An  Act concerning water; relating to review of certain decisions of the chief engineer of
      the division of water resources of the department of agriculture; relating to issuance of
      certificates of appropriation; providing for the secretary of agriculture to review and
      make recommendations relating to certain rules and regulations; providing for the Kan-
      sas water office to study and make recommendations regarding certain matters; amend-
      ing K.S.A. 42-703, 42-722, 42-722a, 82a-708b, 82a-711, 82a-714, 82a-718, 82a-724 and
      82a-1038 and repealing the existing sections.


     
Be it enacted by the Legislature of the State of Kansas:

      Section  1. On and after July 1, 1999, K.S.A. 42-703 is hereby
amended to read as follows: 42-703. Upon receipt of the application of
the proposed irrigation district by the chief engineer, the chief engineer
shall cause to be published at applicant's expense, once each week for
three consecutive weeks, in a newspaper or newspapers of general cir-
culation in the vicinity of the watercourse or source of supply from which
water is sought for the land to be included in the proposed irrigation
district, a notice of hearing upon such application. The published notice
shall be directed to all persons concerned, without specifically naming
any person. Such notice shall contain among other matters a general de-
scription of boundaries of the district as proposed; the purpose of the
district as proposed; the source of the water supply sought for use and
the approximate point of diversion proposed; and the date and place of
hearing. Incorporated cities shall be excluded from such district. Any
person interested, at any time after first publication of such notice and
prior to the expiration of 60 days after the first publication of such notice,
may file in duplicate with the chief engineer, a verified written protest
against the approval of such application, stating therein all reasons relied
upon in objection thereto, which objections shall be duly considered by
the chief engineer.

      A person who signs a petition and application for the organization and
incorporation of a proposed irrigation district shall be permitted to with-
draw such person's name as a signer only if the chief engineer determines
that the signature was obtained by fraud, undue influence or mutual mis-
take of fact. All applications for withdrawal of a signature from the petition
must be filed with the chief engineer, within 30 days after the first pub-
lication of the notice of hearing. The chief engineer may hear and deter-
mine any such application for withdrawal of a signature in advance of the
hearing for approval of the petition for establishment and organization of
the proposed irrigation district.

      Any action of the chief engineer upon an application of a proposed
irrigation district is subject to review in accordance with the provisions of
section 10 and amendments thereto. Any action upon such review is sub-
ject to review in accordance with the act for judicial review and civil
enforcement of agency actions.

      Sec.  2. On and after July 1, 1999, K.S.A. 42-722 is hereby amended
to read as follows: 42-722. Except as provided by K.S.A. 42-722a and
amendments thereto, whenever a petition signed by a majority of the
members of the board of directors of an irrigation district, or by a majority
of the qualified owners of irrigable land within a district as defined in
K.S.A. 42-701, and amendments thereto, organized or existing under pro-
visions of this act, is presented to the chief engineer praying for the dis-
solution of the district, and it shall appear from the petition that the
district has no real property; that the board of directors has not held a
meeting, other than those meetings held for the purpose of considering
any aspect of the election of members of the board of directors, for more
than one year prior to the date resulting in signing and presentation of
the petition; and that the district is not functioning, had ceased to function
and will probably continue inoperative and that all indebtedness and ob-
ligations of the district have been satisfied, the chief engineer, after such
finding, shall issue a certificate in duplicate, declaring the irrigation dis-
trict dissolved. The chief engineer shall forward the original of the cer-
tificate to the secretary of state and the duplicate to the secretary of the
board of directors of the irrigation district. The certificate shall: (a) Direct
the secretary of the district to file all minutes and records of the district
with the county clerk of the county wherein the registered office of the
irrigation district is located; (b) direct the officer of such district having
custody of any personal property other than moneys to make such dis-
position as the chief engineer deems proper; and (c) direct the treasurer
of such district to transfer to the county treasurers of the counties within
such district, moneys held in the name of the district, to be distributed
by such treasurer in proportion to the number of acres of each county
within the district. The county treasurer shall deposit such moneys into
the county general fund. The irrigation district shall be dissolved and
cease to exist upon expiration of 30 days after the date of the issuance of
such certificate, or upon expiration of 30 days after a final order pursuant
to section 10 and amendments thereto or a final judicial determination
affirming the findings of the chief engineer, as set out in the certificate,
in event that an appeal is taken to the court therefrom.

