2008 legislative interim report - Utah Legislature

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Michael E. Christensen Director John L. Fellows General Counsel Utah State Capitol Complex House Building, Suite W210 PO Box 145210 Salt Lake City, Utah 84114-5210 Phone (801) 538-1032 Fax (801) 538-1712 www.le.utah.gov 2008 LEGISLATIVE INTERIM REPORT A report to the 58th Legislature on recommended legislation and studies from the 2008 Legislative Interim Committees

Transcript of 2008 legislative interim report - Utah Legislature

Michael E. ChristensenDirector

John L. FellowsGeneral Counsel

Utah State Capitol ComplexHouse Building, Suite W210

PO Box 145210Salt Lake City, Utah

84114-5210Phone (801) 538-1032

Fax (801) 538-1712www.le.utah.gov

2008 LEGISLATIVEINTERIM REPORT

A report to the 58th Legislature on recommendedlegislation and studies from the 2008 Legislative

Interim Committees

Utah State Legislature

2008 LEGISLATIVEINTERIM REPORT

A report to the 58th Legislatureon recommended legislation and studies

from the 2008 Legislative Interim Committees

Prepared by the Office of Legislative Research and General Counsel W210 House Building Utah State Capitol Complex PO Box 145210 Salt Lake City, Utah 84114-5210 (801) 538-1032 Fax: (801) 538-1712 Internet: http://le.utah.gov

INTRODUCTION AND ACKNOWLEDGMENTS

2008 Legislative Interim Report i

INTRODUCTIONThe Legislative Interim Report is prepared each year bythe Office of Legislative Research and General Counsel.The yellow pages contain summaries of legislationrecommended by legislative committees for the upcominglegislative session. The Report also contains a summary ofpertinent interim committee, commission, and task forcestudies. More information on these studies may beobtained from the Office of Legislative Research andGeneral Counsel. Minutes and histories of meetings areavailable on the Utah State Legislature's website –http://www.le.utah.gov.

ACKNOWLEDGMENTS

Legislative Management CommitteeEach study item selected by an interim committee isapproved for study by the Legislative ManagementCommittee. Many of the items studied by interimcommittees are selected from the "Master StudyResolution" passed during the previous legislative session.

MembershipSpeaker Greg J. Curtis, ChairPresident John L. Valentine, Vice ChairSen. Curtis S. Bramble (Majority Leader)Sen. Gene Davis (Minority Whip)Sen. Mike Dmitrich (Minority Leader)Sen. Dan R. Eastman (Majority Whip)Sen. Brent H. Goodfellow (Minority Caucus Manager)Sen. Patricia W. Jones (Assistant Minority Whip)Sen. Sheldon L. Killpack (Asst. Majority Whip)Rep. David Clark (Majority Leader)Rep. Brad L. Dee (Assistant Majority Whip)Rep. Brad King (Minority Leader)Rep. David Litvack (Minority Whip)Rep. Carol Spackman Moss (Assistant Minority Whip)Rep. Phil Riesen, Minority Caucus Manager)Rep. Gordon E. Snow (Majority Whip)StaffMichael E. Christensen, DirectorJohn L. Fellows, General CounselBeverlee LeCheminant, Administrative Assistant

Office of Legislative Research and General Counsel

The Office of Legislative Research and General Counselconducts research and drafts legislation for legislativecommittees and individual legislators. In addition to staffinginterim and standing committees, commissions, and taskforces, the Office assists in the bill process duringlegislative sessions and serves as legal counsel to theLegislature.

Managing StaffMichael E. Christensen, DirectorJohn L. Fellows, General CounselBryant R. Howe, Assistant DirectorEric N. Weeks, Deputy General CounselJohn Q. Cannon, Managing Policy AnalystMark J Allred, Information Systems ManagerBeverlee LeCheminant, Administrative Assistant

Support StaffBrooke Anderson, Legislative IT StaffKaren R. Brown, Legislative Data Management SpecialistChris Calcut, Legislative IT StaffShelley Day, Legislative Information LiaisonNancy A. Ellison, Document TechnicianDouglas B. Farr, Legislative IT StaffSara M. Hummel, Legislative IT StaffGlen Johnson, Legislative IT StaffNancy McPherson, ReceptionistNina R. Norton, ParalegalPeggy R. O'Connor, Document TechnicianTrent Packer, Legislative IT StaffChris Peterson, Document Technician SupervisorLorraine K. Ripley, ParalegalMaureen J. Wilson, Legislative Data Management

Specialist

2008 COMMITTEE STAFF

Administrative Rules Review CommitteeAnalyst: Arthur L. HunsakerAttorney: Susan Creager AllredSecretary: Tracey Fredman

INTRODUCTION AND ACKNOWLEDGMENTS

ii 2008 Legislative Interim Report

Business and Labor Interim CommitteeAnalyst: Allison M. NicholsonAttorney: Patricia OwenSecretary: Phalin L. Flowers

Child Welfare Legislative Oversight PanelAnalyst: Mark D. AndrewsAttorney: Thomas R. VaughnSecretary: Wendy L. Bangerter

Education Interim CommitteeAnalyst: Constance C. SteffenAnalyst: Phillip V. DeanAnalyst: Allison M. NicholsonAttorney: Dee S LarsenSecretary: Glenda S. Whitney

Government Operations Interim CommitteeAnalyst: Benjamin N. ChristensenAttorney: Christopher R. ParkerSecretary: Chelsea Barrett

Health and Human Services Interim CommitteeAnalyst: Mark D. AndrewsAttorney: Catherine J. DupontAttorney: Thomas R. VaughnSecretary: Joy L. Miller

Health System Reform Task ForceAnalyst: Mark D. AndrewsAttorney: Catherine J. DupontSecretary: Phalin L. Flowers

Higher Education and Applied Technology GovernanceCommittee

Analyst: Allison M. NicholsonAttorney: Dee S LarsenSecretary: Wendy L. Bangerter

Immigration Interim CommitteeAnalyst: Arthur L. HunsakerAttorney: Christopher R. ParkerAttorney: Thomas R. VaughnAttorney: James L. WilsonSecretary: Chelsea Barrett

Judicial Rules Review CommitteeAnalyst: Jerry D. HoweAttorney: Esther D. Chelsea-McCartySecretary: Amanda K. Majers

Judiciary Interim CommitteeAnalyst: Jerry D. HoweAttorney: Esther D. Chelsea-McCartySecretary: Amanda K. Majers

Law Enforcement and Criminal Justice InterimCommittee

Analyst: Stewart E. SmithAttorney: Susan Creager AllredSecretary: Wendy L. Bangerter

Legislative Management CommitteeAnalyst: Michael E. ChristensenAttorney: John L. Fellows Secretary: Beverlee LeCheminant

Legislative Management Committee - Subcommittee onOversight

Attorney: John L. FellowsSecretary: Beverlee LeCheminant

Legislative Process CommitteeAnalyst: John Q. CannonAttorney: Eric N. WeeksSecretary: Chelsea Barrett

Native American Legislative Liaison CommitteeAnalyst: John Q. CannonAttorney: Patricia OwenSecretary: Wendy L. Bangerter

Natural Resources, Agriculture, and Environment InterimCommittee

Analyst: J Brian AllredAttorney: Emily R. BrownSecretary: Joy L. Miller

Occupational and Professional Licensure ReviewCommittee

Analyst: Arthur L. Hunsaker

INTRODUCTION AND ACKNOWLEDGMENTS

2008 Legislative Interim Report iii

Attorney: James L. WilsonSecretary: Tracey Fredman

Political Subdivisions Interim CommitteeAnalyst: Joseph T. WadeAttorney: Robert H. ReesSecretary: Wendy L. Bangerter

Public Utilities and Technology Interim CommitteeAnalyst: Richard C. NorthAttorney: Victoria StirlingSecretary: Tracey Fredman

Retirement and Independent Entities CommitteeAnalyst: Benjamin N. ChristensenAttorney: Eric N. WeeksSecretary: Glenda S. Whitney

Revenue and Taxation Interim CommitteeAnalyst: Phillip V. DeanAnalyst: Leif G. ElderAnalyst: Bryant R. HoweAttorney: Angela D. OakesAttorney: Rebecca L. RockwellSecretary: Phalin L. Flowers

Rules Committee RecodificationAnalyst: John Q. CannonAttorney: John L. FellowsAttorney: Eric N. WeeksSecretary: Chelsea Barrett

Rural Development Legislative Liaison CommitteeAnalyst: Stewart E. SmithAttorney: James L. WilsonSecretary: Joy L. Miller

Senate Judicial Confirmation CommitteeAnalyst: Jerry D. Howe

Attorney: John L. FellowsSecretary: Amanda K. Majers

State Water Development CommissionAnalyst: J Brian AllredAttorney: Emily R. BrownSecretary: Joy L. Miller

Transportation Interim CommitteeAnalyst: Leif G. ElderAttorney: Shannon C. HalversonSecretary: Tracey Fredman

Utah Constitutional Revision CommissionAnalyst: Jerry D. HoweAttorney: Robert H. ReesSecretary: Amanda K. Majers

Utah International Trade CommissionAnalyst: Richard C. NorthAttorney: Victoria StirlingSecretary: Tracey Fredman

Utah Tax Review CommissionAnalyst: Phillip V. DeanAnalyst: Leif G. ElderAnalyst: Bryant R. HoweAttorney: Angela D. OakesAttorney: Rebecca L. RockwellSecretary: Phalin L. Flowers

Workforce Services and Community and EconomicDevelopment Interim Committee

Analyst: Arthur L. HunsakerAttorney: James L. WilsonSecretary: Glenda S. Whitney

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TABLE OF CONTENTS

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SUMMARY OF RECOMMENDED LEGISLATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

ADMINISTRATIVE RULES REVIEW COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Major StudiesCriminal Penalties Determined by Administrative Rule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Reauthorization of Administrative Rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Regents' Scholarship Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Other StudiesExclusive Catering Services at the Capitol Hill Complex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

BUSINESS AND LABOR INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Major StudiesApprenticeship Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Securities Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Workers' Compensation / Reemployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Reemployment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Rocky Mountain Center for Occupational and Environmental Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Workers' Compensation Study - Firefighters and Law Enforcement Officers . . . . . . . . . . . . . . . . . . . . . . . 14

Other StudiesAntidiscrimination Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Insurance Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Uniform Laws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Major StudiesDavid C. Exit Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Guardian ad Litem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Other StudiesChild Welfare Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Family Support Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Foster Care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Kinship Placements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Racial and Ethnic Disparities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

EDUCATION INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Major StudiesMathematics Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21Performance-based Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Utah Schools for the Deaf and the Blind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Other StudiesComputer-adaptive Testing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Grants to Obtain Advanced-level Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Online Learning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Property Tax and School Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23School Restructuring of Low-performing Schools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

GOVERNMENT OPERATIONS INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Major StudiesBallot Coordination for Local Districts and Municipal Elections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Election Law Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26Open and Public Meetings Act - Provisions of Open Meeting Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26State Per Diem Standardization for State Agency Boards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Other StudiesCitizen Requests and Ombudsman Processes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Debt Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Division of Facilities Construction and Management (DFCM) Five-Year Building Program

and Master Plan for State Office Space Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Four-day Work Week for State Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28State Capitol Complex Construction Projects and Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28State Property Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29Utah State Personnel Management Act Revisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

HEALTH AND HUMAN SERVICES INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Major StudiesDisability Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Expedited Partner Therapy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Local Health Department Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Medical Malpractice Arbitration Agreements - Sunset Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Utah Sudden Cardiac Arrest Survival Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Other StudiesAdoption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Assertive Community Treatment Team Pilot Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Autism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Availability of Mental Health Records in Clinical Settings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35Death Certificate Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Detection of Public Health Emergencies Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Determination of Criminal Conduct . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Emergency Medical Services - Treat and Release Fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

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Family Support Centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Health Disparities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Health System Reform Task Force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Insurance Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Licensed Direct-entry Midwives - Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Medical Examiner's Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37National Epidemiology Surveillance System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Obesity Prevention . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Pediatric Mental Health Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Performance Audit of Davis Behavioral Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Pilot Program for Family Preservation Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Preferred Drug List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37Substance Abuse and Misuse . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Treatment of Mentally Ill Offenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Utah Commission on Aging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

HEALTH SYSTEM REFORM TASK FORCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Major StudiesHealth Care Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Other StudiesStatus of Executive Branch Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

HIGHER EDUCATION AND APPLIED TECHNOLOGY GOVERNANCE COMMITTEE . . . . . . . . . . . . . . 45

Major StudiesUtah College of Applied Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Other StudiesConcurrent Enrollment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

IMMIGRATION INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Major StudiesFederal, State, and Local Immigration Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Public Comment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48S.B. 81 Amendments and Clarifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48Utah Driver Privilege Cards and REAL ID Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Other StudiesFederal Waiver for Work Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

JUDICIARY INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

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Major StudiesHarboring a Runaway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Material Harmful to Minors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Wrongful Death Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Other StudiesViolation of Protective Order . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52WiFi - Legal and Social Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

LAW ENFORCEMENT AND CRIMINAL JUSTICE INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . 55

Major StudiesConcealed Firearm Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55Gang Violence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Utah's Emergency Radio Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Other StudiesIncest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56Mentally Ill Offenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

LEGISLATIVE MANAGEMENT COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Major StudiesAppointment of Legislative General Counsel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Assignment of New Studies and Creation of New Interim Committees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

NATIVE AMERICAN LEGISLATIVE LIAISON COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Other StudiesDialogue with Tribal Leaders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Native American Representation on the Utah Substance Abuse and Anti-Violence

Coordinating Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59Statutorily Required Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENT INTERIM COMMITTEE . . . . . . . . . . 61

Major StudiesEnergy Resource Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61Recodification of Natural Resources Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Other StudiesEndangered Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Penalties for Destruction of Bald Eagle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Safe Drinking Water Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Sunset Review - Title 19, Chapter 2, Air Conservation Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

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Sunset Review - Title 19, Chapter 4, Safe Drinking Water Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Sunset Review - Title 19, Chapter 5, Water Quality Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Sunset Review - Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act . . . . . . . . . . . . . . . . . . . . . . . . . 62Sunset Review - Title 19, Chapter 6, Part 7, Used Oil Management Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63Water Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

POLITICAL SUBDIVISIONS INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Major StudiesAffordable Housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Assessment Area Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Funding for Local Health Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Reporting Local Government Boundary Changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66Townships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Other StudiesAbandonment of Property Taken Under the Threat of Eminent Domain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67County Surveyors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Designation of an Assessment Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Disaster Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Ground Water Management District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Improvement District for Electric Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Quality Growth Commission Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Relationship of Local Regulation and State Agency Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Riparian Overlay Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68Vision Dixie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

PUBLIC UTILITIES AND TECHNOLOGY INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Major StudiesClimate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Energy Fuel Source Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71Utility Transmission Corridors Siting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Other StudiesArea Code Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Electric Power Line Upgrades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Underground Sewage Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Utilities in Mobile Home Parks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72

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REVENUE AND TAXATION INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Major StudiesCredits and Contributions Listed on Income Tax Returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73Higher Education Tuition Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Legislation Requested by the Utah State Tax Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Transparency in Government Financial Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74Utah's Property Tax System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Other StudiesHighway Congestion Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76Lodging, Restaurant, and Motor Vehicle Rental Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

RURAL DEVELOPMENT LEGISLATIVE LIAISON COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Major StudiesGovernor's Rural Partnership Board (GRPB) Report to the Legislature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

Other StudiesUtah Science Technology and Research Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

TRANSPORTATION INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Major StudiesDUI Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Real ID Act of 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79Road and Bridge Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Other StudiesDriver License Issues Involving Motor Driven Cycles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Firefighter Special Group License Plate Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Motor Carrier Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80Motorcycle Rider Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80State Highway System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Street Legal All-terrain Vehicle Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81Traffic Accident Clearance Amendments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

UTAH INTERNATIONAL TRADE COMMISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Major StudiesInternet Gambling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83Utah International Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

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Other StudiesUnited States - Columbia Free Trade Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84United States Trade Assistance Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84United States Trade Representative Office's Intergovernmental Policy Advisor Committee (IGPAC) . . . . . . . . 84World Trade Organization (WTO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

UTAH TAX REVIEW COMMISSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Major StudiesOil and Gas Severance Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85Taxation of Pass-Through Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86

Other StudiesSeverance Tax Trust Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86Utah Corporate Income and Franchise Taxes - Deduction for Foreign Operating Company . . . . . . . . . . . . . . . 86Utah Corporate Income and Franchise Taxes - Definition of Business Income . . . . . . . . . . . . . . . . . . . . . . . . . 86

WORKFORCE SERVICES AND COMMUNITY AND ECONOMIC DEVELOPMENT INTERIM COMMITTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Major StudiesArt Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Identity Theft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87Motion Picture Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Other StudiesInterest Earned by the Refugee Services Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

xii 2008 Legislative Interim Report

SUMMARY OF RECOMMENDED LEGISLATION

2008 Legislative Interim Report 1

The following is a summary of recommended legislation, listed alphabetically by committee. Further information onthe legislation can be found on the page number provided after certain summaries.

ADMINISTRATIVE RULES REVIEW COMMITTEE

Amendments to Agency Rulemaking RegardingCriminal Penalties, H.B. 32 - This bill modifies variousstatutory provisions regarding rulemaking authority byrepealing statutory provisions that authorize certain stateagencies to determine by administrative rule what conductconstitutes a criminal penalty (page 10).

BUSINESS AND LABOR INTERIM COMMITTEE

Enhancement of Truth in Advertising Act, S.B. 30 - Thisbill authorizes the Division of Consumer Protection toenforce the Truth in Advertising Act.

Exemption for Alcoholic Beverage ManufacturingLicense, H.B. 51 - This bill modifies the AlcoholicBeverage Control Act to address exemptions frommanufacturing license requirements.

Insurance Code Amendments, H.B. 52 - This billmodifies the Insurance Code (page 15).

Utah Injured Worker Reemployment Act, H.B. 39 - Thisbill modifies the Utah Injured Worker Reemployment Act(page 14).

Utah Residential Mortgage Practices and LicensingAct, S.B. 31 - This bill modifies the Utah ResidentialMortgage Practices Act to address requirements underfederal law and to make other changes.

Workers' Compensation Premium Assessment andWorkplace Safety Funding, S.B. 15 - This bill modifiesprovisions related to the workers' compensation premiumassessment and to the Workplace Safety Account (page14).

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL

Amendments to Child Welfare, H.B. 63 - This billamends: education requirements in order to comply withthe requirements of the federal Fostering Connections toSuccess and Increasing Adoptions Act of 2008; the ChildWelfare Services Part of the Utah Human Services Code;and the Juvenile Court Act of 1996. This bill also repealsprovisions relating to Foster Care Citizen Review Boards(page 19).

Guardian Ad Litem Amendments, H.B. 69 - This billamends provisions of the Utah Code relating to attorneysguardian ad litem and the Office of Guardian Ad LitemDirector (page 19).

GOVERNMENT OPERATIONS INTERIM COMMITTEE

Ballot Question Amendments, H.B. 48 - This billmodifies the Election Code by amending provisions relatedto the length of ballot titles (page 26).

Coordinating Municipal and Special District Elections,H.B. 43 - This bill modifies Title 17B, Limited PurposeLocal Government Entities - Local Districts by amendingprovisions related to the election of board members (page25).

Declaration of Candidacy Amendments, H.B. 56 - Thisbill modifies the Election Code by amending the dates forfiling a declaration of candidacy for general elections (page26).

Early Voting Amendments, S.B. 24 - This bill modifiesprovisions in the Election Code relating to early votingpolling places (page 26).

Election Law Changes, S.B. 27 - This bill makes changesto Title 20A, Election Code (page 26).

Local and Special Service District ElectionAmendments, H.B. 44 - This bill allows local districts and

SUMMARY OF RECOMMENDED LEGISLATION

2 2008 Legislative Interim Report

special service districts to conduct elections solely byabsentee ballot (page 25).

Online Voter Registration, S.B. 25 - This bill allows thelieutenant governor to create an online system for voterregistration (page 26).

Open and Public Meetings Act - Meeting Record, S.B.26 - This bill modifies the Open and Public Meetings Act byamending provisions related to minutes and a recording ofan open meeting (page 26).

Per Diem and Travel Expenses for State Boards andCommissions, H.B. 45 - This bill modifies theAdministrative Services Code by amending provisionsrelated to the establishment of per diem and travelexpenses for a member of a board, commission, council,or committee in the executive branch of state government(page 27).

Voter Challenge Amendments, H.B. 49 - This billmodifies provisions of the Election Code relating to theprocedures for challenging a person's eligibility to vote(page 26).

HEALTH AND HUMAN SERVICES INTERIM COMMITTEE

Adoption Revisions, H.B. 42- This bill amends provisionsof the Utah Adoption Act (page 35).

Expedited Partner Therapy Treatment, H.B. 17 - This billamends the Pharmacy Practice Act in the Division ofOccupational and Professional Licensing Act (page 33).

Family Preservation Services Amendments, H.B. 60 -This bill amends the Services to People With Disabilitieschapter of the Utah Human Services Code to convert thepilot program for the provision of family preservationservices into an ongoing program, subject to sunset reviewin 2014 (page 37).

Refund of Unearned Health Insurance Premiums andMedicare Supplement Insurance Premiums, H.B. 33 -This bill amends provisions of the Insurance Code relating

to the refund of unearned health insurance premiums andMedicare supplement insurance premiums (page 36).

Utah Sudden Cardiac Arrest Survival Act, H.B. 31 - Thisbill enacts the Utah Sudden Cardiac Arrest Survival Actand amends civil liability immunity provisions relating to theact (page 35).

HIGHER EDUCATION AND APPLIED TECHNOLOGY

GOVERNANCE COMMITTEE

Career and Technical Education Amendments, H.B. 15- This bill modifies provisions relating to career andtechnical education, including governance structures (page45).

IMMIGRATION INTERIM COMMITTEE

Concurrent Resolution Requesting a Federal Waiver toEstablish an Employee Sponsored Work Program,S.C.R. 1 - This concurrent resolution of the Legislatureurges the United States Congress to grant the state ofUtah waivers to establish an employee-sponsored workprogram and other strategies to address illegal immigrationin the state (page 49).

Deterring Illegal Immigration, H.B. 64 - This billauthorizes the Department of Public Safety to administerand coordinate the operation of a multi-agency strike forceto combat violent and other major crimes associated withillegal immigration and human trafficking (page 47).

Immigration Amendments, S.B. 39 - This bill modifiesprovisions of the Identity Documents and Verification Act(page 48).

Lawful Presence Verification for Issuance of a DriverLicense or Identification Card, S.B. 40 - This billmodifies provisions of the Uniform Driver License Act(page 48).

JUDICIARY INTERIM COMMITTEE

Condominium and Community AssociationProvisions, H.B. 10 - This bill addresses the filing and

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2008 Legislative Interim Report 3

recording of certain information under Title 57, Chapter 8,Condominium Ownership Act, and Title 57, Chapter 8a,Community Association Act.

Harboring a Runaway, H.B. 22 - This bill amends thesection of the Utah Criminal Code that relates to harboringa runaway (page 51).

Material Harmful to Minors Amendments, H.B. 14 - Thisbill modifies the Criminal Code regarding the offenses ofdistribution of pornographic material and material harmfulto minors (page 51).

Wrongful Death Amendments, S.B. 32 - This billexpands the definition of "heirs" to include a wrongfuldeath designee (page 52).

LAW ENFORCEMENT AND CRIMINAL JUSTICE INTERIM

COMMITTEE

Child and Vulnerable Adult Endangerment Provisions,H.B. 26 - This bill amends Utah Criminal Code provisionsrelating to endangerment of a child or a vulnerable adult.

County Sheriff Qualification Amendments, H.B. 12 -This bill modifies provisions in Title 17, Counties, relatingto the qualifications of a county sheriff.

Crime of Strangulation or Smothering, H.B. 13 - This billmodifies the Criminal Code by including the offense ofsuffocation or strangulation as an aggravated assault.

Criminal Offense Elements and Penalties, H.B. 36 -This bill modifies the Criminal Code regarding the elementsof the offenses of aggravated assault and failure to stop atthe command of a peace officer and modifies the offenseand penalties regarding felony discharge of a firearm (page56).

Criminal Offense Penalties Amendment, S.B. 19 - Thisbill amends the Criminal Code to provide an increasedpenalty for crimes committed in relation to a criminal streetgang (page 56).

Criminal Procedure - Investigation Amendments, H.B.47 - This bill includes municipal attorneys under thedefinition of prosecutor in the Code of Criminal Procedure.

Gun Dealer Penalty Amendments, H.B. 25 - This billmodifies the penalties provision of the Weapons Part of theUtah Criminal Code regarding penalties for firearms'violations.

Incest Amendments, S.B. 11 - This bill amends theCriminal Code regarding the offense of incest (page 56).

Prohibited Activities of Gang Offenders, S.B. 28 - Thisbill modifies the Criminal Code regarding prohibitionsimposed on persons convicted of a criminal gang-relatedoffense (page 56).

Prohibited Gang Activity, S.B. 16 - This bill amends theCriminal Code by creating the offense of failure to dispersefrom loitering in a public place by groups that include gangmembers (page 56).

Sex Offender Registration Amendments, H.B. 41 - Thisbill modifies the Code of Criminal Procedure regarding thesex offender registry by requiring that offenders not undersupervision of the Department of Corrections register withthe local law enforcement agency.

Sex Offenders' Contact with Children, H.B. 29 - This billmodifies the Code of Criminal Procedure and requires aregistered sex offender whose offense was against a childyounger than 14 to obtain permission from a child's parentor guardian to allow a child younger than age 14 toaccompany the offender.

