Extracted Natural Resources Amendments

155
19-1-209
40-6-24
40-8-5.5
51-9-202
51-9-301
51-9-302
51-9-303
51-9-305
51-9-307
51-9-1001
51-9-1002
51-9-1003
59-2-924
59-5-115
59-5-116
59-5-119
59-5-215
63J-1-602.2
79-2-201
79-10-101
79-10-201
79-10-202
79-10-301
79-10-302
79-10-303
79-10-401
79-10-402
79-10-403
79-10-501
79-10-601
79-10-602
79-10-701
SB0254
HB0373
53H-8-211 (07/01/26)
0
Extracted Natural Resources Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ann Millner
House Sponsor: David Shallenberger
LONG TITLE
General Description:
This bill addresses natural resources within the state.
Highlighted Provisions:
This bill:
facilitates faster permitting by the Department of Environmental Quality and the Division
of Oil, Gas, and Mining;
modifies the tax credit for mining exploration;
creates the State Reinvestment Restricted Account and diverts various streams of income
related to severance taxes into the State Reinvestment Restricted Account;
addresses property tax differentials based on critical minerals zones;
defines terms;
establishes the state critical minerals objectives and policy, including providing for annual
reviews;
creates the Critical Minerals Council (council), including establishing the council's
operations, powers, and duties;
makes money appropriated to the council nonlapsing;
addresses areas of coordination by certain council members;
establishes a process to designate critical minerals zones, including providing for property
tax differential revenue;
provides for the creation of a clearinghouse of data to be known as the "Critical Minerals
Atlas";
addresses the creation of the Minerals for Industrial, National, and Economic Security
Center;
creates the Critical Minerals Development Account;
coordinates with H.B. 373, Higher Education Innovation, to address inclusion of critical
minerals projects in the eligible research areas for research grants; and
makes technical and conforming amendments.
Money Appropriated in this Bill:
This bill appropriates
$400,000
in operating and capital budgets for fiscal year 2026, all of
which is from the General Fund.
This bill appropriates
$14,016,200
in restricted fund and account transfers for fiscal year 2026,
all of which is from the various sources as detailed in this bill.
This bill appropriates
$11,400,000
in operating and capital budgets for fiscal year 2027,
including:
$400,000
from General Fund; and
$11,000,000
from various sources as detailed in this bill.
Other Special Clauses:
This bill provides a special effective date.
This bill provides retrospective operation.
This bill provides a coordination clause.
Utah Code Sections Affected:
AMENDS:
40-6-24
Effective
05/06/26
Applies beginning
01/01/26
Repealed
07/01/37
, as
repealed and reenacted by Laws of Utah 2025, Chapter 159
51-9-202
Effective
07/01/26
, as last amended by Laws of Utah 2021, Chapter 401
51-9-302
Effective
07/01/26
, as last amended by Laws of Utah 2010, Chapter 219
51-9-305
Effective
07/01/26
, as last amended by Laws of Utah 2014, Chapter 241
59-2-924
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2025, First Special Session, Chapter 15
59-5-115
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2023, Chapters 446, 537
59-5-116
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2021, Chapter 401
59-5-119
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2021, Chapter 401
59-5-215
Effective
05/06/26
Applies beginning
01/01/26
, as last amended by Laws of
Utah 2024, Chapter 25
63J-1-602.2
Effective
05/06/26
Partially Repealed
07/01/29
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 17
79-2-201
Effective
05/06/26
Partially Repealed
07/01/29
, as last amended by Laws of
Utah 2025, Chapter 93
ENACTS:
19-1-209
Effective
05/06/26
, Utah Code Annotated 1953
40-8-5.5
Effective
05/06/26
, Utah Code Annotated 1953
51-9-1001
Effective
07/01/26
, Utah Code Annotated 1953
51-9-1002
Effective
07/01/26
, Utah Code Annotated 1953
51-9-1003
Effective
07/01/26
, Utah Code Annotated 1953
79-10-101
Effective
05/06/26
, Utah Code Annotated 1953
79-10-201
Effective
05/06/26
, Utah Code Annotated 1953
79-10-202
Effective
05/06/26
, Utah Code Annotated 1953
79-10-301
Effective
05/06/26
, Utah Code Annotated 1953
79-10-302
Effective
05/06/26
, Utah Code Annotated 1953
79-10-303
Effective
05/06/26
, Utah Code Annotated 1953
79-10-401
Effective
05/06/26
, Utah Code Annotated 1953
79-10-402
Effective
05/06/26
, Utah Code Annotated 1953
79-10-403
Effective
05/06/26
, Utah Code Annotated 1953
79-10-501
Effective
05/06/26
, Utah Code Annotated 1953
79-10-601
Effective
05/06/26
, Utah Code Annotated 1953
79-10-602
Effective
05/06/26
, Utah Code Annotated 1953
79-10-701
Effective
05/06/26
, Utah Code Annotated 1953
REPEALS:
51-9-301
Effective
07/01/26
, as last amended by Laws of Utah 2021, Chapter 401
51-9-303
Effective
07/01/26
, as last amended by Laws of Utah 2016, Chapter 128
51-9-307
Effective
07/01/26
, as last amended by Laws of Utah 2024, Chapter 25
Utah Code Sections Affected by Coordination Clause:
53H-8-211 (07/01/26)
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
19-1-209
is enacted to read:
19-1-209
Effective
05/06/26
. Fast track permitting for critical minerals.
(1)
As used in this section:
(a)
"Critical mineral" means the same as that term is defined in Section
79-10-101
.
(b)
"Critical minerals project" means an activity requiring one or more state permits
related to the extraction or processing of a critical mineral.
(c)
"Critical minerals zone" means the same as that term is defined in Section
79-10-101
.
(d)
"Permit" means the same as that term is defined in Section
79-10-101
.
(2)
(a)
A division within the department shall prioritize division resources to process a
permit that is:
(i)
requested to be issued by the division; and
(ii)
related to a critical minerals project described in Subsection
(2)(b)
.
(b)
This Subsection
(2)
applies to a critical minerals project that is:
(i)
for the extraction or processing of a critical mineral within a critical minerals
zone; or
(ii)
included in the strategic plan developed by the Critical Minerals Council under
Subsection
79-10-302(1)
.
(3)
The department shall work cooperatively with the Division of Oil, Gas, and Mining to
develop processes under which permits for a critical minerals project described in
Subsection
(2)(b)
that are issued by a division within the department and the Division of
Oil, Gas, and Mining:
(a)
may be issued at parallel times rather than sequentially; and
(b)
minimize the need for a person to comply with duplicative, overlapping, or
conflicting requirements.
(4)
Nothing in this section abrogates or interferes with the powers or duties of the Division
of Oil, Gas, and Mining.
Section 2. Section
40-6-24
is amended to read:
40-6-24
Effective
05/06/26
Applies beginning
01/01/26
Repealed
07/01/37
.
Tax credit for mining exploration -- Division to issue certificates.
(1)
As used in this section:
(a)
"Activity" means:
(i)
surveying by a geophysical method or by a geochemical method;
(ii)
drilling one or more exploration holes;
(iii)
conducting underground exploration;
(iv)
surface trenching or bulk sampling;
(v)
taking aerial photographs;
(vi)
geological and geophysical logging;
(vii)
sample analysis; or
(viii)
metallurgical testing.
(b)
"Assigned tax credit certificate" means a tax credit certificate the division issues to a
person to which a claimant assigns the claimant's tax credit.
(c)
(i)
"Certified expenditure" means a cost incurred for an activity in direct support of
an eligible exploration activity conducted at a specific site.
(ii)
"Certified expenditure" includes:
(A)
the cost of obtaining an approval, a permit, a license, or a certificate for an
eligible exploration activity;
(B)
a direct labor cost and the cost of benefits for employees directly associated
with work described in Subsection
(1)(c)(i)
;
(C)
the cost of leasing equipment from a third party;
(D)
the cost of owning, maintaining, or operating equipment;
(E)
insurance and bond premiums associated with the activities described in
Subsections
(1)(c)(ii)(A)
through
(D)
;
(F)
the cost of a consultant or an independent contractor; and
(G)
any general expense related to operating the business engaged in the eligible
exploration activity to the extent the expense is directly attributable to the work
described in Subsection
(1)(c)(i)
.
(iii)
"Certified expenditure" does not include:
(A)
return on investment; or
(B)
insurance or bond premiums not described in Subsection
(1)(c)(ii)(E)
.
(d)
(i)
"Claimant" means a person that:
(A)
is engaged in the business of mining or extracting minerals;
(B)
is subject to a severance tax, for the taxable year in which the person applies
for a tax credit certificate, under Title 59, Chapter 5, Part 2, Mining Severance
Tax, as a direct result of minerals produced from eligible exploration activities;
and
(C)
makes a certified expenditure.
(ii)
"Claimant" does not include a person in the business of mining or extracting
minerals on the Great Salt Lake from:
(A)
the brines of the Great Salt Lake, except for a person using a nonevaporative
mining or extraction method; or
(B)
a material or secondary source, including tails, slag, waste dumps, or another
similar secondary source, derived from the brines of the Great Salt Lake.
(e)
"Eligible claimant" means a claimant or a person to which a claimant assigns a tax
credit in accordance with Subsections
(4)(a)(vi)
and
,
(7)
, and (11)
.
(f)
"Eligible exploration activity" means an activity performed in the state that is
associated with:
(i)
producing a mineral from a natural deposit that is not part of a mine that exists at
the time the activity begins;
(ii)
producing a mineral not under production within a mine that exists at the time the
activity begins;
(iii)
recovering a mineral not under production from a secondary source at the time
the activity begins, including tails, slag, waste dumps, or another similar
secondary source, whether in solution or otherwise;
or
(iv)
expanding production of a mineral using a mining method not used within a mine
that exists at the time the activity begins
; or
as certified by the division in
accordance with Subsection
(10)
.
(v)
expanding existing production of a mineral that requires a new exploration or
mining permit or the modification of a permit issued before the activity begins.
(g)
"Geochemical method" means a method of gathering geochemical data, including
collecting soil, rock, water, air, vegetation, or any other similar item and performing
a chemical analysis on the item.
(h)
"Geophysical method" means a method of gathering geophysical data that is used in
mineral exploration, including seismic, gravity, magnetic, radiometric, radar,
electromagnetic, and other remote sensing measurements.
