AB485 - Revises provisions relating to water. (BDR 48-386)

A.B. 485 - *AB485* ASSEMBLY BILL NO. 485–COMMITTEE ON NATURAL RESOURCES (ON BEHALF OF THE JOINT INTERIM STANDING COMMITTEE ON NATURAL RESOURCES) MARCH 24, 2025 ____________ Referred to Committee on Natural Resources SUMMARY—Revises provisions relating to water. (BDR 48-386) 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; revising provisions governing certain assessments on water users; making an appropriation to the Division of Water Resources of the State Department of Conservation and Natural Resources for various projects relating to the management of water resources in this State and for the digitization of records and data of the Division; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law requires the board of county commissioners of a county to levy a 1 special assessment in an amount necessary to pay the salaries and expenses of well 2 supervisors, assistants of well supervisors and the Well Drillers’ Advisory Board, if 3 fees collected for certain licenses are not sufficient to pay such salaries and 4 expenses. Existing law authorizes the board of county commissioners of a county to 5 pay those salaries and expenses by appropriating money from the general fund of 6 the county, if the amount of a special assessment combined with all other taxes and 7 assessments levied upon a property owner is less than the cost of collecting the 8 special assessment. Existing law further provides that well supervisors and 9 assistants of well supervisors employed by the State Engineer are exempt from 10 certain provisions of existing law governing public officers and employees. (NRS 11 534.040) Sections 1 and 3 of this bill prohibit the use of the money levied from 12 such a special assessment or money appropriated from the general fund of a county 13 to pay the salaries and expenses of a person employed by the State Engineer who is 14 subject to certain provisions of existing law governing public officers and 15 employees. 16 – 2 – - *AB485* Existing law requires such special assessments to be deposited with the State 17 Treasurer for credit to the Water District Account to be accounted for in basin well 18 accounts. (NRS 534.040) Section 3 requires the State Engineer to provide, not 19 more than once each year and upon the written request of a board of county 20 commissioners that levies a special assessment or appropriates money from the 21 general fund of the county, a report on the expenditures and activities from the 22 Water District Account for the particular basin well account of that groundwater 23 basin. Section 2 of this bill makes a conforming change to account for the 24 renumbering of provisions in section 3. 25 Existing law further establishes, subject to certain exceptions, a minimum 26 charge of $1 for a special assessment upon certain areas in which the use of 27 groundwater is predominantly for agricultural purposes. (NRS 534.040) Section 3: 28 (1) removes the minimum charge; and (2) establishes a maximum charge that is 29 equal to the existing charge as of June 30, 2025, plus the annual percentage 30 increase in the Consumer Price Index for the immediately preceding year for such 31 assessments. Section 3 further authorizes the State Engineer to increase the amount 32 of the maximum charge with the approval of the board of county commissioners. 33 Section 4 of this bill makes an appropriation to the Division of Water 34 Resources of the State Department of Conservation and Natural Resources for: (1) 35 costs associated with updates to the water budgets of the groundwater basins in this 36 State; (2) the collection of data and the monitoring of water resources and 37 ecosystems in this State; (3) the digitization of records and data of the Division; and 38 (4) hiring staff for the adjudication of vested water rights in the groundwater basins 39 in this State. 40 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 532.210 is hereby amended to read as follows: 1 532.210 1. The fund created pursuant to the provisions of 2 chapter 232, Statutes of Nevada 1931, and chapter 23, Statutes of 3 Nevada 1943, is hereby continued as a revolving account within the 4 State General Fund, for the purposes set forth in NRS 533.270 to 5 533.295, inclusive, and for the purposes set forth in the provisions 6 of chapters 534, 535 and 536 of NRS pertaining to the conservation 7 and distribution of waters. 8 2. [The] Except as otherwise provided in subsection 2 of NRS 9 534.040, the money in the Water Distribution Revolving Account 10 may be used for: 11 (a) The payment of state water commissioners’ and assistant 12 state water commissioners’ salaries and expenses. 