1. PARSONS BEHLE & LATIMER BREAKFAST BRIEFING
2013 UTAH LEGISLATIVE PREVIEW
Mike Bailey
Shelly Cordon Teuscher
Parsons Behle & Latimer
January 25, 2013
4852-9307-2146 parsonsbehle.com

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 Introduce you to the Utah State
Legislature
 Alert you to important issues under
consideration
• 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
Goal of Today’s Presentation

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I. Utah Legislature 101
II. 2013 Session Preview
III. Protecting your Business by Playing
an Active Role
Please ask questions throughout
Order of Play

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 Lots of turnover, especially in the House
 Very few long-standing members in the
House
– Speaker Lockhart, elected 1998
 Senate relatively stable
– Senator Hillyard, elected 1984
– Senators Harper, Vickers, many others over
time have moved from the House to the
Senate
Composition of Legislature

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61
31
Utah House Republicans
Total
Serving
1st or 2nd
Terms

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 Large freshman and sophomore class will
change the dynamic
– Fresh approaches
– Issues considered in the past may be revisited
– Completely new dynamic
 Disparity between the tone of the House
and demeanor of the Senate will be
exaggerated
Relevance of Turnover

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 Republican team remains stable, except
for new deputy whip Rep. Ipson
 Democratic team has changed
– Rep. Seelig
– Rep. Cosgrove
– Rep. Chavez-Houck
– Rep. Briscoe
House Leadership

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 Republican team completely new
– Sen. Niederhauser
– Sen. Okerlund
– Sen. Adams
– Sen. Knudson
Senate Republican Leadership

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 Democratic team has changed too
– Sen. Davis
– Sen. Mayne
– Sen. Jones
– Sen. Robles
 Only one member not in leadership/late
appointee
Senate Democratic Leadership

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61
24
14
5
2013 House and Senate Composition
Republicans Republicans DemocratsDemocrats
House Senate

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 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 to
Nevada
Other Dynamics

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 Budget
 Education
 Guns
 Environmental Regulation
 Transportation
 Obamacare
 New Federalism
 The Sexy Stuff (always at the end)
2013 Legislative Session

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 State will have budget surplus
 State has at least $284 million in new
needs (new student growth, wildfires, etc.)
Budget

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 Federal actions have a huge effect on
Utah
 Budget surplus was to have been $300 –
400 million before the fiscal cliff deal
 With deal, somewhere between $105
million and $300 million – likely on the
lower end of that range
First Fiscal Cliff

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 Sequestration cuts pushed to the end of
March
 Sequestration impact could be $550
million
 What will happen?
Second Fiscal Cliff

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 Utah budgeting always very conservative
 Numerous awards for best-managed state
 Likely to respond to current uncertainty by
passing flat budget, waiting to spend
surplus until impact of federal decisions
are known
 Even some talk about passing budget with
5% reduction
Our Best Guess

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 Governor’s budget calls for $298 million
increase
 Federal uncertainty likely to affect funding
 Increased interest in accountability and
transparency
– Pushback from educators
Education

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 Guns already allowed in parking lots
 Disorderly conduct (Rep. Ray)
 No need for concealed weapons permit
(Rep. Mathis)
 Third-degree felony for federal official to
enforce federal gun laws within Utah
borders (Rep. Greene)
Guns in the Workplace

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 Gun rights fervor may spill over into the
workplace
– Open carry
– No employer restrictions allowed?
Guns in the Workplace

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 Bill to disband DEQ
 Business community will be activated
against it
 Protection of “delegated” state programs
Environmental Regulation

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 Many major projects have been completed
 Still funding shortfall, especially for
maintenance
 Interest in new funding sources
– Congestion pricing not ready for prime time
 Gas tax
– Index it for inflation?
 Sales tax on gasoline
Transportation

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 This is the time to make some important
decisions
 Will state run their own exchange?
– Feds say they will “work with Utah”
– Real flexibility unlikely
– Likely to be a federal exchange
 Medicaid expansion unlikely
Obamacare

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 Restore full sales tax on food?
Probably not
 Income tax increase for education?
Definitely not
 Severance tax changes being proposed by
Prosperity 2020? Maybe
 Increased exemption for personal property
tax for business? Maybe
Taxes? No, No, Maybe, Maybe

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 Increasing anger at federal government
 Continued push to get control of federal
lands
 Could go well beyond lands
– Federal executive orders don’t apply in Utah?
New Federalism

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 Move the prison?
– Perfect storm of low interest rates, low
construction 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

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 Ethics Reform
 Motorcycle Helmets
 Hair Braiding (Licensing, in general)
 Immigration
 Alcohol
 Mechanic’s Liens
 Water Rights
Other Sexy Issues

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 Get Involved
– Participate in the political process
– Educate yourself / Stay informed
 If you see an issue of concern, what can
you do about it?
– Build a coalition
– Contact your legislator (le.state.ut.us)
Protecting Your Business

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 We’re here to help – never be reluctant
to call
– About taxation …
– or guns in the workplace…
– or even hair braiding
Don’t Hesitate to Call

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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