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House approves fourth substitute to set aside $20 million in severance-tax holding account and backs constitutional resolution
Summary
Lawmakers passed a fourth substitute to Senate Bill 18 creating a restricted severance tax holding account with a $20 million initial appropriation and then approved a companion resolution (SJR2) to allow permanent trust treatment for ongoing severance revenues; both measures passed the House unanimously and will be sent to the Senate.
The Utah House on Monday moved to create a restricted severance tax holding account and to advance a constitutional resolution to protect the account—9s principle.
Representative Harper, sponsor of the severance-tax measure, told members the fourth substitute to Senate Bill 18 establishes an "investment infrastructure and severance tax holding account" and that "there's an appropriation of $20,000,000 from [the] severance tax account into a new restricted account," intended as a rainy-day mechanism to protect programs when revenues fall.
Harper said the substitute directs the state treasurer on investment and account management and is designed to hold ongoing severance-tax revenues in a restricted account so the interest can be used while the principal remains protected unless a supermajority authorizes withdrawal.
On a related measure, Harper moved to uncircle Senate Joint Resolution 2, a proposed constitutional amendment to permit money and assets from severance tax revenue to be placed in a permanent state trust fund subaccount; he emphasized that principle could not be spent without a supermajority vote and compared the plan to the state—9s tobacco settlement trust fund.
Both measures were advanced under suspension of the rules. The House voted to pass the fourth substitute to SB18 (announced as 69 yes, 0 no in the House record) and then passed SJR2 (also recorded as 69 yes, 0 no). Both measures will be referred to the Senate for further consideration.
