Town Abandonment Determination Bill

Summary#

SB 26-157, titled Determination of Town Abandonment, amends Colorado law on when and how a town can be declared abandoned. Its stated goal is to address abandonment of a town that has water infrastructure critical to residents. The supplied status says it was signed into law; the bill text does not state a general effective date.

  • A town may be declared abandoned under a new route if it has no board of trustees or town clerk, cannot hold an election, and owns or operates water infrastructure critical to treating or delivering water to residents.
  • The county attorney, a landowner in the town, or a registered voter there may apply to the Secretary of State. The Secretary must give notice, hear evidence, and decide whether the town is abandoned.
  • If the town is abandoned under the new route, the county is not liable for the town’s water-system debts and other related obligations. The county must transfer the water-system property to an entity whose primary purpose is water treatment or delivery, unless the county decides otherwise.
  • If the water system is failing or likely to fail, the Department of Public Health and Environment may transfer up to $100,000 from a grant fund to the Department of Public Safety to contract for routine operation and maintenance.
  • The temporary water-system support is limited to the application period and, if needed, up to six months after the decision. It cannot pay for improvements, and it does not transfer ownership to the state.

What it means for you#

  • Residents of a town with critical water infrastructure: The new abandonment route may apply if the town also lacks a board and clerk and cannot hold an election. The bill allows temporary help with routine water-system operations in some cases, but does not require that help to be provided.
  • Landowners and registered voters in a town: You may apply to have the town declared abandoned. The Secretary of State must hear the application and consider evidence; the bill does not say that filing an application itself means the town is abandoned.
  • Counties: A county is not liable for the town’s water-system debts and related obligations under the new route. If the town is abandoned that way, the county must transfer the water-system property to a qualifying entity unless it decides otherwise.
  • Water-system entities: An entity whose primary purpose is water treatment or delivery may receive the system property. The bill does not set out how an entity is chosen.
  • Other towns and the public: The bill does not directly change water bills, create a new water service, or require water-system upgrades.

Money#

The bill appropriates $100,000 for the Department of Public Safety for fiscal year 2026–27; no total cost estimate is provided.

  • The appropriation comes from the small communities water and wastewater grant fund. The Department of Public Health and Environment may transfer up to $100,000 from that fund to Public Safety for eligible contracts.
  • The money may pay only for routine operation and maintenance of existing water treatment infrastructure, such as chlorine disinfection and related sampling.
  • The bill does not state how much will be spent, or whether the full amount will be needed. It creates no fee or fine.

What is unclear#

  • The bill does not define “critical” water infrastructure, or explain what it means for a town to be unable to hold an election.
  • The Department of Public Health and Environment decides whether a system is failing or likely to fail, but the bill does not set out criteria for that decision.
  • The bill does not explain how a receiving entity is selected, what happens if no suitable entity is available, or how the county’s discretion to decide otherwise works.
  • It does not set out a detailed process for challenging the Secretary of State’s decision or how affected residents would be involved.
  • The temporary funding authority ends July 1, 2028. The supplied text does not state the law’s general effective date.

Case for#

  • A town without basic governing officials may be unable to manage a water system on its own. The new route gives the state a way to decide whether such a town is abandoned.
  • Temporary funding for routine water treatment operations could help maintain service while the abandonment application is pending and for a limited period afterward.
  • Transferring the system property to an entity focused on water treatment or delivery could place it with an organization whose main purpose is operating water infrastructure.

Case against#

  • The bill does not specify how a receiving entity is chosen or what safeguards apply to the transfer of water-system property.
  • Temporary aid is limited to routine operations and maintenance, not improvements. A system needing major work would not be covered by this authority.
  • The county may decide against transferring the system property, but the bill does not explain what happens to the system in that case.
  • The bill shifts water-system debts and related obligations away from the county, while providing no broader process for addressing those obligations.

Votes

Senate Local Government & Housing: Adopt amendment L.001

For (100%)

Senate Local Government & Housing: Refer Senate Bill 26-157, as amended, to the Committee on Appropriations.

For (100%)

Senate Appropriations: J.001

For (100%)

Senate Appropriations: Refer Senate Bill 26-157, as amended, to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

For (100%)

Senate: Third Reading Bill

For (97%)
Paired (3%)