      Sec.  3. On and after July 1, 1999, K.S.A. 42-722a is hereby amended
to read as follows: 42-722a. The board of directors of Cedar Bluff irri-
gation district No. 6 may present a petition, adopted by a majority of the
directors, to the chief engineer requesting the dissolution of such district.
The petition shall state the district has no real property; and that the
district is not functioning, had ceased to function and probably will con-
tinue inoperative; and that all indebtedness and obligations of the district
have been satisfied. Upon finding that the petition is true, the chief en-
gineer shall issue a certificate in duplicate, declaring the irrigation district
dissolved, and shall forward the original of the certificate to the secretary
of state and the duplicate to the secretary of the board of directors of the
irrigation district. The certificate shall: (a) Direct the secretary of the
district to file all minutes and records of the district with the county clerk
of the county wherein the registered office of the irrigation district is
located; (b) direct the officer of such district having custody of any per-
sonal property other than moneys to make such disposition as the chief
engineer deems proper; and (c) direct the treasurer of such district to
distribute moneys held in the name of the district to the owners of prop-
erty within the irrigation district. Such moneys shall be apportioned to
each property owner in the district in the same proportion that the num-
ber of irrigable acres owned by a property owner, and located in such
district, bears to the total number of irrigable acres in the district. The
irrigation district shall be dissolved and cease to exist upon expiration of
30 days after the date of the issuance of such certificate, or upon expi-
ration of 30 days after a final order pursuant to section 10 and amend-
ments thereto or final judicial determination affirming the findings of the
chief engineer, as set out in the certificate, in event that an appeal is taken
to the court therefrom.

      Sec.  4. On and after July 1, 1999, K.S.A. 82a-708b is hereby amended
to read as follows: 82a-708b. (a) Any owner of a water right may change
the place of use, the point of diversion or the use made of the water,
without losing priority of right, provided such owner shall: (1) Apply in
writing to the chief engineer for approval of any proposed change; (2)
demonstrate to the chief engineer that any proposed change is reasonable
and will not impair existing rights; (3) demonstrate to the chief engineer
that any proposed change relates to the same local source of supply as
that to which the water right relates; and (4) receive the approval of the
chief engineer with respect to any proposed change. The chief engineer
shall approve or reject the application for change in accordance with the
provisions and procedures prescribed for processing original applications
for permission to appropriate water. If the chief engineer disapproves the
application for change, the rights, priorities and duties of the applicant
shall remain unchanged. Any person aggrieved by an order or decision
by the chief engineer relating to an application for change may appeal to
the district court in the manner prescribed by K.S.A. 82a-724 and amend-
ments thereto petition for review thereof in accordance with the provi-
sions of section 10 and amendments thereto.

      (b) Each application to change the place of use, the point of diversion
or the use made of the water under this section shall be accompanied by
the application fee set forth in the schedule below:

Any application submitted which requests two of the types of changes set
forth above shall be accompanied by a fee of $150. Any application which
requests three types of changes shall be accompanied by a fee of $250.

      (c) All fees collected by the chief engineer pursuant to this section
shall be remitted to the state treasurer as provided in K.S.A. 82a-731 and
amendments thereto.

      Sec.  5. On and after July 1, 1999, K.S.A. 82a-711 is hereby amended
to read as follows: 82a-711. (a) If a proposed use neither impairs a use
under an existing water right nor prejudicially and unreasonably affects
the public interest, the chief engineer shall approve all applications for
such use made in good faith in proper form which contemplate the util-
ization of water for beneficial purpose, within reasonable limitations ex-
cept that the chief engineer shall not approve any application submitted
for the proposed use of fresh water in any case where other waters are
available for such proposed use and the use thereof is technologically and
economically feasible. Otherwise, the chief engineer shall make an order
rejecting such application or requiring its modification to conform to the
public interest to the end that the highest public benefit and maximum
economical development may result from the use of such water.

      (b) In ascertaining whether a proposed use will prejudicially and un-
reasonably affect the public interest, the chief engineer shall take into
consideration:

      (1) Established minimum desirable streamflow requirements;

      (2) the area, safe yield and recharge rate of the appropriate water
supply;

      (3) the priority of existing claims of all persons to use the water of
the appropriate water supply;

      (4) the amount of each claim to use water from the appropriate water
supply; and

      (5) all other matters pertaining to such question.