Subpoenas for Records in Certain CriminalInvestigations, H.B. 59 - This bill modifies the CriminalCode to allow investigative subpoenas of Internet serviceproviders in the investigation of sexual offenses againstminors.

Violent Offenses Amendments, H.B. 37 - This billmodifies provisions of the Criminal Code, including a felonycommitted with other persons, aggravated murder,

SUMMARY OF RECOMMENDED LEGISLATION

4 2008 Legislative Interim Report

predicate criminal gang offenses, and the offense of felonydischarge of a firearm (page 56).

NATIVE AMERICAN LEGISLATIVE LIAISON COMMITTEE

Utah Substance Abuse and Anti-violence CoordinatingCouncil Amendments, S.B. 37 - This bill amendsprovisions related to the membership of the UtahSubstance Abuse and Anti-Violence Coordinating Council(page 59).

NATURAL RESOURCES, AGRICULTURE, AND

ENVIRONMENT INTERIM COMMITTEE

Administering Substances to Wildlife, S.B. 13 - This billenacts a provision relating to wildlife.

Penalties for Destruction of Bald Eagle, H.B. 34 - Thisbill modifies protected wildlife and minimum restitutionvalues for certain wildlife (page 62).

Protections for Agricultural Practices, H.B. 27 - This billeliminates the presumption that agricultural operations areconducted in accordance with sound agricultural practicesand provides that agricultural operations are notnuisances.

Recodification of Natural Resources Provisions, H.B.11 - This bill amends and enacts provisions relating tonatural resources (page 62).

Safe Drinking Water Act Amendments, S.B. 29 - Thisbill amends a provision of the Safe Drinking Water Actrelating to the addition or removal of fluorine in a publicwater system owned by a corporation (page 62).

Surface Coal Mining Amendments, S.B. 17 - This billamends sections relating to surface coal mining.

Water Right Applications and Records, H.B. 18 - Thisbill amends provisions relating to a water right applicationand segregation of certain water right records (page 63).

Water Rights - Informal Adjudications, H.B. 19 - This billamends a section relating to the judicial review of a stateengineer's decision in an informal adjudication (page 63).

POLITICAL SUBDIVISIONS INTERIM COMMITTEE

Assessment Area Amendments, H.B. 16 - This billmodifies provisions relating to assessment areas (page65).

Local Government Entity Changes, H.B. 61 - This billmodifies provisions relating to the process of certifyinglocal government actions affecting the name or boundaryof a local entity (page 66).

Local Public Health Emergency Funding, S.B. 20 - Thisbill modifies provisions relating to funding relating to healthexpenses (page 66).

State and Local Health Authorities Amendments, S.B.21 - This bill modifies provisions dealing with Departmentof Health and local health department responsibilities(page 66).

PUBLIC UTILITIES AND TECHNOLOGY INTERIM

COMMITTEE

Utility Transmission Corridor Siting Task Force, S.B.33 - This bill creates the Utility Transmission CorridorSiting Task Force (page 72).

REVENUE AND TAXATION INTERIM COMMITTEE

Amendments to Sales and Use Tax Exemption forCertain Machinery, Equipment, or Parts, S.B. 34 - Thisbill amends the Sales and Use Tax Act relating to a salesand use tax exemption for certain machinery, equipment,or repair or replacement parts (page 74).

Amendments to Tourism, Recreation, Cultural,Convention, and Airport Facilities Tax Act, H.B. 55 -This bill amends the Tourism, Recreation, Cultural,Convention, and Airport Facilities Tax Act to address thetaxation of sales by a restaurant (page 74).

SUMMARY OF RECOMMENDED LEGISLATION

2008 Legislative Interim Report 5

Amendments to Vehicle Registration Requirements,H.B. 54 - This bill amends the Registration part relating torequirements prior to registration of a vehicle (page 74).

Certified Tax Rate Amendments, H.B. 23 - This billamends provisions in the Property Tax Act relating to thecalculation of a taxing entity's certified tax rate (page 74).

Cigarette Tax Exemption Amendments, H.B. 70 - Thisbill amends the Cigarette and Tobacco Tax and LicensingAct relating to exemptions from the state tax on cigarettes(page 74).

Exemptions from Requirements to Deduct andWithhold an Income Tax, H.B. 57 - This bill amends theWithholding of Tax part to address exemptions from therequirements to deduct and withhold an income tax (page74).

Income Taxation of Pass-through Entities and Pass-through Entity Taxpayers, S.B. 23 - This bill amends theCorporate Franchise and Income Taxes chapter and theIndividual Income Tax Act to address the income taxationof a pass-through entity and a taxpayer to whom income,gain, loss, deduction, or credit of the pass-through entity ispassed through.

Nonrefundable Higher Education Tuition Credit, H.B.35 - This bill creates a tax credit for higher education tuitionand fees (page 74).

Personal Property Tax Amendments, H.B. 28 - This billamends provisions in the Property Tax Act relating to thecollection of personal property taxes (page 74).

Property Tax Amendments, H.B. 66 - This bill amendsprovisions in the Minimum School Program Act and theProperty Tax Act relating to certain property tax levies andthe funding of public school programs (page 74).

Public Hearings on Property Tax Increases, H.B. 67 -This bill modifies the Property Tax Act to address certainrequirements for a taxing entity to provide notice of publichearings (page 74).

Repeal of Certain Income Tax Credits andContributions, H.B. 20 - This bill amends the IndividualIncome Tax Act and related provisions to repeal certainincome tax credits and contributions (page 73).

Reporting of Certain Transactions Exempt from Salesand Use Taxes, H.B. 65 - This bill amends the Penalties,Interest, and Confidentiality of Information part and theSales and Use Tax Act relating to reporting requirementsfor certain transactions exempt from sales and use taxes(page 74).

Sales and Use Tax - Determining the Location ofCertain Transactions, H.B. 58 - This bill amends theSales and Use Tax Act relating to determining the locationof certain transactions (page 74).

Sales and Use Tax Amendments, S.B. 36 - This billamends the Sales and Use Tax Act relating to prepaidtelephone calling cards (page 74).

Sales and Use Tax Definitions Relating to Property,S.B. 35 - This bill amends the Sales and Use Tax Actrelating to definitions (page 74).

Severance Tax Amendments, S.B. 38 - This bill providesfor the disposition of certain revenues from severancetaxes.

Utah Transparency Advisory Board Amendments, S.B.18 - This bill includes certain local governments andentities as entities required to provide information to andparticipate in the Utah Public Finance Website (page 74).

Withholding Tax Amendments, H.B. 71 - This billmodifies the Withholding of Tax part to address withholdingprepayments (page 74).

STATE WATER DEVELOPMENT COMMISSION

Development Exactions, H.B. 68 - This bill modifiesprovisions relating to development exactions of countiesand municipalities.

SUMMARY OF RECOMMENDED LEGISLATION

6 2008 Legislative Interim Report

State Water Development Commission Amendments,H.B. 62 - This bill amends a provision related tomembership criteria for the State Water DevelopmentCommission.

TRANSPORTATION INTERIM COMMITTEE

Amendments to Driver License SanctionRequirements, H.B. 21 - This bill modifies the UniformDriver License Act by amending provisions relating topersons under 21 years of age operating a vehicle with adetectable amount of alcohol in the person's body.

Commercial Motor Vehicle Amendments, H.B. 30 - Thisbill modifies the Transportation Code by amendingprovisions relating to commercial motor vehicles (page 80).

Designation of State Highways Amendments, H.B. 46 -This bill modifies the Designation of State Highways Act byamending the definition of a state highway and adding twohighways to the state highway system (page 81).

Driver License Amendments - Motor Driven Cycles,H.B. 53 - This bill modifies the Uniform Driver License Actby amending provisions relating to driver licenserequirements for certain motorcycles, street legal all-terrainvehicles, and motor-driven cycles (page 80).

DUI Amendments, S.B. 12 - This bill modifies the MotorVehicles Code and the Uniform Driver License Act byamending provisions relating to driving under the influence(page 79).

Firefighter Special Group License Plate Amendments,H.B. 50 - This bill modifies the Motor Vehicles Code byamending provisions relating to firefighter special grouplicense plates (page 80).

Motorcycle Rider Education Program Amendments,H.B. 40 - This bill modifies the Uniform Driver License Actby amending provisions relating to the motorcycle ridereducation program (page 80).

Street Legal All-terrain Vehicle Amendments, S.B. 22 -This bill modifies the Motor Vehicles Code and the Public

Safety Code by amending provisions relating to street-legalall-terrain vehicles (page 81).

Traffic Accident Clearance Amendments, H.B. 24 -This bill modifies the Motor Vehicles Code by amendingprovisions relating to a vehicle operator's responsibilitiesfor certain traffic accidents (page 81).

UTAH INTERNATIONAL TRADE COMMISSION

Resolution Urging the Withdrawal of United States'World Trade Organization Commitment on Gambling,H.J.R. 1 - This joint resolution of the Legislature supportsthe withdrawal of the United States' World TradeOrganization commitments on gambling (page 83).

UTAH TAX REVIEW COMMISSION

Income Taxation of Pass-through Entities and Pass-through Entity Taxpayers, S.B. 23 - This bill amends theCorporate Franchise and Income Taxes chapter and theIndividual Income Tax Act to address the income taxationof a pass-through entity and a taxpayer to whom income,gain, loss, deduction, or credit of the pass-through entity ispassed through (page 86).

Severance Tax Amendments, S.B. 38 - This bill providesfor the disposition of certain revenues from severancetaxes (page 86).

SUMMARY OF RECOMMENDED LEGISLATION

2008 Legislative Interim Report 7

WORKFORCE SERVICES AND COMMUNITY AND

ECONOMIC DEVELOPMENT

Department of Community and Culture - State-ownedArt Inventory, S.B. 10 - This bill modifies provisions of theState-Owned Art Collections Inventory Study Program Actby requiring comprehensive and consistent inventories ofstate-owned art (page 87).

Financial Incentives for Motion Picture Productions,S.B. 14 - This bill modifies provisions of the Motion PictureIncentive Fund and enacts additional statutes related to theprocess and criteria for granting economic incentives tomotion picture companies for new state-approvedproductions (page 88).

Refugee Services Fund Amendments, H.B. 38 - This billamends the investment provision of the Refugee ServicesFund (page 88).

8 2008 Legislative Interim Report

ADMINISTRATIVE RULES REVIEW COMMITTEE

2008 Legislative Interim Report 9

ADMINISTRATIVE RULES REVIEW COMMITTEE

MembershipSen. Howard A. Stephenson, Senate ChairRep. Ben C. Ferry, House ChairSen. Gene DavisSen. Mike DmitrichSen. Mark B. MadsenSen. Michael G. WaddoupsRep. James R. GowansRep. Kory M. HoldawayRep. Carol Spackman MossRep. Merlynn T. Newbold

StaffArthur L. Hunsaker, Policy AnalystSusan Creager Allred, Associate General CounselTracey Fredman, Legislative Secretary

OVERVIEW

The Administrative Rules Review Committee wasestablished by the Legislature in the 1983 GeneralSession. Utah Code 63-46a-11(3)(b) requires theCommittee to review agency rules to ensure they do notexceed legislative authority and intent and to determine therules' impact on the economy, state and local governmentoperations, and affected individuals.

Initially, the Committee primarily reviewed proposedagency rules, which are published twice monthly in theUtah State Bulletin by the Division of Administrative Rules.However, committee members expressed concern thatexisting rules, many of which were based on broad grantsof statutory authority, had not been reviewed.

In the 1988 General Session, an appropriation wasprovided for staff to review existing rules as a componentof the Committee's review process. The Committeedirected staff to prepare legislation that would delete thebroad grants of rulemaking authority given to several stateagencies, and to work with each affected agency to ensurethe rewritten authorizing statutes would still provide neededspecific rulemaking authority. The Committee recognizedthat this review process could require several years tocomplete.

As part of an agreement between the Administrative RulesReview Committee and the governor, legislation passedduring the 1989 General Session that granted theCommittee authority to prepare annual legislationreauthorizing all state agency rules except rules specifiedin that year's bill. The Committee delayed action on broadstatutory grants until after the 1990 General Session.

From 1989 through 1994, the Committee examined therules of every state agency. Agency representatives wereprovided with a detailed analysis of their rules and met withthe Committee to consider future rule changes. Thisprocess prompted agencies to make more concise,carefully prepared rules consistent with Utah statutes.

In the 2002 General Session, for the first time, the annualreauthorization legislation repealed written statements ofstate agencies that met the definition of a rule that had notproceeded through the required rulemaking process thatincludes notice, publication, and public comment. In the2003 General Session, legislation passed clarifying that anagency's written statement conforming to the definition ofa rule can only be enforced if it has gone through thestatutorily required rulemaking process, includingpublication and public comment.

Today, the Committee meets regularly to address specificconcerns raised by legislators and the public regardingexisting and proposed state agency administrative rules.

CRIMINAL PENALTIES DETERMINED BY

ADMINISTRATIVE RULE

BackgroundIn 2005, the Committee began identifying statutes thatgrant state agencies the authority to determine, byadministrative rule, what conduct could potentially result inincarceration of the defendant.

Over a three and a half year period, the Committee metwith representatives of the agencies with these statutorygrants. Several agencies expressed a willingness to seetheir statutes amended to remove the authority to setcriminal penalties by rule; others resisted losing thisauthority. Over the course of these discussions, the

ADMINISTRATIVE RULES REVIEW COMMITTEE

10 2008 Legislative Interim Report

Committee focused on whether unelected state employeesshould be given statutory authority to determine, by rule,what actions are criminal offenses that include possibleincarceration, or whether the Legislature should withdrawthis agency authority and exclusively make thesedeterminations.

Several agencies argued that, due to federal requirements,or the inherent advantages to the state of maintainingprimacy over a federal program, they were required to setcriminal penalties by rule. After verifying theserequirements in federal law or regulation, the Committeeagreed to not repeal rulemaking criminal penalty grants inthose instances.

Committee legislation passed in the 2007 and 2008General Sessions that repealed statutory authority todesignate criminal conduct by rule from several agencies.

ActionThe Committee considered this issue at its August 11 andOctober 31, 2008 meetings and recommended draftlegislation, "Amendments to Agency RulemakingRegarding Criminal Penalties."

REAUTHORIZATION OF ADMINISTRATIVE RULES

BackgroundDuring the 1989 General Session, the Legislature passedlegislation requiring annual reauthorization of state agencyrules, except for the repeal of rules specified in thelegislation.

The Committee met with various state agencies throughoutthe year regarding specific rules of concern to committeemembers and citizens. In many cases, agencyrepresentatives agreed to make rule changes requested bythe Committee and filed those changes with the Division ofAdministrative Rules. When an agency did not change arule, the Committee examined the issues involved andweighed whether to reauthorize or repeal the rule whenpreparing its annual legislation.

Action

The Committee will consider this issue at its January 2,2009 meeting and plans to recommend draft legislation,"Administrative Rules Reauthorization."

REGENTS' SCHOLARSHIP PROGRAM

BackgroundS.B. 180, "Regents' Scholarship Program," 2008 GeneralSession, provides scholarships to students enteringcollege. The program came to the attention of theCommittee when a recent high school graduate, who tookmath from 7th to 11th grade, advised a committee memberthat she was informed that she may not qualify for thescholarship because she did not take math in grade 12.The Board of Regents' draft policy to implement thescholarship required a 12th grade math class. Wheninformed that an administrative rule, not a policy, wasrequired to implement the scholarship program, the Boardquickly filed a rule.

Committee members expressed concern that, under thecurrent rule, students who began taking core classes in 7thgrade and completed all the classes offered by their junioryear would not qualify for the scholarship and wouldessentially be penalized for excelling.

Representatives of the State Board of Regents stated thatthe proposed rule was amended so that consideration forthe scholarship will include credit for advanced placementcourses and tests completed during grades 9-12, but thatimplementation of the amendment will not be made forscholarships for FY 2008-2009 due to lack of funding andin fairness to students who complied with the currentprocess.

ActionThe Committee considered this issue at its June 4, August11, and September 8, 2008 meetings and voted torecommend to the Legislature that the rule not bereauthorized if the Board allows the rule to go into effect.

OTHER STUDIES

Exclusive Catering Services at the Capitol HillComplex

ADMINISTRATIVE RULES REVIEW COMMITTEE

2008 Legislative Interim Report 11

Current rules of the Capitol Preservation Board require thatall catering at the Capitol Hill Complex be providedexclusively by the Board's on-site food service provider.The only exception is catering services arranged for use bythe Legislature during legislative sessions.

Representatives of the Capitol Preservation Board testifiedthat, prior to the Capitol remodeling project, no exclusivecatering arrangement was in place. Damage to the buildingand other Capitol Hill facilities caused by various cateringservice providers was difficult to monitor because theBoard did not have sufficient staff to supervise the actionsof all catering services employees.

The Capitol Preservation Board distributed to theCommittee proposed changes to its Capitol Facility Userule to clarify the jurisdiction of the Board's catering serviceauthority. The Board also reported that it studiedalternative approaches, but ultimately determined that theexclusive arrangement provided the greatest assuranceagainst, and accountability for, potentially costly damageto Capitol Hill facilities.

The Committee considered this issue at its December 1,2008 meeting, where it requested that the board considerthe issue further.

12 2008 Legislative Interim Report

BUSINESS AND LABOR INTERIM COMMITTEE

2008 Legislative Interim Report 13

BUSINESS AND LABOR INTERIM COMMITTEE

MembershipSen. Kevin T. VanTassell, Senate ChairRep. Stephen D. Clark, House ChairSen. Gene DavisSen. Dan R. EastmanSen. John W. HickmanSen. Karen MayneSen. Wayne L. NiederhauserRep. Jackie BiskupskiRep. David ClarkRep. Carl W. DuckworthRep. James A. DunniganRep. Ben C. FerryRep. Kevin S. GarnRep. Todd E. KiserRep. Brian P. Monsen (as of 8/1/2008)Rep. Karen W. MorganRep. Paul A. NeuenschwanderRep. Patrick PainterRep. Gordon E. SnowRep. Mark W. Walker (until 7/6/2008)

StaffAllison M. Nicholson, Policy AnalystPatricia Owen, Associate General CounselPhalin L. Flowers, Legislative Secretary

OVERVIEW

The Business and Labor Interim Committee considersissues related to the interests of businesses, employees,consumers, and others involved in the state's economy.Safeguarding these interests involves balancing the needfor appropriate regulation with the need to foster a healthyeconomy by avoiding unnecessary governmentalinterference.

The Committee has legislative responsibility for sixdepartments and commissions: Alcoholic Beverage ControlCommission, Department of Alcoholic Beverage Control,Department of Commerce, Department of FinancialInstitutions, Department of Insurance, and LaborCommission.

Issues addressed by the Committee in recent yearsinclude regulation of construction activities, employer-employee relationships, apprenticeship programs,professional licensing, affordable health insurance,insurance regulation, workers' compensation, financialservices, consumer protection, and real estate activities.

APPRENTICESHIP PROGRAMS

BackgroundApprenticeship programs provide workers with on-the-jobtraining while at the same time completing educationalclassroom instruction. The Committee discussed variousapprenticeship programs available in the state, includingthe "Helmets to Hardhats" program and the United StatesDepartment of Labor's Office of Apprenticeship program.The Committee also toured apprenticeship programtraining sites of operating engineers and ironworkers.

The construction industry is facing an impending shortageof qualified workers as its workforce ages and youngerworkers are not entering the industry in similar numbers.The Helmets to Hardhats program is one program trying toaddress this problem, while also addressing the need toassist members of the military as they return to civilian life.Helmets to Hardhats connects National Guard, Reserve,and transitioning active-duty military members with careertraining and employment opportunities in the constructionindustry. Participants of the program can apply their skillsobtained in active duty service, including discipline,leadership, and the ability to work in a team environment.

Since the passage of the National Apprenticeship Act in1937, the United States Department of Labor's Office ofApprenticeship has approved, registered, and monitoredapprenticeship programs of private employers that meetcertain national standards. Workers who complete theseemployer-run programs receive national credentials, whichare recognized in every state. Approximately 350employers or groups of employers are participating inUtah's program, with over 3,400 registered apprentices inover 80 occupations.

Action

BUSINESS AND LABOR INTERIM COMMITTEE

14 2008 Legislative Interim Report

The Committee considered this issue at its June, August,and September 2008 meetings, but did not recommenddraft legislation. The Committee sent a letter to theGovernor encouraging support of the Helmets to Hardhatsprogram.

SECURITIES REGULATION

BackgroundThe Utah Uniform Securities Act divides regulation ofsecurities into three major categories: registration,licensing, and anti-fraud. The Division of Securitiesregisters securities to be sold in the state, licenses thoseoffering or selling securities, and investigates anti-fraudviolations that could result in administrative or civil action,or referral for criminal prosecution. The Committeeconducted a sunset review of the Act, and also revieweda legislative audit of the Division. The Committeediscussed changes that could be made at the Division asrecommended in the audit.

Some have been concerned with the review anddisciplinary process at the Division. There are proposals toconvert the Securities Advisory Board to a SecuritiesCommission that would have more extensive authority.

ActionThe Committee considered this issue at its September andNovember 2008 meetings and voted to encourage twosponsors who presented legislation to work together todevelop a single bill with the recommended changes.

WORKERS' COMPENSATION / REEMPLOYMENT

BackgroundEvery employer in Utah must carry workers' compensationinsurance, which provides compensation and medical carefor employees who are injured in the course ofemployment. Preventing injuries on the job is an importantaspect of a productive and healthy work environment.

ReemploymentThe Labor Commission administers the Utah InjuredWorker Reemployment Act to assist in returning a disabledinjured worker back to gainful employment. Various partieswork together with the injured employee to assess theneed for vocational assistance in reemployment anddevelop a plan to return the employee to work, if possible,in the same job, a modified job, or a new job with anyneeded retraining. The Committee conducted a sunsetreview of the Act and identified areas of the law thatneeded to be updated or changed.

Rocky Mountain Center for Occupational andEnvironmental HealthThe Committee received reports from and discussedfunding options for the Rocky Mountain Center forOccupational and Environmental Health (Center), which isan education and research center at the University of Utahproviding academic and clinical programs. The Center isstatutorily charged to be a resource for affectedpopulations to: (1) improve workplace health and safety,and (2) contribute to economic growth and development inUtah and surrounding regions, and reportrecommendations to the Committee on these areas. TheCenter reported on the importance of fostering employerand employee commitment to health and safety, andrecognizing the economic cost of workplace injuries andillnesses, which are estimated to be $200 billion per year.Additional recommendations included expanding trainingfor occupational health nurses and developing additionalacademic degrees in occupational health and safety.

Workers' Compensation Study - Firefighters andLaw Enforcement OfficersIn the 2006 General Session, the Legislature appropriated$500,000 to the Labor Commission to contract with anentity to perform a two-year study on presumptiveoccupational diseases for firefighters and drug lawenforcement officers. The Labor Commission contractedwith the Rocky Mountain Center for Occupational andEnvironmental Health to conduct a comprehensive reviewof prior epidemiological literature on cancers among theseworkers and conduct an epidemiological study amongUtah's police officers and firefighters.

BUSINESS AND LABOR INTERIM COMMITTEE

2008 Legislative Interim Report 15

The study had very low sample sizes, which compromisesthe validity of the data. Although the study could notconclude a link between occupation and disease, the studydid find some suggestions of elevated risks for lymphoma,melanoma, and colon and rectal cancers among policeofficers conducting methamphetamine-related tasks, andalso suggestions of elevated risks for all cancers combinedamong firefighters.

ActionThe Committee considered this issue at its June, August,October, and November 2008 meetings and recommendeddraft legislation, "Workers' Compensation PremiumAssessment and Workplace Safety Funding," and "UtahInjured Worker Reemployment Act."

OTHER STUDIES

Antidiscrimination ActThe Utah Antidiscrimination Act currently covers theclasses of race, color, sex, national origin, disability, age(over 40), and religion. Some have argued that sexualorientation and gender identity should be included asadditional classes under the Act. The Committeeconsidered this issue at its May 2008 meeting, but did notrecommend draft legislation.

Insurance RegulationThe insurance industry is a dynamic industry, and eachyear the Committee discusses changes to remain currentin the state's regulation. The Committee discussed generalchanges to Utah's insurance law, the importance ofallowing legitimate life settlement agreements whileprotecting consumers against deceptive practices, andhow reinsurance can be used as a risk management toolfor health insurers. The Committee considered this issueat its June, October, and November 2008 meetings, andrecommended draft legislation, "Insurance CodeAmendments."

Uniform LawsThe Uniform Law Commission provides states with uniformlegislation in an effort to bring consistency to certain areasof law. The Committee discussed whether Utah shouldadopt the Revised Uniform Limited Liability Company Act,

the Uniform Limited Partnership Act, and the UniformPartnership Act. The Committee considered this issue atits August 2008 meeting, but did not recommend draftlegislation.

