House approves transparency rules for municipal enterprise fund transfers
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Summary
First substitute HB 164 requires cities to hold independent enterprise‑fund hearings, directly notify ratepayers, provide follow‑up information post‑budget, and file transfer details with the State Auditor; supporters call it transparency, opponents call it micromanagement. The House passed the bill 61–11.
Lawmakers on the House floor approved first substitute House Bill 164, a bill intended to make municipal enterprise‑fund transfers (for services such as water, sewer and power) more transparent to ratepayers.
The substitute requires municipalities to hold an independent enterprise‑fund hearing that articulates the basis for any transfer to the general fund; cities must notify ratepayers by mail, website and the Utah Public Notice website, provide specified information about the transfer, publish follow‑up information within 60 days of budget adoption, and submit enterprise‑fund transfer information to the Utah State Auditor within 30 days.
The sponsor said the measure is not intended to limit transfers but to improve transparency and public awareness. Supporters including members with cities in Utah County said the substitute is a compromise that leaves local flexibility intact while enhancing disclosure. Opponents warned of duplicative hearings and micromanagement; Representative Cutler said current budget hearings should suffice and worried the new requirement would simply shift the timing of an otherwise combined hearing.
The House passed the first substitute HB 164 by a roll call vote of 61 yes and 11 no; the bill will be referred to the Senate for further consideration.