Welcome to the 2026 Legislative Session. This weekly brief is a UTIA-member benefit. If there is interest in receiving this tracker please refer to becoming a member by clicking here. |
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| | | Bills Passed / Enrolled for 2026 - UTIA Tracker |
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H.B. 12 Outdoor Recreation Accessibility Amendments, Rep. Doug Welton |
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H.B. 77 Tax Modifications, Rep. Steve Eliason |
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H.B. 250 S1 Utah Retirement Plan Exchange, Rep. Joseph Elison |
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H.B. 272 Tourism Taxes Amendments, Rep. Bridger Bolinder |
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S.B. 4 Economic and Community Development Base Budget, Sen. Calvin Musselman |
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S.B. 39 Investment Zone Amendments, Sen. Wayne Harper |
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S.B. 43 Land Trusts Protection and Advocacy Office Amendments, Sen. Derrin Owens |
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S.B. 108 S1 Online Marketplace Amendments, Sen. Lincoln Fillmore |
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❌ H.B. 231 S1, Restaurant Tax Repeal Amendments, Rep. Norman Thurston The 1st Substitute of HB 231 Restaurant Tax Repeal Amendments, was released by Rep. Thurston in the House Rules Committee on Friday, February 20.
The 1st substitute fully repeals the restaurant tax. However, counties with outstanding bond or debt obligations may continue collecting the tax until those bonds/debts are satisfied. Once those obligations are met, the tax would be eliminated. Unlike the original bill, the 1st substitute does not include an alternative funding source (such as the general sales tax we saw in the original bill) to replace the revenue generated by the restaurant tax.
The bill has not yet received a fiscal note or been assigned to a committee.
WHY THIS MATTERS:
The tourism industry opposes HB 231 S1 Restaurant Tax Repeal Amendments. The restaurant tax, which generated over $89 million in 2024, is part of a broader suite of tourism-related taxes authorized under the Tourism, Recreation, Cultural, Convention, and Airports Facilities (TRCCA) Tax Act. These revenues provide a dedicated funding source to county governments for tourism promotion and to develop, operate, and maintain critical community infrastructure. Including airports, convention centers, cultural venues, recreation assets, and other tourist facilities. These assets are shared by visitors and residents alike and contribute to local quality of life and economic vitality.
📣 TAKE ACTION: Tourism industry stakeholders, and all entities that benefit from the Restaurant Tax funding, need to continue to contact their legislators to respectfully share their opposition for the 1st substitute of HB 231.
Industry Talking Points: Identify the community assets, infrastructure, and/or programs in your community that are funded through the TRCCA and include them in your message. Express your opposition for the complete repeal of the restaurant tax without a supplemental funding mechanism. Ask for their support in maintaining the restaurant tax as it currently exists in statute by opposing the bill.
Resources for reaching out to your legislator:
Share this latest update on the restaurant tax repeal with those in your community who are impacted by the restaurant tax funding revenues and encourage them to contact their legislators to amplify the industry’s voice. |
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| | H.B. 59 S1 Identification Verification Amendments, Rep. Steve Eliason HB 59 S1 is a clean up bill for the 100% ID Check Law enacted under last year’s HB 437, amended on the last day of the 2025 Legislative Session.
This bill: Reverts back to prior law of an age verification for an individual who appears to be 35 years or younger before purchasing an alcoholic beverage at a restaurant (same as prior to January 1, 2026). Requires verification of proof of age for all individuals before gaining admittance to a bar or tavern (same as prior to January 1,2026) Allows an authorized person at a restaurant to temporarily confiscate an ID, if it is believed to be fake Maintains the interdicted drivers license process
WHY THIS MATTERS:
After being held in the House Rules Committee for nearly a month, SB 59 S1 was heard in the House Business, Labor, and Commerce Committee on Friday, February 20th, where it passed unanimously. The bill is set to apply retroactively to January 1, 2026, providing relief for situations that have occurred since the 100% ID check law was implemented. Rep. Eliason has been working with Rep. Burton, the House alcohol policy lead, to coordinate provisions between SB 59 and the omnibus alcohol bill.
