Budgetary Modifications

153
4-46-102
4-46-202
4-46-301
4-46-302
4-46-303
4-46-304
4-46-401
17-81-501
19-2-301
19-2-302
19-2-303
19-2-304
23A-3-204
23A-3-206
39A-8-104
51-9-701
51-9-702
53-3-106
63C-25-101
63G-6b-101
63G-6b-201
63G-6b-301
63G-6b-401
63G-9-201
63G-9-301
63I-1-223
63I-2-263
63J-1-105
63J-1-217
63J-1-602.1
63J-1-602.2
63M-14-102
63M-14-501
63N-3-103
63N-3-105
63N-3-106
67-3-1
79-6-410
79-6-1105
79-6-1106
HB0545
HB0473
0
Budgetary Modifications
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Val L. Peterson
Senate Sponsor: Jerry W Stevenson
LONG TITLE
General Description:
This bill modifies provisions related to public funds.
Highlighted Provisions:
This bill:
changes the name of:
the Agriculture Conservation Easement Account; and
the LeRay McAllister Working Farm and Ranch Fund;
repeals the following accounts and funds, including related references:
the Navajo Water Rights Negotiation Account;
the Conversion to Alternative Fuel Grant Program Fund, including the Conversion to
Alternative Fuel Grant Program;
the Wildlife Resources Conservation Easement Account;
the Wild Game Meat Donation Fund; and
the Colorado River Authority Restricted Account;
modifies the permissible uses of funds in the Department of Public Safety Restricted
Account;
clarifies that an agency that administers a state grant on another agency's behalf shall
comply with the applicable grant requirements;
clarifies that the state auditor may audit grant funds in accordance with the state auditor's
authority;
for a direct award grant, prohibits an administering agency from using grant funds to
administer the grant, unless otherwise provided in the grant appropriation's intent
language;
modifies certain reporting requirements for a competitive grant;
provides that a member of the Board of Examiners is disqualified from reviewing a line
item overexpenditure report if the line item is part of the member's office's budget;
allows an agency to expend up to 100% of the dedicated credits revenue that the agency
receives in excess of the amount appropriated, if the dedicated credits are appropriated
to a specified type of fund;
amends the administration of the Industrial Assistance Account (account) by:
replacing the annual transfer to the account with an annual set aside; and
directing the GOEO board to make recommendations to the administrator regarding
applications for loans, grants, or other financial assistance from the account;
addresses the state auditor's authority related to:
expenses and personnel; and
performing audits of funds and accounts to determine compliance with the law;
creates the Energy Development Infrastructure Fund to make loans to public entities to
finance infrastructure development that supports nuclear power generation and
transmission in the state;
changes the Electrical Energy Development Investment Fund from an expendable special
revenue fund to a special revenue fund and makes appropriations from the fund
nonlapsing;
modifies the permissible uses of the Electrical Energy Development Investment Fund;
makes technical and conforming changes; and
includes a coordination clause that makes technical changes if this bill and H.B. 473,
Colorado River Authority Amendments, both pass and become law.
Money Appropriated in this Bill:
This bill appropriates
($5,000,000)
in operating and capital budgets for fiscal year 2026,
all of which is from the General Fund.
This bill appropriates
$5,000,000
in business-like activities for fiscal year 2026, all of which is
from the General Fund.
This bill appropriates
$1,638,500
in operating and capital budgets for fiscal year 2027, all of
which is from the General Fund.
This bill appropriates
($1,638,500)
in restricted fund and account transfers for fiscal year 2027,
all of which is from the General Fund.
Other Special Clauses:
This bill provides a special effective date.
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
4-46-102
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 16
4-46-202
Effective
07/01/26
Repealed
07/01/27
, as last amended by Laws of Utah
2023, Chapter 180
4-46-301
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 143
4-46-302
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 15
4-46-303
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 271
4-46-304
Effective
07/01/26
Partially Repealed
07/01/27
, as last amended by Laws of
Utah 2025, Chapter 91
4-46-401
Effective
07/01/26
Partially Repealed
07/01/27
, as last amended by Laws of
Utah 2023, Chapter 34
17-81-501
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 14
39A-8-104
Effective
07/01/26
, as last amended by Laws of Utah 2023, Chapter 180
53-3-106
Effective
07/01/26
, as last amended by Laws of Utah 2024, Chapter 134
63C-25-101
Effective
07/01/26
Repealed
07/01/27
, as last amended by Laws of Utah
2025, Chapter 105
63G-6b-101
Effective
07/01/26
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-201
Effective
07/01/26
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-301
Effective
07/01/26
, as enacted by Laws of Utah 2024, Chapter 300
63G-6b-401
Effective
07/01/26
, as enacted by Laws of Utah 2024, Chapter 300
63G-9-201
Effective
07/01/26
, as last amended by Laws of Utah 2023, Chapter 16
63G-9-301
Effective
07/01/26
, as last amended by Laws of Utah 2009, Chapter 183
63I-1-223
Effective
07/01/26
, as last amended by Laws of Utah 2024, Third Special
Session, Chapter 5
63I-2-263
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapters 182,
273 and 277
63J-1-105
Effective
07/01/26
, as last amended by Laws of Utah 2021, Chapter 382
63J-1-217
Effective
07/01/26
, as last amended by Laws of Utah 2022, Chapter 456
63J-1-602.1
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
63J-1-602.2
Effective
07/01/26
Partially Repealed
07/01/29
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 17
63M-14-102
Effective
07/01/26
, as enacted by Laws of Utah 2021, Chapter 179
63N-3-103
Effective
07/01/26
, as last amended by Laws of Utah 2021, Chapter 282
63N-3-105
Effective
07/01/26
, as last amended by Laws of Utah 2024, Chapter 159
63N-3-106
Effective
07/01/26
, as last amended by Laws of Utah 2025, Chapter 113
67-3-1
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 17
79-6-1105
Effective
07/01/26
, as enacted by Laws of Utah 2025, Chapter 375
79-6-1106
Effective
07/01/26
, as enacted by Laws of Utah 2025, Chapter 375
ENACTS:
79-6-410
Effective
07/01/26
, Utah Code Annotated 1953
REPEALS:
19-2-301
Effective
07/01/26
Repealed
07/01/29
, as enacted by Laws of Utah 2015,
Chapter 381
19-2-302
Effective
07/01/26
Repealed
07/01/29
, as last amended by Laws of Utah
2016, Chapter 369
19-2-303
Effective
07/01/26
Repealed
07/01/29
, as last amended by Laws of Utah
2016, Chapter 369
19-2-304
Effective
07/01/26
Repealed
07/01/29
, as last amended by Laws of Utah
2016, Chapter 369
23A-3-204
Effective
07/01/26
Partially Repealed
07/01/27
, as renumbered and
amended by Laws of Utah 2023, Chapter 103
23A-3-206
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2023,
Chapter 103
51-9-701
Effective
07/01/26
, as enacted by Laws of Utah 2012, Chapter 276
51-9-702
Effective
07/01/26
, as last amended by Laws of Utah 2021, Chapter 412
63M-14-501
Effective
07/01/26
, as enacted by Laws of Utah 2021, Chapter 179

Utah Code Sections Affected by Coordination Clause:
UNCODIFIED MATERIAL
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
4-46-102
is amended to read:
4-46-102
Effective
07/01/26
. Definitions.
As used in this chapter:
(1)
"Account" means the LeRay McAllister Working Farm and Ranch Account created in
Section
4-46-301
.
(2)
"Agricultural land" means "land in agricultural use," as defined in Section
59-2-502
.
(2)
(3)
"Board" means the Land Conservation Board established in Section
4-46-201
.
(3)
(4)
"Conservation commission" means the Conservation Commission created in
Section
4-18-104
.
(4)
(5)
"Conservation district" means a limited purpose local government entity created
under
Title 17D, Chapter 3, Conservation District Act
.
(5)
(6)
"Director" means the director of the Division of Conservation.
(6)
(7)
"Division" means the Division of Conservation created in Section
4-46-401
.
(7)
"Fund" means the LeRay McAllister Working Farm and Ranch Fund created in Section
4-46-301
.
(8)
"Land use authority" means:
(a)
a land use authority, as defined in Section
10-20-102
, of a municipality; or
(b)
a land use authority, as defined in Section
17-79-102
, of a county.
(9)
"Local entity" means a county, city, or town.
(10)
(a)
"Open land" means land that is:
(i)
preserved in or restored to a predominantly natural, open, and undeveloped
condition; and
(ii)
used for:
(A)
wildlife habitat;
(B)
cultural or recreational use;
(C)
watershed protection; or
(D)
another use consistent with the preservation of the land in, or restoration of
the land to, a predominantly natural, open, and undeveloped condition.
(b)
"Open land" includes land described in Subsection
(10)(a)
that contains facilities,
including trails, waterways, and grassy areas, that:
(i)
enhance the natural, scenic, or aesthetic qualities of the land; or
(ii)
facilitate the public's access to or use of the land for the enjoyment of the land's
natural, scenic, or aesthetic qualities and for compatible recreational activities.
(c)
"Open land" does not include land whose predominant use is as a developed facility
for active recreational activities, including baseball, tennis, soccer, golf, or other
sporting or similar activities.
(11)
(a)
"State conservation efforts" includes:
(i)
efforts to optimize and preserve the uses of land for the benefit of the state's
agricultural industry and natural resources; and
(ii)
conservation of working landscapes that if conserved, preserves the state's
agricultural industry and natural resources, such as working agricultural land.
(b)
"State conservation efforts" does not include the purpose of opening private property
to public access without the consent of the owner of the private property.
(12)
(a)
"Working agricultural land" means agricultural land for which an owner or
producer engages in the activity of producing for commercial purposes crops,
orchards, livestock, poultry, aquaculture, livestock products, or poultry products and
the facilities, equipment, and property used to facilitate the activity.
(b)
"Working agricultural land" includes an agricultural protection area established
under Title
17, Chapter 81
, Agriculture, Industrial, and Critical Infrastructure
Materials.
Section 2. Section
4-46-202
is amended to read:
4-46-202
Effective
07/01/26
Repealed
07/01/27
. Board duties and powers -- No
regulatory authority -- Criteria.
(1)
The board shall:
(a)
administer the
fund
account
as provided in this chapter; and
(b)
fulfill other responsibilities imposed on the board by the Legislature.
(2)
The board may not exercise any regulatory authority.
(3)
In carrying out the board's powers and duties under this chapter, the board shall adopt
ranking criteria that is substantially similar to the ranking criteria used by the
Agriculture Conservation Easement Program and Agriculture Land Easement as
determined by the Natural Resources Conservation Service under the United States
Department of Agriculture.
Section 3. Section
4-46-301
is amended to read:
3. LeRay McAllister Working Farm and Ranch Account
4-46-301
Effective
07/01/26
. LeRay McAllister Working Farm and Ranch
Account.
(1)
There is created a restricted account within the General Fund entitled the "LeRay
McAllister Working Farm and Ranch
Fund
Account
."
(2)
The LeRay McAllister Working Farm and Ranch
Fund
Account
shall consist of:
(a)
appropriations by the Legislature;
(b)
grants from federal or private sources;
(c)
revenue paid in accordance with Section
59-2-506
,
59-2-511
,
59-2-1705
, or
59-2-1710
; and
(d)
interest and earnings from the account.
