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Succession Planning: Sustainable Succession Management
ADVOCACY
WHAT TO EXPECT WITH THE 2022 LEGISLATIVE SESSION
BY CRAIG AND RYAN PETERSON
Following a unique and difficult year in 2021, we look forward to another upcoming legislative session beginning January 18. The COVID-19 pandemic had a significant impact on the 2021 legislative session, and forced everyone to adapt to a new normal up on Capitol Hill. Most of the session was done remotely, with very strict rules around meeting participation at the Capitol. Luckily Utah, unlike many other states, allowed for full participation in committee meetings through Zoom which allowed the session to progress as normally as possible.
The pandemic continued to be a significant topic moving into the interim. While the legislature continued to work on relevant issues and study items that were identified during the 2021 session, a significant portion of the time was taken up by legislative response to the ways that COVID was impacting state government. There was also a close eye being kept on the federal government and decisions being made on U.S. Capitol Hill and the White House.
Moving into fall, the legislature began negotiating how to administer the nearly $1.4 billion coming into the state through the American Rescue Plan Act of 2021. In the past, we have seen the Revenue and Taxation Interim Committee work on a number of important issues that the UACPA is able to weigh in on but, this year, the committee didn’t take on as many items as in previous years. One major issue that the legislature did take on during the interim was redistricting. There was quite a bit of controversy regarding the proposed maps, as there always is in a primarily single party state. In 2018, the Utah Independent Redistricting Commission was created through the passage of Prop 4. In 2020, the legislature passed a compromise bill to adjust the original language and ultimately the legislature was able to select a map proposed by the commission or they could pass their own. Ultimately, the legislature chose their own map and Governor Cox signed off on the map in November despite many cries of gerrymandering over the “cracking” of Salt Lake County. Cracking is a term used to define the breaking up of a certain area to deprive it of political power. There are some looking at a possible legal challenge in Utah, similar to what has happened in Texas and North Carolina.
As we move towards the next legislative session, there have already been a few interesting developments. In October, Rep. Francis Gibson, the Majority Leader in the House of Representatives resigned his seat. That caused a little bit of a shakeup in House Leadership. Rep. Mike Schultz moved into the Majority Leader position, and Rep Jeff Moss was elected as the new Majority Whip. Speaker Brad Wilson and Rep. Val Peterson will stay in their current positions as House Speaker and Assistant Majority Whip respectively. Rep Robert Spendlove was appointed to fill the Assistant Appropriations Chair position that was left vacant when Rep. Moss was elected to his new position. Also, in the House, Rep. Paul Ray from Clearfield resigned his position in the legislature after serving 20 years. He will now lead legislative affairs for the Utah Department of Health and Human Services.
As always, we will be monitoring the legislative session closely for any issues that may have an impact on you as professionals or on your clients. There are already a few items that we are keeping a close eye on. First, there is an effort being mounted to cut the individual and corporate
income tax rate to 4.50%. Those who are in favor of this plan see that the state is poised to receive significant new ongoing and one-time revenue. The proponents of this plan suggest that the state could meet all obligations and still cut taxes in FY2023. Those on the other side of the issue feel that the state has so many unmet needs and that a tax cut would provide such a small benefit to those receiving it, that the state would be better off using the additional funds to help people in need. Secondly, there are a few proposals that are once again addressing professional licensure. We have yet to see a final proposal, but UACPA intends to play a significant role in ensuring that professional licensure is protected in the state of Utah. We intend to work with other professionals as a coalition to educate legislators on the importance of robust professional licensing rules and regulations. There will be other issues that arise during the session and we will work closely with UACPA leadership to protect CPAs throughout the State of Utah. We hope that we are able to be on Capitol Hill and, at this time, have not heard of any additional restrictions based on increasing COVID cases or variants.
It is an honor for us to represent the CPAs in the State of Utah. We hope that all of you had an enjoyable holiday season and that you and your families are happy and healthy. n
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.
Ryan Peterson is the managing partner of Peterson Consulting Group. He has been a contract lobbyist in the state of Utah for 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.
