Utah's groundbreaking law shields businesses with government permits from lawsuits
Utah has passed a first-of-its-kind law shielding companies from lawsuits if their actions follow official permits. The bill, H.B. 330, received unanimous support in the House before clearing the Senate with a narrower margin. Gov. Spencer Cox signed it into law last week after key amendments addressed earlier concerns. The legislation was introduced by Rep. Colin Jack and quickly gained traction. It passed the House Judiciary Committee before securing a 65-0 vote in the full House. In the Senate, it faced more debate but ultimately passed 17-7, with a final amendment later approved by the House 50-15.
The bill allows businesses to use government authorisation as a legal defence in court. However, the final version clarifies that even with official approval, companies must still exercise reasonable care. This balance was crucial in winning over critics. Initially, the Utah Association for Justice opposed the measure. Rachel Sykes, a representative, argued it could shield negligent companies from accountability. But after discussions with Jack and amendments to the text, the group dropped its objections. Supporters included the Utah Mining Association, whose president, Brian Somers, highlighted the role of coal in winter heating. Mark Behrens, a lawyer from Shook, Hardy & Bacon, testified that the bill encouraged compliance with regulations by offering legal protections—a 'carrot-and-stick' approach. No other US state has enacted similar legislation, making Utah the first to adopt such a framework.
The law now provides companies with a new legal defence when acting under government permits. It also maintains a duty of care requirement to prevent misuse. The measure takes effect immediately, setting a precedent that other states may watch closely.
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