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11
51-9-201
59-14-807
63I-1-259
63I-2-259
0
Restricted Account Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jennifer Dailey-Provost
Senate Sponsor: Evan J. Vickers
LONG TITLE
General Description:
This bill modifies provisions related to restricted accounts.
Highlighted Provisions:
This bill:
modifies provisions that govern the permissible uses of funds in the Tobacco Settlement
Restricted Account and the Electronic Cigarette Substance and Nicotine Product
Proceeds Restricted Account;
directs how to satisfy legislative appropriations from the Tobacco Settlement Restricted
Account or the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted
Account when the total appropriated amounts exceed actual revenue;
makes a technical correction to add a sunset review for certain provisions related to the
Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account
before the provisions are repealed in accordance with existing statute; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
51-9-201
Effective
07/01/26
, as last amended by Laws of Utah 2023, Chapter 328
59-14-807
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapters 173,
366
63I-1-259
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapter 270
63I-2-259
Effective
05/06/26
, as last amended by Laws of Utah 2025, Chapters 157,
182, 277, and 366
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
51-9-201
is amended to read:
51-9-201
Effective
07/01/26
. Creation of Tobacco Settlement Restricted
Account.
(1)
There is created within the General Fund a restricted account known as the "Tobacco
Settlement Restricted Account."
(2)
The account shall earn interest.
(3)
The account shall consist of:
(a)
on and after July 1, 2007, 60% of all funds of every kind that are received by the
state that are related to the settlement agreement that the state entered into with
leading tobacco manufacturers on November 23, 1998; and
(b)
interest earned on the account.
(4)
(a)
To the extent that funds will be available for appropriation in a given fiscal year,
those funds shall be appropriated from the account in the following order
To the
extent there are available funds in the Tobacco Settlement Restricted Account, the
Legislature shall appropriate funds from the account as follows
:
(a)
(i)
$66,600
to the Office of the Attorney General for ongoing enforcement and
defense of the Tobacco Settlement Agreement;
(b)
(ii)
$18,500
to the State Tax Commission for ongoing enforcement of business
compliance with the Tobacco Tax Settlement Agreement;
(c)
(iii)
$11,022,900
to the Department of Health and Human Services for:
(i)
(A)
children in the Medicaid program created in
Title 26B, Chapter 3, Health
Care - Administration and Assistance
, and the Children's Health Insurance
Program created in Section
26B-3-902
; and
(ii)
(B)
for restoration of dental benefits in the Children's Health Insurance
Program;
(d)
(iv)
$3,277,100
to the Department of Health and Human Services for alcohol,
tobacco, and other drug prevention, reduction, cessation, and control programs
that promote unified messages and make use of media outlets, including radio,
newspaper, billboards, and television, and with a preference in funding given to
tobacco-related programs;
and
(e)
(v)
$193,700
to the Administrative Office of the Courts and
$2,325,400
to the
Department of Health and Human Services for the statewide expansion of the drug
court program
;
.
(f)
$4,000,000 to the Utah Board of Higher Education for the University of Utah Health
Sciences Center to benefit the health and well-being of Utah citizens through in-state
research, treatment, and educational activities; and
(g)
any remaining funds as directed by the Legislature through appropriation.
(b)
When appropriating money in accordance with this section, the Legislature shall
include intent language for each appropriation that refers to the corresponding item in
Subsection
(4)(a)
.
(c)
If the total amount the Legislature appropriates in a fiscal year for the items
described in Subsections
(4)(a)(i)
through (v) exceeds the actual available funds in
the Tobacco Settlement Restricted Account, the Division of Finance shall make
transfers to satisfy the Legislature's appropriation for each item described in
Subsection
(4)(a)
:
(i)
sequentially in the order listed;
(ii)
in full or, if insufficient funds are available to satisfy that item, in part; and
(iii)
until the available funds in the Tobacco Settlement Restricted Account are
exhausted.
Section 2. Section
59-14-807
is amended to read:
59-14-807
Effective
07/01/26
. Electronic Cigarette Substance and Nicotine
Product Proceeds Restricted Account.
(1)
There is created within the General Fund a restricted account known as the "Electronic
Cigarette Substance and Nicotine Product Proceeds Restricted Account."
