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Utah Nonprofits Association Educational Conference




  GET A SEAT AT THE TABLE:
  UTAH’S LEGISLATURE AND HOW IT
  IMPACTS NONPROFIT ORGANIZATIONS

  J. Michael Bailey
  October 11, 2012
  Utah Cultural Celebration Center
  West Valley City, Utah
                         4836-8213-6847
Goals of Today’s Presentation
 Educate you
 Alert you to issues that may affect your
  nonprofit
 Arm you for discussions at backyard
  barbecues
  •   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



                                                                                                      2
Outline of Presentation
I. Utah Legislature 101
II. 2012 Session Review
III. Protecting your Nonprofit by Playing
     an Active Role

Please ask questions throughout


                                            3
Composition of Legislature

Republicans (80)   Democrats (24)




                                    4
It was a Very Busy Session

0          200            400            600      800


                 Bills that were numbered (891)



          Bills that were introduced (764)



    Bills that passed (478)



                                                        5
It was a Very Busy Session
 The Governor vetoed 2 bills
  (HB363 (Sex education) and HB414)
 72% of the bills were not written & introduced
  until after the first day
 The legislators admitted in the press that they
  cannot keep track of it all (especially at the
  end)


                                                    6
Comparing Bill Passage Over Time
           2011                        2012

     782                         764


                  504                         478




    Bills        Bills          Bills        Bills
    Introduced   Passed (62%)   Introduced   Passed (64%)

                                                            7
2012 Bill Passage By The Numbers

Republican -
 sponsored
  bills that
   passed                  Democrat -
    (414)                  sponsored
                            bills that
                             passed
                               (64)




                                         8
2012 Bill Passage By The Numbers


     78%


                 56%         56%        55%




    Senate      Senate      House       House
    Republicans Democrats   Republicans Democrats

                                                    9
2012 Bill Passage By The Numbers

 Most Prolific Legislators
  – Republican
     Senator Curt Bramble (20 out of 26 for 76.9%)
  – Democrat
     Senator Ben McAdams (9 out of 15 for 60%)




                                                     10
It All Starts With A Budget
 Budget was $13 billion
 Had $440 million more to spend
  – Funded growth in education
  – State employees - 1% raise
  – $11 million into rainy day fund
  – Did not borrow for roads



                                      11
Session’s Broad Themes That
            Affect Nonprofits

   Employment
   E-Verify
   Local Government
   Health Insurance Mandates
   “The Loud Issues”




                                    12
Employment Initiatives That Passed

 Employer premium reduction for wellness
  programs (HB144S02 – Dunnigan)
 Unemployment insurance top rate reduced
  2% (SB129 – Bramble)




                                            13
Employment Initiatives That Failed

 Immigration (HB300 – Sandstrom/Herrod)
  – Would have repealed the guest worker
    provisions enacted last year
 Job Discrimination (SB51 – McAdams)
  – Would have approved a statewide prohibition
    on job discrimination based on sexual
    orientation
 “Open Carry of Firearms Bill ” did not pass
  (HB49S03 – Ray)
                                                  14
E-Verify
 Governor Herbert wanted teeth put in the law
  – Disappointed it didn’t happen
  – Bill would have:
     • Suspended business licenses for violations
     • Applied to all businesses
     • Applied to hiring of independent contractors
 Legislature will pursue it next year


                                                      15
Local Government
 Legislature has mixed feelings about local
  control but mostly let cities have the reins
  – Allowed local anti-idling ordinances
  – Did not prohibit cities from regulating
    electronic billboards
  – Did create state ethics committee to hear
    local ethics issues



                                                 16
Health Insurance Mandates
 Health Insurance Mandates
  – Important because if passed before
    2014, become set in stone for state under
    federal health care reform
  – Many bills this session
  – Only autism pilot project passed
    • To serve 350 children at a cost of $30,000
      annually per child
    • “Back-door mandate”
                                                   17
The Loud Issues
 Tanning Beds
  – Not for minors
 Hookah and e-cigarettes
  – Outlaw them
 Sex Education
  – Don’t ask, don’t tell