(3)
The Land Conservation Board created in Section
4-46-201
may use appropriations from
the
fund
account
in accordance with Section
4-46-302
.
Section 4. Section
4-46-302
is amended to read:
4-46-302
Effective
07/01/26
. Program -- Use of money in account -- Criteria --
Administration.
(1)
Subject to Subsection
(2)
, the board shall administer the LeRay McAllister Working
Farm and Ranch
Fund
Account
Program under which the board may authorize the use
of money in the fund, by grant, to:
(a)
a local entity;
(b)
the Department of Natural Resources created under Section
79-2-201
;
(c)
an entity within the department; or
(d)
a charitable organization that qualifies as being tax exempt under Section 501(c)(3),
Internal Revenue Code.
(2)
(a)
The money in the
fund
account
shall be used for preserving or restoring open
land and agricultural land.
(b)
Except as provided in Subsection
(2)(c)
, money from the
fund
account
:
(i)
may be used to:
(A)
establish a conservation easement under Title
57, Chapter 18
, Land
Conservation Easement Act; or
(B)
fund similar methods to preserve open land or agricultural land; and
(ii)
may not be used to purchase a fee interest in real property to preserve open land
or agricultural land.
(c)
Money from the
fund
account
may be used to purchase a fee interest in real property
to preserve open land or agricultural land if:
(i)
the property to be purchased is no more than 20 acres in size; and
(ii)
with respect to a parcel purchased in a county in which over 50% of the land area
is publicly owned, real property roughly equivalent in size and located within that
county is contemporaneously transferred to private ownership from the
governmental entity that purchased the fee interest in real property.
(d)
Eminent domain may not be used or threatened in connection with any purchase
using money from the
fund
account
.
(e)
A parcel of land larger than 20 acres in size may not be divided to create one or more
parcels that are smaller than 20 acres in order to comply with Subsection
(2)(c)(i)
.
(f)
A local entity, department, or organization under Subsection
(1)
may not receive
money from the
fund
account
unless the local entity, department, or organization
provides matching funds equal to or greater than the amount of money received from
the
fund
account
.
(g)
In granting money from the
fund
account
, the board may impose conditions on the
recipient as to how the money is to be spent.
(h)
The board shall give priority to:
(i)
working agricultural land; and
(ii)
after giving priority to working agricultural land under Subsection
(2)(h)(i)
,
requests from the Department of Natural Resources for up to 20% of each annual
increase in the amount of money in the
fund
account
if the money is used for the
protection of wildlife or watershed.
(i)
(i)
The board may not make a grant from the
fund
account
that exceeds
$1,000,000 until after making a report to the Legislative Management Committee
about the grant.
(ii)
The Legislative Management Committee may make a recommendation to the
board concerning the intended grant, but the recommendation is not binding on
the board.
(3)
In determining the amount and type of financial assistance to provide a local entity,
department, or organization under Subsection
(1)
and subject to Subsection
(2)(i)
, the
board shall consider:
(a)
the nature and amount of open land and agricultural land proposed to be preserved or
restored;
(b)
the qualities of the open land and agricultural land proposed to be preserved or
restored;
(c)
the cost effectiveness of the project to preserve or restore open land or agricultural
land;
(d)
the funds available;
(e)
the number of actual and potential applications for financial assistance and the
amount of money sought by those applications;
(f)
the open land preservation plan of the local entity where the project is located and the
priority placed on the project by that local entity;
(g)
the effects on housing affordability and diversity; and
(h)
whether the project protects against the loss of private property ownership.
(4)
If a local entity, department, or organization under Subsection
(1)
seeks money from the
fund
account
for a project whose purpose is to protect critical watershed, the board shall
require that the needs and quality of that project be verified by the state engineer.
(5)
An interest in real property purchased with money from the
fund
account
shall be held
and administered by the state or a local entity.
(6)
(a)
The board may not authorize the use of money under this section for a project
unless the land use authority for the land in which the project is located consents to
the project.
(b)
(i)
To obtain consent to a project, the person who is seeking money from the
fund
account
shall submit a request for consent to a project with the applicable land use
authority.
(ii)
The land use authority may grant or deny consent.
(iii)
If the land use authority does not take action within 60 days from the day on
which the request for consent is filed with the land use authority under this
Subsection
(6)
, the board shall treat the project as having the consent of the land
use authority.
(c)
An action of a land use authority under this Subsection
(6)
is not a land use decision
subject to:
(i)
Title
10, Chapter 20
, Municipal Land Use, Development, and Management Act; or
(ii)
Title
17, Chapter 79
, County Land Use, Development, and Management Act.
Section 5. Section
4-46-303
is amended to read:
4-46-303
Effective
07/01/26
. Board to report annually.
The board shall submit an annual report to the Transportation and Infrastructure and
Natural Resources, Agriculture, and Environmental Quality Appropriations Subcommittees:
(1)
specifying the amount of each disbursement from the
fund
account
;
(2)
identifying the recipient of each disbursement and describing the project for which
money was disbursed; and
(3)
detailing the conditions, if any, placed by the board on disbursements from the
fund
account
.
Section 6. Section
4-46-304
is amended to read:
4-46-304
Effective
07/01/26
Partially Repealed
07/01/27
. Agriculture
Conservation Easement Fund.
(1)
There is created an expendable special revenue fund known as the Agriculture
Conservation Easement
Account
Fund
.
(2)
The Agriculture Conservation Easement
Account
Fund
consists of:
(a)
conservation easement stewardship fees;
(b)
grants from private foundations;
(c)
grants from local governments, the state, or the federal government;
(d)
grants from the Land Conservation Board created under Section
4-46-201
;
(e)
donations from landowners for monitoring and enforcing compliance with
conservation easements;
(f)
donations from any other person; and
(g)
interest on
account
fund
money.
(3)
The department shall use money from the
account
fund
to monitor and enforce
compliance with conservation easements held by the department.
(4)
The department may not receive or expend donations from the
account
fund
to acquire
conservation easements.
Section 7. Section
4-46-401
is amended to read:
4-46-401
Effective
07/01/26
Partially Repealed
07/01/27
. Division of
Conservation created -- Director.
(1)
Within the department there is created the Division of Conservation.
(2)
(a)
The director is the executive and administrative head of the division.
(b)
The director shall administer this part subject to the administration and general
supervision of the commissioner.
(3)
The division shall coordinate state conservation efforts by:
(a)
staffing the board created in Section
4-46-201
;
(b)
coordinating with a conservation district in accordance with Section
4-46-402
;
(c)
coordinating with an agency or division within the department, the Department of
Natural Resources, other state agencies, counties, cities, towns, local land trust
entities, and federal agencies;
(d)
facilitating obtaining federal funds in addition to state funds used for state
conservation efforts;
(e)
monitoring and providing for the management of conservation easements on state
lands
, including coordination with the Division of Wildlife Resources in the
Division of Wildlife Resources' administration of Section
23A-3-204
; and
(f)
implementing rules made by the department in accordance with
Title 63G, Chapter 3,
Utah Administrative Rulemaking Act
, and Section
4-46-403
.
(4)
The division may cooperate with, or enter into agreements with, other agencies of this
state and federal agencies in the administration and enforcement of this chapter.
Section 8. Section
17-81-501
is amended to read:
17-81-501
Effective
07/01/26
. Use of money -- Criteria -- Administration.
(1)
The county treasurer shall deposit 100% of the rollback tax funds into an account or
fund of the county set aside for preserving or restoring open land and agricultural land.
(2)
The rollback funds:
(a)
may be used to establish a conservation easement under
Title 57, Chapter 18, Land
Conservation Easement Act
, or to fund similar methods to preserve open land or
agricultural land; and
(b)
if the property to be purchased is in a public land county, may not be used to
purchase a fee interest in real property to preserve open land or agricultural land,
unless, the governmental entity purchasing the property contemporaneously transfers
to the private ownership real property, in the same public land county, that is roughly
equivalent in size to the property to be purchased.
(3)
Eminent domain may not be used or threatened in connection with any purchase using
the rollback tax funds.
(4)
The funds collected by the account or fund of the county may roll over from
year-to-year, except that if the county does not spend, or obligate, 100% of the rollback
tax funds for a purpose described in Subsection
(2)
within 10 years after the year in
which the county collects the rollback tax funds, the county shall pay the balance to the
LeRay McAllister Working Farm and Ranch
Fund
Account
created in Section
4-46-301
.
Section 9. Section
39A-8-104
is amended to read:
39A-8-104
Effective
07/01/26
. Committee responsibilities.
(1)
The committee shall:
(a)
identify lands to be included in the designated sentinel landscape;
(b)
develop strategies and recommendations to encourage landowners within the sentinel
landscape to voluntarily participate in and begin or continue land uses compatible
with Camp Williams's military mission; and
(c)
publish any policies and procedures as administrative rules in accordance with
Title
63G, Chapter 3, Utah Administrative Rulemaking Act
.
(2)
In designating sentinel lands, the coordinating committee shall include all working or
natural lands that the coordinating committee believes contribute to the long-term
sustainability of the military missions conducted at Camp Williams.
(3)
The committee shall determine the appropriate level of state resources required to
adequately protect Camp Williams's military mission and may apply for grants from the
LeRay McAllister Working Farm and Ranch
Fund
Account
to aid in securing those
resources.
(4)
In determining lands to designate, the coordinating committee shall seek input from:
(a)
the director of the Department of Defense Readiness and Environmental Protection
Integration Program; and
(b)
the director of the National Guard Bureau Army Compatible Use Buffer Program, as
authorized under 10 U.S.C. Sec. 2684(a).
(5)
The committee shall provide a written report of its activities if state funds are expended
during the previous calendar year no later than July 31 annually to:
(a)
the governor;
(b)
the Government Operations Interim Committee; and
(c)
the Executive Appropriations Committee.
Section 10. Section
53-3-106
is amended to read:
53-3-106
Effective
07/01/26
. Disposition of revenues under this chapter --
Restricted account created -- Uses as provided by appropriation -- Nonlapsing.
(1)
There is created within the Transportation Fund a restricted account known as the
"Department of Public Safety Restricted Account."
(2)
The account consists of money generated from the following revenue sources:
(a)
all money received under this chapter;
(b)
administrative fees received according to the fee schedule authorized under this
chapter and Section
63J-1-504
;
(c)
beginning on January 1, 2013, money received in accordance with Section
41-1a-1201
; and
(d)
any appropriations made to the account by the Legislature.
(3)
(a)
The account shall earn interest.
(b)
All interest earned on account money shall be deposited into the account.
(4)
The expenses of the department in carrying out this chapter shall be provided for by
legislative appropriation from this account.
(5)
Subject to legislative appropriation, money in the account may be used to pay for costs
associated with law enforcement training facilities.
(5)
(6)
The amount in excess of $45 of the fees collected under Subsection
53-3-105(27)

shall be appropriated by the Legislature from this account to the department to
implement the provisions of Section
53-1-117
, except that of the amount in excess of
$45, $100 shall be deposited into the State Laboratory Drug Testing Account created in
Section
26B-1-304
.
(6)
(7)
All money received under Subsection
41-6a-1406(7)(b)(ii)
shall be appropriated by
the Legislature from this account to the department to implement the provisions of
Section
53-1-117
.
