We just completed our interim committee meetings and special session at the Capitol today. Here are some highlights from the day's events:
Revenue and Taxation Interim Committee
We heard testimony today regarding internal governance of the Tax Commission and also a problem surrounding property tax exemptions related to agricultural land. You can listen to our meeting HERE.
Government Operations Interim Committee
Our committee passed out two bills and some additional discussion. One deals with minor changes to SB54 language and how petitions to get candidates on the ballot are handled moving forward. The other bill dealt with parameters related to redistricting. The bill modifies the guiding principles so to place more emphasis on community cohesion rather than on exact equality in the population size of districts. We had State Auditor John "Frugal" Dougall come and make some recommendations to the legislature regarding areas of improvement that were needed in various ways the State conducts its business. You can listen to our discussion HERE. Special Session Bills Tax Credit Review Amendments - This was a redraft of HB310 which passed the house with flying colors during the General Session. Unfortunately, an egregious typo left the bill without an "Enacting Clause" and after the Governor signed it, staff realized it couldn't become law. So, the bill was brought back to the Special Session to be voted on with its Enacting Clause intact. The bill sailed through the House and Senate without a problem.
State Fair Park Amendments - There is a panicked effort to maintain the State Fair Park's viability in the community. This bill made temporary emergency changes to procurement practices to facility a fast renovation of the site to be ready by next summer. This bill passed.
Unmanned Aircraft Amendments - This bill increases penalties for individuals caught using drones in emergency areas like wildfires. It also allows violators to be liable for damages caused by their drone intrusion. This bill passed.
Criminal Justince Reinvestment Amendments - This bill tweaked the much needed yet sometimes much derided JRI legislation we passed two years ago. It permitted law enforcement to include more common sense provisions in sentencing and probationary situations. This bill passed.
Grandparent Rights Amendments - The original bill passed during the General Session (I voted against) and was ultimately vetoed by the Governor. The bill sponsor made some adjustments to the bill and limited grand parent visitation rights to situations where adoptive parents were related to the grand parents. This bill still seemed onerous to me since the only reason adoptive parents would not permit related grand parents to visit a child was if there was a serious strain within the family. It seemed to me that permitting the courts to force visitation rights in such a situation would make for very painful experiences for those involved. I voted against. The bill failed 27-40.
Controlled Substance Database Modifications - This bill made a common sense change regarding access of law enforcement to databases related to controlled substances. The bill passed unanimously.
Economic Development Revisions - This bill created sales tax exemptions for companies moving into Utah who would occupy large 150,000+ SQFT facilities and be using them for constructing data centers. The logic behind this bill is that data centers are very expensive and add significantly to the property tax base while requiring little in the way of community resources. Thus, such centers would help fund local education wherever they are built. The bill also reflects a philosophical drift away from taxing inputs in the manufacturing process and only taxing final products. This bill passed.
Judicial Nominating Commissions - This bill matched the number of judges nominated with the number of vacancies in the court. This bill passed.
Continuing Care Retirement Community Amendments - This bill deals with a very strange business model of retirement homes being funded by future occupants of the facility. Private equity donations would be collect to fund the construction of a facility that the "investors" had contributed to build. The issues surrounding the bill dealt with how the "investor/occupants" funds would be treated in the event they left the facility and what kinds of guarantees and securities can be offered. The bill creates some basic ground rules for the business model. The bill passed.
My Bill Files
I have many bill files open already and I am drafting bills on a variety of topics including property taxes, foster care, tax credits, teacher compensation, public notices, and more. Look for more details as discussions with stakeholders continue.
KSL recently reported on fireworks at a Kaysville City Council meeting. The drama surrounds a freshman city councilman's use of a city credit card to fix his personal firetruck for use in the city parade.
This situation is where of a rookie mistake has collided with a city that does not have proper controls in place over its finances. I am sure our State Auditor John "Frugal" Dougall would be interested in this story.
What makes things even more interesting is the theatrics of the city council meeting which were conveniently caught on video. Councilman Adams (the guy in yellow) gets into a personal tirade against another councilman, breaches decorum, and otherwise makes the meeting ungovernable.