The industry is still awaiting public release of the alcohol omnibus bill. Our lobbyist has reviewed an early draft of the approximately 100-page omnibus legislation. However, the draft cannot be circulated, as it remains a protected working document and the drafting attorney is continuing to finalize key details. Reference UTIA’s Alcohol Policy Priorities for 2026 here. |
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H.B. 250 S1 Utah Retirement Plan Exchange, Rep. Joseph Elison This bill would establish the Utah Retirement Plan Exchange, a state-facilitated marketplace where private retirement providers can offer plans to employers in a single simplified platform.
WHY THIS MATTERS: The American Retirement Association reported in committee that an estimated 700,000 employees in Utah do not have access to a retirement plan through their employer. However, employees who do have access to an employer-sponsored plan are 17 times more likely to participate.
This bill is aimed at small businesses that may not be able to afford the cost of establishing a commercial 401(k) plan for their employees, resulting in lower retirement participation rates. The proposed system does not require employers to opt in or to contribute to an employee’s retirement account. Instead, it is designed to expand access to retirement savings opportunities and help address potential long-term funding gaps in Social Security.
This bill has PASSED both the House and the Senate and been sent for enrolling.
H.B. 294 S1 - Employer Verification Amendments, Rep. Tiara Auxier This bill amends provisions related to the Private Employer Verification Act, impacting a private employer who employs 100 or more employees.
WHY THIS MATTERS: The first substitute of the bill increases the employee threshold from the originally proposed 50 employees to 100 employees. Various industry responses to the updated threshold are mixed. Some industry associations and chambers believe 100 employees is a reasonable compromise, while others remain opposed to any change from the current 150-employee threshold.
Unlike last year, HB 294 passed out of committee with a favorable recommendation and is scheduled to be heard on the House floor this week.
S.B. 280 Damages Amendments, Sen. Ron Winterton S.B. 280 seeks to standardize how medical damages are calculated and proven in civil injury and wrongful-death cases. It ties recoverable damages to the actual or necessarily owed costs rather than billed charges and improves transparency through mandatory disclosure requirements.
WHY THIS MATTERS:
The industry opposes S.B. 211 Tort Amendments, sponsored by Sen. Kirk Cullimore, as it would move Utah in the opposite direction of tort reform efforts recently enacted in other states. The bill could increase liability exposure and insurance costs for Utah employers, particularly small and mid-sized businesses.
Conversely, the industry supports S.B. 280 Damages Amendments, for its nationally modeled approach, which provides a responsible alternative for addressing medical damages without undermining transparency. |
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H.B. 507 S1 State Coordination of Regional and Local Economic Development Projects Amendments, Rep. Calvin Roberts This bill reshapes Utah’s economic development tools by modifying how tax increment financing and regional development incentives are coordinated, governed, and reported statewide. It places greater emphasis on state oversight, transparency, and long-term fiscal accountability for large development projects - i.e. Capital City Convention Center Reinvestment Zone (CCRZ), Housing and Transit Reinvestment Zones (HTRZ), Major Sporting Event Venues (Olympics), etc.
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.
This bill reflects a growing sentiment within the Legislature that Utah’s economic development incentive structure should shift from individualized, one-off programs toward a more centralized approach. Although Military Installation Development Authority (MIDA) projects are not directly addressed in the bill, legislative committee discussions emphasized the importance of including them in the broader reevaluation process.
Rural Film Incentive Program - Executive Appropriations Committee Senator Jerry Stevenson’s Rural Film Incentive Requests for Appropriation (RFA) was prioritized by the Economic and Community Development Subappropriations Committee for $2 million in ongoing funding, significantly below the $12 million requested. Continued advocacy with the Executive Appropriations Committee members will be necessary to restore the program to its prior $12 million level and maintain its effectiveness in rural communities.
Resources for reaching out to your legislator:
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