(i)
"Mine" means the same as that term is defined in Section
59-5-201
.
(j)
"Mineral" means:
(i)
a metalliferous mineral as defined in Section
59-5-201
; or
(ii)
a metalliferous compound as defined in Section
59-5-202
.
(k)
"Tax credit certificate" means a certificate the division issues that:
(i)
lists the claimant's name and taxpayer identification number;
(ii)
lists the amount of the claimant's tax credit authorized under this section for a
taxable year; and
(iii)
includes other information as determined by the division.
(2)
Before claiming a tax credit under Section
59-5-304
, a person shall apply to the division
to enter
into
an agreement and, upon becoming an eligible claimant, to receive a tax
credit certificate.
(3)
(a)
Except as provided in Subsection
(3)(b)
, a person shall enter
into
an agreement
with the division before beginning eligible exploration activities.
(b)
A person that has certified expenditures from an eligible exploration activity for a
taxable year beginning on or after January 1, 2025, and beginning before January 1,
2026, shall enter an agreement with the division as provided by rule.
(4)
(a)
The agreement shall provide:
(i)
the eligible exploration activities for which the person may incur certified
expenditures eligible to receive a tax credit certificate, which may include
certified expenditures from a taxable year beginning on or after January 1, 2025,
and beginning before January 1, 2027;
(ii)
the type of mineral the person intends to produce;
(iii)
the maximum number of years a person has between the beginning of eligible
exploration activities and the production of minerals as a direct result of the
eligible exploration activities;
(iv)
the maximum number of years, which may not exceed
20
10
years, that a person
may receive a tax credit certificate;
(v)
the requirements for reporting certified expenditures and production of minerals
as a direct result of eligible exploration activity, including:
(A)
a description of the mine where the eligible exploration activity occurred;
(B)
evidence that the certified expenditure occurred and the amount of the
certified expenditure; and
(C)
the means for verifying that severance tax liability occurs as a direct result of
an eligible exploration activity; and
(vi)
subject to Subsection
(11)
,
a requirement that, if a claimant intends to assign a
tax credit, the claimant shall provide to the division a written notice of intent to
assign the tax credit to another person, in a form the division approves, that
includes:
(A)
written certification or other proof that the claimant irrevocably elects not to
claim the tax credit authorized by the tax credit certificate; and
(B)
contact information for the person to which the claimant is assigning the tax
credit.
(b)
The parties to the agreement may modify the terms of the agreement.
(c)
(i)
The division shall approve certified expenditures upon receiving a report of a
certified expenditure unless the division determines that the expenditure does not
meet the definition of certified expenditure.
(ii)
If the division determines that an expenditure does not meet the definition of
certified expenditure, the division shall provide the person a written explanation
that states each reason the division denied the expenditure and give the person an
opportunity to correct any deficiency or provide additional information.
(5)
(a)
A person with an agreement may apply for a tax credit certificate:
(i)
upon becoming an eligible claimant; and
(ii)
for a taxable year beginning on or after January 1, 2027.
(b)
The person shall include in the application for a tax credit certificate the following
information for the taxable year in which the person seeks a tax credit certificate:
(i)
proof that the person is an eligible claimant;
(ii)
a description of the mineral that the eligible claimant produced and evidence to
support that the mineral is produced from an eligible exploration activity;
(iii)
the amount of severance tax liability as a direct result of minerals produced from
an eligible exploration activity that the eligible claimant incurred for the taxable
year; and
(iv)
any other information the division requests.
(6)
(a)
After the division receives an application for a tax credit certificate, the division
shall:
(i)
verify that the person is an eligible claimant; and
(ii)
determine whether the eligible claimant has approved certified expenditures.
(b)
Subject to Subsection
(6)(c)
, the division shall issue a tax credit certificate in an
amount equal to the lesser of:
(i)
50% of
the amount of certified expenditures minus any certified expenditures for
which the division previously issued a tax credit certificate; or
(ii)
30% of
the claimant's severance tax liability as a direct result of minerals
produced from an eligible exploration activity for the taxable year.
(c)
(i)
The division may not issue a tax credit certificate if the aggregate value of tax
credit certificates issued for certified expenditures related to eligible exploration
activities at the same mine exceeds
$20,000,000
$10,000,000
.
(ii)
Notwithstanding Subsection
(6)(c)(i)
, the division may issue a tax credit
certificate up to an aggregate value of
$30,000,000
$15,000,000
for certified
expenditures related to eligible exploration activities at the same mine if the
certified expenditures that exceed
$20,000,000
$10,000,000
are for eligible
exploration activities undertaken to produce a mineral for which the United States
is greater than 50% net import reliant, as provided in the Mineral Commodity
Summaries published by the United States Geological Survey, in the calendar year
in which an eligible exploration activity commences.
(7)
(a)
If the claimant meets the requirements of Subsection
(4)(a)(vi)
, the division shall
issue an assigned tax credit certificate to the person identified by the claimant in an
amount equal to the lesser of:
(i)
the amount of the claimant's certified expenditures minus any certified
expenditures for which the division previously issued a tax credit certificate; or
(ii)
the person's severance tax liability as a direct result of minerals produced from an
eligible exploration activity for the taxable year.
(b)
A person that receives an assigned tax credit certificate may claim the tax credit
under Section
59-5-304
as if the person met the requirements of Section
59-5-304
, if
the person files a return under Title 59, Chapter 5, Part 2, Mining Severance Tax.
(8)
An eligible claimant that receives a tax credit certificate or assigned tax credit certificate
in accordance with this section shall retain the tax credit certificate or assigned tax credit
certificate for the same time period that a person is required to keep books and records
under Section
59-1-1406
.
(9)
The division shall submit annually to the State Tax Commission an electronic list that
includes:
(a)
the name and identifying information for:
(i)
each claimant to which the division issues a tax credit certificate; and
(ii)
each person to which the division issues an assigned tax credit certificate in
accordance with Subsection
(7)
;
(b)
for each person described in Subsection
(9)(a)
, the amount of tax credit stated on the
tax credit certificate or assigned tax credit certificate; and
(c)
for each person described in Subsection
(9)(a)(ii)
, information necessary to identify
the original tax credit certificate and the assigned tax credit certificate.
(10)
To qualify an activity as an eligible exploration activity under Subsection
(1)(f)(iv)
, a
claimant shall demonstrate to the satisfaction of the division and the division shall
certify that the method to be used within a mine is a new technology or technique that
did not exist within that mine at the time the activity begins.
(11)
A claimant may assign a tax credit certificate in accordance with Subsections
(4)(a)(vi)

and
(7)
only to either a new owner or operator of the same mining operations in the state
that engaged in the eligible exploration activity that gives rise to the claimant's tax credit
certificate. A claimant may assign a tax credit certificate under this Subsection
(11)
to
only one person.
(10)
(12)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
the division may make rules governing the administration of the agreement and tax
credit certificate process described in this section.
Section 3. Section
40-8-5.5
is enacted to read:
40-8-5.5
Effective
05/06/26
. Fast track permitting for critical minerals.
(1)
As used in this section:
(a)
"Critical mineral" means the same as that term is defined in Section
79-10-101
.
(b)
"Critical minerals project" means an activity requiring one or more state permits
related to the extraction or processing of a critical mineral.
(c)
"Critical minerals zone" means the same as that term is defined in Section
79-10-101
.
(d)
"Permit" means the same as that term is defined in Section
79-10-101
.
(2)
(a)
The division shall prioritize division resources to process a permit that is:
(i)
requested to be issued by the division; and
(ii)
related to a critical minerals project described in Subsection
(2)(b)
.
(b)
This Subsection
(2)
applies to a critical minerals project that is:
(i)
for the extraction or processing of a critical mineral within a critical minerals
zone; or
(ii)
included in the strategic plan developed by the Critical Minerals Council under
Subsection
79-10-302(1)
.
(3)
The division shall work cooperatively with the Department of Environmental Quality to
develop processes under which permits for a critical minerals project described in
Subsection
(2)(b)
that are issued by the division and the Department of Environmental
Quality:
(a)
may be issued at parallel times rather than sequentially; and
(b)
minimize the need for a person to comply with duplicative, overlapping, or
conflicting requirements.
(4)
Nothing in this section abrogates or interferes with the powers or duties of the
Department of Environmental Quality.
Section 4. Section
51-9-202
is amended to read:
51-9-202
Effective
07/01/26
. Permanent state trust fund.
(1)
Until July 1, 2003, 50% of all funds of every kind that are received by the state that are
related to the settlement agreement that the state entered into with leading tobacco
manufacturers on November 23, 1998, shall be deposited into the permanent state trust
fund created by and operated under Utah Constitution
,
Article XXII, Section 4.
(2)
On and after July 1, 2003
,
and until July 1, 2004
,
20% of the funds of any kind received
by the state that are related to the settlement agreement that the state entered into with
leading tobacco manufacturers shall be deposited into the permanent state trust fund
created by and operated under Utah Constitution
,
Article XXII, Section 4.
(3)
On and after July 1, 2004
,
and until July 1, 2005, 30% of all funds of any kind received
by the state that are related to the settlement agreement that the state entered into with
leading tobacco manufacturers shall be deposited into the General Fund Budget Reserve
Account created in Section
63J-1-312
.
(4)
On and after July 1, 2005
,
and until July 1, 2007, 25% of all funds of any kind received
by the state that are related to the settlement agreement that the state entered into with
leading tobacco manufacturers shall be deposited into the permanent state trust fund
created by and operated under Utah Constitution
,
Article XXII, Section 4.
(5)
On and after July 1, 2007, 40% of all funds of every kind that are received by the state
that are related to the settlement agreement that the state entered into with leading
tobacco manufacturers on November 23, 1998, shall be deposited into the General Fund
and the remaining funds deposited as directed.
(6)
Funds in the permanent state trust fund shall be deposited or invested
pursuant to
in
accordance with

Chapter 7b, Investment of Permanent State Trust Fund Money
.