You can watch the city council meeting meltdown here (fast forward to 4h 28m):
In this instance, I think the councilman needs to reimburse the city for the expense. The city also needs to change its credit card policy to avoid this problem in the future. In the meantime, its going to be very difficult for Councilman Adams to walk back this performance. I expect more fireworks in the future.
I recently participated in a stakeholder meeting hosted by the Governor's Office of Energy Development. The purpose of the meeting was to discuss Utah's policy of issuing $2,000 tax credits to consumers for rooftop solar systems and its impact on the industry and state budget.
The meeting was spurred by legislation I ran in the 2016 General Session to unwind the solar tax credits under the premise that the industry has matured to the point that tax payer subsidies are no longer required. At that time, the industry disagreed with me.
At the root of the issue is the purpose of the tax credits. Are they to help move forward in time the market adoption of this new technology? Are they there to act as a form or corporate welfare to lift a struggling industry? Is it a feelgood policy that exists because renewable energy is the "in" thing right now? Defining the purpose of the credit is important to how me move forward.
At our meeting, we discussed some serious challenges being faced by the State regarding the credit. To put some sunshine on the subject (pun!), lets take a look at this graph:
The solar tax credit right now is mushrooming in usage. The left hand axis shows the number of credits claimed by consumers for installing rooftop solar systems on their homes. As you can see, there is a hyperbolic increase since 2012. Interestingly, last year saw 3,174 credits issued. In 2016, at its current pace, it is projected that 12,500 credits will be issued! That is a 400% increase in one year.
So why is this a problem? There are several reasons. First, every credit is a silent drain on the education budget. The total credits issued have ballooned from less than $1 million 2012 to $6.3 million last year. This year will cost the education budget $25 million in unrealized revenues. With solar panels becoming ubiquitous, the credit threatens to put a major damper on funding Utah's education needs.
The second problem is administrative in nature. Utah does not budget any money to administer this tax credit. The funds used to pay for state employees to administer this credit come from Federal grants. Historically, only one employee has been needed on a part time basis to handle the workload. However, that has increased in recent years and with the surge in popularity, a staff of 6 to 8 full time people (paid $75,000 salary and benefits per year) will be required to continue administering the credits. This poses a funding problem to the Legislature and raises red flags about the program.
The third issue facing the credit is the philosophical one. What is its purpose? In our stakeholder meeting, a lot of time was spent by stakeholders trying to solve the administrative funding problem. As if to say that if the administrative funding issue could be resolved, the flow of credit money could continue unabated. But, the sheer magnitude of the credits are now threatening our education programs. So, something has to change.
At the conclusion of our meeting, we asked the stakeholders to come up with ideas to discuss in our next meeting in July. Some ideas included a full repeal of the credit, a taper or wind down over time, shifting the credit to another budding technology (like batteries), or whatever idea they could come up with. I look forward to the discussion. It is hoped that the solutions we come up with will be forwarded to our Revenue and Taxation Interim Committee to draft a committee bill for the 2017 General Session.
One of the exciting and often tedious parts of being a candidate for office is the request to fill out dozen's of candidate questionnaires. I find this often to be a great opportunity to quantify my views and demonstrate my political philosophy.
So, here are two surveys I received and my responses. One is from the NRA and the other is from the Sierra Club:
The Standard Examiner came out recently with a rather prickly editorial piece blasting my colleague, Representative Justin Fawson (R-North Ogden), for 'bullying' Caitlin Gochnour by asking her to withdraw from the race for Weber County Commissioner. The tone of the editorial was toxic and I believe warranted a response.
The Standard-Examiner’s April 24 editorial, "By refusing to be bullied, Gochnour gives Weber County voters a choice," cites so-called 'bullying' of Gochnour, a candidate for Weber County Commission. Such a claim is both misinformed and wrongheaded.
