As the 2023 legislative sessions came to a close, the old adage, “it’s a marathon, not a sprint” was often heard on Capitol Hill. In this year’s session, a more appropriate description is probably that it was multiple sprints inside a marathon. This year saw a number of firsts:

• The first time in at least two decades that so many bills moved through the process. The Senate numbered 300 bills and the House had 567 — and that doesn’t include all the various types of resolutions. That’s a record-breaking number of bills to bird-dog for unintended consequences — one of our biggest jobs during the session.
• To an extent, bills were batched by topic, leading to the multiple mini-marathon feel with flurries of fast and furious negotiation around specific topics in multiple bursts through the session.
• The final days were fast and furious. While this is always the case, this year was “special.” Case in point — on day 43, the legislature passed 104 (!) bills, shattering their near-decade average of 52.7 bills passed on the third to last day.

2023 was a successful session for the state’s oil and gas industry. By the numbers, we actively tracked 170 bills, engaging in most. Further, 56 of the 64 bills we took positions on passed or failed in line with our positions. UPA had a busy session collaborating, negotiating and testifying on dozens of bills, and we appreciate the teamwork from our colleagues at the Utah Manufacturers Association, Utah Mining Association, Utah Taxpayers Association and other allies on the hill!

Here are a few highlights of important bills for our industry where UPA took an active role (amending or testifying):

• $88.5M secured for HW 191 improvements! See line 2506 of SB3, otherwise known as the “bill of bills.” This was UPA’s top priority, and it provides a historic level of funding for a critical rural Utah corridor. Up next, UDOT prioritization to get those dollars to work as quickly as possible!
• HB144 expands the High Cost Infrastructure Development Tax Credit Amendments to include energy storage projects (including fuels) and allows severance tax to be offset as a tax credit. We expect this incentive to now be much more attractive to our members needing to invest in costly new infrastructure to support the state’s growing oil and gas industry.
• HB319 Uintah Basin Air Quality Research Project Amendments provides ongoing funding for Dr. Seth Lyman’s important ozone research in the basin. Ensuring Dr. Lyman and the Bingham Research Center have consistent funding is critical in our efforts to better understand how to effectively tackle our unique basin winter ozone challenge.
• HB351 County recorder modification sets out a board (which we were able to expand to include a seat for our industry) to improve standardization in document recording.
• HB370 makes it a criminal offense to destroy, damage, or tamper with a critical infrastructure facility and includes all of our upstream, midstream and downstream infrastructure.
• HB389 electrical power delivery quality amendments call on the PSC to make rules to address electrical power quality delivery standards to address power quality challenges.
• HB220 emission reduction amendments require an inventory and state standard limiting halogens and BACT analysis for facilities that emit halogens — bringing facilities with these emissions into a similar level of regulation as other major sources in the nonattainment area and helping to improve Wasatch Front air quality.

And many more. Contact Rikki if you have questions on any specific bills or appropriations.

As always, legislative discussions are never really over. While we were successful in preventing several detrimental bills, many of these will be vigorously worked on over this year’s interim sessions, preparing for the 2024 General Session. A few issues already simmering include UDOT’s desire to expand their current ability to require relocation and cost-sharing to move utilities (including crude, product and natural gas pipelines) beyond the case of just “highways” to apply much more broadly to “public transit facilities.” We also anticipate more discussion regarding blue stakes, with some proponents looking for a new notification system, a different posture on liability and a requirement to use non-binding arbitration.

We will need to plan how to fund projects that offset impacts from and support growth in the Uintah Basin after the fund SB107 was going to set up by allocating new severance tax dollars to CIB was pulled from the bill in the house. Production growth in the basin is well underway and comes with a multitude of other needs — public services, infrastructure and community development. This summer will be spent educating on those needs and advocating for a portion of the severance tax that the industry generates by being dedicated to addressing those growing needs.

Thanks to all for your patience as we focused our attention on the legislative session and much appreciation to those who helped us achieve this historic funding for HW 191!

In addition to the success of UPA’s bills, there are a variety of other bills that were passed as well.

Budget

The “historic” $29 billion budget, called the “bill of bills,” SB3 contains about $850 million in tax cuts, but also included measures like a $6,000 teacher raise, $250 million in housing funds, over $1 billion in transportation funding and over $350 million toward water-related funding — including $200 million in agriculture optimization.

Education

Vouchers & teacher raises: With HB215, lawmakers both gave public school teachers a $6,000 raise and established a “Utah Fits All” scholarship fund to help parents pay for their children’s private school tuition or homeschooling supplies. It sets aside $239 million out of a nearly $1 billion public education budget for the program. Around 5,000 students will be granted scholarship money to attend alternative schooling. Critics of the bill, including the Utah Board of Education and the largest teacher union in the state, argued a teacher pay increase shouldn’t be attached to a voucher program because they are two separate issues.

Full-day kindergarten: The Legislature voted to fund full-day kindergarten with HB477, but it will be up to the school districts to decide when and if they would offer it.

Regalia: High school seniors can now wear cultural and religious regalia at graduation ceremonies under SB103. On a similar trend, lawmakers approved a bill that allows students to wear cultural and religious clothing as part of a school sports uniform.

Religion in school: HB427, Individual Freedom in Public Education, prohibits teachers from dismissing or talking discriminately about religion in school subjects. It also allows students to pray at school. Democrats were almost willing to vote in favor if they added “gender identity” to the protected groups listed in the bill.

No more school letter grade ranking: Right now, public schools are assigned a letter grade — A through F — based on how the school is performing overall. That would cease under HB308. Critics of this system say it’s outdated, and a letter grade doesn’t show the full picture. The grades are largely based on standardized tests. The State Board of Education supported the bill as did the Utah Education Association.

