LEGISLATIVE INTERIM MEETINGSMeetings were held June 23, 2010 or as noted.

Business and LaborCatastrophic Coverage for Mental Health

Action: Approved as a committee bill, "CatastrophicMental Health Coverage-Sunset Act," which removesthe requirements for catastrophic mental healthcoverage from the Sunset Act and makes conformingamendments in the Insurance Code.

Classification of WorkersReceived public comment regarding workerclassification. Firms may elect to operate undervarious business plans with regards to the status ofworkers as employees, owners, or independentcontractors. Received comments from industryrepresentatives and concerned individuals.

Construction Trades Licensing IssuesDiscussed a variety of construction trade licensingissues, including licensing of mechanical technicians,continuing education requirements, and licensing ofstructural masonry contractors. Also receivedcomments from the Division of Occupational andProfessional Licensing regarding licensing issues inthe construction trades.Action: Recommended that legislators continue towork with interested parties regarding constructiontrade licensing issues.

Health Insurance Mandate ReviewReceived a committee staff presentation regarding theCommittee's responsibility to conduct reviews ofhealth insurance mandates. Also received apresentation from the Insurance Departmentregarding health insurance mandates currently instate law.Action: Recommended that the Committee not conducta health insurance mandate review during the 2010interim.

Chairs: Rep. James A. Dunnigan / Sen. John L. ValentineStaff: Bryant R. Howe (Assistant Director) / Patricia Owen (Attorney) / Amanda K. Majers (Secretary)

EducationAthletic Eligibility for Transfer Students

Received public comment on proposed legislation,"Eligibility for Interscholastic Competition in SecondarySchools," which provides that a student who transfersbetween schools may not be barred from participating

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IN THIS ISSUE:

Page 6 Legislative Management CommitteePages 1-5 Summaries of Legislative Meetings

in interscholastic activities because of the transfer.

Instruction in American History, Government, andCivics

Received recommendations from a history teacher onthe importance of studying original source documentsand relating history to today's issues.

Post-secondary Education and Career PlanningViewed a demonstration by representatives of theUtah State Office of Education and State Board ofRegents of a new website tool, www.utahfutures.org,designed for education and career planning. Thewebsite is being used by public school students and iscurrently receiving approximately 1,000,000 hitsmonthly.

State Instructional Materials CommissionReceived a sunset report from the Utah State Office ofEducation on the State Instructional MaterialsCommission. The Committee chair noted theCommittee will take action on the reauthorization ofthe Commission after the State Board of Educationmakes a recommendation.Action: Recommended that the State InstructionalMaterials Commission be removed from the SunsetAct.

Chairs: Rep. Gregory H. Hughes / Sen. Howard A. StephensonStaff: Allison M. Nicholson (Policy Analyst) / Constance C. Steffen (Policy Analyst) / Angela Oakes

Stallings (Attorney) / Glenda S. Whitney (Secretary)

EthicsCode of Conduct

Received a presentation from Utahns for EthicalGovernment making suggestions to improve theLegislature's Code of Official Conduct.

Received a report from committee staff that comparedthe Legislature's Code of Official Conduct with that ofother states.

Chairs: Rep. John Dougall / Sen. Stephen H. UrquhartVice Chairs: Rep. Rebecca Chavez-Houck / Sen. Patricia W. Jones

Staff: John Q. Cannon (Managing Policy Analyst) / Michael E. Christensen (Director) / John L. Fellows(General Counsel) / Eric N. Weeks (Deputy General Counsel) / Phalin L. Flowers (Administrative

Assistant)

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UTAH LEGISLATURE June 2010 Vol. 10 No. 2

INTERIM HIGHLIGHTSOffice of Legislative Research and General Counsel

House Building, Suite W210 * Salt Lake City, Utah 84114 * (801) 538-1032

Government Operations and PoliticalSubdivisions

Joint State/Salt Lake City Emergency OperationsCenter

Received a report from the Division of FacilitiesConstruction and Management, the Department ofPublic Safety, and Salt Lake City on their preliminarydiscussions for the programming, design, andexpenses of a joint emergency operations center. Theintent language passed during the 2010 GeneralSession in H.B. 3, "Appropriations Adjustments,"required a report of their recommendations andanalysis regarding the cost effectiveness and potentialoperational efficiencies of this type of facility.

