As we wrap up Week 4 of the Utah Legislative Session, the pace at the Capitol remains steady as lawmakers move beyond the midpoint of the 45-day session. This week marked an important milestone, with appropriations subcommittees concluding their work and bringing greater clarity to budget priorities and the fiscal constraints shaping policy decisions.
We want to thank our Chamber members for their engagement and partnership as we shared concerns with legislative leadership and the sponsor of H.B. 203, Non-Compete Amendments. We appreciate the sponsor’s willingness to engage in thoughtful dialogue and consider stakeholder feedback. As a result of these conversations, H.B. 203 has been returned to the Rules Committee for the remainder of the session and will see no further action this session.
Because this issue continues to resurface year after year, the Chamber has indicated its willingness to remain an active and constructive stakeholder during the interim as policymakers explore balanced, long-term approaches that protect workers while preserving Utah’s competitive business environment.
The Chamber will continue to participate in these discussions as they move forward and as broader policy options related to workforce mobility, innovation and employer investment are evaluated. We invite Chamber members with interest or expertise in this issue to engage with us during the interim and help inform these ongoing conversations.
For the remainder of the session, attention is increasingly focused on how funding decisions will affect workforce development, infrastructure, housing and essential services, while committees and floor debates continue advancing a record number of bills impacting Utah’s business climate.
Noteworthy Bills to Watch
FY 2027 Budget
- The Executive Appropriations Committee will now begin receiving budget recommendations from the appropriations subcommittees as revenue forecasting is finalized.
- Updated projections from the Governor’s Office, the Legislative Fiscal Analyst’s Office and the Tax Commission are expected next week and will provide the most current revenue estimates, helping establish overall spending limits and shape final budget decisions for the remainder of the session.
S.B. 211, Tort Amendments, sponsored by Sen. Kirk Cullimore
- STATUS: This bill is on the Senate Second Reading Calendar.
OVERVIEW:
- After receiving significant feedback from member businesses and local chambers across the state, the Chamber shared a letter with Senators in advance of the full Senate vote outlining its concerns and policy recommendations.
- The Chamber is concerned that “Tort Amendments” would change how medical damages are calculated and presented in civil tort cases, potentially increasing liability exposure and insurance costs for Utah employers, particularly small and mid-sized businesses.
- The letter also noted that S.B. 211 would move Utah out of step with recent national tort reform trends and reverse the Utah Supreme Court’s October 2025 decision in Gardner v. Norman, which affirmed transparency around actual economic damages.
- Utah Chamber Policy Recommendations: Utah’s business community strongly encourages the Senate to consider the following alternatives:
H.B. 507, State Coordination of Regional and Local Economic Development Projects Amendments, sponsored by Rep. Calvin Roberts
- STATUS: This bill is in the House Rules Committee.
OVERVIEW:
- This bill impacts Utah’s economic development tools by reshaping how tax increment and regional development incentives are coordinated, governed and reported statewide. It also emphasizes greater state oversight, transparency and long-term fiscal accountability for large development projects.
- The bill:
- Creates a State Reinvestment Restricted Account to receive a share of revenues from certain economic development projects for statewide reinvestment.
- Establishes regionally significant development zones that allow approved projects to capture tax increment under a new state-coordinated framework.
- Updates public infrastructure district rules, including governance, dissolution and required disclosure of projected tax impacts.
- Expands transparency by requiring statewide tracking and public reporting of the Governor’s Office of Economic Opportunity (GOEO)’s tax increment use.
- Limits new economic development zones after 2028, signaling a shift toward fewer, more centralized incentive tools.
- There is a growing view within the Legislature that Utah’s economic development incentive structure needs recalibration. This perspective underscores the importance of approaching any changes thoughtfully, as adjustments to incentive policies could affect Utah’s ability to compete for major investments, influence local decision-making and shape the long-term returns these tools have historically supported.
S.B. 287, Targeted Advertising Tax, sponsored by Sen. Michael McKell
- STATUS: This bill is in the Senate Revenue and Taxation Committee and not yet scheduled for a committee hearing.
OVERVIEW:
- This bill creates a new statewide tax on targeted digital advertising delivered in Utah by large advertising platforms and establishes a dedicated revenue stream to fund specified youth and community programs.
- The bill:
- Imposes an annual tax on targeted advertising for entities that meet defined in-state and global revenue thresholds, based on gross receipts tied to Utah impressions.
- Requires annual reporting and remittance to the State Tax Commission, which is granted rulemaking and enforcement authority to administer the tax.
- Creates a restricted account to direct tax revenue toward child literacy initiatives, youth programs, mental health services for children and public spaces.
- The bill is modeled in part after a similar law passed in Maryland, which is currently facing ongoing constitutional litigation. While lawmakers have cited concerns about the impact of social media on children, critics warn the proposal could raise legal, economic and competitiveness issues for businesses, particularly given unresolved questions about constitutionality and implementation.