Legislative Update

OF PPP AND COVID-19 VACCINES

Notes From the 2021 Legislative Session

By david peterSon, ryan peterSon and Craig peterSon

The 2021 general session of the Utah Legislature ended Friday, March 5, at midnight. While it was a session like no other, the challenges many of us expected never seemed to precipitate. Two senators were diagnosed with COVID-19, sent home, and returned after the mandatory quarantine period. Two House members, who battled the coronavirus from hospital beds through much of the 45-day session, saw their health improve as well. Rep. Kay Christofferson (R-American Fork) who participated via Zoom for most of the session, made his way to the House chambers on the last day of the session and Rep. John Hawkins (R-Pleasant Grove) who started the session in a coma, cast his first votes from his hospital bed on the last few days of the session. Rep. Hawkins, whose first piece of legislation as a freshman legislator was HB159 (2019), which reduced the CPA examination semester and quarter hour requirement, still has a long road to recovery, and we wish him and his family well. Aside from the plexiglass, masks, virtual committee meetings, and occasional open-mic gaffes, the session was rather mundane. The Legislature passed a $23.5 billion budget and sent 502 new or modified laws to Governor Cox’s desk for his signature. Those bills affect your rights as a citizen, your pocket book, and social reform in general.

The Legislature tackled issues related to COVID-19, social reform, criminal justice, police reform and protests, education, affordable housing and homelessness, voting reform, environmental issues, and the budget and taxes. Here is a bit of a rundown.

COVID-19

• The Legislature passed legislation limiting the executive branch’s emergency powers, allowing the

Legislature to override public health orders and empowering local governments to do the same with local health orders. • The Legislature also passed a COVID-19 “endgame,” which ends the statewide mask mandate on April 10 for groups smaller than 50 where physical distance is possible.

Concealed Carry

• Utah no longer requires a concealed carry permit to carry a firearm, though it still allows people to get the permit if they choose.

Dixie State University

• One of the more controversial bills this session was about changing the name of Dixie State University. The legislation passed the House, but the Senate amended it so it no longer required the name “Dixie” to be dropped. The new version lays out the process for the

DSU Board of Trustees and the Utah Board of Higher

Education to come up with a name of the university by

November 2021.

Funding

• Education — Legislators added around $475 million to the public education base budget. In total, they spent more than $6 billion on education, which equates to about a quarter of the state’s budget. Much of the funding boost was due to the flexibility granted under Amendment G, the constitutional amendment approved by voters last year. The funding includes a 6% increase in the weighted pupil unit (WPU) and $1,500 bonuses for teachers.

• Infrastructure — $1.2 billion in infrastructure projects was proposed and passed to include $100 million for state parks and trails and a significant investment in all four UDOT regions.

LegiSlative Update

Affordable Housing and Homelessness

• $50 million was set aside to address shortfalls in affordable housing and homelessness.

• Accessory Dwelling Units (ADUs) —The Legislature made it easier to build basement apartments and mother-in-law apartments. The law loosens zoning restriction and provides loans to those who intend to rent ADUs to low-income families.

Voting

As it relates to taxes, PPP, covid relief packages, etc., the fact the legislative session ended on March 5 at midnight is largely irrelevant. Your watch has only just begun and this organization will continue to be looked upon for leadership and instruction in this arena. The UACPA was the first organization in the state to identify the PPP taxation issue. We brought it to the attention of both the executive and legislative bodies of our state government. It is our association of proficient professionals who will continue being looked at as the source of information and education for the coming months and years as we continue to recover from this global pandemic. n

• Party Switching — In response to the supposed surge of Democrats registering as Republicans before the gubernatorial primary, the Legislature passed a bill that limits when voters can switch their party affiliation in the run-up to a primary election. Under the legislation, if a voter switches parties after March 31, that switch would not take effect until after the primary election.

Unaffiliated and new voters are allowed to register with a new party during that time.

Environment

• Inland Port — Once again, the inland port made an appearance with the Legislature. Lawmakers passed a bill that creates a “bank” to distribute $75 million in loans for inland port infrastructure throughout the state. Those would go to satellite ports.

• Colorado River Authority — House Speaker Brad

Wilson (R-Kaysville) and Senate President Stuart

Adams (R-Davis County) teamed up to sponsor a bill that creates Utah’s Colorado River Authority, which would help Utah renegotiate its water allowance from the river. It passed the Legislature easily. The bill’s sponsors said Utah needs to make sure the state gets the water it deserves.

Taxes

• This year, the dependent exemption for families was restored on your state taxes. The Legislature also removed state income taxes on Social Security and military retirement pay. Though early rumors indicated a possible $100 million tax cut, it was not meant to be, nor would lawmakers consider Rep. Suzanne Harrison’s (D-Draper) last-minute bill to remove the state tax on

PPP loans.

David Peterson is a partner and attorney with Peterson Consulting Group. He received a B.S. degree from Brigham Young University, his J.D. from the University of Toledo, and his LL.M. from The Judge Advocate General's Legal Center and School. He has served on Active Duty and with the Army National Guard for more than 20 years and currently holds the rank of Major.

Ryan Peterson is the managing partner of Peterson Consulting Group. He has been a contract lobbyist in the state of Utah for the last 12 years. He received a degree in economics from the University of Utah with a focus on statistics and econometrics. He is an avid golfer and resides in Salt Lake City.

Craig Peterson, senior partner of Peterson Consulting Group, has been involved in legislative processes for almost 40 years as a State Representative, State Senator, and Republican Senate Majority Leader. During the past 20 years, he has been a lobbyist, successfully representing a broad spectrum of clients. Craig and his sons Ryan and David have become a strong political voice for their clients.