(7)
(a)
In accordance with Utah Constitution
,
Article XXII, Section 4, the interest and
dividends earned annually from the permanent state trust fund shall be deposited in
the General Fund. There shall be transferred on an ongoing basis from the General
Fund to the permanent state trust fund created under Utah Constitution
,
Article XXII,
Section 4, an amount equal to 50% of the interest and dividends earned annually from
the permanent state trust fund. The amount transferred into the fund under this
Subsection
(7)(a)
shall be treated as principal.
(b)
Any annual interest or dividends earned from the permanent state trust fund that
remain in the General Fund after Subsection
(7)(a)
may be appropriated by the
Legislature.
(c)
Any realized or unrealized gains or losses on investments in the permanent state trust
fund shall remain in the permanent state trust fund.
(8)
This section does not apply to funds deposited under
Chapter 9, Part 3, Infrastructure
and Economic Diversification Investment Account and Deposit or Credit of Certain
Severance Taxes Act
Part 3, Deposit or Credit of Certain Severance Taxes and Interest
and Dividends
, into the permanent state trust fund.
Section 5. Section
51-9-302
is amended to read:
3. Deposit or Credit of Certain Severance Taxes and Interest and Dividends
51-9-302
Effective
07/01/26
. Definitions.
As used in this part
:
(1)
"Infrastructure and Economic Diversification Investment Account" means the
Infrastructure and Economic Diversification Investment Account created in Section
51-9-303
.
(2)
"Permanent
, "permanent
state trust fund" means the permanent state trust fund created
under Utah Constitution
,
Article XXII, Section 4.
Section 6. Section
51-9-305
is amended to read:
51-9-305
Effective
07/01/26
. Deposit and credit of certain severance tax
revenue.
(1)
As used in this section, "aggregate annual revenue" means the aggregate annual revenue
collected in a fiscal year from the taxes imposed under
Title 59, Chapter 5, Severance
Tax on Oil, Gas, and Mining
, after subtracting the amounts required to be distributed
under Sections
59-5-116
and
59-5-119
.
(2)
After making the deposits of oil and gas severance tax revenue as required under
Sections
59-5-116
and
59-5-119
, the Division of Finance shall make the credit required
under Subsection
(3)
.
(3)
Beginning on July 1, 2016, the Division of Finance shall credit to the permanent state
trust fund the following aggregate annual revenue:
(a)
25% of the first $50,000,000 of aggregate annual revenue;
(b)
50% of the next $50,000,000 of aggregate annual revenue; and
(c)
75% of the aggregate annual revenue that exceeds $100,000,000.
(4)
The state treasurer shall invest and separately account for the earnings on funds that are
credited to the permanent state trust fund under this section.
(5)
(a)
In accordance with Utah Constitution
,
Article XXII, Section 4, the interest and
dividends earned annually on revenue from severance taxes that are credited to the
permanent state trust fund shall be credited to the General Fund.
(b)
Interest and dividends earned on revenue from severance taxes that are credited to
the General Fund
pursuant to
in accordance with
Subsection
(5)(a)
shall be credited
to the
Infrastructure and Economic Diversification Investment Account created in
Section
51-9-303
State Reinvestment Restricted Account created in Section
51-9-1002
.
Section 7. Section
51-9-1001
is enacted to read:
10. State Reinvestment Restricted Account
51-9-1001
Effective
07/01/26
. Definitions.
As used in this part:
(1)
"Account" means the State Reinvestment Restricted Account created in Section
51-9-1002
.
(2)
"Generational water infrastructure" means physical facilities or other physical assets
designed to meet generational demands for water.
(3)
"New revenue" means revenue collected above $100,000,000 from the taxes imposed
under Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining, after subtracting the
amounts required to be distributed under Sections
51-9-305
,
51-9-306
,
59-5-116
,
59-5-119
, and
59-5-121
and under Subsection
59-5-202(5)(c)
.
Section 8. Section
51-9-1002
is enacted to read:
51-9-1002
Effective
07/01/26
. State Reinvestment Restricted Account created.
(1)
There is created within the General Fund a restricted account known as the "State
Reinvestment Restricted Account."
(2)
The account shall consist of:
(a)
new revenue that the State Tax Commission shall deposit into the account until the
new revenue equals or exceeds $200,000,000 in a fiscal year;
(b)
revenue credited to the account in accordance with Section
59-5-215
;
(c)
revenue credited to the account in accordance with Section
51-9-305
; and
(d)
interest and earnings on money in the account.
(3)
The state treasurer shall invest the money in the fund according to Title 51, Chapter 7,
State Money Management Act, except that interest or other earnings derived from those
investments shall be deposited into the account.
Section 9. Section
51-9-1003
is enacted to read:
51-9-1003
Effective
07/01/26
. Authorized use of the State Reinvestment
Restricted Account.
(1)
Money in the account is to be used, subject to appropriation, for:
(a)
income tax relief;
(b)
development of generational water infrastructure;
(c)
facilitating preservation of the Great Salt Lake watershed, as described in Title 73,
Chapter 10g, Part 4, Great Salt Lake Watershed Integrated Water Assessment;
(d)
regionally significant transit development and regionally significant transit
infrastructure;
(e)
development of energy resources, as described in Title 79, Chapter 6, Utah Energy
Act;
(f)
subject to Subsection (3), development of critical mineral resources, as described in
Title 79, Chapter 10, Critical Minerals Strategic Act; and
(g)
subject to Subsection
(3)
, the Uintah Basin Air Quality Research Project created in
Section
53H-4-316
.
(2)
Money in the account that is derived from a local source may not be used in an area
outside the area in which the money was generated unless the money is used for a
purpose described in Subsection
(1)
.
(3)
Subject to appropriation:
(a)
the first $1,000,000 of revenue credited to the account under Subsections
51-9-1002(2)(b)
and
(c)
each fiscal year shall be used by the Critical Minerals
Council for the development of critical mineral resources, as described in Title 79,
Chapter 10, Critical Minerals Strategic Act;
(b)
after the amount distributed as described in Subsection
(3)(a)
, 10% of the revenue
credited to the account under Subsection
51-9-1002(2)(b)
each fiscal year shall be
used for the development of critical mineral resources, as described in Title 79,
Chapter 10, Critical Minerals Strategic Act; and
(c)
after the amount distributed as described in Subsection
(3)(a)
, $400,000 of the
revenue credited to the account under Subsection
51-9-1002(2)(c)
shall be used for
the Uintah Basin Air Quality Research Project created in Section
53H-4-316
.
Section 10. Section
59-2-924
is amended to read:
59-2-924
Effective
05/06/26
Applies beginning
01/01/26
. Definitions -- Report
of valuation of property to county auditor and commission -- Transmittal by auditor to
governing bodies -- Calculation of certified tax rate -- Rulemaking authority -- Adoption
of tentative budget -- Notice provided by the commission.
(1)
As used in this section:
(a)
(i)
"Ad valorem property tax revenue" means revenue collected in accordance with
this chapter.
(ii)
"Ad valorem property tax revenue" does not include:
(A)
interest;
(B)
penalties;
(C)
collections from redemptions; or
(D)
revenue received by a taxing entity from personal property that is
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment.
(b)
"Adjusted tax increment" means the same as that term is defined in Section
17C-1-102
.
(c)
(i)
"Aggregate taxable value of all property taxed" means:
(A)
the aggregate taxable value of all real property a county assessor assesses in
accordance with Part 3, County Assessment, for the current year;
(B)
the aggregate taxable value of all real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for the current
year; and
(C)
the aggregate year end taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, contained on the prior
year's tax rolls of the taxing entity.
(ii)
"Aggregate taxable value of all property taxed" does not include the aggregate
year end taxable value of personal property that is:
(A)
semiconductor manufacturing equipment assessed by a county assessor in
accordance with Part 3, County Assessment; and
(B)
contained on the prior year's tax rolls of the taxing entity.
(d)
"Base taxable value" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
the same as that term is defined in Section
11-59-207
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(v)
for an authority created under Section
63H-1-201
, the same as that term is defined
in Section
63H-1-102
;
(vi)
for a host local government, the same as that term is defined in Section
63N-2-502
;
(vii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, a property's taxable value as shown
upon the assessment roll last equalized during the base year, as that term is
defined in Section
10-21-101
or Section
17-80-101
;
(ix)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, a property's taxable value as shown upon the
assessment roll last equalized during the base year, as that term is defined in
Section
63N-3-1601
;
(x)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, a property's taxable value as shown
upon the assessment roll last equalized during the property tax base year, as that
term is defined in Section
63N-3-1701
;
or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
value of the property within an electrical energy development zone, as shown on
the assessment roll last equalized before the creation of the electrical development
zone, as that term is defined in Section
79-6-1104
.
; or
(xii)
for a critical minerals zone created under Title 79, Chapter 10, Part 4, Critical
Minerals Zone, the value of the property within a critical minerals zone, as shown
on the assessment roll last equalized before the creation of the critical minerals
zone, as that term is defined in Section
79-10-101
.
(e)
"Centrally assessed benchmark value" means an amount equal to the average year
end taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous three calendar
years, adjusted for taxable value attributable to:
(i)
an annexation to a taxing entity;
(ii)
an incorrect allocation of taxable value of real or personal property the
commission assesses in accordance with Part 2, Assessment of Property; or
(iii)
a change in value as a result of a change in the method of apportioning the value
prescribed by the Legislature, a court, or the commission in an administrative rule
or administrative order.
(f)
"Centrally assessed industry" means the following industry classes the commission
assesses in accordance with Part 2, Assessment of Property:
(i)
air carrier;
(ii)
coal;
(iii)
coal load out property;
(iv)
electric generation;
(v)
electric rural;
(vi)
electric utility;
(vii)
gas utility;
(viii)
ground access property;
(ix)
land only property;
(x)
liquid pipeline;
(xi)
metalliferous mining;
(xii)
nonmetalliferous mining;
(xiii)
oil and gas gathering;
(xiv)
oil and gas production;
(xv)
oil and gas water disposal;
(xvi)
railroad;
(xvii)
sand and gravel; and
(xviii)
uranium.
(g)
(i)
"Centrally assessed new growth" means the greater of:
(A)
for each centrally assessed industry, zero; or
(B)
the amount calculated by subtracting the centrally assessed benchmark value
for each centrally assessed industry, adjusted for prior year end incremental
value, from the taxable value of real and personal property the commission
assesses in accordance with Part 2, Assessment of Property, for each centrally
assessed industry for the current year, adjusted for current year incremental
value.
