The summary provides a high-level overview of the key topics and outcomes from the 2010 Utah General Legislative Session in 3 sentences: The Legislature was able to balance the budget without tax increases by reducing spending, increasing the tobacco user fee, and using $209 million from the rainy day fund. They also passed significant ethics reform legislation and supported education funding. Several other bills related to health care, transportation, and business issues were also addressed as outlined in the document.

1. S A L T L A K E C H A M B E R M A R C H 1 2 , 2 0 1 0
2010 Legislative Session Recap
The 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.
Budget
The 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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Education
Our 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.
Ethics
The 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 Reform
The 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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Downtown
In 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.
Mayor Becker announces plans for EOC School District Capital Outlay Equalization The future of the North Temple Viaduct
State Pension/Retirement System Reform
The 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.
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5. S A L T L A K E C H A M B E R
Priority A
Education
HB 1 – Newbold Minimum School Program Base Budget PASSED
HB 4 – Newbold Current School Year Supplemental Minimum School Program Budget Adjustments PASSED
SB 1 – Hillyard State Agency and Higher Education Base Budget PASSED
SB 2 – Stephenson Minimum School Program Budget Amendments PASSED
SB 175 – McAdams School District Capital Outlay Equalization Amendments PASSED
Ethics
HB 124 – Cosgrove Campaign Funds Expenditure Restrictions PASSED
HB 267 – Garn Lobbyist Disclosure and Regulation Act Amendments PASSED
HB 270 – Hughes Financial Disclosure and Conflict of Interest Amendments PASSED
HJR 14 – Hughes Joint Rules Resolution on Financial Disclosures PASSED
HJR 15 – D. Clark Joint Resolution on Legislative Ethics Commission PASSED
SB 136 – Valentine Open and Public Meetings Revisions Related to Review of Ethics Complaints PASSED
SB 138 – Valentine Grama Revisions Related to Review of Ethics Complaints PASSED
SJR 3 – Valentine Joint Resolution on Ethics Complaint Procedures PASSED
SB 275 – Stephenson Removing Signature from Initiative and Referendum Petition PASSED
Health Care
HB 294 – D. Clark Health System Reform Amendments PASSED
HCR 8 – D. Clark Concurrent Resolution on Federal Health Care Reform PASSED
SB 145 – Adams Medical Malpractice Amendments PASSED
State Budget
HB 3 – Bigelow Appropriations Adjustments PASSED
HB 196 – Ray Tobacco Tax Revisions PASSED
SB 259 – Christensen Amendments to Tobacco Tax PASSED
Transportation
SB 215 – Niederhauser Highway Project Funding - Salt Lake County PASSED
Priority B
Business Regulation
HB 18 – Mascaro Unemployment Insurance Amendments PASSED
Economic Development
SB 73 – Bramble Sales and Use Tax Exemption Relating to Aircraft PASSED
Energy
HB 70 – Draxler Certification of Retrofit Compressed Natural Gas Vehicles PASSED
Health Care
SB 273 – Hillyard Hospital Assessments PASSED
Retirement
SB 42 – Liljenquist Retirement Eligibility Modifications
SB 43 – Liljenquist Post-retirement Employment Amendments PASSED
SB 63 – Liljenquist New Public Employees' Tier II Contributory Retirement Act PASSED
SB 94 – Liljenquist Supplemental Benefit Amendments for Noncontributory Public Employees
SB 171 – Liljenquist Higher Education Retirement Amendments PASSED
SB 240 – Liljenquist Retirement Participation Amendments PASSED
Transportation
HB 438 – Lockhart Transportation Modifications PASSED
Priority C
Business Regulation
HB 15 – Dunnigan Deferred Deposit Lending Amendments PASSED
HB 17 – Mascaro Amendments to Programs for People with Disabilities PASSED
HB 23 – Beck Workplace Drug and Alcohol Testing PASSED
HB 43 – Mascaro Unemployment Compensation Amendments PASSED
HB 45 – Morley State Construction Code Adoption PASSED
HB 53 – Wilcox Foreclosure Rescue and Loan Modification Amendments PASSED
HB 139 – Oda Emergency and Disaster Management Amendments PASSED
HB 289 – Oda Judicial Nominating Commission Amendments PASSED
HB 307 – Hughes General County Powers Amendments PASSED
HCR 5 – Daw Concurrent Resolution Recognizing the 100th Anniversary of the Boy Scouts of America PASSED
SB 26 – Urquhart Utah E-Commerce Integrity Act PASSED
SB 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 Development
HB 24 – Wallis Economic Development Incentives Act Amendments PASSED
HB 118 – Harper Economic Development Incentives Modifications PASSED
SB 51 – Hillyard Bioprospecting PASSED
SB 123 – Hillyard Motion Picture Incentive Fund Amendments PASSED
SB 124 – Stevenson Military Installation Development Authority Modifications PASSED
Education
HB 166 – Dougall Reductions to Education Mandates PASSED
SB 16 – Stephenson Utah Performance Assessment System for Students (U-PASS) Amendments PASSED
SB 95 – Niederhauser Utah Educational Savings Plan Amendments PASSED
SB 132 – Valentine Higher Education Scholarship Amendments PASSED
Energy
HB 192 – Watkins Renewable Energy - Methane Gas PASSED
HB 228 – Barrus Renewable Energy Source Amendments PASSED
HJR 5 – Moss Joint Resolution on Clean Air PASSED
SB 47 – Van Tassell Electrical Utility Amendments - Efficiency and Conservation Tariff PASSED
SB 104 – Urquhart Renewable Energy Modifications PASSED
SB 242 – Van Tassell Economic Development Incentives for Alternative Energy Projects PASSED
Health Care
HB 20 – Dunnigan Amendments to Health Insurance Coverage in State Contracts PASSED
HB 25 – Newbold Health Reform - Administrative Simplification PASSED
HB 52 – Newbold Health Reform - Uniform Electronic Standards - Insurance Information PASSED
HB 71 – Ray Nicotine Product Restrictions
HB 88 – Newbold Electronic Cigarette Restrictions PASSED
HB 206 – Ray Ban on Sale of Smoking Paraphernalia to Minors PASSED
HB 408 – Last Hospital Claims Management PASSED
HB 421 – Last Medical Financial Records Amendments PASSED
HB 459 – D. Clark Health Amendments PASSED
HJR 11 – Morley Joint Resolution Regarding Federal Health Insurance Reform PASSED
HJR 27 – Newbold Authentic Charity Healthcare Joint Resolution PASSED
SB 208 – Okerlund Jury Amendments
State Budget
HB 49 – Kiser Amendments Related to Tax, Fee, or Charge Administered by the State Tax Commission PASSED
HB 464 – Dougall Family Health Services RFPs - Tobacco Settlement Funds PASSED
Transportation
SB 272 – Stevenson Amendments to Transportation Provisions PASSED
Oppose
HB 85 – Seegmiller Responsible Development of Nuclear Power Generation RULES
HB 90 – King Income Tax Amendments RULES
HB 227 – Sandstrom Licensing Eligibility BOARD
HB 203 – Watkins Repeal of Sales and Use Tax Exemption Relating to Mining RULES
HB 428 – Greenwood Nonresident Tuition Amendments RULES
SB 27 – Hillyard Sales and Use Tax Definition of Tangible Personal Property RULES
SB 115 – Robles Unemployment Insurance Revisions FAILED
SB 151 – Bramble Collection, Remittance, and Retention of Certain Taxes, Fees, or Charges RULES
SB 251 – Buttars Verification of Employment Eligibility PASSED*
*The Chamber worked to moderate this bill and does not support this legislation.
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