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all the expenses incurred in and about the conduct of the business of the corporation department, including the salary of the commissioner and his clerks and deputies, traveling expenses, furnishing rooms and rent. All moneys collected or received by the commissioner of corporations under and by virtue of the provisions of this act shall be delivered by him to the treasurer of the state, who shall deposit the same to the credit of said corporation commission fund. And all such fund so deposited or such part thereof as may be necessary for the purposes of this act are hereby appropriated to the use of the corporation commission fund for the purposes of this act. It shall be the duty of the commissioner of corporations semi-annually to certify under oath to the state treasurer and secretary of state the total amount of receipts and expenditures of the state corporation department for the six months preceding. All fees and payments of every description required by this act to be paid to the commissioner of corporations shall be paid by him to the state treasurer on the first day of each week following their receipt by the commissioner of corporations.

Sec. 20. The commissioner of corporations shall adopt a seal with the words “Commissioner of Corporations, State of California," and such other device as the commissioner of corporations may desire engraved thereon by which he shall authenticate the proceedings of his office. Copies of all records and papers in the office of the corporation department shall be received in evidence of all cases equally and with like effect as the originals.

Sec. 21. Every official report made by the commissioner of corporations and every report, duly verified, of an examination made, shall be prima facie evidence of the facts therein stated for all purposes in any action or proceedings wherein any investment company or investment broker is a party.

Sec. 22. If any section, sub-section, sentence, clause or phrase of this act is for any reason held to be unconstitutional, such decision shall not affect the validity of the remaining portions of this act. The legislature hereby declares that it would have passed this act, and each section, sub-section, sentence, clause, and phrase thereof irrespective of the fact that any one or more other sections, sub-sections, sentences, clauses or phrases be declared unconstitutional.

Sec. 23. All acts and parts of acts inconsistent with the provisions of this act are hereby repealed.

Sec. 24. The sum of ten thousand dollars is hereby appropriated out of any moneys in the state treasury not otherwise appropriated for the purpose of carrying this act into effect.

Sec. 25. This act shall take effect November 1, 1913.

AND WHEREAS, said regular session of the said legislature finally adjourned May 12, 1913, and ninety days having not expired since said' final adjournment;

Now, therefore, sufficient qualified electors of the State of California have presented to the secretary of state their petitions asking that said law and act hereinbefore set forth, so passed by the legislature and approved by the governor, as hereinbefore stated, be submitted to the electors of the State of California for their approval or rejection. ARGUMENT IN FAVOR OF INVESTMENT

COMPANIES ACT.
This is the "Blue Sky Law," so-called.

Its purpose is to provide for the protection of investors in stocks and bonds of corporations:

First-By preventing the sale, or offering for sale, by a corporation of stocks or bonds until such corporation has submitted to the commissioner of corporations (an officer created by the act) its plan of business, place of business, amount of stock or bonds to be issued, authorized capital stock, its property or assets, etc., and shall have obtained from such commissioner a license or permit to sell its stocks or bonds.

Second-By preventing the false or fraudulent advertising of such stocks or bonds, by requiring such corporation to submit all such advertising to such commissioner of corporations, who shall have power to prohibit any false or misleading advertising

Third-By providing for the appointment of a commissioner of corporations with powers and duties very similar to those of the superintendent of banks. In fact, the statement of the duties and powers is largely copied from the Bank Act; and the commissioner of corporations is to exercise toward corporations in general, duties similar to those exercised toward banks by the superintendent of banks; those exercised toward insur

ance corporations by the insurance commissioner ; those exercised toward public utilities by the railroad commission; and those exercised toward the building and loan corporations by the building and loan commissioner.

