SALT LAKE CITY — Leaders of Utah's capital city have already voiced their displeasure with a new state bill banning the display of pride flags in schools and government buildings, opting to raise the flag outside city hall on the last day of the legislative session as a "statement."

Now, Salt Lake City might have to put its money where its mouth is.

As city leaders recapped the latest legislative session, which had many impacts on the city, one Salt Lake City council member suggested the city consider allocating a certain percentage of its upcoming budget to pay fines for waving unapproved flags associated with HB77, citing the city's concerns about state "overreach."

"Sometimes the best way to demonstrate that overreach is to be an aggressor, in terms of 'we're not going to listen to that,'" said Councilwoman Sarah Young, drawing applause from at least one person in the normally unreactive work session gallery.

HB77, which is still awaiting a final signature from Gov. Spencer Cox, sets perimeters for what flags can and can't be displayed at schools and other government buildings. The U.S., Utah and city flags, and flags of different countries are permissible, as well as various military, tribal, higher education and Olympic flags, but pride flags and some others the city has flown — such as the Juneteenth flag — are not allowed.

Schools and government bodies found in violation would have 30 days to get back into compliance before being subject to a $500-a-day fine.

Rep. Trevor Lee, R-Layton, the bill's sponsor, said the measure is about maintaining political neutrality in public spaces.

"It's not an infringement on freedom of speech. These are taxpayer-funded entities that should be politically neutral. They are already forced to keep religion out, and political groups or movements are no different," he said last week.

However, some lawmakers voiced concerns with the bill before it was passed in the Utah Legislature. Sen. Stephanie Pitcher, D-Millcreek, attempted to add a floor amendment that would have removed cities and counties from the bill, noting that the Supreme Court has recognized local government entities have "independent free speech rights." Her measure failed on the Senate floor.

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Some groups have asked Cox to veto the bill, which would otherwise go into effect on May 7. Angela Price, Salt Lake City's legislative affairs director, said it's one of the bigger bills that the city has issues with.

"We're ... concerned about kind of the overreach of free speech that this bill has on the city, and have a lot of concerns about it limiting a city's ability and elected officials' ability to represent your residents that you are elected to represent," she said.

Kate Bradshaw, director of government affairs for the firm Holland and Hart, which lobbies on behalf of Salt Lake City, said she expects issues to arise with other groups when it comes to future flags not allowed, such as flags with logos for special community events. She noted cities like Park City have ski-related flags that could be impacted, as well.

It's unclear yet if Salt Lake City will continue waving unapproved flags if the bill is signed, or if it will budget any penalty fees should it incur any. Salt Lake City Council Chairman Chris Wharton, who is openly gay, told KSL.com after the meeting that the city will wait on Cox's decision first before deciding its next move.

"If he does sign the bill, then I think we have to look at all of our options — as every municipality will have to do — and make a decision on how we respond to this law," Wharton said. "We want us to continue to be a city that's open and welcome to all kinds of residents, especially those who have been marginalized."

The city typically creates its budget after the legislative session and before the start of the next fiscal year, which is July 1.

A 'final piece' in the downtown puzzle?

The Utah Legislature passed 582 bills this year. Price said her team tracked 345 proposed bills either targeting Salt Lake City or cities in general, as well as hundreds of substitutes, a 23% increase from last year. Some that passed are still being reviewed for potential impacts.

One of the other bigger bills was SB26, which she said could be the "final piece" in keeping the Utah Jazz and Utah Hockey Club downtown for decades to come.

Salt Lake City and Smith Entertainment Group — through a legislative process passed last year — agreed on a plan that kickstarted a 0.5% sales tax in the city to help the company repay up to $900 million in bonds that would be used to pay for Delta Center remodeling and other downtown projects.

Yet, funding for the proposed Salt Palace Convention Center remodel and other downtown projects was still in question. That changed with SB26, which creates an avenue for Salt Lake County and Salt Lake City to raise funds to cover project costs — expected to exceed $1 billion.

Salt Lake City is also getting to work quickly on it to meet an April 15 deadline in the bill. While Wharton said the outcome is essentially already determined through the legislation, the city will hold a public hearing for a proposed "public infrastructure district" on April 1 to meet possible legal holdups. A city vote is expected on April 15 to comply with the bill.

Other bills of note

A few other bills garnered headlines this season, but city officials say they feel better about them than when they were initially proposed.

Price said 28 bills passed had some ties to the city's new public safety plan. The most notable was HB465, which initially would have required Salt Lake City — and other larger cities — to partner with the Utah Department of Public Safety on public safety plans or risk millions of state funds.

It was changed to affect just Salt Lake City before it passed, but she said the changes included items the city would have wanted, like perimeters on data sharing and "accountability metrics" while removing the financial punishment. The bill also allows the state to use eminent domain in unincorporated Salt Lake County for a potential new homeless service campus.

SB195, on the other hand, could have created all sorts of problems for projects on city and state roads with a one-year road project moratorium that was ultimately lifted after a back-and-forth drama. The bill calls for a study of various road safety options on the city's larger roads.

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