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24th Annual Parsons Behle & Latimer Employment Law Seminar




  LEGISLATIVE UPDATE:
  NEW LEGISLATION & POLITICAL
  DEVELOPMENTS AFFECTING EMPLOYERS

  J. Michael Bailey
  May 8, 2012
  Salt Lake City


                         4819-5937-3071
Goals of Today’s Presentation
 Educate you
 Alert you to issues that may affect your
  business
 Arm you for discussions at backyard
  barbecues
  •   This presentation is a source of general information for clients and friends of Parsons Behle &
      Latimer. Its content should not be construed as legal advice and attendees should not act upon
      the information in the presentation without consulting legal counsel



                                                                                                        2
Outline of Presentation
I. Utah Legislature 101
II. 2012 Session Review
III. Protecting your Business by Playing
     an Active Role

Please ask questions throughout


                                           3
Composition of Legislature

Republicans (80)   Democrats (24)




                                    4
Turnover Since Last Session
   Sen. Dan Liljenquist was replaced by Sen. Todd Weiler (Lawyer)
   Sen. Chris Buttars was replaced by Sen. Aaron Osmond (CEO,
    Investor Education)
   Sen. Dennis Stowell was replaced by Sen. Casey Anderson (Social
    Service Worker)
   Rep. David Clark was replaced by Rep. Lowry Snow (Lawyer)
   Rep. Julie Fisher was replaced by Rep. Stewart Barlow (Physician)
   Rep. Jackie Biskupski was replaced by Rep. Brian Doughty (Self-
  employed, ACME Material Handling)
 Rep. Carl Wimmer was replaced by Rep. Dan McCay (Attorney)
 Rep. Holly Richardson was replaced by Rep. Craig Frank
  (Businessman)

                                                                        5
2012 Legislative Session
 Mood was calmer than some years
  – This is an election year
 No new taxes, again!
 Some squabbling between Senate & House
  – Senate has fewer members (29, compared to 75)
    but passed almost as many bills (209, compared
    to 269)


                                                     6
It was a Very Busy Session

0             200                    400                    600        800


                      B ills th a t w e r e n u m b e r e d (8 9 1 )



             B ills th a t w e r e in tr o d u c e d (7 6 4 )



    B ills th a t p a s s e d (4 7 8 )



                                                                             7
It was a Very Busy Session
 The Governor vetoed 2 bills
  (HB363 (Sex education) and HB414)
 72% of the bills were not written & introduced
  until after the first day
 The legislators admitted in the press that they
  cannot keep track of it all (especially at the end)



                                                        8
Comparing Bill Passage Over Time
                 2011                                      2012

        782                                        764


                           504                                        478




     B ills              B ills                 B ills              B ills
     In tr o d u c e d   P a s s e d (6 2 % )   In tr o d u c e d   P a s s e d (6 4 % )

                                                                                           9
2012 Bill Passage By The Numbers

 R e p u b lic a n -
  s p o n s o re d
    b ills th a t
     passed                D e m o c ra t -
       (4 1 4 )            s p o n s o re d
                             b ills th a t
                              passed
                                 (6 4 )




                                              10
2012 Bill Passage By The Numbers


      78%


                           56%               56%                 55%




    S e n a te          S e n a te         H ouse              H ouse
    R e p u b lic a n s D e m o c r a ts   R e p u b lic a n s D e m o c r a ts

                                                                                  11
2012 Bill Passage By The Numbers

 Most Prolific Legislators
  – Republican
     Senator Curt Bramble (20 out of 26 for 76.9%)
  – Democrat
     Senator Ben McAdams (9 out of 15 for 60%)




                                                     12
It All Starts With A Budget
 Budget was $13 billion
 Had $440 million more to spend
  –   Funded growth in education
  –   State employees - 1% raise
  –   $11 million into rainy day fund
  –   Did not borrow for roads



                                        13
Session’s Broad Themes That
              Affect Employers

   Employment
   E-Verify
   Local Government
   Environmental Boards
   States’ Rights
   Health Insurance Mandates
   The Sexy Stuff (always at the end)

                                         14
Employment Initiatives That Passed

 Public Employee Status Modifications
  (HB449 – Dee)
 Employer premium reduction for wellness
  programs (HB144S02 – Dunnigan)
 Unemployment insurance top rate reduced 2%
  (SB129 – Bramble)
 Social Services – Employment First Priority
  (HB296 – Snow)