The act is intended to protect the investing public against the purchase of worthless or fraudulently issued stocks and bonds, by providing a supervision of the corporations offering such stocks and bonds for sale and by compelling such corporations to show that the plan under which they propose to operate is measurably, at least, businesslike, with reasonable prospect of success; and by preventing the issuance of false, deceptive and misleading representations with respect to such stocks and bonds. It is intended to furnish protection to the credulous investor, usually the poor investor, who has no means at his own command to make such an investigation as is necessary to insure him protection in his investments. The necessity for the act grew out of the many swindling sales of stocks and bonds by vicious or irresponsible corporations having no tangible or sufficient assets or honest or rational plan of business. It is believed to be as fairly safeguarded as is possible for the protection of the public, and at the same time sufficiently flexible to allow legitimate business to continue without unnecessary interference. LEE C. GATES,

State Senator Thirty-fourth District. ARGUMENT AGAINST INVESTMENT COM

PANIES ACT. If this bill would prevent fraudulent transactions in securities without interfering with legitimate development, it should receive favorable consideration. This act provides that one man will determine whether or not a given plan of business is fair, just, or equitable, and will then authorize the sale of securities by issuing a certificate reciting in bold type that its issuance is permissive only and does not constitute a recommendation or endorsement of the securities.

It is not within the range of possibility that any one man can individually determine whether the multitude of plans of business that will be submitted to him are fair, just, or equitable. It is not possible within the range of reasonable economy for this to be done by the employment of assistants. Based upon actual experience of the failure of seemingly good plans, the commissioner may refuse certificates in almost ninety per cent of the applications. It is the intent to protect against fraud, yet many enterprises may be denied development by reason of a consideration of such failures, and the development which comes from the legitimate speculative tendency of the small investor, by reason of which tendency great development has been made possible, would be greatly retarded. Initiative and development being then dependent upon the banking interests must largely cease and the business of the state will stagnate.

The act also provides for the regulation of all corporations, firms or co-partnerships engaged in miscellaneous business which may desire to issue any form of acknowledgment of indebtedness (excepting notes not offered for public sale), and such regulation is open to the objection that it is not practicable, for the same reasons-one man can not do it, and a corps of assistants necessary for the purpose would involve the state in enormous expense, out of proportion with the good to be accomplished. Legitimate business in the state by virtue of investigations provided may be subjected to unnecessary expense and annoyance.

It opens an avenue for vicious corruption.

Provision made for the certificate that the securities may be offered for sale, and which may be issued as a result of the plausible showing of those most gifted in the art of deception, would offer to the swindler the most telling device for deceiving the ignorant.

The measure is wrong in principle. It will not be effective and its drastic application to legitimate enterprise will inflict more damage than the good it will accomplish.

FRANCIS V. KEESLING,

WATER COMMISSION ACT.

Submitted to electors by referendum. Creates state water commission for control of appropriation and use of waters; defines rights in riparian and unappropriated waters; prescribes procedure for investigation of waters and water rights, appropriation thereof, apportionment of same between claimants, issuance of licenses, and revocation thereof; declares present rights of municipal corporations unaffected.

WHEREAS, the legislature of the State of Cali- the state engineer, respectively. Three members fornia, in regular session in May, 1913, passed, of said commission shall be appointed by the and the governor of the State of California, on governor for the term of four years; provided, the 16th day of June, 1913, approved a certain however, that of the members first appointed law and act, which law and act, together with one shall be appointed to hold office until the its title, is in the words and figures following, first day in January, nineteen hundred and fourto wit:

teen, one until the first day in January, nine. An act to regulate the use of water which is sub

teen hundred and fifteen, and one until ject to such control by the State of California, first day in January, nineteen hundred

and and in that behalf creating a state water sixteen. Such appointive commissioners shal commission; specifying and providing for the be men of practical knowledge or experience appointment of the members of said commission; fixing the terms of office and compensa

in the application and use of waters for irrigation of the members of said commission; fix

tion, mining and municipal purposes, and shall ing the powers, duties and authority of said

be so appointed that at least one thereof shal commission and its members; providing for have had practical knowledge and experience in the filling of vacancies in the membership of the use of water for agricultural purposes, and said commission; providing for the removal one thereof shall have had practical knowledge from office of the appointed members of said

and experience in the use of water for mining commission; providing for the co-operation of courts with said commission; providing

purposes, and one thereof shall have had practhat certain courts shall take judicial notice

