Public Education Economic Stabilization Restricted Account Amendments

12
51-7-2
53F-9-204
53F-9-207
0
Public Education Economic Stabilization Restricted Account Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: R. Neil Walter
Senate Sponsor: Scott D. Sandall
LONG TITLE
General Description:
This bill requires the appropriation of a certain amount of funds in the Public Education
Economic Stabilization Restricted Account to a new trust fund for public education.
Highlighted Provisions:
This bill:
establishes the Public Education Economic Stabilization Trust Fund (trust fund) that the
state treasurer manages;
provides the duties and authority of the state treasurer regarding the trust fund;
exempts the trust fund from the Money Management Act;
requires the appropriation of a certain amount of funds in the Public Education Economic
Stabilization Restricted Account to the trust fund before other statutory one-time
appropriations;
corrects the application of a certain minimum appropriation; 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:
51-7-2
Effective
07/01/26
Partially Repealed
07/01/28
, as last amended by Laws of
Utah 2025, First Special Session, Chapter 9
53F-9-204
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapters 413,
433
ENACTS:
53F-9-207
Effective
07/01/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
51-7-2
is amended to read:
51-7-2
Effective
07/01/26
Partially Repealed
07/01/28
. Exemptions from
chapter.
(1)
Except as provided in Subsection
(2)
, the following funds are exempt from this chapter:
(a)
funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and
operated in compliance with Section 457 of the Internal Revenue Code of 1986, as
amended;
(b)
funds of the Utah State Retirement Board;
(c)
funds of the Utah Housing Corporation;
(d)
endowment funds of higher education institutions, including funds of the Higher
Education Student Success Endowment, created in Section
53H-8-402
;
(e)
permanent and other land grant trust funds established pursuant to the Utah Enabling
Act and the Utah Constitution;
(f)
the State Post-Retirement Benefits Trust Fund;
(g)
the funds of the Utah Educational Savings Plan;
(h)
funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(i)
the funds in the Navajo Trust Fund;
(j)
the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k)
the funds in the Employers' Reinsurance Fund;
(l)
the funds in the Uninsured Employers' Fund;
(m)
the Utah State Developmental Center Long-Term Sustainability Fund, created in
Section
26B-1-331
;
(n)
the funds in the Risk Management Fund created in Section
63A-4-201
;
(o)
the Utah fund of funds created in Section
63N-6-401
;
(p)
the funds deposited into the Utah Homes Investment Program from the
Transportation Infrastructure General Fund Support Subfund created in Section
72-2-134
;
(q)
subject to Subsection
67-4-19(2)
, the portion of the funds in the following accounts
invested by the state treasurer in precious metals:
(i)
the State Disaster Recovery Restricted Account, created in Section
53-2a-603
;
(ii)
the General Fund Budget Reserve Account, created in Section
63J-1-312
;
(iii)
the Income Tax Fund Budget Reserve Account, created in Section
63J-1-313
; and
(iv)
the Medicaid Growth Reduction and Budget Stabilization Account, created in
Section
63J-1-315
;
(r)
except as provided in Section
11-13-533
, the funds of a public agency insurance
mutual as that term is defined in Subsection
31A-1-103
(7)(a);
(s)
the State Sovereignty Fund created in Section
51-13-201
;
and
(t)
the funds in the Opioid Litigation Proceeds Fund, created in Section
51-9-801
.
; and
(u)
the Public Education Economic Stabilization Trust Fund, created in Section
53F-9-207
.
(2)
Except for the funds of the Utah State Retirement Board and the Utah Educational
Savings Plan, the funds described in Subsection
(1)
are not exempt from Subsections
51-7-14(2)
and
(3)
.
(3)
Notwithstanding Title
52, Chapter 4
, Open and Public Meetings Act, a public body that
administers a fund described in Subsection
(1)
may hold a closed meeting to discuss the
sale or purchase of identifiable securities, investment funds, or investment contracts.
(4)
A paper, electronic, or other depiction or record of information relating to investment
activities of a fund described in Subsection
(1)
is not subject to Title
63G, Chapter 2
,
Government Records Access and Management Act.
Section 2. Section
53F-9-204
is amended to read:
53F-9-204
Effective
07/01/26
. Public Education Economic Stabilization
Restricted Account.
(1)
There is created within the Uniform School Fund a restricted account known as the
"Public Education Economic Stabilization Restricted Account."
(2)
(a)
Except as provided in Subsection
(2)(b)
, the account shall be funded from the
following revenue sources:
(i)
15% of the difference between, as determined by the Office of the Legislative
Fiscal Analyst:
(A)
the estimated amount of ongoing Income Tax Fund and Uniform School Fund
revenue available for the Legislature to appropriate for the next fiscal year; and
(B)
the amount of ongoing appropriations from the Income Tax Fund and Uniform
School Fund in the current fiscal year; and
(ii)
other appropriations as the Legislature may designate.