                              18
Protecting Your Nonprofit
 Employ the Chicago Rule: “Get involved early
  and often”
 Play Offense
 Play Defense
 Get Involved or Hire Someone to be Involved
  (during the interim process, not just the session)
 Famous old saying: “You’re either at the table or
  you’re on the menu”

                                                       19
Play Offense
 38-15-1 is the Lobbyist Rule of Thumb:
  – 38 votes in the House of Representatives
  – 15 votes in the Senate
  – 1 “vote” from the Governor




                                               20
Disadvantages of Playing Offense


 It costs more
 The odds are longer (not as favorable)




                                           21
Advantages Of Playing Offense
 Instead of just defending against the bad you
  can achieve great things
 The specific law or practice that has
  impeded your nonprofit goes away
 You never know the ways in which the
  government will help you until you ask



                                                  22
Steps for a Good Offense
 Analyze what assistance your nonprofit
  needs from the government
 Craft a solution that negatively impacts as
  few other entities as possible
 “Shoot for the stars” Think big. You never
  know what you can get passed until you try
  (clean-up standards bill)
 Sometimes “the best defense is a good
  offense”
                                                23
Play Defense
 Lobbyist Ancient Proverb:

     “There is only one way to pass a bill
          but many ways to kill it.”




                                             24
Arrows in the Defensive Quiver
 Kill the bill in interim stage
 Kill the bill by lobbying the agencies that are
  recommending the bill
 Kill the bill by lobbying the agencies that are
  affected by the bill
 Kill the bill in the drafting stage
 Kill the bill in committee
 Kill the bill on the floor
                                                    25
And When All Else Fails…


 Amend, amend, amend
 Sometimes a really good amendment actually
  kills a bill




                                               26
Get a Seat at the Table
 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)
  – Contact us…We will help

                                                 27
Other Ways to Get a Seat at the Table

 Find Friends
  –   Who do your board members know?
  –   Who do your staff members know?
  –   Who might be ready to help you?
  –   Do you have leverage or pressure points?
 Make Friends
  – Who should your board members get to know?
  – Who should your staff members get to know?
  – What other members of the UNA will help?
 Marketing/Messaging
                                                 28
Outside Help to Protect Your Nonprofit

   To strategize with clients
   To monitor the Legislative Session
   To draft legislation
   To help get bills passed
   To help get bills killed
   To seek appropriations
   To help with incentive packages
   To help clients get whatever they need to protect
    their nonprofits (no request is too difficult)
What About 2013?
 Legislature has interim study committees that
  meet monthly
 Master study list gives some idea of issues
  to be studied
 What can we expect to see in 2013?




                                                  30
New Faces are Coming in 2013
 Numerous legislators ran for or are running for
  other seats
  –   Rep. Chris Herrod (US Senate)
  –   Rep. Stephen Sandstrom (US House-4th District)
  –   Rep. Ken Sumsion (Utah Governor)
  –   Rep. John Dougall (Auditor)
  –   Sen. Ross Romero (SL County Mayor)
  –   Sen. Ben McAdams (SL County Mayor) (didn’t
      have to resign or choose which race to enter)
                                                       31
New Faces are Coming in 2013
 Redistricting just occurred
  – Some legislators lost at convention
 Retirements
  – Senate President Michael Waddoups
  – House Minority Leader David Litvack
  – Senate Minority Whip Karen Morgan
  – Rep. Todd Kiser


                                          32
Study Issues That May
            Affect Nonprofits
 Study ways to incentivize wellness
 Third-hand smoke in the workplace
 Employment Discrimination
 Subcontractors




                                       33
More Study Topics
 Government Competition with Private Sector
 Coal and other severance taxes
  – Impact on utility rates
 Other Issues?