Procedures for the Withdrawal of Ballot PropositionReceived a committee staff briefing on the issue ofwhether procedures should be provided in statute forthe withdrawal of a ballot proposition. The UtahConstitution specifies that state statute sets therequirements of holding ballot propositions. Title 20A,Chapter 7, "Issues Submitted to Voters," providessome requirements for ballot propositions, but is silentas to whether a ballot proposition which qualifies forthe ballot may be withdrawn.

Public Hearing and Notice Requirements forMunicipal Enterprise Fund Transfers

Received presentations from the Utah State Auditor,the Utah League of Cities and Towns, and the UtahAssociation of Counties on the requirements formunicipalities and counties to provide notice and apublic hearing if an entity proposes an allocation ortransfer of money from a utility enterprise fund toanother fund.

The Committee also discussed whether a localgovernment should be subject to penalties for notcomplying with notice and hearing requirements.

State Building Board Construction ProjectsReceived a briefing from the Division of FacilitiesConstruction and Management on the Building BoardFive-Year Building Program, construction statusreports, and funding needs.

Status of a Law Being Challenged While a LocalReferendum is Pending

Received a briefing and comments regarding adiscrepancy between statute and the UtahConstitution. The Utah Constitution Article VI allowslegal voters, under conditions provided by statute, to"require any law or ordinance passed by the lawmaking body of the county, city, or town to besubmitted to voters ... before the law or ordinancemay take effect." Utah Code Subsection 20A-7-601(3)(b), however, states "The local law remains ineffect until repealed by the voters via a referendum."Action: Recommended that a letter be sent to the Utah

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Constitutional Revision Commission requesting thatthe Commission study this issue.

Chairs: Rep. Craig A. Frank / Rep. Fred R Hunsaker / Sen. Peter C. KnudsonStaff: Benjamin N. Christensen (Policy Analyst) / Joseph T. Wade (Policy Analyst) / Victoria Ashby

(Attorney) / Emily R. Brown (Attorney) / Wendy Bangerter (Secretary)

Health and Human ServicesControlled Substances Advisory Committee

Requested that the Controlled Substance AdvisoryCommittee study whether tramadol, "spice" or"pepspice," and salvia divinorum, in that order, shouldbe scheduled as controlled substances. Alsorequested that the advisory committee report to theCommittee in November on its progress.

Divison of Services for People with Disabilities(DSPD) Budget Changes

Received a report from DSPD on how it hasresponded to recent changes to its budget and how itplans to meet budget targets for fiscal year 2011.

Sports-related ConcussionsReceived information about sports-relatedconcussions from the Department of Health and amedical doctor as background to legislation to bedrafted and considered later this year.

Tamper-resistant Prescription FormsReceived information from a representative of atamper-resistant prescription documents manufacturerstating that prescription fraud in Utah's Medicaidprogram could be reduced by $14 million if the staterequired the use of uniform, secure, and validatedprescription drug forms. The estimate is based on theprescription savings achieved by the State of NewYork.

Chairs: Rep. Paul Ray / Sen. D. Chris ButtarsStaff: Mark D. Andrews (Policy Analyst) / Thomas R. Vaughn (Attorney) / Cathy J. Dupont (Attorney) / Joy

L. Miller (Administrative Assistant)

Health System Reform Task ForceAll Payer Database

Received a briefing by the Department of Health'sOffice of Healthcare Statistics on the implementationof Utah's All Payer Database (APD). The officepresented reports developed from the database andsaid that early work for integrating APD data with theUtah Health Exchange should be completed later thisyear.

Federal Reform UpdateReceived a report from the Insurance Department onprovisions of the federal Patient Protection andAffordable Care Act that affect Utah insurers andbecome effective September 23, 2010. Thedepartment reported that regulation of those areas bythe department will shift to the federal governmentunless the Legislature amends the state's Insurance

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Page 2 Interim Highlights • June 2010

Code to reflect the federal provisions.

Risk Adjuster BoardReceived a briefing from the Utah DefinedContribution Risk Adjuster Board on the board's workto develop rules for the operation of the Utah HealthExchange that reflect statutory changes enactedduring the 2010 session of the Legislature.

Task Force WorkgroupsReviewed the objectives, tasks, and potentialmembership of two task force workgroups, theImplementation Oversight Workgroup and the CostContainment Workgroup.

Tax Consequences of Federal ReformReceived a report from a Salt Lake City accountant onthe tax implications to employers, insurers, andindividuals of the federal Patient Protection andAffordable Care Act.