(ii)
"Centrally assessed new growth" does not include a change in value for a
centrally assessed industry as a result of a change in the method of apportioning
the value prescribed by the Legislature, a court, or the commission in an
administrative rule or administrative order.
(h)
"Certified tax rate" means a tax rate that will provide the same ad valorem property
tax revenue for a taxing entity as was budgeted by that taxing entity for the prior year.
(i)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(j)
"Eligible new growth" means the greater of:
(i)
zero; or
(ii)
the sum of:
(A)
locally assessed new growth;
(B)
centrally assessed new growth; and
(C)
project area new growth or hotel property new growth.
(k)
"Host local government" means the same as that term is defined in Section
63N-2-502
.
(l)
"Hotel property" means the same as that term is defined in Section
63N-2-502
.
(m)
"Hotel property new growth" means an amount equal to the incremental value that is
no longer provided to a host local government as incremental property tax revenue.
(n)
"Incremental property tax revenue" means the same as that term is defined in Section
63N-2-502
.
(o)
"Incremental value" means:
(i)
for an authority created under Section
11-58-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a project area and on which property tax
differential is collected; and
(B)
the number that represents the percentage of the property tax differential that
is paid to the authority;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount calculated by multiplying:
(A)
the difference between the current assessed value of the property and the base
taxable value; and
(B)
the number that represents the percentage of the property tax augmentation, as
defined in Section
11-59-207
, that is paid to the Point of the Mountain State
Land Authority;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the amount calculated by multiplying:
(A)
the difference between the taxable value for the current year and the base
taxable value of the property that is located within a project area; and
(B)
the number that represents the percentage of enhanced property tax revenue,
as defined in Section
11-70-101
;
(iv)
for an agency created under Section
17C-1-201.5
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which tax increment is collected;
and
(B)
the number that represents the adjusted tax increment from that project area
that is paid to the agency;
(v)
for an authority created under Section
63H-1-201
, the amount calculated by
multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a project area and on which property tax allocation is
collected; and
(B)
the number that represents the percentage of the property tax allocation from
that project area that is paid to the authority;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a housing and transit reinvestment zone or
convention center reinvestment zone and on which tax increment is collected;
and
(B)
the number that represents the percentage of the tax increment that is paid to
the housing and transit reinvestment zone or convention center reinvestment
zone;
(vii)
for a host local government, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
hotel property on which incremental property tax revenue is collected; and
(B)
the number that represents the percentage of the incremental property tax
revenue from that hotel property that is paid to the host local government;
(viii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part
5, Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80,
Part 5, Home Ownership Promotion Zone, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a home ownership promotion zone and on which
tax increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the home ownership promotion zone;
(ix)
for a first home investment zone created in accordance with Title 63N, Chapter
3, Part 16, First Home Investment Zone Act, an amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within a first home investment zone and on which tax
increment is collected; and
(B)
the number that represents the percentage of the tax increment that is paid to
the first home investment zone;
(x)
for a major sporting event venue zone created
pursuant to
in accordance with

Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, an amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property located within a qualified development zone for a major sporting
event venue zone and upon which property tax increment is collected; and
(B)
the number that represents the percentage of tax increment that is paid to the
major sporting event venue zone, as approved by a major sporting event venue
zone committee described in Section
63N-1a-1706
;
or
(xi)
for an electrical energy development zone created under Section
79-6-1104
, the
amount calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the electrical energy developmental zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency and the Electrical Energy Development
Investment Fund created in Section
79-6-1105
.
; or
(xii)
for a critical minerals zone created under Section
79-10-403
, the amount
calculated by multiplying:
(A)
the difference between the taxable value and the base taxable value of the
property that is located within the critical minerals zone; and
(B)
the number that represents the percentage of the tax increment that is paid to a
community reinvestment agency or a state land use authority, as defined in
Section
79-10-401
, and the Critical Minerals Development Account created in
Section
79-10-701
.
(p)
(i)
"Locally assessed new growth" means the greater of:
(A)
zero; or
(B)
the amount calculated by subtracting the year end taxable value of real
property the county assessor assesses in accordance with Part 3, County
Assessment, for the previous year, adjusted for prior year end incremental
value from the taxable value of real property the county assessor assesses in
accordance with Part 3, County Assessment, for the current year, adjusted for
current year incremental value.
(ii)
"Locally assessed new growth" does not include a change in:
(A)
value as a result of factoring in accordance with Section
59-2-704
, reappraisal,
or another adjustment;
(B)
assessed value based on whether a property is allowed a residential exemption
for a primary residence under Section
59-2-103
;
(C)
assessed value based on whether a property is assessed under Part 5, Farmland
Assessment Act; or
(D)
assessed value based on whether a property is assessed under Part 17, Urban
Farming Assessment Act.
(q)
"Project area" means:
(i)
for an authority created under Section
11-58-201
, the same as that term is defined
in Section
11-58-102
;
(ii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, the same as that term is defined in Section
11-70-101
;
(iii)
for an agency created under Section
17C-1-201.5
, the same as that term is
defined in Section
17C-1-102
;
(iv)
for an authority created under Section
63H-1-201
, the same as that term is
defined in Section
63H-1-102
;
(v)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as that term is defined in Section
63N-3-602
;
(vi)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(vii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(viii)
for a major sporting event venue zone established under Title 63N, Chapter 3,
Part 17, Major Sporting Event Venue Zone Act, the qualified development zone,
as defined in Section
63N-3-1701
.
(r)
"Project area new growth" means:
(i)
for an authority created under Section
11-58-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
differential;
(ii)
for the Point of the Mountain State Land Authority created in Section
11-59-201
,
an amount equal to the incremental value that is no longer provided to the Point of
the Mountain State Land Authority as property tax augmentation, as defined in
Section
11-59-207
;
(iii)
for the Utah Fairpark Area Investment and Restoration District created in Section
11-70-201
, an amount equal to the incremental value that is no longer provided to
the Utah Fairpark Area Investment and Restoration District;
(iv)
for an agency created under Section
17C-1-201.5
, an amount equal to the
incremental value that is no longer provided to an agency as tax increment;
(v)
for an authority created under Section
63H-1-201
, an amount equal to the
incremental value that is no longer provided to an authority as property tax
allocation;
(vi)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, an amount equal to the incremental value that is no
longer provided to a housing and transit reinvestment zone or convention center
reinvestment zone as tax increment;
(vii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, an amount equal to the incremental value
that is no longer provided to a home ownership promotion zone as tax increment;
(viii)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, an amount equal to the incremental value that is
no longer provided to a first home investment zone as tax increment; or
(ix)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, an amount equal to the incremental
value that is no longer provided to the creating entity of a major sporting event
venue zone as property tax increment.
(s)
"Project area incremental revenue" means the same as that term is defined in Section
17C-1-1001
.
(t)
"Property tax allocation" means the same as that term is defined in Section
63H-1-102
.
(u)
"Property tax differential" means the same as that term is defined in Sections
11-58-102
and
,

79-6-1104
, and
79-10-401
.
(v)
"Tax increment" means:
(i)
for a project created under Section
17C-1-201.5
, the same as that term is defined
in Section
17C-1-102
;
(ii)
for a housing and transit reinvestment zone or convention center reinvestment
zone created under Title 63N, Chapter 3, Part 6, Housing and Transit
Reinvestment Zone Act, the same as the term "property tax increment" is defined
in Section
63N-3-602
;
(iii)
for a home ownership promotion zone created under Title 10, Chapter 21, Part 5,
Home Ownership Promotion Zone for Municipalities, or Title 17, Chapter 80, Part
5, Home Ownership Promotion Zone, the same as that term is defined in Section
10-21-101
or Section
17-80-101
;
(iv)
for a first home investment zone created under Title 63N, Chapter 3, Part 16,
First Home Investment Zone Act, the same as that term is defined in Section
63N-3-1601
; or
(v)
for a major sporting event venue zone created under Title 63N, Chapter 3, Part
17, Major Sporting Event Venue Zone Act, property tax increment, as that term is
defined in Section
63N-3-1701
.
(2)
Before June 1 of each year, each county assessor shall deliver to the county auditor and
the commission the following statements:
(a)
a statement containing the aggregate valuation of all taxable real property a county
assessor assesses in accordance with Part 3, County Assessment, for each taxing
entity; and
(b)
a statement containing the taxable value of all personal property a county assessor
assesses in accordance with Part 3, County Assessment, from the prior year end
values.
(3)
The county auditor shall, on or before June 8, transmit to the governing body of each
taxing entity:
(a)
the statements described in Subsections
(2)(a)
and
(b)
;
(b)
an estimate of the revenue from personal property;
(c)
the certified tax rate; and
(d)
all forms necessary to submit a tax levy request.
(4)
(a)
Except as otherwise provided in this section, the certified tax rate shall be
calculated by dividing the ad valorem property tax revenue that a taxing entity
budgeted for the prior year by the amount calculated under Subsection
(4)(b)
.
(b)
For purposes of Subsection
(4)(a)
, the legislative body of a taxing entity shall
calculate an amount as follows:
(i)
calculate for the taxing entity the difference between:
(A)
the aggregate taxable value of all property taxed; and
(B)
any adjustments for current year incremental value;
(ii)
after making the calculation required by Subsection
(4)(b)(i)
, calculate an amount
determined by increasing or decreasing the amount calculated under Subsection
(4)(b)(i)
by the average of the percentage net change in the value of taxable
property for the equalization period for the three calendar years immediately
preceding the current calendar year;
(iii)
after making the calculation required by Subsection
(4)(b)(ii)
, calculate the
product of:
(A)
the amount calculated under Subsection
(4)(b)(ii)
; and
(B)
the percentage of property taxes collected for the five calendar years
immediately preceding the current calendar year; and
(iv)
after making the calculation required by Subsection
(4)(b)(iii)
, calculate an
amount determined by:
(A)
multiplying the percentage of property taxes collected for the five calendar
years immediately preceding the current calendar year by eligible new growth;
and
(B)
subtracting the amount calculated under Subsection
(4)(b)(iv)(A)
from the
amount calculated under Subsection
(4)(b)(iii)
.