                                               34
Task Forces
 Economic Development
  – To include air quality issues
 Health System Reform




                                    35
Don’t Hesitate to Call
 We’re here to help – never be reluctant to call

  – About employment issues…
  – or immigration…
  – or any issue relating to nonprofits




                                                    36
Thank you


 Mike Bailey
  direct: (801) 536-6777
  cell: (801) 201-0115
  email: mbailey@parsonsbehle.com
  twitter: @utahcounselor



                                    37

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Get a Seat at the Table: Utah's Legislature and How it Impacts Nonprofit Organizations

  • 1. Utah Nonprofits Association Educational Conference GET A SEAT AT THE TABLE: UTAH’S LEGISLATURE AND HOW IT IMPACTS NONPROFIT ORGANIZATIONS J. Michael Bailey October 11, 2012 Utah Cultural Celebration Center West Valley City, Utah 4836-8213-6847
  • 2. Goals of Today’s Presentation  Educate you  Alert you to issues that may affect your nonprofit  Arm you for discussions at backyard barbecues • 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 2
  • 3. Outline of Presentation I. Utah Legislature 101 II. 2012 Session Review III. Protecting your Nonprofit by Playing an Active Role Please ask questions throughout 3
  • 5. It was a Very Busy Session 0 200 400 600 800 Bills that were numbered (891) Bills that were introduced (764) Bills that passed (478) 5
  • 6. It was a Very Busy Session  The Governor vetoed 2 bills (HB363 (Sex education) and HB414)  72% of the bills were not written & introduced until after the first day  The legislators admitted in the press that they cannot keep track of it all (especially at the end) 6
  • 7. Comparing Bill Passage Over Time 2011 2012 782 764 504 478 Bills Bills Bills Bills Introduced Passed (62%) Introduced Passed (64%) 7
  • 8. 2012 Bill Passage By The Numbers Republican - sponsored bills that passed Democrat - (414) sponsored bills that passed (64) 8
  • 9. 2012 Bill Passage By The Numbers 78% 56% 56% 55% Senate Senate House House Republicans Democrats Republicans Democrats 9
  • 10. 2012 Bill Passage By The Numbers  Most Prolific Legislators – Republican Senator Curt Bramble (20 out of 26 for 76.9%) – Democrat Senator Ben McAdams (9 out of 15 for 60%) 10
  • 11. It All Starts With A Budget  Budget was $13 billion  Had $440 million more to spend – Funded growth in education – State employees - 1% raise – $11 million into rainy day fund – Did not borrow for roads 11
  • 12. Session’s Broad Themes That Affect Nonprofits  Employment  E-Verify  Local Government  Health Insurance Mandates  “The Loud Issues” 12
  • 13. Employment Initiatives That Passed  Employer premium reduction for wellness programs (HB144S02 – Dunnigan)  Unemployment insurance top rate reduced 2% (SB129 – Bramble) 13
  • 14. Employment Initiatives That Failed  Immigration (HB300 – Sandstrom/Herrod) – Would have repealed the guest worker provisions enacted last year  Job Discrimination (SB51 – McAdams) – Would have approved a statewide prohibition on job discrimination based on sexual orientation  “Open Carry of Firearms Bill ” did not pass (HB49S03 – Ray) 14
  • 15. E-Verify  Governor Herbert wanted teeth put in the law – Disappointed it didn’t happen – Bill would have: • Suspended business licenses for violations • Applied to all businesses • Applied to hiring of independent contractors  Legislature will pursue it next year 15
  • 16. Local Government  Legislature has mixed feelings about local control but mostly let cities have the reins – Allowed local anti-idling ordinances – Did not prohibit cities from regulating electronic billboards – Did create state ethics committee to hear local ethics issues 16
  • 17. Health Insurance Mandates  Health Insurance Mandates – Important because if passed before 2014, become set in stone for state under federal health care reform – Many bills this session – Only autism pilot project passed • To serve 350 children at a cost of $30,000 annually per child • “Back-door mandate” 17
