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Committee advances bill letting local commerce authorities issue tax‑exempt bonds for water, sewer projects
Summary
The Senate Local Government and Taxation Committee advanced House Bill 171 after a brief presentation by Representative Clay Handy of District 27.
The Senate Local Government and Taxation Committee advanced House Bill 171 after a brief presentation by Representative Clay Handy of District 27. The bill would allow local commerce or intermodal authorities to market tax‑exempt bonds to finance certain utility services, including water and sewer facilities, but expressly would not permit bonds for the transmission, distribution or production of electricity or for broadband services.
Representative Clay Handy said the bill “is pretty simple” and described the practical need behind the proposal, citing a failing sewer plant in Burley. “We need a hundred 20,000,000; we were able to get 20,000,000 from federal government,” Handy said, describing the local gap the authority could help fill.
Under existing law, commerce or intermodal authorities may issue tax‑exempt bonds for land‑port functions such as terminals, warehouses and related on‑land transfer facilities. HB 171 would add certain utility facilities to the types of projects those authorities can finance tax‑exemptly. Handy told the committee the change would give local governments another financing option and that the entity buying the bonds would receive the tax‑exempt interest benefit.
Committee members asked whether the bill would allow locally owned electric utilities or broadband providers to use the authority. The chair clarified that the draft excludes electricity and broadband: the amendment adds utility services “including water and sewer facilities but not including to transmit, distribute or produce electricity or broadband services,” Handy said.
Senator Taylor moved to send HB 171 to the Senate floor with a due‑pass recommendation; Senator Berndt seconded the motion. The committee approved the motion; the committee recorded that Senator Anthony will carry the bill on the Senate floor.
The vote followed no public testimony; the committee chair noted no one signed up to testify for or against HB 171. The measure now advances to the full Senate for further consideration.