(2)
The Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account
consists of:
(a)
revenue collected from the tax imposed by Section
59-14-804
;
(b)
fees and penalties collected under Section
59-14-810
;
(c)
all money received by the attorney general or the Department of Commerce as a
result of any judgment, settlement, or compromise of claims pertaining to alleged
violations of law related to the manufacture, marketing, distribution, or sale of
electronic cigarette products, as defined in Section
76-9-1101
:
(i)
if the total amount of the judgment, settlement, or compromise received by the
state exceeds $1,000,000; and
(ii)
after reimbursement to the attorney general and the Department of Commerce for
expenses related to the matters described in this Subsection
(2)(c)
; and
(d)
amounts appropriated by the Legislature.
(3)
(a)
Subject to Subsections
(3)(b)
and
(c)
, for each fiscal year and subject to
appropriation by the Legislature, the Division of Finance shall distribute
funds
from
the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account
as follows
:
(i)
$2,000,000
to the Department of Health and Human Services for enforcement
services aimed at disrupting organizations and networks that provide tobacco
products, electronic cigarette products, nicotine products, or other illegal
controlled substances to minors, which the Department of Health and Human
Services shall allocate to the local health departments using the formula created in
accordance with Section
26A-1-116
;
(ii)
$1,180,000
to the Department of Public Safety for law enforcement officers
aimed at disrupting organizations and networks that provide tobacco products,
electronic cigarette products, nicotine products, and other illegal controlled
substances to minors;
(iii)
$1,000,000
to the Department of Health and Human Services for enforcement
services aimed at disrupting organizations and networks that provide tobacco
products, electronic cigarette products, nicotine products, and other illegal
controlled substances to minors;
(iv)
$3,000,000
to the Department of Health and Human Services for community
partner prevention programs, which the Department of Health and Human
Services shall allocate to the local health departments using the formula created in
accordance with Section
26A-1-116
;
(v)
$1,000,000
to the Department of Health and Human Services for statewide
cessation programs and prevention education;
(vi)
$2,000,000
to the Department of Health and Human Services for alcohol,
tobacco, and other drug prevention, reduction, cessation, and control programs
that promote unified messages and make use of media outlets, including radio,
newspaper, billboards, and television; and
(vii)
$5,084,200
to the State Board of Education for school-based prevention
programs.
(b)
If the amount in the Electronic Cigarette Substance and Nicotine Product Proceeds
Restricted Account is insufficient to cover the distributions described in Subsection
(3)(a)
, the Division of Finance shall make the distributions under Subsection
(3)(a)
:
(i)
sequentially in the order of priority the distributions are listed under Subsection
(3)(a)
;
(ii)
in full or, if insufficient funds are available to satisfy the next distribution in the
sequence, in part; and
(iii)
until the available funds in the Electronic Cigarette Substance and Nicotine
Product Proceeds Restricted Account are exhausted.
(b)
When appropriating money in accordance with this section, the Legislature shall
include intent language for each appropriation that refers to the corresponding item in
Subsection
(3)(a)
.
(c)
If the total amount the Legislature appropriates for the items described in
Subsections
(3)(a)(i)
through
(vii)
in a fiscal year exceeds the actual available funds
in the Electronic Cigarette Substance and Nicotine Product Proceeds Restricted
Account, the Division of Finance shall make transfers to satisfy the Legislature's
appropriation for each item described in Subsection
(3)(a)
:
(i)
sequentially in the order listed;
(ii)
in full or, if insufficient funds are available to satisfy that item, in part; and
(iii)
until the available funds in the Electronic Cigarette Substance and Nicotine
Product Proceeds Restricted Account are exhausted.
(c)
(d)
For each fiscal year and subject to appropriation by the Legislature, the Division
of Finance shall distribute from the funds deposited under Section
59-14-810
into the
Electronic Cigarette Substance and Nicotine Product Proceeds Restricted Account:
(i)
to the commission, in an amount equal to the amount necessary to create and
maintain the registry described in Section
59-14-810
;
(ii)
to the Department of Health and Human Services, in an amount necessary for
completing duties described in Section
59-14-810
; and
(iii)
to the Department of Health and Human Services, the remainder to be divided
among the local health departments for inspection and enforcement described in
Sections
26A-1-131
and
59-14-810
.
(4)
(a)
The local health departments shall use the money received in accordance with
Subsection
(3)(a)
for enforcing:
(i)
the regulation provisions described in Section
26B-7-505
;
(ii)
the labeling requirement described in Section
26B-7-505
; and
(iii)
the penalty provisions described in Section
26B-7-518
.