      (c) With regard to whether a proposed use will impair a use under
an existing water right, impairment shall include the unreasonable raising
or lowering of the static water level or the unreasonable increase or de-
crease of the streamflow or the unreasonable deterioration of the water
quality at the water user's point of diversion beyond a reasonable eco-
nomic limit. Any person aggrieved by any order or decision by the chief
engineer relating to that person's application for a permit to appropriate
water may appeal to the district court in the manner prescribed by K.S.A.
82a-724, and amendments thereto petition for review thereof in accord-
ance with the provisions of section 10 and amendments thereto.

      Sec.  6. On and after July 1, 1999, K.S.A. 82a-714 is hereby amended
to read as follows: 82a-714. (a) Upon the completion of the construction
of the works and the actual application of water to the proposed beneficial
use within the time allowed, the applicant shall notify the chief engineer
to that effect. The chief engineer or the chief engineer's duly authorized
representative shall then examine and inspect the appropriation diversion
works and, if it is determined that the appropriation diversion works have
been completed and the appropriation right perfected in conformity with
the approved application and plans, the chief engineer shall issue a cer-
tificate of appropriation in duplicate. The original of such certificate shall
be sent to the owner and shall be recorded with the register of deeds in
the county or counties wherein the point of diversion is located, as are
other instruments affecting real estate, and the duplicate shall be made
a matter of record in the office of the chief engineer.

      (b) Not later than 60 days before the expiration of the time allowed
in the permit to complete the construction of the appropriation diversion
works or the time allowed in the permit to actually apply water to the
proposed beneficial use, the chief engineer shall notify the permit holder
by certified mail that any request for extension of such time must be filed
with the chief engineer before the expiration of the time allowed in the
permit.

      (c) Unless the applicant requests an extension or the certificate has
not been issued due to the applicant's failure to comply with reasonable
requests for information or to allow the opportunity to examine and in-
spect the appropriation diversion works, as necessary for certification, the
chief engineer shall certify an appropriation:

      (1) Before July 1, 2004, if the time allowed in the permit to perfect
the water right expired before July 1, 1999; or

      (2) not later than five years after the date the applicant notifies the
chief engineer of the completion of construction of the works and the
actual application of water to the proposed beneficial use within the time
allowed, in all other cases.

      If the chief engineer fails to issue a certificate within the time provided
by this subsection, the applicant may request review, pursuant to section
10 and amendments thereto, of the chief engineer's failure to act.

      (b) (d) Except for works constructed to appropriate water for do-
mestic use, each notification to the chief engineer under subsection (a)
shall be accompanied by a field inspection fee of $200. Failure to pay the
field inspection fee, after reasonable notice by the chief engineer of such
failure, shall result in the permit to appropriate water being revoked,
forfeiture of the priority date and revocation of any appropriation right
that may exist. All fees collected by the chief engineer pursuant to this
section shall be remitted to the state treasurer as provided in K.S.A. 82a-
731 and amendments thereto.

      (c) (e) A request for an extension of time to: (1) Complete the diver-
sion works; or (2) perfect the water right, shall be accompanied by a fee
of $50.

      (d) (f) A request to reinstate a water right or a permit to appropriate
water which has been dismissed shall be filed with the chief engineer
within 60 days of the date dismissed and shall be accompanied by a fee
of $100.

      Sec.  7. On and after July 1, 1999, K.S.A. 82a-718 is hereby amended
to read as follows: 82a-718. All appropriations of water must be for some
beneficial purpose. Every water right of every kind shall be deemed aban-
doned and shall terminate when without due and sufficient cause no
lawful, beneficial use is henceforth made of water under such right for
three successive years. Before any water right shall be declared aban-
doned and terminated the chief engineer shall conduct a hearing thereon
in accordance with the provisions of the Kansas administrative procedure
act. Notice shall be served on the user at least 30 days before the date of
the hearing. The determination of the chief engineer pursuant to this
section shall be subject to review in accordance with the provisions of
section 10 and amendments thereto.

      The verified report of the chief engineer or such engineer's authorized
representative shall be prima facie evidence of the abandonment and
termination of any water right.