16 2008 Legislative Interim Report

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL

2008 Legislative Interim Report 17

CHILD WELFARE LEGISLATIVE OVERSIGHTPANEL

MembershipSen. Dan R. Eastman, Senate ChairRep. Steven R. Mascaro, House ChairSen. Gene DavisRep. David LitvackRep. Paul Ray

StaffMark D. Andrews, Policy AnalystThomas R. Vaughn, Associate General CounselWendy L. Bangerter, Legislative Secretary

OVERVIEW

The Child Welfare Legislative Oversight Panel was createdin 1995 to study and recommend improvements to Utah'ssystem for preventing and responding to allegations ofchild abuse and neglect. The Panel was created followingthe 1993 Legislative Auditor General's report identifyingproblems with the state's child welfare system, thepassage of the 1994 Child Welfare Reform Act, and the1994 consent decree entered into by the state in responseto the class action lawsuit filed by the National Center forYouth Law, David C. v. Leavitt. The Legislature chargedthe Panel to:• examine and observe the process and execution of

laws governing the child welfare system by theexecutive branch and the judicial branch;

• receive testimony from the public and from all stateagencies involved with the child welfare system;

• receive reports identifying cases not in compliancewith judicial time limits;

• study and recommend proposed changes to lawsgoverning the child welfare system;

• recommend, as the Panel considers advisable,budgetary proposals;

• study actions the state can take to preserve, unify,and strengthen a child's family ties whenever possiblein the child's best interest; and

• perform such other duties related to the oversight ofthe child welfare system as the Panel considersappropriate.

DAVID C. EXIT AGREEMENT

BackgroundOn June 28, 2007, the U.S. District Court dismissed theDavid C. lawsuit, without prejudice, pursuant to an exitagreement entered into by the state and the plaintiffs.Under the agreement, the state would be allowed tooperate its child welfare system for one year without courtoversight, a final report would be prepared by the courtmonitor at the end of the one-year period, and plaintiffswould be given a final opportunity to file a petition with thecourt. Unless the court found that the state was not incompliance with the terms of the agreement, the casewould be dismissed with prejudice December 31, 2008,meaning that court oversight could not be reestablishedexcept through subsequent litigation.

During the 2008 interim, the Panel considered reportsrequired under the exit agreement, including reports by theDivision of Child and Family Services(DCFS) and the courtmonitor's final report, and reviewed the priorities usedduring the 2008 Second Special Session of the Legislatureto make adjustments to the DCFS budget. During theSpecial Session, the Legislature adjusted the budgets ofagencies throughout state government in response to theexpectation that FY 2009 revenue increases will be lowerthan originally anticipated.

Although the court monitor's report highlighted concernsabout the state's performance in three areas — ensuringconsistent, high quality feedback from quality improvementcommittees; ensuring that DCFS practices, includingcaseworker training, remain consistent with the division'sPractice Model; and ensuring that the fiscal effort requiredto preserve and enhance improvements made since 1994is maintained — the court monitor informed the court thatthe state had met the conditions of the exit agreement:

"However, CWPPG [Child Welfare Policy andPractice Group] believes that at this point, havingreviewed the Division's performance andoperations extensively over the past six months,that the Division and Department have acted ingood faith in sustaining the significant gainsmade in implementing the David C. Settlement.The current Department and Division leadership

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL

18 2008 Legislative Interim Report

is obviously committed to sustaining this reform.More importantly, CWPPG believes that theDivision and Department have maintained boththe capacity to sustain the gains made and levelsof performance present at the time of exit."

"To speak to the expectations of the Agreementto Terminate, CWPPG believes that sustainabilityrequirements have been met, but that additionalattention is needed to assure that practiceperformance as measured by the QCR continuesto meet standards and that training and thefunctioning of Quality Improvement Committeesare consistently capable of fulfilling their mission.We hope that State decision makers will continueto provide the agency the resources needed tomaintain the progress achieved."

In a letter to the Department of Human Services, the Panelaffirmed that its longstanding oversight role would continuefollowing the expected termination of David C. and notedthe Legislature's fiscal commitment to reform of the childwelfare system. It noted that since 1994, funding for DCFSalone (only one part of the overall system) had increased23 percent faster than the balance of state government.

On December 16, the National Center for Youth Lawaddressed a letter to the Honorable Governor Jon M.Huntsman, Jr.:

Dear Governor Huntsman,

I am writing to commend you and the State ofUtah for reforming your child welfare system soeffectively. When the National Center for YouthLaw filed suit in 1993, Utah had one of the mosttroubled foster care systems in the country. Now,it has one of the best. This is not an easy thing toaccomplish. It takes perseverance, skill, andgreat leadership. The Utah reforms wereachieved because of your leadership and hardwork as well as the efforts of key people in Utahsuch as Lisa-Michele Church, Duane Betournay,and the lawyers who have in recent years so ablyrepresented your interests. We all should have

great pride in what the Utah foster care systemhas become.

I also want to tell you that the National Center forYouth Law is pleased to work with your attorneysto ask the federal court to dismiss the David C.case with prejudice, effective December 31,2008. We do so with confidence and with theexpectation that you, Lisa-Michele Church, andyour able team of child welfare leaders are fullycommitted to maintaining the excellent systemyou have built in Utah. We are pleased that youare committed to ensuring that sufficientresources will be available to sustain the systemwe all have worked so hard to build. We areespecially gratified that the state's current budgetproblems are being resolved with minimal impacton the Division, and we commend you for yourpersonal commitment to ensure financialresources for the future.

NCYL will continue to monitor Utah's childwelfare system through the various meansavailable, and we stand ready to help, if thatwould be useful. You have done an exemplaryjob in bringing this lawsuit to an amicableconclusion, and we commend you.

Sincerely yours,

John F. O'TooleDirector

As of this writing, it is expected that David C. will bedismissed with prejudice December 31, 2008, following thefiling of the joint motion for dismissal with prejudicereferred to in the letter above.

ActionThe Panel considered this issue at its July, October, andDecember 2008 meetings, but did not recommend draftlegislation.

GUARDIAN AD LITEM

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL

2008 Legislative Interim Report 19

BackgroundThe Panel received a report from the Office of theLegislative Auditor General on its November 2008 in-depthfollow-up audit of the Office of the Guardian ad Litem anddetermined to review the audit recommendations further ata subsequent meeting.

The Panel considered "Guardian ad Litem Amendments,"draft legislation which addresses some of therecommendations made by the legislative audit. Amongother things, the legislation:• provides that supervision of the Office of Guardian Ad

Litem is the responsibility of the Guardian Ad LitemOversight Committee, established by the JudicialCouncil;

• places limitations on and establishes requirementsregarding the appointment of an attorney guardian adlitem in a district court proceeding;

• modifies provisions relating to the duties of anattorney guardian ad litem, a private attorney guardianad litem, and the director of the Office of Guardian AdLitem; and

• deletes provisions relating to the court's direct use ofvolunteers, and the use of peers, to assist in a minor'scase.

The Panel also considered the Office of the Guardian adLitem's FY 2010 budget request for additional funding. Theadditional funding would be used to reduce the ratio ofattorneys to support staff from 2:1 to 1:1. The fundingwould also be used to increase attorney compensation by34 percent so that salaries are comparable to those ofattorneys in the Office of the Attorney General.

ActionThe Panel considered this issue at its November 2008meeting and recommended draft legislation, "Guardian AdLitem Amendments."

OTHER STUDIES

Child Welfare RevisionsThe Panel reviewed "Amendments to Child Welfare," draftlegislation that:• amends education requirements related to enrollment

and attendance in order to comply with therequirements of the federal Fostering Connections toSuccess and Increasing Adoptions Act of 2008;

• makes the disciplinary team approach to developinga child and family plan optional;

• deletes obsolete provisions relating to records ofjuvenile court proceedings;

• deletes all provisions and references relating to FosterCare Citizen Review Boards;

• reassigns certain statutory provisions andresponsibilities of Foster Care Citizen Review Boardsto the Division of Child and Family Services;

• requires a court to attempt to keep sibling groups ofminors in state custody together, if keeping the siblinggroup together is practicable and in accordance withthe best interest of the minors;

• amends provisions relating to the conduct of periodicreview hearings for a minor in state custody; and

• makes technical changes.

The Panel considered this issue at its December 2008meeting and recommended draft legislation, "Amendmentsto Child Welfare."

Family Support CentersThe Panel received a report from the Family ConnectionCenter on family support centers' shortage of capacity tomeet the demand for nursery respite and crisis services.The Center discussed two funding alternatives: (1)increasing funding to each family support center by$30,000 ($450,000 statewide total); and (2) increasingfunding to each family support center by $30,000 andfunding two additional staff positions at each center($1,200,000 statewide total).

CHILD WELFARE LEGISLATIVE OVERSIGHT PANEL

20 2008 Legislative Interim Report

The Panel considered this issue at its December 2008meeting but did not recommend draft legislation.

Foster CareThe Utah Foster Care Foundation reported to the Panel onthe recruitment, retention, training, and needs of fosterparents in Utah and indicated that foster parenting isbecoming cost prohibitive in urban areas of the stateamong dual income families who need to pay for childcare. The Foundation noted that Utah foster parents arepaid 50 to 70 percent of the amount it costs, excludingexpenses for child care and travel, to care for fosterchildren. Raising foster care rates to levels recommendedby a study called "Hitting the M.A.R.C." would cost $3.5million.

The Panel considered this issue at its July and October2008 meetings but did not recommend draft legislation.

Kinship PlacementsThe Panel reviewed data from the Division of Child andFamily Services on the out-of-home placement of childrenwith their relatives. The Panel considered this issue at itsOctober 2008 meeting, but did not recommend draftlegislation.

Racial and Ethnic DisparitiesThe Panel reviewed Division of Child and Family Servicesdata broken down by child ethnicity. The Panel consideredthis issue at its October 2008 meeting, but did notrecommend draft legislation.

EDUCATION INTERIM COMMITTEE

2008 Legislative Interim Report 21

EDUCATION INTERIM COMMITTEE

MembershipSen. Howard A. Stephenson, Senate ChairSen. Margaret Dayton, Senate Vice ChairRep. Gregory H. Hughes, House ChairSen. Curtis S. BrambleSen. Lyle W. HillyardSen. Patricia W. JonesSen. Mark B. MadsenSen. Ross I. RomeroRep. Syliva S. AndersonRep. Brad L. DeeRep. Craig A. FrankRep. James R. GowansRep. Kory M. HoldawayRep. Bradley G. LastRep Rebecca D. LockhartRep. Ronda Rudd MenloveRep. Michael T. MorleyRep. Carol Spackman MossRep. LaWanna "Lou" ShurtliffRep. Kenneth W. SumsionRep. Stephen H. UrquhartRep. Mark A. Wheatley

StaffMs. Constance C. Steffen, Policy AnalystMr. Phillip V. Dean, Policy AnalystMr. Dee S Larsen, Associate General CounselMs. Glenda S. Whitney, Legislative Secretary

OVERVIEW

The Education Interim Committee provides oversight ofand recommends policy relating to the state systems ofpublic and higher education.

MATHEMATICS EDUCATION

BackgroundMany students entering college do not have the math skillsnecessary to succeed in college level math courses. Astudent with inadequate math skills must take a remedialcourse before enrolling in a college level math class and isnot likely to pursue a career that offers high wages, but

requires good math skills, such as engineering or a careerin the sciences.

A bill was introduced in the 2008 General Session tocreate a task force to study math education. Although thebill did not pass, a workgroup consisting of legislators,educators, and parents met throughout the 2008 interim todevelop a proposal to improve math education.

The Committee reviewed draft legislation that incorporatesthe recommendations of the workgroup. The draftlegislation provides grants to school districts and charterschools that offer Singapore math in grades kindergartenthrough 8. Singapore math is the math curriculum createdby the education ministry in Singapore for use in Singaporeschools. Singapore students are among the highestperforming students on internationally administeredmathematics tests.

ActionThe Committee considered this issue at its June 18,September 17, October 15, and November 19, 2008meetings, but did not recommend draft legislation.

PERFORMANCE-BASED COMPENSATION

BackgroundLegislation was introduced in the 2008 General Session tocreate a task force of legislators, state and local schoolboard members, and teachers to study and makerecommendations on how to implement performance-based compensation for educators. The bill did not pass;however, the Legislative Management Committee directedthe Education Interim Committee to study performance-based compensation and authorized five additionalmeetings for the study.

The Committee received testimony and presentations fromnumerous experts in performance pay and themeasurement of student learning gains. The Committeealso reviewed the one-time performance pay plans thatwere funded for the 2008-09 school year and receivedupdates on the progress of a State Board of Educationtask force studying performance pay.

EDUCATION INTERIM COMMITTEE

22 2008 Legislative Interim Report

Recognizing that budget restrictions will likely preclude thefunding of performance-based bonuses for the 2009-10school year, the Committee considered draft legislation tocreate a two-year competitive grant program to pilot thedevelopment and implementation of performance-basedcompensation plans. In the first year, a school district orcharter school that is awarded a grant will developperformance measures. In the second year, theperformance measures will be administered andcompensation awarded. The fiscal note for the first year isexpected to be relatively modest, because the grantprogram will be limited to the pilot schools, and monies willbe expended only for development of the performancemeasures, not for compensation.

ActionThe Committee considered this issue at its May 22, August21, September 17, and November 20, 2008 meetings, butdid not recommend draft legislation.

UTAH SCHOOLS FOR THE DEAF AND THE BLIND

BackgroundThe Utah Schools for the Deaf and the Blind (USDB) servechildren who are deaf, blind, or deafblind by providing: (1)self-contained classes in various regions of the state; (2)a residential campus in Ogden; (3) consulting services forstudents in school district programs; (4) parent infantprograms; and (5) instructional materials for blind students.

Unlike other public schools, funding for USDB is not basedon the weighted pupil unit. Instead, USDB receives aseparate appropriation from the Uniform School Fund. Asa state institution, USDB has no access to local propertytaxes for the funding of school operations or schoolconstruction.

Current issues pertaining to USDB include: (1) the need fora new school building in Salt Lake City; (2) provisions inUtah law that prevent USDB from providing services tostudents who are no longer performing below grade level;and (3) advocacy for students.

The Committee toured USDB facilities in Ogden and SaltLake City and received testimony from parents and others

on proposed changes to Utah law. The Committeereviewed draft legislation to modify the governance andstructure of USDB and to modify eligibility requirements forreceipt of USDB services.

ActionThe Committee considered this issue at its April 16, August20, September 18, and November 20, 2008 meetings, butdid not recommend draft legislation.

OTHER STUDIES

Computer-adaptive TestingThe Governor's Blue Ribbon Panel on Assessmentproposed a modification of the Utah PerformanceAssessment System for Students (U-PASS) to includecomputer-adaptive testing in reading, math, and science.Unlike the existing U-PASS tests that are administered atthe end of a course to determine a student's proficiency inthe course, a computer-adaptive test will be administeredthree times a year to determine a student's progress andwill measure how much a student's proficiency exceeds orfalls below grade level. To pilot computer-adaptive testing,an exemption to the U-PASS testing requirements isneeded for the pilot school districts. The Committeeconsidered this issue at its August 20 and September 25,2008 meetings and recommended draft legislation,"Student Achievement Testing Exceptions," for the 2008Second Special Session.

Grants to Obtain Advanced-level CertificationA program that awards grants to minimize teachers'expenses to obtain certification from the National Board forProfessional Teacher Standards or take tests to meethighly qualified teacher standards is scheduled to sunseton July 1, 2009. The Committee considered two bills, eachof which reauthorizes the grant program and expands it toallow grant monies to be used to obtain DistinguishedTeacher certification by the American Board forCertification of Teacher Excellence. The differencebetween the two bills is that one directs the State Board ofEducation on how to allocate the grant monies and theother gives authority to the Board to determine theallocation. The Committee considered this issue at its May

EDUCATION INTERIM COMMITTEE

2008 Legislative Interim Report 23

21 and August 20, 2008 meetings, but did not recommenddraft legislation.

Online LearningThe use of online learning is expanding in public schools.In Utah, students may take courses online through theUtah Electronic High School, the Utah Virtual Academy,which is a charter school, or school district programsoffered to home school students. The Committee receiveda presentation on advances in online instruction andreviewed draft legislation to allow school districts andcharter schools to establish student-centric learningcenters where students assemble customized onlinecourses tailored to the student's learning style. TheCommittee considered this issue at its September 17 andOctober 15, 2008 meetings, but did not recommend draftlegislation.

Property Tax and School FundingIn the 2008 General Session, the Legislature considerednumerous bills pertaining to property taxes imposed forpublic schools. One of the issues addressed was whetherschool districts should share a portion of their propertytaxes with charter schools. Because charter schools haveno taxing authority, the state is giving state income taxrevenue to charter schools in lieu of local property taxes.As the number of charter schools has increased, thosecosts have increased significantly. Another issueaddressed was whether property taxes for school buildingsshould be equalized throughout the state. A rapidlygrowing school age population is requiring some schooldistricts to build many new schools and impose propertytaxes to pay for those schools. Further legislation toaddress funding for charter schools and school buildingsis expected.

The Committee staff made a presentation on the role ofproperty taxes in funding public schools. The Committeeconsidered this issue at its September 17, 2008 meeting,but did not recommend draft legislation.

School Restructuring of Low-performing SchoolsThe federal No Child Left Behind (NCLB) law requires aschool that fails to make Adequate Yearly Progress (AYP)after five years to develop a restructuring plan and

implement the plan in the following year, if the schoolcontinues to not make AYP. Under NCLB, restructuringmeans implementing an alternative governancearrangement, including: (1) reopening as a charter school;(2) replacing school staff; (3) entering into a contract witha private management company to operate the school; (4)turning the operation of the school over to the state; or (5)other significant change in the school staff or governance.Surveys of restructuring efforts nationwide reveal that fewschool districts have opted to contract with a private entity,convert a school to a charter school, or turn the operationof a school over to the state. Generally, school districts optto make other changes to the school's staff or governance,such as: (1) creating smaller learning communities; (2)expanding or narrowing the grade range; or (3) reopeningas a theme school.

In 2008, the Uinta School District was required torestructure a middle school. The school district opted tocombine the middle school with an elementary school. TheCommittee considered this issue at its April 16, 2008meeting, but did not recommend draft legislation.

24 2008 Legislative Interim Report

GOVERNMENT OPERATIONS INTERIM COMMITTEE

2008 Legislative Interim Report 25

GOVERNMENT OPERATIONS INTERIMCOMMITTEE

MembershipSen. Peter C. Knudson, Senate ChairRep. Douglas C. Aagard, House ChairSen. Gregory S. BellSen. Brent H. GoodfellowPres. John L. ValentineRep. Ron BigelowRep. DeMar "Bud" BowmanRep. Glenn A. DonnelsonRep. Lorie D. FowlkeRep. Keith GroverRep. Neil A. HansenRep. Neal B. HendricksonRep. Eric K. HutchingsRep. John G. MathisRep. Curtis OdaRep. Larry B. Wiley

StaffBenjamin N. Christensen, Policy AnalystChristopher R. Parker, Associate General CounselChelsea Barrett, Legislative Secretary

OVERVIEW

The Government Operations Interim Committee considersa broad range of issues, including elections, campaignfinance, ethics, government records access andmanagement, appropriations and bonding, open and publicmeetings, personnel, boards and commissions, andadministrative services. The Committee considers policyquestions with statewide implications, receives testimonyfrom concerned groups and state agencies, and makesrecommendations to the Legislature.

The Committee has legislative responsibility for severaldepartments and agencies of state government, includingthe offices of the Governor, Lieutenant Governor, AttorneyGeneral, State Auditor, and State Treasurer; theGovernor's Office of Planning and Budget; the Departmentof Administrative Services; and the Department of HumanResource Management. The Committee also has primaryresponsibility for the following titles of the Utah Code: Title

20A, Election Code; Title 36, Legislature; Title 63A,Administrative Services; Title 63B, Bonding; Title 63G,General Government; Title 63I, Oversight; Title 63J,Budgeting; Title 63K, Emergency Management; Title 63M,Governor's Programs; and Title 67, State Officers andEmployees.

BALLOT COORDINATION FOR LOCAL DISTRICTS AND

MUNICIPAL ELECTIONS

BackgroundCurrently, a single ballot is provided to voters on electionday and includes all races except local and special servicedistrict races. Separate ballots for district races causeconfusion and inconvenience to voters who may find itdifficult to navigate separate ballots and perhaps berequired to vote in different polling places on election day.This issue has been explored in recent years and hasproven to be much more complex than first thought. Eachvoter is entitled to vote on a number of races and issuesbased on the voter's primary residence. To coordinateelection ballots to provide a single ballot, each home andvoter in the state must be correctly identified as to address,voting precinct, each local district boundary, legislativehouse and senate districts, municipality, county, U.S.congressional district, and others. Under Utah Code 17B-1-306, an election for local district board members must beheld at the same time as the municipal general electionand at polling places designated by the county clerk. Theclerk is required to coordinate the placement of localdistrict offices in the nonpartisan section of the municipalgeneral election ballot unless it is not feasible. Exceptionsapply for irrigation, electric, and gas improvement districts.

During the May 2008 meeting, after a presentation anddiscussion about placing local district races on the sameballot as other elections, the Committee invited the countyclerks to develop a proposal that might allow a single ballotto be a reality. The clerks formed a committee and heldseveral meetings to discuss the logistics, options, andsteps that would be needed to achieve a single ballot. Thefindings and recommendations of that committee werepresented to the Committee at its September 2008meeting. The findings and recommendations included:• giving special districts the option of by-mail elections;

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26 2008 Legislative Interim Report

• providing greater coordination of polling places;• installing new software to allow for GIS identification

of voter residences; and test/demonstrating electionsusing new data systems.

After study by the county clerks, a multi-year approachwas suggested, with two bills moving forward this year forthe Committee's consideration.

ActionThe Committee considered this issue at its May,September, and November 2008 meetings. TheCommittee recommended draft legislation, "CoordinatingMunicipal and Special District Elections," and "Local andSpecial Service District Election Amendments."

ELECTION LAW CHANGES

BackgroundUtah Code, Title 20A, Election Code, contains detailedprovisions for the administration of Utah elections. Eachyear a number of issues are raised that requireconsideration by the Legislature. Although many of theissues are technical and administrative in nature, othersmay require a more substantive policy determination.During the 2008 interim, the Office of the LieutenantGovernor and the Association of County Clerks brought anumber of issues to the Committee for consideration. Theissues that were technical and administrative in naturewere addressed in draft legislation prepared for theCommittee's consideration. The other issues werepresented separately by representatives of the lieutenantgovernor and county clerks, and were addressed by draftlegislation at the direction of the Committee. Table 1 (seepage 30) provides a list of the issues and final committeeactions.

ActionThe Committee considered this issue at its June, August,October, and November 2008 meetings and recommendeddraft legislation:• "Ballot Question Amendments,"

• "Declaration of Candidacy Amendments,"• "Early Voting Amendments,"• "Election Law Changes,"• "Online Voter Registration," and

• "Voter Challenge Amendments."

OPEN AND PUBLIC MEETINGS ACT - PROVISIONS OF

OPEN MEETING MINUTES

BackgroundThe Open and Public Meetings Act (OPMA) requires thecreation of certain records, including written minutes andrecordings of meetings. The disclosure of these records isregulated under the Government Records Access andManagement Act (GRAMA). The Committee discussedhow soon after a meeting a citizen should be able to get acopy of the minutes or recording of an open meeting.Balancing the need for timely release of minutes with apublic body's ability to finalize them has been raisedrecently in the Legislature and remains an issue.

A citizen or the media may want a copy of the minutes ofa public meeting before the entity may have completedthem because of administrative delays, including staffworkload, member review, or other issues. In somecircumstances, if the minutes are not available in a timelymanner, they may not be helpful at all. Utah Code 52-4-203(4) states that minutes and a recording must beavailable within a reasonable time after the meeting. Thestatute does not define what is a reasonable time. UtahCode 63G-2-305(22) and 63G-2-301(3)(j) and (k) providethat drafts, which include drafts of minutes, are protectedrecords, but require disclosure of drafts that are externallycirculated or relied upon in carrying out action or policy.OPMA uses the term "written minutes" but does notaddress or make a distinction between "unapproved"minutes and "approved" minutes and does not mention theapproval of minutes.

After hearing public testimony during the September 2008meeting, the Committee asked interested parties to providetheir recommendations to committee staff so that draftlegislation could be prepared to address key issuesregarding the availability of minutes of open meetings.Three issues emerged from the meeting: (1) making therecording available early; (2) making draft minutesavailable without waiting for approval; and (3) requiringapproval of minutes. Draft legislation was prepared anddiscussed during the next two meetings.

GOVERNMENT OPERATIONS INTERIM COMMITTEE

2008 Legislative Interim Report 27

ActionThe Committee considered this issue at its September,October, and November 2008 meetings and recommendeddraft legislation, "Open and Public Meetings Act - MeetingRecord."

STATE PER DIEM STANDARDIZATION FOR STATE

AGENCY BOARDS

BackgroundUnder Utah Code 63A-3-106, the Division of Finance isrequired to "establish per diem rates for all state officersand employees of the executive branch...for attendance atofficial meetings." These rates, in Administrative Code(R25-5-4), are set at $60 per diem for each official meetingattended that lasts up to four hours and $90 for a meetinglasting longer than four hours. This per diem rate is thedaily allowance for subsistence expenses for state policyboards, advisory boards, councils, and committees. Figure1 (see page 31) shows the state agencies' boards forwhich standard statutory language referring to the Divisionof Finance rates are used.

ActionThe Committee voted to have staff prepare standardlanguage for per diem paid to state agency boards that arenot currently using standardized language and to have theDivision of Finance share recommendations to update theper diem amounts. The Division reported that after asurvey of state agencies and of surrounding states andconsidering the current down-turn in the economy, noincrease in the standard rates is recommended at thistime. The Committee considered this issue at its June andOctober 2008 meetings and recommended draftlegislation, "Per Diem and Travel Expenses for StateBoards and Commissions."

