Chamber News

2026 Legislative Session: Week 1 Update

January 23, 2026
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The 2026 Utah Legislative Session is officially underway, marking 45 days of debate, decision-making and policy discussions that will shape Utah’s future. This year’s session begins with a tighter fiscal environment, even as the state continues to face major challenges and opportunities — from housing affordability and infrastructure investment to workforce development, energy reliability and tax reform.

Legislative leadership has outlined priorities that will require careful balancing between immediate budget decisions and long-term investments in Utah’s economy and quality of life. With a full agenda and strong interest from stakeholders across the state, the coming weeks will move quickly and carry lasting impact for communities statewide.

The Utah Chamber team will be actively engaged throughout the session, advocating for policies that strengthen Utah’s business environment and support long-term prosperity. If you would like to meet with us or share emerging policy concerns, please don’t hesitate to reach out at policy@utchamber.com. You can also follow legislation and committee activity at le.utah.gov.

Together, we can help ensure this session delivers thoughtful, solutions-oriented outcomes for Utah.


Utah Legislature’s 2026 Legislative Priorities

Utah House Republicans:

  • Cost of Living: Keeping Utah affordable by lowering costs for Utah families and ensuring taxpayers see real value for every dollar spent.
  • Strong Families: Reducing costs and barriers to raising a family so Utah families can thrive.
  • Limited Government: Safeguarding Utah’s strong economy with balanced budgets, wise investments and a commitment to living within our means.
  • Infrastructure: Building Utah’s future through infrastructure that lasts.
  • Accountability & Transparency: Restoring confidence in government through transparency, accountability and a commitment to serving the people.
  • Public Safety: Maintaining Utah’s high quality of life by keeping our communities among the safest in the nation.
  • Education: Preparing the rising generation to lead with knowledge, integrity and innovation.
  • Water: Protecting one of Utah’s most vital resources for generations to come.

More detailed information on House Majority Priorities here

Utah House Democrats:

  • Economy & Affordability: Advancing policies that ensure housing, health care, education and everyday necessities are attainable for all Utahns.
  • Environmental Protection: Focusing on equitable policy making that addresses Utah’s most pressing environmental concerns.
  • Education: Advocating for responsible, sustained investment that ensures every student can succeed while fostering a welcoming and inclusive learning environment.
  • Good Governance: Strengthening transparency, accountability and the appropriate constitutional balance of Utah’s three branches of government.
  • Inclusion & Representation: Building a state where every resident feels safe, respected and valued.
  • Community Safety: Advancing community safety solutions that prioritize dignity, prevention and trust.

More detailed information on House Minority Priorities here

Utah Senate Republicans:

  • Affordable Living & Taxes: Supporting families, workers and small businesses.
  • Affordable Housing: Expanding opportunities for homeownership.
  • Water for the Future: Ensuring long-term sustainability.
  • Powering the Next Revolution: Advancing energy, technology and innovation.
  • Upholding the Constitution: We don’t reinterpret. We uphold.
  • Protecting Freedom and Data in a Connected World: Safeguarding personal privacy and online safety.
  • Utah Solutions, Global Impact: Invented here, exported everywhere.
  • Election Integrity: Securing the foundation of democracy.
  • Learning with Purpose and Principles: Preparing students for success.

More detailed information on Senate Majority Priorities here

Utah Senate Democrats: 

  • Learning From the Past: Defending democracy, protecting constitutional rights, holding state systems accountable and honoring Utah’s full history.
  • Facing Today’s Realities: Focusing on affordability, education, health care, public safety, child care, housing stability and immediate child safety.
  • Safeguarding Utah’s Future: Protecting the Great Salt Lake, planning responsibly for growth, using public resources wisely and preserving public lands for future generations.

More detailed information on Senate Minorities Priorities here.


Noteworthy Bills to Watch

H.B. 16Solar Power Plant Amendments, sponsored by Rep. Colin Jack

  • Creates new statewide requirements for utility-scale solar projects (over 1 MW), including site eligibility rules for receiving state incentives, new permitting and development plan requirements and mandatory financial assurances for project decommissioning. 
  • The bill also reduces or eliminates state incentives for projects located on certain categories of farmland, cropland and higher-productivity grazing land, which could meaningfully influence where developers choose to site projects. While the bill could increase project certainty and strengthen local review structures, it may also raise development costs and limit access to incentives, particularly in rural and agricultural areas.  