(7)
(8)
Beginning in fiscal year 2009-10, the Legislature shall appropriate $100,000
annually from the account to the state medical examiner appointed under Section
26B-8-202
for use in carrying out duties related to highway crash deaths under
Subsection
26B-8-205(1)
.
(8)
(9)
The division shall remit the fees collected under Subsection
53-3-105(31)
to the
Bureau of Criminal Identification to cover the costs for the services the Bureau of
Criminal Identification provides under Section
53-3-205.5
.
(9)
(10)
(a)
Beginning on January 1, 2013, the Legislature shall appropriate all money
received in the account under Section
41-1a-1201
to the Utah Highway Patrol
Division for field operations.
(b)
The Legislature may appropriate additional money from the account to the Utah
Highway Patrol Division for law enforcement purposes.
(10)
(11)
Appropriations to the department from the account are nonlapsing.
(11)
(12)
The department shall report to the Department of Health and Human Services, on
or before December 31, the amount the department expects to collect under Subsection
53-3-105(27)
in the next fiscal year.
Section 11. Section
63C-25-101
is amended to read:
63C-25-101
Effective
07/01/26
Repealed
07/01/27
. Definitions.
As used in this chapter:
(1)
"Authority" means the same as that term is defined in Section
63B-1-303
.
(2)
"Bond" means the same as that term is defined in Section
63B-1-101
.
(3)
(a)
"Bonding government entity" means the state or any entity that is authorized to
issue bonds under any provision of state law.
(b)
"Bonding government entity" includes:
(i)
a bonding political subdivision; and
(ii)
a public infrastructure district that is authorized to issue bonds either directly, or
through the authority of a bonding political subdivision or other governmental
entity.
(4)
"Bonding political subdivision" means:
(a)
the Utah Inland Port Authority, created in Section
11-58-201
;
(b)
the Military Installation Development Authority, created in Section
63H-1-201
;
(c)
the Point of the Mountain State Land Authority, created in Section
11-59-201
;
(d)
the Utah Lake Authority, created in Section
11-65-201
;
(e)
the State Fair Park Authority, created in Section
11-68-201
; or
(f)
the Utah Fairpark Area Investment and Restoration District, created in Section
11-70-201
.
(5)
"Commission" means the State Finance Review Commission created in Section
63C-25-201
.
(6)
"Concessionaire" means a person who:
(a)
operates, finances, maintains, or constructs a government facility under a contract
with a bonding political subdivision; and
(b)
is not a bonding government entity.
(7)
"Concessionaire contract" means a contract:
(a)
between a bonding government entity and a concessionaire for the operation, finance,
maintenance, or construction of a government facility;
(b)
that authorizes the concessionaire to operate the government facility for a term of
five years or longer, including any extension of the contract; and
(c)
in which all or some of the annual source of payment to the concessionaire comes
from state funds provided to the bonding government entity.
(8)
"Creating entity" means the same as that term is defined in Section
17D-4-102
.
(9)
"Government facility" means infrastructure, improvements, or a building that:
(a)
costs more than $5,000,000 to construct; and
(b)
has a useful life greater than five years.
(10)
"Large public transit district" means the same as that term is defined in Section
17B-2a-802
.
(11)
"Loan entity" means the board, person, unit, or agency with legal responsibility for
making a loan from a revolving loan fund.
(12)
"Obligation" means the same as that term is defined in Section
63B-1-303
.
(13)
"Parameters resolution" means a resolution of a bonding government entity that sets
forth for proposed bonds:
(a)
the maximum:
(i)
amount of bonds;
(ii)
term; and
(iii)
interest rate; and
(b)
the expected security for the bonds.
(14)
"Public infrastructure district" means a public infrastructure district created under Title
17D, Chapter 4, Public Infrastructure District Act.
(15)
"Revolving loan fund" means:
(a)
the Water Resources Conservation and Development Fund, created in Section
73-10-24
;
(b)
the Water Resources Construction Fund, created in Section
73-10-8
;
(c)
the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean Fuels
and Emission Reduction Technology Program Act;
(d)
the Water Development Security Fund and its subaccounts, created in Section
73-10c-5
;
(e)
the Agriculture Resource Development Fund, created in Section
4-18-106
;
(f)
the Utah Rural Rehabilitation Fund, created in Section
4-19-105
;
(g)
the Permanent Community Impact Fund, created in Section
35A-8-303
;
(h)
the Petroleum Storage Tank Fund, created in Section
19-6-409
;
(i)
the School Building Revolving Account, created in Section
53F-9-206
;
(j)
the State Infrastructure Bank Fund, created in Section
72-2-202
;
(k)
the Uintah Basin Revitalization Fund, created in Section
35A-8-1602
;
(l)
the Navajo Revitalization Fund, created in Section
35A-8-1704
;
(m)
the Energy Efficiency Fund, created in Section
11-45-201
;
(n)
the Brownfields Fund, created in Section
19-8-120
;
(o)
any of the enterprise revolving loan funds created in Section
63A-3-402
: and
63A-3-402
;
(p)
the Energy Development Infrastructure Fund, created in Section
79-6-410
; and
(p)
(q)
any other revolving loan fund created in statute where the borrower from the
revolving loan fund is a public non-profit entity or political subdivision, including a
fund listed in Section
63A-3-205
, from which a loan entity is authorized to make a
loan.
(16)
(a)
"State funds" means an appropriation by the Legislature identified as coming
from the General Fund or Education Fund.
(b)
"State funds" does not include:
(i)
a revolving loan fund; or
(ii)
revenues received by a bonding political subdivision from:
(A)
a tax levied by the bonding political subdivision;
(B)
a fee assessed by the bonding political subdivision; or
(C)
operation of the bonding political subdivision's government facility.
Section 12. Section
63G-6b-101
is amended to read:
63G-6b-101
Effective
07/01/26
. Definitions.
As use in this chapter:
(1)
(a)
"Administering agency" means a state agency that administers a grant.
(b)
"Administering agency" includes a state agency that wholly or partially administers a
grant on another state agency's behalf.
(2)
"Competitive grant" means a grant that is not a direct award grant.
(3)
"Direct award grant" means a grant that is funded by money that the Legislature intends
the state agency to pass through to one or more recipients without a competitive process.
(4)
(a)
"Grant" means a state agency's expenditure of state money, or agreement to
expend state money, that is:
(i)
authorized by law;
(ii)
made for a particular purpose; and
(iii)
made without acquiring, or the promise of acquiring, a procurement item in
exchange for the expenditure.
(b)
"Grant" does not include:
(i)
a tax credit;
(ii)
an expenditure of federal money;
(iii)
public assistance, as defined in Section
26B-9-101
;
(iv)
a loan;
(v)
a rebate;
(vi)
an incentive; or
(vii)
a claim payment.
(5)
"Grant agreement" means the agreement between an administering agency and a grant
recipient described in Subsection
63G-6b-201(4)
.
(5)
(6)
"Grant appropriation" means an appropriation the Legislature makes to an
administering agency to be used for one or more grants.
(6)
(7)
"Grant period" means the time frame during which a grant recipient receives funds
from a single grant.
(7)
(8)
"Multi-year grant" means a grant for which the grant period exceeds one year.
(8)
(9)
"Nonprofit entity" means an entity that:
(a)
operates in the state;
(b)
is not a government entity; and
(c)
is exempt from federal income taxation under Section 501(c)(3), Internal Revenue
Code.
(9)
(10)
"Procurement item" means the same as that term is defined in Section
63G-6a-103
.
(10)
(11)
(a)
"State agency" means a department, division, or other agency or
instrumentality of the state.
(b)
"State agency" does not include the legislative department.
(11)
(12)
"State money" means money that is derived from state fees or state tax revenue.
Section 13. Section
63G-6b-201
is amended to read:
63G-6b-201
Effective
07/01/26
. Requirements for all grants.
(1)
(a)
An administering agency shall disburse grant funds in accordance with this
Subsection
(1)
.
(b)
Before an administering agency disburses a grant's grant funds, the administering
agency shall ensure that the grant recipient provides a detailed budget demonstrating
how the grant recipient will use the grant funds.
(c)
An administering agency shall establish a distribution schedule that ensures
accountability and responsible oversight of the use of the grant funds.
(d)
An administering agency may not:
(i)
disburse all grant funds in a single payment, unless the administering agency
makes the single payment after the grant recipient satisfies the grant recipient's
performance obligations under the
agreement described in Subsection (4)
grant
agreement
; or
(ii)
make a grant recipient's final disbursement before the grant recipient delivers the
report described in Subsection
(3)
.
(2)
For a multi-year grant:
(a)
the grant period may not exceed five years; and
(b)
in the final quarter of each year of the grant period, excluding the final year, the grant
recipient shall deliver to the administering agency a report that details the grant
recipient's progress towards fulfilling the grant's purpose, including the annual
deliverables and performance metrics described in the
agreement made in
accordance with Subsection (4)
grant agreement
.
(3)
An administering agency may not make the final grant funds disbursement until:
(a)
the grant recipient delivers to the administering agency a final report that details the
extent to which the grant recipient fulfilled the grant's purpose, including the
deliverables and performance metrics described in the
agreement made in
accordance with Subsection (4)
grant agreement
; and
(b)
the administering agency determines that the grant recipient satisfactorily produced
each deliverable provided in the
agreement described in Subsection (4)
grant
agreement
.
(4)
Except as otherwise provided in the grant appropriation and consistent with the other
provisions of this section, an administering agency may not disburse grant funds to a
grant recipient before the administering agency and the grant recipient execute an
agreement that contains:
(a)
the disbursement schedule for the grant funds;
(b)
the deliverables, reporting, and performance metrics the grant recipient will produce
and use to demonstrate that the grant recipient used the grant funds to fulfill the
grant's purpose;
(c)
if the grant is a multi-year grant, annual deliverables and performance metrics the
grant recipient will produce and use to demonstrate sufficient progress towards
fulfilling the grant's purpose;
(d)
a provision informing the grant recipient that disbursement of grant funds is subject
to legislative appropriation; and
(e)
the grant recipient's consent to follow-up audit and clawback of the grant funds if an
audit shows that the grant funds were inappropriately used.
(5)
(a)
In accordance with Utah Constitution, Article VI, Section 33, the legislative
auditor general may audit the use of any grant funds.
(b)
The state auditor may audit grant funds as provided in Utah Constitution, Article VII,
Section 15.
Section 14. Section
63G-6b-301
is amended to read:
63G-6b-301
Effective
07/01/26
. Direct award grant requirements.
(1)
(a)
A direct award grant is valid only if the direct award grant's grant appropriation
identifies the recipient or class of recipients in the grant appropriation's intent
language.
(b)
For a grant appropriation that is an ongoing appropriation to fund a multi-year grant,
the requirement to identify the recipient or class of recipients applies each fiscal year.
(2)
If the intent language for a direct award grant's grant appropriation provides a
disbursement schedule that is inconsistent with the
schedule described in Section
63G-6b-202
requirements described in Section
63G-6b-201
, for the fiscal year in which
the grant appropriation is made, the schedule in the intent language controls.
(3)
An administering agency may not use any portion of a direct award grant's grant
appropriation to pay costs of administering the grant, unless otherwise provided in the
grant appropriation's intent language.
Section 15. Section
63G-6b-401
is amended to read:
63G-6b-401
Effective
07/01/26
. Competitive grant requirements.
