Federal Funds Modifications

30
36-12-13
53H-4-317
63C-4a-303
0
Federal Funds Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin Roberts
Senate Sponsor: John D. Johnson
LONG TITLE
General Description:
This bill modifies provisions related to federal funds.
Highlighted Provisions:
This bill:
directs the legislative fiscal analyst to submit to the Federalism Commission
(commission) the portions of each budget stress test that relate to federal funds;
requires the commission to review and, in the commission's discretion, make legislative
recommendations regarding the federal funds portions of each budget stress test;
requires the Utah State University Jon M. Huntsman School of Business to:
create and maintain a publicly available dashboard that visualizes state dependency on
federal funds; and
model economic scenarios to inform federal funds contingency planning; and
makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates
$300,000
in operating and capital budgets for fiscal year 2027, all of
which is from the Income Tax Fund.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
36-12-13
Effective
05/06/26
, as last amended by Laws of Utah 2024, Chapter 439
63C-4a-303
Effective
05/06/26
Repealed
07/01/28
, as last amended by Laws of Utah
2025, First Special Session, Chapter 9
ENACTS:
53H-4-317
Effective
05/06/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
36-12-13
is amended to read:
36-12-13
Effective
05/06/26
. Office of the Legislative Fiscal Analyst established
-- Powers, functions, and duties -- Qualifications.
(1)
There is established an Office of the Legislative Fiscal Analyst as a permanent staff
office for the Legislature.
(2)
The powers, functions, and duties of the Office of the Legislative Fiscal Analyst under
the supervision of the fiscal analyst are:
(a)
(i)
to estimate general revenue collections, including comparisons of:
(A)
current estimates for each major tax type to long-term trends for that tax type;
(B)
current estimates for federal fund receipts to long-term federal fund trends; and
(C)
current estimates for tax collections and federal fund receipts to long-term
trends deflated for the inflationary effects of debt monetization; and
(ii)
to report the analysis required under Subsection
(2)(a)(i)
to the Legislature's
Executive Appropriations Committee before each annual general session of the
Legislature;
(b)
to analyze in detail the state budget before the convening of each legislative session
and make recommendations to the Legislature on each item or program appearing in
the budget, including:
(i)
funding for and performance of programs, acquisitions, and services currently
undertaken by state government to determine whether each department, agency,
institution, or program should:
(A)
continue at its current level of expenditure;
(B)
continue at a different level of expenditure; or
(C)
be terminated; and
(ii)
increases or decreases to spending authority and other resource allocations for the
current and future fiscal years;
(c)
to prepare on all proposed bills fiscal estimates that reflect:
(i)
potential state government revenue impacts;
(ii)
anticipated state government expenditure changes;
(iii)
anticipated expenditure changes for county, municipal, special district, or special
service district governments;
(iv)
anticipated direct expenditure by Utah residents and businesses, including the
unit cost, number of units, and total cost to all impacted residents and businesses;
and
(v)
if the proposed bill changes retirement benefits under a system or plan governed
by Title 49, Utah State Retirement and Insurance Benefit Act, the anticipated
effect on:
(A)
each affected system's or plan's unfunded actuarial accrued liability and
actuarial funded ratio, based on current employer contributions;
(B)
employer contributions and member contributions;
(C)
a retiree's retirement allowance;
(D)
the total cost to active members and retirees; and
(E)
the total cost to employers for all active members and retirees;
(d)
to indicate whether each proposed bill will impact the regulatory burden for Utah
residents or businesses, and if so:
(i)
whether the impact increases or decreases the regulatory burden; and
(ii)
whether the change in burden is high, medium, or low;
(e)
beginning in 2017 and repeating every three years after 2017, to prepare the
following cycle of analyses of long-term fiscal sustainability:
(i)
in year one, the joint revenue volatility report required under Section
63J-1-205
;
(ii)
in year two, a long-term budget for programs appropriated from major funds and
tax types; and
(iii)
in year three, a budget stress test that, in consultation with the Governor's Office
of Planning and Budget:
(A)
compares estimated future revenue to and expenditure from major funds and
tax types under various potential economic conditions;
(B)
analyzes the economic and policy risks associated with funding for the
Medicaid program and expansions of the Medicaid program;
(C)
measures value at risk; and
(D)
recommends budgetary actions to manage risk;
(f)
to report instances in which the administration may be failing to carry out the
expressed intent of the Legislature;
(g)
to propose and analyze statutory changes for more effective operational economies
or more effective administration;
(h)
to prepare, before each annual general session of the Legislature, a summary
showing the current status of the following as compared to the past nine fiscal years:
(i)
debt;
(ii)
long-term liabilities;
(iii)
contingent liabilities;
(iv)
General Fund borrowing;
(v)
reserves;
(vi)
fund and nonlapsing balances; and
(vii)
cash funded capital investments;
(i)
to make recommendations for addressing the items described in Subsection
(2)(h)
in
the upcoming annual general session of the Legislature;
(j)
to prepare, after each session of the Legislature, a summary showing the effect of the
final legislative program on the financial condition of the state;
(k)
to conduct organizational and management improvement studies in accordance with
Title 63J, Chapter 1, Part 9, Government Performance Reporting and Efficiency
Process, and legislative rule;
(l)
to prepare and deliver upon request of any interim committee or the Legislative
Management Committee, reports on the finances of the state and on anticipated or
proposed requests for appropriations;
(m)
to recommend areas for research studies by the executive department or the interim
committees;
(n)
to appoint and develop a professional staff within budget limitations;
(o)
to prepare and submit the annual budget request for the office;
(p)
to develop a taxpayer receipt:
(i)
available to taxpayers through a website; and
(ii)
that allows a taxpayer to view on the website an estimate of how the taxpayer's
tax dollars are expended for government purposes; and
(q)
to publish or provide other information on taxation and government expenditures that
may be accessed by the public.