The piece references Rep. Justin Fawson's Facebook statement that he wishes Gochnour would exit the race out of respect for the traditional GOP candidate-winnowing process. The editorial turns this statement from a molehill into a mountain. It then claims that Fawson is attempting to conjure political powers that were once his but now no longer exist. This simply isn't the case.
Ironically, the editorial finds itself guilty of using the same power that Fawson is maligned for attempting to use — the power of suggestion.
The election cycle this year is experimenting with new processes and a lot of passionate debate is being had about what it now means to be a political party. With the highly informative caucus-convention process, which builds relationships between voters and candidates, being turned on its ear, the Utah GOP finds itself in the midst of an identity crises. Voters who participate in this process are exasperated by the prospect of the caucus-convention system being discarded into the dustbin of history.
Fawson's suggestion and Gochnour's candidacy make sense in light of his boiling backdrop. Indeed, if Gochnour has suffered anything, it is an inadvertent case of bad timing. Years of non-partisan Ogden City Council service have necessarily left her outside of the long-fomenting SB54 rancor until just last month. She has entered the race according to the known rules as they have been established (as flawed as they may currently be). But, in doing so, she has unwittingly bumbled into a GOP food fight.
Ultimately, the mess will be cleaned up, differences negotiated, and the party will be unified again and move forward with clarity. But in the meantime, expect a contentious campaign season. It is best we put on our ponchos — the ketchup and mustard are flying.
After this year's experience at the Weber County Republican Convention, I had some time to reflect on what happened and what it means for the future of politics in Northern Utah and the State at large.
Three Republican candidates submitted their names to run for the County Commission seat up for grabs this election cycle. Brad Dee, Caitlin Gouchner, and Jim Harvey threw their hats into the ring. In a typical year, the three names would be winnowed down to one by delegates elected to attend the County Republican Convention. That process looks something like this:
However, this year is the first year that elections are being held under the new rules implemented by the infamous SB54 (which I voted for) passed in 2014. The bill was a panicked response by the Legislature to a ballot initiative sponsored by former Gov. Leavitt and ilk (known as County My Vote or CMV) that threatened to abolish the caucus-convention process entirely an favor of an expensive-to-access Primary Election process. The Legislature recognized the grassroots value of the Caucus-Convention system and, in an effort to preserve it, compromised with Mr. Leavitt. The compromise also entailed permitting candidates to get on a party's primary election ballot via signature gathering in lieu of passing through the Caucus-Convention system. Strangely, the law permits candidates to pursue both options if they choose to.
The problems with the new law quickly became apparent at yesterday's convention. As is the case with may races around the state this year, the three candidates for Weber County Commissioner also pursued the signature route and collected enough signatures to place them on the primary ballot for the party. Such a tactic acted as an insurance policy for each candidate against being eliminated at the Convention.
At this point you might be saying, what is the point of a Convention then? If so, you aren't alone. Many of the delegates expressed this exact frustration as they realized that the vote they cast didn't make a difference in who would appear in a Primary. Indeed, if the Convention had had its way, there woudn't be any primary election at all this year and Jim Harvey would go straight to the General Election. The other candidates would have gone home to eat a bowl of chocolate ice cream and watch reruns of Seinfeld. But, that isn't the case this year.
Now, each candidate is bloodied, bruised, and poised to launch a new round of campaigning to the general population. Each candidate's strengths and weaknesses were exposed at the Convention. I anticipate they will be exploited vividly.
The traditional convention-caucus system is the best means of placing the electorate close to their elected officials. It is a sloppy process, just like any democratic system, but it provides the best means of tying the people to their political leaders. It must be preserved. The Count My Vote dream of a primary-election-only process threatens to turn Utah politics over to an affluent and insulated aristocracy. With the signature gathering process already showing its ability to seriously undermine the potency of Convention decision making, the Party Convention results are swiftly falling to the lowly status of glorified straw poll. May Utahns be vigilant and the Legislature valiant in its efforts to preserve our Caucus-Convention system.
