The 2008 General Session of the Utah Legislature ended at midnight on Wednesday, March 5, 2008. Any bill that did not pass died and must be reintroduced next year if the sponsor wishes to continue pushing the issue. Bills that passed the legislature, and are not vetoed by the Governor, either become law on their effective date or on May 4, 2008, 60 days after the close of the legislative session.
Top List of Bills That Passed
#1 Third Substitute H.B. 359, Tax Changes, became the Omnibus Tax Bill, and combined several tax bills. The bill will increase the state portion of the sales tax from 4.65 to 4.70% on non-food items.
#2 First Substitute S.B. 81, Illegal Immigration, was a comprehensive immigration bill that will require many employers to use the federal e-verify system when they hire new employees. The Association was able to amend the bill with a delayed effective date of July 2009.
#3 Third Substitute S.B. 211, Alcoholic Beverage Control Amendments, this was another complex bill making major changes to Utahs alcoholic beverage laws. Unfortunately, the most controversial part of the bill requires that only state liquor stores will be able to sell flavored malt beverages after October 1, 2008. These beverages have been sold in private retail stores for many years.
#4 Second Substitute H.B. 133, Health System Reform, will create a legislative task force that will design a state strategic plan to address health-care reform. The task force is charged with addressing 16 action items by the end of the year.
#5 First Substitute H.B. 384, Employee Obligations Related to Workers Compensation, was a bill introduced at the Associations request. The bill addresses reductions in disability compensation under certain circumstances such as criminal or egregious behavior; it also addresses incarceration or unlawful employment related to permanent total disabilities.
#6 H.B. 171, Driving Privilege Card Amendments, prohibits a business from accepting a Utahs Driving Privilege Card as evidence of the legal age of the person when selling age restricted products such as alcohol. It also prohibits businesses from accepting the driving privilege card from accepting the card as proof of identification or residence for the purchase of certain precursor chemicals, controlled substance precursors, or firearms.
#7 H.B. 412, Below Cost Sales, the bill repeals Title 13, Chapter 5, Unfair Practices Act, that was sometime referred to as the 6 Percent Law, or Below Cost Sales Law.
#8 S.B. 176, Unemployment Insurance Contribution Rates Amendments, the bill amended the way social contribution rates are rounded to make them fairer for all businesses. It also adjusted the adequate trust fund reserve levels from the current 17 to 19 months of benefits, to 18 to 24 months. These changes will help stabilize future tax rate fluctuations and soften tax rate increases during recessionary periods.
#9 Second Substitute H.B. 77, Personal Property Tax Amendments, creates two depreciation schedules for certain classes of taxable tangible personal property and allow businesses to elect certain taxable tangible personal property as expensed personal property for valuation and taxing purposes. It prohibits a county from requiring a person to itemize the persons expensed personal property and exempts certain personal property with a residual value of 15 percent or less from taxation.
#10 H.B. 206, Tax Amendments, was a very complex bill bringing the state of Utah back into compliance with the national Streamlined Sales Tax Agreement. The main thing that has held up Utah, and several other states, from being fully compliant has been the SST Agreements requirement to calculate the sales tax rate based on the point of delivery of the product or service. However, late last year the Governing Board of the Streamlined Sales Tax Project amended the Agreement to allows retailers to determine the sales tax rate on intrastate sales at point of sale and rates on interstate sales to be based on point of delivery.
#11 Fifth Substitute S.B. 245, Funding
Relating to Airports, Highways and Public Transit, was another omnibus bill
covering many areas to help fund our states infrastructure such as airports,
highways and public transit systems.
Specifically for our Association the part that will have potential
impact deals with the provisions that allow counties of the second class
(such as Utah County) to impose a local option sales and use tax of up to
one-tenth of one percent to fund these types of projects. It is anticipated that Utah County will
impose this tax.
#12 S.B. 159, Workers Compensation Amendments, deals with companies who try to game the system by obtaining workers compensation coverage waivers by classifying employees as independent contractors when in fact the employees do not meet the requirements of an independent contractor.
#13 First Substitute H.B. 119, Controlled Substance Database Amendments, creates a pilot program beginning on July 1, 2008, for pharmacies to beginning reporting sales of controlled substances real-time to the Division of Occupational and Professional Licensings controlled substance database.
#14 H.B. 258, Medicaid Drug Utilization Amendments, prohibits the inclusion of immunosuppressive drugs used to prevent transplanted organ rejection from inclusion on the State Health Departments preferred drug list, and generic substitution requirements of the State Medicaid Program.