H.B. 29Unfair and Deceptive Pricing Amendments, sponsored by Rep. Tyler Clancy

  • Prohibits “hidden fees” by requiring sellers to clearly and conspicuously disclose the total price of a product in an offer or advertisement, including mandatory ancillary charges. If a final price is shown, it must be more prominent than other pricing information. 
  • The bill also prohibits misrepresenting or inflating fees, including government and shipping charges. It grants to the Division of Consumer Protection enforcement authority, including the ability to impose fines of up to $2,500 per violation and seek court relief.  

H.B. 161Property Tax Modifications, sponsored by Rep. Jill Koford

  • Increases Utah’s primary residential property tax exemption from 45% to 60%, reducing the taxable value of a primary residence for property tax purposes. 
  • If adopted without corresponding rate adjustments, this change would likely shift a greater share of the property tax burden onto businesses through commercial and industrial property taxes, as well as non-primary residences, including second homes. 
  • If H.B. 161 receives a two-thirds vote in both the House and Senate, it would be placed on the November 2026 ballot as a proposed constitutional amendment for Utah voters to consider. (See also: H.J.R. 7Proposal to Amend Constitution – Property Tax Modifications, sponsored by Rep. Jill Koford).

H.B. 184Local Land Use Revisions, sponsored by Rep. Raymond Ward

  • Creates a new “preferred land use regulation” request process allowing a property owner to ask a city or county to apply certain housing-friendly standards – even if they conflict with local zoning – to a specific residential parcel. 
  • If the request meets the bill’s requirements and the city or county does not deny it within 30 days, the preferred land use becomes a vested permitted use for that property. 
  • The preferred regulations include provisions allowing starter homes, smaller minimum lots and one accessory dwelling unit (ADU) with limited setback restrictions. The bill could unlock additional entry-level housing options near jobs, helping increase attainable housing supply and reducing commuting pressures for workers.

H.B. 203Non-Compete Amendments, sponsored by Rep. Tyler Clancy

  • Significantly tightens Utah’s non-compete rules by expanding the circumstances under which the non-compete agreements are unenforceable and by adding new employer compliance requirements. 
  • The bill prohibits enforcement of non-compete agreements against:
    • Nonexempt employees
    • Interns and students
    • Minors
    • Employees earning under $155,000 annually
    • Independent contractors
  • It also limits enforcement when a restriction exceeds 25 miles, requires advance notice and mandates the agreements include a “garden leave” clause requiring payment of 100% of compensation during the restricted period. 
  • The bill strengthens enforcement tools used by the Labor Commission. Traditionally, bans on non-compete amendments have made it more difficult for employers to protect investments in talent, training and sensitive business information.

H.B. 286Artificial Intelligence Transparency Amendments, sponsored by Rep. Doug Fiefia

  • Establishes Utah’s AI Transparency Act, creating new public safety transparency requirements and whistleblower protections aimed at the most powerful “frontier” AI models and widely used AI chatbots. 
  • The bill would require large AI developers to publish public safety and child protection plans, conduct and publish summaries of risk assessments and report certain safety incidents to Utah’s Office of Artificial Intelligence Policy. 
  • It also prohibits materially false or misleading statements related to covered risks and establishes civil penalties of up to $1 million for a first violation and $3 million for subsequent violations. This bill primarily increases compliance expectations for major AI developers operating at scale, while also creating clearer governance standards and potential liability exposure in Utah for high-risk AI operations.

S.B. 60Income Tax Rate Amendments, sponsored by Sen. Daniel McCay

  • Reduces Utah’s corporate franchise and income tax rate and individual income tax rate from 4.5% to 4.45%. It amends the corporate tax rate in both key corporate income tax sections and updates the individual income tax rate statute accordingly. 
  • The bill takes effect May 6, 2026, and applies retroactively to taxable years beginning on or after Jan. 1, 2026. Enactment of this legislation is estimated to reduce Income Tax Fund revenue by $1.3 million in FY 2026, $1.23 million in FY 2027 and $1.01 million in FY 2028, resulting from the lower income tax rate.

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