tical knowledge and experience in the

use of of certain acts of the state water commis

water for municipal purposes. The commission; specifying the duties of all persons sioners shall elect one of their number president summoned as witnesses before said commis- of the commission. The appointed members of sion or any of its members; appropriating said commission shall each receive as compensamoney for carrying out the provisions of this

tion for his services the sum of five thousand act; providing for the payment of the indebt

dollars per annum. edness and expenses of said commission, its

No commissioner who is members and employees; declaring what

directly or indirectly interested in any matter water is unappropriated; providing for the before the commission shall sit with the comutilization of water and the works necessary mission during the hearing of such matter; nor to such utilization to the full capacity of shall he be detailed by the commission to inves. streams or of such portion or portions of such capacity as the public good may re

tigate or report on any such matter; nor shall quire; declaring what water may be appro

he take part in any determination of any such priated; declaring that the non-application for

matter. But the governor shall have the power ten consecutive years of any portion of the and authority, upon request of the commission, waters of any stream to lands riparian to to appoint pro tempore some distinterested per such stream shall be conclusive presumption son to sit and act in the place and stead of such that the use of such non-applied water is not interested commissioner. Such pro tempore com needed on said riparian lands for a useful or

missioner shall have compensation for the time beneficial purpose; declaring that such non

of service equal to the compensation of a com applied water shall be deemed to be in the use of the state and subject to appropriation;

missioner during such service and shall have the declaring the duties of those who desire to power and authority of the same, only in the appropriate water; declaring the periods for matter for the investigation and determination of which water may be appropriated and the which he shall have been appointed and his conconditions under which water may be appro- nection with the commission shall cease and de priated; providing for the payment of fees

termine upon the completion of the investigation and charges by the applicants for permission

and determination for which he was appointed to appropriate water and by the appropriators of water; providing for the ascertain

But the commissioner in whose place and stead ment and adjudication of water rights; pro

he sits shall have power, compensation and viding for the bringing of actions by certain authority in all other cases. persons, or, upon the direction of the state Sec. 2. Whenever a vacancy in the state water commission, by the attorney general, water commission shall occur, the governor shal for the quieting of title to water rights; specifying certain duties of the claimants,

forthwith appoint a qualified person to fill the possessors or users of water or water rights;

same for the unexpired term. The legislature declaring water rights forfeited under certain by a two-thirds vote of all members elected to conditions; regulating the appropriation of each house, or the governor, may remove any water; excepting cities, cities and counties, one or more of the appointed commissioners municipal water districts, irrigation districts from office. The commission shall have a seal and lighting districts from certain provisions

bearing the following inscription: State water of this act; defining certain words and terms

commission of California. used in this act; repealing all acts or parts

The seal shall bej of acts in conflict with this act; declaring

affixed to all authentications of copies of records how this act shall be known; making legis

and to such other instruments as the commission lative declaration concerning those parts of may direct. All courts shall take judicial notice this act which may not be declared uncon- of said seal. stitutional.

Sec. 3. A majority of the appointed commis, The people of the State of California do enact sioners shall constitute a quorum for the trans! as follows:

action of any business, for the performance of Section 1. For the purpose of carrying out the any duty, or for the exercise of any power of, provisions of this act a state water commission the commission. No vacancy in the commission consisting of five persons is bereby created and shall impair the right of the remaining commis. established. Two members of said eommission sioners to exercise all the powers of the comshall be, ex officio, the governor of the state and mission. The act of a majority of the com.

missioners present, when in session as a board, shall be deemed to be the act of the commission; but any investigations, inquiry or hearing which the commission has power to undertake or hold may be undertaken or held by or before any commissioners or commissioner designated for the purpose by the commission; and every finding, order, ascertainment or decision made by the commissioners or the commissioner so designated pursuant to such investigation, inquiry or hearing, when approved by the commission and ordered filed in its office, shall be and be deemed to be the finding, order, ascertainment or decision of the commission.