(5)
A certified tax rate for a taxing entity described in this Subsection
(5)
shall be calculated
as follows:
(a)
except as provided in Subsection
(5)(b)
or
(c)
, for a new taxing entity, the certified
tax rate is zero;
(b)
for a municipality incorporated on or after July 1, 1996, the certified tax rate is:
(i)
in a county of the first, second, or third class, the levy imposed for municipal-type
services under Title 17, Chapter 78, Part 5, Provision of Municipal-Type Services
to Unincorporated Areas; and
(ii)
in a county of the fourth, fifth, or sixth class, the levy imposed for general county
purposes and such other levies imposed solely for the municipal-type services
identified in Section
17-78-501
and Subsection
17-63-101(23)
;
(c)
for a community reinvestment agency that received all or a portion of a taxing
entity's project area incremental revenue in the prior year under Title 17C, Chapter 1,
Part 10, Agency Taxing Authority, the certified tax rate is calculated as described in
Subsection
(4)
except that the commission shall treat the total revenue transferred to
the community reinvestment agency as ad valorem property tax revenue that the
taxing entity budgeted for the prior year; and
(d)
for debt service voted on by the public, the certified tax rate is the actual levy
imposed by that section, except that a certified tax rate for the following levies shall
be calculated in accordance with Section
59-2-913
and this section:
(i)
a school levy provided for under Section
53F-8-301
,
53F-8-302
, or
53F-8-303
; and
(ii)
a levy to pay for the costs of state legislative mandates or judicial or
administrative orders under Section
59-2-1602
.
(6)
(a)
A taxing entity may impose a judgment levy under Section
59-2-1328
or
59-2-1330
at a rate that is sufficient to generate only the revenue required to satisfy
one or more eligible judgments.
(b)
The ad valorem property tax revenue generated by a judgment levy described in
Subsection
(6)(a)
may not be considered in establishing a taxing entity's aggregate
certified tax rate.
(7)
(a)
For the purpose of calculating the certified tax rate, the county auditor shall use:
(i)
the taxable value of real property:
(A)
the county assessor assesses in accordance with Part 3, County Assessment;
and
(B)
contained on the assessment roll;
(ii)
the year end taxable value of personal property:
(A)
a county assessor assesses in accordance with Part 3, County Assessment; and
(B)
contained on the prior year's assessment roll; and
(iii)
the taxable value of real and personal property the commission assesses in
accordance with Part 2, Assessment of Property.
(b)
For purposes of Subsection
(7)(a)
, taxable value does not include eligible new
growth.
(8)
(a)
On or before June 30 of each year, a taxing entity shall adopt a tentative budget.
(b)
If a taxing entity intends to exceed the certified tax rate, the taxing entity shall notify
the county auditor of:
(i)
the taxing entity's intent to exceed the certified tax rate; and
(ii)
the amount by which the taxing entity proposes to exceed the certified tax rate.
(c)
The county auditor shall notify property owners of any intent to levy a tax rate that
exceeds the certified tax rate in accordance with Sections
59-2-919
and
59-2-919.1
.
(9)
(a)
Subject to Subsection
(9)(d)
, the commission shall provide notice, through
electronic means on or before July 31, to a taxing entity and the Revenue and
Taxation Interim Committee if:
(i)
the amount calculated under Subsection
(9)(b)
is 10% or more of the year end
taxable value of the real and personal property the commission assesses in
accordance with Part 2, Assessment of Property, for the previous year, adjusted
for prior year end incremental value; and
(ii)
the amount calculated under Subsection
(9)(c)
is 50% or more of the total year
end taxable value of the real and personal property of a taxpayer the commission
assesses in accordance with Part 2, Assessment of Property, for the previous year.
(b)
For purposes of Subsection
(9)(a)(i)
, the commission shall calculate an amount by
subtracting the taxable value of real and personal property the commission assesses
in accordance with Part 2, Assessment of Property, for the current year, adjusted for
current year incremental value, from the year end taxable value of the real and
personal property the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year, adjusted for prior year end incremental value.
(c)
For purposes of Subsection
(9)(a)(ii)
, the commission shall calculate an amount by
subtracting the total taxable value of real and personal property of a taxpayer the
commission assesses in accordance with Part 2, Assessment of Property, for the
current year, from the total year end taxable value of the real and personal property of
a taxpayer the commission assesses in accordance with Part 2, Assessment of
Property, for the previous year.
(d)
The notification under Subsection
(9)(a)
shall include a list of taxpayers that meet the
requirement under Subsection
(9)(a)(ii)
.
Section 11. Section
59-5-115
is amended to read:
59-5-115
Effective
05/06/26
Applies beginning
01/01/26
. Disposition of taxes
collected -- Credit to General Fund.
(1)
As used in this section, "above-trend revenue" means the amount by which the actual
revenue from the oil and gas severance tax deposited into the General Fund under
Subsection
(2)
exceeds the long-term trend of oil and gas severance tax revenue to the
General Fund as determined by the Office of the Legislative Fiscal Analyst and the
Governor's Office of Planning and Budget.
(2)
Except as provided in Section
51-9-305
,
51-9-306
,
51-9-307
,
51-9-1002
,

59-5-116
,
59-5-119
, or
59-5-121
, a tax imposed and collected under Section
59-5-102
shall be paid
to the commission, promptly remitted to the state treasurer, and credited to the General
Fund.
(3)
The Division of Finance shall transfer above-trend revenue up to
$20 million
$20,000,000
from the General Fund into the Transportation Investment Fund each year
beginning in the fiscal year beginning July 1, 2023, until the amount deposited into the
Transportation Investment Fund totals
$88.5 million
$88,500,000
.
Section 12. Section
59-5-116
is amended to read:
59-5-116
Effective
05/06/26
Applies beginning
01/01/26
. Disposition of certain
taxes collected on Ute Indian land.
(1)
Except as provided in Subsection
(2)
, there shall be deposited into the Uintah Basin
Revitalization Fund established in Section
35A-8-1602
:
(a)
for taxes imposed under this part, 33% of the taxes collected on oil, gas, or other
hydrocarbon substances produced from a well:
(i)
for which production began on or before June 30, 1995; and
(ii)
attributable to interests:
(A)
held in trust by the United States for the Tribe and
its
the Tribe's
members; or
(B)
on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948);
(b)
for taxes imposed under this part, 80% of taxes collected on oil, gas, or other
hydrocarbon substances produced from a well:
(i)
for which production began on or after July 1, 1995; and
(ii)
attributable to interests:
(A)
held in trust by the United States for the Tribe and
its
the Tribe's
members; or
(B)
on lands identified in Pub. L. No. 440, 62 Stat. 72 (1948); and
(c)
for taxes imposed under this part, 80% of taxes collected on oil, gas, or other
hydrocarbon substances produced from a well:
(i)
for which production began on or after January 1, 2001; and
(ii)
attributable to interests on lands conveyed to the tribe under the Ute-Moab Land
Restoration Act, Pub. L. No. 106-398, Sec. 3303.
(2)
(a)
The maximum amount deposited in the Uintah Basin Revitalization Fund may not
exceed:
(i)
$3,000,000 in fiscal year 2005-06;
(ii)
$5,000,000 in fiscal year 2006-07;
(iii)
$6,000,000 in fiscal years 2007-08 and 2008-09; and
(iv)
for fiscal years beginning with fiscal year 2009-10, the amount determined by the
commission as described in Subsection
(2)(b)
.
(b)
(i)
The commission shall increase or decrease the dollar amount described in
Subsection
(2)(a)(iii)
by a percentage equal to the percentage difference between
the consumer price index for the preceding calendar year and the consumer price
index for calendar year 2008; and
(ii)
after making an increase or decrease under Subsection
(2)(b)(i)
, round the dollar
amount to the nearest whole dollar.
(c)
For purposes of this Subsection
(2)
, "consumer price index" is as described in
Section 1(f)(4), Internal Revenue Code, and defined in Section (1)(f)(5), Internal
Revenue Code.
(d)
Any amounts in excess of the maximum described in Subsection
(2)(a)
shall be
credited as provided in Sections
51-9-305
,
51-9-306
,
51-9-307
51-9-1002
, and
59-5-115
.
Section 13. Section
59-5-119
is amended to read:
59-5-119
Effective
05/06/26
Applies beginning
01/01/26
. Disposition of certain
taxes collected on Navajo Nation land located in Utah.
(1)
Except as provided in Subsection
(2)
, there shall be deposited into the Navajo
Revitalization Fund established in Section
35A-8-1704
for taxes imposed under this part
beginning on July 1, 1997:
(a)
33% of the taxes collected on oil, gas, or other hydrocarbon substances produced
from a well:
(i)
for which production began on or before June 30, 1996; and
(ii)
attributable to interests in Utah held in trust by the United States for the Navajo
Nation and
its
the Navajo Nation's
members; and
(b)
80% of the taxes collected on oil, gas, or other hydrocarbon substances produced
from a well:
(i)
for which production began on or after July 1, 1996; and
(ii)
attributable to interests in Utah held in trust by the United States for the Navajo
Nation and
its
the Navajo Nation's
members.
(2)
(a)
The maximum amount deposited in the Navajo Revitalization Fund may not
exceed:
(i)
$2,000,000 in fiscal year 2006-07; and
(ii)
$3,000,000 for fiscal years beginning with fiscal year 2007-08.
(b)
Any amounts in excess of the maximum described in Subsection
(2)(a)
shall be
credited as provided in Sections
51-9-305
,
51-9-306
,
51-9-307
51-9-1002
, and
59-5-115
.
Section 14. Section
59-5-215
is amended to read:
59-5-215
Effective
05/06/26
Applies beginning
01/01/26
. Disposition of taxes
collected -- Credit to General Fund -- Transfer to State Reinvestment Restricted Account.
(1)
Except as provided in Section
51-9-305
,
51-9-306
, or
51-9-307
51-9-1002
, or
Subsection
59-5-202(5)
, a tax imposed and collected under Section
59-5-202
shall be
paid to the commission, promptly remitted to the state treasurer, and credited to the
General Fund.
(2)
For a fiscal year beginning on or after July 1, 2026, the Division of Finance shall
transfer from the General Fund to the State Reinvestment Restricted Account created in
Section
51-9-1002
the amount credited to the General Fund under Subsection
(1)
that
exceeds $11,526,000.
