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House lifts cap on sales-tax diversion to seed water development fund; bill passed
Summary
The House passed a measure to raise a cap and divert additional sales-tax receipts into a water development fund to seed Bear River and Lake Powell projects; sponsors said 94% will go to the fund and 6% to staffing/engineering support. The bill passed on the floor.
The Utah House passed first substitute House Bill 47 (Sales Tax Diversion for Water Projects) after floor explanation and questions on scope and use. The sponsor told members the change would lift a cap so an additional $7–8 million could flow into a dedicated water development fund; roughly 94 percent of the additional amounts would flow to the fund and 6 percent would be used for staffing and engineering oversight related to the Bear River and Lake Powell projects.
Sponsor Representative Eurer described the fund as a revolving loan account rather than unconditional grants: money loaned to project sponsors would be repaid with interest and the fund could support engineering work, environmental studies and right-of-way efforts. He said one purpose is to provide seed money and pay for two engineers — one to work on the Bear River project and one on Lake Powell efforts — and that leftover funds would flow into the broader Water Development Fund available for loans and grants statewide.
Members asked whether the diversion would benefit only northern Utah; Representative Cox and others said the fund could also support short-run needs in Utah County and Salt Lake County (for example, canal capping) and would be available statewide. Concerns focused on prioritization, accountability and how funds would be allocated once in the special account.
The House passed the first substitute to House Bill 47 by recorded vote, 65 yes to 5 no; the bill will be referred to the Senate for further action.