(b)
The Department of Health and Human Services shall use the money received in
accordance with Subsection
(3)(a)(v)
for the Youth Electronic Cigarette, Marijuana,
and Other Drug Prevention Program created in Section
26B-1-428
.
(c)
The local health departments shall use the money received in accordance with
Subsection
(3)(a)(iv)
to issue grants under the Electronic Cigarette, Marijuana, and
Other Drug Prevention Grant Program created in Section
26A-1-129
.
(d)
The State Board of Education shall use the money received in accordance with
Subsection
(3)(a)(vii)
to distribute to local education agencies to pay for:
(i)
(A)
stipends for positive behaviors specialists as described in Subsection
53G-10-407(4)(a)(i)
;
(B)
the cost of administering the positive behaviors plan as described in
Subsection
53G-10-407(4)(a)(ii)
; and
(C)
the cost of implementing an Underage Drinking and Substance Abuse
Prevention Program in grade 4 or 5, as described in Subsection
53G-10-406(3)(b)
; or
(ii)
a comprehensive prevention plan, as that term is defined in Section
53F-2-525
.
(5)
(a)
The fund shall earn interest.
(b)
All interest earned on fund money shall be deposited into the fund.
(6)
Subject to legislative appropriations, funds remaining in the Electronic Cigarette
Substance and Nicotine Product Proceeds Restricted Account after the distribution
described in Subsection
(3)
may only be used for:
(a)
funding commission personnel to enforce compliance with the tax collection
requirements of this part; and
(b)
programs and activities related to the prevention and cessation of electronic cigarette,
nicotine products, marijuana, and other drug use.
Section 3. Section
63I-1-259
is amended to read:
63I-1-259
Effective
05/06/26
. Repeal dates: Title 59.
(1)
Subsection
59-1-403(4)(aa)
, regarding a requirement for the State Tax Commission to
inform the Department of Workforce Services whether an individual claimed a federal
earned income tax credit, is repealed July 1, 2029.
(2)
Section
59-2-1603
, Allocation of money in the Property Tax Valuation Fund -- Use of
funds, is repealed July 1, 2030.
(3)
Section
59-5-304
, Tax credit for mining exploration, is repealed July 1, 2037.
(4)
Section
59-7-618.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(5)
Section
59-9-102.5
, Offset for occupational health and safety related donations, is
repealed December 31, 2030.
(6)
Section
59-10-1033.1
, Tax credit related to alternative fuel heavy duty vehicles, is
repealed July 1, 2029.
(7)
Subsection
59-14-807(3)(a)(vi)
, regarding funding for alcohol, tobacco, and other drug
prevention, reduction, cessation, and control programs, is repealed July 1, 2030.
(8)
Subsection
59-14-807(4)(b)
, regarding money for the Youth Electronic Cigarette,
Marijuana, and Other Drug Prevention Committee, is repealed July 1, 2030.
(7)
(9)
Subsection
59-28-103(5)
, regarding a tax rate on certain transactions that take place
within a county of the first class, is repealed July 1, 2047.
Section 4. Section
63I-2-259
is amended to read:
63I-2-259
Effective
05/06/26
. Repeal dates: Title 59.
(1)
Subsection
59-7-159(3)(b)(iii)
, referencing Section
59-7-614.10
, is repealed December
31, 2026.
(2)
Section
59-7-614.10
, Nonrefundable enterprise zone tax credit, is repealed December
31, 2026.
(3)
Subsection
59-10-137(3)(b)(viii)
, referencing Section
59-10-1037
, is repealed
December 31, 2026.
(4)
Section
59-10-1037
, Nonrefundable enterprise zone tax credit, is repealed December 31,
2026.
(5)
Subsection
59-14-807(3)(a)(iii)
, regarding the Youth Electronic Cigarette, Marijuana,
and Other Drug Prevention Committee, is repealed July 1, 2030.
(6)
Subsection
59-14-807(4)(b)
, regarding the Youth Electronic Cigarette, Marijuana, and
Other Drug Prevention Committee, is repealed July 1, 2030.
(7)
(5)
Section
59-24-103.8
, Radioactive waste facility expansion tax -- Payment --
Deposit of tax revenue, is repealed July 1, 2026.
Section 5.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect
May 6, 2026
.
(2)
The actions affecting the following sections take effect on
July 1, 2026
:
(a)
Section 51-9-201
Effective
07/01/26
; and
(b)
Section 59-14-807
Effective
07/01/26
.
1-29-26 12:18 PM