                                                15
Employment Initiatives That Failed

 Immigration (HB300 – Sandstrom/Herrod)
  – Would have repealed the guest worker
    provisions enacted last year
 Job Discrimination (SB51 – McAdams)
  – Would have approved a statewide prohibition on
    job discrimination based on sexual orientation




                                                     16
Employment Initiatives That Failed

 Abusive Workplace Practices Act
  (HB196S01 – Sandstrom)
  – Would have required adoption of policies
    protecting public employees
  – Passed out of committee/died on the floor
 Collective Bargaining
 “Open Carry of Firearms Bill ” did not pass
  (HB49S03 – Ray)

                                                17
E-Verify
 Governor Herbert wanted teeth put in the law
  – Disappointed it didn’t happen
  – Bill would have:
     • Suspended business licenses for violations
     • Applied to all businesses
     • Applied to hiring of independent contractors
 Legislature will pursue it next year


                                                      18
Local Government
 Legislature has mixed feelings about local
  control but mostly let cities have the reins
   – Allowed local anti-idling ordinances
   – Did not prohibit cities from regulating electronic
     billboards
   – Did create state ethics committee to hear local
     ethics issues



                                                          19
Environmental Boards
 Adjudication (SB11 – Dayton)
  – Permit challenges will be less of a circus
  – Boards won’t hear appeals of permits
  – ALJ will hear appeals, Executive Director to make
    decision
 Membership (SB21S01 – Dayton)
  – Will make boards more technical and effective


                                                        20
States’ Rights
 Federal Lands: Sagebrush Rebellion 2.0
  – Demanding the federal government turn over lands
    to state
  – Lands would be opened up to mining, drilling
    and grazing
 Health Care Compact
  – Asking federal government to cede control of health
    care programs


                                                          21
Health Insurance Mandates
 Health Insurance Mandates
  – Important because if passed before 2014,
    become set in stone for state under federal
    health care reform
  – Many bills this session
  – Only autism pilot project passed
     • To serve 350 children at a cost of $30,000
       annually per child
     • “Back-door mandate”
                                                    22
Other Issues
 Immigration
  – Stepped back from the brink (voice vote failed)
 Ag-gag bill
 Alcohol – tinkered with commission
 Car inspections less frequent




                                                      23
Sexy Issues
 Tanning Beds
  – Not for minors
 Hookah and e-cigarettes
  – Outlaw them
 Sex Education
  – Don’t ask, don’t tell



                                24
Protecting Your Business
 Get Involved
  – Participate in the political process
  – Educate yourself / Stay informed
 If you see an issue of concern, what can you do
  about it?
  – Build a coalition
  – Contact your legislator (le.state.ut.us)
  – Contact us…We will help

                                                    25
Protecting Your Business
 Legislature has interim study committees that
  meet monthly
 Master study list gives some idea of issues
  to be studied
 What can we expect to see in 2013?




                                                  26
New Faces are Coming in 2013
 Numerous legislators ran for or are running for
  other seats
   –   Rep. Chris Herrod (US Senate)
   –   Rep. Stephen Sandstrom (US House-4th District)
   –   Rep. Ken Sumsion (Utah Governor)
   –   Rep. John Dougall (Auditor)
   –   Sen. Ross Romero (SL County Mayor)
   –   Sen. Ben McAdams (SL County Mayor) (didn’t have
       to resign or choose which race to enter)
                                                         27
New Faces are Coming in 2013
 Redistricting just occurred
   – Some legislators lost at convention
 Retirements
   –   Senate President Michael Waddoups
   –   House Minority Leader David Litvack
   –   Senate Minority Whip Karen Morgan
   –   Rep. Todd Kiser


                                             28
Study Issues That May
             Affect Employment

 E-Verify / Immigration
  – Will Legislature revisit the guest worker law?
 Injured Worker Benefits
  – Study ways to coordinate benefits paid by
    workers compensation & group health
    insurance plans
 Revisit Sen. McAdams’ anti-discrimination bill
  (2012 SB51)

                                                     29
Study Issues That May
              Affect Employment

   State Retirement System
   Study ways to incentivize wellness
   Modernization of Workforce Services
   Third-hand smoke in the workplace




                                          30
Other Likely Study Issues
   Alcohol
   Employment Discrimination
   Subcontractors
   Water
   CO2 Emissions




                                  31
More Study Topics
   Privatization of Government (Prison, DABC)
   Government Competition with Private Sector
   Agency Retention of Fines and Forfeitures
   Coal and other severance taxes
    – Impact on utility rates
 Telecommunications Taxation
 Other Issues?