      Sec.  8. On and after July 1, 1999, K.S.A. 82a-724 is hereby amended
to read as follows: 82a-724. Any order pursuant to section 10 and amend-
ments thereto upon review of any action of the chief engineer pursuant
to K.S.A. 82a-704a, 82a-708b, 82a-711 or 82a-718, and amendments
thereto, is subject to review in accordance with the act for judicial review
and civil enforcement of agency actions.

      Sec.  9. On and after July 1, 1999, K.S.A. 82a-1038 is hereby amended
to read as follows: 82a-1038. (a) In any case where the chief engineer
finds that any one or more of the circumstances set forth in K.S.A. 82a-
1036 and amendments thereto exist and that the public interest requires
that any one or more corrective controls be adopted, the chief engineer
shall designate, by order, the area in question, or any part thereof, as an
intensive groundwater use control area.

      (b) The order of the chief engineer shall define specifically the
boundaries of the intensive groundwater use control area and shall indi-
cate the circumstances upon which the findings of the chief engineer are
made. The order of the chief engineer may include any one or more of
the following corrective control provisions: (1) A provision closing the
intensive groundwater use control area to any further appropriation of
groundwater in which event the chief engineer shall thereafter refuse to
accept any application for a permit to appropriate groundwater located
within such area; (2) a provision determining the permissible total with-
drawal of groundwater in the intensive groundwater use control area each
day, month or year, and, insofar as may be reasonably done, the chief
engineer shall apportion such permissible total withdrawal among the
valid groundwater right holders in such area in accordance with the rel-
ative dates of priority of such rights; (3) a provision reducing the permis-
sible withdrawal of groundwater by any one or more appropriators
thereof, or by wells in the intensive groundwater use control area; (4) a
provision requiring and specifying a system of rotation of groundwater
use in the intensive groundwater use control area; (5) any one or more
other provisions making such additional requirements as are necessary to
protect the public interest. The chief engineer is hereby authorized to
delegate the enforcement of any corrective control provisions ordered for
an intensive groundwater use control area to groundwater management
district number 4 or to any city, if such district or city is located within
or partially within the boundaries of such area.

      (c) Except as provided by subsection (d), the order of designation of
an intensive groundwater use control area shall be in full force and effect
from the date of its entry in the records of the chief engineer's office
unless and until its operation shall be stayed by an appeal therefrom from
an order entered on review of the chief engineer's order pursuant to sec-
tion 10 and amendments thereto in accordance with the provisions of the
act for judicial review and civil enforcement of agency actions. The chief
engineer upon request shall deliver a copy of such order to any interested
person who is affected by such order, and shall file a copy of the same
with the register of deeds of any county within which such designated
control area lies.

      (d) If the holder of a groundwater right within the area designated
as an intensive groundwater use control area applies for review of the
order of designation pursuant to section 10 and amendments thereto, the
provisions of the order with respect to the inclusion of the holder's right
within the area may be stayed in accordance with the Kansas adminis-
trative procedure act.

      New Sec.  10. (a) Orders of the chief engineer of the division of water
resources of the department of agriculture pursuant to K.S.A. 42-703, 42-
722, 42-722a, 82a-708b, 82a-711, 82a-718 and 82a-1038, and amend-
ments thereto, and failure of the chief engineer to act pursuant to K.S.A.
82a-714, and amendments thereto, shall be subject to review in accord-
ance with the provisions of the Kansas administrative procedure act.

      Such review shall be conducted by the secretary of agriculture or by
an administrative law judge or presiding officer from the office of admin-
istrative hearings within the department of administration. The secretary
of agriculture shall not have the authority otherwise to designate a pre-
siding officer to conduct such review.

      (b) The order of the secretary of agriculture or the administrative law
judge or presiding officer upon review pursuant to subsection (a) shall be
a final order under the Kansas administrative procedure act. Such order
shall not be subject to reconsideration pursuant to K.S.A. 77-529 and
amendments thereto and shall be subject to review in accordance with
the act for judicial review and civil enforcement of agency actions.

      (c) This act shall not affect any administrative proceeding pending
before the chief engineer of the division of water resources of the de-
partment of agriculture, the secretary of agriculture or any administrative
hearing officer on July 1, 1999, and such matter shall proceed as though
no change in the law had been made with regard to such proceeding.

      (d) The provisions of this section shall take effect on and after July
1, 1999.

