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

A.B. 190

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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.

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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 certa in 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 de fray 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 deposi t 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

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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 exceed s 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

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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 w hich 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 applic able 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 di version 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

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5. The State Engineer may adop t 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 spe cial 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 expen diture 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

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(b) On July 1, 2025, for all other purposes. 1

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