OTHER STUDIES

Citizen Requests and Ombudsman ProcessesDuring the 2007 interim, the Committee discussed whetherombudsmen and 211 information services should beexpanded and what other options are available to provideinformation to assist citizens and agencies in answeringinquiries or resolving disputes involving governmentservices. During those discussions, a representative fromthe Department of Community and Culture offered to studyother agencies and existing 211 information services andreport back potential ways to improve citizens' requests forassistance from state government. The report includedfindings of a study of methods for state agencies torespond to citizen inquires and resolve disputes involvinggovernment services. The recommendations includedcollaborating with the existing 211 information services,adopting a best practices guide, and providing training andresource sharing for front line personnel on complaint-handling systems for executive branch agencies.

The Committee considered this issue at its August 2008meeting, but did not recommend draft legislation.

Debt CollectionThe Office of State Debt Collection of the Department ofAdministrative Services has overall responsibility forcollecting and managing state receivables, developingconsistent policies governing the collection andmanagement of state receivables, and overseeing andmonitoring state receivables. The Office reported that $284million in outstanding receivables are owed to the stateand it is undertaking a pilot program using bank andemployer garnishment to collect certain debt.

The Committee considered this issue at its June 2008meeting, but did not recommend draft legislation.

Division of Facilities Construction and Management(DFCM) Five-Year Building Program and Master Planfor State Office Space NeedsUnder Utah Code 63A-5-103, the State Building Board isrequired to prepare a master plan for state structures incooperation with state institutions, departments,commissions, and agencies and to keep current the five-

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28 2008 Legislative Interim Report

year building program for the state. With some exceptions,DFCM supervises the design and construction of projectsin the five-year program. Proposed projects are evaluatedbased on six scoring objectives and criteria for establishinghow well each project will satisfy each objective. Eachobjective is then weighed for final scoring. This evaluationmethod is designed to provide an objective score fromwhich the board can prioritize each proposed project. Inaddition, the Division recently completed a master plan ofstate government office space needed for future use in theSalt Lake City area. DFCM reported on the building boardfive-year building program, the capital budget fundinghistory, construction project status, and the master plan.

During the 2008 General Session, the Legislatureapproved $670,781,200 in state funded building projects,which includes $247 million from state funds (GeneralFund and Education Fund) and $218.7 million in donatedhigher education funding. Due to projected budget shortfalls, the amount of state funding was reduced by $15million during the 2008 Second Special Session to $232million.

In 2006, DFCM completed a study titled "Salt Lake AreaState Government Office Building Master Plan," whichidentified the state's office space needs in the Salt LakeArea over the next 20 years. The study estimates that thestate has an immediate office space shortage of 154,000sq. ft. Over the next ten years the shortage is estimated at325,000 sq. ft. and 450,000 sq. ft. over the next 20 years.Since the study, the state has sold the Human ServicesAdministration Building (136,000 sq. ft.) and funded theconstruction of a new Multi Agency Office Building(150,000 sq. ft.) for Human Services and EnvironmentalQuality. After these actions, and two years into the 10-yearplan, the immediate space shortage is currentlyapproximately 70,000 sq. ft. Projects that could addressthe immediate and remaining 10-year space needs includethe World Trade Center (100,000 sq. ft. downtown officebuilding), a new Multi Agency Office Building (125,000 to150,000 sq. ft.) at one of the state-owned properties in SaltLake, and the potential demolition and reconstruction ofthe State Office Building.

The Committee considered this issue at its April andAugust 2008 meetings, but did not recommend draftlegislation.

Four-day Work Week for State EmployeesOn June 26, 2008, the Governor announced the "Working4 Utah" initiative, which requires most state agencyemployees to shift to a four-day, ten-hour work schedule.State government service hours changed to 7:00 a.m. to6:00 p.m., Monday through Thursday beginning August 4,2008, with offices closed on Fridays. Essential publicservices that already run on extended hours and during theweekends remain open. Conserving energy and enhancingcustomer service are two purposes given for the change,which will be evaluated after the first year. Surveys haveindicated that most state employees welcome the change.A representative of the Department of Human ResourceManagement reported on the background andimplementation of a four-day work week for stateemployees and said the estimated economic impact is $14million, which includes employee vehicle savings, buildingenergy savings, and reallocation of expenditures into theeconomy.

The Committee considered this issue at its August 2008meeting, but did not recommend draft legislation.

State Capitol Complex Construction Projects andPlansThe State Capitol Preservation Board exercises jurisdictionand stewardship over Capitol Hill facilities, Capitol Hillgrounds, and the State Capitol Complex, with theexception of certain areas reserved under legislativecontrol. The Board is required to preserve, maintain, andrestore the State Capitol Complex, facilities, grounds, andtheir contents through an annual work plan and along-range master plan. The employee parking structureeast of the Capitol was completed in December 2007. Therenovated and seismically upgraded Capitol was dedicatedon January 4, 2008, and was used for the 2008 GeneralSession. Currently, renovations are nearing completion onthe East and West buildings.

The Committee considered this issue at its June 2008meeting, but did not recommend draft legislation.

GOVERNMENT OPERATIONS INTERIM COMMITTEE

2008 Legislative Interim Report 29

State Property AcquisitionThe Utah Department of Transportation (UDOT) acquiresseveral hundred parcels of property each year, much morethan any other state entity. The Division of FacilitiesConstruction and Management (DFCM) and other stateagencies also occasionally acquire property for stateprojects. Reports have surfaced which claim that, at times,a seller will inflate the selling price after the seller becomesaware that the state is the potential buyer. Representativesof these agencies reported that they plan to work togetherto coordinate expertise to help ensure more efficient andfair acquisitions and avoid having to pay inflated prices forproperty.

The Committee considered this issue at its September2008 meeting, but did not recommend draft legislation.

Utah State Personnel Management Act RevisionsIn recent years, the Department of Human ResourceManagement has been working on finding ways to improveemployee compensation, productivity, and efficiency.During the May 2008 meeting, the Department of HumanResource Management made a proposal to rewrite theUtah State Personnel Management Act to updatepersonnel systems to modern personnel practices. Theseplans have been delayed due to concerns about changingmerit system employee grievance procedures.

The Committee considered this issue at its May 2008meeting, but did not recommend draft legislation.

GOVERNMENT OPERATIONS INTERIM COMMITTEE

30 2008 Legislative Interim Report

Table 1 Election Law Changes

Issue Advocate Final Committee Action

1. Address technical and administrativeissues in a technical amendment bill

Office of the Lieutenant Governor Draft legislation recommended by theCommittee: "Election Law Changes"

2. Move the declaration of candidacy periodback so that it does not open during theGeneral Session, which has moved back aweek with the passage of ConstitutionalAmendment C

Office of the Lieutenant Governor Draft legislation recommended by theCommittee: "Declaration of CandidacyAmendments"

3. Move the deadline for unaffiliatedpresidential candidates nominations fromMarch 17 to August 15

Office of the Lieutenant Governor Draft legislation recommended by theCommittee: "Election Law Changes"

4. Allow unaffiliated presidential candidatesto file nomination petitions using an agent

Office of the Lieutenant Governor Draft legislation recommended by theCommittee: "Election Law Changes"

5. Provide that ordinances that are thesubject of a local referenda do not remain ineffect until after the election

Office of the Lieutenant Governor No action taken

6. Restore the definition of "media owner" orrepeal Utah Code 20A-11-102 regardingfiling a statement of ownership of apublication before printing matter that tendsto influence voting in an election

Office of the Lieutenant Governor No action taken

7. Allow online voter registration Office of the Lieutenant Governor Draft legislation recommended by theCommittee: "Online Voter Registration"

8. Update voter challenge laws requiringclear documented reasons for challengeand provide penalties for maliciouschallenges

Association of County Clerks Draft legislation recommended by theCommittee: "Voter Challenge Amendments"

9. Limit the number of characters or wordsfor questions on the ballot due to spaceconstraints

Association of County Clerks Draft legislation recommended by theCommittee: "Ballot Question Amendments"

10. Add a voter's date of birth from a voterregistration record to the list of recordsclassified as private under GRAMA

Association of County Clerks Draft legislation prepared but norecommendation was made by theCommittee: "Access to Voter Date of BirthRecords"

11. Repeal the requirement that Salt LakeCounty have an early voting location ineach state Senate district

Association of County Clerks Draft legislation recommended by theCommittee: "Early Voting Amendments"

GOVERNMENT OPERATIONS INTERIM COMMITTEE

2008 Legislative Interim Report 31

Updated Language 144.4%

Old Language 233

73.0%

No Language 28

8.8%Non Standard Language 36

11.3%Per Diem Not Allowed 8

2.5%

State Per Diem Language for State Agency Boards

Boards Using Rates Set by the Division of FinanceCurrent Standard Rate:$60 for a meeting up to four hours;$90 for a meeting that goes over(Administrative Rule R25-5-4)

Total = 319

Figure 1

32 2008 Legislative Interim Report

HEALTH AND HUMAN SERVICES INTERIM COMMITTEE

2008 Legislative Interim Report 33

HEALTH AND HUMAN SERVICES INTERIMCOMMITTEE

MembershipSen. D. Chris Buttars, Senate ChairRep. Paul Ray, House ChairSen. Allen M. ChristensenSen. Jon J. GreinerSen. Scott D. McCoyRep. John DougallRep. Jack R. DraxlerRep. Julie FisherRep. Wayne A. HarperRep. David LitvackRep. Rosalind J. McGeeRep. Merlynn T. NewboldRep. Phil RiesenRep. Stephen E. Sandstrom

StaffMark D. Andrews, Policy AnalystCatherine J. Dupont, Associate General CounselThomas R. Vaughn, Associate General CounselJoy L. Miller, Legislative Secretary

OVERVIEW

The Health and Human Services Interim Committeeconsiders a wide range of issues related to public health,health care providers, healthcare facility licensing, healthinsurance, access to health care, mental health, aging,persons with a disability, child abuse, and substanceabuse. The Committee provides oversight to many of theprograms administered by the Department of Health andthe Department of Human Services.

DISABILITY FUNDING

BackgroundThe Committee was briefed by the Department of HumanServices (DHS) on options for addressing the needs ofpersons awaiting services from the Division of Services forPeople with Disabilities. The Executive Director of DHSsummarized her understanding of the Committee'sdirections as follows:

• the strategy of funding interventions for people otherthan those at the top of the waiting list, implementedthree years ago, is still consistent with where theLegislature wishes to go;

• the Legislature is fairly comfortable with the waiting listinterventions chosen by DHS but wants to make surethat each pans out after a two-year test period; and

• respite care should be evaluated on how it does andwhat effect it has had prior to funding it on an ongoingbasis.

The Committee also received testimony from the DisabilityLaw Center on the need for all concerned to be willing tocommit to making the hard choices necessary to facilitatethe shift from a system rooted in institutional care to onefounded on community-based supports.

ActionThe Committee considered this issue at its May 2008meeting, but did not recommend draft legislation.

EXPEDITED PARTNER THERAPY

BackgroundChlamydia, a sexually transmitted disease, is by far themost frequently occurring reportable communicabledisease among Utahns. The U.S. Center for DiseaseControl and Prevention has published the followingguidance on the use of expedited partner therapy (EPT) totreat chlamydia and other sexually transmitted diseases:

"Both clinical and behavioral outcomes of theavailable studies indicate that EPT is a usefuloption to facilitate partner management amongheterosexual men and women with chlamydialinfection or gonorrhea. The evidence indicatesthat EPT should be available to clinicians as anoption for partner management, although ongoingevaluation will be needed to define when andhow EPT can be best utilized. EPT represents anadditional strategy for partner management thatdoes not replace other strategies, such asstandard patient referral or provider-assistedreferral, when available."

EPT enables a medical practitioner to prescribe anantibiotic for a sex partner of a patient treated for a

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34 2008 Legislative Interim Report

sexually transmitted disease, even though the doctor doesnot have a doctor-patient relationship with the patient's sexpartner.

The Committee considered draft legislation that wouldenable the use of EPT as a means of treating chlamydiaand gonorrhea. The Department of Health; the Utah FoodIndustry Association; the Utah Retail MerchantsAssociation; an infectious disease specialist at theUniversity of Utah; and a board certifiedobstetrician/gynecologist spoke in support of thelegislation.

ActionThe Committee considered this issue at its October andNovember 2008 meetings and recommended draftlegislation, "Expedited Partner Therapy Treatment."

LOCAL HEALTH DEPARTMENT FUNDING

BackgroundThe Committee met jointly with the Political SubdivisionsInterim Committee and considered a request by localhealth departments that the Legislature study severalalternatives for increasing funding to local healthdepartments to enable them to better meet local needs byproviding services not mandated by the state or the federalgovernment. The Committee chairs agreed to follow up onfour issues:• creation of an emergency fund to be funded by state

revenues and a local property tax;• imposition of a cigarette tax earmarked for local health

department activities;• mandatory use of the state/local consensus approach

for allocation of federal grants to local healthdepartments; and

• consideration of additional information, to berequested from local health departments as follows:< List each local health department duty and the

source of the duty (federal statute, federalregulation, state statute, state regulation,county/local health department ordinance,historical practice, etc.).

< List the activities used to fulfill each duty and thesource of funding during the past fiscal year for

each activity (license and user fees, penalties,ceiling-exempt property tax levy for public health,and other county revenues; state funds; federalfunds; etc.). For each activity, list any revenuesgenerated above and beyond, or in addition to,those used to fund the activity.

< Describe how activities to fulfill the duty varyacross health departments for each local healthdepartment duty. Are there state or nationallyrecognized standards related to those activities?How far above or below those standards is eachdepartment? Are there more effective activitiesdepartments could pursue to fulfill the duty?

< Does any fee imposed by a local healthdepartment duplicate a fee imposed by anotherstate or local agency?

At subsequent meetings the Committee received a writtenreport from the Utah Association of Local HealthDepartments on local health department duties andfunding sources and the Political Subdivisions InterimCommittee studied and recommended several pieces ofrelated legislation.

ActionThe Committee considered this issue at its August andNovember 2008 meetings, but did not recommend draftlegislation.

MEDICAL MALPRACTICE ARBITRATION AGREEMENTS -SUNSET REVIEW

BackgroundThe Committee considered whether to reauthorize UtahCode 78B-3-421, which governs the use of medicalmalpractice arbitration agreements. The Utah Associationfor Justice (formerly Utah Trial Lawyers Association) spokein favor of reauthorization because of the protections thesection provides for patients. Chief among thoseprotections is that a patient may not be denied health caresimply because the patient refuses to enter into a bindingarbitration agreement with the provider. The Utah MedicalAssociation indicated that it does not matter whether UtahCode 78B-3-421 is reauthorized or not. Either way, theexisting program of arbitration will continue. However, if the

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2008 Legislative Interim Report 35

statute is reauthorized, the Association recommended thatit be moved to Title 78B, Chapter 11, Utah UniformArbitration Act.

ActionThe Committee considered this issue at its November2008 meeting and recommended that the sunset date forUtah Code 78B-3-421 be extended for 10 years and thatUtah Code 78B-3-421 be placed within Title 78B, Chapter11, Utah Uniform Arbitration Act.

UTAH SUDDEN CARDIAC ARREST SURVIVAL ACT

BackgroundThe Committee considered draft legislation that wouldenact a Utah Sudden Cardiac Arrest Survival Act andamend related civil liability immunity provisions. Thelegislation removes a training requirement for lay personsthat use an automatic or automated external defibrillator.

The Committee received testimony from the draft bill'ssponsor and the South Jordan Fire Chief.

ActionThe Committee considered this issue at its September2008 meeting and recommended draft legislation, "UtahSudden Cardiac Arrest Survival Act."

OTHER STUDIES

AdoptionThe Committee reviewed draft legislation supported by theUtah Adoption Council that amends various provisions ofthe Utah Adoption Act.

The Committee considered this issue at its November2008 meeting and recommended draft legislation,"Adoption Revisions."Assertive Community Treatment Team Pilot ProgramThe Committee received testimony from the sponsor ofdraft legislation, National Alliance on Mental Illness (NAMI)Utah, and the Disability Law Center about a proposedAssertive Community Treatment Team Pilot Program thatwould allow persons with serious and persistent mentalillness who have failed to respond to other treatment to

stay in their homes and communities rather than enterlong-term care.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

AutismThe Committee received a report from the Utah AutismInitiative, an interagency workgroup created by theDepartment of Health last year, on its work to identifyexisting resources for persons with autism and developrecommendations for extending the availability of thoseresources. The Committee also considered a proposal bya mother of a child with autism to require health insurancecoverage of autism services.

The Committee considered this issue at its May 2008meeting, but did not recommend draft legislation.

Availability of Mental Health Records in ClinicalSettingsThe Committee received testimony from an individualwhose relative committed suicide. The individual pointedout that when a patient with a mental problem visits amedical provider, there should be a mechanism forinforming the provider of any previous visits made by thepatient to other medical providers. As follow-up to thissuggestion, the Committee received a report from the UtahHealth Information Network on how the implementation of2008 General Session H.B. 47, "Standards for ElectronicExchange of Clinical Health Information," will apply tomental health records.

The Committee considered this issue at its June 2008meeting, but did not recommend draft legislation.

Death Certificate ProceduresThe Committee studied whether changes could be madeto improve the process followed by funeral directors,physicians, and the Department of Health for the filing ofdeath certificates.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

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36 2008 Legislative Interim Report

Detection of Public Health Emergencies ActThe Committee conducted a sunset review of Title 26,Chapter 23b, Detection of Public Health Emergencies Act,and recommended that it be removed from the LegislativeOversight and Sunset Act.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

Determination of Criminal ConductThe Committee reviewed draft legislation developed andrecommended by the Administrative Rules ReviewCommittee, and supported by the Department of Health,that repeals the Department's and other state agencies'authority to determine by rule what constitutes criminalconduct.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

Emergency Medical Services - Treat and ReleaseFeesThe Committee received testimony from the Department ofHealth that the Department is planning to repeal theexisting fee structure for emergency medical servicesproviders, which includes a "treat and release" fee, andreplace it with three fees: a base fee, a fee for mileage,and a fee for supplies.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

Family Support CentersThe Committee received a report from the FamilyConnection Center on the shortage of capacity in familysupport centers to meet the demand for nursery respiteand crisis services.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

Health DisparitiesThe Committee received reports from the Department ofHealth on the extent of health disparities in Utah and fromthe Utah Multicultural Health Network on promising

practices and the impact of culturally and linguisticallyappropriate services, including interpretation services, onhealth care disparities.

The Committee considered this issue at its June 2008meeting, but did not recommend draft legislation.

Health System Reform Task ForceThe Committee received a report from the chairs of theLegislature's Health System Reform Task Force on thework of the Task Force. The chairs reported that during the2009 Annual General Session eight to ten pieces oflegislation may be introduced to implement health carereforms considered by the Task Force.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

Insurance MarketingThe Committee considered draft legislation that wouldrequire health insurers to refund unearned premiums topersons who have canceled an insurance policy. Thislegislation grew out of the Insurance Department's concernthat in some cases when an insured has canceled aMedigap insurance policy with a foreign carrier, the carrierhas not refunded the unearned portion of the premium.

The Committee considered this issue at its September andOctober 2008 meetings and recommended draftlegislation, "Refund of Unearned Health InsurancePremiums and Medicare Supplement InsurancePremiums."

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2008 Legislative Interim Report 37

Licensed Direct-entry Midwives - Annual ReportThe Committee received the licensed direct-entry midwivesannual report from the Licensed Direct-entry MidwifeBoard.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

Medical Examiner's OfficeThe Committee was briefed by the State Medical Examineron the duties, workload, and funding of the Examiner'soffice and alternatives for addressing insufficient funding ofthe office.

The Committee considered this issue at its May 2008meeting, but did not recommend draft legislation.

National Epidemiology Surveillance SystemThe Committee received a report by the Department ofHealth on the need to implement the NationalEpidemiology Surveillance System, a real-timeepidemiological surveillance system.

The Committee considered this issue at its September2008 meeting, but did not recommend draft legislation.

Obesity PreventionThe Committee received a report from the Department ofHealth on past and future activities by the Department toprevent obesity, including the Gold Medal Schools programand a new federal grant. The Committee also received areport from the Utah Partnership for Healthy Weight on itsrole in obesity prevention.

The Committee considered this issue at its August 2008meeting, but did not recommend draft legislation.

Pediatric Mental Health ServicesThe Committee studied a proposal to developcommunity-based mental health services in lieu ofreplacing the pediatric facility for child and adolescentmental health services at the Utah State Hospital. TheCommittee received testimony from the Department ofHuman Services, the Division of Substance Abuse and

Mental Health, NAMI Utah, The Children's Center, andAllies with Families.

The Committee considered this issue at its June 2008meeting, but did not recommend draft legislation.

Performance Audit of Davis Behavioral HealthThe Committee received a report from the Office of theLegislative Auditor General on its July 2008 audit of DavisBehavioral Health. The Committee also received testimonyfrom Davis Behavioral Health, the Davis Behavioral HealthBoard of Trustees, a Davis County commissioner, and theDivision of Substance Abuse and Mental Health. As follow-up to this issue, the Division of Substance Abuse andMental Health will provide the Committee with the resultsof the Division's January 2009 annual audit of DavisBehavioral Health and will provide the Legislature withinformation on reserve funds kept by local mental healthauthorities.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

Pilot Program for Family Preservation ServicesThe Committee conducted a sunset review of the PilotProgram for Family Preservation Services ( Utah Code62A-5-103.2), administered by the Division of Services forPeople with Disabilities, and recommended that it beconverted to an ongoing program and reauthorized for fiveyears.

The Committee considered this issue at its October andNovember 2008 meetings and recommended draftlegislation, "Family Preservation Services Amendments."

Preferred Drug ListThe Committee received a report from the Department ofHealth on its implementation of a Medicaid preferred druglist authorized by legislation in 2007. The Departmentexpects net savings from implementation of the preferreddrug list to total $1 million in FY 2009.

The Committee considered this issue at its September2008 meeting, but did not recommend draft legislation.

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38 2008 Legislative Interim Report

Substance Abuse and MisuseIn 2007 the Legislature required the Department of Healthto conduct a two-year study of the use and misuse ofopiates prescribed for chronic pain, to provide education toproviders, patients, and others on proper chronic painmanagement, and to make recommendations to theLegislature. During the 2008 General Session theLegislature directed the Division of Occupational andProfessional Licensing to implement a pilot program forreal-time reporting and access to the controlled substancedatabase.

The Committee received testimony from the Department ofHealth, the Division of Occupational and ProfessionalLicensing, the Utah Medical Association, and the UtahHospitals and Health Systems Association on prescriptionopiate misuse and addiction and the implementation of thepilot program.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

Treatment of Mentally Ill OffendersThe Committee received testimony from the Division ofSubstance Abuse and Mental Health, NAMI Utah, and theSalt Lake County Attorney's Office on addressing themental health needs of persons that either are in, or couldenter, the criminal justice system.

The Committee considered this issue at its September2008 meeting, but did not recommend draft legislation.

Utah Commission on AgingThe Committee conducted a sunset review of the UtahCommission on Aging (Title 63M, Chapter 11) andrecommended that it be reauthorized for three years.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

HEALTH SYSTEM REFORM TASK FORCE

2008 Legislative Interim Report 39

HEALTH SYSTEM REFORM TASK FORCE

MembershipSen. Sheldon L. Killpack, Senate ChairRep. David Clark, House ChairSen. Gregory S. BellSen. Gene DavisSen. Peter C. KnudsonRep. Roger E. BarrusRep. Jackie BiskupskiRep. Bradley M. DawRep. David LitvackRep. Merlynn T. NewboldRep. Patrick Painter

StaffMark D. Andrews, Policy AnalystCatherine J. Dupont, Associate General CounselJohn T. Nielsen, Advisor to the Governor on Health System ReformPhalin L. Flowers, Legislative Secretary

OVERVIEW

In the 2008 General Session, H.B. 133, "Health SystemReform," created the Health System Reform Task Forceand charged it with reviewing and making"recommendations on the state's development andimplementation of [a] strategic plan for health systemreform." Elements included in the plan and reviewed by theTask Force were spelled out in the legislation.

To discharge its duties, the Task Force met nine times andconsidered a wide range of options and proposals toreform Utah's health care system. The Task Force reliedheavily on the work of five stakeholder groups that metfrequently and produced recommendations for the TaskForce. These groups represented employers, insurers,hospitals, medical practitioners, and the community atlarge.

H.B. 133 also charged various executive branch agencieswith specific tasks that laid the foundation for significantconsumer-oriented, market-driven health care reform.Many of these tasks are well under way, including thedevelopment of a standardized, simplified health insurance

application form, creation of an Internet portal that may beintegral to various reform initiatives, and the submission ofMedicaid waivers that will expand the use of state andfederal monies to encourage coverage in the commercialinsurance market.

HEALTH CARE REFORM

BackgroundThe Task Force reviewed the current state of Utah's healthcare system and studied a wide range of options forimproving it. The Task Force's work was organized aroundsix major areas of potential reform:• reforming the health insurance market to increase the

availability of plans that:< can be selected by an employee from a menu of

plans,< are portable across employers,< can be purchased with multiple funding sources,

and< are more affordable than existing choices;

• promoting individual responsibility for personal healthbehaviors and accountability for the consequences ofthose behaviors;

• promoting the development and use of best practiceprotocols and consider increasing liability protectionfor providers that follow those protocols;

• maximizing the use of federal and state taxpreferences;

• optimizing the use of public health care programs,including their use to promote private insurancecoverage; and

• allowing state employees to participate in thereformed health insurance market and createpreferences for state contractors that provide healthinsurance benefits to their employees.

