A.B. 363 - *AB363* 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 requested, section 1: (1) requires the State Engineer to 10 appoint seven members to the groundwater board; and (2) authorizes a board of 11 county commissioners or boards of county commissioners, as applicable, to appoint 12 a nonvoting member to the groundwater board. Section 1 additionally provides that 13 the groundwater board: (1) must be dissolved after 4 years, unless the State 14 Engineer approves a request from the board of county commissioners or boards of 15 county commissioners, as applicable, to continue the board; and (2) may be 16 dissolved by a majority vote of the groundwater board. Section 1 further provides 17 that only one groundwater board may be established for a designated groundwater 18 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* Existing law requires: (1) the State to pay certain expenses of a groundwater 23 board such as per diem and travel allowances for board members and expenses for 24 consultants employed by a groundwater board; and (2) the State Engineer to 25 determine and certify the budget of a groundwater board for paying such expenses. 26 (NRS 534.035, 534.040) Sections 1 and 2 of this bill eliminate these provisions 27 and provide that members serve without compensation. 28 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 who 18 reside in any county in which the designated groundwater basin is 19 located. 20 2. Not more than one groundwater board may be established 21 in a designated groundwater basin pursuant to subsection 1. 22 3. If a groundwater board is [established, the governing bodies 23 of all the cities and towns within the designated area, the board of 24 county commissioners of each county in which the area is located, 25 and the governing body of any water district in which the area is 26 included, or partly included, shall each submit a list of names of 27 residents of the area to the Governor, who] requested to be 28 established pursuant to subsection 1, the State Engineer shall 29 appoint seven members of the board [. At least one member must be 30 appointed from each list. 31 3. After the initial terms, the] who must reside within the 32 designated groundwater basin as follows: 33 – 3 – - *AB363* (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 term of office of each member of the board is 4 years. 18 The groundwater board shall elect one member as chair and one 19 member as secretary to serve as such at the pleasure of the 20 groundwater board. 21 [4.] 6. The groundwater board shall [maintain its headquarters 22 at the county seat of] hold public meetings and any physical 23 location for such public meetings must be in the county in which 24 the designated area is located, or if the area lies in more than one 25 county [,] and the counties jointly requested the establishment of 26 the groundwater board, in [the county seat of] one of the counties 27 in which the area is located. The board shall hold meetings at such 28 times and places as it may determine. Special meetings may be 29 called at any time by the secretary at the request of any four 30 members, or by the chair, upon notice specifying the matters to be 31 acted upon at the meeting. No matters other than those specified in 32 the notice may be acted upon at that meeting unless all members are 33 present and consent thereto. 34 [5.] 7. A majority of the groundwater board constitutes a 35 quorum, and the groundwater board shall act only by a majority of 36 those present. 37 [6. For each day’s attendance at each meeting of the 38 groundwater board, or for each day when services are actually 39 performed for the groundwater board, the members are entitled to 40 receive per diem and travel allowances provided by law. Claims for 41 those expenses must be paid as provided in subsection 7 of 42 NRS 534.040. 43 7.] 8. Members of the groundwater board serve without 44 compensation. 45 – 4 – - *AB363* 9. The State Engineer shall [not approve any application or 1 issue any permit to drill a well, appropriate groundwater, change the 2 place or manner of use or the point of diversion of water within the 3 designated area, adopt any related regulations or enter any related 4 orders until the State Engineer has conferred with the board and 5 obtained its] consider the written advice and recommendations [.] of 6 the groundwater board on reducing overpumping in the 7 designated groundwater basin. 8 [8. It is the intention of the Legislature that the State Engineer 9 and the board be in agreement whenever possible, but, for the 10 purpose of fixing responsibility to the Governor, if] If there is any 11 disagreement between the State Engineer and the groundwater 12 board, the views of the State Engineer prevail. A [written report of 13 any such disagreement must be made immediately to the Governor 14 by the State Engineer and the board. 15 9. Any] decision of the State Engineer to comply or not 16 comply with the views of the groundwater board is not subject to 17 judicial review. A disagreement between the State Engineer and a 18 groundwater board is not admissible in any proceeding 19 challenging a decision of the State Engineer. 