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House Business and Labor Committee adopts interim study list, adds small-business closures and software licensing reviews

3427001 · May 21, 2025
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Summary

The House Business and Labor Interim Committee adopted its 2025 interim study list and voted to add three items — a study of small-business closures, a review of software licensing practices (with emphasis on VMware), and a Uniform Commercial Code Article 8 review — and authorized chairs to open committee bill files.

The Utah House Business and Labor Interim Committee adopted its interim study list and voted to add three new study items, including a review of small-business closures and a focused look at software licensing practices with emphasis on VMware.

The committee, chaired by Representative Corey Malloy, approved the list after Ronan Randalls, a policy analyst with the Office of Legislative Research and General Counsel, summarized the list and the administrative process by which the Legislative Management Committee approved an initial package of items. “By legislative rule, the committee must adopt a final study item list today,” Randalls told the committee.

Why this matters: the additions direct staff and the committee to investigate issues lawmakers said are causing economic strain for Utah small businesses and large-license users. Representative Wynne moved to add a study item on causes and effects of small-business closures; the motion passed. Representative Ken Ivory moved to add a study on software licensing practices, expanded to examine the broader software industry with a case study focused on VMware; that motion also passed. A separate motion to study Article 8 of the Uniform Commercial Code — focused on securities intermediaries and entitlement holder rights — was added after members said other states were examining similar concerns.

Most important facts: Randalls described that the approved study list originally came from member submissions, was vetted by staff and the Legislative Management Committee, and “the committee may modify this list by adding items, removing items, changing the description.” Representative Wynne told the committee she was motivated by “rapid restaurant closure” in the Salt Lake area and wants a comprehensive study into causes and economic impacts. Representative Ivory said constituents and the state have been affected by changes in software licensing after a company shifted users from perpetual licenses to subscription pricing; committee members asked staff to examine state exposure.

Committee procedure and follow-up: After discussion the committee voted to adopt the amended list. The body also approved a motion to authorize the chairs to independently open committee bill files for study items, giving the chairs flexibility to open files for items that arise during the interim. The vote to adopt the list and the vote to allow chairs to open bill files were taken and recorded on the committee floor; members voted in favor on both motions.

Background and constraints: Randalls told members the initial list had been approved by the Legislative Management Committee in April and that the committee could still modify or remove items during the interim. The committee did not adopt statutory changes at this meeting; it only approved study topics and opened bill files for possible future legislation.

What to expect next: Staff will schedule presentations, collect data and invite stakeholders for the new study items. The motion to authorize chairs to open bill files means staff and bill drafters can begin preparing draft bill language if studies produce recommended statutory changes.