EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. Chapter 533 of NRS is hereby amended by adding thereto a

1-3 1. The priority of a water right acquired by a person for use in a

1-4 federal reclamation project is determined according to the date on which

1-5 the United States appropriated water for initiation of the project.

1-6 Notwithstanding the fact that the water right so appropriated and

1-7 acquired may ultimately vest in the name of the person at a later date, all

1-8 such water rights so acquired are governed by the applicable law of this

1-9 state in effect on the date on which the United States appropriated water

1-10 for initiation of the project, unless the water rights vested under the law

1-11 in this state before the time the United States first appropriated or

1-12 otherwise acquired the water for initiation of the project. If the water

1-13 right vested under the law in this state before appropriation or

2-1 acquisition by the United States, the date of initiation of the water right is

2-2 determined according to the date on which the water was first diverted

2-3 under that appropriation or acquisition by the United States.

2-4 2. No water rights, in addition to those allocated under applicable

2-5 court decrees, are granted, stated or implied by the determination of the

2-6 date of priority pursuant to subsection 1.

2-7 Sec. 2. NRS 533.040 is hereby amended to read as follows:

2-8 533.040 [All]

2-24 4. For the purposes of this section, a surface water right acquired by

2-25 a water user in a federal reclamation project may be considered

2-26 appurtenant to an entire farm, instead of specifically identifiable land

2-27 within that farm, upon the granting of a permit for the change of place

2-28 of use by the state engineer which designates the place of use as the

2-29 entire farm. The quantity of water available for use on that farm must

2-30 not exceed the total amount determined by applicable decrees as

2-31 designated in the permit granted by the state engineer.

2-32 5. As used in this section, "farm" means a tract of land under the

2-33 same ownership that is primarily used for agricultural purposes.

2-34 Sec. 3. NRS 533.060 is hereby amended to read as follows:

2-35 533.060 1. Rights to the use of water [shall] must be limited and

2-43 owners of any such ditch, canal, reservoir, or any other means of diverting

3-1 any of the public water fail to use the water therefrom or thereby for

3-2 beneficial purposes for which the right of use exists during any 5 successive

3-3 years, the right to so use shall be deemed as having been abandoned, and

3-4 any such owner or owners thereupon forfeit all water rights, easements and

3-5 privileges appurtenant thereto theretofore acquired, and all the water so

3-6 formerly appropriated by such owner or owners and their predecessors in

3-7 interest may be again appropriated for beneficial use the same as if such

3-8 ditch, canal, reservoir or other means of diversion had never been

3-9 constructed, and any qualified person may appropriate any such water for

3-10 beneficial use.

3-11 3. No] Rights to the use of surface water shall not be deemed to be

3-12 lost or otherwise forfeited for the failure to use the water therefrom for a

3-13 beneficial purpose.

3-14 3. A surface water right that is appurtenant to land formerly used

3-15 primarily for agricultural purposes is not subject to a determination of

3-16 abandonment if the surface water right:

3-17 (a) Is appurtenant to land that has been converted to urban use; or

3-18 (b) Has been dedicated to or acquired by a water purveyor, public

3-19 utility or public body for municipal use.

3-20 4. In a determination of whether a right to use surface water has

3-21 been abandoned, a presumption that the right to use the surface water

3-22 has not been abandoned is created upon the submission of records,

3-23 photographs, receipts, contracts, affidavits or any other proof of the

3-24 occurrence of any of the following events or actions within a 10-year

3-25 period immediately preceding any claim that the right to use the water

3-26 has been abandoned:

3-27 (a) The delivery of water;

3-28 (b) The payment of any costs of maintenance and other operational

3-29 costs incurred in delivering the water;

3-30 (c) The payment of any costs for capital improvements, including

3-31 works of diversion and irrigation; or

3-32 (d) The actual performance of maintenance related to the delivery of

3-33 the water.

3-34 5. A prescriptive right to the use of [such] the water or any of the

3-35 public water appropriated or unappropriated [can] may not be acquired by

3-36 [adverse user or] adverse possession . [for any period of time whatsoever,

3-37 but any] Any such right to appropriate any of [such water shall] the water

3-38 must be initiated by [first making application] applying to the state

3-39 engineer for a permit to appropriate the [same] water as provided in this

3-40 chapter . [and not otherwise.]

3-41 [4.] 6. The State of Nevada reserves for its own present and future use

3-42 all rights to the use and diversion of water acquired pursuant to chapter

3-43 462, Statutes of Nevada 1963, or otherwise existing within the watersheds

4-1 of Marlette Lake, Franktown Creek and Hobart Creek and not lawfully

4-2 appropriated on April 26, 1963, by any person other than the Marlette Lake

4-3 Company. [No such right may] Such a right must not be appropriated by

4-4 any person without the express consent of the legislature.

4-5 Sec. 4. 1. The legislature hereby finds and declares that a general

4-6 law cannot be made applicable to the purposes, objects, powers, rights,

4-7 privileges, liabilities and duties provided in this section because of the

4-8 number of atypical factors and special conditions relating thereto.

4-9 2. The Newlands Project Water Rights Fund is hereby established to be

4-10 administered by the Carson Water Subconservancy District. The money in

4-11 the fund may only be used for the support of the program established

4-12 pursuant to subsection 3. The District may accept gifts and grants for

4-13 deposit in the Fund and shall make every effort to secure money for the

4-14 Fund from:

4-15 (a) The Federal Government;

4-16 (b) The State of Nevada;

4-17 (c) Sierra Pacific Power Company or its affiliates;

4-18 (d) Carson Water Subconservancy District;

4-19 (e) Carson-Truckee Water Conservancy District; and

4-20 (f) Any other interested parties.

4-21 3. The Carson Water Subconservancy District shall establish a program

4-22 for the acquisition of surface water rights to assist in the resolution of legal

4-23 and administrative challenges in existence on April 1, 1999, regarding

4-24 water rights for the Newlands Reclamation Project. The District shall:

4-25 (a) Adopt criteria for the administration of the program, including,

4-26 without limitation, criteria to determine the fair market value of the water

4-27 rights to be acquired;

4-28 (b) Acquire surface water rights appurtenant to not more than 6,500

4-29 acres of land in the Newlands Reclamation Project at an amount not to

4-30 exceed the fair market value of the water rights;

4-31 (c) Acquire these water rights only from willing sellers with the

4-32 execution of a suitable binding contract for sale in which the seller

4-33 acknowledges that, upon completion of the sale:

4-34 (1) His right to the water sold is retired and deemed abandoned; and

4-35 (2) He waives any right to claim further compensation for the water

4-36 rights so acquired by the District;

4-37 (d) Retain reasonable fees for the administration of the program; and

4-38 (e) Complete an annual report on the program and make it available for

4-39 public review.

4-40 Sec. 5. The amendatory provisions of sections 1, 2 and 3 of this act:

4-41 1. Do not apply to water rights that are under challenge in any legal or

4-42 administrative proceeding which is pending on or before April 1, 1999; and

5-1 2. Do not constitute a legislative declaration that the law to be applied

5-2 in any such pending proceeding is different from or the same as set forth in

5-3 this act.

5-4 Sec. 6. 1. This act becomes effective upon passage and approval.