  • 18. The Loud Issues  Tanning Beds – Not for minors  Hookah and e-cigarettes – Outlaw them  Sex Education – Don’t ask, don’t tell 18
  • 19. Protecting Your Nonprofit  Employ the Chicago Rule: “Get involved early and often”  Play Offense  Play Defense  Get Involved or Hire Someone to be Involved (during the interim process, not just the session)  Famous old saying: “You’re either at the table or you’re on the menu” 19
  • 20. Play Offense  38-15-1 is the Lobbyist Rule of Thumb: – 38 votes in the House of Representatives – 15 votes in the Senate – 1 “vote” from the Governor 20
  • 21. Disadvantages of Playing Offense  It costs more  The odds are longer (not as favorable) 21
  • 22. Advantages Of Playing Offense  Instead of just defending against the bad you can achieve great things  The specific law or practice that has impeded your nonprofit goes away  You never know the ways in which the government will help you until you ask 22
  • 23. Steps for a Good Offense  Analyze what assistance your nonprofit needs from the government  Craft a solution that negatively impacts as few other entities as possible  “Shoot for the stars” Think big. You never know what you can get passed until you try (clean-up standards bill)  Sometimes “the best defense is a good offense” 23
  • 24. Play Defense  Lobbyist Ancient Proverb: “There is only one way to pass a bill but many ways to kill it.” 24
  • 25. Arrows in the Defensive Quiver  Kill the bill in interim stage  Kill the bill by lobbying the agencies that are recommending the bill  Kill the bill by lobbying the agencies that are affected by the bill  Kill the bill in the drafting stage  Kill the bill in committee  Kill the bill on the floor 25
  • 26. And When All Else Fails…  Amend, amend, amend  Sometimes a really good amendment actually kills a bill 26
  • 27. Get a Seat at the Table  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) – Contact us…We will help 27
  • 28. Other Ways to Get a Seat at the Table  Find Friends – Who do your board members know? – Who do your staff members know? – Who might be ready to help you? – Do you have leverage or pressure points?  Make Friends – Who should your board members get to know? – Who should your staff members get to know? – What other members of the UNA will help?  Marketing/Messaging 28
  • 29. Outside Help to Protect Your Nonprofit  To strategize with clients  To monitor the Legislative Session  To draft legislation  To help get bills passed  To help get bills killed  To seek appropriations  To help with incentive packages  To help clients get whatever they need to protect their nonprofits (no request is too difficult)
  • 30. What About 2013?  Legislature has interim study committees that meet monthly  Master study list gives some idea of issues to be studied  What can we expect to see in 2013? 30
  • 31. New Faces are Coming in 2013  Numerous legislators ran for or are running for other seats – Rep. Chris Herrod (US Senate) – Rep. Stephen Sandstrom (US House-4th District) – Rep. Ken Sumsion (Utah Governor) – Rep. John Dougall (Auditor) – Sen. Ross Romero (SL County Mayor) – Sen. Ben McAdams (SL County Mayor) (didn’t have to resign or choose which race to enter) 31
  • 32. New Faces are Coming in 2013  Redistricting just occurred – Some legislators lost at convention  Retirements – Senate President Michael Waddoups – House Minority Leader David Litvack – Senate Minority Whip Karen Morgan – Rep. Todd Kiser 32
  • 33. Study Issues That May Affect Nonprofits  Study ways to incentivize wellness  Third-hand smoke in the workplace  Employment Discrimination  Subcontractors 33
  • 34. More Study Topics  Government Competition with Private Sector  Coal and other severance taxes – Impact on utility rates  Other Issues? 34
  • 35. Task Forces  Economic Development – To include air quality issues  Health System Reform 35
  • 36. Don’t Hesitate to Call  We’re here to help – never be reluctant to call – About employment issues… – or immigration… – or any issue relating to nonprofits 36
  • 37. Thank you  Mike Bailey direct: (801) 536-6777 cell: (801) 201-0115 email: mbailey@parsonsbehle.com twitter: @utahcounselor 37