2010 GENERAL SESSION
The Office of Legislative Research and General Counsel provides this compilation of some of the key issues that the
Utah State Legislature may address during the upcoming session. This document is also online at http://le.utah.gov.
December 2009
ADMINISTRATIVE RULES
Department of Human Services Related Parties
Conflict Investigation Procedure. A licensed clinical
social worker claimed that the Department of Human
Services was violating statute by assigning certain
investigations into alleged child abuse or neglect to an
agency within the department instead of an independent
child protective service investigator under contract with
the department. The Legislature may consider
sunsetting the administrative rule establishing the
separate investigation process and other mechanisms to
address the issue.
Public Geothermal Pools and Bathing Places.
Representatives of the Saratoga Springs Homeowners
Association expressed concern that the Utah County
Health Department's geothermal pool water quality
rules are too stringent and have the potential to
financially overburden homeowners. The Legislature
may consider legislation to address these concerns.
State Implementation Plans and Local Government
Regulations Regarding Emissions Inspections.
Representatives of several Weber-Morgan county-area
emission inspection businesses expressed concern that
in some cases fines for emission testing violations were
exorbitant and that some violations were assessed in
error. The Legislature may consider ways to address
these issues.
BUSINESS AND LABOR
Adoption of a State Construction Code and State
Fire Code. The Legislature will consider legislation
concerning a new state construction code. The
Legislature may also consider legislation adopting a
new state fire code and legislation clarifying the
adoption process.
Deferred Deposit Lending. Persons engaged in the
business of check cashing or the business of deferred
deposit lending must register with the Department of
Financial Institutions and follow certain procedures
when extending deferred deposit loans. The Legislature
will consider legislation amending the Check Cashing
and Deferred Deposit Lending Registration Act to
address operation requirements related to deferred deposit lending.
Insurance Related Legislation. The Legislature will consider
bills to modify the Insurance Code, including general "clean up"
legislation and modifying provisions related to the Utah Life and
Health Insurance Guaranty Association Act. The Legislature may
also consider legislation to update the terminology in and the
structure of the Insurance Code.
EDUCATION
Charter Schools. Charter schools are almost entirely funded
with state monies, with only a small contribution from local
property taxes. With six new charter schools scheduled to open
in August, 2010, legislators are expected to reexamine how
charter schools are funded. Legislation to remove the cap on
charter school enrollment is also anticipated. Removal of the cap
may enhance the state's ability to qualify for a federal education
grant.
Education Financing. The ability of school districts to generate
revenue through property taxes varies depending upon the
property wealth of the school district. At the same time, some
school districts have a greater need for property tax revenue due
to growing school enrollment necessitating new school building
construction. The Legislature is expected to consider legislation
to equalize property tax burdens and assist school districts with
rapid growth in school enrollment.
Reproductive Health Education. Some school districts in the
state offer only abstinence-based reproductive health education
with no instruction addressing other methods of contraception.
Legislation is anticipated that would make comprehensive
reproduction health education available to a student if permitted
by the student's parent.
GOVERNMENT OPERATIONS AND POLITICAL
SUBDIVISIONS
Assessment Areas. Designation of an assessment area by a local
entity allows that local entity to assess the property within the
assessment area for the purpose of financing the costs of
improvements, operation and maintenance, or economic
promotion activities that benefit property within the assessment
area. Prior to 2007, an assessment area was commonly known as
either a County Improvement District, a Municipal Improvement
District, or a Parking and Business Improvement District.
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Legislation modifying assessment area provisions will
likely be introduced in the 2010 General Session.
Campaign Finance. Requiring electronic filing of
campaign reports, requiring more expenditure detail,
and providing dollar contribution limitations are
methods being discussed to increase transparency on
financial disclosure statements to allow the public to
better determine how campaign money is spent and who
received the money.
Land Use. The Legislature has given to municipalities
and counties generally broad authority, though there are
some restrictions and requirements, over regulating land
use. A municipality regulates land area within its
municipal boundary. A county regulates land area
within the unincorporated part of the county.
Legislation modifying requirements and restrictions for
public notice, subdivisions, transferable development
rights, applicability to other government entities, and
zoning will likely be introduced in the 2010 General
Session.
