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2013 Utah Legislative Preview Presentation Transcript

  • 1. PARSONS BEHLE & LATIMER BREAKFAST BRIEFING2013 UTAH LEGISLATIVE PREVIEWMike BaileyShelly Cordon TeuscherParsons Behle & LatimerJanuary 25, 20134852-9307-2146 parsonsbehle.com
  • 2. 2 Introduce you to the Utah StateLegislature Alert you to important issues underconsideration• This presentation is a source of general information for clients and friends of Parsons Behle& Latimer. Its content should not be construed as legal advice and attendees should not actupon the information in the presentation without consulting legal counselGoal of Today’s Presentation
  • 3. 3I. Utah Legislature 101II. 2013 Session PreviewIII. Protecting your Business by Playingan Active RolePlease ask questions throughoutOrder of Play
  • 4. 4 Lots of turnover, especially in the House Very few long-standing members in theHouse– Speaker Lockhart, elected 1998 Senate relatively stable– Senator Hillyard, elected 1984– Senators Harper, Vickers, many others overtime have moved from the House to theSenateComposition of Legislature
  • 5. 56131Utah House RepublicansTotalServing1st or 2ndTerms
  • 6. 6 Large freshman and sophomore class willchange the dynamic– Fresh approaches– Issues considered in the past may be revisited– Completely new dynamic Disparity between the tone of the Houseand demeanor of the Senate will beexaggeratedRelevance of Turnover
  • 7. 7 Republican team remains stable, exceptfor new deputy whip Rep. Ipson Democratic team has changed– Rep. Seelig– Rep. Cosgrove– Rep. Chavez-Houck– Rep. BriscoeHouse Leadership
  • 8. 8 Republican team completely new– Sen. Niederhauser– Sen. Okerlund– Sen. Adams– Sen. KnudsonSenate Republican Leadership
  • 9. 9 Democratic team has changed too– Sen. Davis– Sen. Mayne– Sen. Jones– Sen. Robles Only one member not in leadership/lateappointeeSenate Democratic Leadership
  • 10. 1061241452013 House and Senate CompositionRepublicans Republicans DemocratsDemocratsHouse Senate
  • 11. 11 Patrick Henry caucus mostly gone– Doesn’t mean legislature will be more liberal Lots of lawyers New faces in important roles– Rep. Sanpei over Rules Utah positively mainstream compared toNevadaOther Dynamics
  • 12. 12 Budget Education Guns Environmental Regulation Transportation Obamacare New Federalism The Sexy Stuff (always at the end)2013 Legislative Session
  • 13. 13 State will have budget surplus State has at least $284 million in newneeds (new student growth, wildfires, etc.)Budget
  • 14. 14 Federal actions have a huge effect onUtah Budget surplus was to have been $300 –400 million before the fiscal cliff deal With deal, somewhere between $105million and $300 million – likely on thelower end of that rangeFirst Fiscal Cliff
  • 15. 15 Sequestration cuts pushed to the end ofMarch Sequestration impact could be $550million What will happen?Second Fiscal Cliff
  • 16. 16 Utah budgeting always very conservative Numerous awards for best-managed state Likely to respond to current uncertainty bypassing flat budget, waiting to spendsurplus until impact of federal decisionsare known Even some talk about passing budget with5% reductionOur Best Guess
  • 17. 17 Governor’s budget calls for $298 millionincrease Federal uncertainty likely to affect funding Increased interest in accountability andtransparency– Pushback from educatorsEducation
  • 18. 18 Guns already allowed in parking lots Disorderly conduct (Rep. Ray) No need for concealed weapons permit(Rep. Mathis) Third-degree felony for federal official toenforce federal gun laws within Utahborders (Rep. Greene)Guns in the Workplace
  • 19. 19 Gun rights fervor may spill over into theworkplace– Open carry– No employer restrictions allowed?Guns in the Workplace
  • 20. 20 Bill to disband DEQ Business community will be activatedagainst it Protection of “delegated” state programsEnvironmental Regulation
  • 21. 21 Many major projects have been completed Still funding shortfall, especially formaintenance Interest in new funding sources– Congestion pricing not ready for prime time Gas tax– Index it for inflation? Sales tax on gasolineTransportation
  • 22. 22 This is the time to make some importantdecisions Will state run their own exchange?– Feds say they will “work with Utah”– Real flexibility unlikely– Likely to be a federal exchange Medicaid expansion unlikelyObamacare
  • 23. 23 Restore full sales tax on food?Probably not Income tax increase for education?Definitely not Severance tax changes being proposed byProsperity 2020? Maybe Increased exemption for personal propertytax for business? MaybeTaxes? No, No, Maybe, Maybe
  • 24. 24 Increasing anger at federal government Continued push to get control of federallands Could go well beyond lands– Federal executive orders don’t apply in Utah?New Federalism
  • 25. 25 Move the prison?– Perfect storm of low interest rates, lowconstruction costs– PRDA voted unanimously to do it– Cost about $550 million– Trick will be how to fund it– We don’t want to be Santa Clara County• $180 million became $6.1 billion in 50 years(inflation adjustment = $1.33 billion)Sexy Issues
  • 26. 26 Ethics Reform Motorcycle Helmets Hair Braiding (Licensing, in general) Immigration Alcohol Mechanic’s Liens Water RightsOther Sexy Issues
  • 27. 27 Get Involved– Participate in the political process– Educate yourself / Stay informed If you see an issue of concern, what canyou do about it?– Build a coalition– Contact your legislator (le.state.ut.us)Protecting Your Business
  • 28. 28 We’re here to help – never be reluctantto call– About taxation …– or guns in the workplace…– or even hair braidingDon’t Hesitate to Call
  • 29. 29 Mike Baileydirect: (801) 536-6777cell: (801) 201-0115email: mbailey@parsonsbehle.comtwitter: @utahcounselor Shelly Cordon Teuscherdirect: (801) 536-6976cell: (801) 541-5918email: steuscher@parsonsbehle.comThank you