HB 180

 2026  26LSO-0343
                            STATE OF WYOMING
                            HOUSE BILL NO. HB0180
 Amending local surface water runoff system authority.
 Sponsored    by:     Representative(s) Geringer, Banks, Filer,
                     Neiman, Strock and Wharff and Senator(s)
                     Boner, Crum, Laursen, D and Love
                                   A BILL
                                      for
1 AN ACT relating to cities and towns; amending the authority
2 for    cities,     towns    and   boards     of    public    utilities     to
3 establish    a     water    system     for   diverting      surface   water
4 runoff;    amending    the    authority      for   cities   and    towns   to
5 prescribe and regulate fees and charges for the diversion
6 or     management     of     surface       water    runoff;       specifying
7 requirements for existing surface water diversion or runoff
8 systems;     making        conforming      amendments;      providing      an
9 appropriation; and providing for an effective date.
10
11 Be It Enacted by the Legislature of the State of Wyoming:
12
13Section 1.     W.S. 15-7-115 is created to read:
14
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115-7-115.      Surface water runoff and diversion systems
2 existing before April 1, 2026; requirements.
3
4(a)    Not later than July 1, 2027, any surface water
5 diversion      system     and   any       surface   water     runoff   system
6 established,       purchased,    constructed,  extended,     maintained
7 or regulated by a city or town under W.S. 15-7-101(a)(iii)
8 before April 1, 2026 shall:
9
10(i)     Be   reclassified        as    or     placed   within     a
11 surface      water   drainage    utility       in   accordance       with    the
12 Surface      Water   Drainage    Utility       Act,      provided    that    the
13 reclassification or placement shall only be effective upon
14 an affirmative vote of the electors of the surface water
15 drainage utility area, as applicable and pursuant to W.S.
16 16-10-105(e); or
17
18(ii)     Operate using only funds that are held or
19 maintained by the city or town that established the surface
20 water diversion system or surface water runoff system and
21 that are not collected as fees or charges from the users of
22 the system. For purposes of this paragraph:
23
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1(A)    Any charges or fees charged or assessed
2 to   the   users     of    the     surface       water    diversion    system     or
3 surface water runoff system shall be refunded in accordance
4 with subsection (b) of this section;
5
6(B)    A    city       or    town   operating     a     surface
7 water diversion or runoff system may impose or assess fees
8 or charges to the users of the system after submitting the
9 question of whether fees or charges may be assessed and
10 after approval by a majority of the electors voting on the
11 question.    After  approval  by    the    electors     under     this
12 subparagraph, the question of the imposition of fees and
13 charges    for   a    surface       water        diversion     or   runoff    system
14 shall be submitted to the voters at each municipal election
15 four   (4)   years  after    the      electors      first     approve    the
16 imposition or assessment of system fees;
17
18(C)    Nothing  in    this    paragraph     shall     be
19 construed     to      limit        or   prohibit  the    assessment       and
20 collection and fees for other services in accordance with
21 law, including trash, water and sewer services.
22
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1(b)     The imposition of any charges and fees prescribed
2 or collected for the diversion or management of surface
3 water runoff under W.S. 15-7-101(a)(iii)(B) shall terminate
4 on April 1, 2026. If the surface water diversion or runoff
5 system       established     under       W.S.       15-7-101(a)(iii)  is    not
6 reclassified      or     placed    within       a     surface      water     drainage
7 utility under the Surface Water Drainage Utility Act or
8 does not operate in accordance with paragraph (a)(ii) of
9 this   section     by     April    1,       2026,    the    city     or    town     that
10 collected charges and fees under W.S. 15-7-101(a)(iii)(B)
11 shall refund all charges and fees collected before April 1,
12 2026 to each user of the system who paid the charges and
13 fees     not    later     than     September  1,     2027,        subject    to
14 subsection (c) of this section.
15
16(c)     Charges      and  fees        collected  under  W.S.
17 15-7-101(a)(iii)(B)  that     were       revenues      pledged        for    the
18 payment of any revenue bonds issued under W.S. 15-7-102 may
19 be retained to repay bonds issued before April 1, 2026.
20
21Section 2.        W.S. 15-6-102 by creating a new subsection
22 (c),     15-7-101(a)(iii)(intro)  and        (B),    15-7-401  and
23 16-10-105(a) are amended to read:
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1
215-6-102.      General  grant  of        authority;
3 nonapplicability  of      other      provisions;  restriction;
4 nonexclusivity.
5
6(c)    Each city and town that completed an improvement
7 under this chapter before April 1, 2026 for a surface water
8 runoff system or surface water diversion system shall:
9
10(i)     Comply       with     the     requirements       of     W.S.
11 15-7-115;
12
13(ii)     Not charge fees or other charges to system
14 users after April 1, 2026, subject to W.S. 15-7-115(a)(ii)
15 and (c);
16
17(iii)     Not later than July 1, 2027, either:
18
19(A)    Reclassify or place the surface water
20 diversion      system      or    surface    water      runoff     system   in   a
21 surface      water    drainage      utility       in   accordance     with    the
22 Surface      Water    Drainage      Utility       Act,   provided     that    the
23 reclassification or placement shall only be effective upon
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1 an affirmative vote of the electors of the reclassified
2 surface      water     drainage    utility  area     pursuant       to    W.S.
