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2010 Legislative Session RecapThe 2010 Utah General Legislative Session will be remembered for the responsible actions of legislators

to balance the budget without impairing Utah’s nascent economic recovery. The following is a brief update on critical business issues, as well as a prioritized list of bills the

Chamber either supported or opposed this session.

BudgetThe Legislature adeptly navigated an unprecedented budget challenge. The Chamber encouraged legislators to meet this challenge by adhering to several budget cornerstones: no general tax increase, keep commitment to transportation, invest in human capital, maximize state efficiencies and raise targeted user fees. We are pleased they incorporated each of these cornerstones into the final budget.

The Legislature did the following:

• Reduced state spending.

• Passed a tobacco user fee that will generate approximately $44 million annually.

• Used approximately $209 million of the Rainy Day Fund, leaving a balance of approximately $210 million.

November 11, 2009: The Chamber laid out a plan to bridge the projected $850 million budget deficit while protecting public and higher education funding.

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EducationOur Education Committee chair, Mark Bouchard, worked tirelessly to coordinate the efforts of business leaders and Chamber staff to communicate the Chamber’s education message to legislators. We emphasized that Utah must continue to invest in the future by investing in education. A well-trained workforce is the single most important element for long-term business strength. In the end, the legislature funded higher and public education at FY 2010 roughly budget levels, avoiding cuts that would negatively affect business.

February 24, 2010: The Chamber called for the Legislature to dig deeper into the Rainy Day Fund and increase the tobacco tax to protect education funding.

EthicsThe Legislature modernized Utah’s legislative ethics laws to support transparency and high standards of conduct in government. This legislation comes on the heels of last year’s efforts which established a one-year cooling-off period, strengthened the gift ban, placed limitations on the use of campaign funds after leaving public office and required annual ethics training for legislators and lobbyists. Taken together, the Utah Legislature has enacted the most significant ethics reform legislation in our state’s history and dramatically improved transparency and accountability in government. Ethics legislation passed this session includes:

• Establishment of an independent ethics commission in the state constitution

• A ban on gifts with a value greater than $10

• Stronger laws regarding financial and conflict of interest disclosure that also require such disclosures to be posted online, thereby increasing transparency

• Restrictions on the use of funds raised for campaigns, including prohibitions on the use of campaign funds for personal expenditures

• Changes to ethics complaint review process which depoliticizes the process

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January 20, 2010: The Chamber presented the 2010 Public Policy Guide to House Speaker David Clark and Senate President Michael Waddoups

Health System ReformThe Legislature furthered Utah’s health system reform by passing legislation that addresses problems brought to light during the limited launch of the Utah Health Exchange. The Exchange, created last legislative session, facilitates a defined contribution market, available to employers as an option to provide health benefits. In its limited launch, it was discovered that an artificial price discrepancy existed between the Exchange and the market outside the Exchange, which deterred consumers from participating in the Exchange. To strengthen this foundational piece of Utah’s health system reform efforts, the Legislature passed H.B. 294, which resolves this issue without mandates. H.B. 294 resolves the pricing disparity while providing greater choice to all involved in our health system including employers, employees and insurance carriers.

This legislation also allows for the establishment of a large group pilot project that has the potential to bring nearly 40,000 individuals to the Exchange. This volume will increase competition in the Exchange and begin to unleash the powers of market-based reform to contain costs, strengthen the economy and improve lives.

Influence on the Hill✓No general tax increases

✓Keep higher and public education at FY 2010 funding levels

✓Increase the tobacco tax to at least the national average

✓Use Rainy Day Fund as a strategic asset

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DowntownIn the final hours of the session, several important downtown issues were resolved.

Emergency Operations Center The Legislature wisely inserted intent language into H.B. 3 that directs the State of Utah to work with Salt Lake City to determine the cost effectiveness and operational efficiencies of a joint Emergency Operations Center.

