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

EXEMPT
(Reprinted with amendments adopted on April 16, 2025)
FIRST REPRINT A.B. 363

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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.

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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; 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 ground water 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 groundwat er 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

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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 cer tain 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 suc h 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

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(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 boa rds 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 ea ch 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 s eat 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 membe rs 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 fo r each day when services are actually 44
performed for the groundwater board, the members are entitled to 45

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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 t he 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 th e 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 b y 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

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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 assessme nt 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 sub section 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 perfect ed 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 deposi ted with the State Treasurer for credit to the Water 44
District Account to be accounted for in basin well accounts. 45

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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 yea r 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 b asin 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 the 12
particular groundwater basin. 13
Sec. 3. This act becomes effective on July 1, 2025. 14

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