Sec. 4. (a) Each commissioner shall have power to administer oaths, certify to all official acts, and to issue subpænas for the attendance of witnesses and the production of papers, books, maps, accounts, documents and testimony in any inquiry, investigation, hearing, ascertainment or proceeding ordered or undertaken by the commission in any part of the state. Each witness who shall appear by order of the commission or any commissioners or a commissioner shall receive for his attendance the same fees and mileage allowed by law to witnesses in civil cases, which amount shall be paid by the party at whose request such witness is subpoenaed. When any witness who has not been required to attend at the request of any party shall be subpænaed by the commission his fees and mileage shall be paid from the funds appropriated for the use of the commission in the same manner as other expenses of the commission are paid. Any witness subpænaed, except one whose fees and mileage may be paid from the funds of the commission, may, at the time of service, demand the fee to which he is entitled for travel to and from the place at which he is required to appear and one day's attendance. If such witness demands such fees at the time of service, and they are not at that time paid or tendered, he shall not be required to attend before the commission or commissioners as directed in the subpæna. All fees and mileage to which any witness is entitled under the provisions of this section may be collected by action therefor instituted by the person to whom such fees are payable. But no witness shall be compelled to attend as a witness before the water commission or any water commissioner or water commissioners out of the county in which he resides, unless the distance be less than thirty miles from his place of residence to the place of hearing.

(b) The superior court of the county or city and county in which any inquiry, investigation, hearing or proceedings may be held by the commission or any commissioner or commissioners shall have the power to compel the attendance of witnesses and the production of papers, maps, bocks, accounts, documents and testimony as required by any subpæna issued by the commission or any commissioner or commissioners. The commission, commissioners or commissioner before whom the testimony is to be given or produced may, in case of the refusal of any witness to attend or testify or produce any papers, maps, books, accounts or documents required by such subpæna, report to the superior court in and for the county or city and county in which the proceeding is pending by petition, setting forth that due notice has been given of the time and place of attendance of said witness, or for the production of said papers, maps, books, accounts or documents and that the witness has been summoned in the manner prescribed in this act, and that the witness has failed and refused to attend or produce the papers, maps, books, accounts or documents required by the subpoena before the commission, commissioners, or commissioner in the cause or proceeding named in the notice and subpæna, or has refused to answer questions propounded to him in the course of such cause or proceeding, and ask an order of said court, compelling the witness to attend, testify, and produce said papers, maps, books, accounts or documents before the commission, or commissioners, or commissioner. The court, upon the petition of the commission or commissioners or commissioner, shall enter an order directing the witness to appear before the court at a time and place to be fixed by the court in such order, the time to be not more than ten days from the date of the order, and then and there show cause, if any he have, why he refused to obey said subpæna, or refused to answer questions propounded to him by said commission, or any commissioners or any commissioner, or neglected, failed or refused to produce before said commission, or any commissioners or any commissioner the books, papers, maps, accounts or documents called for in said subpæna. A copy of said order and the petition therefor shall be served upon said witness. If it shall appear to the court that said subpæna was regularly issued by the commission or any commissioners or a commis

sioner, the court shall thereupon enter an order that said witness appear before the commission or commissioners or commissioner at the time and place fixed in said order, and testify or produce the required papers, maps, books, accounts or documents, or both testify and produce; and upon failure to obey said order said witness shall be dealt with as for contempt of court.

(c) The state water commission or any commissioners or commissioner, or any party to a proceeding before the commission or any commissioners or any commissioner, may in any investigation or hearing before the commission or any commissioners or any commissioner cause the deposition of witnesses residing within or without the state to be taken in the manner prescribed by law for depositions in civil actions in the superior courts of this state.

(d) No person shall be excused from testifying or from producing any book, map, document, paper or account in any investigation or inquiry by or hearing before the commission or any commissioners or commissioner upon the ground that the testimony or evidence, book, map, document, paper or account required of him may tend to incriminate him or subject him to penalty or forfeiture. But no person shall be prosecuted, punished or subjected to any penalty or forfeiture for or on account of any act, transaction, matter or thing material to the matter under investigation by said commission, or any commissioners, or any commissioner concerning which he shall have been compelled to testify or to produce documentary evidence; provided, that no person so testifying or producing shall be exempt from prosecution and punishment for any perjury committed by him in his testimony.

