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. NRS 533.360 is hereby amended to read as follows:

1-2 533.360 1. Except as otherwise provided in subsection 4, NRS

2-1 (f) The purpose for which the water is to be appropriated.

2-2 The publisher shall add thereto the date of the first publication and the date of the last publication.

2-3 2. Except as otherwise provided in subsection 4, proof of publication must be filed within 30 days 2-4 after the final day of publication. The state

2-5 engineer shall pay for the publication from the application fee. If the application is canceled for any 2-6 reason before publication, the state engineer

2-7 shall return to the applicant that portion of the application fee collected for publication.

2-8 3. If the application is for a proposed well:

2-9 (a) In a county whose population is less than 400,000;

2-10 (b) For municipal, quasi-municipal or industrial use; and

2-11 (c) Whose reasonably expected rate of diversion is one-half cubic foot

2-12 per second or more,

2-13 the applicant shall mail a copy of the notice of application to each owner of

2-14 real property containing a domestic well that is within 2,500 feet of the proposed well . [, to his] The 2-15 notice must be mailed to the address of the

2-16 owner as shown in the latest records of the county assessor. If there are not more than six [such] of 2-17 those wells, notices must be sent to each owner by

2-18 certified mail, return receipt requested. If there are more than six [such] of those wells, at least six 2-19 notices must be sent to owners by certified mail,

2-20 return receipt requested. The return receipts from [these] the notices must be filed with the state 2-21 engineer before he may consider the application.

2-22 4. The provisions of this section do not apply to an environmental permit.

2-23 Sec. 2. NRS 533.370 is hereby amended to read as follows:

2-24 533.370 1. Except as otherwise provided in this section and NRS

2-37 reasonable diligence.

3-1 2. Except as otherwise provided in subsection [5,] 6, the state engineer shall [either] approve or 3-2 reject each application within 1 year after the final

3-3 date for a filing protest. However:

3-4 (a) Action [can] may be postponed by the state engineer upon written

3-5 authorization to do so by the applicant or, [in case of a protested application, by both] if an 3-6 application is protested, by the protestant and

3-7 the applicant; and

3-8 (b) In areas where studies of water supplies are being made or where

3-9 court actions are pending, the state engineer may withhold action until it is determined there is 3-10 unappropriated water or the court action becomes final.

3-11 3. Except as otherwise provided in this subsection [5, where there] and subsection 6, if action on 3-12 an application for an interbasin transfer of

3-13 ground water is postponed or withheld pursuant to subsection 2, and the application is not 3-14 approved or rejected within 5 years after the final date

3-15 for filing a protest to the application, the application must be subordinated to each application to 3-16 appropriate ground water from the

3-17 basin of origin that is filed after the application. The provisions of this subsection do not apply to 3-18 an application for an interbasin transfer of

3-19 ground water for which action is withheld pursuant to paragraph (b) of subsection 2 because of a 3-20 pending court action.

3-21 4. Except as otherwise provided in subsection 6, if an application specified in subsection 1 is 3-22 submitted to the state engineer and:

3-23 (a) There is no unappropriated water in the proposed source of supply [, or where its] ;

3-24 (b) The proposed use or change set forth in the application conflicts with existing rights [,] or 3-25 threatens to prove detrimental to the public

3-26 interest [,] ; or

3-27 (c) The application is for an interbasin transfer of ground water and

3-28 approval of the application would be inconsistent with the protection of the identified 3-29 requirements for ground water for present and future

3-30 development in the basin of origin,

3-31 the state engineer shall reject the application and refuse to issue the

3-32 requested permit. [Where] If a previous application for a similar use of water within the same basin 3-33 has been rejected on [these] those grounds, the

3-34 new application may be denied without publication. In determining whether an application must be 3-35 rejected pursuant to paragraph (c), the

3-36 state engineer shall consider the economy, environment and quality of life in the basin of origin.

3-37 [4.] 5. If a hearing is held regarding an application, the decision of the state engineer must be in 3-38 writing and include findings of fact, conclusions

3-39 of law and a statement of the underlying facts supporting the findings of fact. The written decision 3-40 may take the form of a transcription of an oral

3-41 ruling. The rejection or approval of an application must be endorsed on a

4-1 copy of the original application, and a record made of the endorsement in the records of the state 4-2 engineer. The copy of the application so endorsed

4-3 must be returned to the applicant. Except as otherwise provided in subsection [6,] 7, if the application 4-4 is approved, the applicant may, on

4-5 receipt thereof, proceed with the construction of the necessary works and take [all] any steps required 4-6 to apply the water to beneficial use and to

4-7 perfect the proposed appropriation. If the application is rejected , the applicant may take no steps 4-8 toward the prosecution of the proposed work

4-9 or the diversion and use of the public water [so] as long as the rejection continues in force.

4-10 [5.] 6. The provisions of subsections 1 [, 2 and 3] to 4, inclusive, do not apply to an application for 4-11 an environmental permit.

4-12 [6.] 7. The provisions of subsection [4] 5 do not authorize the recipient of an approved application 4-13 to use any state land administered by the

4-14 division of state lands of the state department of conservation and natural resources without the 4-15 appropriate authorization for [such a] that use from

4-16 the state land registrar.

4-17 8. As used in this section, "basin of origin" means a basin from

4-18 which ground water is proposed to be transferred to another basin.

4-19 Sec. 3. NRS 538.171 is hereby amended to read as follows:

4-20 538.171 1. The commission shall receive, protect and safeguard and hold in trust for the State of 4-21 Nevada all water and water rights, and all

4-41 shall also furnish to the state engineer any other information it possesses

5-1 relating to the use of water from the Colorado River which the state

5-2 engineer deems necessary to allow him to act on applications for permits for the subsequent 5-3 appropriation of [these] those waters after they fall

5-4 within the [state engineer’s jurisdiction.] jurisdiction of the state engineer.

5-5 4. Notwithstanding any provision of chapter 533 of NRS, any original

5-6 appropriation and use of the waters described in subsection 1 by the

5-7 commission or by any entity to whom or with whom the commission has

5-8 contracted the water is not subject to regulation by the state engineer.