(3)
(a)
Except as provided in Subsection
(3)(b)
, the legislative fiscal analyst shall submit
to the Executive Appropriations Committee the results of the budget stress test
described in Subsection
(2)(e)(iii)
.
(b)
The legislative fiscal analyst shall submit to the Federalism Commission the portions
of the results of the budget stress test that relate to federal funds.
(3)
(4)
The legislative fiscal analyst shall have a master's degree in public administration,
political science, economics, accounting, or the equivalent in academic or practical
experience.
(4)
(5)
In carrying out the duties provided for in this section, the legislative fiscal analyst
may obtain access to all records, documents, and reports necessary to the scope of the
legislative fiscal analyst's duties according to the procedures contained in Title 36,
Chapter 14, Legislative Subpoena Powers.
(5)
(6)
The Office of the Legislative Fiscal Analyst shall provide any information the State
Board of Education reports in accordance with Subsection
53E-3-507(7)
to:
(a)
the chief sponsor of the proposed bill; and
(b)
upon request, any legislator.
Section 2. Section
53H-4-317
is enacted to read:
53H-4-317
Effective
05/06/26
. Federal funds contingency planning dashboard.
(1)
As used in this section:
(a)
"Center" means the Analytics Solutions Center at the Utah State University Jon M.
Huntsman School of Business.
(b)
"Federalism Commission" means the Federalism Commission created in Section
63C-4a-302
.
(2)
In consultation with the Federalism Commission and subject to legislative
appropriation, the center shall:
(a)
create and maintain a digital dashboard that visualizes the risk of federal funds
reductions and the state's dependency on federal funds;
(b)
ensure that the dashboard is publicly available, user-friendly, and dynamic;
(c)
identify, curate, clean, and securely warehouse funding data relevant to creating and
maintaining the dashboard;
(d)
continuously monitor and update the dashboard's data and functionality to ensure
accuracy and compliance with this section;
(e)
model economic scenarios to help the state plan for potential reductions in federal
funds; and
(f)
upon request, report to the Federalism Commission regarding the duties described in
this section.
Section 3. Section
63C-4a-303
is amended to read:
63C-4a-303
Effective
05/06/26
Repealed
07/01/28
. Federalism Commission
duties -- Evaluation of federal law -- Curriculum on federalism -- Environment
discussions -- Oversight of Center for Constitutional Studies in relation to center's
federalism duties -- Review of federal funds portion of budget stress test.
(1)
(a)
In accordance with Section
63C-4a-304
, the commission may evaluate a federal
law:
(i)
as agreed by a majority of the commission;
(ii)
submitted to the commission by a council member; or
(iii)
reported to the commission in accordance with Subsection
(1)(b)
.
(b)
(i)
To assist the commission in the evaluation of federal law as required in this
section and Section
63C-4a-304
, the commission may contract with a third party
that is a Utah institution of higher education to monitor federal law for possible
implications on the principles of federalism.
(ii)
A third party contracted to monitor federal law as described in Subsection
(1)(b)(i)

shall:
(A)
monitor federal law for possible implications on the principles of federalism
and state sovereignty; and
(B)
report to the commission any law or action by the federal government that
may implicate the principles of federalism or state sovereignty.
(c)
(i)
As used in this Subsection
(1)(c)
, "interim committee" means the same as that
term is defined in Section
36-12-1
.
(ii)
The commission shall provide an annual report to each interim committee
concerning any law or action by the federal government that implicates the
principles of federalism or state sovereignty.
(iii)
The commission may notify the appropriate interim committee of any law or
action by the federal government that implicates the principles of federalism or
state sovereignty.
(2)
The commission may request information regarding a federal law under evaluation from
a United States senator or representative elected from the state.
