1. SUMMARY OF THE 2013
UTAH LEGISLATIVE SESSION
Mike Bailey
Shelly Cordon Teuscher
Salt Lake City
April 11, 2013
4834-4010-1907 parsonsbehle.com

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 Educate you
 Alert you to issues that may affect your
business
 Scare you…just a bit
 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 act upon
the information in the presentation without consulting legal counsel.
Goals of Today’s Presentation

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I. Utah Legislature by the Numbers
II. 2013 Session Review (using themes)
III. Protecting your Business by Playing an
Active Role
Please ask questions throughout
Outline of Presentation

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61
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14
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2013 House and Senate Composition
Republicans Republicans DemocratsDemocrats
House Senate

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 Large Number of Freshmen in the House
– 20 of 75 in the House were new
– 11 more beginning their second term
 Could have been chaotic
 Mood was workmanlike
 Media didn’t find much to report on but they
should have
2013 Legislative Session

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It was a Record Setting Session
303 House
bills passed
221 Senate
bills passed
1 bill (HB 76)
was vetoed
 748 bills were introduced
 524 bills passed

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782 764 748
504 478
524
Comparing Bill Passage Over Time
Bills
Introduced
Bills
Introduced
Bills
Passed
(64%)
Bills
Passed
(62%)
2011 2012 2013
Bills
Introduced
Bills
Passed
(70%)

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 Senate has fewer members (29, compared to
75) but passed many more bills per member
– Just over 4 bills per Representative
– Compared to 7.6 bills per Senator
 House worked slowly in final days
Squabbling between Senate & House

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2013 Bill Passage By The Numbers
Republican -
sponsored
bills that
passed
(492 or 94%)
Democrat -
sponsored
bills that
passed
(32 or 6%)
2012:
87% Republican
13% Democrat

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 Most Prolific Legislators
– Republican
• Senator Todd Weiler (19 out of 33 for 58%)
• Only his second session
• Unseated many-time champion – Senator Curt Bramble
– Democrat (Tie)
• Senator Luz Robles (5 out of 16 for 31%)
• Senator Karen Mayne (5 out of 15 for 33%)
2013 Bill Passage By The Numbers

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73%
of the bills
introduced
passed
38%
of the bills
introduced
passed
Effectiveness of Legislators by Party
Republicans Democrats

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The Session’s Broad Themes
Frightening
Some passed, some
failed but they received
little or no media
attention
Interesting
Heavily debated
& usually received
media attention
Ordinary
Expected,
not surprising

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Frightening Bills that Passed

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 HB 76 would have eliminated need for
concealed-carry permit
– Governor vetoed
– Passed with “veto-proof” majorities, but veto
override not certain
– May 13 is last day a veto-override session
may begin
 Do employers have the right to prohibit guns?
– Utah law silent
Guns

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Frightening Bills that Failed

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 Inversions early in the session drove concern
– 200 doctors urged January declaration of
public health emergency
– Few easy fixes
 Democratic package of bills went nowhere
– Free transit in January and February
 Altered standard for industrial regulation rules
Air Quality

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 Every tax increase was killed
 No tax on potable water use
 No restoration of sales tax on food
 No increase in income tax for high earners
New Taxes Failed But Effect Could
Have Been Dramatic

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 No increased tax on alcohol
 No increase in gas tax
 No increased sales tax on online sales
 No severance tax increase on minerals
and oil & gas
New Taxes Failed But Effect Could
Have Been Dramatic (continued)

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 Eminent domain is a local government’s right
to take your property without your consent
(pay fair market value)
 Traditionally used for public purposes like
utility corridors, pipelines, roads, etc.
 Sen. Bramble’s bill, SB 201, attempted to add
“trails” to the list of uses for eminent domain
Trails

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 Would have given local governments right to
condemn property, including
mines, corporate open space and private
property to create a “trail”
 Sen. Bramble kept amending it to reduce
opposition to the bill but, essentially, the bill
was simply too controversial to pass
Trails (continued)

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 It was a tale of two bills
– SB 109 sponsored by Sen. Ralph Okerlund
– HB 123 sponsored by Rep. Kay McIff
 SB 109 was originally designed to restore the
power of the state water engineer
 By end of session it became a confusing
combination of the two bills
Water

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 HB 161 would have subjected the first entity
that sold or distributed a foreign
manufactured product to the same liability as
the product’s manufacturer
 Was amended…
 Then failed…
 But it may be back in 2014
Product Liability