The Task Force received input from many individuals andorganizations, including:• Advisor to the Governor on Health System Reform• America's Health Insurance Plans• Association of General Contractors• Association for Utah Community Health• Consumers for Health Care Choices• Department of Health

HEALTH SYSTEM REFORM TASK FORCE

40 2008 Legislative Interim Report

• Division of Purchasing and General Services• Division of Health Care Financing• Governor's Office of Planning and Budget• Health Behavior Innovations• HealthInsight• Heritage Foundation• Insurance Department• Intermountain Healthcare• Legislative Coalition for People with Disabilities• National Federation of Independent Business• O.C. Tanner• Office of Consumer Health Services• Pacific Research Institute• Prometheus Payment, Inc.• Regence BlueCross BlueShield of Utah• Salt Lake Chamber of Commerce• Show-Me Institute• Sutherland Institute• UnitedHealthcare• University Health Care• Utah Health Information Network• Utah Comprehensive Health Insurance Pool

(HIPUtah)• Utah Health Insurance Association• Utah Health Policy Project• Utah Hospitals and Health Systems Association• Utah Medical Association• Utah Medical Home Pilot Project• Utah Oral Health Coalition• Utah Restaurant Association

In addition to the input of these organizations, the TaskForce relied upon the ideas and suggestions of manyindividual businesses, hospitals, health care practitioners,insurers, insurance brokers, and ordinary citizens providedduring numerous meetings of the Task Force's fivestakeholder groups.

Each of the Task Force's stakeholder groups madespecific recommendations for reform. Highlights of thoserecommendations and other options considered by theTask Force include:• creating of a new health insurance market that would

be based on the state's health insurance internet

portal and serve as a pilot program to test reformconcepts;

• creating "NetCare," a new family of lower cost,"mandate-lite" health insurance plans that would beavailable to individuals, small groups, and personsleaving an employer-sponsored plan;

• increasing consumerism in the health care market by:< increasing data transparency;< increasing the ability of an insured to choose from

a variety of providers and a variety of healthinsurance plans; and

< facilitating the use of premium contributions frommultiple employers and other sources;

• opening plans created under health insurance reformto employees of the state and employees of self-insured businesses;

• expanding the small group market to include groupsof one person, under certain conditions;

• reinsuring risk in the small group market;• creating pilot programs to test medical home and

episode of care payment models;• requiring transparency of insurance broker

compensation;• standardizing the transfer of insurer information;• reducing health care spending by lowering

administrative costs through various changes relatedto the processing of insurance claims;

• requiring certain contractors who contract with thestate of Utah to provide health insurance for theiremployees;

• changing the standard of proof for emergencydepartment provider liability;

• allowing provider compliance with best practiceguidelines to serve as enhanced protection fromliability;

• creating a stakeholder group to makerecommendations on how to reduce the practice ofdefensive medicine; and

• increasing the supply of physicians.

The Task Force considered the following draft legislationbased on the input and recommendations it received:

The first draft bill, "Health System Reform - InsuranceMarket," is intended to expand access to the health

HEALTH SYSTEM REFORM TASK FORCE

2008 Legislative Interim Report 41

insurance market, stabilize premiums, and createinsurance market flexibility. Specifically, the bill:• gives a sole proprietor who meets certain

requirements access to the guaranteed issue andpre-existing condition protections in the small groupmarket beginning January 1, 2010;

• establishes requirements for insurer transparency ofplan benefits and offerings;

• gives the insurance commissioner rulemakingauthority to adopt standards for the electronicsubmission of health plan information to the state'shealth insurance internet portal created under 2008General Session H.B. 133, "Health System Reform";

• establishes a new basic benefit package called theUtah NetCare Basic Health Care Plan, which includes:< low and high deductible plans;< first dollar coverage for certain benefits; and< lower premiums;

• amends the exemptions from health insurancestandards to facilitate a mandate-free, low-costproduct;

• authorizes a preferred provider organization and ahealth maintenance organization to offer a new healthbenefit plan that does not include certain statemandated benefits;

• authorizes an employer to offer the Utah NetCareBasic Health Care Plan as alternative coverage forstate mini-COBRA coverage, federal COBRAcoverage, and a conversion plan;

• requires health insurance producers to disclosepayment of commissions to a customer prior to thecustomer's purchase or renewal of a health benefitplan;

• establishes a defined contribution arrangement which:< requires an insurer to offer products through the

state's health insurance internet portal andthrough a defined contribution arrangementbefore an insurer may offer products that are notsubject to state mandates;

< permits small employers, large employers, andERISA plans to participate;

< requires employers who wish to participate toestablish Section 125 plans that allow the use ofpre-tax dollars for premium payments;

< gives the employees of a participating employerthe option to choose a plan from the internetportal, a plan selected by the employer, or nocoverage at all;

< prohibits an insurer from establishing, as acondition for coverage, an employer minimumcontribution level;

< permits an insurer to require minimumparticipation of eligible employees as a conditionof coverage;

< requires the insurer to accept premium paymentsfrom multiple sources, including governmentassistance and contributions from otheremployers;

< permits underwriting in the defined contributionarrangements based only on age, geography,and family composition; and

< requires insurers offering products throughdefined contribution arrangements to participatein a risk adjustment mechanism; and

• establishes the Utah Health Re-insurance Pool as arisk adjuster mechanism for defined contributionarrangements, and includes:< creating the pool as a non-profit entity within the

Department of Insurance;< establishing a governing board for the pool;< requiring the board to adopt a plan of operation;< establishing powers of the board;< establishing oversight powers for the insurance

commissioner;< requiring the board to select a pool administrator;< establishing eligibility for pool membership and

ceding risk to the pool;< authorizing assessments for the pool; and< creating the Utah Health Re-insurance Pool

Enterprise Fund.

The second draft bill, "Health Reform - AdministrativeSimplification," includes various provisions intended toreduce the administrative overhead associated with theprocessing of insurance claims. The bill:• amends the timing of the requirement that a hospital

send an itemized bill to a patient;• creates a system wide, broad-based demonstration

project between health care payers and health care

HEALTH SYSTEM REFORM TASK FORCE

42 2008 Legislative Interim Report

providers for innovating the payment and delivery ofhealth care in the state;

• requires the insurance commissioner to convenehealth care insurers and health care providers toestablish a more efficient coordination of benefitsprocess;

• requires health benefit plans to issue to enrollees astandardized printed card containing health planinformation;

• gives the Insurance Department rulemaking authorityto establish standards for the electronic exchange ofhealth plan information using card-swipe technologycompatible with national electronic standards;

• requires an insurer to provide information sufficient fora health care provider to determine the compensationor payment terms for health care services;

• requires the insurance commissioner to convene agroup of health care insurers and health careproviders to:< develop the use of standardized terminology and

a standardized format of explanation of benefitsso that a patient and health care provider canread and understand the explanation of benefits;

< create a more efficient and meaningfulpre-authorization process; and

< create a consolidated and efficient health careprovider health benefit plan credentialingprocess;

• prohibits an insurer from requiring less than onebusiness day's notice of an emergency in-patienthospital admission; and

• amends the period of time in which an insurer canrecover an amount paid to a health care providerwhen the insurer determines the payment wasincorrect.

The third draft bill, "Health Reform - Health InsuranceCoverage in State Contracts," requires certain governmententities to require that a contractor with the entity offerhealth insurance coverage to the contractor's employeesif a contract is over a certain amount. Specifically, the billapplies to the Department of Environmental Quality, theCapitol Preservation Board, the Department of NaturalResources, the Division of Facilities Construction andManagement, the Utah Department of Transportation and

public transit districts, and construction or design contractsentered into, on or after July 1, 2009.

ActionThe Committee considered this issue at its April 17, May22, June 19, August 21, September 18, October 13,October 31, November 11, and December 16, 2008meetings, but did not recommend draft legislation.

OTHER STUDIES

Status of Executive Branch TasksAt the Task Force's November 11, 2008 meeting theAdvisor to the Governor on Health System Reformreported on the status of specific tasks with whichexecutive branch agencies were charged by 2008 GeneralSession H.B. 133, "Health System Reform." He reportedthe following:• the Office of Consumer Health Services was staffed;• the deadline for bids on the request for proposals to

develop the state's health insurance internet portalwas November 3, 2008, and five entities responded;

• the standardized uniform application form for healthinsurance was completed and will be implementedwell before the statutory deadline;

• the Department of Health submitted six Medicaidwaivers to the Centers for Medicare and MedicaidServices (CMS) but did not know when CMS will ruleon the applications;

• the executive branch was working on the developmentof a procurement preference for state contractors thatprovide health insurance to their employees;

• the Department of Health, Department of WorkforceServices, and others developed a plan and set goalsto reach out to, identify, and enroll individuals who areeligible for state health care programs, including theprivate sector;

• the executive branch worked with the Utah InsuranceDepartment and legislators on developing low-costinsurance plans, and believes that Utah NetCareprovides an excellent start; and

• although not required by H.B. 133, the executivebranch consulted with university presidents about theconcept of requiring university students to carry healthcare coverage.

HEALTH SYSTEM REFORM TASK FORCE

2008 Legislative Interim Report 43

The Committee considered this issue at its November 11,2008 meeting, but did not recommended draft legislation.

44 2008 Legislative Interim Report

HIGHER EDUCATION AND APPLIED TECHNOLOGY GOVERNANCE COMMITTEE

2008 Legislative Interim Report 45

HIGHER EDUCATION AND APPLIEDTECHNOLOGY GOVERNANCE COMMITTEE

MembershipSen. Curtis S. Bramble, Senate ChairRep. Kevin S. Garn, House ChairSen. Margaret DaytonSen. Lyle W. HillyardSen. Karen MayneRep. Ron BigelowRep. Lorie D. FowlkeRep. James R. GowansRep. Kory M. HoldawayRep. Brad KingRep. Gordon E. Snow

StaffAllison M. Nicholson, Policy AnalystDee S Larsen, Associate General CounselWendy L. Bangerter, Legislative Secretary

OVERVIEW

The Legislative Management Committee created theHigher Education and Applied Technology GovernanceCommittee to study and make recommendations on: (1)governance of the state's higher and applied technologyeducation systems with particular emphasis on areatechnology centers; and (2) the roles, missions, andgovernance of institutions of higher education.

UTAH COLLEGE OF APPLIED TECHNOLOGY

BackgroundThe importance of post-secondary training in today'srapidly changing economy is increasing. Students need tobe highly trained in order to compete in a globalmarketplace. Post-secondary training includes career andtechnical education (CTE) and training as well astraditional academic programs. CTE, previously referred toas vocational or applied technology education,encompasses a variety of fields in diverse subject areasincluding health sciences, agriculture, consumer science,manufacturing, and technology. CTE is taught at thesecondary and post-secondary levels in Utah. At the post-secondary level, nine of the ten state higher education

institutions offer career and technical education resultingin credentials including a certificate, license, or degree.

The Utah College of Applied Technology (UCAT) wasestablished in 2001 as the tenth institution in the UtahSystem of Higher Education (USHE) to deliver CTE tosecondary and post-secondary students. There are eightUCAT campuses representing different geographic areasof the state: Bridgerland, Ogden-Weber, Davis, SaltLake/Tooele, Mountainland, Uintah Basin, Southwest, andDixie. UCAT offers programs designed to be market-drivenand prepare students for employment in a specificoccupation. Additionally, UCAT runs a custom-fit programfor employers to work with UCAT to customize trainingspecifically for the employer's needs.

Institutions in USHE are governed by the State Board ofRegents, which oversees state higher education issuesincluding programs, tuition rates, and budgets. WhenUCAT was established within USHE, it retained someindependent authority from the Board. For example,UCAT's budgets and capital facilities requests are notsubject to Board of Regents approval, but instead arereviewed by the UCAT Board of Trustees before beingsubmitted directly to the Legislature and the Utah StateBuilding Board, respectively. The Board does facilitate andcoordinate the operation of UCAT within USHE, includingappointing a president of UCAT, approving each associateof applied technology degree offered at UCAT campuses,and making rules governing the transfer of these degreesto other institutions of higher education.

The Committee spent much of its time discussing thegovernance structure of UCAT. Some felt that UCATshould be governed by a different authority than the Boardbecause of its unique role and mission within USHE. TheCommittee reviewed various options and recommendedmaking the UCAT Board of Trustees the governing bodyover UCAT. In addition, the Committee recommendedchanging the membership of the Board of Trustees toinclude more representation of workforce and economicdevelopment and apprenticeship training programs.

Unlike other institutions, UCAT does not offer credit andtraditional degrees. Instead, students work toward

HIGHER EDUCATION AND APPLIED TECHNOLOGY GOVERNANCE COMMITTEE

46 2008 Legislative Interim Report

completing competencies in a specific area or skill. UCATdoes offer the competency-based associate of appliedtechnology (AAT) degree. The AAT and some UCATcompetencies can be transferred to other USHEinstitutions if the respective institutions have an articulationagreement in place. An articulation agreement representsan agreement among all signing parties that certainclasses or competencies are substantially similar at thetwo institutions, and thus, the student may receive credit atone institution for similar work done at the other institution,within the scope of the agreement. UCAT has entered intoarticulation agreements with other institutions, whereapplicable, allowing UCAT students to continue theireducation at different institutions and receive appropriatecollege credit for their work completed while at UCAT.

The Committee discussed the possibility of UCAT seekingaccreditation in order to offer credit and possibly otherassociate degrees. The AAT degree is unique to Utah, asit was created when UCAT was created. Given the lowstudent demand, uniqueness of the degree, and its limitedrecognition outside the state, the Committeerecommended that the AAT degree be discontinued.Additionally, the Committee recommended that the Officeof the Commissioner of Higher Education provide moresupport to facilitate articulation agreements betweeninstitutions.

Recently, there have been several legislative proposalsrelating to the delivery of CTE in the Salt Lake/Tooeleregion. The Salt Lake/Tooele Applied Technology College(SLTATC), Salt Lake Community College (SLCC), UtahState University, and various high school programs offerCTE to students in this region. Some have felt there isunwarranted duplication in Salt Lake County, while TooeleCounty seems to be underserved. The Committeediscussed possible legislative options to address thisissue, and recommended combining the Salt Lake portionof the SLTATC and the Skills Center at SLCC to form oneentity: the School of Applied Technology at SLCC.

ActionThe Committee considered this issue at its April 30, May13, May 27, July 15, July 28, August 4, August 8,September 9, October 21, and November 11, 2008

meetings and recommended draft legislation, "Career andTechnical Education Amendments."

OTHER STUDIES

Concurrent EnrollmentConcurrent enrollment allows high school students tosimultaneously earn high school and college credits forcertain college-level courses. In the last decade, theprogram has seen a significant amount of growth in bothstudent headcount and semester hours earned. Similarly,legislative appropriations have increased substantially. TheCommittee discussed the benefits and challenges of theprogram, including potential legislative options.

The Committee considered this issue at its October 21 andNovember 11, 2008 meetings, but did not recommend draftlegislation.

IMMIGRATION INTERIM COMMITTEE

2008 Legislative Interim Report 47

IMMIGRATION INTERIM COMMITTEE

MembershipSen. Scott K. Jenkins, Senate ChairRep. Brad L. Dee, House ChairSen. John W. HickmanSen. Mark B. MadsenSen. Ross I. RomeroRep. Stephen D. ClarkRep. Glenn A. DonnelsonRep. Ben C. FerryRep. Neil A. HansenRep. Michael E. NoelRep. Mark A. Wheatley

StaffArthur L. Hunsaker, Policy AnalystChristopher R. Parker, Associate General Counsel Thomas R. Vaughn, Associate General CounselJames L. Wilson, Associate General CounselChelsea Barrett, Legislative Secretary

OVERVIEW

Courts have determined that the federal government hasexclusive jurisdiction over immigration law. However, afterimmigration reform stalled in Congress during the summerof 2007, the Legislature passed S.B. 81, "IllegalImmigration," in its 2008 General Session. Designed toaddress pressing immigration issues, S.B. 81 imposesrequirements on state and local law enforcement and otherstate and local government agencies, businesses, andapplicants for state and local public benefits. The bill hasa delayed effective date of July 1, 2009.

After the 2008 General Session, the LegislativeManagement Committee established an ImmigrationInterim Committee. Authorized to meet for one year, theCommittee was directed to study and makerecommendations on issues related to the implementationof S.B. 81 and:(1) current and proposed federal and state laws,

programs, and policies that relate to unauthorized orillegal immigrants residing within the state, including:(a) employer verification of an employee's

immigration status;

(b) postsecondary education benefits;(c) access to federal, state, and local public benefits,

including health care, food stamps, and cashassistance; and

(d) obtaining a valid driver license or identificationcard;

(2) the state's role in enforcing federal immigration law,both criminal and civil; and

(3) federal preemption of current or proposed stateimmigration laws.

In addition to meetings at the State Capitol, the Committeeheld meetings in Logan, Park City, Richfield, and St.George to provide the opportunity for statewide publicinput.

FEDERAL, STATE, AND LOCAL IMMIGRATION ROLES

BackgroundThe first priority of the Committee was to better understandthe responsibilities of federal immigration officials in Utahand how they interact with state and local law enforcement.Immigration and Customs Enforcement (ICE) officials wereinvited to testify before the Committee, but the Committeewas informed that ICE officials are prohibited fromspeaking publicly to state legislative bodies. Two retiredfederal immigration officials offered their perspective.

The United States Attorney for Utah testified that due torecent court decisions, illegal immigrants cannot beprosecuted in Utah for their illegal presence in the statedue to Utah's status as an "interior" state. Illegal entry canonly be prosecuted in the "border" state in which an illegalimmigrant enters the U.S. He added that illegal immigrantscan be prosecuted for the crimes they commit in the state,including illegal reentry.

He also indicated that slightly more than 25 percent of hisoffice's criminal cases are immigration related (does notinclude drug, firearm, and violent crime enforcement whereillegal immigrants are involved), and that in 2007 roughly2,500 illegal immigrants were deported from Utah.

The Committee also heard testimony from local, state, andfederal officials regarding state and local law enforcement

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training by ICE officials. The Committee was encouragedto support appropriations for this training.

ActionThe Committee considered this issue at its May, June,August, October, November, and December 2008meetings and recommended draft legislation, "DeterringIllegal Immigration."

PUBLIC COMMENT

BackgroundThe Committee expressed a keen interest in hearing thevarious viewpoints on immigration from the public. TheCommittee held meetings in Logan, Park City, Richfield,and St. George to make it easier for citizens in those areasof the state to give their perspective on the issue.

The Committee chairs urged those interested in providingpublic comment to contact committee staff and explain thepoints they would make regarding immigration if grantedtime to speak in a committee hearing. Staff was directed tocollect this information and submit it to the chairs.

In addition to this more formal process of providing publiccomment, the chairs also set aside time in the meetings toallow interested citizens in attendance to speak to theCommittee.

ActionThe Committee received public comment at its May, June,August, October, November, and December 18, 2008meetings.

S.B. 81 AMENDMENTS AND CLARIFICATIONS

BackgroundSeveral groups expressed concern with how S.B. 81 wouldimpact businesses, government, and the public whenimplemented on July 1, 2009.

The Salt Lake County Treasurer testified that S.B. 81requires local governments to verify the immigration statusof applicants for public benefits, but expressed concernthat local governments may be required to verify theimmigration status of those who applied for public benefitsprior to July 1, 2009, the effective date of the legislation, ifthey continue to file for the benefit after July 1, 2009 . Herequested that the bill be amended to clarify that the stateis requiring local governments to verify the immigrationstatus of those applying for a public benefit for the first timeas of July 1, 2009.

Furthermore, S.B. 81 requires entities entering into acontract to provide services to a public employer to registerand participate in the federal government's StatusVerification System to verify the work eligibility status ofthe entities' new employees. Representatives of thebusiness community requested that "contract," as used inthe bill, be defined to aid businesses in determiningwhether the requirement applies to them.

ActionThe Committee considered this issue at its December 3and December 18, 2008 meetings and recommended draftlegislation, "Immigration Amendments."

UTAH DRIVER PRIVILEGE CARDS AND REAL ID ACT

BackgroundUtah has chosen to participate in the federal REAL ID Actof 2005, which establishes what documents are acceptedby federal agencies as proof of identification. Currently, thestate has until January 1, 2010 to become substantiallycompliant with REAL ID requirements.

Provisions of S.B. 81 essentially mirrored the REAL ID Actrequirements, but the bill's effective date is July 1, 2009,six months prior to the deadline the state has been given

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by the federal government. Complying with the variousrequirements caused by the differing effective dates couldrequire citizens to go to their local driver license office twotimes within a few months, causing long lines and poorservice.

To improve service, the Driver License Divisionrecommended that state implementation of S.B. 81 identitydocument provisions be delayed to match the REAL IDdeadline of January 1, 2010.

ActionThe Committee considered this issue at its December 3and December 18, 2008 meetings and recommended draftlegislation, "Lawful Presence Verification for Issuance of aDriver License or Identification Card."

OTHER STUDIES

Federal Waiver for Work ProgramThe Salt Lake Area Chamber of Commerce recommendedthat the state consider establishing a program that wouldallow foreign workers and undocumented immigrantscurrently residing in Utah to receive a two-year, renewableguest worker authorization. The Chamber recommendedthat the state request a federal waiver to implement anemployer sponsored work program and the authority togrant temporary work permits to undocumented persons,to allow state and local law enforcement officials to enforcefederal and state immigration law, and to withhold federalFICA and Medicare revenue and apply it to program costs.The Committee considered this issue at its December 3and December 18, 2008 meetings and recommended draftlegislation, "Concurrent Resolution Requesting a FederalWaiver to Establish an Employee Sponsored WorkProgram."

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JUDICIARY INTERIM COMMITTEE

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JUDICIARY INTERIM COMMITTEE

MembershipSen. Gregory S. Bell, Senate ChairRep. Eric K. Hutchings, House ChairSen. Lyle W. HillyardSen. Peter C. KnudsonSen. Ross I. RomeroRep. Sheryl L. AllenRep. Jim BirdRep. Jackie BiskupskiRep. Lorie D. FowlkeRep. Kevin S. GarnRep. Keith GroverRep. Neil A. HansenRep. Gregory H. HughesRep. Christine A. JohnsonRep. Kay L. McIffRep. R. Curt WebbRep. Mark A. Wheatley

StaffJerry D. Howe, Policy AnalystEsther Chelsea-McCarty, Associate General CounselAmanda K. Majers, Legislative Secretary

OVERVIEW

The Judiciary Interim Committee studies issues related tothe substantive rights of litigants and the administration ofcertain criminal and civil statutes.

The Committee's scope of policy oversight includes thejurisdictional powers associated with Utah's Justice Court,Juvenile Court, District Court, Court of Appeals, andSupreme Court. The Committee also has statutoryoversight of certain programs delegated by the Legislatureto the Judicial Council, including Mandatory EducationCourse for Divorcing Parents, Alternative DisputeResolution, and the Judicial Nominating Commissions.

HARBORING A RUNAWAY

BackgroundIt is currently a crime to knowingly and intentionally provideshelter to a minor without notifying the minor's parent orguardian within eight hours.

For a variety of reasons, including a difficult economy, thehomeless youth population is experiencing a dramaticincrease. In conjunction with the Division of Child andFamily Services, the Office of the Guardian ad Litem, andthe Office of the Attorney General, and with carefulconsideration to preserving parental rights, the Committeeapproved a proposal to change current state law regardingharboring a runaway.

The proposed bill provides that a person who harbors arunaway must provide notice to the parent or legalguardian of the minor, the Division of Child and FamilyServices, or under certain circumstances, to a peaceofficer or detention center within eight hours from the laterof the time that the person begins providing shelter or thetime the person becomes aware that the minor is arunaway.

The proposed bill also provides that an individual or atemporary homeless youth center may continue to provideshelter to a runaway after providing the requisite noticewhen the youth's parent or guardian provides consent orfails to retrieve the runaway. The proposed bill alsoclarifies that an individual or a temporary homeless youthshelter may provide shelter to an abandoned minor andmust report abuse or neglect of a child.

ActionThe Committee considered this issue at its October 2008meeting and recommended draft legislation, "Harboring aRunaway."

MATERIAL HARMFUL TO MINORS

BackgroundOver the past few years, an alarming trend has beenobserved by junior and senior high school administratorswith regard to how some school age children use cell

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phone technology to take, send and receive inappropriatedigital pictures.

In fact, there have been several complaints from severaldifferent school administrators and even some criminalcomplaints that some students are taking and sendingnude pictures of themselves to other students.

Utah state law currently provides that a person is guilty ofdistributing pornographic material when the personknowingly sends, prepares, publishes, prints, possesses orbrings any pornographic material into the state with theintent to distribute or exhibit it to others. An offense of thisnature is a third degree felony punishable with a minimummandatory fine of not less than $1,000 and a jail term ofnot less than 30 days.

State and county prosecutors are reluctant to prosecute aminor for sending or forwarding a nude picture ofthemselves or another because these crimes areinherently different than the production and distribution ofa full length pornographic movie, for example, that wouldreceive the same penalty under the current statute.

The Committee was asked to consider a bill that wouldcreate an offense for minors engaged in this type ofactivity, with a penalty that would increase on subsequentoffenses, and one that would serve to levy an appropriatepunishment without significantly altering a minor's futureopportunities for education and employment.