13 (b) The payment of salaries and expenses of other employees 14 engaged in the work of the distribution of waters or streams that are 15 directly under the supervision of the State Engineer. 16 (c) The payment of expenses necessarily incurred by the state 17 water commissioners in the distribution of water. 18 3. The money in the Water Distribution Revolving Account, or 19 so much thereof as is necessary, may be used by the State Engineer 20 for the uses and purposes of, and in the administration of the 21 – 3 – - *AB485* provisions of, chapter 534 of NRS pertaining to the conservation 1 and distribution of underground waters. 2 Sec. 2. NRS 534.035 is hereby amended to read as follows: 3 534.035 1. In each area designated as a groundwater basin by 4 the State Engineer pursuant to the provisions of NRS 534.030, the 5 board of county commissioners may recommend to the State 6 Engineer that the State Engineer establish a groundwater board. The 7 State Engineer shall determine whether or not a groundwater board 8 is to be established and may direct its establishment by order. 9 2. If a groundwater board is established, the governing bodies 10 of all the cities and towns within the designated area, the board of 11 county commissioners of each county in which the area is located, 12 and the governing body of any water district in which the area is 13 included, or partly included, shall each submit a list of names of 14 residents of the area to the Governor, who shall appoint seven 15 members of the board. At least one member must be appointed from 16 each list. 17 3. After the initial terms, the term of office of each member of 18 the board is 4 years. The board shall elect one member as chair and 19 one member as secretary to serve as such at the pleasure of the 20 board. 21 4. The board shall maintain its headquarters at the county seat 22 of the county in which the designated area is located, or if the area 23 lies in more than one county, in the county seat of one of the 24 counties in which the area is located. The board shall hold meetings 25 at such times and places as it may determine. Special meetings may 26 be called at any time by the secretary at the request of any four 27 members, or by the chair, upon notice specifying the matters to be 28 acted upon at the meeting. No matters other than those specified in 29 the notice may be acted upon at that meeting unless all members are 30 present and consent thereto. 31 5. A majority of the board constitutes a quorum, and the board 32 shall act only by a majority of those present. 33 6. For each day’s attendance at each meeting of the 34 groundwater board, or for each day when services are actually 35 performed for the groundwater board, the members are entitled to 36 receive per diem and travel allowances provided by law. Claims for 37 those expenses must be paid as provided in subsection [7] 8 of 38 NRS 534.040. 39 7. The State Engineer shall not approve any application or 40 issue any permit to drill a well, appropriate groundwater, change the 41 place or manner of use or the point of diversion of water within the 42 designated area, adopt any related regulations or enter any related 43 orders until the State Engineer has conferred with the board and 44 obtained its written advice and recommendations. 45 – 4 – - *AB485* 8. It is the intention of the Legislature that the State Engineer 1 and the board be in agreement whenever possible, but, for the 2 purpose of fixing responsibility to the Governor, if there is any 3 disagreement between the State Engineer and the board, the views 4 of the State Engineer prevail. A written report of any such 5 disagreement must be made immediately to the Governor by the 6 State Engineer and the board. 7 9. Any groundwater board may request from the State Engineer 8 or any other state, county, city or district agency such technical 9 information, data and advice as it may require to perform its 10 functions, and the State Engineer and such other agencies shall, 11 within the resources available to them, furnish such assistance as 12 may be requested. 13 10. The Governor may dissolve the groundwater board by 14 order if the Governor determines that the future activities of the 15 board are likely to be insubstantial. 