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Senate approves $25 million loan program for Washington County flood recovery
Summary
The Utah Senate approved House Bill 240 on Jan. 30, 2005, a $25 million disaster loan program to help Washington County repair infrastructure after severe flooding; the measure passed under suspension of rules and passed the Senate for final passage.
The Utah Senate on Jan. 30 approved House Bill 240, a $25 million disaster loan program aimed at repairing public infrastructure in Washington County after recent floods.
Senator Hilliard, speaking as the bill's carrier in the Senate, said the package is intended to make low-interest loans to local governments for infrastructure repairs and to move aid quickly while federal assessments continue. "This is going to be a loan," Hilliard said, noting an interest rate of 2 percent and that the measure is structured to coordinate with FEMA assistance.
A Committee of the Whole heard testimony from local officials. St. George Mayor Merrick MacArthur described the sudden scale of the damage: "I can't tell you that I had ever felt that I would stand in front of somebody's home and watch it disappear in 4 seconds," he said, urging quick state action. Senator Hickman introduced city and county officials who detailed damage to roads, utilities and trails and urged prompt help for both government infrastructure and contractors who have already performed recovery work.
Senators emphasized that the bill provides loans to government entities for infrastructure and that homeowner assistance is not the primary purpose; Hilliard said the law mirrors prior disaster responses and that FEMA typically provides a large share of recovery funding once its assessment is complete. He also said volunteer hours and in-kind contributions could be counted toward local matches.
Under suspension of the rules, the Senate voted to consider HB 240 for second and third reading and then approved final passage (roll-call recorded as yes votes with absences noted). The bill will be signed by the president of the Senate in open session and returned to the House for the speaker's signature.
The next steps are administrative: FEMA's assessment and the state's execution of loan agreements with affected local governments. Local leaders said a multi-jurisdictional 501(c)(3) and regional banks were collecting private donations and coordinating distribution while the state loan mechanism was finalized.
