Tuesday, March 13, 2012

UTAH MANUFACTURERS ASSOCIATON LEGISLATIVE REPORT


UTAH MANUFACTURERS ASSOCIATON LEGISLATIVE REPORT
2012 GENERAL SESSION – MARCH 2012
2012 GENERAL SESSION BEING LABELED A “YAWNER”
Notwithstanding pressures to address some controversial issues, leadership in both Houses refused to engage in controversial discussions on immigration and medical mandates. General election years have a way of tempering discussions on Capitol Hill.
UMA’s number one priority in this session was to make improvements to the Utah Department of Environmental Quality policy board system to infuse more qualifications for board members and to realign responsibilities between the boards and the DEQ administration. This effort coordinates with efforts to shorten and improve the permitting processes at DEQ.  SB-11, Department of Environmental Quality Boards Adjudicative Proceedings, and SB-21, Department of Environmental Quality Boards Revisions were approved by the Legislature overwhelmingly and are expected to receive the signature of the Governor. 
High priority was also given to HB-365, Sales and Use Tax Exemptions for Research and Development. A companion bill from the Senate, SB-190 mirrored the House but HB-365 ultimately passed. This measure revamps the state R&D income tax credit by replacing it with a sales tax exemption. This change makes a big difference for manufacturers, especially startup companies that are not profitable in the early years. The provisions of this important tax change mirror the manufacturers sales tax exemption from sales tax.
Following is a listing and brief description of the priority bills for UMA in the 2012 General Session.
SENATE BILLS

Bill #       Sponsor                      Description                              Position     Action
Dayton
Department of Environmental Quality Boards Adjudicative Proceedings (Creates record review of permit appeals)
HP-S
ENROLLED
Madsen
Energy Amendments (authorizes a contract to supply electric service
from renewable energy facilities)
LP-S
ENROLLED
Dayton
Department of Environmental Quality Boards Revisions (changes the composition of DEQ Boards, requires specific member qualifications,
transfers powers and duties from the boards to executive director)
HP-S
ENROLLED
Bramble
Life Science and Technology Tax Credit Amendments (creates a new tax credit for companies investing more than $1Billion)
HP-S
ENROLLED
Valentine
Research Tax Credit Amendments (Replaced by HB-365)
HP-S
DEFEATED
Stephenson
Amendments to Revenue and Taxation Title (amends the circumstances under which a person who pays a tax, fee, or charge liability may receive a credit or refund)(Ivory Case)
HP-S
ENROLLED
Anderson
Production and Sale of Food in Utah Revisions (would have prohibited federal regulation of an agricultural product that remains in Utah after it is made, grown, or produced in Utah)
HP-O
DEFEATED
Reid
Gubernatorial Authority over Higher Education Officials (modifies the hiring and termination process for the commissioner of higher education and president of the Utah College of Applied Technology to involve the Governor)
M
ENROLLED
Urquhart
Workers' Compensation Act Amendments (requires $1 M minimum Workers' Compensation coverage for independent motor carriers)
HP-S
ENROLLED
Niederhauser
Property Tax Valuation Amendments (requires an assessor to consider a valuation reduction in certain prior years in determining the fair market value of property)
LP-S
ENROLLED
Adams
Alternative Energy Development Tax Incentives (modifies and expands alternative energy sales and use tax exemptions including manufacturing)
LP-S
ENROLLED
Madsen
Employment Amendments (prohibits a municipality or county from enacting or enforcing an ordinance  that establishes, mandates, or requires a private employer to establish or offer an employee benefit)
LP-S
ENROLLED
Bramble
Unemployment Insurance Modifications (reduces the maximum unemployment insurance contribution rate for an employer from 9% plus the social contribution rate to 7% plus the social contribution rate beginning in calendar year 2012; caps the social unemployment insurance contribution rate for all employers at .4% for calendar year 2012 only)
LP-S
LT-GOV
Weiler
Health Insurance Mandate Accountability Amendments (applies a health insurance mandate that is enacted by the state after January 1,2012, to a public school district, charter school, or a state funded institution of higher education)
HP-S
ENROLLED
Urquhart
Utah Immigration Accountability and Enforcement (would have repealed the Utah Immigration Accountability and Enforcement Act)
LP-O
DEFEATED
Valentine
Sales and Use Tax Exemptions for Research and Development (Replaced by HB-365)
HP-S
DEFEATED
Adams
Healthcare Compact (pledges to take joint and separate action to secure the consent of Congress to an interstate compact in order to return the authority to regulate health care to the  member state)
LP-S
ENROLLED


