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House passes bill aligning severance tax statute with constitutional amendment to create a permanent trust
Summary
House Bill 226 passed 68–0 to conform statute with a recent constitutional amendment requiring phased deposits of severance tax revenue into a trust for future generations; sponsor described phase‑in percentages and estimated near‑term fiscal impacts.
Representative Nielsen, speaking at length, framed HB226 as a statutory step to implement a constitutional amendment that requires phased deposits of severance tax revenues into the Permanent State Trust Fund. He said that beginning July 1, 2016, the constitution will require a percentage of severance receipts to be deposited in the trust and that statute must reflect the phased schedule so the law and constitution align.
Nielsen described the phase‑in structure and noted that, applying current estimates, the constitutional requirement would result in deposits of roughly $31 million to $31.5 million in the relevant fiscal year; he said the bill would place the requirement in statute so it becomes part of the appropriations discussion and to avoid legal conflict between constitution and code. Supporters urged fiscal restraint and saving for future generations; Representative McKay and others praised the approach as prudent.
Representative Nielsen said that, if fully funded through the executive appropriations process, the bill would be a fiscal note bill that affects the overall budget but that the statutory change is necessary to conform to the constitution and to avoid litigation. The House voted and passed HB226 with 68 yes votes and 0 no votes; the bill will be transmitted to the Senate.