(1)
(a)
For a competitive grant, the administering agency shall:
(i)
establish a competitive application and selection process; and
(ii)
award each competitive grant in accordance with the established process.
(b)
As part of the competitive application process, the administering agency shall require
that each applicant disclose all other state funding the applicant receives.
(2)
Except as otherwise provided in the grant appropriation's intent language, an
administering agency may not award a competitive grant to a recipient who has received
a direct award grant if:
(a)
the direct award grant is for substantially the same purpose as the competitive grant;
and
(b)
the direct award grant's grant period and the competitive grant's grant period overlap.
(3)
After
If directed in the grant appropriation's intent language, after
an administering
agency completes a competitive application process for a competitive grant but before
the administering agency awards the grant, the administering agency shall report each
grant recipient to the legislative fiscal analyst and the Governor's Office of Planning and
Budget.
Section 16. Section
63G-9-201
is amended to read:
63G-9-201
Effective
07/01/26
. Members -- Functions.
(1)
As used in this chapter:
(a)
"Political subdivision" means any county, city, town, school district, community
reinvestment agency, special improvement or taxing district, special district, special
service district, an entity created by an interlocal agreement adopted under
Title 11,
Chapter 13, Interlocal Cooperation Act
, or other governmental subdivision or public
corporation.
(b)
"State" means the state of Utah, and includes each office, department, division,
agency, authority, commission, board, institution, college, university, Children's
Justice Center, or other instrumentality of the state.
(2)
The
Subject to Section
63G-9-301
, the
governor, the state auditor, and the attorney
general shall constitute a Board of Examiners, with power to examine all claims against
the state or a political subdivision, for the payment of which funds appropriated by the
Legislature or derived from any other source are not available.
(3)
No claim against the state or a political subdivision, for the payment of which
specifically designated funds are required to be appropriated by the Legislature shall be
passed upon by the Legislature without having been considered and acted upon by the
Board of Examiners.
(4)
The governor shall be the president, and the state auditor shall be the secretary of the
board, and in the absence of either an officer pro tempore may be elected from among
the members of the board.
Section 17. Section
63G-9-301
is amended to read:
63G-9-301
Effective
07/01/26
. Audit and approval of claims -- Overexpenditure
by agencies.
(1)
(a)
The Board of Examiners shall audit any claim presented to it, if the settlement of
the claim is required by law.
(b)
If the claim is approved, the board shall transmit it to the Legislature with a
statement of the reasons for the approval.
(2)
(a)
When an agency's line item appropriation has been overexpended and a written
report is submitted to the board as required by Section
63J-1-217
, the board shall
review the report and either:
(a)
(i)
recommend and submit to the Legislature any supplemental appropriations or
corrective legislation that may be needed; or
(b)
(ii)
recommend other internal procedures or policies that will make an
overexpenditure in the future unlikely.
(b)
(i)
A member of the board may not participate in the board's review of a report
under this Subsection
(2)
if the overexpended line item that is in the report
belongs to the member's office.
(ii)
When a member is disqualified under Subsection
(2)(b)(i)
, the state treasurer shall
serve in the disqualified member's position for purposes of performing the board's
duties related to the report.
Section 18. Section
63I-1-223
is amended to read:
63I-1-223
Effective
07/01/26
. Repeal dates: Title 23A.
(1)
Section
23A-2-302
, Wildlife Board Nominating Committee created, is repealed July 1,
2028.
(2)
Section
23A-2-303
, Regional advisory councils created, is repealed July 1, 2028.
(3)
Subsection
23A-3-204
(2)(c), regarding the Land Conservation Board, is repealed July
1, 2027.
Section 19. Section
63I-2-263
is amended to read:
63I-2-263
Effective
07/01/26
. Repeal dates: Titles 63A through 63O.
(1)
Title 63A, Chapter 2, Part 5, Educational Interpretation and Translation Services
Procurement Advisory Council is repealed July 1, 2025.
(2)
Section
63A-5b-807
, Eminent domain of unincorporated city owned land, is repealed
January 1, 2027.
(3)
Section
63A-17-806
, Definitions -- Infant at Work Pilot Program -- Administration --
Report, is repealed June 30, 2026.
(4)
Section
63C-1-103
, Appointment and terms of boards, committees, councils, and
commissions transitioning on October 1, 2024, or December 31, 2024, is repealed July
1, 2025.
(5)
Section
63C-1-104
, Appointment and terms of boards transitioning on October 1, 2024,
is repealed January 1, 2025.
(6)
Subsection
63G-6a-802(1)(e)
, regarding a procurement for a presidential debate, is
repealed January 1, 2025.
(7)
Subsection
63G-6a-802(3)(b)(iii)
, regarding a procurement for a presidential debate, is
repealed January 1, 2025.
(8)
Subsection
63H-7a-403(2)(b)
, regarding the charge to maintain the public safety
communications network, is repealed July 1, 2033.
(9)
Subsection
63J-1-602.2(30)
, regarding funding the Enterprise Zone Act, is repealed
December 31, 2026.
(10)
Subsection
63J-1-602.2(46)
63J-1-602.2(45)
, regarding appropriations to the State
Tax Commission for deferral reimbursements, is repealed July 1, 2027.
(11)
Section
63M-7-221
, Expungement working group, is repealed April 30, 2025.
(12)
Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed December 31, 2026.
Section 20. Section
63J-1-105
is amended to read:
63J-1-105
Effective
07/01/26
. Revenue types -- Disposition of dedicated credits
and expendable receipts.
(1)
(a)
Dedicated credits are subject to appropriations and the restrictions in this chapter.
(b)
An agency may expend dedicated credits for any purpose within the program or line
item.
(2)
Except as provided in Subsections
(3)
and
(4)
, an agency may not expend dedicated
credits in excess of the amount appropriated to a line item as dedicated credits by the
Legislature.
(3)
Each agency that receives dedicated credits revenue greater than the amount
appropriated to a line item by the Legislature in the annual appropriations acts may
expend the excess up to 25% of the amount appropriated if the expenditure is included
in a revised budget execution plan submitted as provided in Section
63J-1-209
.
(4)
Notwithstanding the requirements of Subsection
(3)
, when an agency's dedicated
credits revenue represents over 90% of the budget of the line item for which the
dedicated credits are collected, the agency may expend 100% of the excess of the
amount appropriated if the agency submits a revised budget execution plan as provided
in Subsection
(3)
and Section
63J-1-209
.
(4)
Notwithstanding the requirements of Subsection
(3)
, an agency may expend up to 100%
of the excess of the amount appropriated if:
(a)
(i)
the agency's dedicated credits revenue represents over 90% of the budget of the
line item for which the dedicated credits are collected; and
(ii)
the agency submits a revised budget execution plan as provided in Subsection
(3)

and Section
63J-1-209
; or
(b)
the dedicated credits are appropriated to an expendable special revenue fund, a
proprietary fund, or a fiduciary fund.
(5)
An expenditure of dedicated credits in excess of amounts appropriated to a line item as
dedicated credits by the Legislature may not be used to permanently increase personnel
within the agency unless:
(a)
the increase is approved by the Legislature; or
(b)
the money is deposited as a dedicated credit in a line item covering tuition or federal
vocational funds at an institution of higher education.
(6)
(a)
All excess dedicated credits not received or expended in compliance with
Subsection
(3)
,
(4)
, or
(7)
lapse to the General Fund or other appropriate fund as free
or restricted revenue at the end of the fiscal year.
(b)
The Division of Finance shall determine the appropriate fund into which the
dedicated credits lapse.
(7)
(a)
When an agency has a line item that is funded by more than one major revenue
type, one of which is dedicated credits, the agency shall completely expend
authorized dedicated credits within the current fiscal year and allocate unused
spending authorization among other funding sources based upon a proration of the
amounts appropriated from each of those major revenue types not attributable to
dedicated credits, unless the Legislature has designated a portion of the dedicated
credits as nonlapsing, in which case the agency shall completely expend within the
current fiscal year authorized dedicated credits minus the portion of dedicated credits
designated as nonlapsing, and allocate unused spending authorization among the
other funding sources based upon a proration of the amounts appropriated from each
of those major revenue types not attributable to dedicated credits.
(b)
Nothing in Subsection
(7)(a)
shall be construed to allow an agency to receive and
expend dedicated credits in excess of legislative appropriations to a line item without
complying with Subsection
(3)
or
(4)
.
(c)
Each agency that receives dedicated credits shall report, to the Division of Finance,
any balances remaining in those funds at the conclusion of each fiscal year.
(8)
Each agency shall include in its annual budget request estimates of dedicated credits
revenue that is identified by, collected for, or set by the agency.
(9)
Each agency may expend expendable receipts in accordance with the terms set by a
nonstate entity that provides the funds.
(10)
(a)
Expendable receipts are not limited by appropriations.
(b)
Each agency that receives expendable receipts revenue greater than the amount
included for a line item by the Legislature in the annual appropriations acts may
expend the excess if the expenditure is included in a revised budget execution plan
submitted as provided in Section
63J-1-209
.
(c)
If an agency receives excess expendable receipts revenue that is more than 25%
greater than the amount included for a line item by the Legislature in the annual
appropriations acts, the agency shall report the excess amount, the source of the
expendable receipts, and the purpose for which the expendable receipts will be
expended to the Governor's Office of Planning and Budget, the legislative fiscal
analyst, and the Executive Appropriations Committee within 60 days of submitting a
revised budget execution plan as provided in Section
63J-1-209
.
Section 21. Section
63J-1-217
is amended to read:
63J-1-217
Effective
07/01/26
. Overexpenditure of budget by agency --
Prorating budget income shortfall.
(1)
Expenditures of departments, agencies, and institutions of state government shall be
kept within revenues available for such expenditures.
(2)
(a)
Line items of appropriation shall not be overexpended.
(b)
Notwithstanding Subsection
(2)(a)
, if an agency's line item is overexpended at the
close of a fiscal year:
(i)
the director of the Division of Finance may make payments from the line item to
vendors for goods or services that were received on or before June 30; and
(ii)
the director of the Division of Finance shall immediately reduce the agency's line
item budget in the current year by the amount of the overexpenditure.
(c)
Each agency with an overexpended line item shall:
(i)
prepare a written report explaining the reasons for the overexpenditure; and
(ii)
present the report to:
(A)
the Board of Examiners as required by Section
63G-9-301
; and
(B)
the Office of the Legislative Fiscal Analyst.
(3)
(a)
As used in this Subsection
(3)
:
(i)
" Income Tax Fund budget deficit" has the same meaning as in Section
63J-1-312
;
and
(ii)
"General Fund budget deficit" has the same meaning as in Section
63J-1-312
.
(b)
If an Income Tax Fund budget deficit or a General Fund budget deficit exists and the
adopted estimated revenues were prepared in consensus with the Governor's Office of
Planning and Budget, the governor shall:
(i)
direct state agencies to reduce commitments and expenditures by an amount
proportionate to the amount of the deficiency; and
(ii)
direct the Division of Finance to reduce allotments to institutions of higher
education by an amount proportionate to the amount of the deficiency.
(c)
The governor's directions under Subsection
(3)(b)
are rescinded when the Legislature
rectifies the Income Tax Fund budget deficit and the General Fund budget deficit.
(4)
(a)
A department may not receive an advance of funds that cannot be covered by
anticipated revenue within the budget execution plan of the fiscal year, unless the
governor allocates money from the governor's emergency appropriations.
