursuant to paragraph (b) of subsection 1 of NRS 433.734; 13 or 14 (j) The adoption or amendment of a data request by the 15 Commissioner of Insurance pursuant to NRS 687B.404. 16 6. The State Board of Parole Commissioners is subject to the 17 provisions of this chapter for the purpose of adopting regulations but 18 not with respect to any contested case. 19 7. The Department of Corrections is subject to the provisions 20 of this chapter for the purpose of adopting regulations relating to 21 fiscal policy, correspondence with inmates and visitation with 22 inmates of the Department of Corrections. 23 8. The provisions of subsections 1, 2 and 6 of NRS 233B.121 24 and the provisions of NRS 233B.124 and 233B.126 to 233B.135, 25 inclusive, do not apply to the Office of the State Engineer in the 26 adjudication of contested cases. 27 Sec. 12. The provisions of subsection 1 of NRS 218D.380 do 28 not apply to any provision of this act which adds or revises a 29 requirement to submit a report to the Legislature. 30 H