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26LSO-0343
2026
STATE OF WYOMING
26LSO-0343
Numbered
2.0
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
AN ACT relating to cities and towns; amending the authority for cities, towns and boards of public utilities to establish a water system for diverting surface water runoff; amending the authority for cities and towns to prescribe and regulate fees and charges for the diversion or management of surface water runoff; specifying requirements for existing surface water diversion or runoff systems; making conforming amendments; providing an appropriation; and providing for an effective date.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 15
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115 is created to read:
15
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115.
Surface water runoff and diversion systems existing before April 1, 2026; requirements.
(a)
Not later than July 1, 2027, any surface water diversion system and any surface water runoff system established, purchased, constructed, extended, maintained or regulated by a city or town under W.S. 15
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101(a)(iii) before April 1, 2026 shall:
(i)
Be reclassified as or placed within a surface water drainage utility in accordance with the Surface Water Drainage Utility Act, provided that the reclassification or placement shall only be effective upon an affirmative vote of the electors of the surface water drainage utility area, as applicable and pursuant to W.S. 16
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10
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105(e); or
(ii)
Operate using only funds that are held or maintained by the city or town that established the surface water diversion system or surface water runoff system and that are not collected as fees or charges from the users of the system. For purposes of this paragraph:
(A)
Any charges or fees charged or assessed to the users of the surface water diversion system or surface water runoff system shall be refunded in accordance with subsection (b) of this section;
(B)
A city or town operating a surface water diversion or runoff system may impose or assess fees or charges to the users of the system after submitting the question of whether fees or charges may be assessed and after approval by a majority of the electors voting on the question. After approval by the electors under this subparagraph, the question of the imposition of fees and charges for a surface water diversion or runoff system shall be submitted to the voters at each municipal election four (4) years after the electors first approve the imposition or assessment of system fees;
(C)
Nothing in this paragraph shall be construed to limit or prohibit the assessment and collection and fees for other services in accordance with law, including trash, water and sewer services.
(b)
The imposition of any charges and fees prescribed or collected for the diversion or management of surface water runoff under W.S. 15
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101(a)(iii)(B) shall terminate on April 1, 2026. If the surface water diversion or runoff system established under W.S. 15
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101(a)(iii) is not reclassified or placed within a surface water drainage utility under the Surface Water Drainage Utility Act or does not operate in accordance with paragraph (a)(ii) of this section by April 1, 2026, the city or town that collected charges and fees under W.S. 15
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101(a)(iii)(B) shall refund all charges and fees collected before April 1, 2026 to each user of the system who paid the charges and fees not later than September 1, 2027, subject to subsection (c) of this section.
(c)
Charges and fees collected under W.S. 15
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101(a)(iii)(B) that were revenues pledged for the payment of any revenue bonds issued under W.S. 15
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102 may be retained to repay bonds issued before April 1, 2026.
Section 2.
W.S. 15
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102 by creating a new subsection (c), 15
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101(a)(iii)(intro) and (B), 15
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401 and 16
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105(a) are amended to read:
15
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102.
General grant of authority; nonapplicability of other provisions; restriction; nonexclusivity.
(c)
Each city and town that completed an improvement under this chapter before April 1, 2026 for a surface water runoff system or surface water diversion system shall:
(i)
Comply with the requirements of W.S. 15
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115;
(ii)
Not charge fees or other charges to system users after April 1, 2026, subject to W.S. 15
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115(a)(ii) and (c);
(iii)
Not later than July 1, 2027, either:
(A)
Reclassify or place the surface water diversion system or surface water runoff system in a surface water drainage utility in accordance with the Surface Water Drainage Utility Act, provided that the reclassification or placement shall only be effective upon an affirmative vote of the electors of the reclassified surface water drainage utility area pursuant to W.S. 16
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105(e); or
(B)
Operate the system in accordance with W.S. 15
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115(a)(ii).
(iv)
Dissolve on July 1, 2027 if the system is not reclassified or placed within a surface water drainage utility in accordance with the Surface Water Drainage Utility Act, this section and W.S. 15
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115 or is not operated in accordance with W.S. 15
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115(a)(ii) and refund all collected charges and fees in accordance with W.S. 15
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115.
15
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101.
Purposes.
(a)
In addition to all other powers provided by law, any city or town may make public improvements as follows for which bonds may be issued to the contractor or be sold as provided in this chapter to:
(iii)
Take any action necessary to establish, purchase, extend, maintain and regulate a water system for supplying water to and
, subject to W.S. 15
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115,
diverting surface water runoff from its inhabitants and their property and for any other public purposes, including:
(B)
Prescribing and regulating of rates for the use of water and
, subject to W.S. 15
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115, the
diversion or management of surface water runoff; and
15
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401.
Establishment; powers and duties generally.
(a)
Any city or town which owns and operates a municipal waterworks, a sanitary sewer system, a sewage disposal plant or an electric utility distribution system may establish a board of commissioners to be known as the board of public utilities. The board of public utilities shall manage, operate, maintain and control such plants and make all rules and regulations necessary for their safe, economical and efficient operation and management. The board may also improve, extend or enlarge the plants as provided in this article.
(b)
Each board of public utilities that has established, constructed, operated or maintained a surface water diversion system or a surface water runoff system under this article or W.S. 15
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101(a)(iii) before April 1, 2026 shall:
(i)
Comply with the requirements of W.S. 15
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115;
(ii)
Not charge fees or other charges to system users after April 1, 2026, subject to W.S. 15
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115(a)(ii) and (c);
(iii)
Not later than July 1, 2027, either:
(A)
Reclassify or place the surface water diversion system or surface water runoff system in a surface water drainage utility in accordance with the Surface Water Drainage Utility Act, provided that the reclassification or placement shall only be effective upon an affirmative vote of the electors of the reclassified surface water drainage utility area pursuant to W.S. 16
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105(e); or
(B)
Operate the system in accordance with W.S. 15
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115(a)(ii).
(iv)
Dissolve on July 1, 2027 if the system is not reclassified or placed within a surface water drainage utility in accordance with the Surface Water Drainage Utility Act, this section and W.S. 15
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115 or is not operated in accordance with W.S. 15
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115(a)(ii) and refund all charges and fees in accordance with W.S. 15
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115.
16
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105.
Ordinance or resolution for construction; required and authorized provisions.
(a)
If the governing body of a city, town or county desires to establish a surface water drainage utility pursuant to this act, a county shall do so by resolution and a city or town shall do so by ordinance. The resolution or ordinance shall provide for the administration of the surface water drainage utility either by the governing body of the city, town, county, joint powers board or other board or entity selected by the applicable governing body, including but not limited to a board of public utilities formed pursuant to W.S.
15
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401
15
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401(a)
.
The ordinance or resolution shall contain the specific description of the surface water drainage area to be served by the surface water drainage utility.
Section 3.
There is appropriated five thousand dollars ($5,000.00) from the general fund to the office of state lands and investments for distribution to any city or town that established a surface water diversion or runoff system under W.S. 15
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101(a)(iii) or 15
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401 before the effective date of this act that is seeking to transition the system to a surface water drainage utility. The office of state lands and investments shall distribute this appropriation to cities and towns on a pro rata basis. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2028.
This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2028.
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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HB0180