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 534 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 If the state engineer issues a temporary permit pursuant to NRS

1-4 534.120 or if a well for domestic use is drilled in an area in which he has

1-5 issued such a temporary permit, he shall file a notice with the county

1-6 recorder of the county in which the permit is issued or the well is drilled.

1-7 The notice must include a statement indicating that, if and when water

1-8 can be furnished by an entity such as a water district or a municipality

1-9 engaged in furnishing water to the inhabitants of the designated area:

1-10 1. A temporary permit may be revoked;

1-11 2. The owner of a domestic well may be prohibited from deepening

1-12 or repairing the well; and

1-13 3. The owner of the property served by the well may be required to

1-14 connect to this water source at his own expense.

1-15 Sec. 2. NRS 534.120 is hereby amended to read as follows:

1-16 534.120 1. Within an area that has been designated by the state

1-17 engineer, as provided for in this chapter where, in his judgment, the ground

2-1 water basin is being depleted, the state engineer in his administrative

2-2 capacity is herewith empowered to make such rules, regulations and orders

2-3 as are deemed essential for the welfare of the area involved.

2-4 2. In the interest of public welfare, the state engineer is authorized and

2-5 directed to designate preferred uses of water within the respective areas so

2-6 designated by him and from which the ground water is being depleted, and

2-7 in acting on applications to appropriate ground water he may designate

2-8 such preferred uses in different categories with respect to the particular

2-9 areas involved within the following limits: Domestic, municipal,

2-10 quasi-municipal, industrial, irrigation, mining and stock-watering uses and

2-11 any uses for which a county, city, town, public water district or public

2-12 water company furnishes the water.

2-13 3. [The] Except as otherwise provided in subsection 5, the state

2-14 engineer may:

2-15 (a) Issue temporary permits to appropriate ground water which can be

2-16 limited as to time and which may , except as limited by subsection 4, be

2-17 revoked if and when water can be furnished by an entity such as a water

2-18 district or a municipality presently engaged in furnishing water to the

2-19 inhabitants thereof.

2-20 (b) Deny applications to appropriate ground water for any [purpose] use

2-21 in areas served by such an entity.

2-22 (c) Limit the depth of domestic wells.

2-23 (d) Prohibit the drilling of wells for domestic use, as defined in NRS

2-24 534.013 and 534.0175 , [and 534.180,] in areas where water can be

2-25 furnished by an entity such as a water district or a municipality presently

2-26 engaged in furnishing water to the inhabitants thereof.

2-27 4. The state engineer may revoke a temporary permit issued pursuant

2-28 to subsection 3 for residential use, and require a person to whom ground

2-29 water was appropriated pursuant to the permit to obtain water from an

2-30 entity such as a water district or a municipality engaged in furnishing

2-31 water to the inhabitants of the designated area, only if:

2-32 (a) The distance from the property line of any parcel served by a well

2-33 pursuant to a temporary permit to the pipes and other appurtenances of

2-34 the proposed source of water to which the property will be connected is

2-35 not more than 180 feet;

2-36 (b) The well providing water pursuant to the temporary permit needs

2-37 to be redrilled or have repairs made which require the use of a well-

2-38 drilling rig; and

2-39 (c) The holder of the permit will be offered financial assistance to pay

2-40 not more than 85 percent, as determined by the entity providing the

2-41 financial assistance, of the cost of the local and regional connection fees

3-1 and capital improvements necessary for making the connection to the

3-2 proposed source of water.

3-3 In a basin that has a water authority that has a ground water

3-4 management program, the state engineer shall not revoke the temporary

3-5 permit unless the water authority abandons and plugs the well and pays

3-6 the costs related thereto. If there is not a water authority in the basin that

3-7 has a ground water management program, the person shall abandon and

3-8 plug his well in accordance with the rules of the state engineer.

3-9 5. The state engineer may, in an area in which he has issued

3-10 temporary permits pursuant to subsection 3, limit the depth of a domestic

3-11 well pursuant to paragraph (c) of subsection 3 or prohibit repairs from

3-12 being made to a well, and may require the person proposing to deepen or

3-13 repair the well to obtain water from an entity such as a water district or a

3-14 municipality engaged in furnishing water to the inhabitants of the

3-15 designated area, only if:

3-16 (a) The distance from the property line of any parcel served by the

3-17 well to the pipes and other appurtenances of the proposed source of water

3-18 to which the property will be connected is not more than 180 feet;

3-19 (b) The deepening or repair of the well would require the use of a

3-20 well-drilling rig; and

3-21 (c) The person proposing to deepen or repair the well will be offered

3-22 financial assistance to pay not more than 85 percent, as determined by

3-23 the entity providing the financial assistance, of the cost of the local and

3-24 regional connection fees and capital improvements necessary for making

3-25 the connection to the proposed source of water.

3-26 In a basin that has a water authority that has a ground water

3-27 management program, the state engineer shall not prohibit the

3-28 deepening or repair of a well unless the water authority abandons and

3-29 plugs the well and pays the costs related thereto. If there is not a water

3-30 authority in the basin that has a ground water management program, the

3-31 person shall abandon and plug his well in accordance with the rules of

3-32 the state engineer.

3-33 6. For good and sufficient reasons the state engineer may exempt the

3-34 provisions of this section with respect to public housing authorities.

3-35 Sec. 3. The legislative committee on public lands shall conduct a study

3-36 of issues related to residential, municipal and quasi-municipal water wells

3-37 in the State of Nevada and report its findings and recommendations to the

3-38 71st session of the Nevada legislature. The legislative commission shall

3-39 appoint two additional senators and two additional assemblymen to the

3-40 legislative committee on public lands for the purposes of this study. The

3-41 chairman of the legislative committee on public lands shall appoint a

3-42 technical advisory committee to assist in conducting the study with

4-1 representation from urban and rural areas, well owners, suppliers of

4-2 municipal water, holders of water rights, and ratepayers.

4-3 Sec. 4. 1. This section and sections 2 and 3 of this act become

4-4 effective on July 1, 1999.

4-5 2. Section 1 of this act becomes effective on October 1, 1999.

4-6 3. Section 2 of this act expires by limitation on July 1, 2005.