As a consequence of this review, the Committeerecommended that distributing pornographic material: (1)by a person younger than 16 years of age be a class Bmisdemeanor, (2) by a person 16 or 17 years of age be aclass A misdemeanor, and (3) by a person 18 years of ageor older remain a third degree felony.

ActionThe Committee considered this issue at its August andSeptember 2008 meetings and recommended draftlegislation, "Material Harmful to Minors Amendments."

WRONGFUL DEATH AMENDMENTS

BackgroundState law currently allows standing to certain persons tosue in a court of law when a close relative of theirs hasdied due to the negligence or wrongdoing of another.

The Committee considered whether or not to expand thedefinition of "heir" to include a wrongful designee that isdefined as a person who: is designated by the decedent asthe wrongful death heir in the decedent's will, trust, or othernotarized written directive; and has been adjudicated by acourt of competent jurisdiction by clear and convincingevidence to have a mutually supportive and dependentrelationship with the decedent.

The Committee further recommended that all minorchildren of the decedent should have priority over otherheirs in the event of a wrongful death settlement, and thata wrongful death designee be granted standing only if thedecedent has no spouse.

ActionThe Committee considered this issue at its September andNovember 2008 meetings and recommended draftlegislation, "Wrongful Death Amendments."

OTHER STUDIES

Violation of Protective OrderCurrent state law allows the court to grant ex parteprotective orders. When a protective order has been ineffect for at least two years it may be dismissed if the courtdetermines that the petitioner for the protective order nolonger has a reasonable fear of future abuse.

Members of the Legislature have received reports fromconstituents that some people who petition the court forprotective orders do so in an attempt to receive preferentialtreatment in future divorce and custody proceedings orsimply to harass or intimidate. It was also reported thateven after a protective order has been issued, the personwho petitioned for the protective order has knowingly andintentionally induced a breach of the protective order in anattempt to build an exaggerated record of abuse.

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The Committee considered the public policy of requiring allprotective orders to include a notice to the petitioner thatacting in contravention of the protective order provisionsmay be grounds for amending or dismissing the protectiveorder.

The Committee considered this issue at its May, October,and November 2008 meetings, but did not recommenddraft legislation.

WiFi - Legal and Social IssuesThe Committee considered two main problems concerningthe use of WiFi in Utah. The first issue is that cybercriminals are able to access unsecured WiFi signals allthroughout the state. The second problem is that minorsare able to access pornography using unprotected WiFinetworks.

The Committee was told that one solution to this problemis to regulate WiFi by requiring residences to place apassword on wireless internet services, as well asrequiring security on free wireless services provided inpublic places.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

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LAW ENFORCEMENT AND CRIMINAL JUSTICE INTERIM COMMITTEE

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LAW ENFORCEMENT AND CRIMINAL JUSTICEINTERIM COMMITTEE

MembershipSen. Jon J. Greiner, Senate ChairRep. DeMar "Bud" Bowman, House ChairSen. D. Chris ButtarsSen. John W. HickmanSen. Scott D. McCoyRep. Brad L. DeeRep. David LitvackRep. Rebecca D. LockhartRep. Michael T. MorleyRep. Curtis OdaRep. Jennifer M. SeeligRep. Kenneth W. SumsionRep. Stephen H. UrquhartRep. Larry B. WileyRep. Carl Wimmer

StaffStewart E. Smith, Policy AnalystSusan Creager Allred, Associate General CounselWendy L. Bangerter, Legislative Secretary

OVERVIEW

The Law Enforcement and Criminal Justice InterimCommittee was established to study issues related to lawenforcement, criminal law and procedure, illegal drugactivity, weapons, corrections, public safety, and thecriminal justice system. In studying these issues, theCommittee strives to maintain a balance between publicsafety, victim rights, and offender accountability andrehabilitation.

The Committee's areas of statutory oversight include theCriminal Code, code provisions regulating controlledsubstances, law enforcement agencies, the Department ofPublic Safety, the Department of Corrections, the Divisionof Juvenile Justice Services, the Utah Board of Pardonsand Parole, the Utah Commission on Criminal and JuvenileJustice, the Utah Sentencing Commission, the UtahSubstance Abuse and Anti-Violence Coordinating Council,and the Office of Crime Victim Reparations.

The Committee has in recent months focused onprevention and enforcement issues regarding gangs, andtreatment issues regarding sex offenses. The Committeehas studied issues with the goal of improving the efficiencyand cost-effectiveness of the criminal justice system andincreasing communication and collaboration betweenprograms and agencies. The Committee has alsoconsidered the costs of these issues and programs.

CONCEALED FIREARM PERMITS

BackgroundThe number of concealed firearm permits issued by theBureau of Criminal Identification (BCI) in 2008 is expectedto exceed 41,000. This reflects a 47 percent increase overthe number of permits issued in 2007, and 164 percentincrease over the number issued in 2006. Since 1994,approximately 37 percent of concealed firearm permitshave been issued to out-of-state applicants who have beentrained by Utah-certified trainers. Current research shows305 certified instructors residing in Utah and 611 Utah-certified instructors living outside of Utah.

Along with the statutory duties to issue concealed firearmpermits within a prescribed time frame, BCI has anadditional responsibility to supervise the program andensure lawful, qualified possession of the permit as setforth in Utah Code 53-5-704.

In the past two years the number of revocations,suspensions, and denials has grown significantly. This isdue, in part, to the comparative increase in the number ofpermit applications. In addition, BCI hired additionalemployees to reduce the waiting period to approximately39 days, allowing investigators to focus more resources onsupervision and investigation. BCI conducts cross matchchecks on the National Crime Information Center systemand the Utah system. This ensures that all permit holdersare screened for disqualifying offenses and permits arerevoked as appropriate. In fiscal year 2008, BCI deniedpermits to approximately 450 applicants, and revoked andsuspended over 350 permits.

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ActionThe Committee considered this issue at its May, June, andOctober 2008 meetings, but did not recommend draftlegislation.

GANG VIOLENCE

BackgroundGang violence is a growing concern in many communitiesin our state. It is a dangerous lifestyle that has crossed allethnic and socioeconomic boundaries and affects thesafety and well-being of many neighborhoods. TheCommittee considered and recommended five billsintended to provide new tools for civic leaders,prosecutors, and law enforcement officers to prevent andreduce violent gang activity.

ActionThe Committee considered this issue at its October andNovember 2008 meetings and recommended draftlegislation:• "Criminal Offense Penalties Amendment,"• "Violent Offenses Amendments,"• "Criminal Offense Elements and Penalties,"• "Prohibited Gang Activity," and• "Prohibited Activities of Gang Offenders."

UTAH'S EMERGENCY RADIO COMMUNICATIONS

BackgroundThe Federal Communications Commission (FCC) haspublished mandates to reduce bandwidth for emergencycommunications to make available more bandwidth forcommercial use. The FCC rules, which take effect in theyear 2013, will require substantial funding forcommunications equipment and construction of new relaytowers.

ActionThe Committee considered alternatives, time-lines, andfunding required to accomplish the required change at itsApril and May 2008 meetings, but did not recommend draftlegislation. The Committee asked the UtahCommunications Agency Network, the State ChiefInformation Officer, the Department and Public Safety,

Utah Sheriffs' Association and other law enforcementassociations, and interested parties to continue to plan forthis change and report back with a plan and time frame asagreed to by those involved in the change.

OTHER STUDIES

IncestUtah's current law prohibits sexual intercourse constitutingincest. However, if a defendant claims that the incest wascommitted by other means of fertilization than sexualintercourse, prosecutors have the difficult task ofpersuading the victim to testify against a relative in orderto attempt to establish that sexual intercourse occurredand allow prosecution. The Committee considered thisissue at its November 2008 meeting and recommendeddraft legislation, "Incest Amendments."

Mentally Ill OffendersLaw enforcement, courts, jails, and corrections agenciesmust deal with a growing number of individuals who areseriously mentally ill. Our jails and prisons are becoming"de facto" providers of mental health services. Over pastdecades, the population of prisons has increaseddramatically while the population in psychiatric hospitalshas decreased due to deinstitutionalization, lack ofcommunity-based treatment, and legal barriers toinvoluntary commitment.

Nationally, 56 percent of state prison inmates, 45 percentof federal inmates, and 64 percent of local jail inmateshave some history of mental health problems, and 26percent have suffered from serious mental illness. TheUtah Commission on Criminal and Juvenile Justicereported to the Committee that it is in the process ofdeveloping specific recommendations relating to this groupof offenders.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

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LEGISLATIVE MANAGEMENT COMMITTEE

MembershipSpeaker Greg J. Curtis, ChairPresident John L. Valentine, Vice ChairSen. Curtis S. BrambleSen. Gene DavisSen. Mike DmitrichSen. Dan R. EastmanSen. Brent H. Goodfellow Sen. Patricia W. JonesSen. Sheldon L. KillpackRep. David ClarkRep. Brad DeeRep. Brad KingRep. David LitvackRep. Phil RiesenRep. Gordon E. SnowRep. Carol Spackman-Moss

StaffMichael E. Christensen, DirectorJohn L. Fellows, General CounselBeverlee LeCheminant, Administrative Assistant

OVERVIEW

The Legislative Management Committee (LMC) consists ofthe combined membership of the Senate ManagementCommittee and the House Management Committee. LMC'smain responsibility is to manage the administrative affairsof the Legislature and to provide direction to legislativecommittees. For example, it creates interim committeesand task forces, approves site visits for the Legislature,assigns the study items from the Master Study Resolutionto the various interim committees, authorizes studyrequests from interim committees, assigns new study itemsto interim committees, and schedules interim committeemeeting dates and times.

APPOINTMENT OF LEGISLATIVE GENERAL COUNSEL

BackgroundOn May 31, 2008, M. Gay Taylor, Legislative GeneralCounsel, retired after 25 years of service. After a nationalsearch for Ms. Taylor's successor, the legislative search

committee recommended that Mr. John L. Fellows, DeputyGeneral Counsel, be appointed General Counsel.

ActionAt its May 2008 meeting, the LMC voted unanimously toaccept the recommendation of the research committee toappoint John L. Fellows as General Counsel. A resolutionwill be prepared for the 2009 General Session that willformally appoint Mr. Fellows as General Counsel for a six-year term.

ASSIGNMENT OF NEW STUDIES AND CREATION OF

NEW INTERIM COMMITTEES

BackgroundDuring the 2008 General Session, the Legislatureconsidered but defeated H.B. 490, "Legislative TaskForces and Study Priorities." This bill included severalitems; such as, the creation of several interim committeesand the assignment of certain study items to existinginterim committees. Though the bill failed, there was stillinterest in creating new interim committees and inassigning new study items to existing interim committees.

ActionThe LMC considered this issue at its March 2008 meeting.The LMC made specific assignments to the following twointerim committees and authorized them to meet up to fiveadditional times:

Education Interim Committee - to study the issues ofperformance and differentiated pay for teachers and makerecommendations on:

(a) the implementation of a goal-drivencompensation system, including howperformance incentives may be implemented tomotivate teachers in improving performance andstudent achievement;

(b) the use of differential pay for subject matterswhere school districts have difficulty in hiring andretaining professionals;

(c) identifying assessments of teacher performancethat are valid, reliable, and objective;

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(d) evaluating to what extent existing data and datasystems may be used to measure learning gainsof a teacher's students;

(e) determining what modifications of data or datasystems are needed to effectively measurelearning gains of a teacher's students;

(f) identifying assessments of teacher performancefor teachers who teach subjects not tested byUtah Performance Assessment System forStudents (U-PASS);

(g) considering the appropriateness of compensationbased on individual, team, or school-basedperformance, or a combination of those, and towhat extent school districts or schools shouldhave flexibility in determining whether awards arebased on individual, team, or school-basedperformance, or a combination of those;

(h) considering how to transition from existingteacher compensation systems to systems inwhich a portion of compensation is based onperformance; and

(I) considering what should be an appropriate rangefor the amount of a performance-based award orwhat portion of total compensation should bebased on performance.

Revenue and Tax Interim Committee - to focus on theissues of property tax, property tax assessment, and theconstitutional provisions of Utah's Constitution that dealwith property tax.

The LMC also created two new interim committees withmembership appointed by the President and Speaker asfollows: House - five members of the majority party andtwo members of the minority party; Senate - threemembers of the majority party and one member of theminority party for a total of 11 members for eachcommittee. The committees were authorized to meet up toeight times with their authorization expiring December 31,2008. The two new interim committees are:

Immigration Interim Committee - to study and makerecommendations on the following issues:

(a) current and proposed federal and state laws,programs, and policies that relate tounauthorized or illegal immigrants residing withinthe state, including:

(i) employer verification of an employee'simmigration status;

(ii) postsecondary education benefits;(iii) access to federal, state, and local

public benefits, including health care,food stamps, and cash assistance; and

(iv) obtaining a valid driver license oridentification card;

(b) the state's role in enforcing federal immigrationlaws, both criminal and civil;

(c) federal preemption of current or proposed stateimmigration laws;

(d) issues related to S.B. 81, "Illegal Immigration,"passed during the 2008 General Session;

(e) any other issue relating to illegal or unauthorizedimmigration as determined by the task force; and

(f) a final report, including any proposed legislation,to be presented to the Workforce Services andCommunity and Economic Development InterimCommittee, the Business and Labor InterimCommittee, and the Law Enforcement andCriminal Justice Interim Committee beforeNovember 30, 2008.

Higher Education and Applied Technology GovernanceCommittee - to study and make recommendations on:

(a) governance of the state's higher and appliedtechnology systems with particular emphasis onarea technology centers; and

(b) the roles, missions, and governance ofinstitutions of higher education.

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NATIVE AMERICAN LEGISLATIVE LIAISONCOMMITTEE

MembershipSen. Kevin T. VanTassell, Senate ChairRep. DeMar "Bud" Bowman, House ChairSen. Fred FifeSen. Patricia W. JonesSen. Dennis E. StowellRep. Douglas C. AagardRep. James R. GowansRep. Brad KingRep. Kay L. McIffRep. Michael E. NoelRep. Mark A. Wheatley

StaffJohn Q. Cannon, Managing Policy AnalystPatricia Owen, Associate General CounselWendy L. Bangerter, Legislative Secretary

OVERVIEW

The Native American Legislative Liaison Committee is an11-member committee that addresses Native Americanissues in Utah. The Committee is a liaison for theLegislature with Indian tribes in Utah. The Committee alsoreviews the operations of the Division of Indian Affairs,sponsors meetings and other opportunities for discussionwith and between Native Americans, and recommendslegislation. The Committee has visited many of the triballands throughout the state.

OTHER STUDIES

Dialogue With Tribal LeadersOne statutory duty of the Committee is to serve as aliaison for the Legislature with Indian tribes in the state.During the 2008 interim, the Committee held a meeting inconjunction with the Governor's Native American Summitseeking feedback from tribal leaders. This meeting washeld in Vernal and included tribal leaders from throughoutthe state and other interested parties. Issues discussed atthis meeting spanned a wide range of topics, includingthose of healthcare, taxation, education, and public safety.The dialogue with the tribal leaders and the Committee

constituted its September 2008 meeting, but theCommittee did not recommend draft legislation.

Native American Representation on the UtahSubstance Abuse and Anti-Violence CoordinatingCouncilThe Utah Substance Abuse and Anti-ViolenceCoordinating Council is a statutorily created entity intendedto provide leadership and generate unity for Utah's ongoingefforts to combat substance abuse and communityviolence. The Committee heard presentations anddiscussed the need for Native American involvement in theCouncil. The Senate chair brought legislation to theCommittee that would add the director of the Division ofIndian Affairs to the Council. The Committee consideredthis issue at its November 2008 meeting andrecommended draft legislation, "Utah Substance Abuseand Anti-violence Coordinating Council Amendments."

Statutorily Required ReportsSeveral entities are required by law to report to theCommittee. These entities include:• Utah Division of Indian Affairs; • Native American Remains Review Committee; • Navajo Revitalization Fund; and• Uintah Basin Revitalization Fund.

The Committee received these reports at its November2008 meeting, but did not recommend draft legislation.

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NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENT INTERIM COMMITTEE

2008 Legislative Interim Report 61

NATURAL RESOURCES, AGRICULTURE, ANDENVIRONMENT INTERIM COMMITTEE

MembershipSen. Darin G. Peterson, Senate ChairRep. Roger E. Barrus, House ChairSen. Gene Davis Sen. Margaret Dayton Sen. Dennis E. StowellSen. Michael G. WaddoupsRep. Sylvia S. AndersenRep. Melvin R. BrownRep. Glenn A. DonnelsonRep. Jack R. DraxlerRep. Carl W. DuckworthRep. Kerry W. GibsonRep. James R. GowansRep. Neal B. HendricksonRep. John G. MathisRep. Michael E. NoelRep. Patrick PainterRep. Phil RiesenRep. Stephen E. Sandstrom

StaffJ Brian Allred, Policy AnalystEmily R. Brown, Associate General CounselJoy L. Miller, Legislative Secretary

OVERVIEW

Under the broad subject of natural resources, theCommittee deals with water rights, water development,wildlife, parks and recreation, mining, and forestry. Withinthe field of agriculture, the Committee is concerned withpromoting agricultural production, preventing diseaseamong domesticated animals, and ensuring a wholesomefood supply. Environmental issues include air quality, waterquality, solid and hazardous waste disposal, andradioactive waste.

Much of the Committee's efforts involve coping with rapidgrowth and urbanization of the state's population. A toppriority has been to assure that Utah has ample watersupplies. Maintaining and improving the quality of Utah'swater is as critical as developing adequate water supplies.

Wildlife is another natural resource affected by growth.Land development has diminished wildlife habitat andincreased competition for the use of the remaining habitat.Wildlife interests and agricultural interests are frequentlyvying for use of the same land. Accommodating thesecompeting interests and addressing the growingpopulation's increased demand for recreationalopportunities present significant challenges to theCommittee.

The Committee oversees three state departments: theDepartment of Natural Resources, the Department ofAgriculture and Food, and the Department ofEnvironmental Quality.

ENERGY RESOURCE DEVELOPMENT

BackgroundThe state and nation have experienced increasing energydemands and costs, highlighting the need for energyindependence. Climate change and carbon reductionefforts are worldwide issues of concern. The Committeediscussed the development of the abundant energy naturalresources the state enjoys such as coal, oil shale, and tarsands. The Committee also considered the regulatoryframework needed to encourage development of thetechnology necessary to economically extract these stateresources in an environmentally friendly way. TheCommittee also discussed meeting Utah's and the nation'sgrowing energy demands through expanded natural gasproduction, conservation, and the development of otherresources such as wind, solar, and nuclear power.

ActionThe Committee considered this issue at its May, June,August, September, October, and November 2008meetings, but did not recommend legislation.

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RECODIFICATION OF NATURAL RESOURCES

PROVISIONS

BackgroundIn the 2008 General Session the Legislature recodifiedTitle 63 of the Utah Code. Chapter 34, Utah NaturalResources Act; Chapter 73, Geological Survey; Chapter11, Parks and Recreation; and Chapter 11a, RecreationalTrails, all part of the Department of Natural Resources,were not part of the recodification. The Committeediscussed creating a new Title 79 for Natural ResourcesProvisions, renumbering, and amending these chaptersomitted from Title 63.

ActionThe Committee considered this issue at its April, May,June, August, September, October, and November 2008meetings and recommended draft legislation,"Recodification of Natural Resources Provisions."

OTHER STUDIES

Endangered SpeciesAn Endangered Species Mitigation Fund was establishedby the Legislature in 1998 to provide money for speciesprotection actions for plants and animals identified assensitive by the state or as threatened or endangeredunder the federal Endangered Species Act. TheDepartment of Natural Resources reported on the fund,focusing on the Upper Colorado River Basin RecoveryProgram, the Virgin River Resource Management andRecovery Program, and the June Sucker RecoveryProgram. The Committee considered this issue at itsSeptember 2008 meeting, but did not recommend draftlegislation.

Penalties for Destruction of Bald EagleBald eagles were recently removed from the federalthreatened and endangered species list. Under state law,the restitution value for illegally killing a bald eagle is $100.The Committee considered whether to increase thatpenalty to $1,000. The Committee considered this issue atits November 2008 meeting and recommended legislation,"Penalties for Destruction of Bald Eagle."Safe Drinking Water Amendments

The Committee discussed whether to allow the majority ofthe voting shareholders of a corporate public water systemto approve the addition or removal of fluorine in the publicwater system. The Committee considered this issue at itsNovember 2008 meeting and recommended draftlegislation, "Safe Drinking Water Act Amendments."

Sunset Review - Title 19, Chapter 2, AirConservation ActThe purpose of the Utah Air Conservation Act is toimplement the federal Clean Air Act, allowing the state toregulate air quality. The Committee considered this sunsetreview at its April 2008 meeting and recommendedreauthorization for five years.

Sunset Review - Title 19, Chapter 4, Safe DrinkingWater ActThe purpose of the Safe Drinking Water Act is to ensure asafe and reliable supply of drinking water and to maintainprimacy of the Drinking Water Program in Utah under thefederal Safe Drinking Water Act. The Committeeconsidered this sunset review at its May 2008 meeting andrecommended reauthorization for 10 years.

Sunset Review - Title 19, Chapter 5, Water QualityActThe purpose of the Utah Water Quality Act is to protect thequality of surface and ground water in the state and protectthe public health through regulating the discharge of wastewater. The Committee considered this sunset review at itsApril 2008 meeting and recommended reauthorization for10 years.

Sunset Review - Title 19, Chapter 6, Part 1, Solid andHazardous Waste ActThe Solid and Hazardous Waste Act establishes standardsand framework for the proper management, treatment, anddisposal of hazardous and solid waste in the state. TheCommittee considered this sunset review at its August2008 meeting and recommended reauthorization for 10years.

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Sunset Review - Title 19, Chapter 6, Part 7, Used OilManagement ActThe Used Oil Management Act provides for the collection,recycling, and reuse of used oil. The Committeeconsidered this sunset review at its August 2008 meetingand recommended reauthorization for 10 years.

Water RightsThe Committee discussed issues relating to water rightsincluding: (1) judicial review of a state engineer's decisionin an informal adjudication that would allow a court toconsider failure to prosecute a suit to final judgment withina certain time period lack of diligence, rather than requiringthe court to dismiss the action; and (2) changing the timelimit on a water right appropriation for a public watersupplier and authorizing the segregation of a water rightheld by a public water supplier. The Committee consideredthis issue at its September and November 2008 meetingsand recommended draft legislation, "Water Rights -Informal Adjudications," and "Water Right Applications andRecords."

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POLITICAL SUBDIVISIONS INTERIM COMMITTEE

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POLITICAL SUBDIVISIONS INTERIMCOMMITTEE

MembershipSen. Dennis E. Stowell, Senate ChairRep. Fred R Hunsaker, House ChairSen. Fred J. FifeSen. Sheldon L. KillpackSen. Michael G. WaddoupsRep. Sheryl L. AllenRep. Tim M. CosgroveRep. Bradley M. DawRep. Gage FroererRep. Kerry W. GibsonRep. Richard A. GreenwoodRep. Christopher N. HerrodRep. Christine A. JohnsonRep. Brad KingRep. Jennifer M. SeeligRep. R. Curt WebbRep. Carl Wimmer

StaffJoseph T. Wade, Policy AnalystRobert H. Rees, Associate General CounselWendy L. Bangerter, Legislative Secretary

OVERVIEW

The Political Subdivisions Interim Committee has primaryjurisdiction over political subdivisions of the state whichinclude: counties, cities, towns, local districts (formerlycalled special districts), special service districts,conservation districts, community development andrenewal agencies, and entities created by interlocalagreements. Although school districts are technicallypolitical subdivisions of the state, the Education InterimCommittee has primary jurisdiction over school districts.

The Political Subdivisions Interim Committee has statutoryresponsibility in the Utah Code for: Title 10, Utah MunicipalCode; parts of Title 11, Cities, Counties, and Local TaxingUnits; Title 17, Counties; Title 17A, Local GovernmentControlled Districts; Title 17B, Limited Purpose LocalGovernment Entities - Local Districts; Title 17C, LimitedPurpose Local Government Entities -- Community

Development and Renewal Agencies; and Title 17D,Limited Purpose Local Government Entities, Other Entities.

AFFORDABLE HOUSING

BackgroundFor many years the availability of affordable housing hasbeen a concern and topic of discussion. This interim, theCommittee was assigned three study items related toaffordable housing:• Residential Construction and Affordable Housing -

cost of municipal land use and construction regulationon residential construction and affordable housing;

• Manufactured Housing - manufactured and mobilehome parks preservation; and

• Zoning and Housing Development - ways for the stateto encourage zoning, which invites the developmentof a wide range of housing choices.

Early in the interim, the Committee devoted an entiremeeting to discussion of issues related to affordablehousing. At the conclusion of the meeting, the UtahLeague of Cities and Towns volunteered to organize an adhoc task force to bring interested parties together todiscuss affordable housing issues. At subsequentmeetings, the Committee heard updates from the ad hoctask force.

ActionThe Committee considered this issue at its April, June,August, and November 2008 meetings, but did notrecommend draft legislation.

ASSESSMENT AREA AMENDMENTS

BackgroundDesignation of an assessment area by a local entity allowsthat local entity to assess the property within theassessment area for the purpose of financing the costs ofimprovements, operation and maintenance, or economicpromotion activities that benefit property with theassessment area. Statutes regarding assessment areaswere recodified and rewritten by 2007 General SessionH.B. 65, "Special and Local District Amendments."

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The Committee considered several follow-up issues to the2007 recodification.

ActionThe Committee considered this issue at its April, May, andSeptember 2008 meetings and recommended draftlegislation, "Assessment Area Amendments."