20 10. A groundwater board [may request from the State Engineer 21 or any other state, county, city or district agency such technical 22 information, data and advice as it may require to perform its 23 functions, and] : 24 (a) Must be dissolved 4 years after the date the board is 25 established by the State Engineer [and such other agencies shall, 26 within the resources available to them, furnish such assistance as 27 may be requested. 28 10. The Governor may dissolve the groundwater board by 29 order if the Governor determines that the future activities of the 30 board are likely to be insubstantial.] pursuant to subsection 3, 31 unless the State Engineer approves a request from the board of 32 county commissioners or boards of county commissioners, as 33 applicable, to continue the groundwater board for any additional 34 4-year term; and 35 (b) May be dissolved by a majority vote of the groundwater 36 board at a meeting of the board. 37 Sec. 2. NRS 534.040 is hereby amended to read as follows: 38 534.040 1. Upon the initiation of the administration of this 39 chapter in any particular basin, and where the investigations of the 40 State Engineer have shown the necessity for the supervision over the 41 waters of that basin, the State Engineer may employ a well 42 supervisor and other necessary assistants, who shall execute the 43 duties as provided in this chapter under the direction of the State 44 Engineer. The salaries of the well supervisor and the assistants of 45 – 5 – - *AB363* the well supervisor must be fixed by the State Engineer. The well 1 supervisor and assistants are exempt from the provisions of chapter 2 284 of NRS. 3 2. If the money available from the license fees provided for in 4 NRS 534.140 is not sufficient to pay those salaries, together with 5 necessary expenses, including the compensation and other expenses 6 of the Well Drillers’ Advisory Board, the board of county 7 commissioners shall, except as otherwise provided in this 8 subsection, levy a special assessment annually, or at such time as the 9 assessment is needed, upon all taxable property situated within the 10 confines of the area designated by the State Engineer to come under 11 the provisions of this chapter in an amount as is necessary to pay 12 such salaries and expenses. If the board of county commissioners 13 determines that the amount of a special assessment levied upon a 14 property owner pursuant to this section when combined with the 15 amount of all other taxes and assessments levied upon the property 16 owner is less than the cost of collecting the special assessment 17 levied pursuant to this subsection, the board of county 18 commissioners may exempt the property owner from the assessment 19 and appropriate money from the general fund of the county to pay 20 the cost of the assessment. 21 3. Except as otherwise provided in subsection 2, in designated 22 areas within which the use of groundwater is predominantly for 23 agricultural purposes, any special assessment levied pursuant to this 24 section must be charged against each water user who has a permit to 25 appropriate water or a perfected water right, and the charge against 26 each water user must be based upon the proportion which his or her 27 water right bears to the aggregate water rights in the designated 28 area. The minimum charge is $1. 29 4. The salaries and expenses may be paid by the State Engineer 30 from the Water Distribution Revolving Account pending the levy 31 and collection of an assessment levied pursuant to this section. 32 5. Except as otherwise provided in subsection 2, if a special 33 assessment is levied pursuant to this section, the proper officers of 34 the county shall levy and collect the special assessment as other 35 special assessments are levied and collected, and the assessment is a 36 lien upon the property. 37 6. Any special assessment collected pursuant to this section 38 must be deposited with the State Treasurer for credit to the Water 39 District Account to be accounted for in basin well accounts. 40 7. [Upon determination and certification by the State Engineer 41 of the amount to be budgeted for the current or ensuing fiscal year 42 for the purpose of paying the per diem and travel allowances of the 43 groundwater board and employing consultants or other help needed 44 to fulfill its responsibilities, the State Controller shall transfer that 45 – 6 – - *AB363* amount to a separate operating account for that fiscal year for the 1 groundwater basin. Claims against the account must be approved by 2 the groundwater board and paid as other claims against the State are 3 paid.] The State Engineer may use money in a particular basin well 4 account to support an activity outside the basin in which the money 5 is collected if the activity bears a direct relationship to the 6 responsibilities or activities of the State Engineer regarding the 7 particular groundwater basin. 8 Sec. 3. This act becomes effective on July 1, 2025. 9 H