Legal Matters: Neither snow nor rain nor heat nor gloom of night – or even a pandemic

An update of the 2021 legislative session

Like our reliable postal workers, the Utah Legislature was determined to weather the pandemic storm and delivered a full 45-day general session in 2021. The same cannot be said of various other states that have seen postponements or mid-session recesses.

The Legislature conducted much of its work remotely, while also providing a socially distanced opportunity for legislators, staff and the public to participate in person. Legislative committee meetings were conducted both in person and via Zoom technology. House and Senate floor sessions allowed legislators to attend and vote in person or remotely. Health protocols relaxed as the session progressed. For instance, the House erected, and then later removed, Plexiglas barriers between desks on the House floor. Those needing to communicate with legislators and legislative staff mostly did so through Zoom meetings, text messaging, email and telephone conferences. Some legislators did conduct in-person meetings.

The session wasn’t without some problems. A couple of House members contracted the coronavirus and were hospitalized — one member was in the ICU for most of the session. At least a couple of senators were quarantined for a period of time. Notwithstanding obstacles, the Legislature completed its full 45- day session, passing 502 bills and resolutions out of 774 introduced. The bills passed included a $23.5 billion budget — including $475 million in new money for education — and bonding for new infrastructure, including money to double-track FrontRunner.

Prior sessions focused on “tax reform”, however, the 2021 general session can be considered the session of “tax relief.” Approximately $80 million was “reserved” during the 2020 general session for “tax relief.” With a better understanding of how the pandemic was affecting state coffers, the Legislature passed a package of tax relief measures that totaled approximately $100 million. These bills included HB86, “Social Security Tax Amendments,” providing a means-tested, nonrefundable tax credit for certain taxpayers receiving Social Security income; 2nd Sub. SB11, “Military Retirement Income Tax Amendments,” providing a nonrefundable tax credit for those receiving military retirement income; and SB153, “Utah Personal Exemption Amendments,” amending Utah’s personal exemption provisions to claw back a portion of the benefits lost due to the 2017 federal tax legislation. A latefiled attempt to exempt the proceeds received from PPP loans did not pass.

Other significant business- related legislation includes:

• 2nd Sub. SB86, “Amendments to the Price Controls During Emergencies Act,” allows vendors to recoup all of their costs without violating the “excessive price” provisions.

• 1st Sub. HB217, “Regulatory Sandbox Program Amendments,” allows startup businesses to apply through the Governor’s Office of Economic Development to participate in a program that could remove some regulatory roadblocks that might impact their ability to do business in the state.

• 2nd Sub. HB356, “Rural Economic Development Tax Increment Financing,” provides for tax increment financing for new commercial projects in rural areas.

• 4th Sub. HB294, “Pandemic Emergency Powers Amendments,” provides for the termination of emergency powers and certain public health orders related to COVID- 19 upon reaching certain thresholds of positivity rates, vaccination and other criteria.

• 4th Sub. SB164, “Utah Housing Affordability Amendments,” deals with Utah’s affordable housing crisis.

• 1st Sub. SB65, “Community Reinvestment Agency Amendments,” amends the Limited Purpose Local Government Entities – Community Reinvestment Agency Act.

• HB348, “Economic Development Amendments,” renames GOED to the Governor’s Office of Economic Opportunity and reorganizes some of the duties and operations of this office.

A watchful eye should remain on certain bills that didn’t pass that may return in the future. As introduced, SB208 would have prohibited most private employers from mandating vaccines — or any other medical procedure — potentially, including “procedures” such as drug testing. Sen. Kirk Cullimore had two important bills that did not pass. SB200 would have enacted a “business-friendly” version of California’s consumer privacy laws — the bill’s last draft was similar to the law passed by Virginia in March. In addition, SB46 would have further modified Utah’s laws concerning noncompete agreements. Finally, Sen. Kitchen introduced an amendment to the Utah Antidiscrimination Act that would have provided protection for “immutable traits and hairstyles historically associated with race.”

Gary R. Thorup is a shareholder at the law firm Dentons Durham Jones & Pinegar in Salt Lake City. He has practiced state and local tax law and has lobbied the Utah Legislature on a variety of tax and non-tax issues for almost 40 years.