Sec. 5. A full and accurate record of business or acts performed or of testimony taken by the commission or any member or members thereof in pursuance of the provisions of this act shall be kept and be placed on file in the office of said water commission.

Sec. 6. The state water commission shall take, charge and collect the following fees: for copies and records not required to be certified or otherwise authenticated by the commission, ten cents for each folio; for certified copies of official documents and orders filed in its office, fifteen cents for each folio, and one dollar for every certificate under seal affixed thereto; for certified copies of evidence and proceedings before the commission, fifteen cents for each folio. The commission may fix reasonable charges for publications issued under its authority. All fees charged and collected under this section shall be paid, at least once each week, accompanied by a detailed statement thereof, into the treasury of the state.

Sec. 7. For the purpose of carrying out the provisions of this act the state water commission is authorized to pass such necessary rules and regulations as it may from time to time deem advisable, and to appoint and remove at its pleasure a secretary who shall have charge of its books and records and perform such other duties as from time to time may be prescribed and whose salary shall be fixed by the water commission; and the state water commission may also employ such expert, technical and clerical assistance, and upon such terms, as it may deem proper.

Sec. 8. For the purpose of carrying out the provisions of this act the sum of fifty thousand dollars is hereby appropriated for the fiscal years 1913-1914 and 1914-1915 out of any money in the state treasury not otherwise appropriated; and the state controller is hereby authorized and directed to draw warrants upon such sum from time to time upon the requisition of the state water commission approved by the state board of control, and the state treasurer is hereby authorized and directed to pay such warrants.

Sec. 9. All indebtedness incurred for salaries, and all necessary costs in traveling and other expenses of said commission, and each of its members and persons employed by it, while actually engaged in the business of said commission, shall be paid by the state out of the funds hereby appropriated, upon the sworn statement of the person or persons incurring such indebtedness, and upon the requisition of the state water commission, approved by the state board of control, and the state controller is hereby authorized to draw warrants upon the state treasurer for said indebtedness, salaries, costs and expenses, as provided by law for the payment of similar costs and expenses and the drawing of similar warrants.

Sec. 10. The state water commission is hereby authorized and empowered to investigate for the purpose of this act all streams, stream systems, portions of stream systems, lakes, or other bodies of water, and to take testimony in regard to the rights to water or the use of water thereon or therein, and to ascertain whether or not such water, or any portion thereof, or the use of said water or any portion thereof, heretofore filed upon or attempted to be appropriated by any person, firm, association, or corporation, is appropriated under the laws of this state.

Sec. 11. All water or the use of water which has never been appropriated, or which has been heretofore appropriated and which has not been in process, from the date of the initial act of appropriation, of being put, with due diligence in proportion to the magnitude of the work necessary properly to utilize for the purpose of such appropriation such water or the use of water, or which has not been put, or which has ceased to be put to some useful or beneficial purpose, or which may hereafter be appropriated and cease to be put, to the useful or beneficial purpose for which it was appropriated, or which in the future may be appropriated and not be, in the process of being put, from the date of the initial act of appropriation, to the useful or beneficial purpose for which it was appropriated, with due diligence in proportion to the magnitude of the work necessary properly to utilize for the purpose of such appropriation such water or the use of water, is hereby declared to be unappropriated. And all waters flowing in any river, stream, canyon, ravine or other natural channel, excepting so far as such waters have been or are being applied to useful and beneficial purpose upon, or in so far as such waters are or may be reasonably needed for useful, and beneficial purposes upon lands riparian thereto, or otherwise appropriated, is and are hereby declared to be public waters of the State of California and subject to appropriation in accordance with the provisions of this act. If any portion of the waters of any stream shall not be put to a useful or beneficial purpose to or upon lands riparian to such stream for any continuous period of ten consecutive years after the passage of this act, such non-application shall be deemed to be conclusive presumption that the use of such portions of the waters of such stream is not needed upon said riparian lands for any useful or beneficial purpose; and such portion of the waters of any stream so non-applied, unless otherwise appropriated for a useful and beneficial purpose is hereby declared to be in the use of the state and subject to appropriation in accordance with the provisions of this act. In any case where a reservoir or reservoirs have been or shall hereafter under the provisions of this act be constructed or surveyed, laid out and proposed to be constructed for the storage of water for a system, which water is to be used at one or more points under appropriations of water heretofore or hereafter made, which appropriations and rights thereunder are now, or shall hereafter be held and owned by the person or corporation owning such reservoir site or sites and constructing such reservoir or reservoirs, such reservoir or reservoirs and appropriations and rights shall, in the discretion of the state water commission, constitute a single enterprise and unit, and work of constructing such reservoir or reservoirs, or any of them, or work on any one of such appropriations shall, in the discretion of said commission, be sufficient to maintain and preserve all such applications for appropriations and rights thereunder.