(3)
If the commission finds that a federal law is not authorized by the United States
Constitution or violates the principle of federalism as described in Subsection
63C-4a-304(2)
, a commission cochair or the commission may:
(a)
request from a United States senator or representative elected from the state:
(i)
information about the federal law; or
(ii)
assistance in communicating with a federal governmental entity regarding the
federal law;
(b)
(i)
give written notice of an evaluation made under Subsection
(1)
to the federal
governmental entity responsible for adopting or administering the federal law; and
(ii)
request a response by a specific date to the evaluation from the federal
governmental entity;
(c)
request a meeting, conducted in person or by electronic means, with the federal
governmental entity, a representative from another state, or a United States Senator
or Representative elected from the state to discuss the evaluation of federal law and
any possible remedy; or
(d)
give written notice of an evaluation and the conclusions of the commission to any
other relevant entity.
(4)
The commission may recommend to the governor that the governor call a special
session of the Legislature to give the Legislature an opportunity to respond to the
commission's evaluation of a federal law.
(5)
A commission cochair may coordinate the evaluation of and response to federal law
with another state as provided in Section
63C-4a-305
.
(6)
The commission shall keep a current list on the Legislature's website of:
(a)
a federal law that the commission evaluates under Subsection
(1)
;
(b)
an action taken by a cochair of the commission or the commission under Subsection
(3)
;
(c)
any coordination undertaken with another state under Section
63C-4a-305
; and
(d)
any response received from a federal government entity that was requested under
Subsection
(3)
.
(7)
(a)
The commission shall develop curriculum for a seminar on the principles of
federalism.
(b)
The curriculum under Subsection
(7)(a)
shall be available to the general public and
include:
(i)
fundamental principles of federalism;
(ii)
the sovereignty, supremacy, and jurisdiction of the individual states, including
their police powers;
(iii)
the history and practical implementation of the Tenth Amendment to the United
States Constitution;
(iv)
the authority and limits on the authority of the federal government as found in the
United States Constitution;
(v)
the relationship between the state and federal governments;
(vi)
methods of evaluating a federal law in the context of the principles of federalism;
(vii)
how and when challenges should be made to a federal law or regulation on the
basis of federalism;
(viii)
the separate and independent powers of the state that serve as a check on the
federal government;
(ix)
first amendment rights and freedoms contained therein; and
(x)
any other issues relating to federalism the commission considers necessary.
(8)
The commission may apply for and receive grants, and receive private donations to
assist in funding the creation, enhancement, and dissemination of the curriculum.
(9)
The commission shall submit a report on or before November 30 of each year to the
Government Operations Interim Committee and the Natural Resources, Agriculture, and
Environment Interim Committee that:
(a)
describes any action taken by the commission under Section
63C-4a-303
63C-4a-304
; and
(b)
includes any proposed legislation the commission recommends.
(10)
The commission shall comply with Section
19-1-110
in discussions with the
Department of Environmental Quality on issues related to the environment or the
functioning of the Department of Environmental Quality.
(11)
The commission shall:
(a)
coordinate with and make recommendations to the center concerning the center's
federalism-related duties under Section
53H-4-703
, including:
(i)
the development of the federalism education and training program under
Subsection
53H-4-703(1)
; and
(ii)
the scope and objectives of:
(A)
the annual federalism conference organized under Subsection
53H-4-703(2)
;
(B)
the study conducted under Subsection
53H-4-703(3)
; and
(C)
the center's coordination efforts under Subsection
53H-4-703(4)
;
(b)
coordinate with and make recommendations to the institute regarding the institute's
federalism-related duties under Section
53H-4-704
; and
(c)
report annually to the Legislative Management Committee regarding:
(i)
the center's progress in fulfilling the requirements of Section
53H-4-703
; and
(ii)
the institute's progress in fulfilling the requirements of Section
53H-4-704
.
(12)
Each executive branch agency shall, at the request of the commission, designate a
contact person to coordinate with the commission regarding the federalism education
and training program developed under Section
53H-4-703
for purposes of:
(a)
determining the extent of federal jurisdiction in the agency's resource sphere;
(b)
determining whether federal action exceeds the federal government's jurisdictional
authority;
(c)
assessing what actions the agency may take in the event that federal action exceeds
the federal government's jurisdictional authority; and
(d)
assessing how actions described in Subsection
(12)(c)
may better enable the agency
to use the agency's best judgment in serving the people of Utah.
(13)
Upon receipt of the budget stress test results described in Subsection
36-12-13(3)(b)
,
the commission shall review the results and make any related legislative
recommendations to the Executive Appropriations Committee.
Section 4.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 4(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
HIGHER EDUCATION
UTAH STATE UNIVERSITY
ITEM 1
Utah State University - Education and General
From Income Tax Fund
150,000
From Income Tax Fund, One-time
150,000
Public Service
300,000
The Legislature intends that the Analytics
Solutions Center at the Utah State University Jon M.
Huntsman School of Business use the appropriations
provided under this item to fulfill the requirements of
Utah Code Section 53H-3-317.
Section 5.
Effective Date.
This bill takes effect on
May 6, 2026
.
3-6-26 10:35 AM