(b)
All allocations made from the governor's emergency appropriations shall be reported
to
the budget subcommittee of
the Legislative Management Committee by notifying
the Office of the Legislative Fiscal Analyst at least 15 days before the effective date
of the allocation.
(c)
Emergency appropriations shall be allocated only to support activities having
existing legislative approval and appropriation, and may not be allocated to any
activity or function rejected directly or indirectly by the Legislature.
Section 22. Section
63J-1-602.1
is amended to read:
63J-1-602.1
Effective
07/01/26
. List of nonlapsing appropriations from
accounts and funds.
Appropriations made from the following accounts or funds are nonlapsing:
(1)
The Native American Repatriation Restricted Account created in Section
9-9-407
.
(2)
Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as
provided under Title
9, Chapter 23
, Pete Suazo Utah Athletic Commission Act.
(3)
Funds collected for directing and administering the C-PACE district created in Section
11-42a-106
.
(4)
Money received by the Utah Inland Port Authority, as provided in Section
11-58-105
.
(5)
The Commerce Electronic Payment Fee Restricted Account created in Section
13-1-17
.
(6)
The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section
19-2a-106
.
(7)
The Division of Water Quality Oil, Gas, and Mining Restricted Account created in
Section
19-5-126
.
(8)
State funds for matching federal funds in the Children's Health Insurance Program as
provided in Section
26B-3-906
.
(9)
Funds collected from the program fund for local health department expenses incurred in
responding to a local health emergency under Section
26B-7-111
.
(10)
The Technology Development Restricted Account created in Section
31A-3-104
.
(11)
The Criminal Background Check Restricted Account created in Section
31A-3-105
.
(12)
The Captive Insurance Restricted Account created in Section
31A-3-304
, except to the
extent that Section
31A-3-304
makes the money received under that section free revenue.
(13)
The Title Licensee Enforcement Restricted Account created in Section
31A-23a-415
.
(14)
The Health Insurance Actuarial Review Restricted Account created in Section
31A-30-115
.
(15)
The State Mandated Insurer Payments Restricted Account created in Section
31A-30-118
.
(16)
The Insurance Fraud Investigation Restricted Account created in Section
31A-31-108
.
(17)
The Underage Drinking Prevention Media and Education Campaign Restricted
Account created in Section
32B-2-306
.
(18)
The School Readiness Restricted Account created in Section
35A-15-203
.
(19)
Money received by the Utah State Office of Rehabilitation for the sale of certain
products or services, as provided in Section
35A-13-202
.
(20)
The Property Loss Related to Homelessness Compensation Enterprise Fund created in
Section
35A-16-212
.
(21)
The Homeless Shelter Cities Mitigation Restricted Account created in Section
35A-16-402
.
(22)
The Oil and Gas Administrative Penalties Account created in Section
40-6-11
.
(23)
The Oil and Gas Conservation Account created in Section
40-6-14.5
.
(24)
The Division of Oil, Gas, and Mining Restricted account created in Section
40-6-23
.
(25)
The Electronic Payment Fee Restricted Account created by Section
41-1a-121
to the
Motor Vehicle Division.
(26)
The License Plate Restricted Account created by Section
41-1a-122
.
(27)
The Motor Vehicle Enforcement Division Temporary Permit Restricted Account
created by Section
41-3-110
to the State Tax Commission.
(28)
The State Disaster Recovery Restricted Account to the Division of Emergency
Management, as provided in Section
53-2a-603
.
(29)
The Disaster Response, Recovery, and Mitigation Restricted Account created in
Section
53-2a-1302
.
(30)
The Emergency Medical Services Critical Needs Account created in Section
53-2d-110
.
(31)
The Department of Public Safety Restricted Account to the Department of Public
Safety, as provided in Section
53-3-106
.
(32)
The Utah Highway Patrol Aero Bureau Restricted Account created in Section
53-8-303
.
(33)
The DNA Specimen Restricted Account created in Section
53-10-407
.
(34)
The Technical Colleges Capital Projects Fund created in Section
53H-9-605
.
(35)
The Higher Education Capital Projects Fund created in Section
53H-9-502
.
(36)
A certain portion of money collected for administrative costs under the School
and
Institutional Trust Lands Management Act, as provided under Section
53C-3-202
.
(37)
The Public Utility Regulatory Restricted Account created in Section
54-5-1.5
, subject
to Subsection
54-5-1.5(4)(d)
.
(38)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-3a-105
.
(39)
Certain fines collected by the Division of Professional Licensing for violation of
unlawful or unprofessional conduct that are used for education and enforcement
purposes, as provided in Section
58-17b-505
.
(40)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-22-104
.
(41)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-55-106
.
(42)
Funds collected from a surcharge fee to provide certain licensees with access to an
electronic reference library, as provided in Section
58-56-3.5
.
(43)
Certain fines collected by the Division of Professional Licensing for use in education
and enforcement of the Security Personnel Licensing Act, as provided in Section
58-63-103
.
(44)
The Relative Value Study Restricted Account created in Section
59-9-105
.
(45)
The Cigarette Tax Restricted Account created in Section
59-14-204
.
(46)
Funds paid to the Division of Real Estate for the cost of a criminal background check
for a mortgage loan license, as provided in Section
61-2c-202
.
(47)
Funds paid to the Division of Real Estate for the cost of a criminal background check
for principal broker, associate broker, and sales agent licenses, as provided in Section
61-2f-204
.
(48)
Certain funds donated to the Department of Health and Human Services, as provided
in Section
26B-1-202
.
(49)
Certain funds donated to the Division of Child and Family Services, as provided in
Section
80-2-404
.
(50)
Funds collected by the Office of Administrative Rules for publishing, as provided in
Section
63G-3-402
.
(51)
The Immigration Act Restricted Account created in Section
63G-12-103
.
(52)
Money received by the military installation development authority, as provided in
Section
63H-1-504
.
(53)
The Unified Statewide 911 Emergency Service Account created in Section
63H-7a-304
.
(54)
The Utah Statewide Radio System Restricted Account created in Section
63H-7a-403
.
(55)
The Utah Capital Investment Restricted Account created in Section
63N-6-204
.
(56)
The Motion Picture Incentive Account created in Section
63N-8-103
.
(57)
Funds collected by the housing of state probationary inmates or state parole inmates, as
provided in Subsection
64-13e-104(2)
.
(58)
Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and
State Lands, as provided in Section
65A-8-103
.
(59)
The following funds or accounts created in Section
72-2-124
:
(a)
Transportation Investment Fund of 2005;
(b)
Transit Transportation Investment Fund;
(c)
Cottonwood Canyons Transportation Investment Fund;
(d)
Active Transportation Investment Fund; and
(e)
Commuter Rail Subaccount.
(60)
The Amusement Ride Safety Restricted Account, as provided in Section
72-16-204
.
(61)
Certain funds received by the Office of the State Engineer for well drilling fines or
bonds, as provided in Section
73-3-25
.
(62)
The Water Resources Conservation and Development Fund, as provided in Section
73-23-2
.
(63)
Award money under the State Asset Forfeiture Grant Program, as provided under
Section
77-11b-403
.
(64)
Funds donated or paid to a juvenile court by private sources, as provided in Subsection
78A-6-203(1)(c)
.
(65)
Fees for certificate of admission created under Section
78A-9-102
.
(66)
The Electrical Energy Development Investment Fund created in Section
79-6-1105
.
(66)
(67)
Funds collected for adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(67)
(68)
Funds collected for indigent defense as provided in Title
78B, Chapter 22, Part 4
,
Utah Indigent Defense Commission.
(68)
(69)
The Utah Geological Survey Restricted Account created in Section
79-3-403
.
(69)
(70)
Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State
Park, and Green River State Park, as provided under Section
79-4-403
.
(70)
(71)
Certain funds received by the Division of State Parks from the sale or disposal of
buffalo, as provided under Section
79-4-1001
.
Section 23. Section
63J-1-602.2
is amended to read:
63J-1-602.2
Effective
07/01/26
Partially Repealed
07/01/29
. List of nonlapsing
appropriations to programs.
Appropriations made to the following programs are nonlapsing:
(1)
The Legislature and the Legislature's committees.
(2)
The State Board of Education, including all appropriations to agencies, line items, and
programs under the jurisdiction of the State Board of Education, in accordance with
Section
53F-9-103
.
(3)
The Rangeland Improvement Act created in Section
4-20-101
.
(4)
The Percent-for-Art Program created in Section
9-6-404
.
(5)
The LeRay McAllister Working Farm and Ranch
Fund
Account
Program created in
Title
4, Chapter 46, Part 3
, LeRay McAllister Working Farm and Ranch Fund.
(6)
The Utah Lake Authority created in Section
11-65-201
.
(7)
Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection
17-66-303(2)(d)(ii)
.
(8)
The Wildlife Land and Water Acquisition Program created in Section
23A-6-205
.
(9)
Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108(7)
.
(10)
The primary care grant program created in Section
26B-4-310
.
(11)
The Opiate Overdose Outreach Pilot Program created in Section
26B-4-512
.
(12)
The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(13)
The Rural Physician Loan Repayment Program created in Section
26B-4-703
.
(14)
The Utah Medical Education Council for the:
(a)
administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b)
provision of medical residency grants described in Section
26B-4-711
; and
(c)
provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(15)
The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(16)
The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
created in Section
26B-7-122
.
(17)
Funds that the Department of Alcoholic Beverage Services retains in accordance with
Subsection
32B-2-301(8)(a)
or
(b)
.
(18)
The General Assistance program administered by the Department of Workforce
Services, as provided in Section
35A-3-401
.
(19)
The Utah National Guard, created in Title
39A, National Guard and Militia Act
.
(20)
The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(21)
The Emergency Medical Services Grant Program, as provided in Section
53-2d-207
.
(22)
The Motorcycle Rider Education Program, as provided in Section
53-3-905
.
(23)
The Utah Board of Higher Education for teacher preparation programs, as provided in
Section
53H-5-402
.
(24)
Innovation grants under Section
53G-10-608
, except as provided in Subsection
53G-10-608(3)
.
(25)
The Division of Fleet Operations for the purpose of upgrading underground storage
tanks under Section
63A-9-401
.
(26)
The Division of Technology Services for technology innovation as provided under
Section
63A-16-903
.
(27)
The State Capitol Preservation Board created by Section
63O-2-201
.
(28)
The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29)
The Colorado River Authority of Utah, created in Title
63M, Chapter 14
, Colorado
River Authority of Utah Act.
(30)
The Governor's Office of Economic Opportunity to fund the Enterprise Zone Act, as
provided in Title
63N, Chapter 2, Part 2
, Enterprise Zone Act.
(31)
The Governor's Office of Economic Opportunity's Rural Employment Expansion
Program, as described in Title
63N, Chapter 4, Part 4
, Rural Employment Expansion
Program.
(32)
County correctional facility contracting program for state inmates as described in
Section
64-13e-103
.
(33)
County correctional facility reimbursement program for state probationary inmates and
state parole inmates as described in Section
64-13e-104
.
(34)
Programs for the Jordan River Recreation Area as described in Section
65A-2-8
.
(35)
The Division of Human Resource Management user training program, as provided in
Section
63A-17-106
.
(36)
A public safety answering point's emergency telecommunications service fund, as
provided in Section
69-2-301
.