The session has come to its ultimate conclusion. He is a post-mortem of things that happened during the final two weeks. THE VOTES
As always, the volume and magnitude of bills we heard increased tremendously at toward the end of the Session. Some bills were released late in cycle and had significant policy implications. This put tremendous pressure on the House and required that we be nimble. Quick judgement was necessary in many cases. HJR 18 - Congressional Term Limits
This bill called for a constitutional convention of states to amend the constitution in order to limit terms in office of our U.S. Congressmen and Senators. This resolution passed with Speaker Hughes breaking the tie. I supported this bill.
SB115 - Sustainable Transportation and Energy Plan Act
This bill came to us originally with provisions affecting consumers who had installed solar panels on their homes and their net metering agreements with Rocky Mountain Power (RMP). That caused an uproar and the solar net metering provisions were removed from the bill. To understand the purpose ofthis bill, we have to understand that RMP is a state regulated utility monopoly. They were granted monopoly status almost a century ago to help foster the proliferation of cheap electricity to consumers. However, in exchange for that monopoly, investors in RMP are guaranteed effectively a 10% return on their investment, no more and no less. The cost of providing electricity plus this 10% margin are charged to consumers. In exchange for this guarantee, RMP prices are regulated by government.
However, recently, laws have been passed requiring RMP to produce 30% of its electricity via renewable sources. These sources are unpredictable in their output and when capacity is low due to cloud cover or unwindy days, RMP must purchase electricity elsewhere in the open energy market which is more expensive. But, due to pre-existing laws, RMP has not been allowed to pass through this purchased electrical costs to consumers. The difference was eating into the 10% guarantee promised to RMP shareholders.
This issue touches on the technological revolution that is unfolding in our energy markets. Solar costs are declining and moving toward mass adoption by consumers. Battery technology is also advancing quickly which makes renewable sources of electricity much more viable for the mass market. As this occurs, the old business model of the monopoly utility company is under assault. These technologies continue to mature and be adopted, and the laws governing our power network will need to adjust. Yet, we are not yet to the point of needing to throw away the old utility company in lieu of mass decentralized consumer electricity independence. RMP still provides, and will continue to provide, a crucial service to Utah electricity consumers. For the time being, we need to honor our agreement to the investors that provided the capital to make this inexpensive source of power possible. I voted yes on this bill which will expire in three years.
SB246 - Funding for Infrastructure Revisions
This bill came to the House the last week of the Session which made for some difficult decision making. The bill would effectively use $53 million of taxpayer dollars to fund construction of a port in California to export Utah commodities. The biggest commodity would likely be Utah coal but others would be included. This bill was highly controversial. Environmentalists swarmed the Capitol to resist the bill citing their distaste for coal in general.
Many factors weighed on this vote. Risk of litigation in California, free-market arguments, legal technicalities, and others were a concern. Yet, the upside meant a conduit for rural Utah to export its commodities. This project would be an economic lifeline to areas of the State that have been hammered by unfair Federal regulations.
In the end, I voted for this bill. The deciding factor for me was that Utah would have rights of use and ownership in the port once it is constructed. In a worst case scenario, the rights and real estate could be liquidated and Utah's investment recouped. In a best case scenario, Utah's commodities will be made available to larger world markets. Since commodities fund a significant portion of our school budget, this seems like a potential win-win for both our education system and rural Utah communities.
HB251 - Post Employment Restrictions Amendments
This bill was the 'non-compete' initiative that aimed to eliminate non-competition restrictions by employers on their employees. I supported this bill as a free-market inspired policy and voted for it on the House Floor. However, the Senate got a hold of it and turned it into a wet and soggy piece of toast. The end product was not much different than current law. Look for this issue to come back next year.
SB234 - Protecting Unborn Children Amendments
Our Law Enforcement Committee heard this bill which was accompanied by passionate and horrifying testimony. The bill would require doctors providing abortions to inform the mothers of the potential of their baby to experience pain during the abortion procedure. Abortion advocates showed up in force to deride the Legislature for asserting itself on this issue. They also didn't waste time trashing Senator Curt Bramble for bring this bill forward.