Section 15. Section
63J-1-602.2
is amended to read:
63J-1-602.2
Effective
05/06/26
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 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)
The Judicial Council for compensation for special prosecutors, as provided in Section
77-10a-19
.
(40)
A state rehabilitative employment program, as provided in Section
78A-6-210
.
(41)
The Utah Geological Survey, as provided in Section
79-3-401
.
(42)
The Bonneville Shoreline Trail Program created under Section
79-5-503
.
(43)
Adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(44)
Indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah Indigent Defense
Commission.
(45)
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)
The State Tax Commission for reimbursing counties for deferrals in accordance with
Section
59-2-1802.5
.
(47)
The Veterinarian Education Loan Repayment Program created in Section
4-2-902
.
(48)
The Critical Minerals Council created by Section
79-10-301
.
Section 16. Section
79-2-201
is amended to read:
79-2-201
Effective
05/06/26
Partially Repealed
07/01/29
. Department of
Natural Resources created.
(1)
There is created the Department of Natural Resources.
(2)
The department comprises the following:
(a)
Board of Water Resources, created in Section
73-10-1.5
;
(b)
Board of Oil, Gas, and Mining, created in Section
40-6-4
;
(c)
Office of Energy Development, created in Section
79-6-401
;
(d)
Wildlife Board, created in Section
23A-2-301
;
(e)
Board of the Utah Geological Survey, created in Section
79-3-301
;
(f)
Water Development Coordinating Council, created in Section
73-10c-3
;
(g)
Division of Water Rights, created in Section
73-2-1.1
;
(h)
Division of Water Resources, created in Section
73-10-18
;
(i)
Division of Forestry, Fire, and State Lands, created in Section
65A-1-4
;
(j)
Division of Oil, Gas, and Mining, created in Section
40-6-15
;
(k)
Division of State Parks, created in Section
79-4-201
;
(l)
Division of Outdoor Recreation, created in Section
79-7-201
;
(m)
Division of Wildlife Resources, created in Section
23A-2-201
;
(n)
Utah Geological Survey, created in Section
79-3-201
;
(o)
Utah Outdoor Recreation Infrastructure Advisory Committee, created in Section
79-7-206
;
(p)
(i)
an advisory council that includes in the advisory council's duties advising on
state boating policy, authorized by Section
73-18-3.5
; or
(ii)
an advisory council that includes in the advisory council's duties advising on
off-highway vehicle use, authorized by Section
41-22-10
;
(q)
Wildlife Board Nominating Committee, created in Section
23A-2-302
;
(r)
Wildlife Regional Advisory Councils, created in Section
23A-2-303
;
(s)
Utah Watersheds Council, created in Section
73-10g-304
;
(t)
Public Lands Policy Coordinating Office created in Section
63L-11-201
;
and
(u)
the Great Salt Lake commissioner, appointed under Section
73-32-201
, and the
Office of the Great Salt Lake Commissioner, created in Section
73-32-301
.
; and
(v)
the Critical Minerals Council, created in Section
79-10-301
.
Section 17. Section
79-10-101
is enacted to read:
10. Critical Minerals Strategic Act
1. General Provisions
79-10-101
Effective
05/06/26
. Definitions.
As used in this chapter:
(1)
"Atlas" means a depository of geological data maintained in accordance with Part 5,
Critical Minerals Atlas.
(2)
"Center" means the Minerals for Industrial, National, and Economic Security Center
created in accordance with Part 6, Minerals for Industrial, National, and Economic
Security Center.
(3)
"Council" means the Critical Minerals Council created in Section
79-10-301
.
(4)
"Critical mineral" means a mineral identified by the United States Geological Survey or
the council as essential to the economic security of the state or national security.
(5)
"Critical minerals zone" means a critical minerals zone designated by the council under
Part 4, Critical Minerals Zone.
(6)
"Permit" means one of the following issued by a state agency:
(a)
a permit;
(b)
a plan;
(c)
a license;
(d)
an approval order; or
(e)
another administrative authorization.
Section 18. Section
79-10-201
is enacted to read:
2. State Critical Minerals Objectives and Policy
79-10-201
Effective
05/06/26
. State critical mineral objectives and policy.
(1)
The state's long-term objectives related to critical minerals are:
(a)
to capture 20% to 25% of United States domestic critical minerals demand;
(b)
to process within the state 50% of the critical minerals extracted from within the
state;
(c)
to reduce average permitting timelines to less than 18 months;
(d)
to establish and build out the Minerals for Industrial, National, and Economic
Security Center, as provided in Part 6, Minerals for Industrial, National, and
Economic Security Center; and
(e)
to secure federal designation of an entity within the state as a United States critical
minerals national laboratory.
(2)
The state's policy related to critical minerals is to:
(a)
pursue market-based solutions while using public policy to accelerate market
performance;
(b)
foster the long-term viability of extraction and processing operations;
(c)
foster the long-term health of marketplaces to ensure private parties can invest
confidently in the critical minerals industry;
(d)
maximize resources available across the state, including natural, talent, processing,
financial, and technological resources;
(e)
leverage the Utah System of Higher Education, including technical colleges, to create
a specialized talent pipeline for mining, geology, and processing;
(f)
create a positive regulatory framework, including streamlined permitting for critical
minerals processes;
(g)
create intrastate, interstate, and federal partnerships that leverage available resources
for state, regional, and national benefit;
(h)
accelerate development of critical minerals zones; and
(i)
support applied research partnerships between higher education, industry, and the
state that support commercialization.
(3)
State agencies, academia, and industry are encouraged to conduct activities consistent
with Subsections
(1)
and
(2)
.
(4)
This section does not create a cause of action against the state's or a state agency's action
that is inconsistent with Subsections
(1)
and
(2)
and does not waive governmental
immunity under Title 63G, Chapter 7, Governmental Immunity Act of Utah.
Section 19. Section
79-10-202
is enacted to read:
79-10-202
Effective
05/06/26
. Legislative review of objectives and policy.
The Natural Resources, Agriculture, and Environment Interim Committee shall annually
review the state's critical mineral objectives and policy under Section
79-10-201
and propose
any changes to the Legislature.
Section 20. Section
79-10-301
is enacted to read:
3. Critical Minerals Coordinating Council
79-10-301
Effective
05/06/26
. Critical Minerals Council created.
(1)
There is created within the Department of Natural Resources a mixed purpose board
known as the "Critical Minerals Council."
(2)
The council consists of the following 11 members:
(a)
the director of the Office of Energy Development, or the director's designee;
(b)
the director of the Division of Oil, Gas, and Mining, or the director's designee;
(c)
one of the following appointed by the governor:
(i)
the executive director of the Governor's Office of Economic Opportunity; or
(ii)
the executive director of the Nucleus Institute, created in Section
53H-16-202
;
(d)
a member of the House of Representatives, appointed by the speaker of the House of
Representatives;
(e)
a member of the Senate, appointed by the president of the Senate;
(f)
the president of the University of Utah, or the president's designee;
(g)
the president of an association representing Utah's mining industry, including
hardrock operators, industrial mineral operators, coal operators, mineral processing
operations, and mining services companies, appointed by the governor;
(h)
a representative from an organization designed to create jobs in Utah by expanding
international sales, attracting foreign investment, and facilitating international
partnerships, appointed by the governor;
(i)
a representative from a state land use authority, as defined in Section
79-10-401
,
appointed by the governor; and
(j)
two at-large members who represent a relevant industry, represent a state research
center, or have
expertise in environmental regulation, appointed by the members of
the council described in Subsections
(2)(a)
through
(i)
.
(3)
(a)
(i)
The director of the Office of Energy Development, or the director's designee,
is the co-chair of the council.
(ii)
The president of the Senate and the s
peaker of the House of Representatives shall
jointly appoint a co-chair of the council from members of the council.
(b)
The vice-chairs of the council are:
(i)
the director of the Division of Oil, Gas, and Mining, or the director's designee; and
(ii)
the individual appointed under Subsection
(2)(c)
.
(4)
(a)
The majority of the members constitutes a quorum of the council.
(b)
The majority vote of the members present when a quorum is present constitutes
action of the council.
(5)
The council shall meet:
(a)
at the time and place designated by the chairs; and
(b)
no less than once every month or as frequently as the council determines.
(6)
(a)
A member appointed under Subsections
(2)(g)
through
(j)
shall serve a term of
four years.
(b)
The appointing authority may appoint an individual to a position under Subsections
(2)(g)
through
(j)
to more than one term.
(c)
Notwithstanding Subsection
(6)(a)
, the council shall, at the time of appointment or
reappointment, adjust the length of terms to ensure that the terms of the members
appointed under Subsections
(2)(g)
through
(j)
are staggered so that approximately
half of the members appointed under Subsections
(2)(g)
through
(j)
are appointed
every two years.
(7)
(a)
A vacancy that occurs on the council for any reason shall be filled in the same
manner as the original appointment.
(b)
If an at-large representative vacates the position, the council shall appoint a new
member for the unexpired term of the vacated member.
(8)
A member may not receive compensation or benefits for the member's service, but may
receive per diem and travel expenses in accordance with:
(a)
Section
63A-3-106
;
(b)
Section
63A-3-107
; and
(c)
rules made by the Division of Finance in accordance with Sections
63A-3-106
and
63A-3-107
.
(9)
(a)
A council member who has, will have, or later acquires an interest, direct or
indirect, in a transaction with the council shall immediately disclose the nature and
extent of that interest in writing to the council as soon as the council member has
knowledge of the actual or prospective interest.
(b)
The council shall enter a disclosure described in this Subsection
(9)
upon the minutes
of the council.
(c)
Upon disclosure, that council member may participate in an action by the council
authorizing the transaction.
(10)
The Department of Natural Resources shall provide staff support to the council.
Section 21. Section
79-10-302
is enacted to read:
79-10-302
Effective
05/06/26
. Powers and duties of the council.
