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Senate approves set royalty and periodic review for brine shrimp harvesters
Summary
The Utah Senate passed First Substitute Senate Bill 76, establishing a $550,000 annual royalty on brine shrimp harvest apportioned by harvesters and requiring periodic review by the revenue and tax interim committee; the measure passed on a 24‑0 vote and is sent to the House.
The Utah Senate on Feb. 4 approved First Substitute Senate Bill 76, a measure that sets an annual royalty for brine shrimp harvesters and establishes periodic review of the formula that determines that royalty.
Sponsor Senator Orrin Hatch said the amendment responds to the industry’s market volatility and would require the revenue and tax interim committee to review the royalty at least every five years. “We threw out the high year. We threw out the low year and took an average, and then I think we added 15 on top of that average,” Hatch said while explaining how the figure was derived. He told colleagues the approach was intended to be fair and to reflect inflation and market changes.
Hatch said the royalty is intended as an alternative to an ad valorem assessment that the state previously considered difficult to apply to the industry’s unique market. He said the draft yields roughly $550,000 per year that will be apportioned among harvesters according to harvest volumes. “You need to understand that the people participating in this industry... have to obtain a license to do so. It’s called a certificate of registration. And with the Department of Wildlife Resources, they pay $10,000 each for that permit to go out there and harvest the brine shrimp on the lake, in addition to this royalty,” Hatch said.
Senators pressed the sponsor on fairness and limits. Senator Waters asked whether the royalty is a fixed amount rather than tied to crop value; Hatch confirmed it is a set royalty apportioned by harvest. Senators also asked whether the wildlife board may limit permits; Hatch replied that permit limits remain within the wildlife board’s authority.
Supporters including Senator Knutson said the amendment sheds light on the royalty and makes the state’s approach more transparent. The sponsor noted past industry tensions and safety concerns, saying, “I understood there had been someone shot out there over these very issues years ago,” to explain why clearer rules and oversight were needed.
After debate, the Senate recorded 24 aye votes, no nay votes and five absences. The bill passed and will be referred to the House for further consideration.
The next step for SB 76 is House consideration; if approved there, implementing language and any administrative rules will determine how the Department of Wildlife Resources and the revenue committee allocate and collect the royalty.
