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26LSO-0385
2026
STATE OF WYOMING
26LSO-0385
Introduced
2.0
HOUSE BILL NO. HB0156
Local water system funding.
Sponsored by: Representative(s) Harshman, Banks, Campbell, E, Nicholas and Riggins and Senator(s) Anderson and Landen
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; 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 and includes 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)
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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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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301 through 16
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308;
(iii)
The project is 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)
The 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, including whether the rates charged are in accordance with W.S. 15
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407, 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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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 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 board shall borrow funds under this subsection from the strategic investments and projects account, provided that if there are not sufficient unexpended, unobligated funds within the strategic investments and projects account in the applicable fiscal year, the board may borrow funds under this subsection from the legislative stabilization reserve account subject to the limits specified in this subsection. In no event shall the board borrow more than fifty million dollars ($50,000,000.00) for the program in any one (1) fiscal year. The amounts borrowed under this subsection shall be repaid to the account from which the funds were borrowed. Interest on any unpaid loan balance shall be charged and shall be equal to the total rate of return earned on the fund from which the funds were borrowed during the previous fiscal year, provided that the interest rate shall be not less than zero percent (0%) and not more than one and five
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tenths percent (1.5%).
Section 2
.
The state loan and investment board shall promulgate all rules necessary to implement this act.
Section 3.
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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HB0156