#15 H.B. 361, Anti-Seizure Drug Notification, requires a pharmacist who substitutes a drug product equivalent for an epilepsy drug to notify the prescribing practitioner prior to the substitution when the prescription has been written as a dispense as written script.
#16 H.B. 35, Motor and Special Fuel Tax Amendments, allows the Tax Commission to refund or credit motor or special fuel tax paid on fuel that is mistakenly mixed with dyed fuel and is required to be re-refined.
#17 First Substitute H.B. 92, Garnishment Amendments, allows a person wrongfully served with a writ of garnishment to ask the court for redress from the plaintiff and provides guidelines for the court to determine if the plaintiff was diligent in determining the identity and location of the judgment debtor.
#18 H.B. 303, Phosphorus Limit in Dishwashing Detergent, prohibits the sale of a household dishwashing detergent that contains 0.5 percent or more phosphorus by weight after July 1, 2010. The Association was able to get the delayed effective date and detergent manufacturers have indicated they will be in compliance with this requirement prior to that date.
Top List of Bills That Did Not Passed
#1 H.B. 468, Responsibility for Access Devices and Security Breaches, created certain restrictions on the information a businesses could retain that accepts credit or debit cards, and would require the business to pay costs of security breaches under certain circumstances.
# 2 First Substitute H.B. 308, Credit Card or Debit Card Contract Act was introduced at our request. The bill required depository institutions and credit card companies to provide all terms, conditions and fee schedules to all parties entering into contracts or agreements dealing with credit and debit card contracts.
#3 H.B. 114, Minimum Wage Provisions, would have increased the state minimum wage to at least $7.25 per hour with an annual inflation adjustment effective July 1, 2008.
#4 H.B. 100, Amendments to Prescribing Schedule II Drugs, would have changed the maximum supply of a controlled substance that may be prescribed at one time from a 30 day supply to a 90 day supply, and removed the authority to distribute three different post dated prescriptions for the same controlled substance.
#5 H.B. 267, Controlled Substances Amendments Suda Controls, would have established ephedrine, pseudoephedrine, norpseudoephedrine, and phenylpropanolamine as Schedule V controlled substances. So common cough, cold and allergy medications containing these ingredients would have to be sold from a pharmacy, and reported to the States controlled substance database, but would not require a prescription.
#6 First Substitute H.B. 183, Sales and Use Tax Amendments, would have moved Utah to one uniform statewide sales tax rate of 6.8 perecent on non-foods, similar to the uniform statewide sales tax rate of 3.0 percent on food and food ingredients.
#7 H.B. 313, Motor Fuel and Special Fuel Tax Indexing for Inflation, would have adjusted the tax rate on motor and special fuels every two years based on the actual percentage change in the consumer price index over the previous two calendar years.
#8 Second Substitute H.B. 355, Tax Changes and Appropriations for Preventive Health Activities, would have increased the tax on cigarettes 50 cents per pack, from 69.5 cents to 1.195 per pack. The increased revenue would then be offset by reducing the state sale tax rate on both food and non-food from 4.65 to 4.60 percent.
#9 First Substitute H.B. 391, Public School Funding, the bill would have replaced the revenue from property taxes currently used to fund public schools with revenue from sales tax. The sales tax rate would have been increased by 1.65 percent to make this change.
#10 H.B. 139, Wireless Internet Access Requirements, would have made it a violation of Utahs Consumer Sales Practices Act to sell a device capable of wirelessly accessing the Internet without labeling the device to reflect that fact. It would have also provided a civil penalty against any person who did not attempt to restrict access to a minor from accesses material harmful to minors on a public wireless network.
#11 H.B. 89, Antidiscrimination Act Amendments, would have included sexual orientation and gender identity as a prohibited basis for discrimination in employment consistent with the Utah Antidiscrimination Act. It would have also prohibited quotas or preferences on the basis of sexual orientation or gender identity.
#12 First Substitute S.B. 166, Nondiscrimination Amendments, would have included military service as a prohibited basis for discrimination in the employment consistent with the Utah Antidiscrimination Act. It also included civil penalties for violation of the Utah Antidiscrimination Act.
#13 S.B. 67, Protection of Constitutionally Guaranteed Activities in Certain Private Venues, would have prohibited employers from creating or enforcing policies that prohibit the storage of firearms in a motor vehicle parked on an employers property if the employee is legally entitled to possess and transport the firearm and met other requirements.
