Top 6 in 2026: AGC of Utah’s Legislative Priorities for the Construction Industry
Every year from January through March, the Utah Legislature meets for a fast-paced 45-day session to pass new laws, approve budgets, and set the direction for state policy.
For construction, those decisions directly affect how we bid, build, hire, and plan; influencing both our risk and profitability. That’s why AGC of Utah is at the Capitol every day during the session, making sure lawmakers understand the real-world impact of their decisions on Utah’s builders.
1. K-12 and DFCM Construction Oversight
After state audits of both K-12 school construction and DFCM-managed projects, legislators are preparing bills to reduce costs and improve oversight of taxpayer-funded construction. These proposals may alter procurement rules, delivery methods, and project approval processes, with the goal of increasing efficiency across state and local building programs.
2. Contractor Licensing Updates
In addition to general cleanup and modernization, lawmakers are exploring how to better regulate labor providers (contractors who primarily supply labor rather than materials). This could lead to a new specialty license with different tax and insurance reporting requirements. It’s worth noting that these conversations often spark broader debate. We’ve already heard early rumblings of legislators revisiting the entire licensing process, which could bring more significant changes.
3. Gas Tax and Infrastructure Funding
Utah is evaluating major changes to gas taxation as part of a broader effort to save residents money at the pump. However, the gas tax has long been the primary source of funding for roads and bridges. Lawmakers are weighing how to balance lower fuel taxes with sustainable funding for UDOT and local infrastructure needs. AGC is monitoring these proposals closely to ensure infrastructure development remains a top state priority.
4. Prevailing Wage
We are aware of a proposed bill to establish prevailing wage requirements on Utah-funded projects (such as UDOT and DFCM jobs). If adopted, similar standards would likely spread quickly to cities and other local agencies.
Prevailing wage laws set required pay rates for each trade on public construction projects, based on regional averages. These rates, often referred to as “Davis-Bacon wages,” include both base pay and fringe benefits to ensure fair competition and prevent undercutting on government work.
5. Immigration and E-Verify
Lawmakers are expected to revisit immigration enforcement and workforce verification rules, particularly for state-funded construction. Proposals may clarify how E-Verify and similar systems apply across tiers of contractors and subcontractors, potentially reshaping workforce compliance standards on public jobs.
6. Right-to-Repair
Utah is preparing to introduce a statewide right-to-repair bill. Traditionally focused on consumer electronics, this version is being driven largely by concerns within the agriculture and heavy-equipment industries. While intended to expand access to repair tools, software, and diagnostic data, the proposal would likely apply broadly to all machinery (including construction equipment), raising questions about safety, warranties, and intellectual property.