Committee advances bill allowing irrigation districts to contract for recharge on property owned by board members under limits

Senate Bill 1040 would amend Idaho law to allow irrigation districts to enter into contracts for groundwater recharge, monitoring wells and related recharge activities on land owned by a district director or officer when the director receives no profit beyond reimbursement for costs.

Paul Arrington of the Idaho Water Users Association told the committee eastern Idaho irrigation districts identified a potential prohibition in Idaho Code §42‑3‑20 (as cited in testimony) that could prevent districts from contracting to place recharge infrastructure on property owned by board members. Arrington said recharge projects frequently rely on coordination between irrigation districts and adjacent landowners; a strict reading of the code could block those arrangements. He said the bill would permit such contracts so long as profits are not shared with the board member.

Senators asked for examples of typical arrangements. Arrington described a district contracting to place recharge pits or monitoring wells on property that may be owned by a director and said the district could reimburse costs but not provide profit. Senator Guthrie asked whether the arrangement removes incentives for landowners; Arrington replied such projects are voluntary and that private, for‑profit recharge efforts still exist outside this category.

Senator Harris moved to send SB 1040 to the Senate floor with a due‑pass recommendation; Senator Cook seconded the motion. The committee approved the motion by voice vote.

If enacted, the bill would clarify that irrigation districts may enter specific recharge‑related contracts with directors or officers where reimbursement is allowed but profit sharing is prohibited, preserving collaborative recharge efforts while limiting potential self‑dealing.