The bills we followed are listed below. The Utah Legislature's web site is located at http://www.le.state.ut.us/. If you have questions about any issues or need additional information, please do not hesitate to send an email to Jim Olsen at jolsen@utfood.com, or Dave Davis at ddavis@utfood.com or call the Association office at (801) 973-9517.
By clicking on the Bill Number or Title you will link
to the bills legislative page where you can view the bill and detailed
information on its amendments, fiscal note, and status.
H.B. 21,
"Employment Security Act Amendments",
sponsored by Representative Curtis Oda, R-Clearfield. The bill clarifies
that a claimant for unemployment benefits is not required to personally report
at an employment office as a condition of ongoing eligibility to receive
benefits; provides for the waiver of certain filing requirements for
unemployment compensation benefits if a disaster is declared by the President
of the United States or the governor.
Association's Position: Monitor
Bill's Status: Governor Signed March 14, 2008
Passed
the Senate on a vote of 29-0
Passed Business and Labor Standing Committee
Passed House on a vote of 70-0
Passed Workforce Services and Community and Economic Development
Interim Committee
H.B. 64,
"Disclosure of Information by the Department of Workforce Services",
sponsored by Representative Paul Neuenschwander, R-Bountiful. The bill authorizes
the Unemployment Insurance Division to disclose information to the Division of
Occupations and Professional Licensing for certain purposes; updates language
related to industry codes or classifications; and makes technical and
conforming changes.
Association's Position: Monitor
Bill's Status: Governor Signed March 14, 2008
Passed Senate on a vote of 27-0
Passed Senate Workforce Services & Community & Economic Development
Committee
Pass House on a vote of 68-0
Passed Business and Labor Interim Committee
H.B. 89,
"Antidiscrimination Act Amendments",
sponsored by Representative Chris Johnson, D-Salt Lake City. The bill defines
"gender identity" and "sexual orientation";
includes sexual orientation and gender identity
as a prohibited basis for discrimination in employment in a manner consistent
with the Utah Antidiscrimination Act; addresses advertisements; prohibits
quotas or preferences on the basis of sexual orientation or gender identity;
and makes technical and conforming amendments.
Association's Position: Oppose
Bills Status: Died in House Rules Committee
H.B. 98, "Utah
Employment Verification Act", sponsored by Representative Glenn Donnelson,
R-Ogden. The bill enacts the Utah Employment Verification Act
including:
defining terms; addressing interpretation of
the act; and providing for severability;
requires public employer participation in the
federal employment verification program; and requires recordkeeping by public
employers of documentation required under the
federal employment verification program.
Association's Position: Monitor
Bill's Status: Died in Senate Rules Committee
Passed House on a vote of 54-16
Passed House Public Utilities and Technology Standing Committee
H.B. 114,
"Minimum Wage Provisions", sponsored by
Representative Neil Hansen, D-Ogden. The bill defines increases
the minimum wage to at least $7.25 per hour with an annual inflation
adjustment; addresses review of minimum wages by the Labor Commission; deletes
the exemption for persons covered by the Federal Fair Labor Standards Act.
Association's Position: Oppose
Bill's Status: Died in House Rules Committee
H.B. 257,
"Employee Verification", sponsored by Representative Chris Herrod,
R-Provo. The bill requires employee eligibility verification by
an employer under a federal employee verification program of a newly hired
employee's employment eligibility as a condition for receiving certain economic
incentives and procurement contracts including: defining terms; requiring
participation; and providing for penalties.
Association's Position: Monitor
Bill's Status: Died in Senate Rules Committee
Passed Senate Business and Labor Standing Committee
Passed House on a vote of 55-13
Passed House Workforce Services, Community Economic Development Standing
Committee
H.B. 334,
"Labor Commission - Review of Administrative Decisions",
sponsored by Representative Neil Hansen, D-Ogden. The bill requires
that the commissioner or Appeals Board take action on appeal within a set time;
and makes technical changes.
Association's Position: Monitor
Bill's Status: Died in House Rules Committee
First Substitute H.B. 384, "Employee Obligations Related to Workers' Compensation", sponsored by Representative Michael Morley, R-Spanish Fork. The bill defines terms; addresses reductions in disability compensation under certain circumstances; provides for adjudication; addresses application of certain provisions to a local governmental entity or state institution of higher education; addresses the scope of the provisions; provides for rulemaking; addresses incarceration or unlawful employment related to permanent total disabilities