Local Entity Boundary. The Legislature has outlined
in statute the processes whereby a municipality, county,
or other local entity may change its boundary through
incorporation, dissolution, consolidation, division,
annexation, withdrawal, or boundary adjustment.
Legislation modifying requirements and restrictions for
some of these processes will likely be introduced in the
2010 General Session.
One-Year Lobbying Ban. Current statutory provisions
prohibit a former legislator and other state officers from
lobbying state public officials for one year after leaving
office. An exception is made for lobbying on behalf of
a business that the former state officer is associated
with, unless the primary activity of the business is
lobbying or governmental relations. Some groups
suggest eliminating some of the exceptions.
Public Officer Ethics. This interim the Legislature
created a joint Ethics Interim Committee to look at
ethics reform issues relating to legislators. After
reviewing several aspects of reform the committee
passed unanimously, "Joint Resolution on Ethics
Complaint Procedures." The resolution changes the
current process by which complaints are filed and heard
by the Legislature in several ways. The most significant
change is the creation of a nonpartisan commission to
first hear ethical complaints against legislators.
HEALTH AND HUMAN SERVICES
Abortion. Recently, a 17-year old pregnant girl
allegedly hired a man to beat her in order to end her
pregnancy. An Eighth District juvenile court judge held
that under existing law she could not be prosecuted for criminal
solicitation to commit murder. In response, the Health and
Human Services Interim Committee has recommended draft
legislation that amends provisions of the Utah Criminal Code to
describe the difference between abortion and criminal homicide
of an unborn child and to remove prohibitions against
prosecution of a woman for killing an unborn child or
committing criminal homicide of an unborn child. The state has
filed a notice that it will appeal the juvenile court judge's ruling.
Federal Health Reform. Congressional health reform proposals
have the potential to affect Utah's Medicaid program, the state's
regulation of health insurance, Utah insurers, Utah medical care
providers, Utah employers, and Utah consumers. The Legislature
may consider legislation in response to federal legislation, either
proposed or adopted, including legislation that would allow the
state to "opt out" of federal reform.
State Health Reform. During the 2007, 2008, and 2009 general
sessions, the Legislature enacted legislation designed to lay a
foundation for significant health care reform. Several follow-up
pieces of legislation have been developed by the Health System
Reform Task Force and will be introduced during the 2010
General Session. Other follow-up legislation may be introduced,
including legislation relating to the Utah Health Exchange—the
second of only two health insurance purchasing exchanges in the
country. The Exchange becomes fully operational January 1,
2010, but by design will serve only a limited number of
enrollees. To facilitate future enrollment expansion, legislation
may be necessary to address the sharing of risk across
participating insurers.
Substance Abuse. Substance abuse continues to take a large toll
on individual lives and state agency budgets. The Legislature
will consider six bills recommended by the Health and Human
Services Interim Committee that address the scheduling of
controlled substances, the reporting of overdoses, the use of the
Controlled Substance Database, and the statutory definitions
upon which state regulators and the law enforcement community
rely. Other legislation related to substance abuse may also be
introduced.
Tobacco. Raising the tobacco tax has been suggested both as a
way to address state revenue needs and a way to promote public
health by discouraging smoking and funding public health
related programs. Legislation to raise the tobacco tax will likely
be introduced for the second time in as many years during the
2010 General Session.
JUDICIARY, LAW ENFORCEMENT AND CRIMINAL
JUSTICE
Expungement Revisions. A person arrested or convicted of a
crime may be permanently barred from certain privileges in
society, if an expungement is not available. There is some
controversy surrounding the issue of expungement. Legislation
will be introduced that sets out the steps a petitioner must take to
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obtain an expungement, and specifies which offenses
may not be expunged. The proposed legislation
provides notice of a petition for expungement to the
prosecutor, the victim, and in the court's discretion, the
Division of Adult Probation and Parole. The Bureau of
Criminal Identification may charge application and
issuance fees for a certificate of eligibility for
expungement and may deny a petitioner a certificate of
eligibility if the petitioner provides false or misleading
information on an application.