Chairs: Speaker David Clark / Sen. Wayne L. NiederhauserStaff: Mark D. Andrews (Policy Analyst) / Cathy J. Dupont (Attorney) / Wendy Bangerter (Secretary)

Judiciary, Law Enforcement, and CriminalJustice

Courts Services and FunctionsReceived from the State Court Administrator a reporton the effects of recent years' budget cuts on courtservices and functions. While the growing civilcaseload has been increasing, the courts reported acumulative budget reduction from FY 2009 through FY2011 of $8,532,700 or 7.9%. This represents areduction of 91 positions or 9% of the nonjudicialworkforce. It was also reported that the courts havemade significant progress in establishing electronicrecords, and receiving electronic payments and casefilings.

Dispute Resolution ProgramsReceived from the Administrative Office of the Courtsa statutorily required report on the alternative disputeresolution programs available in the various districtcourts. The programs available in some districts formediation include: appeals; divorce; probate; smallclaims; landlord-tenant; truancy; and child welfare.Mediators are qualified by the courts and are hired bythe parties involved or are furnished by the court,depending on the type of case.

Firearm Safety Education in Public SchoolsReceived a presentation by a senator and a citizenregarding the implementation of Section 53A-13-106of the Utah Code and the need for firearm safetyeducation in the state's public schools.

Funding E-911 Emergency Service

Action: Voted to recommend a ten year extension onthe July 1, 2011 sunset of Utah Code Section 69-2-5.6, "Emergency services telecommunications charge

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to fund statewide unified E-911 emergency service."

Guardianship AmendmentsReviewed draft legislation, "GuardianshipAmendments," which creates a method within thecourts for the appointment of a guardian orconservator for a minor or an incapacitated adult. Thebill also eliminates a school board's ability todesignate guardians for students within its district andeliminates expedited guardianship proceedings forresidents of the Utah State Developmental Center.

Inmate Health InsuranceDiscussed issues relating to the use of an inmate'sprivate health and dental insurance for incurredmedical costs while the insured is in the custody of theDepartment of Corrections or a county jail.Action: Approved as a committee bill, "Inmate HealthInsurance Amendments," which provides that if aninsured is otherwise eligible for health or dentalbenefits under a policy, an insurer must coordinatebenefits and may not exclude coverage for an insuredwho is an inmate housed in a correctional facility, acounty jail, or an offender in the custody of theDepartment of Corrections.

Mandatory Education for Divorcing ParentsReceived from the Administrative Office of the Courtsa required annual report on the mandatoryeducational course for divorcing parents, which is aprerequisite to receiving a divorce decree and isdesigned to educate and sensitize divorcing parentsto the needs of their children both during and after thedivorce process.

Statutorily Required ReportsReviewed information from committee members andreporting agencies on whether the reportingrequirements for certain programs should be modifiedor deleted.

Chairs: Sen. Jon J. Greiner / Rep. Douglas C. Aagard / Rep. Lorie D. FowlkeStaff: Jerry D. Howe (Policy Analyst) / Stewart E. Smith (Policy Analyst/Spe Proj Mgr) / Susan Creager

Allred (Attorney) / Esther Chelsea-McCarty (Attorney) / Amanda K. Majers (Secretary)

Natural Resources, Agriculture, andEnvironment

Increasing the Number of Veterinarians in UtahReceived a report from Utah State University andWashington State University on a proposedcollaboration between the two universities to provideveterinary education to Utah residents. The proposalis intended to provide more opportunity to Utahstudents interested in veterinary education in an effortto increase the number of veterinarians in the state.Action: Voted to support the proposed collaborationbetween Utah State University and the University ofUtah to provide a regionally distributed veterinaryeducation program.

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Interim Highlights • June 2010 Page 3

Natural Gas Drilling on the West Tavaputs PlateauReceived a report from an energy company on thestatus of proposed natural gas drilling on the WestTavaputs Plateau.

Use of "Liberally Construed" in Utah StateAdministrative Rules

Action: Voted to recommend to the AdministrativeRules Review Committee that current language in theadministrative rules assigned for review be retained.

Water Source Protection Ordinance ComplianceReceived a report from the Division of Drinking Wateron first and second class counties that have compliedwith a statutory requirement that they adopt a watersource protection ordinance.

Chairs: Rep. Roger E. Barrus / Sen. Dennis E. StowellStaff: J Brian Allred (Policy Analyst) / Christopher R. Parker (Attorney) / Joy L. Miller (Administrative

Assistant)

Public Utilities and TechnologyNatural Carbon Sequestration

Received a presentation and a report from theWestern Counties Alliance and the RangelandRestoration Academy about natural carbonsequestration using grasses, arbuscular mycorhizalfungi, and pulse grazing to improve rangeland qualityand the sequestration of carbon. Research projectionsfor Australia indicate a .05 percent increase in soilcarbon would sequester all of Australia's annual CO2emissions.