                                                 32
Task Forces
 Economic Development
  – To include air quality issues
 Health System Reform




                                    33
Don’t Hesitate to Call
 We’re here to help – never be reluctant to call

  – About employment issues…
  – or immigration…
  – or even hookah and e-cigarettes




                                                    34
Thank you


 Mike Bailey
  direct: (801) 536-6777
  cell: (801) 201-0115
  email: mbailey@parsonsbehle.com
  twitter: @utahcounselor



                                    35

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Legislative Update: New Legislation and Political Developments Affecting Employers

  • 1. 24th Annual Parsons Behle & Latimer Employment Law Seminar LEGISLATIVE UPDATE: NEW LEGISLATION & POLITICAL DEVELOPMENTS AFFECTING EMPLOYERS J. Michael Bailey May 8, 2012 Salt Lake City 4819-5937-3071
  • 2. Goals of Today’s Presentation  Educate you  Alert you to issues that may affect your business  Arm you for discussions at backyard barbecues • This presentation is a source of general information for clients and friends of Parsons Behle & Latimer. Its content should not be construed as legal advice and attendees should not act upon the information in the presentation without consulting legal counsel 2
  • 3. Outline of Presentation I. Utah Legislature 101 II. 2012 Session Review III. Protecting your Business by Playing an Active Role Please ask questions throughout 3
  • 5. Turnover Since Last Session  Sen. Dan Liljenquist was replaced by Sen. Todd Weiler (Lawyer)  Sen. Chris Buttars was replaced by Sen. Aaron Osmond (CEO, Investor Education)  Sen. Dennis Stowell was replaced by Sen. Casey Anderson (Social Service Worker)  Rep. David Clark was replaced by Rep. Lowry Snow (Lawyer)  Rep. Julie Fisher was replaced by Rep. Stewart Barlow (Physician)  Rep. Jackie Biskupski was replaced by Rep. Brian Doughty (Self- employed, ACME Material Handling)  Rep. Carl Wimmer was replaced by Rep. Dan McCay (Attorney)  Rep. Holly Richardson was replaced by Rep. Craig Frank (Businessman) 5
  • 6. 2012 Legislative Session  Mood was calmer than some years – This is an election year  No new taxes, again!  Some squabbling between Senate & House – Senate has fewer members (29, compared to 75) but passed almost as many bills (209, compared to 269) 6
  • 7. It was a Very Busy Session 0 200 400 600 800 B ills th a t w e r e n u m b e r e d (8 9 1 ) B ills th a t w e r e in tr o d u c e d (7 6 4 ) B ills th a t p a s s e d (4 7 8 ) 7
  • 8. It was a Very Busy Session  The Governor vetoed 2 bills (HB363 (Sex education) and HB414)  72% of the bills were not written & introduced until after the first day  The legislators admitted in the press that they cannot keep track of it all (especially at the end) 8
  • 9. Comparing Bill Passage Over Time 2011 2012 782 764 504 478 B ills B ills B ills B ills In tr o d u c e d P a s s e d (6 2 % ) In tr o d u c e d P a s s e d (6 4 % ) 9
  • 10. 2012 Bill Passage By The Numbers R e p u b lic a n - s p o n s o re d b ills th a t passed D e m o c ra t - (4 1 4 ) s p o n s o re d b ills th a t passed (6 4 ) 10
  • 11. 2012 Bill Passage By The Numbers 78% 56% 56% 55% S e n a te S e n a te H ouse H ouse R e p u b lic a n s D e m o c r a ts R e p u b lic a n s D e m o c r a ts 11
  • 12. 2012 Bill Passage By The Numbers  Most Prolific Legislators – Republican Senator Curt Bramble (20 out of 26 for 76.9%) – Democrat Senator Ben McAdams (9 out of 15 for 60%) 12
  • 13. It All Starts With A Budget  Budget was $13 billion  Had $440 million more to spend – Funded growth in education – State employees - 1% raise – $11 million into rainy day fund – Did not borrow for roads 13
  • 14. Session’s Broad Themes That Affect Employers  Employment  E-Verify  Local Government  Environmental Boards  States’ Rights  Health Insurance Mandates  The Sexy Stuff (always at the end) 14
  • 15. Employment Initiatives That Passed  Public Employee Status Modifications (HB449 – Dee)  Employer premium reduction for wellness programs (HB144S02 – Dunnigan)  Unemployment insurance top rate reduced 2% (SB129 – Bramble)  Social Services – Employment First Priority (HB296 – Snow) 15
  • 16. Employment Initiatives That Failed  Immigration (HB300 – Sandstrom/Herrod) – Would have repealed the guest worker provisions enacted last year  Job Discrimination (SB51 – McAdams) – Would have approved a statewide prohibition on job discrimination based on sexual orientation 16
