As we wrap up the second week of the 2026 Utah Legislative Session, the pace at the Capitol continues to accelerate. Committees are advancing key proposals and early policy themes are taking shape. Lawmakers have already moved forward with a plan to cut the state’s income tax rate for the sixth consecutive year, even as debate grows over how to manage Utah’s tighter revenue outlook under recent federal tax changes.
Housing affordability, judicial reform and potential structural changes to the courts are also shaping early session activity, with proposals moving through the process that could affect everything from local land-use decisions to the composition of the state’s judiciary. At the same time, discussions continue around property tax burdens and how responsibility is shared between homeowners and businesses — a theme that is likely to remain front and center as the session progresses.
For Utah’s business community, the session is also bringing forward proposals that touch workforce availability, infrastructure funding, energy reliability and the broader cost of doing business. From bills that could influence how and where housing and employment centers grow, to discussions around transportation investment, regulatory processes and business tax policy, the scope of issues with direct employer impact continues to expand.
The Utah Chamber is actively tracking these developments, meeting with legislators and working with chambers across the state to ensure the business perspective is part of the conversation as these proposals evolve.
Noteworthy Bills to Watch
S.B. 211, Tort Amendments, sponsored by Sen. Kirk Cullimore
- This bill would:
- Limit what juries can hear about insurance and paid medical bills. In most tort lawsuits, juries would no longer see evidence that a plaintiff’s medical bills were paid, discounted or written off by insurance or public programs. Damages would be considered without reference to those collateral payments.
- Prevent settlement decisions based on discounted medical costs. Defendants, including insurers, could not reduce settlement offers based on the lower amounts actually paid for medical care. This may lead to higher claim valuations in negotiations and at trial.
- Increase potential liability exposure and insurance costs. By limiting the use of collateral source evidence and restricting settlement leverage, the bill could increase damage awards and claim payouts. Insurers may respond by adjusting underwriting or raising premiums, which could ultimately increase insurance costs for Utah businesses.
- STATUS: This bill is scheduled for a hearing today in the Senate Judiciary, Law Enforcement and Criminal Justice Committee at 2:00 p.m. (Room 210, East Senate Building).
H.B. 203, Non-Compete Amendments, sponsored by Rep. Tyler Clancy
- This bill 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 the 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 that the agreements include a “garden leave” clause requiring payment of 100% of compensation during the restricted period.
- Traditionally, broad restrictions on non-compete amendments have made it more difficult for employers to protect investments in talent, training and sensitive business information.
- STATUS: Rep. Clancy recently met with the Chamber’s Capitol Club to hear feedback and concerns on this bill. The Chamber encouraged members to submit specific recommendations and examples to Rep. Clancy (tclancy@le.utah.gov), as he has indicated he is working on a substitute bill informed by feedback from the Chamber and business stakeholders. The bill is scheduled for hearing today (Friday) at 2:00 p.m. in the House Business, Labor and Commerce Committee (Room 445, State Capitol).
H.B. 236, Truth in Taxation Amendments, sponsored by Rep. Karen Peterson
- This bill adds new early transparency requirements when a city, county or other taxing entity is considering a property tax increase, including a required public statement before the formal truth-in-taxation hearing process begins.
- It also requires entities proposing a tax increase to first adopt a tentative operating budget that does not rely on the additional tax revenue, along with a separate alternative budget showing how the extra funds would be used.
- The changes are intended to improve transparency and communication in the property tax process, allowing for more informed discussion and deliberation before tax increases are adopted.
- STATUS: This bill passed out of the House Revenue and Taxation Committee with a favorable recommendation (10-0-1) and will advance to the full House.
H.B. 161, Property Tax Modifications/H.J.R. 7, Proposal to Amend Utah Constitution – Property Tax Modifications, sponsored by Rep. Jill Koford
- This bill 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 onto 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.
- STATUS: This bill is currently in the House Rules Committee.
S.B. 195, Workforce Development, sponsored by Sen. Ann Millner
- This bill strengthens Utah’s workforce pipeline by creating a statewide Youth Apprenticeship Governance Council to better align K–12 education, higher education, workforce agencies and industry around youth apprenticeship programs.
- It also allows Utah to participate in the new federal Workforce Pell Grant program, enabling short-term, job-focused training programs at colleges and technical institutions to qualify for federal Pell funding.
- Together, these changes aim to expand hands-on career pathways, improve coordination with employer needs and make workforce training more accessible and better connected to high-demand jobs.
- STATUS: This bill passed out of the Senate Economic Development and Workforce Services Committee with a favorable recommendation (5-0-1) and is on the Senate 2nd Reading Calendar.