(b)
If the appropriation described in Subsection
(2)(a)
would cause the ongoing
appropriations to the account to exceed 11% of Uniform School Fund appropriations
described in Section
53F-9-201.1
for the same fiscal year, the Legislature shall
appropriate only those funds necessary to ensure that the ongoing appropriations to
the account equal 11% of Uniform School Fund appropriations for that fiscal year.
(3)
Subject to the availability of ongoing appropriations to the account, in accordance with
Utah Constitution, Article X, Section 5, Subsection
(4)
, the ongoing appropriation to the
account shall be used to fund:
(a)
except for a year described in Subsection
(3)(b)
or
(c)
,
:
(i)
for a fiscal year beginning on or after July 1, 2027, an appropriation of
$350,000,000 to the Public Education Economic Stabilization Trust Fund
established in Section
53F-9-207
; and
(ii)
using remaining funds after the use described in Subsection
(3)(a)(i)
, for the
one-time appropriations to the public education system, including at least
$65,000,000 to the Catalyst Center Grant Program described in Section
53E-3-507.1
;
(b)
the Minimum School Program for a year in which Income Tax Fund revenue and
Uniform School Fund revenue are insufficient to fund:
(i)
ongoing appropriations to the public education system; and
(ii)
enrollment growth and inflation estimates, as defined in Section
53F-9-201.1
; and
(c)
the minimum basic local amount as defined in Section
53F-2-301
for a year in which
the minimum basic tax rate, as defined in Section
53F-2-301
, is insufficient to
generate the amount described in Subsection
53F-2-301(2)(a)
.
(4)
(a)
The account shall earn interest.
(b)
All interest earned on account money shall be deposited in the account.
(5)
On or before December 31, 2023, and every three years thereafter, the Office of the
Legislative Fiscal Analyst shall:
(a)
review the percentages described in Subsections
(2)(a)(i)
and
(2)(b)
; and
(b)
recommend to the Executive Appropriations Committee any changes based on the
review described in Subsection
(5)(a)
.
(6)
In preparing budget bills for a given fiscal year, the Executive Appropriations
Committee shall make the one-time appropriations described in Subsection
(3)(a)
by
appropriating
at least the lesser of 10% of the total amount of the one-time
appropriations to
:
(a)
at least the lesser of 10% of the total amount of the one-time appropriations or
the
cost of providing 32 paid professional hours for teachers in accordance with Section
53F-7-203
;
(b)
the amount to make the distribution required under Section
53F-2-527
;
(c)
the cost of the Stipends for Future Educators Grant Program described in Section
53F-5-223
; and
(d)
the cost of the Rural School Sports Facilities Grant Program described in Section
53F-10-303
.
(7)
No later than October 15 of each year, the state board shall report to the Office of the
Legislative Fiscal Analyst an estimated cost for each of the one-time appropriations
described in Subsection
(6)
.
Section 3. Section
53F-9-207
is enacted to read:
53F-9-207
Effective
07/01/26
. Public Education Economic Stabilization Trust
Fund.
(1)
As used in this section:
(a)
"Income" means the revenues received by the state treasurer from investments of the
trust fund principal.
(b)
"Trust fund" means the Public Education Economic Stabilization Trust Fund that this
section creates.
(2)
This section creates the Public Education Economic Stabilization Trust Fund.
(3)
The trust fund consists of:
(a)
appropriations from the Public Education Economic Stabilization Restricted Account
described in Subsection
53F-9-204(3)
;
(b)
other appropriations the Legislature makes to the trust fund;
(c)
income; and
(d)
revenue received from other sources.
(4)
The Division of Finance shall account for the receipt and expenditures of trust fund
money.
(5)
(a)
The state treasurer shall invest the assets of the trust fund, as a prudent investor
would, with the primary goal of providing for the stability, income, and growth of the
principal.
(b)
Nothing in this section requires a specific outcome in investing.
(c)
The state treasurer may deduct any administrative costs incurred in managing trust
fund assets from earnings before distributing the trust fund assets.
(d)
(i)
The state treasurer may employ professional asset managers to assist in the
investment of assets of the trust fund.
(ii)
The treasurer may only provide compensation to asset managers from earnings
generated by the trust fund's investments.
(e)
(i)
The trust fund shall earn interest.
(ii)
The state treasurer shall deposit all interest or other income earned from
investment of the trust fund back into the trust fund.
(6)
The Legislature may make appropriations related to public education from the trust fund
or otherwise provide authorized public education uses of money in the trust fund.
Section 4.
Effective Date.
This bill takes effect on
July 1, 2026
.
2-17-26 9:57 PM