FUNDING FOR LOCAL HEALTH DEPARTMENTS

BackgroundUtah has 12 local health departments. Local healthdepartments receive state funds, federal funds, and fundsfrom local sources such as property taxes.

The Committee met jointly with the Health and HumanServices Interim Committee and considered a request bylocal health departments that the Legislature study severalalternatives for increasing funding to local healthdepartments to enable them to better meet local needs byproviding services not mandated by the state or the federalgovernment. The Committee chairs agreed to follow-up onfour issues:• creation of an emergency fund;• imposition of a cigarette tax earmarked for local health

department activities;• mandatory use of the state/local consensus approach

to allocation of federal grants by the Department ofHealth to local health departments; and

• consideration of additional information requested fromlocal health departments as follows:< List each local health department duty and the

source of the duty (federal statute, federalregulation, state statute, state regulation,county/local health department ordinance,historical practice, etc.).

< List the activities used to fulfill each duty and thesource of funding during the past fiscal year foreach activity (license and user fees, penalties,ceiling-exempt property tax levy for public health,and other county revenues; state funds; federalfunds; etc.). For each activity, list any revenuesgenerated above and beyond, or in addition to,those used to fund the activity.

< For each local health department duty, describehow activities to fulfill the duty vary across healthdepartments. Are there state or nationallyrecognized standards related to those activities?How far above or below those standards is eachdepartment? Are there more effective activitiesdepartments could pursue to fulfill the duty?

< Does any fee imposed by a local healthdepartment duplicate a fee imposed by anotherstate or local agency?

At subsequent meetings the Committee received a writtenreport from the Utah Association of Local HealthDepartments on local health department duties andfunding sources.

ActionThe Committee considered this issue at its April, May,August, October, and November 2008 meetings andrecommended draft legislation, "Local Public HealthEmergency Funding," and "State and Local HealthAuthorities Amendments."

REPORTING LOCAL GOVERNMENT BOUNDARY

CHANGES

BackgroundPrior to 2005, the statutory requirements and processes forreporting a local government boundary change weresubstantially varied for the various types of localgovernments and types of boundary changes. H.B. 113,"Government Boundary Changes," 2005 General Session,standardized the flow of information and requirements forreporting a local government boundary change. Theprocess was standardized for reporting an entity creation,dissolution, division, consolidation, annexation, withdrawal,and boundary adjustments for municipalities, counties,special districts, local districts, redevelopment agencies,local school districts, and entities created by interlocalagreement. H.B. 447, "Government Entity Changes," 2008General Session, which proposed further refinements tothe standardized process, was held by the sponsor forfurther study during the interim.

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Draft legislation intended to improve the standardizedprocess was considered. The draft legislation essentiallyaddresses two issues: (1) the level of quality required forthe boundary plat; and (2) the flow of boundary changeinformation.

ActionThe Committee considered this issue at its April, October,and November 2008 meetings and recommended draftlegislation, "Local Government Entity Changes."

TOWNSHIPS

BackgroundA township is an area within the unincorporated part of acounty that has been established in accordance with UtahCode 17-27a-306. A township is given authority to have aplanning commission that makes land userecommendations to the county legislative body. Also,Utah Code 10-2-427 provides a township with someprotection against annexation into an adjacent municipalityunless the entire township is annexed.

H.B. 40, "Sunset of Township Provision," 2005 GeneralSession, extended the sunset date of Utah Code 10-2-427from July 1, 2006 to July 1, 2010. Also, H.B. 40 stated, "Itis the intent of the Legislature that: extending to 2010 thesunset date for Section 10-2-427 will give each county ofthe first class and municipalities within each county of thefirst class that are adjacent to township areas adequatetime to assess and evaluate the desires of residents andproperty owners within townships with regard toannexation, incorporation, or remaining in theunincorporated area of the county, and to develop a planto respond to and implement those desires..." H.B. 40required Salt Lake County and municipalities adjacent toa township to: (1) survey residents and property ownerswithin the township regarding their desires forincorporation, annexation, or remaining unincorporated byJuly 1, 2008; and (2) "work together to develop and, to theextent feasible, implement a plan to carry into effect theresults of the survey."

The Committee heard a status report from Salt LakeCounty.

ActionThe Committee considered this issue at its September2008 meeting, but did not recommend draft legislation.

OTHER STUDIES

Abandonment of Property Taken Under the Threat ofEminent DomainThe Utah Code outlines requirements and procedures forwhen property is abandoned and was taken by eminentdomain but the Utah Code is silent if the property wastaken under the threat of eminent domain. The Committeeheard a proposal that would treat abandonment of propertytaken under the threat of eminent domain similar toabandonment of property taken by eminent domain.

The Committee considered this issue at its November2008 meeting, but did not recommend draft legislation.

County SurveyorsThe Committee discussed the concepts of S.B. 129,"Changes to County Surveyor," and S.B. 153, "Revision toCounty Elected Offices," both introduced in the 2008General Session.

The Committee considered this issue at its April and May2008 meetings, but did not recommend draft legislation.

Designation of an Assessment AreaA municipality, and some other local entities, is statutorilyauthorized to designate an assessment area underTitle 11, Chapter 42, Part 2. Designation of an assessmentarea by a local entity allows that local entity to assess theproperty within the assessment area for the purpose offinancing the costs of improvements, operation andmaintenance, or economic promotion activities that benefitproperty with the assessment area. A recent designationraised some concerns about the current statutory processfor designating an assessment area. The concerns werediscussed.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

Disaster Funding

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The Committee considered a proposal that would: (1) allowlocal districts to set aside funding in a disaster recoveryfund to be used in the event of a disaster; and (2) allowmunicipalities and other entities to obtain a loan from thestate disaster recovery fund in the event the municipality'sdisaster recovery funds are insufficient and the statedisaster recovery fund has unneeded funds.

The Committee considered this issue at its April andAugust 2008 meetings, but did not recommend draftlegislation.

Ground Water Management DistrictThe Committee considered a proposal that would authorizethe creation of a groundwater management district toaddress ground water over-allocation issues. This proposalcould potentially resolve a problem of over-allocation ofground water in the Enterprise/Beryl area of Utah.

The Committee considered this issue at its April andNovember 2008 meetings, but did not recommend draftlegislation.

Improvement District for Electric ServiceThe Committee considered a proposal that would authorizethe creation of an improvement district to provide electricservice. This proposal could potentially resolve ageographic isolation problem of providing electrical serviceto Ticaboo in Garfield County.

The Committee considered this issue at its April andNovember 2008 meetings, but did not recommend draftlegislation.

Quality Growth Commission Annual ReportIn 1999, the Legislature created the Utah Quality GrowthCommission and required an annual report to theLegislature. Representatives of the Utah Quality GrowthCommission reported on the state of quality growth in Utahand outlined local government planning needs.

The Committee considered this issue at its October 2008meeting, but did not recommend draft legislation.

Relationship of Local Regulation and State AgencyActivitiesThe Legislature has given municipalities and countiesbroad authority for regulating land use within theirjurisdictions. However, that authority does not extend toregulating land owned by the state, although under certaincircumstances state agencies are required to cooperateand coordinate with municipalities and counties. TheCommittee discussed several case studies involving theDepartment of Transportation, School and InstitutionalTrust Lands Administration, and Division of WildlifeResources, in which local officials and property ownersbelieved they did not have enough say in the land usedecision. The Committee considered whether stateagencies who acquire or develop land should be requiredto abide by local city and county ordinances, the wishes ofthe county legislative body, or the city mayor and council.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

Riparian Overlay ZonesThe Committee considered whether cities should beallowed to put riparian overlay zones on streams andcreeks which are used as storm sewers, and whereuntreated run-off water is channeled.

The Committee considered this issue at its April andSeptember 2008 meetings, but did not recommend draftlegislation.

Vision Dixie Vision Dixie is a county-wide conversation that wascreated to provide opportunities for the public to make

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informed recommendations for the future of WashingtonCounty. Residents were asked to help outline a broadvision for how Washington County could accommodatepopulation growth, protect its environment, enhance itseconomic strength, and maintain its quality of life. VisionDixie is an outgrowth of the Washington County Growthand Conservation Act of 2006, the so-called Lands Bill.Vision Dixie was formed to help Washington Countyresidents find areas of common interest and guidedecisions on public land disposal. The Committee wasbriefed on Vision Dixie as an example of what could bedone in other parts of the state.

The Committee considered this issue at its April 2008meeting, but did not recommend draft legislation.

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PUBLIC UTILITIES AND TECHNOLOGY INTERIM COMMITTEE

2008 Legislative Interim Report 71

PUBLIC UTILITIES AND TECHNOLOGY INTERIMCOMMITTEE

MembershipSen. Scott K. Jenkins, Senate ChairRep. Michael E. Noel, House ChairSen. Mike DmitrichSen. Mark B. MadsenSen. Darin G. PetersonSen. Carlene M. WalkerRep. Roger E. BarrusRep. Rebecca Chavez-HouckRep. Jim BirdRep. Melvin R. BrownRep. Janice M. FisherRep. Lynn N. HemingwayRep. Steven R. MascaroRep. Kay L. McIffRep. Aaron Tilton

StaffRichard C. North, Policy AnalystVictoria Stirling, Associate General CounselTracey Fredman, Legislative Secretary

OVERVIEW

The House Public Utilities and Technology StandingCommittee was created in 1997 to review legislationrelated to telecommunication and energy utilities. TheLegislature also created the Public Utilities and TechnologyInterim Committee to provide additional year-roundresearch and review of utility and technology issues.

CLIMATE CHANGE

BackgroundScientific research and measurement of the earth's pastand present climates have revealed significant changescharacterized by very temperate time periods and verycold ice ages. The focus of research is to understand howcertain emissions, such as carbon and methane gasses,among others, are involved in climate change. As a resultof the research, government and industry are creatingcommission-type entities to look at public policiesregarding climate change.

The Western Climate Initiative and the Governor's BlueRibbon Commission on Climate Change are two examplesof policy entities created in 2007 designed to raiseawareness about climate change. Over the last two years,the Western Climate Initiative members have developed acap and trade proposal for reducing greenhouse gasemissions and an implementation timeline. The 2009phase of the Initiative calls for the creation of an executive-legislative branch task force to recommend legislationnecessary for the statutory implementation.

ActionThe Committee considered this issue at its June, October,and November 2008 meetings, but did not recommenddraft legislation.

ENERGY FUEL SOURCE DEVELOPMENT

BackgroundRapidly increasing populations, projected electric energydemands, and rising oil prices in today's highly competitiveenergy markets are driving the development of new andtraditional fuel sources.

Traditional resource industries are developing cleaner andsafer technologies such as clean coal, hydro-gasification,and nuclear pellets. Other fuel sources, such as oil shale,are also undergoing new development as the high price ofoil provides economic justification.

Newer fuel source development includes renewables suchas solar, wind, geothermal, and biomass. The developmentof these fuel sources are also benefitting from the highprice of oil and new technology creating lower base costs.

The Committee received reports and heard testimonyregarding the urgency of developing a variety of newenergy technology and energy fuel sources.

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ActionThe Committee considered this issue at its April,September, October, and November 2008 meetings, butdid not recommend draft legislation.

UTILITY TRANSMISSION CORRIDORS SITING

BackgroundThe current statutory process for siting a utilitytransmission corridor begins when a utility identifies apower and transmission need then requests that the PublicService Commission hold a hearing and grant a certificateof convenience. The certificate then allows the utility toconstruct a transmission line after negotiating andreceiving conditional use permits from any affected localpolitical subdivisions. If an affected local politicalsubdivision requires siting changes from what the utilityhas chosen, then the local political subdivision either paysthe excess costs for moving the transmission corridor orrequests a hearing of the Utah Utility Facility ReviewBoard. The Board's powers include deciding if the excesscosts of the conditional use permit should be spreadacross all the ratepayers in the state or only by the localpolitical subdivision.

It is projected that Utah will continue to experience–as ithas for the last 20 years–a significant increase in thedemand for electricity based on the state's rapid populationand business growth. Utah currently has one high voltagetransmission line corridor in process, the Ben Lommond-Populus, and six more in the near future.

ActionThe Committee considered this issue at its June, August,September, and November 2008 meetings andrecommended draft legislation, "Utility TransmissionCorridor Siting Task Force."

OTHER STUDIES

Area Code ImplementationIncreasing populations across the United States haveresulted in the exhaustion of telephone numbers withinexisting area codes and the consequent need to assignnew area codes to the same geographic locations. Utah

currently has area codes 801 and 435, and will start using385 in March 2009. When an area code is exhausted, thePublic Service Commission conducts a hearing anddecides whether the overlay or split method will best servethe state's long-term needs. The Committee consideredthis issue at its August and November 2008 meetings, butdid not recommend draft legislation.

Electric Power Line UpgradesIncreased power line voltage and stability to safely andcost-effectively serve electric utility customers is an issuein rural areas experiencing increased agricultural,commercial, and residential development. The Committeeconsidered this issue at its August 2008 meeting, but didnot recommend draft legislation.

Underground Sewage FacilitiesWith increased urban development and the need to placeadditional pipe facilities in rights of way, locating existingsewage, cable, gas, and water lines has become a criticalsafety and ownership issue. The Committee consideredthis issue at its May and November 2008 meetings, but didnot recommend draft legislation.

Utilities in Mobile Home ParksMobile home park utilities are either provided by the parkowner or individual sites within the park have their ownmeters. Where parks provide the utility services, monthlyrates and utility infrastructure ownership and maintenancecosts have become issues. The Committee considered thisissue at its May and November 2008 meetings, but did notrecommend draft legislation.

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REVENUE AND TAXATION INTERIMCOMMITTEE

MembershipSen. Wayne L. Niederhauser, Senate ChairRep. John Dougall, House ChairSen. Curtis S. BrambleSen. Mike DmitrichSen. Brent H. GoodfellowSen. Howard A. StephensonPres. John L. ValentineRep. Douglas C. AagardRep. Rebecca Chavez-HouckRep. Tim M. CosgroveRep. Julie FisherRep. Craig A. FrankRep. Gage FroererRep. Wayne A. HarperRep. Fred R HunsakerRep. Rosalind J. McGeeRep. Carol Spackman MossRep. Merlynn T. NewboldRep. Paul RayRep. Aaron Tilton

StaffPhillip V. Dean, Policy AnalystLeif G. Elder, Policy AnalystBryant R. Howe, Assistant DirectorAngela D. Oakes, Associate General CounselRebecca L. Rockwell, Associate General CounselPhalin L. Flowers, Legislative Secretary

OVERVIEW

The Revenue and Taxation Interim Committee studies awide range of policy issues and reviews potentiallegislation affecting the structure and administration ofUtah's state and local tax systems. These studies rangefrom establishing new policy to implementing existingpolicy.

In addition to its regular policymaking emphasis, theCommittee makes a special effort to focus on its revenueresponsibility and regularly receives briefings from staff on

current state tax revenue collection trends and informationon current state and national economic conditions.

The Committee also receives recommendations from theUtah Tax Review Commission (TRC), which is anindependent study group composed of legislators, taxpractitioners, academics, and citizen representatives. TheTRC reports annually to the Committee.

CREDITS AND CONTRIBUTIONS LISTED ON INCOME TAX

RETURNS

BackgroundUnder the Utah individual income and corporate franchiseand income taxes, taxpayers may claim certain credits forvarious spending and investment activities, such asresearch and development, restoration of historic housing,and contributions to sheltered workshops. Under the Utahindividual income tax, taxpayers may also makecontributions, the proceeds from which benefit programssuch as assistance for the homeless and non-gamewildlife.

State law provides that unless a minimum number oftaxpayers claim these credits over a certain period of timeor a minimum dollar amount of contributions are made overa certain period of time, the credit or contribution isremoved from the tax form.

Over the last several years, some credits and contributionshave been removed from tax forms by the Utah State TaxCommission. The Commission requested that theCommittee consider and endorse legislation repealingthese credits and contributions from the Utah Code sincethey no longer meet the threshold requirements to beincluded on a tax form.

ActionThe Committee considered this issue at its August 20,2008 meeting and recommended draft legislation, "Repealof Certain Income Tax Credits and Contributions."

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HIGHER EDUCATION TUITION TAX CREDIT

BackgroundFinancing of higher education is a major concern to manyUtahns. The Committee reviewed ways to improve accessto higher education through the use of tax credits. Underthe proposal studied by the Committee, a taxpayer wouldbe able to claim a nonrefundable credit equal to a portionof the cost of a higher education obtained at an eligibleUtah institution of higher education. The nonrefundablecredit is equal to five percent of the claimant's tax liabilitybefore tax credits and the claimant may carry forward thetax liability to future taxable years.

ActionThe Committee considered this issue at its September 17and November 19, 2008 meetings and recommended draftlegislation, "Nonrefundable Higher Education TuitionCredit."

LEGISLATION REQUESTED BY THE UTAH STATE TAX

COMMISSION

BackgroundThe Utah State Tax Commission is constitutionally chargedwith the overall control and supervision of the state's taxsystem. Each year, the Commission asks the Committeeto review and endorse various legislation related to theadministration and collection of taxes.

ActionThe Committee considered this issue at its November 19,2008 meeting and recommended draft legislation:• "Cigarette Tax Exemption Amendments,"• "Amendments to Sales and Use Tax Exemption for

Certain Machinery, Equipment, or Parts,"• "Amendments to Vehicle Registration Requirements,"• "Withholding Tax Amendments,"• "Amendments to Tourism, Recreation, Cultural,

Convention, and Airport Facilities Tax Act,"• "Sales and Use Tax Definitions Relating to Property,"• "Sales and Use Tax Amendments,"• "Exemptions from Requirements to Deduct and

Withhold an Income Tax,"

• "Sales and Use Tax - Determining the Location ofCertain Transactions," and

• "Reporting of Certain Transactions Exempt from Salesand Use Taxes."

TRANSPARENCY IN GOVERNMENT FINANCIAL

REPORTING

BackgroundDuring the 2008 General Session, the Legislature enacted"Transparency in Government Finance," which created theUtah Transparency Advisory Board and began the processto improve the public's access to certain governmentfinancial documents, such as budgets, audits, vendorpayments, and summaries of financial information. As partof implementing this new legislation, state government,state institutions, and political subdivisions are nowworking to make available through the Internet all sorts offinancial information.

ActionThe Committee considered this issue at its November 19,2008 meeting and recommended draft legislation, "UtahTransparency Advisory Board Amendments."

UTAH'S PROPERTY TAX SYSTEM

BackgroundA property tax has been imposed in Utah since beforestatehood. Utah's property tax system provides revenue forschools, counties, municipalities, and local districts. Theproperty tax is also used to secure general obligationbonds issued by the state and its political subdivisions.

Compared to other states, property taxes in Utah aregenerally low. However, the property tax is a politicallyunpopular tax due to its visibility, perceptions of unfairadministration, and no linkage between a taxpayer'sproperty tax burden and ability to pay.

The property tax has also recently come under fire foranother reason: lack of tax certainty. Certainty is ahallmark of an optimum tax system. Taxpayers should becertain that over time, absent any major change in theireconomic activity or condition, that their overall tax liability

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will not dramatically change. During the last several years,some property taxpayers have seen dramatic year-overincreases in their property tax liability. While some of theseincreases were due to a booming housing market, sometaxpayers faced large increases because some countyassessors had previously failed to keep assessed valuescurrent with fair market value, as required by the stateconstitution.

The Committee conducted a comprehensive review ofUtah's property tax system. As part of this review, and tofind ways to improve taxpayer certainty, the Committeeconducted hearings and received presentations on thefollowing topics:• staff presentation on an overview of Utah's property

tax system, including administration, roles andresponsibilities, revenue, base, rates, exemptions,differences between counties, comparison with otherstates, the role of the property tax in public schoolfinancing, and constitutional requirements;

• staff presentation on the property tax burden onrenters, homeowners, and business owners;

• staff presentation on 2007 over 2006 changes inassessed valuation for residences and selectedapartment complexes;

• staff presentation on Community Development andRenewal Agencies;

• staff presentation on the role of the property tax infunding public schools and public school fundingequalization;

• presentation from the Utah State Tax Commission onproperty tax administration, supervision and oversightof local administration of the property tax system, truthin taxation, and appraisal of centrally assessedproperty;

• presentation from county assessors on localassessment practices, administration, andmethodology;

• testimony from the Office of the State Auditor on theassessing and collecting property tax levy;

• testimony from Joan Youngman, Lincoln Institute ofLand Policy, a noted property tax scholar whopresented testimony on property tax limitation in otherstates and an overview of a land value tax;

• testimony from Jonathan Coupal, Howard JarvisTaxpayers Association, who provided information onthe benefits of California's Proposition 13; and PeterDetwiler, Staff Director, California Senate LocalGovernment Committee, who provided testimony onthe effects of property tax limitation in that state;

• testimony from Dr. John Merrifeld, University of Texasat San Antonio, on the effects of replacing periodicreassessment of property with acquisition value withan annual inflation adjustment;

• testimony from James Wood, Bureau of Economicand Business Research, University of Utah, on recenttrends in the Utah housing market;

• testimony from Thomas Wright, FairTax.org, on thebenefits of a broad based consumption tax;

• testimony from the state's centrally assessed propertytaxpayers;

• testimony from the Utah Coalition for Property TaxFairness on the benefits of redefining fair marketvalue to acquisition value plus an annual inflationadjustment; and

• testimony from the Utah Association of SpecialDistricts regarding the authority of local districts withnon-elected board of directors to impose a propertytax.

The Committee considered two proposals to improve taxcertainty and predictability for individual propertytaxpayers. Under one proposal, developed by thecommittee chairs, a property's taxable value would beequal to its fair market value in a base year or the value forwhich it was acquired. This value would then be annuallyscaled by a growth factor. Tax rates would still be set bytaxing entities and would be adjusted to conform with thecurrent truth in taxation law. The other proposal consideredby the Committee was presented by the Utah Coalition forProperty Tax Fairness. This proposal called for: (a)redefining "fair market value" to acquisition value plus anannual stabilization index; (b) limiting annual property taxincreases; (c) allowing some homeowners to transport theirprevious tax base if they purchase a new home; and (d)shifting up to 50 percent of school property taxes to salesand use taxes.

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The Committee also considered a proposal for anassessment cap and deferral program submitted by theWashington County Assessor. Under this proposal, annualincreases in the taxable value of any residential propertywould be limited to a certain percentage. Any increaseabove the limit would be applied to future tax years.

Because over half of property tax revenue goes to publicschools, the Committee also considered proposals toreduce the public school system's reliance on property taxand to more fully equalize per pupil funding.

ActionThe Committee considered this issue at its April 16, May21, June 5, June 18, July 8, August 20, September 17,September 24, October 15, November 12, November 19,and December 16, 2008 meetings and recommended draftlegislation:• "Certified Tax Rate Amendments,"• "Personal Property Tax Amendments,"• "Public Hearings on Property Tax Increases," and • "Property Tax Amendments."

OTHER STUDIES

Highway Congestion Pricing The Committee received testimony on the benefits ofcongestion pricing and the use of high occupancy toll lanesduring peak congestion periods. Congestion pricing is seenas an alternative to traditional highway financing methods,such as gasoline excise taxes. While the technology is notyet available to implement a financing system based solelyon vehicle miles traveled, some congestion pricingalternatives, such as high occupancy toll lanes, can nowbe implemented. The Committee considered this issue atits August 20, 2008 meeting, but did not recommend draftlegislation.

Lodging, Restaurant, and Motor Vehicle RentalTaxesThe state, counties, and municipalities are authorized toimpose specific taxes on short-term leases of lodgingaccommodations, the sale of restaurant meals, and theshort-term leasing of motor vehicles. Revenue from thesespecific taxes are used for general fund purposes as wellas for tourist promotion, the construction and maintenanceof convention facilities, and to purchase highway rights-of-way.

The Committee reviewed the specific taxes that areauthorized to be imposed, who imposes these taxes, theallowable uses of revenue from these taxes, and howthese taxes compare to those imposed in neighboringstates.

The Committee considered this issue at its May 21, 2008meeting but did not recommend draft legislation.

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RURAL DEVELOPMENT LEGISLATIVE LIAISONCOMMITTEE

MembershipSen. Dennis E. Stowell, Senate ChairRep. DeMar "Bud" Bowman, House ChairSen. Mike DmitrichSen. Fred J. FifeSen. Scott K. JenkinsRep. Melvin R. BrownRep. James R. GowansRep. Eric K. HutchingsRep. Brad KingRep. Patrick L. PainterRep. Mark A. Wheatley

StaffStewart E. Smith, Policy AnalystJames L. Wilson, Associate General CounselJoy L. Miller, Legislative Secretary

OVERVIEW

The Rural Development Legislative Liaison Committee isone of four entities created by the Utah Legislature in 2004to bring significant statewide coordination and focus onrural economic development issues.

Rural Development Legislative Liaison CommitteeThe duties of the Rural Development Legislative LiaisonCommittee are to:• serve as a liaison between the Governor's Rural

Partnership Board, the Utah Rural DevelopmentCouncil, rural economic development and planninggroups, and the Legislature;

• recommend legislation for each annual generalsession of the Legislature if the Committeedetermines that modifications to current law are in thebest interest of the state and the economic andplanning interests of rural Utah;

• review the operations of the Office of RuralDevelopment and other state agencies involved inrural economic development and planning; and

• help sponsor meetings and other opportunities fordiscussion with and between rural economicdevelopment and planning interests.

