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25LSO-0640
2025
STATE OF WYOMING
25LSO-0640
Numbered
2.0
HOUSE BILL NO. HB0263
Local water system funding.
Sponsored by: Representative(s) Harshman, Campbell, E, Davis and Riggins and Senator(s) Barlow
A BILL
for
AN ACT relating to the administration of the government; establishing a local water system funding program; specifying requirements and project eligibility for local water system funding; specifying duties; authorizing the borrowing of funds; providing a funding guarantee by modifying the distribution of revenues; requiring reports; requiring rulemaking; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 16
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1
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401 and 16
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1
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402 are created to read:
ARTICLE 4
LOCAL WATER SYSTEM FUNDING
16
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1
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401.
Definitions.
(a)
As used in this article:
(i)
"Board" means the state loan and investment board to include the office of state lands and investments;
(ii)
"Program" means the local water system funding program created by this article.
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1
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402.
Local water system funding program; creation; requirements; duties.
(a)
The local water system funding program is created to provide financial assistance to cities, towns and special districts for improvements to community public water systems and community wastewater systems in accordance with this article.
(b)
The state loan and investment board, with assistance from the office of state lands and investments, shall administer the program. The board shall promulgate all rules necessary to implement the program.
(c)
The board shall:
(i)
Establish an application process by which cities, towns and special districts may apply for financial assistance under the program;
(ii)
Receive and review applications for financial assistance under the program, in accordance with subsection (f) of this section;
(iii)
Administer the financial assistance available under the program, including processing and receiving repayments;
(iv)
Conduct an annual audit of the program;
(v)
Report to the joint appropriations committee and the joint minerals, business and economic development interim committee not later than November 1 of each year on the financial assistance provided under the program for the immediately preceding fiscal year.
(d)
Subject to subsection (e) of this section, funds under the program shall be available only to cities, towns and special districts for financial assistance for eligible projects for the following purposes:
(i)
Upfront predevelopment and preapplication costs;
(ii)
Planning and technical assistance;
(iii)
Local matching funds;
(iv)
Repayment of federal or state loans received from other programs or funds;
(v)
Costs related to joining a regional water system or regional wastewater system.
(e)
Projects shall be eligible for financial assistance from the program only if the project is for a water system or wastewater system for which consumer rates are charged in accordance with W.S. 15
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7
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407 and if the project meets at least one (1) of the following:
(i)
The project is an eligible project for funding under the state water pollution control revolving loan account, subject to the requirements of W.S. 16
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1
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201 through 16
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207;
(ii)
The project is an eligible project for funding under the state drinking water revolving loan account, subject to the requirements of W.S. 16
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1
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301 through 16
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308;
(iii)
The project under the Wyoming water development office and is approved by the legislature;
(iv)
The project is an eligible local government capital construction project under W.S. 9
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4
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604(a).
(f)
Upon receiving an application for financial assistance under the program, the board shall review the application to determine whether the application qualifies for the program in accordance with this article. Financial assistance under the program shall be approved by majority vote of the state loan and investment board. In reviewing applications for the program, the board shall consider, at a minimum, the following factors:
(i)
Population of the city, town or special district that has applied for financial assistance;
(ii)
The ability of the city, town or special district to pay for or repay funds for the project for which financial assistance is sought under the program;
(iii)
The level of existing consumer rates charged by the city, town or special district and the amount of funding reserves that the city, town or special district has, in comparison to other cities, towns and special districts;
(iv)
The ability of the city, town or special district to join a regional water system or regional wastewater system;
(v)
The results and record of the city, town or county based on the annual audit required under W.S. 9
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1
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507.
(g)
A city, town or special district that receives financial assistance under the program shall establish or, if already established, maintain funds for depreciation in accordance with W.S. 15
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407(b).
(h)
Funding for the program shall be from funds borrowed under subsection (j) of this section and from any other funds received by the board for the program.
(j)
The board is authorized to borrow from the legislative stabilization reserve account an amount not to exceed fifty million dollars ($50,000,000.00) in any one (1) fiscal year to provide financial assistance under the program. The amounts borrowed under this section shall be repaid from funds available from the annual distributions to the legislative stabilization reserve account under W.S. 9
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4
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719(q). Interest on the unpaid balance shall be charged and shall be equal to the rate of return earned on the legislative stabilization reserve account in the previous fiscal year.
Section 2.
W.S. 9
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4
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719(b)(intro) and (i) is amended to read:
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719.
Investment earnings; spending policy; permanent funds.
(b)
There is created the permanent Wyoming mineral trust fund reserve account. All funds within the account shall be invested by the state treasurer as authorized under W.S. 9
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715(a), (d), (e) and (r) and all investment earnings from the account shall be credited to the account.
Except for funds specified by the legislature that guarantee the obligations of permanent Wyoming mineral trust fund investment earnings and funds to be transferred into the permanent Wyoming mineral trust fund, funds deposited into the reserve account created by this subsection are intended to be inviolate and constitute a permanent or perpetual trust fund. Beginning July 1, 2021 for fiscal year 2022 and each fiscal year thereafter, to the extent funds are available, the state treasurer shall transfer unobligated funds from this account to the general fund on a quarterly, pro
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rata basis as necessary to ensure that an amount equal to two and one
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half percent (2.5%) of the previous five (5) year average market value of the permanent Wyoming mineral trust fund, calculated on the first day of the fiscal year, is available for expenditure during each fiscal year. As soon as possible after the end of each of the fiscal years beginning on and after July 1, 2017, after making any transfer required pursuant to paragraphs (i) and (ii) of this subsection, revenues in this account in excess of two hundred forty
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five percent (245%) of the spending policy amount in subsection (d) of this section shall be credited to the permanent Wyoming mineral trust fund. For fiscal year
2020
2025
and for each fiscal year thereafter:
(i)
As soon as practicable after the end of the fiscal year, after making any other transfers provided by law from the permanent Wyoming mineral trust fund reserve account, but prior to calculating the balance of the account under this subsection, the state treasurer shall transfer from the account
:
(A)
A
n amount equal to the difference between the maximum amount which may be credited to the strategic investments and projects account pursuant to subsection (q) of this section and the amount actually credited to that account in the applicable fiscal year;
(B)
An amount equal to the difference between the maximum amount that may be credited to the legislative stabilization reserve account under subsection (q) of this section and the amount actually credited to that account in the applicable fiscal year.
Section 3
.
The state loan and investment board shall promulgate all rules necessary to implement this act.
Section 4
.
This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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HB0263