1-3 context otherwise requires:

1-4 1. "Board" means the board for financing water projects created

1-5 pursuant to NRS 349.957.

1-6 2. "Community water system" means a public water system which:

1-7 (a) Has 15 or more service connections; or

1-8 (b) Serves 25 or more persons,

1-9 at places which are intended for year-round occupancy.

1-10 3. "Costs of capital improvements to community water systems and

1-11 nontransient water systems" means the costs traditionally associated with

1-12 capital improvements to such systems and includes costs associated with

2-16 of money to [purveyors] :

2-17 (a) A purveyor of water to pay for costs of capital improvements to

2-18 publicly owned community water systems and publicly owned nontransient

2-19 water systems required or made necessary by the state board of health

2-20 pursuant to NRS 445A.800 to 445A.955, inclusive, or made necessary by

2-21 the Safe Drinking Water Act , [(] 42 U.S.C. §§ 300f et seq. , [)] and the

2-22 regulations adopted pursuant thereto.

2-23 (b) An eligible recipient to pay for the cost of improvements to

2-24 conserve water, including, without limitation:

2-25 (1) Piping or lining of an irrigation canal;

2-26 (2) Recovery or recycling of wastewater or tailwater;

2-27 (3) Scheduling of irrigation;

2-28 (4) Measurement or metering of the use of water;

2-29 (5) Improving the efficiency of irrigation operations; and

2-30 (6) Improving the efficiency of the operation of a facility for the

2-31 storage of water, including, without limitation, efficiency in diverting

2-32 water to such a facility.

2-33 (c) An eligible recipient, to pay the following costs associated with

2-34 connecting a domestic well or well with a temporary permit to
2-35 a municipal water system, if the well was in existence on or before

2-36 October 1, 1999, and the well is located in an area designated by the state

2-37 engineer pursuant to NRS 534.120 as an area where the ground water

2-38 basin is being depleted:

2-39 (1) Any local or regional fee for connection to the municipal water

2-40 system.

2-41 (2) The cost of any capital improvement that is required to comply

3-9 regulations necessary for that purpose.

3-10 2. The regulations must provide such requirements for participation in

3-11 the program as the board deems necessary.

3-12 3. The money in the fund may be used to defray, in whole or in part,

3-13 the costs of administering the fund and the expenses of the board in

3-14 administering the program.

3-15 4. The board may, by regulation, impose an administrative fee which

3-16 must be collected from each recipient of a grant from the fund. If such a fee

3-17 is imposed, all revenue derived from the fee must be used to defray , in

3-18 whole or in part, the costs of administering the fund and the expenses of

3-22 program] pursuant to paragraph (a) of subsection 1 of NRS 349.981 only

3-23 for those community and nontransient water systems that:

3-24 (a) Were in existence on January 1, 1995; and

3-25 (b) Are currently publicly owned.

3-26 2. In making its determination of which purveyors of water are to

3-27 receive grants [,] pursuant to paragraph (a) of subsection 1 of NRS

3-28 349.981, the board shall give preference to those purveyors of water whose

3-29 public water systems regularly serve fewer than 6,000 persons.

3-30 3. Each recipient of a grant pursuant to paragraph (a) of subsection 1

3-31 of NRS 349.981 shall provide an amount of money for the same purpose.

3-32 The board shall develop a scale to be used to determine that amount, but

3-33 the recipient must not be required to provide an amount less than 15

3-34 percent or more than 75 percent of the amount of the grant. The scale must

3-35 be based upon the average household income of the customers of the

3-36 recipient, and provide adjustments for the demonstrated economic hardship

3-37 of those customers, the existence of an imminent risk to public health and

3-38 any other factor that the board determines to be relevant.

3-39 [4. Except as otherwise provided in subsections 1 and 2, the

3-40 determination of which purveyors of water are to receive grants is solely

4-3 water conservation and capital improvements to certain water systems is

4-4 hereby created.

4-5 2. Except as otherwise provided by [subsection] subsections 3 and 4 of

4-6 NRS 349.982, the money in the fund must be used only to make grants in

4-7 furtherance of the program.

4-8 3. All claims against the fund must be paid as other claims against the

4-9 state are paid.

4-10 Sec. 6. NRS 349.986 is hereby amended to read as follows:

4-12 bonds of the State of Nevada in the face amount of not more than

4-13 [$40,000,000] $50,000,000 to support the purposes of the program. The net

4-14 proceeds from the sale of the bonds must be deposited in the fund. The

4-15 bonds must be redeemed through the consolidated bond interest and