Inmate Health Insurance. Medical care for inmates in
Utah's prisons costs Utah taxpayers approximately $28
million in Fiscal Year 2009. The Utah Department of
Corrections reported that there are a few inmates in the
Utah prison system who have health insurance benefits
through a spouse's employer or other private contract
but are not using their benefits because the state is
paying for their care. Legislation will be introduced
that provides that if an insured is otherwise eligible for
health or dental benefits under an existing policy, an
insurer may not exclude coverage for an insured who is
an inmate housed in a correctional facility or an
offender in the custody of the Department of
Corrections. The legislation specifies other
requirements and exempts injuries to the insured caused
by self harm or as a result of physical violence
committed either upon or by the inmate.
Post Conviction Remedies. Due to concerns regarding
the frequent use of Utah's Post-Conviction Remedies
Act for inmate appeals, this legislation will amend a
section of the act to clarify that the exemption relating
to a claim of ineffective counsel is the only ground for
relief available under the act.
NATURAL RESOURCES, AGRICULTURE, AND
ENVIRONMENT
Canal Safety. In July, 2009, a portion of a hillside in
Logan, Utah gave way, breached a canal barrier, and
sent tons of water and debris cascading into a
neighborhood below. The Governor and Legislature
have been studying whether regulation of canals is
needed to protect the public. It is expected that
legislation will be introduced addressing canal safety.
Stream Access. In 2008, the Utah Supreme Court
issued an opinion in the case of Conatser v. Johnson
which addressed the scope of recreation access from
public waters onto private stream beds. It is expected
that legislation will be introduced clarifying or
modifying the Conatser case.
PUBLIC UTILITIES AND TECHNOLOGY
Internet Security. Internet fraud such as phishing,
pharming, identity theft, and cybersquatting are
continuing to evolve and as a result existing laws need to be
updated. Draft legislation, Utah E-Commerce Integrity Act, has
been prepared which addresses the new fraudulent acts and
prohibits certain related behavior.
Natural Gas Vehicle Fuel Infrastructure. Individuals and
public and private sector entities use natural gas vehicles in their
fleet services, but that use is limited due to few natural gas fuel
stations across the state. The Legislature may consider
legislation to increase the number of natural gas fuel stations.
Renewable Energy Definition. The existing renewable energy
definition does not include new energy-generation technology
developments. The Legislature may consider legislation that
broadens the definition to include new processes, such as
compressed air technology for methane and other gases.
REVENUE AND TAXATION
Cigarette and Tobacco Taxes. The state currently imposes a tax
on cigarettes at a rate of 69.5 cents per pack. In addition, a tax is
imposed on moist snuff (75 cents per ounce) and on other
tobacco products (35 percent of manufacturer's sales price).
Various measures (the number of taxable packs per capita sold,
total packs sold, and percentage of adults who say they smoke)
indicate a declining tax base over the past thirty years. The tax
rate has been periodically increased over time, with the last
increase in the cigarette tax in 2002. Legislation may be
introduced to address the taxation of cigarettes, moist snuff, or
other tobacco products.
Estimated Quarterly Payments for Individual Income Tax.
Currently, wage-earners have individual income taxes withheld
from each paycheck, spreading the collection of income taxes
throughout the year. Those with non-wage income, such as
business income or capital gains, are not subject to the same
requirements for non-wage income. Legislation may be
introduced to require quarterly estimated tax payments for
households with income above certain thresholds.
Sales and Use Tax on Food. Prior to 2007, food and food
ingredients ("food") were taxed the same as most other items
within the sales and use tax base. With legislation enacted
during the 2006 and 2007 General Sessions, the Legislature
reduced the state sales and use tax rate on food to 1.75 percent
and removed food and food ingredients from the tax base of all
local option sales and use taxes other than the 1 percent local
option and .25 percent county option sales and use taxes. As a
result, food is now taxed at a uniform 3.0 percent statewide.
Food is both one of the more stable components of the sales tax
base as well as one of the more regressive components.
Legislation may be introduced relating to reinstating the sales
and use tax on food.
Sales and Use Tax – Seller Discount. Certain sellers that collect
sales and use tax revenue are required to file a return and remit
sales and use taxes monthly. Those that remit on a monthly
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basis, typically large companies, may retain a certain
percentage of the sales and use tax revenue that they
collect as a "seller discount" as compensation for the
cost of collecting and remitting the tax. Legislation
may be introduced to eliminate the seller discount for
monthly sales and use tax filers.