Net Metering and Renewable EnergyReceived presentations and reports from Utah CleanEnergy, Interstate Renewable Energy Council, DixieEscalante Power, and the Utah Public ServiceCommission about net metering, renewable energy,cost/benefit subsidies, and the regulatory process.Committee discussion focused on the costs of netmetered renewable energy as compared to base-loadelectric energy generation, the impact of subsidies,and regulatory issues of taxes and surcharges.

Chairs: Rep. Michael E. Noel / Sen. Stephen H. UrquhartStaff: Richard C. North (Policy Analyst) / Christopher R. Parker (Attorney) / Tracey Fredman (Secretary)

Revenue and TaxationEconomic Conditions and Revenue Collections

Received a presentation from committee staff onrecent economic trends, including population,employment, and housing, as well as an overview ofUtah's state and local revenue system, including theindividual income tax, sales and use tax, property tax,and fuel taxes.

Received a report from the Tax Commission showingrevenue collections through the first 11 months offiscal year 2009-10. The report showed that revenues

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are coming in below the February forecast.

Sales and Use Tax ExemptionsReceived a presentation from committee staff on theimpact of a sales and use tax exemption for certainmining equipment on certain local governments.Creation of the exemption has significantly reducedsales and use tax revenues for some localgovernments that generated a high proportion of theirsales and use tax base from the sale of miningequipment.

School Funding and Property TaxesReceived a report from committee staff on lawsuits inother states related to educational equality andadequacy. The report showed differing lawsuitoutcomes among the states.

Discussed two proposals to further equalize schoolfunding. One proposal relates to further equalizingproperty taxes for school operations. The otherproposal relates to equalization of property taxes forschool capital outlay.

Chairs: Rep. Todd E. Kiser / Sen. J. Stuart AdamsStaff: Bryant R. Howe (Assistant Director) / Phillip V. Dean (Policy Analyst) / Robert H. Rees (Attorney) /

Rebecca L. Rockwell (Attorney) / Chelsea Barrett (Secretary)

Senate Judicial Confirmation CommitteeJune 09, 2010

Judicial ConfirmationRecommended that the Senate confirm theappointment of Robert J. Dale to the Second DistrictCourt. (The Senate confirmed the appointment of Mr.Dale on June 23, 2010 in an extraordinary sessionheld for that purpose.)

June 15, 2010

Judicial ConfirmationRecommended that the Senate confirm theappointment of Thomas R. Lee to the Utah SupremeCourt. (The Senate confirmed the appointment of Mr.Lee on June 23, 2010 in an extraordinary session heldfor that purpose.)

June 16, 2010

Judicial ConfirmationThe Committee met on June 14 and 16, and on June16 recommended that the Senate confirm theappointment of M. James Brady to the Fourth JudicialDistrict. (The Senate confirmed the appointment of Mr.Brady on June 23, 2010 in an extraordinary sessionheld for that purpose.)

Chairs: Sen. Scott K. JenkinsStaff: Jerry D. Howe (Policy Analyst) / Esther Chelsea-McCarty (Attorney) / John L. Fellows (General

Counsel) / Amanda K. Majers (Secretary)

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Page 4 Interim Highlights • June 2010

TransportationDriver License Update

Received a report from the Driver License Divisionstating that:• the division has implemented several strategies totry to keep lines short at driver license offices, such asallowing appointments, providing office wait timesonline, and opening on Fridays; and• if there are significant changes to rules andregulations governing the federal REAL ID program,the division would need legislative approval to comply.

New Transportation Capacity ProjectsReceived a committee staff briefing on traffic on I-15in Utah, Salt Lake, and Davis County.

Received a statutorily required report from the UtahDepartment of Transportation regarding thereconstruction of I-15 in Utah County, as well as otherhighway projects.

Railroad and Railroad Crossing AmendmentsReceived information from Union Pacific that somepublic safety concerns could be addressed byamending laws related to traffic at railroad crossingsand trespassing on private property where there is arailroad facility.

State Highway System ChangesReceived a statutorily required report from theDepartment of Transportation regarding proposedadditions to or deletions from the state highwaysystem regarding the following state routes: 8, 48, 73,89 (Ogden), 107, 197, and 212.