Sec. 12. The state water commission shall have authority to, and may, for good cause shown, upon the application of any appropriator or user of water under an appropriation made and maintained according to law prior to the passage of this act, prescribe the time within which the full amount of the water appropriated shall be applied to a useful or beneficial purpose; provided, that said appropriator or user shall have proceeded, with due diligence in proportion to the magnitude of the project, to carry on the work necessary to put the water to a beneficial use; and in determining said time said commission shall grant a reasonable time after the construction of the works or canal or ditch or conduits or storage system used for the diversion, conveyance or storage of water; and in doing so said commission shall also take into consideration the cost of the application of such water to the useful or beneficial purpose, the good faith of the appropriator, the market for water or power to be supplied, the present demand therefor, and the income or use that may be required to provide fair and reasonable returns upon the investment and any other facts or matters pertinent to the inquiry.

Upon prescribing such time the state water commission shall issue a certificate showing its determination of the matter. For good

eause shown, the state water commission may extend the time by granting further certificates. And, for the time so prescribed or extended, the said appropriator or user shall be deemed to be putting said water to a beneficial use.

And if at any time it shall appear to the state water commission, after a hearing of the parties interested and an investigation, that the full capacity of the works built or constructed, or being built or constructed, under an appropriation of water or the use thereof made under the provisions of this act has not developed or can not develop the full capacity the stream at the point where said works have been or are ba ing built or constructed, and that the holder of the said ap propriation will not or can not, within a period deemed to reasonable by the commission, develop the said stream at said point to such a capacity as the commission deems to be re quired by the public good, then and in that case the said come mission, in its discretion, may permit the joint occupancy and use, with the holder of the appropriation, to the extent necon sary to develop the stream to its full capacity or to such po tion of said capacity as may appear to the state water com mission to be advisable, by any and all persons, firms, associa tions, or corporations applying therefor, of any dam, tunnel diversion works, ditch, or other works or constructions alread built or constructed or in process of being built or constructe under this act; provided, that said commission shall take into consideration the reasonable cost of the original and new work the good faith of the applicant, the market for water power to be supplied by the original and the new work, and the income or use that may be required to provide fair and reason able returns upon such cost; provided, further, that the appli cant or applicants shall be required to pay to the party parties owning said dam, tunnel, diversion works, ditch, d other works or constructions a pro rata portion of the total cost of the old and the new works, said pro rata portion to by based upon the proportion of the water used by the origing and the subsequent users of said dam, tunnel, diversion works ditch, or other works or constructions, if the water is used to be used for irrigation or domestic purposes; or, if the wate is used or to be used for the generation of electricity, or eles trical or other power, the said pro rata portion shall be base upon the relative amount of electricity or electrical or othe power capable of being developed by the original and the ne works; or, if a portion of the water utilized under a joint occu pancy of any dam, tunnel, diversion works, ditch, or othe works or construction, shall be used for the purpose of irriga tion and another portion of said water shall be used for that generation of electricity or electrical or other power, then and in that case the applicant or applicants for joint occupang shall be required to pay to the party or parties owning sail dam, tunnel, diversion works, ditch, or other works or con structions à pro rata portion of the total cost of the old and new works, said pro rata portion to be based upon the propea tion of the relative amount of water used by each joint occu pant and the income derived by each said joint occupant from said joint occupancy; or, if any of the waters used under sud joint occupancy shall be utilized for purposes other than thos specified above, then and in that case the applicant or appli cants for such joint occupancy shall be required to pay to the party or parties owning said dam, tunnel, diversion works, ditch or other works or constructions, such a pro rata portion of thn total cost of the old and new works as shall appear to the state water commission to be just and equitable. Said appli cant or applicants shall also be required to pay a proper pas rata share, based as above, of the cost of maintaining said dam, tunnel, diversion works, ditch or other works or construe tions, on and after beginning the occupancy and use thereof, Furthermore, the state water commission if it appears to the said commission that the full capacity of the works built constructed, or being built or constructed, under an approa priation of water or the use thereof under this act, will not develop the fall capacity of the stream at that point, and appears to the commission that the public good requires it and the commission specifically so finds after investigation and hearing of the parties interested, may permit any person, firm, association or corporation to repair, improve, add to supplement, or enlarge, at his or its proper cost, charge and expense, any dam, tunnel, diversion works, ditch, or other works or constructions already built or constructed or in process of being built or constructed under the provisions of this act, and to use the same jointly with the owners thereof; provided, that the said repairing, improving, adding to, supplementing, or enlarging, shall not materially interfere with the proper use thereof by the owner of said dam, tunnel, diversion works, ditch, or other works or constructions or shall not materially injure said dam, tunnel, diversion works, ditch or other works or constructions. And the state water commission shall determine the pro rata and other costs provided for in this section.