HOUSE BILLS
Bill #       Sponsor                      Description                              Position     Action
Harper
Extension of Recycling Market Development Zone Tax Credits (extends certain recycling market development zone tax credits and related carry forward provisions to repeal on January 1, 2021)
HP-S
ENROLLED
Harper
Sales and Use Tax - Computer Software and Other Tangible Personal Property Amendments (addresses the detachment of certain tangible personal property, including prewritten computer software, from other tangible personal property)
LP-S
ENROLLED
Arent
College and Career Counseling for High School Students (creates the College and Career Counseling Pilot Program to increase the number of students pursuing post-secondary education and better prepare students for post-secondary education)
LP-O
DEFEATED
Menlove
Insurance Coverage for Autism Spectrum Disorders (requires that an accident or health insurance policy that provides a health insurance benefit shall provide coverage for treatment of autism spectrum disorders)
HP-O
DEFEATED
Edwards
Blasting Regulations (requires a mining operation that blasts within on half mile of a residential structure to comply with local, state, and federal law)(MSHA already regulates blasting)
HP-O
DEFEATED
Barrus
Energy Changes (expands the renewable energy authority act to apply to energy infrastructure instead of transmission facilities for delivery of energy generated from a renewable source)
LP-S
ENROLLED
Wilson
Private Property Rights (clarifies that a property owner has no duty of care to keep the premises safe for entry or use by a trespasser)
LP-S
DEFEATED
Nielson
Severance Tax Amendments (provides that certain severance tax revenue be deposited into the General Fund and  the permanent state trust fund)
HP-S
DEFEATED
Moss
Insurance Coverage for Amino Acid-based Formula (requires that a health benefit plan shall provide coverage for the use of an amino acid-based elemental formula)
HP-O
DEFEATED
Morley
Labor Related Amendments (changes the burden of proof for rebutting the presumption of employee status to
15 preponderance of the evidence for purposes of wages, workers' compensation, antidiscrimination, and occupational safety)
LP-S
DEFEATED
Ray
Insurance Billing for Athletic Trainers (amends the scope of practice of athletic trainers to include an athletic trainer in the definition of health care provider under the Insurance Code)
HP-O
DEFEATED
Hemingway
Unemployment Benefits for Military Spouse (provides that the Unemployment Division will not charge benefit costs to an employer for an employee who receives unemployment benefits after voluntarily leaving employment to follow a spouse because of a spouse's military assignment)
LP-S
ENROLLED
Menlove
Pilot Program for Insurance Coverage for Autism Spectrum Disorders (creates a pilot program for autism spectrum disorders services in the Medicaid program; for the private sector, non-Medicaid population through the Autism Treatment Account; and for certain children of state employees administered by Public Employees' Benefit and Insurance Program Act)
HP-O
ENROLLED
Briscoe
Funding for Burying Utility Lines (allows a city legislative body of a city of the first class to impose a sales and use tax)
HP-O
DEFEATED
Edwards
Insurance Coverage for Children with Hearing Impairments (requires a health benefit plan to provide children with hearing impairments with coverage for hearing aids)
HP-O
DEFEATED
Peterson
Wage Reporting Amendments (requires an employer to include additional wage-related information on quarterly unemployment contribution reports including occupation title and hours worked for each paid employee during the calendar quarter)
HP-O
DEFEATED
Menlove
Industrial Assistance Account Amendments (moves the funding and administration of the Business Expansion and Retention Initiative from the Rural Fast Track Program to the Industrial Assistance Account administered by the director of the Governor's Office of Economic Development)
LP-S
ENROLLED
Nielson
School Board Election Provisions (requires the direct, nonpartisan election of members of the State Board of Education)
LP-O
DEFEATED
Dougall
Revisions to Tax (enacts a sales and use tax exemption for certain machinery and equipment used for research purposes and repair and replacement parts for that machinery and equipment; enacts a sales and use tax exemption for certain construction materials used in a life  science research and development facility, replacing the current income tax credit)
HP-S
ENROLLED
D. Brown
Product Liability Amendments (provides that a manufacturer may not be liable for a product if the claimant fails to prove by a preponderance of the evidence that the defendant a was the actual manufacturer of the actual product that caused the harm)
HP-S
DEFEATED
Sandstrom
Employment and Verification Requirements (enacts the Utah Illegal Employment Act, including: prohibiting knowingly or intentionally employing an unauthorized alien and creating related penalties; providing that an employer is not required to take any action that the employer believes in good faith would violate federal or state law; requiring employers to participate in e- verify, with exceptions; repeals the Private Employer Verification Act)
HP-O
DEFEATED
Ivory
Severance Tax Funding for Certain Programs (provides funding for the Constitutional Defense Restricted Account from certain oil and gas severance tax revenues)
LP-O
DEFEATED

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