Utah Gas PricesReceived presentations from committee staff, AAAUtah, Utah Petroleum Association, Utah RetailMerchants Association, and Utah PetroleumMarketers & Retailers Association on the petroleumindustry, related taxes, Utah gas prices, and why gasprices in Utah tend to be higher than the nationalaverage. Reasons given for higher than average gasprices in Utah included market forces, location, fewsupplier options, and sparse population.

Chairs: Rep. Julie Fisher / Sen. Kevin T. Van TassellStaff: Leif G. Elder (Policy Analyst) / Shannon C. Halverson (Attorney) / Tracey Fredman (Secretary)

Utah Tax Review CommissionJune 15, 2010

State and Local Sales and Use Tax

Action: Approved creation of a working group to studythe proposal to create a uniform statewide sales anduse tax rate.

Chairs: Mr. M. Keith Prescott / Mr. David J. CrapoStaff: Leif G. Elder (Policy Analyst) / Phillip V. Dean (Policy Analyst) / Bryant R. Howe (Assistant Director)

/ Robert H. Rees (Attorney) / Rebecca L. Rockwell (Attorney) / Chelsea Barrett (Secretary)

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Utah Waterways Task ForceJune 24, 2010

Division of Wildlife Resources Stream AccessProgram

Received a report from the Division of WildlifeResources on its stream access programs. Thedivision explained the tools and resources it can makeavailable to the task force in its study.

Walk-in Access and Stream Access DevelopmentVisited sites on the Weber River and the Provo Riverto see walk-in access and stream accessdevelopment examples.

Chairs: Rep. Melvin R. Brown / Sen. Dennis E. StowellStaff: J Brian Allred (Policy Analyst) / Christopher R. Parker (Attorney) / Joy L. Miller (Administrative

Assistant)

Workforce Services and Community andEconomic Development

Solvency of the Unemployment Insurance Trust FundReceived an update from the Department ofWorkforce Services regarding the current balance inthe Unemployment Insurance Trust Fund (UITF),including a comparison of revenues received versusrevenue projections of when the fund will be insolvent,given current trends.

Discussed potential funding solutions for the UITF.

Tax Credits for Motion Picture ProductionsReceived a report on how tax credits have increasedmotion picture production in the state and the financialbenefits of extending tax credits for five or ten years toattract a television series.

Use of the Phrase "Liberally Construed" in WorkforceServices Administrative Rule

Discussed the use of the phrase "liberally construed"in an administrative rule of the Department ofWorkforce Services, as requested by the Legislature'sAdministrative Rules Review Committee.

Discussed whether the use of the phrase "liberallyconstrued" in the rule suggests that the department isimplementing or interpreting statute beyond theoriginal intent of the Legislature.

West Coast Marketing InitiativeReceived a report from the Governor's Office ofEconomic Development regarding its marketing andeconomic development recruitment efforts targetingthe west coast markets.

Chairs: Rep. Steven R. Mascaro / Sen. Mark B. MadsenStaff: Art L. Hunsaker (Policy Analyst) / James L. Wilson (Attorney) / Glenda S. Whitney (Secretary)

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Interim Highlights • June 2010 Page 5

Legislative Management CommitteeJune 22, 2010

Letters from Committees

Approved the committee study requests from thefollowing interim committees:

•Business and Labor•Education•Government Operations and Political Subdivisions•Health and Human Services•Judiciary, Law Enforcement, and Criminal Justice•Natural Resources, Agriculture, and Environment•Public Utilities and Technology•Revenue and Taxation•Transportation•Workforce Services and Community and Economic Development

Approved appropriation subcommittees to hold up totwo meetings this interim after they have submitted aletter providing their agenda and meeting date to thePresident of the Senate and the Speaker of the Houseand received their approval.

Authorized the request for a site visit to Delta, Utah bythe Natural Resources Appropriations Subcommitteeupon the approval of the agenda by the President ofthe Senate and the Speaker of the House.

Chairs: Speaker David Clark / President Michael G. WaddoupsStaff: Michael E. Christensen (Director) / John L. Fellows (General Counsel) / Phalin L. Flowers

(Administrative Assistant)

OFFICE OF LEGISLATIVE RESEARCHAND GENERAL COUNSELHOUSE BUILDING, SUITE 210PO BOX 145210SALT LAKE CITY UT 84114-5210

RETURN SERVICE REQUESTED

For more information about legislative activities, visit the UtahState Legislature's website at:le.utah.gov

Editors: Susan Creager Allred & Stewart E. SmithOffice of Legislative Research and General Counsel

Next Interim Day - August 18

Page 6 Interim Highlights • June 2010