Tax on Certain Food and Beverages Sold by a
Restaurant. Counties are currently authorized to
impose a tax of 1 percent on sales of certain food and
beverages sold by a restaurant. Revenues from the tax
may be used for various tourism-related purposes, such
as airports, convention centers, and cultural facilities.
Legislation may be introduced to eliminate this tax and
authorize counties to impose an additional general sales
and use tax of .1 percent to mitigate the fiscal impact of
eliminating the tax.
RETIREMENT
Defined Benefit Reform. The Utah State Retirement
System operates on an assumed annual rate of return of
7.75 percent. To keep the system actuarially sound, the
overall rate of return must equal that assumed rate over
time. When that rate of return is not met, contribution
rates must be increased accordingly. The recent
downturn has prompted renewed study on ways to
reduce the state's retirement liability. Several options
have been discussed.
Funding Employee Health Care Premiums. Health
care costs continue to increase. During each of the last
three years, health care premium increases have been
absorbed by the state by increased employee premium
shares, increased co-pays, and reduced benefits. In FY
2010, state employees are paying five percent of the
premium share. Without significant changes these
trends are likely to continue.
Funding Retirement Contributions Rates. For FY
2011, the Retirement Board has recommended a
contribution rate of 16.32 percent of salary for the state
and school employees in the Public Employees
Noncontributory Retirement System. This is an increase
of 2.1 percent of salary from the 14.22 percent of salary
contribution rate paid during the previous four fiscal
years. The 16.32 percent of salary rate is also the
highest contribution rate since the creation of the
noncontributory system in 1987. The state will need to
fund an additional $75 million to fund this contribution
rate increase. Similar increases are projected to be
needed in each of the next four to six years.
Post Retirement Employment. The Office of the
Legislative Auditor General released an audit in
November 2009 titled "A Performance Audit of the
Cost of Benefits for Reemployed Retirees and
Part-Time Employees." The audit calls for an end to current
incentives for public employees to retire early and return to
work. Premature retirement means retirees begin drawing their
allowance earlier than anticipated, which results in a negative
financial impact on the retirement system. The audit also
includes findings on retirement service credit and health benefits
for part-time employees.
TRANSPORTATION
Transportation Funding. As a result of inadequate funding to
maintain and preserve the entire state highway system, the
preservation of some less traveled highways has been and will be
postponed. Continuing to postpone highway maintenance and
preservation projects could lead to more expensive maintenance
options or even reconstruction. The Legislature may consider
what the state’s road construction and maintenance priorities are
and funding options for these priorities.
WORKFORCE SERVICES AND COMMUNITY AND
ECONOMIC DEVELOPMENT
International Trade & State - Federal Relations. State
governments currently have a limited role in international treaty
negotiations. However, the federal government is now
reorganizing the process for additional state involvement. The
Utah International Trade Commission is statutorily charged with
promoting international trade with Utah businesses and
monitoring treaty negotiations while authorized to meet four
times a year. Legislation has been prepared that encourages
Congress to provide states more access to the treaty negotiation
process, and additional legislation is being discussed to increase
the number of Commission meetings and duties.
Manufacturing Incentives. Making significant capital
investments is difficult for businesses in the current economy.
The Legislature may consider providing a tax credit to existing
businesses whose capital investments expand operations within
the state and maintain or increase their existing Utah workforce.
Qualifying for Unemployment Insurance Benefits. How the
state defines "base period" for unemployment insurance
applicants directly impacts their eligibility to receive
unemployment insurance benefits. As a means to qualify for
federal stimulus monies, the Legislature may consider modifying
the definition of "base period" for an individual claiming
unemployment insurance benefits whose benefit year is effective
on or after January 2, 2011.
Social Security Offset. Current law provides that, for
individuals who are eligible to receive both Social Security and
unemployment compensation, the amount of unemployment
insurance benefit they receive is reduced, or offset, by 50 percent
of their Social Security benefit amount. The offset, if allowed to
lapse from law July 1, 2010, would then rise to 100 percent of
the Social Security benefit amount. The Legislature may consider
eliminating the Social Security offset, while maintaining revenue
neutrality by reducing the weekly benefit amount by $3.