Equalization This legislation brings much needed accountability to the use of certain funds received through capital outlay levy equalization programs. It sunsets certain of those programs in 2016 and it requires school districts which receive equalization funds to report to the Legislature on the use of those funds.

North Temple Viaduct The legislature allocated $3.5 million for the construction of the North Temple Viaduct which will connect downtown with the Salt Lake International Airport via TRAX.

State Pension/Retirement System ReformThe Legislature took on a difficult issue that, left unaddressed, would have negative impacted state budgets for the foreseeable future. The Legislature addressed this issue by establishing a two-tiered pension system whereby new hires after 2011 will work under a new set of retirement rules. It also eliminated the so-called "double dipping" that has occurred in state employment in recent years.

School District Capital Outlay Equalization The future of the North Temple ViaductMayor Becker announces plans for EOC

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Priority A

EducationHB 1 – Newbold Minimum School Program Base Budget PASSEDHB 4 – Newbold Current School Year Supplemental Minimum School Program Budget Adjustments PASSED SB 1 – Hillyard State Agency and Higher Education Base Budget PASSEDSB 2 – Stephenson Minimum School Program Budget Amendments PASSEDSB 175 – McAdams School District Capital Outlay Equalization Amendments PASSED

EthicsHB 124 – Cosgrove Campaign Funds Expenditure Restrictions PASSEDHB 267 – Garn Lobbyist Disclosure and Regulation Act Amendments PASSEDHB 270 – Hughes Financial Disclosure and Conflict of Interest Amendments PASSEDHJR 14 – Hughes Joint Rules Resolution on Financial Disclosures PASSEDHJR 15 – D. Clark Joint Resolution on Legislative Ethics Commission PASSEDSB 136 – Valentine Open and Public Meetings Revisions Related to Review of Ethics Complaints PASSEDSB 138 – Valentine Grama Revisions Related to Review of Ethics Complaints PASSEDSJR 3 – Valentine Joint Resolution on Ethics Complaint Procedures PASSEDSB 275 – Stephenson Removing Signature from Initiative and Referendum Petition PASSED

Health CareHB 294 – D. Clark Health System Reform Amendments PASSEDHCR 8 – D. Clark Concurrent Resolution on Federal Health Care Reform PASSEDSB 145 – Adams Medical Malpractice Amendments PASSED

State BudgetHB 3 – Bigelow Appropriations Adjustments PASSEDHB 196 – Ray Tobacco Tax Revisions PASSEDSB 259 – Christensen Amendments to Tobacco Tax PASSED

TransportationSB 215 – Niederhauser Highway Project Funding - Salt Lake County PASSED

Priority B

Business RegulationHB 18 – Mascaro Unemployment Insurance Amendments PASSED

Economic DevelopmentSB 73 – Bramble Sales and Use Tax Exemption Relating to Aircraft PASSED

EnergyHB 70 – Draxler Certification of Retrofit Compressed Natural Gas Vehicles PASSED

Health CareSB 273 – Hillyard Hospital Assessments PASSED

Retirement

SB 42 – Liljenquist Retirement Eligibility Modifications SB 43 – Liljenquist Post-retirement Employment Amendments PASSEDSB 63 – Liljenquist New Public Employees' Tier II Contributory Retirement Act PASSEDSB 94 – Liljenquist Supplemental Benefit Amendments for Noncontributory Public Employees SB 171 – Liljenquist Higher Education Retirement Amendments PASSEDSB 240 – Liljenquist Retirement Participation Amendments PASSED

