Legislative Updates - 26 February 2024

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Dear Friends:

This is GrassRoots’ 6th legislative update of this year’s General Session of the Utah State Legislature. At this time (6 weeks into the session), there are about 930 numbered bills for this session on the Utah Legislature website. Here are some bills and issues that we consider to be noteworthy.

Bills catching our attention this week:

*HB13Substitute, “Infrastructure Financing Districts”, sponsored by Representative Dunnigan and Senator Cullimore, would, according to the bill’s long title:

• authorize the creation of a type of special district for the purpose of financing infrastructure;
• provide a process for the creation of an infrastructure financing district;
• provide for the powers and governance of an infrastructure financing district;
• authorize an infrastructure financing district to impose an assessment on property within the district and to issue assessment bonds to finance infrastructure within the district;
• authorize specified local entities to provide for a longer installment payment period for assessments imposed in an assessment area;
• provide for the district to have bonding authority, with limitations;
• authorize the district to levy a property tax;
• require a district to provide proof to a county or municipality that an assessment bond has been paid in full on owner-occupied residential property before the county or municipality may issue a certificate of occupancy;
• provide for the annexation of an area to an infrastructure financing district, the withdrawal of an area from a district, and for dissolution of a district;
• authorize sponsors of a petition to create an infrastructure financing district to create a governing document with provisions that govern the district, including providing for board membership and the transition from appointed board positions to elected board positions; and
• make technical and conforming changes.

HB13Substitute passed the House 74-0 on Feb 6th, and the Senate 2nd reading 20-3 on Feb 22nd, and is on the Senate 3rd reading calendar table (probably due to fiscal impact).

As we read HB13Substitute, we would pose the following questions:

• Is HB13Substitute consistent with Utah State Constitution, Article XI, Section 7? In particular, is it consistent with that section’s requirement that “a special service district within all or any part of the county, city, or town . . . be governed by the governing authority of the county, city, or town. . .”? Are the proposed infrastructure financing districts subject to this section?
• Is HB13Substitute consistent with the requirement in Utah State Constitution, Article VI, Section 28 that “The Legislature shall not delegate to any special commission, private corporation or association, any power to make, supervise or interfere with any municipal improvement, money, property or effects, whether held in trust or otherwise, to levy taxes, to select a capitol site, or to perform any municipal functions”?

GrassRoots takes no position on HB13Substitute at this time.

*SB71Sub2, “Cannabis Business Tax Credit Amendments”, sponsored by Senator Vickers and Representative Dailey-Provost, would:

• enact a nonrefundable income tax credit for business expenses related to selling medical cannabis within the state; and
• require the Department of Agriculture and Food to collect and report tax identification numbers for persons that apply for a license to sell medical cannabis to the State Tax Commission.

The fiscal note for SB71Sub2 indicates that tax revenues would be estimated to decline by about $1 million in FY2025 and in FY2026.

SB71Sub2 passed the Senate 2nd reading 22-2 on Feb 23rd, and awaits consideration on the Senate 3rd reading calendar.

We are in favor of broad tax rate reduction, which is more consistent with the principle of Equal Treatment Under The Law. SB71Sub2 looks like a targeted tax credit for a favored business category, and would appear to be aiming to “pick winners and losers” in our economy. GrassRoots tentatively favors a “no” vote on SB71Sub2.

*SB272, “Capital City Reinvestment Zone Amendments”, sponsored by Senator McCay and Representative Hawkins, would:

• establish procedures to create a sports and entertainment project area for the use of tax revenue for the benefit of creating or improving access to sports and entertainment within the area;
• provide requirements for the project area;
• permit a local government to designate a project area as a public infrastructure district;
• authorize a qualifying local government to levy a sales and use tax within the local government's boundaries and for use within the project area;
• provide requirements and procedures for a local government to approve a project participant to participate in the use of funds collected within the project area;
• require a local government and a project participant to enter into a participant agreement;
• provide requirements for allowable uses of funds;
• provide for termination of access to funds in the event of breach or ceasing to operate or regularly use a stadium in the project area;
• create the Sports and Entertainment Project Area Review Committee to review expenditures and to provide non-binding recommendations in relation to a project area and project participants; and
• require a local government with a sports and entertainment project area to provide reports to the review committee.

SB272 passed the Senate Revenue and Taxation Committee 4-0 on Feb 22nd, and awaits consideration on the Senate 2nd reading calendar.