16 Sec. 3. NRS 534.040 is hereby amended to read as follows: 17 534.040 1. Upon the initiation of the administration of this 18 chapter in any particular basin, and where the investigations of the 19 State Engineer have shown the necessity for the supervision over the 20 waters of that basin, the State Engineer may employ a well 21 supervisor and other necessary assistants, who shall execute the 22 duties as provided in this chapter under the direction of the State 23 Engineer. The salaries of the well supervisor and the assistants of 24 the well supervisor must be fixed by the State Engineer. The well 25 supervisor and assistants are exempt from the provisions of chapter 26 284 of NRS. 27 2. If the money available from the license fees provided for in 28 NRS 534.140 is not sufficient to pay those salaries, together with 29 necessary expenses, including the compensation and other expenses 30 of the Well Drillers’ Advisory Board, the board of county 31 commissioners shall, except as otherwise provided in this 32 subsection, levy a special assessment annually, or at such time as the 33 assessment is needed, upon all taxable property situated within the 34 confines of the area designated by the State Engineer to come under 35 the provisions of this chapter in an amount as is necessary to pay 36 such salaries and expenses. If the board of county commissioners 37 determines that the amount of a special assessment levied upon a 38 property owner pursuant to this section when combined with the 39 amount of all other taxes and assessments levied upon the property 40 owner is less than the cost of collecting the special assessment 41 levied pursuant to this subsection, the board of county 42 commissioners may exempt the property owner from the assessment 43 and appropriate money from the general fund of the county to pay 44 the cost of the assessment. Money levied from a special assessment 45 – 5 – - *AB485* or appropriated from the general fund of a county pursuant to this 1 section must not be used to pay the salaries and expenses of an 2 employee subject to the provisions of chapter 284 of NRS. 3 3. Except as otherwise provided in subsection 2, in designated 4 areas within which the use of groundwater is predominantly for 5 agricultural purposes, any special assessment levied pursuant to this 6 section must be charged against each water user who has a permit to 7 appropriate water or a perfected water right, and the charge against 8 each water user must be based upon the proportion which his or her 9 water right bears to the aggregate water rights in the designated 10 area. [The minimum charge is $1.] Except as otherwise provided in 11 this subsection, the maximum charge is equal to the existing 12 charge as of June 30, 2025, plus the annual percentage increase 13 in the Consumer Price Index (All Items) published by the United 14 States Department of Labor for the immediately preceding year. 15 The State Engineer may, with the approval of the board of county 16 commissioners, increase the charge beyond the maximum set forth 17 in this subsection. 18 4. The salaries and expenses may be paid by the State Engineer 19 from the Water Distribution Revolving Account pending the levy 20 and collection of an assessment levied pursuant to this section. 21 5. Except as otherwise provided in subsection 2, if a special 22 assessment is levied pursuant to this section, the proper officers of 23 the county shall levy and collect the special assessment as other 24 special assessments are levied and collected, and the assessment is a 25 lien upon the property. 26 6. Any special assessment collected pursuant to this section 27 must be deposited with the State Treasurer for credit to the Water 28 District Account to be accounted for in basin well accounts. 29 7. Not more than once each year, the State Engineer shall 30 provide to a board of county commissioners in this State which 31 levies a special assessment or appropriates money from the 32 general fund of the county pursuant to this section, upon written 33 request from the board of county commissioners, a report on the 34 expenditures and activities from the Water District Account for the 35 particular basin well account of that groundwater basin. 36 8. Upon determination and certification by the State Engineer 37 of the amount to be budgeted for the current or ensuing fiscal year 38 for the purpose of paying the per diem and travel allowances of the 39 groundwater board and employing consultants or other help needed 40 to fulfill its responsibilities, the State Controller shall transfer that 41 amount to a separate operating account for that fiscal year for the 42 groundwater basin. Claims against the account must be approved by 43 the groundwater board and paid as other claims against the State are 44 paid. The State Engineer may use money in a particular basin well 45 – 6 – - *AB485* account to support an activity outside the basin in which the money 1 is collected if the activity bears a direct relationship to the 2 responsibilities or activities of the State Engineer regarding the 3 particular groundwater basin. 4 Sec. 4 [Text truncated for display. Full text available on LegiScan.]