Higher Education

Residency for tuition: HB102 lets non-American citizens be granted Utah residency, which allows them to pay in-state tuition at public universities if they’ve applied or been approved for a certain immigration status.

Criminal Justice

Lethality assessments: Law enforcement agencies are now required to take lethality assessments when responding to domestic violence calls to determine the danger to a victim. SB117 says those results will be put into a statewide database for other police agencies and the Utah courts to use. Lt. Gov. Deidre Henderson helped create the legislation backed by Republican sponsor Sen. Todd Weiler. Other lawmakers, including Republican Rep. Brad Last who covers Enoch, said this bill could prevent the senseless killings of intimate partners because the database could identify if domestic violence is part of a larger pattern instead of believing it is a one-off incident.

Domestic violence data collection: HB43 creates a task force to compile lethality assessment data collected by officers and disseminates the reports across the state so agencies, like the courts, know the history of the perpetrator.

Prison suicide prevention: Lawmakers passed HB259 with the hopes it would prevent future suicides at state correctional facilities. The bill allows Utah prisons and jails to apply for $140,000 in grants to install barriers, like big nets, in an effort to protect incarcerated individuals from jumping off the top of buildings. In 2020, 19 inmates died by suicide, but it’s unclear how many of those deaths were from falling off buildings.

Unified Police Department: The Unified Police Department of Greater Salt Lake (UPD) will dissolve in 2025 after HB374 gained enough votes. UPD was created in 2009 to help metro municipalities save money by sharing a police force. UPD covers Copperton, Brighton, Holladay, Kearns, Midvale, Magna, Millcreek, White City, Brighton and Emigration Canyon. But in the last several years, Herriman, Riverton and Taylorsville formed their own police departments. And because of that, and concerns about residents overpaying in taxes, Republican bill sponsor Rep. Jordan Teuscher proposed to do away with UPD altogether.

Firearms

Firearms amendments: HB219 declares that Utah will not enforce federal firearms regulations that restrict or ban certain firearms, ammunition or firearms accessories. Senate sponsor Sen. Evan Vickers admitted it’s a “message bill” that effectively makes Utah a Second Amendment sanctuary state.

Taxes

Another tax cut: Utah lawmakers gave the green light to a $400 million tax cut — about $600 million short of the governor’s $1 billion proposal. HB54 slashed the state income tax from 4.85% to 4.65%. It also expands eligibility for Social Security tax credits, adds a tax benefit for pregnant people through the first year of their child’s life and increases the earned-income tax credit from 15% to 20% of the federal level. Additionally, it would remove the state portion of the food sales tax if Utah voters pass a constitutional amendment in 2024.

Gas goes down, EVs go up: The state gas tax will be reduced, but a tax on charging an electric vehicle will increase. That’s after lawmakers approved HB301. The increased revenue will go to the state’s Transportation Fund. The cost of registering a vehicle with the DMV also went up by $7.

Income tax amendment: An amendment to change Utah’s Constitution, SJR10, passed on the last day would loosen the restrictions on how lawmakers spend income tax. Currently, the state constitution outlines that income tax revenue can only be used to fund public and higher education, along with a few other services. House and Senate leaders said if the educational earmark goes away, so will the state portion of the food sales tax. But Utah voters get the ultimate say on the issue since it’s an alteration to the Utah Constitution. The amendment will be on the 2024 general election ballot.

Water

Emergency water shortage: Utah now has a general idea of what needs to happen in the case of an emergency water shortage not caused by drought. HB150 outlines what water use should be prioritized if a main source is compromised due to something like a natural disaster contaminating a city’s drinking water supply.

Great Salt Lake commissioner: Many different state agencies preside over Great Salt Lake. HB491 creates the Office of the Great Salt Lake Commissioner to oversee and enact a plan to help save the lake.

Water-wise landscaping: HB450 pushes back against Homeowner Association regulations when it comes to landscaping. It states HOAs and other subdivisions cannot prohibit a homeowner from installing water-wise landscaping, like tearing out the grass for a more resource-efficient material.

Turf removal: SB110 gives more dollars to a turf buyback program. The state will help a homeowner pay to rip out their grass for a more water-wise option like rock or bark. This bill partners with water districts throughout the state that have similar initiatives.

Environmental

Bromine air quality: Utah will be studying what’s exactly in our infamous pollution-ridden inversions after HB220 was passed. The state Division of Air Quality will also come up with a plan to reduce those emissions by the end of next year. The bill was scaled back from its original goal of reducing emissions along the Wasatch Front by half in the next seven years, but sponsor Rep. Andrew Stoddard said his only non-negotiable was doing nothing.

Homelessness

Winter shelters: The Legislature is bolstering the state’s response to Utahns experiencing homelessness. SB499 requires cities across the Wasatch Front to establish shelter plans during the winter months to keep people off the streets during freezing temperatures. Additionally, if temperatures drop below 15 degrees (including wind chill), shelters can increase capacity. However, it prohibits cities from taking state funds for homelessness services if it doesn’t have or won’t enforce a no-camping ordinance.

Social media

Parental permission: If a minor wants to open a social media account, the parents or guardian needs to sign off on it first. SB152 not only requires parental permission before an account is opened but requires social media companies to verify the age of a user. If a minor is able to open an account, it prohibits the company from allowing certain accounts to direct message a minor, and the profile will not show up on the search bar.

Social media addiction: HB311 attempts to curb minors from becoming addicted to social media. It bans social media companies from designing a platform that could entice a minor to develop an addiction. It also sets aside more than $400,000 to aid investigations and enforcement.