(37)
The Traffic Noise Abatement Program created in Section
72-6-112
.
(38)
The money appropriated from the Navajo Water Rights Negotiation Account to the
Division of Water Rights, created in Section
73-2-1.1
, for purposes of participating in a
settlement of federal reserved water right claims.
(39)
(38)
The Judicial Council for compensation for special prosecutors, as provided in
Section
77-10a-19
.
(40)
(39)
A state rehabilitative employment program, as provided in Section
78A-6-210
.
(41)
(40)
The Utah Geological Survey, as provided in Section
79-3-401
.
(42)
(41)
The Bonneville Shoreline Trail Program created under Section
79-5-503
.
(43)
(42)
Adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(44)
(43)
Indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah Indigent
Defense Commission.
(45)
(44)
The program established by the Division of Facilities Construction and
Management under Section
63A-5b-703
under which state agencies receive an
appropriation and pay lease payments for the use and occupancy of buildings owned by
the Division of Facilities Construction and Management.
(46)
(45)
The State Tax Commission for reimbursing counties for deferrals in accordance
with Section
59-2-1802.5
.
(47)
(46)
The Veterinarian Education Loan Repayment Program created in Section
4-2-902
.
Section 24. Section
63M-14-102
is amended to read:
63M-14-102
Effective
07/01/26
. Definitions.
As used in this chapter:
(1)
"Appointing authority" means an authority named in Section
63M-14-202
that appoints
an authority member for a Colorado River authority area.
(2)
"Authority" means the Colorado River Authority of Utah created by Section
63M-14-201
.
(3)
"Authority member" means a person appointed as a member of the authority under
Section
63M-14-202
or designated as a member of the authority.
(4)
"Chair" means the chair of the authority.
(5)
"Colorado River Basin States" means Arizona, California, Colorado, Nevada, New
Mexico, Utah, and Wyoming.
(6)
"Colorado River authority area" means the geographic area designated by Subsection
63M-14-202(2)
.
(7)
"Colorado River system" means the entire drainage of the Colorado River in Utah
including both the main stem of the Colorado River and the Colorado River's tributaries.
(8)
"Law of the river" means the compacts, federal laws, treaties, court decisions and
decrees, contracts, and regulatory guidelines that underlie and authorize the management
and operation of the Colorado River.
(9)
"Restricted account" means the Colorado River Authority Restricted Account created
in Section
63M-14-501
.
(10)
(9)
"River commissioner" means the person appointed under Section
63M-14-301
.
Section 25. Section
63N-3-103
is amended to read:
63N-3-103
Effective
07/01/26
. Industrial Assistance Account created -- Uses --
Administrator duties -- Costs.
(1)
There is created a restricted account within the General Fund known as the "Industrial
Assistance Account
.
"
.
(2)
The account consists of appropriations made by the Legislature.
(2)
(3)
The administrator shall administer the restricted account.
(3)
(4)
The administrator may hire appropriate support staff to perform the duties required
under this section.
(4)
(5)
The cost of administering the restricted account shall be paid from money in the
restricted account.
(5)
(6)
Interest accrued from investment of money in the restricted account shall remain in
the restricted account.
(6)
(7)
The office shall review the activities and progress of grant recipients under this
chapter on a regular basis and, as part of the office's annual written report described in
Section
63N-1a-306
, report on the economic impact of activities funded by each grant.
Section 26. Section
63N-3-105
is amended to read:
63N-3-105
Effective
07/01/26
. Qualification for assistance -- Application
requirements.
(1)
Subject to the requirements of this part, the administrator may provide loans, grants, or
other financial assistance from the restricted account to an entity offering an economic
opportunity if that entity:
(a)
applies to the administrator in a form approved by the administrator; and
(b)
meets the qualifications of Subsection
(2)
.
(2)
As part of an application for receiving financial assistance under this part, an applicant
shall demonstrate the following to the satisfaction of the administrator:
(a)
the nature of the economic opportunity and the related benefit to the economic
well-being of the state by providing evidence documenting the expenditure of money
necessitated by the economic opportunity;
(b)
how the economic opportunity will act in concert with other state, federal, or local
agencies to achieve the economic benefit;
(c)
that the applicant will expend funds in the state with employees, vendors,
subcontractors, or other businesses in an amount proportional with money provided
from the restricted account at a minimum ratio of one to one per year or other more
stringent requirements as established on a per project basis by the administrator;
(d)
for an application for a loan, the applicant's ability to sustain economic activity in the
state sufficient to repay, by means of cash or appropriate credits, the loan provided by
the restricted account; and
(e)
any other criteria the administrator considers appropriate.
(3)
(a)
The administrator may exempt an applicant from any of the requirements of
Subsection
(2)
if:
(i)
the applicant is part of a targeted industry; or
(ii)
the applicant is a quasi-public corporation organized under Title 16, Chapter 6a,
Utah Revised Nonprofit Corporation Act, or Title 63E, Chapter 2, Independent
Corporations Act, and the applicant's operations, as demonstrated to the
satisfaction of the administrator, will provide significant economic stimulus to the
growth of commerce and industry in the state.
(b)
The administrator may not exempt the applicant from the requirement under
Subsection
63N-3-106(1)(b)
that the loan be structured so that the repayment or
return to the state equals at least the amount of the assistance together with an annual
interest charge.
(4)
The GOEO board shall make recommendations to the administrator regarding
applications for loans, grants, or other financial assistance from the Industrial Assistance
Account.
(4)
(5)
Before awarding any money under this part, the administrator shall:
(a)
make findings as to whether an applicant has satisfied the requirements of Subsection
(2)
;
(b)
establish benchmarks and timeframes in which progress toward the completion of the
agreed upon activity is to occur;
(c)
monitor compliance by an applicant with any contract or agreement entered into by
the applicant and the state as provided by Section
63N-3-107
; and
(d)
make funding decisions based upon appropriate findings and compliance.
Section 27. Section
63N-3-106
is amended to read:
63N-3-106
Effective
07/01/26
. Structure of loans, grants, and assistance --
Repayment -- Earned credits.
(1)
(a)
Subject to
Subsection (1)(b)
the other provisions of this part
, the administrator
has authority to determine the structure, amount, and nature of any loan, grant, or
other financial assistance from the restricted account.
(b)
Loans made under this part shall be structured so the intended repayment or return to
the state, including cash or credit, equals at least the amount of the assistance
together with an annual interest charge as negotiated by the administrator.
(c)
Payments resulting from grants awarded from the restricted account shall be made
only after the administrator has determined that the company has satisfied the
conditions upon which the payment or earned credit was based.
(2)
(a)
The administrator may provide for a system of earned credits that may be used to
support grant payments or in lieu of cash repayment of a restricted account loan
obligation.
(b)
The value of the credits described in Subsection
(2)(a)
shall be based on factors
determined by the administrator, including:
(i)
the number of Utah jobs created;
(ii)
the increased economic activity in Utah; or
(iii)
other events and activities that occur as a result of the restricted account
assistance.
(3)
(a)
A cash loan repayment or other cash recovery from a company receiving
assistance under this section, including interest, shall be deposited into the restricted
account.
(b)
The administrator and the Division of Finance shall determine the manner of
recognizing and accounting for the earned credits used in lieu of loan repayments or
to support grant payments as provided in Subsection
(2)
.
(4)
(a)
(i)
At the end of each fiscal year, the Division of Finance shall
transfer
set
aside
the balance of the General Fund revenue surplus as defined in Section
63J-1-312
after the transfers of General Fund revenue surplus described in
Subsection
(4)(b)
to the Industrial Assistance Account in an amount equal to any
credit that has accrued under this part.
(ii)
The
transfer
set aside
under Subsection
(4)(a)(i)
is capped at $50,000,000

and
the Division of Finance shall deposit any interest accrued above the $50,000,000
cap into the General Fund.
(b)
The Division of Finance shall make the
transfer
set aside
required by Subsection
(4)(a)
after the Division of Finance transfers the General Fund revenue surplus to:
(i)
the Medicaid Growth Reduction and Budget Stabilization Restricted Account, as
provided in Section
63J-1-315
;
(ii)
the General Fund Budget Reserve Account, as provided in Section
63J-1-312
; and
(iii)
as provided in Section
63J-1-314
:
(A)
the Utah Wildfire Fund; and
(B)
the State Disaster Recovery Restricted Account.
(c)
These credit amounts may not be used for purposes of the restricted account as
provided in this part until appropriated by the Legislature.
Section 28. Section
67-3-1
is amended to read:
67-3-1
Effective
07/01/26
. Functions and duties.
(1)
(a)
The state auditor is the auditor of public accounts and is independent of any
executive or administrative officers of the state.
(b)
The state auditor
:

(i)
is not limited in the selection of personnel
or in the determination of
; and

(ii)
may determine
the reasonable and necessary expenses of the state auditor's office

in accordance with Title 63J, Chapter 1, Budgetary Procedures Act, and subject to
Title 63G, Chapter 9, Part 3, Review of Claims
.
(2)
The state auditor shall examine and certify annually in respect to each fiscal year,
financial statements showing:
(a)
the condition of the state's finances;
(b)
the revenues received or accrued;
(c)
expenditures paid or accrued;
(d)
the amount of unexpended or unencumbered balances of the appropriations to the
agencies, departments, divisions, commissions, and institutions; and
(e)
the cash balances of the funds in the custody of the state treasurer.
(3)
(a)
The state auditor shall:
(i)
audit each permanent fund, each special fund, the General Fund, and the accounts
of any department of state government or any independent agency or public
corporation as the law requires, as the auditor determines is necessary, or upon
request of the governor or the Legislature;
(ii)
perform the audits in accordance with generally accepted auditing standards and
other auditing procedures as promulgated by recognized authoritative bodies; and
(iii)
as the auditor determines is necessary, conduct the audits to determine:
(A)
honesty and integrity in fiscal affairs;
(B)
accuracy and reliability of financial statements;
(C)
effectiveness and adequacy of financial controls; and
(D)
compliance with the law
whether the entity responsible for the audited fund
or account has engaged in financial practices, used public funds, or managed
public property in a manner that complies with the applicable legal
requirements identified in connection with the audit
.
(b)
If any state entity receives federal funding, the state auditor shall ensure that the
audit is performed in accordance with federal audit requirements.
(c)
(i)
The costs of the federal compliance portion of the audit may be paid from an
appropriation to the state auditor from the General Fund.
(ii)
If an appropriation is not provided, or if the federal government does not
specifically provide for payment of audit costs, the costs of the federal compliance
portions of the audit shall be allocated on the basis of the percentage that each
state entity's federal funding bears to the total federal funds received by the state.
(iii)
The allocation shall be adjusted to reflect any reduced audit time required to
audit funds passed through the state to local governments and to reflect any
reduction in audit time obtained through the use of internal auditors working
under the direction of the state auditor.
(4)
(a)
Except as provided in Subsection
(4)(b)
, the state auditor shall, in addition to
financial audits, and as the auditor determines is necessary, conduct performance and
special purpose audits, examinations, and reviews of any entity that receives public
funds, including a determination of any or all of the following:
(i)
the honesty and integrity of all the entity's fiscal affairs;
(ii)
whether the entity's administrators have faithfully complied with legislative intent;
(iii)
whether the entity's operations have been conducted in an efficient, effective, and
cost-efficient manner;
(iv)
whether the entity's programs have been effective in accomplishing the intended
objectives; and
(v)
whether the entity's management, control, and information systems are adequate,
effective, and secure.