Sec. 13. All rights grapted or declared by this aet shall be ascertained, adjudicated and determined in the manner and by the tribunals as provided in this act.

Sec. 14. This act shall not be held to bestow, except as expressly provided in this act, upon any person, frm, association or corporation, any right where no such right existed prior to the time this act takes effect.

Sec. 15. The state water commission shall allow, under the provisions of this act, the appropriation of unappropriated water or of the use thereof, or of water or of the use thereof which may hereafter cease to be appropriated, or which may hereafter be declared to be unappropriated, or which, having veen used under claim of riparian proprietorship or appropriation inds its way back into a stream, lake or other body of water and also such water as is declared under section eleven of this ut to be subject to appropriation.

Sec. 16. Every application for a permit to appropriate water hall set forth the name and post-office address of the appliant, the source of water supply, the nature and amount of he proposed use, the location and description of the proposed leadworks, ditch, canal and other works; the proposed place of tiversion and the place where it is intended to use the water; he time within which it is proposed to begin construction, the ime required for completion of the construction, and the time or the complete application of the water to the proposed use. i for agricultural purposes, the application shall, besides the above general requirements, give the legal subdivisions of the and and the acreage to be irrigated, as near as may be; if for ower purposes, it shall give, besides the general requirements trescribed above, the nature of the works by means of which he power is to be developed, the head and amount of water to e utilized, and the use to which the power is to be applied; if or storage in a reservoir, it shall give, in addition to the general equirements prescribed above, the height of dam, the capacity of he reservoir, and the use to be made of the impounded waters; I for municipal water supply, it shall give, besides the general equirements specified above, the present population to be erved, and, as near as may be, the future requirements of the ity; if for mining purposes, it shall give, in addition to the genral requirements prescribed above, the nature and location of he mines to be served and the methods of supplying and tilizing the water. All applications shall be accompanied by 3 many copies of such maps, drawings, and other data as may è prescribed or required by the state water commission, and ich maps, drawings, and other data shall be considered as art of the application. If any permittee or licensee, or the eirs, successors, or assigns of any permittee or licensee, desire