(1)
The council shall:
(a)
develop a strategic plan to prioritize activities and projects related to the exploration,
development, production, and processing of critical minerals in the state consistent
with the state's critical minerals objectives and policy as outlined in Section
79-10-201
;
(b)
ensure that efforts among Utah public, private, and academic partners regarding
critical minerals are coordinated efficiently and effectively;
(c)
act as a clearinghouse for information related to federal, state, or local grants and
determine whether a grant application is consistent with the strategic plan developed
under Subsection
(1)(a)
;
(d)
investigate and participate in studies of problems unique to the exploration,
development, production, and processing of critical minerals in the state;
(e)
oversee the development of the center in accordance with Part 6, Minerals for
Industrial, National, and Economic Security Center;
(f)
take actions consistent with this chapter to promote, protect, and stabilize the critical
minerals industry;
(g)
cooperate with local, state, or national organizations engaged in activities similar to
those of the council;
(h)
partner with other western states for the development of critical minerals mining and
processing capabilities;
(i)
accept grants, donations, or gifts for use consistent with this chapter;
(j)
catalyze critical minerals extraction and processing for industries in the state;
(k)
accelerate development of critical minerals zones in the state for extraction and
processing of critical minerals;
(l)
identify transportation and logistics needs and strategic investments to facilitate
high-capacity, efficient handling of critical minerals; and
(m)
advise the Legislature about the need, if any, for legislative action.
(2)
The council may enter into agreements necessary to fulfill the council's duties.
(3)
The council may make rules, in accordance with Title 63G, Chapter 3, Utah
Administrative Rulemaking Act, creating a dispute resolution process to resolve
conflicts between agencies or private entities represented by a member of the council.
(4)
(a)
The council may organize standing or ad hoc committees that operate in
accordance with guidelines established by the council, regarding specific state and
industry needs related to critical minerals development, including:
(i)
education and workforce needs;
(ii)
research and commercialization;
(iii)
entrepreneurship and investment;
(iv)
aerospace and defense requirements;
(v)
logistics and infrastructure;
(vi)
international trade; or
(vii)
other needs related to critical minerals development.
(b)
The council may appoint a member of a standing or ad hoc committee that is not a
member of the council.
(5)
(a)
The council shall report annually by no later than October 1 to the Natural
Resources, Agriculture, and Environment Interim Committee.
(b)
The report required by this Subsection
(5)
shall include information regarding:
(i)
the state's progress towards the objectives described in Subsection
79-10-201(1)
;
(ii)
critical minerals zones as required by Section
79-10-402
;
(iii)
the state's progress towards development of the center, including the center's
activities and fiscal needs; and
(iv)
the Critical Minerals Development Account required by Section
79-10-701
.
(6)
Notwithstanding the other provisions of this chapter, the council may not:
(a)
interfere with or impair the statutory authority of a state agency to issue a permit; or
(b)
vote on an individual permit.
Section 22. Section
79-10-303
is enacted to read:
79-10-303
Effective
05/06/26
. Areas for coordination.
(1)
Council members are designated as area leads as provided in this section. In conducting
the council's business, the council may assign a council member who is an area lead to
coordinate on an issue within the council member's area.
(2)
The council shall ensure:
(a)
the coordination of state policy with federal policy; and
(b)
the development of infrastructure within the state related to critical minerals.
(3)
(a)
The director of the Division of Oil, Gas, and Mining, or the director's designee,
shall address regulation and permitting and coordinate with state agencies related to:
(i)
permitting for extraction or reclamation projects; and
(ii)
information gathering for extraction or reclamation projects.
(b)
In coordinating under this Subsection
(3)
, the director of the Division of Oil, Gas,
and Mining, or the director's designee, shall at a minimum coordinate with:
(i)
the Department of Environmental Quality; and
(ii)
the Utah Geological Survey.
(4)
(a)
The council member appointed under Subsection
79-10-301(2)(c)
shall address
incentives and critical minerals zones and coordinate:
(i)
implementation of state tax incentives;
(ii)
domestic recruitment;
(iii)
foreign investment;
(iv)
accessing federal appropriations and other federal funding sources; and
(v)
defense or national security requirements.
(b)
In coordinating under this Subsection
(4)
, the council member appointed under
Subsection
79-10-301(2)(c)
shall at a minimum coordinate with:
(i)
the council member appointed under Subsection
79-10-301(2)(h)
; and
(ii)
public and private entities that may act as a liaison with federal agencies that may
provide funding for critical minerals.
(5)
(a)
The council member representing the University of Utah shall coordinate issues
related to innovation including:
(i)
workforce training and talent pipelines;
(ii)
pilot technology testing;
(iii)
research and development; and
(iv)
industry concerns.
(b)
In coordinating under this Subsection
(5)
, the council member representing the
University of Utah shall at a minimum coordinate with:
(i)
the center;
(ii)
other institutions of higher education, including
Utah State University;
(iii)
an association representing Utah's mining industry, including hardrock operators,
industrial mineral operators, coal operators, mineral processing operations, and
mining services companies; and
(iv)
the aerospace and defense industry.
Section 23. Section
79-10-401
is enacted to read:
4. Critical Minerals Zone
79-10-401
Effective
05/06/26
. Definitions.
As used in this part:
(1)
"Base taxable value" means the value of property within a critical minerals zone, as
shown on the assessment roll last equalized before the creation of the critical minerals
zone.
(2)
"Community reinvestment agency" means the same as that term is defined in Section
17C-1-102
.
(3)
"Community reinvestment project area" means a project area under a community
reinvestment project area plan as defined in Section
17C-1-102
.
(4)
"Property tax differential" means the difference between:
(a)
the amount of property tax revenues generated each tax year by all taxing entities
from a critical minerals zone, using the current assessed value of the property; and
(b)
the amount of property tax revenues that would be generated from that same area
using the base taxable value of the property.
(5)
"Property tax differential revenue" means revenue generated based on the property tax
differential.
(6)
"State land use authority" 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 School and Institutional Trust Lands Administration created in Section
53C-1-201
;
or
(d)
any other land use authority created by the state that has jurisdiction over state lands.
Section 24. Section
79-10-402
is enacted to read:
79-10-402
Effective
05/06/26
. Council responsibilities and powers.
(1)
The council shall:
(a)
establish and implement:
(i)
processes for designating critical minerals zones; and
(ii)
criteria for evaluating proposed critical minerals zones;
(b)
consult with state land use authorities regarding:
(i)
identification of state lands suitable for critical minerals extraction or processing;
(ii)
designation of critical minerals zones; and
(iii)
opportunities for coordinated development of extraction or processing projects
on state lands;
(c)
assess and address potential public health impacts of critical minerals zones;
(d)
report annually by October 1 to the Natural Resources, Agriculture, and Environment
Interim Committee regarding:
(i)
infrastructure needs related to extraction and processing of critical minerals;
(ii)
the status of designated critical minerals zones; and
(iii)
recommendations for how the property tax differential revenue collected under
this section should be divided and distributed between the state, counties, and
municipalities; and
(e)
negotiate with the applicable county or municipality regarding the distribution of
property tax differential revenue.
(2)
The council may enter agreements with state land use authorities to address the
implementation of critical minerals zones and the administration of property tax
differential revenue.
Section 25. Section
79-10-403
is enacted to read:
79-10-403
Effective
05/06/26
. Critical minerals zones designated.
(1)
(a)
Except as provided in Subsection
(1)(b)
, a county or municipality may not offer
financial incentives for a critical minerals extraction or processing project that is not
located within a designated critical minerals zone.
(b)
Subsection
(1)(a)
does not apply to a critical minerals extraction or processing
project for which a project area plan has been approved before May 6, 2026.
(2)
A county or municipality may:
(a)
pass a resolution declaring an intent to establish within the county or municipality
boundaries a critical minerals zone;
(b)
enter into an interlocal agreement with the council outlining each parties'
responsibilities relating to a critical minerals zone; and
(c)
apply to the council for the designation of a critical minerals zone by submitting:
(i)
a description of the proposed boundaries of the critical minerals zone;
(ii)
an assessment of existing critical minerals extraction or processing infrastructure
within and proximate to the proposed critical minerals zone;
(iii)
a development plan that includes:
(A)
proposed critical minerals extraction or processing projects;
(B)
anticipated infrastructure improvements;
(C)
projected economic benefits to the county; and
(D)
evidence of local support including any interlocal agreement entered into
between the county or municipality and the council, as applicable;
(iv)
if the applicant is a municipality, evidence of coordination with the county in
which the proposed critical minerals zone is located, including any interlocal
agreement entered into between the county or municipality and the council, as
applicable;
(v)
if the applicant is a county and any portion of the proposed critical minerals zone
is within the boundaries of a municipality, evidence of an agreement with the
municipality regarding the establishment of the critical minerals zone; and
(vi)
any other information required by the council.
(3)
A state land use authority may:
(a)
propose a critical minerals zone within lands under the state land use authority's
jurisdiction; and
(b)
apply to the council for the designation of a critical minerals zone by submitting:
(i)
a description of the proposed boundaries of the critical minerals zone;
(ii)
an assessment of existing critical minerals extraction or processing infrastructure
within and proximate to the proposed critical minerals zone;
(iii)
a development plan that includes:
(A)
proposed critical minerals extraction or processing projects;
(B)
anticipated infrastructure improvements; and
(C)
projected economic benefits;
(iv)
evidence that the proposed critical minerals zone is consistent with applicable
land use plans and regulations; and
(v)
any other information required by the council.
(4)
The council shall:
(a)
approve an application for a critical minerals zone designation if the application
demonstrates:
(i)
the proposed critical minerals zone includes land suitable for critical minerals
extraction or processing development based on:
(A)
adequate transportation access; and
(B)
sufficient land area for proposed development; and
(ii)
the critical minerals zone plan:
(A)
aligns with state critical minerals objectives and policy under Section
79-10-201
;
(B)
includes realistic timelines and milestones;
(C)
identifies specific infrastructure improvements; and
(D)
quantifies projected economic benefits;
(b)
make a determination on an application within 60 days of submission;
(c)
provide written notice to the applicant explaining the basis for approval or denial;
(d)
if a critical minerals zone overlaps with an area designated by a community
reinvestment agency as a community reinvestment project area as of May 6, 2026,
enter into an agreement with the community reinvestment agency to determine the
percentage division of the property tax differential between:
(i)
the Critical Minerals Development Account; and
(ii)
the community reinvestment agency; and
(e)
if a critical minerals zone overlaps with a project area of a state land use authority,
enter into an agreement with the state land use authority to determine the percentage
division of the property tax differential between:
(i)
the Critical Minerals Development Account; and
(ii)
the state land use authority.