(b)
The auditor may not conduct performance and special purpose audits, examinations,
and reviews of any entity that receives public funds if the entity:
(i)
has an elected auditor; and
(ii)
has, within the entity's last budget year, had the entity's financial statements or
performance formally reviewed by another outside auditor.
(5)
The state auditor:
(a)
shall administer any oath or affirmation necessary to the performance of the duties of
the auditor's office; and
(b)
may:
(i)
subpoena witnesses and documents, whether electronic or otherwise; and
(ii)
examine into any matter that the auditor considers necessary.
(6)
The state auditor may require all persons who have had the disposition or management
of any property of this state or its political subdivisions to submit statements regarding
the property at the time and in the form that the auditor requires.
(7)
The state auditor shall:
(a)
except where otherwise provided by law, institute suits in Salt Lake County in
relation to the assessment, collection, and payment of revenues against:
(i)
persons who by any means have become entrusted with public money or property
and have failed to pay over or deliver the money or property; and
(ii)
all debtors of the state;
(b)
collect and pay into the state treasury all fees received by the state auditor;
(c)
perform the duties of a member of all boards of which the state auditor is a member
by the constitution or laws of the state, and any other duties that are prescribed by the
constitution and by law;
(d)
stop the payment of the salary of any state official or state employee who:
(i)
refuses to settle accounts or provide required statements about the custody and
disposition of public funds or other state property;
(ii)
refuses, neglects, or ignores the instruction of the state auditor or any controlling
board or department head with respect to the manner of keeping prescribed
accounts or funds; or
(iii)
fails to correct any delinquencies, improper procedures, and errors brought to the
official's or employee's attention;
(e)
establish accounting systems, methods, and forms for public accounts in all taxing or
fee-assessing units of the state in the interest of uniformity, efficiency, and economy;
(f)
superintend the contractual auditing of all state accounts;
(g)
subject to Subsection
(8)(a)
, withhold state allocated funds or the disbursement of
property taxes from a state or local taxing or fee-assessing unit, if necessary, to
ensure that officials and employees in those taxing units comply with state laws and
procedures in the budgeting, expenditures, and financial reporting of public funds;
(h)
subject to Subsection
(9)
, withhold the disbursement of tax money from any county,
if necessary, to ensure that officials and employees in the county comply with
Section
59-2-303.1
; and
(i)
withhold state allocated funds or the disbursement of property taxes from a local
government entity or a limited purpose entity, as those terms are defined in Section
67-1a-15
if the state auditor finds the withholding necessary to ensure that the entity
registers and maintains the entity's registration with the lieutenant governor, in
accordance with Section
67-1a-15
.
(8)
(a)
Except as otherwise provided by law, the state auditor may not withhold funds
under Subsection
(7)(g)
until a state or local taxing or fee-assessing unit has received
formal written notice of noncompliance from the auditor and has been given 60 days
to make the specified corrections.
(b)
If, after receiving notice under Subsection
(8)(a)
, a state or independent local
fee-assessing unit that exclusively assesses fees has not made corrections to comply
with state laws and procedures in the budgeting, expenditures, and financial reporting
of public funds, the state auditor:
(i)
shall provide a recommended timeline for corrective actions;
(ii)
may prohibit the state or local fee-assessing unit from accessing money held by
the state; and
(iii)
may prohibit a state or local fee-assessing unit from accessing money held in an
account of a financial institution by filing an action in a court with jurisdiction
under Title
78A, Judiciary and Judicial Administration
, requesting an order of the
court to prohibit a financial institution from providing the fee-assessing unit
access to an account.
(c)
The state auditor shall remove a limitation on accessing funds under Subsection
(8)(b)

upon compliance with state laws and procedures in the budgeting, expenditures, and
financial reporting of public funds.
(d)
If a local taxing or fee-assessing unit has not adopted a budget in compliance with
state law, the state auditor:
(i)
shall provide notice to the taxing or fee-assessing unit of the unit's failure to
comply;
(ii)
may prohibit the taxing or fee-assessing unit from accessing money held by the
state; and
(iii)
may prohibit a taxing or fee-assessing unit from accessing money held in an
account of a financial institution by:
(A)
contacting the taxing or fee-assessing unit's financial institution and
requesting that the institution prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title
78A, Judiciary and
Judicial Administration
, requesting an order of the court to prohibit a financial
institution from providing the taxing or fee-assessing unit access to an account.
(e)
If the local taxing or fee-assessing unit adopts a budget in compliance with state law,
the state auditor shall eliminate a limitation on accessing funds described in
Subsection
(8)(d)
.
(9)
The state auditor may not withhold funds under Subsection
(7)(h)
until a county has
received formal written notice of noncompliance from the auditor and has been given 60
days to make the specified corrections.
(10)
(a)
The state auditor may not withhold funds under Subsection
(7)(i)
until the state
auditor receives a notice of non-registration, as that term is defined in Section
67-1a-15
.
(b)
If the state auditor receives a notice of non-registration, the state auditor may
prohibit the local government entity or limited purpose entity, as those terms are
defined in Section
67-1a-15
, from accessing:
(i)
money held by the state; and
(ii)
money held in an account of a financial institution by:
(A)
contacting the entity's financial institution and requesting that the institution
prohibit access to the account; or
(B)
filing an action in a court with jurisdiction under Title
78A, Judiciary and
Judicial Administration
, requesting an order of the court to prohibit a financial
institution from providing the entity access to an account.
(c)
The state auditor shall remove the prohibition on accessing funds described in
Subsection
(10)(b)
if the state auditor received a notice of registration, as that term is
defined in Section
67-1a-15
, from the lieutenant governor.
(11)
Notwithstanding Subsection
(7)(g)
,
(7)(h)
,
(7)(i
),
(8)(b)
,
(8)(d)
, or
(10)(b
), the state
auditor:
(a)
shall authorize a disbursement by a local government entity or limited purpose entity,
as those terms are defined in Section
67-1a-15
, or a state or local taxing or
fee-assessing unit if the disbursement is necessary to:
(i)
avoid a major disruption in the operations of the local government entity, limited
purpose entity, or state or local taxing or fee-assessing unit; or
(ii)
meet debt service obligations; and
(b)
may authorize a disbursement by a local government entity, limited purpose entity,
or state or local taxing or fee-assessing unit as the state auditor determines is
appropriate.
(12)
(a)
The state auditor may seek relief under the Utah Rules of Civil Procedure to take
temporary custody of public funds if an action is necessary to protect public funds
from being improperly diverted from their intended public purpose.
(b)
If the state auditor seeks relief under Subsection
(12)(a)
:
(i)
the state auditor is not required to exhaust the procedures in Subsection
(7)
or
(8)
;
and
(ii)
the state treasurer may hold the public funds in accordance with Section
67-4-1
if
a court orders the public funds to be protected from improper diversion from their
public purpose.
(13)
The state auditor shall:
(a)
establish audit guidelines and procedures for audits of local mental health and
substance abuse authorities and their contract providers, conducted pursuant to Title
17, Chapter 77
, Local Health and Human Services, Title
26B, Chapter 5
, Health Care
- Substance Use and Mental Health, and Title
51, Chapter 2a
, Accounting Reports
from Political Subdivisions, Interlocal Organizations, and Other Local Entities Act;
and
(b)
ensure that those guidelines and procedures provide assurances to the state that:
(i)
state and federal funds appropriated to local mental health authorities are used for
mental health purposes;
(ii)
a private provider under an annual or otherwise ongoing contract to provide
comprehensive mental health programs or services for a local mental health
authority is in compliance with state and local contract requirements and state and
federal law;
(iii)
state and federal funds appropriated to local substance abuse authorities are used
for substance abuse programs and services; and
(iv)
a private provider under an annual or otherwise ongoing contract to provide
comprehensive substance abuse programs or services for a local substance abuse
authority is in compliance with state and local contract requirements, and state and
federal law.
(14)
(a)
The state auditor may, in accordance with the auditor's responsibilities for
political subdivisions of the state as provided in Title
51, Chapter 2a
, Accounting
Reports from Political Subdivisions, Interlocal Organizations, and Other Local
Entities Act, initiate audits or investigations of any political subdivision that are
necessary to determine honesty and integrity in fiscal affairs, accuracy and reliability
of financial statements, effectiveness, and adequacy of financial controls and
compliance with the law.
(b)
If the state auditor receives notice under Subsection
11-41-104(7)
from the
Governor's Office of Economic Opportunity on or after July 1, 2024, the state auditor
may initiate an audit or investigation of the public entity subject to the notice to
determine compliance with Section
11-41-103
.
(15)
(a)
The state auditor may not audit work that the state auditor performed before
becoming state auditor.
(b)
If the state auditor has previously been a responsible official in state government
whose work has not yet been audited, the Legislature shall:
(i)
designate how that work shall be audited; and
(ii)
provide additional funding for those audits, if necessary.
(16)
The state auditor shall:
(a)
with the assistance, advice, and recommendations of an advisory committee
appointed by the state auditor from among special district boards of trustees, officers,
and employees and special service district boards, officers, and employees:
(i)
prepare a Uniform Accounting Manual for Special Districts that:
(A)
prescribes a uniform system of accounting and uniform budgeting and
reporting procedures for special districts under Title
17B, Limited Purpose
Local Government Entities - Special Districts
, and special service districts
under Title
17D, Chapter 1
, Special Service District Act;
(B)
conforms with generally accepted accounting principles; and
(C)
prescribes reasonable exceptions and modifications for smaller districts to the
uniform system of accounting, budgeting, and reporting;
(ii)
maintain the manual under this Subsection
(16)(a)
so that the manual continues to
reflect generally accepted accounting principles;
(iii)
conduct a continuing review and modification of procedures in order to improve
them;
(iv)
prepare and supply each district with suitable budget and reporting forms; and
(v)
(A)
prepare instructional materials, conduct training programs, and render other
services considered necessary to assist special districts and special service
districts in implementing the uniform accounting, budgeting, and reporting
procedures; and
(B)
ensure that any training described in Subsection
(16)(a)(v)(A)
complies with
Title
63G, Chapter 22
, State Training and Certification Requirements; and
(b)
continually analyze and evaluate the accounting, budgeting, and reporting practices
and experiences of specific special districts and special service districts selected by
the state auditor and make the information available to all districts.
(17)
(a)
The following records in the custody or control of the state auditor are protected
records under Title
63G, Chapter 2
, Government Records Access and Management
Act:
(i)
records that would disclose information relating to allegations of personal
misconduct, gross mismanagement, or illegal activity of a past or present
governmental employee if the information or allegation cannot be corroborated by
the state auditor through other documents or evidence, and the records relating to
the allegation are not relied upon by the state auditor in preparing a final audit
report;
(ii)
records and audit workpapers to the extent the workpapers would disclose the
identity of an individual who during the course of an audit, communicated the
existence of any waste of public funds, property, or manpower, or a violation or
suspected violation of a law, rule, or regulation adopted under the laws of this
state, a political subdivision of the state, or any recognized entity of the United
States, if the information was disclosed on the condition that the identity of the
individual be protected;
(iii)
before an audit is completed and the final audit report is released, records or
drafts circulated to an individual who is not an employee or head of a
governmental entity for the individual's response or information;
(iv)
records that would disclose an outline or part of any audit survey plans or audit
program; and
(v)
requests for audits, if disclosure would risk circumvention of an audit.