3 16-10-105(e); or
4
5(B)    Operate the system in accordance with
6 W.S. 15-7-115(a)(ii).
7
8(iv)     Dissolve on July 1, 2027 if the system is
9 not reclassified or placed within a surface water drainage
10 utility      in     accordance    with      the     Surface    Water       Drainage
11 Utility      Act,    this   section        and    W.S.    15-7-115    or    is   not
12 operated in accordance with W.S. 15-7-115(a)(ii) and refund
13 all    collected      charges    and       fees   in     accordance    with      W.S.
14 15-7-115.
15
1615-7-101.       Purposes.
17
18(a)    In addition to all other powers provided by law,
19 any city or town may make public improvements as follows
20 for which bonds may be issued to the contractor or be sold
21 as provided in this chapter to:
22
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1(iii)     Take    any     action     necessary      to    establish,
2 purchase, extend, maintain and regulate a water system for
3 supplying water to and, subject to W.S. 15-7-115, diverting
4 surface      water    runoff  from   its     inhabitants        and    their
5 property and for any other public purposes, including:
6
7(B)    Prescribing and regulating of rates for
8 the    use   of    water    and,       subject    to   W.S.     15-7-115,       the
9 diversion or management of surface water runoff; and
10
1115-7-401.      Establishment; powers and duties generally.
12
13(a)   Any     city   or       town   which    owns     and     operates    a
14 municipal     waterworks,        a    sanitary    sewer      system,    a    sewage
15 disposal plant or an electric utility distribution system
16 may establish a board of commissioners to be known as the
17 board of public utilities. The board of public utilities
18 shall manage, operate, maintain and control such plants and
19 make all rules and regulations necessary for their safe,
20 economical     and     efficient        operation      and    management.       The
21 board may also improve, extend or enlarge the plants as
22 provided in this article.
23
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1(b)    Each    board        of       public      utilities       that    has
2 established, constructed, operated or maintained a surface
3 water diversion system or a surface water runoff system
4 under this article or W.S. 15-7-101(a)(iii) before April 1,
5 2026 shall:
6
7(i)     Comply       with       the     requirements        of     W.S.
8 15-7-115;
9
10(ii)     Not charge fees or other charges to system
11 users after April 1, 2026, subject to W.S. 15-7-115(a)(ii)
12 and (c);
13
14(iii)     Not later than July 1, 2027, either:
15
16(A)    Reclassify or place the surface water
17 diversion      system      or    surface      water     runoff       system    in   a
18 surface      water    drainage      utility        in   accordance       with    the
19 Surface      Water    Drainage      Utility        Act,     provided     that    the
20 reclassification or placement shall only be effective upon
21 an affirmative vote of the electors of the reclassified
22 surface      water    drainage       utility  area    pursuant    to     W.S.
23 16-10-105(e); or
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1
2(B)   Operate the system in accordance with
3 W.S. 15-7-115(a)(ii).
4
5(iv)     Dissolve on July 1, 2027 if the system is
6 not reclassified or placed within a surface water drainage
7 utility      in     accordance    with     the    Surface   Water      Drainage
8 Utility      Act,    this   section       and   W.S.   15-7-115   or    is   not
9 operated in accordance with W.S. 15-7-115(a)(ii) and refund
10 all charges and fees in accordance with W.S. 15-7-115.
11
1216-10-105.       Ordinance or resolution for construction;
13 required and authorized provisions.
14
15(a)    If the governing body of a city, town or county
16 desires      to     establish    a   surface      water   drainage     utility
17 pursuant to this act, a county shall do so by resolution
18 and a city or town shall do so by ordinance. The resolution
19 or ordinance shall provide for the administration of the
20 surface water drainage utility either by the governing body
21 of   the city, town,  county,       joint powers     board    or other
22 board or entity selected by the applicable governing body,
23 including but not limited to a board of public utilities
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1 formed     pursuant       to    W.S.        15-7-401   15-7-401(a).  The
2 ordinance      or      resolution  shall   contain      the    specific
3 description of the surface water drainage area to be served
4 by the surface water drainage utility.
5
6Section      3.    There       is     appropriated     five     thousand
7 dollars ($5,000.00) from the general fund to the office of
8 state lands and investments for distribution to any city or
9 town that established a surface water diversion or runoff
10 system under W.S. 15-7-101(a)(iii) or 15-7-401 before the
11 effective date of this act that is seeking to transition
12 the system to a surface water drainage utility. The office
13 of     state   lands      and    investments       shall     distribute    this
14 appropriation to cities and towns on a pro rata basis. This
15 appropriation shall be for the period beginning with the
16 effective date of this act and ending June 30, 2028.  This
17 appropriation shall not be transferred or expended for any
18 other     purpose        and    any    unexpended,      unobligated       funds
19 remaining from this appropriation shall revert as provided
20 by law on June 30, 2028.
21
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2026  STATE OF WYOMING  26LSO-0343
1Section    4.   This   act    is   effective     immediately   upon
2 completion of all acts necessary for a bill to become law
3 as     provided   by   Article      4,    Section   8   of   the   Wyoming
4 Constitution.
5
6(END)
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