Governor's Rural Partnership Board (GRPB)The 15-member GRPB works collaboratively with the UtahRural Development Council and the Rural CoordinatingCommittee to develop an annual strategic plan thatincludes a work plan for accomplishing the objectives itidentifies for rural economic development. It also functionsas an advisory board to the governor on rural economicand planning issues.

Office of Rural DevelopmentThe Office of Rural Development within the Governor'sOffice of Economic Development helps facilitate theimplementation of the strategic plan developed by theGRPB. The Office also helps foster and support economicdevelopment for the benefit of rural counties andcommunities.

Rural Coordinating CommitteeThe Rural Coordinating Committee coordinates efforts andresources to help implement the strategic plan for ruraleconomic development, planning, and leadership training.

GOVERNOR'S RURAL PARTNERSHIP BOARD (GRPB)REPORT TO THE LEGISLATURE

BackgroundThe GRPB is required by law to make recommendationson economic planning and development in the state's ruralareas and on related issues to the Legislature through theRural Development Legislative Liaison Committee. TheGRPB made the following prioritized recommendations inits 2008 report to the Legislature:• Education Reform and Workforce Development. This

top priority includes K-16 education, curriculum andgovernance of the Utah College of AppliedTechnology, and immigration as it pertains to the workforce. The GRPB's concern is the need for more andbetter qualified workers if businesses andcommunities are to survive in rural Utah.

• Infrastructure. Basic infrastructure includes roads,commercial air service, telecommunications, water,gas, and electricity which are essential for economicdevelopment and quality of life in rural Utah.

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• Business Resource Centers. The 2008 Legislatureenacted the Utah Business Resource Centers Act,which describes the business resource center conceptand duties. These business resource centers provideassistance in coordinating available resources forbusiness development. The GRPB would like to seethe number of these centers expand from the threethat the Legislature funded.

• Health Care and Insurance Reform. The GRPB wantsto find a way for small businesses and entrepreneursto obtain affordable health care and insurance in ruralUtah. The GRPB believes that this business need isessential to having a flourishing entrepreneurial, smallbusiness economy in rural Utah.

ActionThe Committee considered this issue at its November2008 meeting and recommended that the Legislature alsosupport prioritization of four new off-ramps on I-15 nearMills, Utah in Juab County to accommodate new industry,jobs, and revenue to the state.

OTHER STUDIES

Utah Science Technology and Research AuthorityIn addition to the four priorities listed above, the GRPBrequests that the Utah Science Technology and ResearchAuthority (USTAR), the executive, and the legislativebranches of state government impanel and vigorouslyutilize the advisory board provided for by statute to assureUSTAR benefits to rural Utah. The Committee consideredthis issue at its November 2008 meeting, but did notrecommend draft legislation.

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TRANSPORTATION INTERIM COMMITTEE

MembershipSen. Carlene M. Walker, Senate ChairRep. Todd E. Kiser, House ChairSen. Scott K. JenkinsSen. Sheldon L. KillpackSen. Karen MayneSen. Kevin T. VanTassellRep. Stephen D. ClarkRep. Bradley M. DawRep. Bradley G. LastRep. Ben C. FerryRep. Richard A. GreenwoodRep. Lynn N. HemingwayRep. Kory M. HoldawayRep. Brad KingRep. Ronda Rudd MenloveRep. Brian P. Monsen (as of 8/1/2008)Rep. Paul A. NeuenschwanderRep. LaWanna "Lou" ShurtliffRep. Mark W. Walker (until 7/6/2008)

StaffLeif G. Elder, Policy AnalystShannon C. Halverson, Associate General CounselTracey Fredman, Legislative Secretary

OVERVIEW

The Transportation Interim Committee has responsibilityfor issues relating to the safe and efficient movement ofpeople and property within Utah. Issues considered by theCommittee include highway construction and maintenance,highway safety, traffic laws, motor vehicle insurance, driverlicensing and personal identification, vehicle licensing andregistration, transportation-related taxation, and publictransportation.

The Committee has oversight responsibility for the UtahDepartment of Transportation (UDOT), the Driver LicenseDivision of the Department of Public Safety, and the MotorVehicle and Motor Vehicle Enforcement Divisions of theUtah State Tax Commission. In addition, the Committeehears periodic reports by the Utah Transit Authority relatingto public transit issues.

DUI AMENDMENTS

BackgroundAlcohol and drug-impaired drivers kill or injure manypeople on Utah roadways each year. To aid the Committeein assessing the effectiveness of Utah's laws in deterringdriving under the influence violations, the Commission onCriminal and Juvenile Justice annually reports to theCommittee on the most current DUI-related data, such ascharacteristics of those arrested, number of crashesinvolving injuries and fatalities, number of convictions,average jail sentences, and treatment program outcomes.The report also provides recommendations.

ActionThe Committee considered this issue at its November2008 meeting and recommended draft legislation, "DUIAmendments."

REAL ID ACT OF 2005

BackgroundThe REAL ID Act of 2005 was enacted by Congress toimprove the security of identification. Eventually citizensmay not use state issued identification at federal facilities,including commercial airliners, Social Security offices, etc.,unless the identification is issued in accordance with theAct and Department of Homeland Security rules. Earlierthis year, Utah was granted an extension until December31, 2009 to comply with the Act. If the state shows materialcompliance, it can apply for an additional extension thatwould be effective until May 10, 2011. Earlier this year,Utah received federal grant money that can be used to payfor some of the costs of complying with the Act.

ActionThe Committee considered this issue at its April, June, andNovember 2008 meetings, but did not recommend draftlegislation.

ROAD AND BRIDGE MAINTENANCE

BackgroundUtah's bridges are in good condition although most of themwere built in the 1960s and 1970s. Those bridges weredesigned to last for 40 years, but due to good maintenance

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practices implemented by UDOT, some of the bridges willlikely last closer to 50 years. However, according to UDOTover 500 bridges are due to be replaced over the nextdecade.

Like most infrastructure, the condition of a road tends todegrade over time. Through timely maintenancetreatments, the life of a road can be extended by severalyears. Maintaining a road costs less in the long run thanletting a road degrade until it needs to be rebuilt. In apresentation to the Committee, UDOT said that theirstrategy in regard to roads has been to keep them wellmaintained to avoid the high costs of having to replacethem. However, due to the skyrocketing costs of materialsused to build and maintain roads and the increasingnumber of roads that need to be maintained, UDOT saidthat it cannot sustain the current maintenance levels forstate roads. UDOT informed the Committee thatmaintenance levels for roads, other than interstate roads,have been on the decline since 2004. UDOT also said ithas been researching ways to make roads last longer.

ActionThe Committee considered this issue at its June andAugust 2008 meetings, but did not recommend draftlegislation.

OTHER STUDIES

Driver License Issues Involving Motor Driven CyclesAs motor fuel costs have increased, certain fuel efficientvehicles, such as motor-driven cycles, have become morepopular. A motor-driven cycle includes motorcycles, motorscooters, mopeds, electric assisted bicycles, motorassisted scooters, and motorized bicycles that have anengine with less than 150 cubic centimeters displacementor a motor that produces 5 horsepower or less. There hasbeen some confusion on what licenses and endorsementsare needed to operate certain motor-driven cycles. TheCommittee considered this issue at its September andNovember 2008 meetings and recommended draftlegislation, "Driver License Amendments - Motor DrivenCycles."

Firefighter Special Group License PlateAmendmentsThe Committee considered proposed legislation thatconverts the existing firefighter special group license platefrom a recognition special group license plate to acontributor special group license plate. Applicants for acontributor plate would be required to make a $15 annualdonation to the Firefighter Support Restricted Account.Upon renewing their motor vehicle registration, a personwho has already been issued a firefighter recognition platecan choose to donate $15 to the restricted account orreplace the recognition plate with a new license plate. TheCommittee considered this issue at its November 2008meeting and recommended draft legislation, "FirefighterSpecial Group License Plate Amendments."

Motor Carrier SafetyThe Federal Motor Carrier Safety Administration (FMCSA)conducted a regulatory review of Utah's Motor CarrierSafety Assistance Program in April of this year. TheFMCSA found that Utah was not compliant with certainregulations. Remaining noncompliant could jeopardizefederal funding of motor carrier programs. The Committeeconsidered this issue at its September and October 2008meetings and recommended draft legislation, "CommercialMotor Vehicle Amendments."

Motorcycle Rider EducationDuring the 2008 General Session, the Legislature enactedH.B. 72, "Motorcycle License and EndorsementAmendments." This legislation prohibited the DriverLicense Division from issuing a motorcycle endorsementto a person under 19 years of age who has not held amotorcycle learner permit for two months unless theperson completes a motorcycle rider education program.The legislation also provides that a motorcycle learnerpermit may only be issued to a person who holds a driverlicense.

The Committee considered allowing a person who holds avalid learners permit and is at least 15 years and sixmonths of age to enroll in and complete a rider trainingcourse if the course meets certain requirements. TheCommittee considered this issue at its November 2008

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meeting and recommended draft legislation, "MotorcycleRider Education Program Amendments."

State Highway SystemPublic highways in the state are owned and maintained byvarious government entities. State highways are usedprimarily for interstate or inter-region movement of goodsand people and generally have higher traffic volumes thanhighways maintained by other jurisdictions. County and cityhighways are used primarily for access to homes,businesses, or property. As the demographics of an areachange, highway characteristics may also change. In areasof rapid growth, a highway that was once local in naturecan become a primary thoroughfare. In other instances,the state has jurisdiction of a road that serves a localpurpose. The Committee considered potential changes tothe state highway system based on recommendationsmade by the Transportation Commission and localgovernments. The Committee considered this issue at itsJune, October, and November 2008 meetings andrecommended draft legislation, "Designation of StateHighways Amendments."

Street Legal All-terrain Vehicle AmendmentsDuring the 2008 General Session, the Legislature enactedS.B. 181, "Off-Highway Vehicle Use on Public Highways."This legislation defined equipment and other requirementsnecessary to operate certain all-terrain vehicles onspecified public highways.

During the interim, some law enforcement agenciesexpressed concerns that S.B. 181 may have someunintended consequences. The Committee consideredlegislation that would set requirements for height andwidth, tire tread, driver licensing, and safety inspectioncertificates for street-legal all-terrain vehicles. TheCommittee considered this issue at its August andNovember 2008 meetings and recommended draftlegislation, "Street Legal All-terrain Vehicle Amendments."

Traffic Accident Clearance AmendmentsCurrent state statute requires the operator of a vehicleinvolved in an accident resulting only in damage to anothervehicle or other property to immediately stop the vehicle atthe scene of the accident or as close as possible without

obstructing traffic. The operator is also required to reportthe accident to the nearest law enforcement agency if theaccident resulted in $1,000 or more of property damage.The Committee considered allowing an operator of avehicle involved in an accident resulting only in damage toanother vehicle or other property to move the vehicle assoon as possible off the roadway or freeway main lines,shoulders, medians, or adjacent areas to a location on anexit ramp shoulder, a frontage road, the nearest suitablecross street, or other suitable location that does notobstruct traffic and increasing the property damage limitfrom $1,000 to $2,000. The Committee considered thisissue at its November 2008 meeting and recommendeddraft legislation, "Traffic Accident Clearance Amendments."

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UTAH INTERNATIONAL TRADE COMMISSION

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UTAH INTERNATIONAL TRADE COMMISSION

MembershipSen. Mark B. Madsen, Senate ChairRep. Sheryl L. Allen, House ChairSen. Brent H. GoodfellowSen. Carlene WalkerRep. Jackie BiskupskiRep. Kerry W. GibsonRep. Eric K. HutchingsRep. Brad KingMr. Brett W. HeimburgerMr. Miguel R. Rovira

StaffRichard C. North, Policy AnalystVictoria Stirling, Associate General CounselTracey Fredman, Legislative Secretary

OVERVIEW

In 2006, the Commission was created as a response to thegrowing number of international trade treaties and theirimpact on state government and Utah business. Becauseinternational treaties ratified by the U.S. Senate have theeffect of federal law, all states, including Utah, are subjectto their provisions. In some areas, such as gambling, theremay be a conflict between Utah state laws andinternational treaty provisions.

International imports and exports to Utah can also beaffected by the terms of global treaties. The Commission'sother statutory charge is to assist and promote localbusinesses in developing international trade opportunities.

INTERNET GAMBLING

BackgroundIn 1995 the United States and other World TradeOrganization (WTO) members approved the GeneralAgreement on Trades in Services (GATS) treaty. Cross-border gambling was one of the services agreed to andwas made available via the Internet. The United Statesprohibited cross-border gambling and in 2003, Antigua andBarbuda filed a trade dispute with the WTO. In 2004 theWTO Dispute Review Panel ruled against the United

States. Negotiations including arbitration between theparties did not produce any favorable results over thefollowing three years and the WTO appellate body refusedto review the case.

Currently, the WTO is in the process of determining howcompensation will be awarded, and the United States hasannounced it is withdrawing its GATS cross-bordergambling. The WTO allows member nations to withdrawtreaty commitments but only after compensating affectedmembers and not as a mechanism to resolve disputes.

ActionThe Committee considered this issue at its May, October,and November 2008 meetings and recommended draftlegislation, "Resolution Urging the Withdrawal of UnitedStates' World Trade Organization Commitment onGambling."

UTAH INTERNATIONAL TRADE

BackgroundUtah has multiple international trade entities, public andprivate, that provide leadership and support for its tradeexports: the governor's Utah International Trade andDiplomacy Office; the Office of Economic Development;and the Utah World Trade Center. The Utah InternationalTrade Commission was also created in 2006 by theLegislature to provide for trade development and to provideoversight.

International trade with Utah accounts for over 17 percentof the state's gross domestic product, totals over $1 billionin export dollars, and has grown 65 percent since 2004.Major trading partners include China, India, Mexico, andAsia, and the top three export categories are primarymetals, electronics, and food preparations.

ActionThe Committee considered this issue at its May andOctober 2008 meetings, but did not recommend draftlegislation.

OTHER STUDIES

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United States - Columbia Free Trade ActThe proposed Free Trade Act is designed to eliminatetariffs on goods exported to Columbia from the UnitedStates that would result in an additional $4 billion of newtrade for the United States. Currently, over 90 percent ofall goods coming from Columbia to the United States areduty-free. At this time, the United States Senate hasdeferred action on the treaty until next year. TheCommittee considered this issue at its May 2008 meeting,but did not recommend draft legislation.

United States Trade Assistance ActThe Commission reviewed how the United Statesgovernment has provided monetary and educationalbenefits to workers displaced by international trade andoutsourcing of jobs. The Trade Assistance Act wascompanion federal legislation with the Trade Act of 1974and is the mechanism that Congress uses to provideannual appropriations for displaced workers who meet thecriteria and apply.

United States Trade Representative Office'sIntergovernmental Policy Advisor Committee(IGPAC)The IGPAC was created by Congress in the Trade Act of1974 to provide input from parties, such as states, notdirectly involved in trade negotiations. Utah is one of onlythree state legislatures represented on the 30 membercommittee. The IGPAC provides state and localgovernment input on how trade treaties will affect theirgovernment's ability to domestically regulate and conducttrade. The Committee considered this issue at its October2008 meeting, but did not recommend draft legislation.

World Trade Organization (WTO)The WTO was created in 1995 by the 125 signatories tothe 1947 General Agreement on Trades and Tariffs(GATT). Between 1947 and 1995, attempts were made tocreate the International Trade Organization for the purposeof managing the GATT agreement. Until the WTO wascreated, all provisions of the GATT agreement wereconsidered provisional rather than permanent andenforceable. The WTO process of developing broadtreaties has, in the last 10 years, been undercut with thegrowth of the Internet and nations agreeing individually

among themselves. Examples in the United States includethe North American Free Trade Act, the Dominican-CentralAmericas Free Trade Act, and the Canadian-United StatesFree Trade Act. The Committee considered this issue at itsMay and October 2008 meetings, but did not recommenddraft legislation.

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UTAH TAX REVIEW COMMISSION

MembershipMr. M. Keith Prescott, ChairMr. David Crapo, Vice ChairSen. Lyle W. HillyardSen. Brent H. GoodfellowSen. Wayne L. NiederhauserRep. John DougallRep. Wayne A. HarperRep. Rosalind J. McGeeMr. Larry BaruschMr. Mark K. BuchiMr. Gary CorniaMs. Janis A. DubnoMs. Kathleen HowellCommissioner Bruce JohnsonMr. Bruce JonesMr. Dixie Leavitt

StaffPhillip V. Dean, Policy AnalystLeif G. Elder, Policy AnalystBryant R. Howe, Assistant DirectorAngela D. Oakes, Associate General CounselRebecca L. Rockwell, Associate General CounselPhalin L. Flowers, Legislative Secretary

OVERVIEW

The Utah Tax Review Commission (TRC) was created bythe Legislature to comprehensively review the tax laws andthe political subdivisions of the state and all issues relatedto revenue and taxation. The TRC also makesrecommendations to the governor and the Legislature onspecific tax issues and the tax policy of the state and itspolitical subdivisions. Members of the TRC are appointedby the governor, the Speaker of the House ofRepresentatives, the President of the Senate, and by theTRC.

OIL AND GAS SEVERANCE TAXES

BackgroundSince 1964, the state has imposed a tax on the severing ofoil, natural gas, and liquid natural gas from the ground.Called a severance tax, this tax yielded just over $73million in revenue in FY 2008.

The TRC has twice been asked to review certain aspectsof the oil and gas severance tax. In 2008, the TRC wasdirected by statute to study and make recommendationsregarding the following provisions of the oil and gasseverance taxes:• the rate structure;• the following tax exemptions:

< the value of all oil and gas produced from astripper well,

< the value of oil and gas produced during the first12 months of operation from a wildcat well, and

< the value of oil and gas produced during the firstsix months of operation from a development well;

• the tax credit for recompletions and workoversapproved by the Division of Oil, Gas, and Mining; and

• the 50 percent reduction in tax rate imposed on theincremental production from an enhanced recoveryproject.

As part of its review, the TRC retained the services of aneconomic consultant whose report estimated the effectsof the above provisions on the number of oil and naturalgas wells drilled in Utah. The TRC also received testimonyfrom the oil and gas exploration and production industry,the Division of Oil, Gas, and Mining, and the UtahGeological Survey. ActionThe TRC considered this issue at its May, September,November, and December 2008 meetings, but did notrecommend draft legislation.

TAXATION OF PASS-THROUGH ENTITIES

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BackgroundA pass-through entity is an entity which, with someexceptions, is generally not subject to income tax at theentity level. Rather, the income, gain, loss, deduction, orcredit of the pass-through entity is passed through toowners. An owner's share of these amounts is thenincluded in determining the owner's income tax liability.Pass-through entities include general partnerships, limitedpartnerships, limited liability partnerships, limited liabilitycompanies, and S corporations. The TRC appointed aworking group that drafted legislation to address theincome tax treatment of owners that receive a share of theincome, gain, loss, deduction, or credit of a pass-throughentity.

ActionThe TRC considered this issue at its November 2008meeting and recommended draft legislation, "IncomeTaxation of Pass-through Entities and Pass-through EntityTaxpayers."

OTHER STUDIES

Severance Tax Trust FundIn the 2008 General Election, the electorate approvedConstitutional Amendment B. This constitutionalamendment allows the Legislature to place additionalsources of revenue into the Permanent State Trust Fund.

Under implementing legislation enacted during the 2007and 2008 General Sessions, beginning July 1, 2009,revenue from severance taxes on oil, gas, and mineralsabove a certain threshold amount will be deposited into thePermanent State Trust Fund. Trust fund earnings are thendeposited into a restricted account and appropriated by theLegislature for infrastructure and economic diversificationprojects, with some earnings earmarked for projects in theenergy producing areas of the state.

The TRC considered whether to accelerate the diversionof severance tax revenue from the General Fund to thePermanent State Trust Fund until all severance taxrevenue is deposited into the Permanent State Trust Fund.The TRC considered the extent to which revenue from a

depleting resource should be consumed by current versusfuture generations.

The TRC considered this issue at its November andDecember meetings and recommended draft legislation"Severance Tax Amendments."

Utah Corporate Income and Franchise Taxes -Deduction for Foreign Operating CompanyA foreign operating company is a company that isincorporated in the United States but has at least 80percent of its payroll and property offshore. Utah lawallows a corporation, when determining Utah taxableincome, to deduct 50 percent of the income from a foreignoperating company. The Utah State Tax Commissionasked the TRC to review this deduction because ofconcerns that it is subject to abuse. The TRC reviewed thedeliberations and recommendations of the Corporate TaxTask Force when it studied this issue in 1992 as part of arecodification of state statutes governing the statecorporate and franchise income taxes.

The TRC considered this issue at its October 2008meeting, but did not recommend draft legislation.

Utah Corporate Income and Franchise Taxes -Definition of Business IncomeState statutes governing the state corporate income andfranchise taxes define "business income." This definition isimportant because business income and non-businessincome are subject to different apportionment rules and taxtreatment. Recent litigation in Utah and nationally hassought to clarify the definition of business income when abusiness is liquidated. Other litigation has focused onwhether court ordered awards in civil litigation constitutebusiness income. The Utah State Tax Commission askedthe TRC to consider amendments to more clearly definewhat constitutes business.

The TRC considered this issue at its October andNovember 2008 meetings, but did not recommend draftlegislation.

WORKFORCE SERVICES AND COMMUNITY AND ECONOMIC DEVELOPMENT

INTERIM COMMITTEE

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WORKFORCE SERVICES AND COMMUNITYAND ECONOMIC DEVELOPMENT INTERIMCOMMITTEE

MembershipSen. Mark B. Madden, Senate ChairRep. Steven R. Mascaro, House ChairSen. Allen M. ChristensenSen. Dan R. EastmanSen. Fred J. FifeSen. Patricia W. JonesRep. James A. DunniganRep. Janice M. FisherRep. Christopher N. HerrodRep. Karen W. MorganRep. Gordon E. Snow

StaffArthur L. Hunsaker, Policy AnalystJames L. Wilson, Associate General CounselGlenda S. Whitney, Legislative Secretary

OVERVIEW

The Legislature created the Department of WorkforceServices in 1997 in order to make welfare and job trainingprograms in Utah more efficient. The following programswere consolidated into this new department: QualityControl and the Office of Family Support from theDepartment of Human Services; the Department ofEmployment Security, Job Training and the Office of ChildCare from the Department of Community and EconomicDevelopment; and the Turning Point Program from theState Office of Education.

During the 2001 Interim, the Committee's area ofresponsibility was expanded by the LegislativeManagement Committee to include the Department ofCommunity and Economic Development. In 2005, theLegislature approve legislation transferring theDepartment's economic development and tourismcomponents from the Department to a newly createdGovernor's Office of Economic Development. TheDepartment of Community and Economic Development

was then renamed the Department of Community andCulture.

ART INVENTORY

BackgroundRepresentatives of the Department of Community andCulture discussed the need to catalogue works of artowned by the state. Certain pieces of the state's artcollection are unaccounted for, in part due to the lack of asystematic tracking approach. The Departmentrecommended that the Division of Arts and Museums beauthorized to provide educational outreach and technicaltraining to entities in possession of state-owned art toassist in creating a required art inventory and compliancewith certification requirements.

An art inventory bill was introduced in the 2008 GeneralSession and passed in the Senate, but it did not pass inthe House.

ActionThe Committee considered this issue at its May 2008meeting and recommended draft legislation, "Departmentof Community and Culture - State-owned Art Inventory."

IDENTITY THEFT

BackgroundIn April 2008, a Department of Workforce Servicesemployee was arrested and charged with identity theft inrelation to records that the employee had access to at theDepartment. Members of the Committee were concernedwith the safety measures in place within the Department toprotect personal identifying information. The Committeerequested that the Department report on the incident andwhat was being done to prevent it from recurring.

Representatives of the Department of Workforce Servicesexplained how the theft took place and proposed increasedsafety measures. Although the Department acknowledgedthat there was no way to completely remove the possibilityof a recurrence, it claimed that its new security measuresgreatly minimized the risk.

WORKFORCE SERVICES AND COMMUNITY AND ECONOMIC DEVELOPMENT INTERIM

COMMITTEE

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ActionThe Committee considered this issue at its April, June, andAugust 2008 meetings, but did not recommend draftlegislation.

MOTION PICTURE INCENTIVES

BackgroundDespite the success of the modestly-budgeted "HighSchool Musical" film franchise, over the past several yearsthe state of Utah's ability to attract motion pictureproductions has greatly decreased. Motion picture industryexecutives attribute this to the fact that the currentincentives the state offers to production companiesconsidering filming in the state have not kept pace withthose being offered by other states and Canada.

The Committee heard testimony from representatives ofthe film industry and the Governor's Office of EconomicDevelopment urging the Committee to support increasedincentives for motion picture companies that agree to filmin Utah.

The Committee expressed a willingness to continue itssupport providing increased cash rebate incentives forsmall budget motion picture productions and to endorserefundable tax credits for larger budget productions.

ActionThe Committee considered this issue at its May, August,September, and October 2008 meetings andrecommended draft legislation, "Financial Incentives forMotion Picture Productions."

OTHER STUDIES

Interest Earned by the Refugee Services FundIn the 2008 General Session, The Refugee Services Fundwas created to aid those granted refugee status by thefederal government who have relocated to Utah. The Fundis a restricted account and is funded through grants orprivate donations. Potential donors have urged that interestearned by the Fund stay in the Fund and not be transferredto the General Fund.

The Committee considered this issue at its October andNovember 2008 meetings and recommended draftlegislation, "Refugee Services Fund Amendments."