An attention starved Kate Kelly, the former LDS activist now turned indignant anti-LDS curmudgeon, stood conspicuously in the back of the room waiting to pounce on the microphone and speak in behalf of Planned Parenthood. She blasted Senator Bramble for being disrespectful to women and abusing the legislative process by having his bill sent to our committee instead of Health and Human Services. We informed her that the good Senator had no influence on that process in the House and that the bill was sent to our committee due to the other committee's packed schedule.
We heard other testimony callously discussing the destruction of their offspring that was sobering and terrifying. The desire of people to have the unmitigated right to extinguish the gift of life which they have been graciously endowed to bestow upon others is impossible for me to countenance. I was saddened by the meeting and voted for the bill. It feels as if our society is becoming like the beasts of the wild which devour their young.
SB189 - Death Penalty Amendments
This bill also came to our Law Enforcement Committee. Its premise was to eliminate Utah's death penalty. I voted against this bill.
However, we did hear from Randy Gardner, the brother of a convicted murderer who was executed. After our committee, he showed up in the House Gallery on the final night and yelled at us while displaying autopsy photos of his brother after his execution. He was swiftly escorted out of the gallery by security.
SJR2 - Resolution Calling for the Repeal of the 17th Amendment
Part of the imbalance between State authority and Federal overreach stems from the fact that our U.S. Senators are not accountable to State Legislatures like they were prior to the 17th amendment. I voted for this resolution. HB333 - Electronic Cigarette Products, Nicotine Inhalers, and Related Revenue Amendments
Rep. Paul Ray brought a ton of kids to our committee encouraging us to treat vaping products the same as cigarettes and other tobacco products in regards to tax policy. I voted for the bill but the majority of the committee did not agree with my sympathies and the bill failed. MY BILLS
HB327 - Energy Tax Credit Amendments - Heard in Revenue and Taxation Committee and returned to Rules for interim study. This bill would have phased out tax credits for solar panels. Here is the committee hearing where I presented the issue:
This bill would have restricted cities and counties from regulating the sport of falconry. The bill was ready to soar but its wings were clipped by the committee.
HB441 - Child Reunification Amendments - Passed House and failed to pass Senate prior to the end of the Session. This bill would require parents of children in state custody to undergo a felony arrest warrant check prior to having their case for reunification heard by the court. Here is the committee presentation which explains the origins of the bill and its merits.
This bill experienced some drama in the final days of the Session. It originally did not have a Fiscal Note, meaning that it would not cost any money to implement. After the committee made some alterations to the bill, a Fiscal Note was attached to the bill to the tune of $71,000. Unfortunately, Representatives were instructed to prioritize their list of bills they wanted to fund with our limited resources. HB441 did not appear on the list because it originally did not have a Fiscal Note. It didn't help that the Fiscal Note was released several hours after the deadline to turn in priorities. Fortunately, the Attorney General's office helped me find a way to reduce the note to $6,200 and I was able to convince our House Leadership to write an amendment in at the last minute to fund this small amount. The bill passed the House Floor unanimously and went to the Senate where it died on the board at midnight. I will bring this bill forward again next year.
MEMORABLE MOMENTS
Polygamy Rally
This was a very unusual rally. With same sex marriage legalized, the genie is out of the bottle. I expect polygamy to be legalized by the courts within the next five years or so.
The Halls of Government
Here is a view from the basement looking up the stairwell to the 4th floor of the buildling.
The Capitol complex is rife with subterranean corridors. It is easy to get lost while trying to find the parking garage.
Sunsets
The view from the Majority Caucus room was jaw dropping one evening.
FINAL THOUGHTS
Over all this has been a great Session. I was able to move some substantive, albeit wonky, policy forward while laying the groundwork for some great policy discussions in the future. It has been an honor to serve the people of District 9 this year. As of the writing of this blog update, I have filed to run for office again this election cycle. I hope to have your support. County records indicate I will be running against my once vanquished and now perennial opponent Neil Hansen. Let's make it a great campaign.
If you have any legislative issues or concerns or want to donate to our campaign, please CONTACT ME.