  • 17. Employment Initiatives That Failed  Abusive Workplace Practices Act (HB196S01 – Sandstrom) – Would have required adoption of policies protecting public employees – Passed out of committee/died on the floor  Collective Bargaining  “Open Carry of Firearms Bill ” did not pass (HB49S03 – Ray) 17
  • 18. E-Verify  Governor Herbert wanted teeth put in the law – Disappointed it didn’t happen – Bill would have: • Suspended business licenses for violations • Applied to all businesses • Applied to hiring of independent contractors  Legislature will pursue it next year 18
  • 19. Local Government  Legislature has mixed feelings about local control but mostly let cities have the reins – Allowed local anti-idling ordinances – Did not prohibit cities from regulating electronic billboards – Did create state ethics committee to hear local ethics issues 19
  • 20. Environmental Boards  Adjudication (SB11 – Dayton) – Permit challenges will be less of a circus – Boards won’t hear appeals of permits – ALJ will hear appeals, Executive Director to make decision  Membership (SB21S01 – Dayton) – Will make boards more technical and effective 20
  • 21. States’ Rights  Federal Lands: Sagebrush Rebellion 2.0 – Demanding the federal government turn over lands to state – Lands would be opened up to mining, drilling and grazing  Health Care Compact – Asking federal government to cede control of health care programs 21
  • 22. Health Insurance Mandates  Health Insurance Mandates – Important because if passed before 2014, become set in stone for state under federal health care reform – Many bills this session – Only autism pilot project passed • To serve 350 children at a cost of $30,000 annually per child • “Back-door mandate” 22
  • 23. Other Issues  Immigration – Stepped back from the brink (voice vote failed)  Ag-gag bill  Alcohol – tinkered with commission  Car inspections less frequent 23
  • 24. Sexy Issues  Tanning Beds – Not for minors  Hookah and e-cigarettes – Outlaw them  Sex Education – Don’t ask, don’t tell 24
  • 25. Protecting Your Business  Get Involved – Participate in the political process – Educate yourself / Stay informed  If you see an issue of concern, what can you do about it? – Build a coalition – Contact your legislator (le.state.ut.us) – Contact us…We will help 25
  • 26. Protecting Your Business  Legislature has interim study committees that meet monthly  Master study list gives some idea of issues to be studied  What can we expect to see in 2013? 26
  • 27. New Faces are Coming in 2013  Numerous legislators ran for or are running for other seats – Rep. Chris Herrod (US Senate) – Rep. Stephen Sandstrom (US House-4th District) – Rep. Ken Sumsion (Utah Governor) – Rep. John Dougall (Auditor) – Sen. Ross Romero (SL County Mayor) – Sen. Ben McAdams (SL County Mayor) (didn’t have to resign or choose which race to enter) 27
  • 28. New Faces are Coming in 2013  Redistricting just occurred – Some legislators lost at convention  Retirements – Senate President Michael Waddoups – House Minority Leader David Litvack – Senate Minority Whip Karen Morgan – Rep. Todd Kiser 28
  • 29. Study Issues That May Affect Employment  E-Verify / Immigration – Will Legislature revisit the guest worker law?  Injured Worker Benefits – Study ways to coordinate benefits paid by workers compensation & group health insurance plans  Revisit Sen. McAdams’ anti-discrimination bill (2012 SB51) 29
  • 30. Study Issues That May Affect Employment  State Retirement System  Study ways to incentivize wellness  Modernization of Workforce Services  Third-hand smoke in the workplace 30
  • 31. Other Likely Study Issues  Alcohol  Employment Discrimination  Subcontractors  Water  CO2 Emissions 31
  • 32. More Study Topics  Privatization of Government (Prison, DABC)  Government Competition with Private Sector  Agency Retention of Fines and Forfeitures  Coal and other severance taxes – Impact on utility rates  Telecommunications Taxation  Other Issues? 32
  • 33. Task Forces  Economic Development – To include air quality issues  Health System Reform 33
  • 34. Don’t Hesitate to Call  We’re here to help – never be reluctant to call – About employment issues… – or immigration… – or even hookah and e-cigarettes 34
  • 35. Thank you  Mike Bailey direct: (801) 536-6777 cell: (801) 201-0115 email: mbailey@parsonsbehle.com twitter: @utahcounselor 35