Committee backs amendment to H.481 to fund municipal stormwater utility design and builds in periodic review of property‑transfer clean‑water surcharge

The Senate Appropriations Committee discussed H.481 on May 6 and supported committee amendments that would expand allowable uses of the municipal implementation program to include funding for design and engineering services necessary to establish municipal stormwater utilities. Committee members also discussed an amendments package (the Harrison amendment) that adds one municipal representative to a study committee and requires a periodic review of the clean‑water surcharge on the property transfer tax.

A committee member explained that municipalities must first design their stormwater utility before asking voters to adopt an ordinance; the Harrison amendment would allow municipal implementation funds to be used for that design and engineering work. The committee member said the Harrison amendment was “unanimously approved” (as reported in committee discussion).

Appropriations staff and senators noted the change affects the allowable use of existing appropriations rather than changing the total dollars available. The amendment also increases the study committee’s membership and therefore its cost; staff said a revised fiscal note would be required to capture that change.

The appropriations amendment would also require that beginning in January 2028 and every four years thereafter the clean water investment report include an assessment of the sufficiency of the clean‑water surcharge on the property transfer tax. The review must consider whether the surcharge should continue, be adjusted, or be repealed and propose a date for repeal if applicable. Committee members asked for clarification about the surcharge rate; a staff member cited the figure 0.22 (as discussed in the committee transcript), and noted that earlier statutory language had not been fully conformed when the rate was updated.

Committee discussion included whether to present the language to the Natural Resources Committee and how to handle committee reports and conference committee placement. A motion to accept committee amendments to H.481 was made in the record; the transcript shows senators supporting the motion and answering the clerk’s substitute question in the affirmative, but an exact roll‑call tally is not recorded in the transcript excerpt.

Next steps: staff said the amendment language could be presented to Natural Resources and that the fiscal office would update the fiscal note to reflect the membership and allowable use changes. The bill will proceed through committee scheduling for further floor consideration.