1. The Legislature finds and declares that the people of this State have a paramount interest in the maximum use of all the water of the State and in efficient and effective water distribution to the public by governmental subdivisions, thus ensuring the public’s health and safety.

2. Whenever the system for the distribution of water of a governmental subdivision of this State has been damaged by flood or other act of God, resulting in an emergency condition of a shortage of water for public use, the governing body of the governmental subdivision may make application to the Director for a loan to assist in repairing the damage. The application must be made in the manner and form prescribed by the Director. The Director shall transmit the application to the Bureau of Environmental Health of the Division of Public and Behavioral Health of the Department of Health and Human Services requesting an investigation and survey of the damage, and a report thereon. If the report of the Bureau of Environmental Health of the Division of Public and Behavioral Health finds that the damage has resulted in a lack of service and a threat to public health because of the emergency resulting from a shortage of water, the Director may loan money from an appropriate account of the State Department of Conservation and Natural Resources in the State General Fund to repair the damage or to reimburse the governmental subdivision for money expended by it to repair the damage. The Director shall determine the period to be allowed for repayment of the money, not to exceed 20 years after the date of the loan. The Director shall also determine the schedule of repayment of the loans. All money received by the Director as repayments of loans must be deposited in the account from which it was lent.

(Added to NRS by 1961, 447; A 1963, 573; 1973, 1406; 1985, 721)