(b)
The provisions of Subsections
(17)(a)(i)
,
(ii)
, and
(iii)
do not prohibit the disclosure
of records or information that relate to a violation of the law by a governmental entity
or employee to a government prosecutor or peace officer.
(c)
The provisions of this Subsection
(17)
do not limit the authority otherwise given to
the state auditor to classify a document as public, private, controlled, or protected
under Title
63G, Chapter 2
, Government Records Access and Management Act.
(d)
(i)
As used in this Subsection
(17)(d)
, "record dispute" means a dispute between
the state auditor and the subject of an audit performed by the state auditor as to
whether the state auditor may release a record, as defined in Section
63G-2-103
,
to the public that the state auditor gained access to in the course of the state
auditor's audit but which the subject of the audit claims is not subject to disclosure
under Title
63G, Chapter 2
, Government Records Access and Management Act.
(ii)
The state auditor may submit a record dispute to the director of the Government
Records Office, created in Section
63A-12-202
, for a determination of whether the
state auditor may, in conjunction with the state auditor's release of an audit report,
release to the public the record that is the subject of the record dispute.
(iii)
The state auditor or the subject of the audit may seek judicial review of the
director's determination, described in Subsection
(17)(d)(ii)
, as provided in
Section
63G-2-404
.
(18)
If the state auditor conducts an audit of an entity that the state auditor has previously
audited and finds that the entity has not implemented a recommendation made by the
state auditor in a previous audit, the state auditor shall notify the Legislative
Management Committee through the Legislative Management Committee's Audit
Subcommittee that the entity has not implemented that recommendation.
(19)
The state auditor shall, with the advice and consent of the Senate, appoint the state
privacy auditor described in Section
67-3-13
.
(20)
Except as provided in Subsection
(21)
, the state auditor shall report, or ensure that
another government entity reports, on the financial, operational, and performance
metrics for the state system of higher education and the state system of public education,
including metrics in relation to students, programs, and schools within those systems.
(21)
(a)
Notwithstanding Subsection
(20)
, the state auditor shall conduct regular audits of:
(i)
the scholarship granting organization for the Carson Smith Opportunity
Scholarship Program, created in Section
53E-7-402
;
(ii)
the State Board of Education for the Carson Smith Scholarship Program, created
in Section
53F-4-302
; and
(iii)
the scholarship program manager for the Utah Fits All Scholarship Program,
created in Section
53F-6-402
, including an analysis of the cost effectiveness of the
program, taking into consideration the amount of the scholarship and the amount
of state and local funds dedicated on a per-student basis within the traditional
public education system.
(b)
Nothing in this subsection limits or impairs the authority of the State Board of
Education to administer the programs described in Subsection
(21)(a)
.
(22)
The state auditor shall, based on the information posted by the Office of Legislative
Research and General Counsel under Subsection
36-12-12.1(2)
, for each policy, track
and post the following information on the state auditor's website:
(a)
the information posted under Subsections
36-12-12.1(2)(a)
through
(e)
;
(b)
an indication regarding whether the policy is timely adopted, adopted late, or not
adopted;
(c)
an indication regarding whether the policy complies with the requirements
established by law for the policy; and
(d)
a link to the policy.
(23)
(a)
A legislator may request that the state auditor conduct an inquiry to determine
whether a government entity, government official, or government employee has
complied with a legal obligation directly imposed, by statute, on the government
entity, government official, or government employee.
(b)
The state auditor may, upon receiving a request under Subsection
(23)(a)
, conduct
the inquiry requested.
(c)
If the state auditor conducts the inquiry described in Subsection
(23)(b)
, the state
auditor shall post the results of the inquiry on the state auditor's website.
(d)
The state auditor may limit the inquiry described in this Subsection
(23)
to a simple
determination, without conducting an audit, regarding whether the obligation was
fulfilled.
(24)
The state auditor shall:
(a)
ensure compliance with Title
63G, Chapter 31
, Distinctions on the Basis of Sex, in
accordance with Section
63G-31-401
; and
(b)
report to the Legislative Management Committee, upon request, regarding the state
auditor's actions under this Subsection
(24)
.
(25)
The state auditor shall report compliance with Sections
67-27-107
,
67-27-108
, and
67-27-109
by:
(a)
establishing a process to receive and audit each alleged violation; and
(b)
reporting to the Legislative Management Committee, upon request, regarding the
state auditor's findings and recommendations under this Subsection
(25)
.
(26)
The state auditor shall ensure compliance with Section
63G-1-704
regarding the
display of flags in or on government property.
(27)
(a)
On or before January 31 each year, the state auditor shall prepare a report that
states, for each entity that holds public funds as defined in Section
51-7-3
, the entity's
total balance, as of the last day of the immediately preceding fiscal year, of cash, cash
equivalents, and investments, as those terms are defined under the standards
established by the Governmental Accounting Standards Board.
(b)
The state auditor shall make the report described in Subsection
(27)(a)
publicly
available on a website that the state auditor maintains.
Section 29. Section
79-6-410
is enacted to read:
79-6-410
Effective
07/01/26
. Energy Development Infrastructure Fund.
(1)
As used in this section, "public entity" means a state agency, county, municipality,
special district, special service district, an intergovernmental entity organized under state
law, or the military installation development authority created in Section
63H-1-201
.
(2)
There is created a revolving loan fund known as the Energy Development Infrastructure
Fund.
(3)
The fund consists of:
(a)
money the Legislature appropriates to the fund;
(b)
money received for repayment of a loan made from the fund; and
(c)
interest earned on money in the fund.
(4)
The office may use money in the fund to make one or more loans to one or more public
entities to finance infrastructure development that supports nuclear power generation
and transmission in the state.
(5)
(a)
A public entity that borrows money from the fund shall enter into a loan
agreement with the office for repayment of the money.
(b)
(i)
The office shall ensure that a loan under this section is secured by:
(A)
bonds, notes, or another evidence of indebtedness validly issued under state
law; or
(B)
revenue generated from the project.
(ii)
The security provided under Subsection
(5)(b)(i)
may include the borrower's
pledge of some or all of a revenue source that the borrower controls.
(c)
A loan under this section shall bear interest at a rate not to exceed .5% above bond
market interest rates available to the state.
(6)
The office may provide conditions in the loan agreement described in Subsection
(5)
to
ensure that:
(a)
the proceeds of the loan will be used to pay the cost of the project; and
(b)
the project will be completed.
(7)
The office shall administer and enforce a loan under this section according to the terms
of the loan agreement.
Section 30. Section
79-6-1105
is amended to read:
79-6-1105
Effective
07/01/26
. Electrical Energy Development Investment Fund.
(1)
There is created
an expendable
a
special revenue fund known as the "Electrical Energy
Development Investment Fund."
(2)
The fund consists of:
(a)
property tax differential revenue collected under Section
79-6-1104
;
(b)
revenue from the radioactive waste facility expansion tax collected under Section
59-24-103.8
; and
(c)
revenue from a tax on new generators of radioactive waste as described in Subsection
59-24-103.5(3)
.
(3)
The council shall:
(a)
administer the fund; and
(b)
use fund money only as authorized under Section
79-6-1106
.
Section 31. Section
79-6-1106
is amended to read:
79-6-1106
Effective
07/01/26
. Authorized uses of fund money.
(1)
(a)
The
Subject to legislative appropriation, the
council may use fund money to:
(a)
(i)
facilitate electrical energy infrastructure development within the state,
including:
(i)
(A)
transmission and distribution lines;
(ii)
(B)
pipeline development;
(iii)
(C)
energy storage facilities;
(iv)
(D)
generation facilities;
(v)
(E)
related infrastructure;
and
(vi)
(F)
to fund research, site selection, permitting, public outreach, and other
activities related to the development of nuclear energy;
and
(G)
district energy systems as defined in Section
79-6-602
;
(b)
(ii)
provide matching funds for federal energy development grants;
(c)
(iii)
support energy workforce development programs;
(d)
(iv)
provide incentives for electrical energy development projects; and
(e)
(v)
pay for administrative expenses related to the council's duties.
(2)
(b)
Fund
Except as provided in Subsection
(2)
, fund
money derived from the
radioactive waste facility expansion tax revenue collected under Section
59-24-103.8

is prioritized for activities related to the development of nuclear energy.
(2)
Subject to legislative appropriation, the Department of Environmental Quality created in
Section
19-1-104
may use up to 10% of fund money derived from the radioactive waste
facility expansion tax revenue collected under Section
59-24-103.8
for energy-related
permitting reforms.
Section 32.
Repealer.
Title.
Definitions.
Grants and programs -- Conditions.
Duties and authorities -- Rulemaking.
Wildlife Resources Conservation Easement Restricted Account.
Donations related to donation of wild game meat -- Wild Game Meat
Donation Fund.
Title.
Navajo Water Rights Negotiation Account -- Settlement.
Colorado River Authority Restricted Account.
Section 33.
FY 2026 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
fiscal year 2026.
Subsection 33(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.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
DEPARTMENT OF NATURAL RESOURCES
ITEM 1
Department of Natural Resources - Office of Energy Development
From General Fund, One-time
(5,000,000)
Office of Energy Development
(5,000,000)
Subsection 33(b).
Business-like Activities
The Legislature has reviewed the following proprietary funds. Under the terms and
conditions of Utah Code 63J-1-410, for any included Internal Service Fund, the Legislature
approves budgets, full-time permanent positions, and capital acquisition amounts as indicated,
and appropriates to the funds, as indicated, estimated revenue from rates, fees, and other
charges. The Legislature authorizes the State Division of Finance to transfer amounts between
funds and accounts as indicated.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
DEPARTMENT OF NATURAL RESOURCES
ITEM 2
Department of Natural Resources - Energy Development Infrastructure Fund
From General Fund, One-time
5,000,000
Energy Development Infrastructure Fund
5,000,000
Section 34.
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 34(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.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
OFFICE OF THE GOVERNOR
ITEM 3
Office of the Governor - Colorado River Authority of Utah
From General Fund
1,638,500
Colorado River Authority of Utah
1,638,500
Subsection 34(b).
Restricted Fund and Account Transfers
The Legislature authorizes the State Division of Finance to transfer the following
amounts between the following funds or accounts as indicated. Expenditures and outlays from
the funds to which the money is transferred must be authorized by an appropriation.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
ITEM 4
General Fund Restricted - Colorado River Authority Restricted Account
From General Fund
(1,638,500)
Colorado River Authority Restricted Account
(1,638,500)
The Legislature intends that the Division of
Finance transfer any balances remaining in the Colorado
River Authority Restricted Account after fiscal year 2026
closeout to Office of the Governor - Colorado River
Authority of Utah line item.
Section 35.
Effective Date.
This bill takes effect on
July 1, 2026
.
Section 36.
Coordinating H.B. 545 with H.B. 473.
If this H.B. 545, Budgetary Modifications, and H.B. 473, Colorado River Authority
Amendments, both pass and become law, the Legislature intends that, on July 1, 2026, the
appropriations in Section 34 of H.B. 545, which address money in the Colorado River
Authority Restricted Account, not take effect.
3-10-26 8:16 AM