(5)
Within 30 days after the council designates a critical minerals zone:
(a)
the county auditor shall certify to the council the base taxable value of property
within the critical minerals zone; and
(b)
the county shall transmit to the council copies of the property tax assessment rolls for
the property within the critical minerals zone.
(6)
(a)
Each year, the county auditor shall:
(i)
determine the amount of the property tax differential for the critical minerals zone
by comparing:
(A)
the current assessed value of property within the critical minerals zone; and
(B)
the base taxable value of property within the critical minerals zone;
(ii)
inform the county treasurer of the property tax differential amount; and
(iii)
provide notice to the council of the amount calculated under this Subsection
(6)(a)
.
(b)
The county treasurer shall transfer the property tax differential to the council for
deposit into the Critical Minerals Development Account created in Section
79-10-701
,
subject to any agreements entered into under Subsections
(4)(d)
and
(4)(e)
.
(c)
The county treasurer shall make a distribution required under this section:
(i)
at the same time as regular annual property tax distributions; and
(ii)
using the same method as other property tax distributions.
(d)
For property tax differential not subject to Subsection
(4)(d)
or
(4)(e)
, the council
may enter into agreements with taxing entities regarding the allocation of the
property tax differential.
Section 26. Section
79-10-501
is enacted to read:
5. Critical Minerals Atlas
79-10-501
Effective
05/06/26
. Critical Minerals Atlas created -- Processes to be
developed.
(1)
(a)
The Division of Oil, Gas, and Mining shall lead a joint effort with the Utah
Geological Survey and Office of Energy Development to organize and maintain a
clearinghouse of geological data related to critical minerals known as the "Critical
Minerals Atlas."
(b)
The purpose of the atlas is to:
(i)
compile reliable data that can be used by:
(A)
the council, including the council using the data in developing the strategic
plan required under Subsection
79-10-302(1)
;
(B)
other government agencies;
(C)
academia; and
(D)
private entities; and
(ii)
reconcile differences in the data submitted to the atlas.
(2)
(a)
The agencies described in Subsection
(1)(a)
shall:
(i)
develop a process by which a state agency, state institution of higher education, or
private entity, including a nonprofit entity, may submit information to the atlas;
(ii)
recommend which state agencies and state institutions of higher education should
be required to submit data to the atlas;
(iii)
develop a process by which differences in the data submitted to the atlas may be
reconciled; and
(iv)
develop policies consistent with Title 63G, Chapter 2, Government Records
Access and Management Act, related to confidentiality of information submitted
to the atlas.
(b)
The Division of Oil, Gas, and Mining shall report the processes, recommendations,
and policies described in Subsection
(2)(a)
to the Natural Resources, Agriculture, and
Environment Interim Committee by no later than October 1, 2026.
Section 27. Section
79-10-601
is enacted to read:
6. Minerals for Industrial, National, and Economic Security Center
79-10-601
Effective
05/06/26
. Minerals for Industrial, National, and Economic
Security Center process for creation -- Governance.
(1)
There is created under the general supervision of the council a center known as the
"Minerals for Industrial, National, and Economic Security Center," to serve the
objectives described in Section
79-10-602
.
(2)
The council shall create a plan and budget for the center that address:
(a)
the governance of the center;
(b)
the operations of the center;
(c)
how the creation and activities of the center are to be funded; and
(d)
other issues the council determines are relevant to the governance and operations of
the center.
(3)
The council shall report the council's development of a plan and budget under this
section to:
(a)
the Executive Appropriations Committee by no later than the 2026 September
meeting of the Executive Appropriations Committee; and
(b)
the Natural Resources, Agriculture, and Environment Interim Committee by no later
than the 2026 October interim meeting of the Natural Resources, Agriculture, and
Environment Interim Committee.
Section 28. Section
79-10-602
is enacted to read:
79-10-602
Effective
05/06/26
. Center objectives.
The center shall:
(1)
serve as the state's primary partner for issues related to developing critical mineral
extraction and processing from research to commercialization, including:
(a)
workforce training;
(b)
the testing and piloting of technology;
(c)
federal grant coordination; and
(d)
development of processing capacity;
(2)
coordinate the center's operations with the strategic plan established by the council in
accordance with Subsection
79-10-302(1)
;
(3)
partner with industry and academia to:
(a)
develop processing and separation processes;
(b)
provide technology benchmarking and performance validation;
(c)
provide pilot-scale demonstrations and scale-up;
(d)
integrate physical, chemical, electrochemical, and thermal processing; and
(e)
provide for autonomous sampling and real-time analysis; and
(4)
lay groundwork for securing federal designation of an entity within the state as a United
States critical minerals national laboratory.
Section 29. Section
79-10-701
is enacted to read:
7. Fiscal Matters
79-10-701
Effective
05/06/26
. Critical Minerals Development Account.
(1)
There is created within the General Fund a restricted account known as the "Critical
Minerals Development Account."
(2)
Subject to appropriation, the council shall administer the Critical Minerals Development
Account for the purposes described in Subsection
(5)
.
(3)
The Critical Minerals Development Account consists of:
(a)
revenue deposited into the Critical Minerals Development Account under Section
79-10-403
;
(b)
money appropriated by the Legislature;
(c)
federal money;
(d)
donations or grants from public or private entities; and
(e)
interest and other earnings earned on money in the Critical Minerals Development
Account.
(4)
(a)
The Critical Minerals Development Account shall earn interest.
(b)
The state treasurer shall invest account money in accordance with Title 51, Chapter
7, State Money Management Act, and credit the interest and earnings from the
investments to the Critical Minerals Development Account.
(5)
Subject to appropriation, the council may use account money to:
(a)
pay the costs of administering this chapter;
(b)
fund the operations of the center in accordance with the plan and budget developed
by the council in accordance with Section
79-10-601
;
(c)
facilitate critical minerals extraction and processing infrastructure development
within the state, including funding research, site selection, permitting, public
outreach, and other activities related to the development of critical minerals
extraction or processing infrastructure;
(d)
provide matching funds for federal critical minerals grants;
(e)
support critical minerals workforce development programs; and
(f)
provide incentives for critical minerals extraction or processing projects.
(6)
The council shall include a report of how money from the Critical Minerals
Development Account was used in the annual report described in Section
79-10-302
.
Section 30.
Repealer.
Title.
Creation of Infrastructure and Economic Diversification Investment
Account.
New Severance Tax Revenue Special Revenue Fund.
Section 31.
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 31(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
HIGHER EDUCATION
UTAH STATE UNIVERSITY
ITEM 1
Utah State University - Education and General
From State Reinvestment Restricted Account, One-time
400,000
Research
400,000
The Legislature intends that Utah State
University shall use the money appropriated to Utah
State University under this item for purpose of
conducting the Uintah Basin Air Quality Research
Project as required by Section 53H-4-316.
Subsection 31(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 2
General Fund Restricted - State Reinvestment Restricted Account
From Infrastructure and Economic Diversification
Investment Account, One-time
14,016,200
State Reinvestment Restricted Account
14,016,200
The Legislature intends that the Division of
Finance transfer any balances remaining in the
Infrastructure and Economic Diversification Investment
Account after fiscal year 2026 closeout to the State
Reinvestment Restricted Account.
Section 32.
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 32(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
HIGHER EDUCATION
UTAH STATE UNIVERSITY
ITEM 3
Utah State University - Education and General
From State Reinvestment Restricted Account
400,000
Research
400,000
The Legislature intends that Utah State
University shall use the money appropriated to Utah
State University under this item for purpose of
conducting the Uintah Basin Air Quality Research
Project as required by Section 53H-4-316.
NATURAL RESOURCES, AGRICULTURE, AND ENVIRONMENTAL QUALITY
DEPARTMENT OF NATURAL RESOURCES
ITEM 4
Department of Natural Resources - Critical Minerals Council
From State Reinvestment Restricted Account
1,000,000
From State Reinvestment Restricted Account, One-time
10,000,000
Critical Minerals Council
11,000,000
Section 33.
Effective Date.
(1)
Except as provided in Subsection (2), this bill takes effect
May 6, 2026
.
(2)
The actions affecting the following sections take effect on
July 1, 2026
:
(a)
Section 51-9-202
Effective
07/01/26
;
(b)
Section 51-9-301
;
(c)
Section 51-9-302
Effective
07/01/26
;
(d)
Section 51-9-303
;
(e)
Section 51-9-305
Effective
07/01/26
;
(f)
Section 51-9-307
;
(g)
Section 51-9-1001
Effective
07/01/26
;
(h)
Section 51-9-1002
Effective
07/01/26
; and
(i)
Section 51-9-1003
Effective
07/01/26
.
Section 34.
Retrospective operation.
The following sections have retrospective operation to
January 1, 2026
:
(1)
Section 40-6-24
Effective
05/06/26
Applies beginning
01/01/26
Repealed
07/01/37
;
(2)
Section 59-2-924
Effective
05/06/26
Applies beginning
01/01/26
;
(3)
Section 59-5-115
Effective
05/06/26
Applies beginning
01/01/26
;
(4)
Section 59-5-116
Effective
05/06/26
Applies beginning
01/01/26
;
(5)
Section 59-5-119
Effective
05/06/26
Applies beginning
01/01/26
; and
(6)
Section 59-5-215
Effective
05/06/26
Applies beginning
01/01/26
.
Section 35.
Coordinating S.B. 254 with H.B. 373.
If S.B. 254, Critical Minerals Amendments, and H.B. 373, Higher Education Innovation,
both pass and become law, the Legislature intends that, on July 1, 2026:
(1) Subsection 53H-8-211(4)(a)(ii)(C) enacted in H.B. 373 be amended to read:
"(C) ensure that the eligible research areas described in Subsection (4)(a)(ii)(A) reflect the
state's priority industry clusters and public policy needs and include critical minerals projects
that are consistent with the strategic plan of the Critical Minerals Council created under
Subsection 79-10-302(1);"; and
(2) Subsection 53H-8-211(5)(a) enacted in H.B. 373 be amended to read:
"(a) the eligible research areas described in Subsection (4)(a)(ii) and the extent to which the
areas reflect the state's priority industry clusters and public policy needs, including critical
minerals projects described in Subsection (4)(a)(ii)(C); and".
3-10-26 2:25 PM