Should taxes, or any kind of government force, be employed to create or improve access to sports and entertainment? We believe this is not the proper role of government, and that such actions by government open the door to crony capitalism, and the choosing (by powerful, monied interests) of winners and losers in our economy. Let’s leave sports and entertainment in the private sector where it belongs. GrassRoots favors a “no” vote on SB272.

Updated status on some proposals to Expand Medicaid:

As discussed in our update of February 19th, we oppose the expanded use of tax-dollars for Medicaid. Following are some updates on Medicaid expansion bills mentioned in that weekly update.

*HB193Sub2, “Hospital Assessment Revisions”, sponsored by Representative Ward and Senator McKell, would extend the Medicaid Expansion Fund sunset date by 10 years. Additional coverage of HB193Sub2 may be found in our update of February 19th.

HB193Sub2 passed the House 67-0 on February 16th, and the Senate Health and Human Services Committee 4-1 on Feb 21st, and awaits consideration on the Senate 2nd reading calendar.

GrassRoots still tentatively favors a “no” vote on HB193Sub2.

*HB324Sub6, “Disability Services Amendments”, sponsored by Representative Lund and Senator Millner, is the latest version of HB324. This bill would:

• create the Coordinated Care Services for Children with Disabilities Grant Program within the Department of Health and Human Services;
• create research and reporting requirements;
• provide a sunset date;
• require the Department of Health and Human Services to submit a Medicaid waiver to provide coordinated care services to qualified enrollees who live and can receive care at home; and
• appropriate in fiscal year 2025: to Department of Health and Human Services - Integrated Health Care Services - Medicaid Other Services as a one-time appropriation: from the General Fund Restricted - Medicaid Restricted Account, One-time, $1,200,000.

Coverage of an earlier version of HB324 may be found in our update of February 19th.

HB324Sub6 passed the House 69-0 on Feb 22nd, and awaits action by the Senate Rules Committee.

GrassRoots favors a “no” vote on HB324Sub6.

*SB181Sub2, “Native American Health Amendments”, sponsored by Senator Escamilla and Representative Watkins, would require the Department of Health and Human Services to apply for a Medicaid waiver to reimburse traditional healing services under certain circumstances. Additional coverage of the original version of SB181Sub2 may be found in our update of February 19th.

SB181Sub2 passed the Senate 22-0 on Feb 20th, and the House Business and Labor Committee 11-0 on Feb 23rd, and awaits consideration by the full House.

GrassRoots still favors a “no” vote on SB181Sub2.

*SB197Sub2, “Medicaid Reimbursement Rate Amendments”, sponsored by Senator Weiler and Representative Gricius, is the latest version of SB197. It would establish a budgeting mechanism under which Medicaid reimbursement rates for applied behavior analysis may increase. The fiscal note for SB197Sub2 estimates that the bill would result in additional government spending of almost $1.8 million in FY2025, and almost $2.5 million in FY2026. Coverage of an earlier version of SB197 may be found in our update of February 19th.

SB197Sub2 passed the House Business and Labor Committee 13-0 on Feb 22nd, and is in the House Rules Committee, probably due to fiscal impact.

GrassRoots favors a “no” vote on SB197Sub2.

Updated status on other bills covered in past weekly updates:

*HB78, “Motion Picture Incentives Amendments”, sponsored by Representative Stenquist and Senator Winterton, would repeal the sunset date that applies to certain motion picture incentives available only for rural productions. Additional coverage of HB78 may be found in our updates of January 29th, February 5th, and February 19th.

HB78 passed the House 55-18 on Feb 1st, and the Senate 2nd reading 15-5 on February 21st, and is on the Senate 3rd reading calendar table (probably due to fiscal impact).

Picking winners and losers in the marketplace through subsidies, unequal tax treatment, and other “incentives” is not a proper role of government. GrassRoots still favors a “no” vote on HB78.

*SB69, “Income Tax Amendments”, sponsored by Senator Wilson and Representative Christofferson, would reduce corporate and individual income tax rates from 4.65% to 4.55%. Additional coverage of SB69 may be found in our update of February 5th.

SB69 passed the Senate 23-6 on Jan 31st, and the House Revenue and Taxation Committee 5-2 on Feb 23rd, and is in the House Rules Committee due to fiscal impact.

GrassRoots still favors a “yes” vote on SB69.

If you have any questions about these bills, GrassRoots’ position on these bills, or related matters, please contact either of us or any other member of the Board of Utah GrassRoots.

Sincerely,

Steve Stromness
Vice-Chairman, Bill Review Coordinator, Utah GrassRoots
steven.stromness@gmail.com
435-637-5248

Don Guymon
Chairman, Utah GrassRoots
donguymon@gmail.com
801-574-9461

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