change the point of diversion from the point of diversion pecified in the original application, or after the granting of ay permit or license, such change or changes may be made aly upon the permission of the state water commission; proded, that, before granting such permission, such applicant just establish, to the satisfaction of the state water comission, and such commission must so find, that such change in le place of diversion will not operate to the injury of any other ppropriator or legal user of such waters before permitting such aange in the place of the diversion. Upon receipt of appliation for permission to make such change in the place of iversion, the commission shall, by order, fix a time within hich any person interested may appear in opposition to such pplication, and such applicant shall, if the commission so quire, cause to be published at least once a week for four onsecutive weeks, in a newspaper or newspapers of general ciralation in the county in which is situated both the old and ew points of diversion, a copy of said order. Proof of such ublication shall be by affidavit of the publisher of such nevsaper. Should any objection be made to the change in point of iversion so applied for, the state water commission shall fix a ime for the hearing of said application and of the objections hereto, which time shall be not less than thirty days nor more han sixty days after the period of said publication, and upon uch hearing the said commission shall grant or refuse, as the acts shall warrant, such permission to change place of diversion.

Sec. 17. Any person, firm, association or corporation may apply for and secure from the state water commission, in conformity with this act and in conformity with reasonable rules and regulations adopted from time to time by the state water commission, a permit for any unappropriated water or for water which having been appropriated or used flows back into a stream, lake or other body of water within this state. And any application so made shall give to the applicant a priority of right as of the date of said application to such water or the use thereof until such application shall have been approved or rejected by said commission; provided, that such priority shall continue only so long as the provisions of law and the rules and regulations of the water commission shall be followed by the applicant. Upon the approval of any application by the commission, said approval shall give priority of right as of the date of said application, and shall give the right to take and use the amount of water specified in said approval until the issuance by the state water commission of a license for the use of said amount of water, or until the said commission refuses to issue said license. But the approval of any application shall give the right to take and use water only to the extent and for the purpose allowed in said approval; provided, that any defective application made in a bona fide attempt to conform to the rules and regulations of the state water commission and to the law shall secure to the applicant a priority of right as of the date of said applicatio until he shall have been notified by said commission in what respeet his application is defective. And said applicant shall be allowed sixty days after notice of said defect in which to file an amended and perfected application. If, within said sixty days, said applicant shall not file an amended and perfected application, said priority of right shall cease and determine, unless for good cause shown the state water commission shall allow said applicant to file a further amended and perfected application; provided, also, that any priority of right secured under this section shall not be effective for more than thirty days after service of notice of such approval, personally or by registered mail, on the applicant, unless within said period of thirty days a true copy of said approval upon which such priority is based shall have been filed in the office of the recorder of the county or city and county in which the water is to be diverted, and, within ten days thereafter, a certificate of such filing by the county recorder is also filed with the state water commission.

Sec. 18. Actual construction work upon any project shall begin within such time after the date of the approval of the application as shall be specified in said approval which time shall not be less than sixty days from date of said approval, and the construction of the work thereafter shall be prosecuted with due diligence in accordance with this act, the terms of the approved application, and the rules and regulations of said commission; and said work shall be completed in accordance with law, the rules and regulations of the state water commission, and the terms of the approved application and within a period specified in the permit; but the period of completion specified in the permit may, for good cause shown, be extended by the state water commission. And if such work be not so commenced, prosecuted and completed, the water commission shall, after notice in writing and mailed in a sealed, postage-prepaid and registered letter addressed to the applicant at the address given in his application for a permit to appropriate water, and a hearing before the commission, revoke its approval of the application. But any applicant, the approval of whose application shall have been thus revoked, shall have the right to bring an action in the superior court of the county in which is situated the point of proposed diversion of the water for a review of the order of the commission revoking said approval of the application. And thirty days after the revocation of said permit all rights of the said permittee under said permit shall cease and lapse, unless said permittee shall within said thirty days after said revocation bring an action in the superior court for a review of the order of revocation. The priority of right of any permittee so bringing an action shall continue under said permit until a final judgment is rendered as to the reasonableness of the revocation of said permit. But until and unless the revocation of the permit shall be finally decreed by such court, the permittee shall not take or use any of the water the right to take and use which is granted by said permit.

Sec. 19. Immediately upon completion, in accordance with lav, the rules and regulations of the state water commission, and the terms of the permit, of the project under such application, the holder of a permit for the right to appropriate water

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