TransportationHB 438 – Lockhart Transportation Modifications PASSED

Priority C

Business RegulationHB 15 – Dunnigan Deferred Deposit Lending Amendments PASSEDHB 17 – Mascaro Amendments to Programs for People with Disabilities PASSEDHB 23 – Beck Workplace Drug and Alcohol Testing PASSEDHB 43 – Mascaro Unemployment Compensation Amendments PASSEDHB 45 – Morley State Construction Code Adoption PASSEDHB 53 – Wilcox Foreclosure Rescue and Loan Modification Amendments PASSEDHB 139 – Oda Emergency and Disaster Management Amendments PASSEDHB 289 – Oda Judicial Nominating Commission Amendments PASSED HB 307 – Hughes General County Powers Amendments PASSEDHCR 5 – Daw Concurrent Resolution Recognizing the 100th Anniversary of the Boy Scouts of America PASSEDSB 26 – Urquhart Utah E-Commerce Integrity Act PASSEDSB 108 – Jenkins Judicial Nominating Commission Staff Amendments SB 179 – Liljenquist Utah Revised Business Corporation Act Amendments PASSED

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Priority C (cont’d)

Economic DevelopmentHB 24 – Wallis Economic Development Incentives Act Amendments PASSEDHB 118 – Harper Economic Development Incentives Modifications PASSEDSB 51 – Hillyard Bioprospecting PASSEDSB 123 – Hillyard Motion Picture Incentive Fund Amendments PASSEDSB 124 – Stevenson Military Installation Development Authority Modifications PASSED

EducationHB 166 – Dougall Reductions to Education Mandates PASSEDSB 16 – Stephenson Utah Performance Assessment System for Students (U-PASS) Amendments PASSEDSB 95 – Niederhauser Utah Educational Savings Plan Amendments PASSEDSB 132 – Valentine Higher Education Scholarship Amendments PASSED

EnergyHB 192 – Watkins Renewable Energy - Methane Gas PASSEDHB 228 – Barrus Renewable Energy Source Amendments PASSEDHJR 5 – Moss Joint Resolution on Clean Air PASSEDSB 47 – Van Tassell Electrical Utility Amendments - Efficiency and Conservation Tariff PASSEDSB 104 – Urquhart Renewable Energy Modifications PASSEDSB 242 – Van Tassell Economic Development Incentives for Alternative Energy Projects PASSED

Health CareHB 20 – Dunnigan Amendments to Health Insurance Coverage in State Contracts PASSEDHB 25 – Newbold Health Reform - Administrative Simplification PASSEDHB 52 – Newbold Health Reform - Uniform Electronic Standards - Insurance Information PASSEDHB 71 – Ray Nicotine Product Restrictions HB 88 – Newbold Electronic Cigarette Restrictions PASSEDHB 206 – Ray Ban on Sale of Smoking Paraphernalia to Minors PASSEDHB 408 – Last Hospital Claims Management PASSEDHB 421 – Last Medical Financial Records Amendments PASSEDHB 459 – D. Clark Health Amendments PASSEDHJR 11 – Morley Joint Resolution Regarding Federal Health Insurance Reform PASSEDHJR 27 – Newbold Authentic Charity Healthcare Joint Resolution PASSEDSB 208 – Okerlund Jury Amendments

State BudgetHB 49 – Kiser Amendments Related to Tax, Fee, or Charge Administered by the State Tax Commission PASSEDHB 464 – Dougall Family Health Services RFPs - Tobacco Settlement Funds PASSED

TransportationSB 272 – Stevenson Amendments to Transportation Provisions PASSED

Oppose

HB 85 – Seegmiller Responsible Development of Nuclear Power Generation RULESHB 90 – King Income Tax Amendments RULESHB 227 – Sandstrom Licensing Eligibility BOARDHB 203 – Watkins Repeal of Sales and Use Tax Exemption Relating to Mining RULESHB 428 – Greenwood Nonresident Tuition Amendments RULESSB 27 – Hillyard Sales and Use Tax Definition of Tangible Personal Property RULESSB 115 – Robles Unemployment Insurance Revisions FAILEDSB 151 – Bramble Collection, Remittance, and Retention of Certain Taxes, Fees, or Charges RULESSB 251 – Buttars Verification of Employment Eligibility PASSED*

*The Chamber worked to moderate this bill and does not support this legislation.