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 SB 212 was introduced by Senate Majority
Leader Okerlund
 Was amended many times
 Amended version would have changed
prejudgment interest rate to two points above
prime and would have been computed from
date plaintiff was first treated
 Bill died in the House
Prejudgment Interest

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Ordinary
Things that were expected or not surprising

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 Primary duty under Utah Constitution
 Had extra money to spend
 Over $300 million went to education
– 1% increase in teacher salaries
– 2% increase in weighted pupil unit
 Impact of sequestration factored into
spending
– Mostly did not restore federal funding
terminated by sequestration
It Starts With a Budget

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 Recognition that vehicular emissions a major
source of pollutants
 Natural gas vehicles a focus
 Questar allowed to put cost of natural gas
refueling stations into rates
– Will benefit UTA
 Agencies to develop air quality mitigation
plans
Air Quality

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 Prosperity 2020
– 66% to hold postsecondary degrees or
certifications
 $20 million for STEM Funding
 $5 million for UCAT
Workforce Readiness

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 Health System Reform
 Education
– How it can sustain economic development
and align with workforce needs
– Funding and Budgeting
– Educational Standards
 Veterans Reintegration
Task Forces

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Interesting Issues
These bills were heavily debated and
usually received media attention

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 Reconfigured PRADA board
 Provides for RFPs
 Became controversial
 Perfect storm of low interest rates and cheap
construction costs
 Development of the Draper site would result
in billions of dollars in development and
40,000 new jobs
Prison Relocation

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 Convention Center Hotel
– 850 Rooms
– Needed to attract certain conventions
– Failed in close vote
 Liquor
– New master license will mean more
restaurants with liquor licenses
– “Zion curtain” will remain
Hotels and Liquor

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 Guns: Give sheriffs power to arrest federal
agents
– Watered down, then did not pass
 Medicaid Expansion: Effort to prevent
Governor from expanding Medicaid to 138%
of poverty limit
– Emotional debate
– Did not pass
“Message Bills”

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 No moonlighting for executive branch officials
 Lt. Governor to appoint agency to investigate
ethics complaints
 “Push polls” must identify funders
 PACs must identify source of funds
 No election-day registration
Elections, Campaign Finance
and Ethics

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 Would have imposed sales tax on some
on-line sales
 Failed. Passed Senate, never considered in
the House
Online Sales

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 Anti-Discrimination
– Bill made it further than ever before
 Smoking
– No smoking in cars with riders under 15
– No taxes on e-cigarettes
Other Issues

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Frightening Issues That May
Be Headed Our Way

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 We talk; we listen
 We meet with legislators and lobbyists
 We attend interim hearings
 We review the Master Study Resolution
(HJR 20)
How Do We Know What
is Coming Next?

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 Product Liability (HB 161)
 Telecommunications Tax
 Severance Tax
 Eminent Domain (HB 111)
Master Study Resolution

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 Guns in the Workplace
 Construction Registry
 Impact of Economic Development
 Administrative Law Judge Amendments
 Attorney General – Appointed or Elected?
Master Study Resolution (continued)

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 Campaign Contribution Limits
 GRAMA
 Extension of Governmental Immunity
 Air Quality Solutions
 Taxes (Items 169 – 183)
Master Study Resolution (continued)

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 Get in the Game
– Stay apprised of any developments
– As we saw this session, reading the
newspaper is not enough
– If you see an issue of concern, what can you
do about it?
– Contact us. We can help
Protecting Your Business

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 We strategize with businesses
 We monitor the Legislative Session
 We draft legislation
 We help get bills passed
 We help get bills killed
 We seek appropriations
 We help with incentive packages
 We help clients get whatever they need
to protect their businesses (no request is
too difficult)
Protecting Your Business

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 Legislature has study committees that
meet monthly
 Master study resolution (HJR 20) gives some
idea of issues to be studied
 We will forward it to you
Protecting Your Business

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 Be vigilant – stay informed
 Think of ways that legislation can help
your business
– No request is too crazy / it is never too late
 We’re here to help – feel free to call
– regarding eminent domain…
– or even concealed carry permits
Takeaways

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 Mike Bailey
direct: (801) 536-6777
cell: (801) 201-0115
email: mbailey@parsonsbehle.com
twitter: @utahcounselor
 Shelly Cordon Teuscher
direct: (801) 536-6976
cell: (801) 541-5918
email: steuscher@parsonsbehle.com
Thank you