      New Sec.  11. (a) The office of administrative hearings within the
department of administration shall contract with or employ administrative
law judges or presiding officers, court reporters and other support per-
sonnel as necessary to conduct proceedings required by section 10 and
amendments thereto. Any administrative law judge or presiding officer
contracted with or employed to conduct such proceedings shall be ad-
mitted to practice law in this state and shall be knowledgeable by training
and experience in water policies and administrative procedure. For the
purposes of this section, the office may employ regular part-time person-
nel. Persons employed by the office of administrative hearings pursuant
to this section shall be under the classified civil service.

      (b) The office of administrative hearings within the department of
administration may establish and collect reasonable amounts for services
provided pursuant to this section.

      New Sec.  12. (a) (1) On or before November 15, 1999, the chief
engineer of the division of water resources of the department of agricul-
ture, in accordance with K.S.A. 77-420 and amendments thereto, shall
submit to the secretary of administration and the attorney general pro-
posed rules and regulations containing all current standards, statements
of policy and general orders that: (A) Have been issued or adopted by
the chief engineer; (B) are of general application and have the effect of
law; and (C) are not contained in current rules and regulations adopted
by the chief engineer.

      (2) If any standard, statement of policy or general order described in
subsection (a) (1) is not submitted as required by subsection (a), such
standard, statement of policy or general order shall be void and of no
effect after November 15, 1999, until adopted by rules and regulations.

      (b)  (1) On or before March 1, 2000, each groundwater management
district shall submit to the chief engineer of the division of water re-
sources of the department of agriculture recommended rules and regu-
lations containing all current standards, statements of policy and general
orders that: (A) Have been issued or adopted by such district; (B) are of
general application within the district and have the effect of law; and (C)
are not contained in current rules and regulations adopted by the chief
engineer.

      (2) If any standard, statement of policy or general order described in
subsection (b)(1) is not submitted as required by that subsection, such
standard, statement of policy or general order shall be void and of no
effect after March 1, 2000, until adopted by rules and regulations.

      New Sec.  13.  The chief engineer of the division of water resources
of the department of agriculture, for good cause shown, may grant an
exemption from or waiver of a rule and regulation adopted by the chief
engineer if the chief engineer determines that the exemption or waiver
will not prejudicially or unreasonably affect the public interest and will
not impair any existing water right. The exemption or waiver shall be in
writing and shall include the reason for the exemption or waiver.

      New Sec.  14. Before any proposed rules and regulations of the chief
engineer of the division of water resources of the department of agricul-
ture are submitted to the secretary of administration or the attorney gen-
eral pursuant to K.S.A. 77-420, and amendments thereto:

      (a) The chief engineer shall submit such rules and regulations to the
secretary of agriculture; and

      (b) the secretary of agriculture shall review and make recommenda-
tions to the chief engineer regarding such proposed rules and regulations.

      New Sec.  15. (a) The Kansas water authority shall study and develop
recommendations related to:

      (1) The appropriateness of the procedures and the time required for
perfection of water rights and other provisions of and procedures under
the Kansas water appropriation act;

      (2) siltation rates of public water supply impoundments and reser-
voirs and the impacts of such siltation on public water supply storage,
flood control and recreational opportunities;

      (3) aquifer resources, recharge rates, availability of surface water re-
sources and the long-term prospects related to any necessary transition
to dryland farming in areas of the state to maintain sustainable yield and
minimum streamflow levels;

      (4) water conservation plans and programs and means to improve the
effectiveness of such plans and programs; and

      (5) the potential for competing water needs for at least the next 20
years and means of addressing the competition.

      (b) On or before January 8, 2001, the Kansas water authority shall
submit to the house standing committee on environment, the senate
standing committee on energy and natural resources and the house and
senate standing committees on agriculture a report of the authority's find-
ings and recommendations regarding matters studied pursuant to this
section.

 Sec.  16. On and after July 1, 1999, K.S.A. 42-703, 42-722, 72-722a,
82a-708b, 82a-711, 82a-714, 82a-718, 82a-724 and 82a-1038 are hereby
repealed.

 Sec.  17. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certify that the above BILL originated in the
SENATE, and passed that body

____________________________________

SENATE adopted
  Conference Committee Report ______________________________

Passed the HOUSE
     as amended ______________________________

HOUSE adopted
  Conference Committee Report ______________________________

APPROVED ______________________________