Section 1. Section 63J-1-601 is amended to read:63J-1-601. End of fiscal year -- Unexpended balances -- Funds not to be closed out -- Pending claims -- Transfer of amounts from item of appropriation -- Nonlapsing accounts and funds -- Institutions of higher education to report unexpended balances.(1)As used in this section:(a)"Education grant subrecipient" means a nonfederal entity that:(i)receives a subaward from the State Board of Education to carry out at least part of a federal or state grant program; and(ii)does not include an individual who is a beneficiary of the federal or state grant program.(b)"Transaction control number" means the unique numerical identifier established by the Department of Health and Human Services to track each medical claim and indicates the date on which the claim is entered.(2)OnExcept as provided in Section 63J-1-604, on or before August 31 of each fiscal year, the director of the Division of Finance shall close out to the proper fund or account all remaining unexpended and unencumbered balances of appropriations made by the Legislature, except:(a)those funds classified under Title 51, Chapter 5, Funds Consolidation Act, as:(i)enterprise funds;(ii)internal service funds;(iii)fiduciary funds;(iv)capital projects funds;(v)discrete component unit funds;(vi)debt service funds; and(vii)permanent funds;(b)those appropriations from a fund or account or appropriations to a program that are designated as nonlapsing under Section 63J-1-602.1 or 63J-1-602.2;(c)expendable special revenue funds, unless specifically directed to close out the fund in the fund's enabling legislation;(d)acquisition and development funds appropriated to the Division of State Parks or the Division of Outdoor Recreation;(e)funds encumbered to pay purchase orders issued before May 1 for capital equipment if delivery is expected before June 30; and(f)unexpended and unencumbered balances of appropriations that meet the requirements of Section 63J-1-603.(3)(a)Liabilities and related expenses for goods and services received on or before June 30 shall be recognized as expenses due and payable from appropriations made before June 30.(b)The liability and related expense shall be recognized within time periods established by the Division of Finance but shall be recognized not later than August 31.(c)Liabilities and expenses not so recognized may be paid from regular departmental appropriations for the subsequent fiscal year, if these claims do not exceed unexpended and unencumbered balances of appropriations for the years in which the obligation was incurred.(d)Amounts may not be transferred from an item of appropriation of any department, institution, or agency into the Capital Projects Fund or any other fund without the prior express approval of the Legislature.(4)(a)For purposes of this chapter, a claim processed under the authority of Title 26B, Chapter 3, Health Care - Administration and Assistance:(i)is not a liability or an expense to the state for budgetary purposes, unless the Division of Integrated Healthcare receives the claim within the time periods established by the Division of Finance under Subsection (3)(b); and(ii)is not subject to Subsection (3)(c).(b)The transaction control number that the Division of Integrated Healthcare records on each claim invoice is the date of receipt.(5)(a)For purposes of this chapter, a claim processed in accordance with Title 35A, Chapter 13, Utah State Office of Rehabilitation Act:(i)is not a liability or an expense to the state for budgetary purposes, unless the Utah State Office of Rehabilitation receives the claim within the time periods established by the Division of Finance under Subsection (3)(b); and(ii)is not subject to Subsection (3)(c).(b)(i)The Utah State Office of Rehabilitation shall mark each claim invoice with the date on which the Utah State Office of Rehabilitation receives the claim invoice.(ii)The date described in Subsection (5)(b)(i) is the date of receipt for purposes of this section.(6)(a)For purposes of this chapter, a reimbursement request received from an education grant subrecipient:(i)is not a liability or expense to the state for budgetary purposes, unless the State Board of Education receives the claim within the time periods described in Subsection (3)(b); and(ii)is not subject to Subsection (3)(c).(b)The transaction control number that the State Board of Education records on a claim invoice is the date of receipt.(7)Any balance from an appropriation to a state institution of higher education that remains unexpended at the end of the fiscal year shall be reported to the Division of Finance by the September 1 following the close of the fiscal year.

Section 2. Section 63J-1-602.1 is amended to read:63J-1-602.1. List of nonlapsing appropriations from accounts and funds.Appropriations made from the following accounts or funds are nonlapsing:(1)The Native American Repatriation Restricted Account created in Section 9-9-407.(2)Certain money payable for expenses of the Pete Suazo Utah Athletic Commission, as provided under Title 9, Chapter 23, Pete Suazo Utah Athletic Commission Act.(3)Funds collected for directing and administering the C-PACE district created in Section 11-42a-106.(4)Money received by the Utah Inland Port Authority, as provided in Section 11-58-105.(5)The Commerce Electronic Payment Fee Restricted Account created in Section 13-1-17.(6)The Division of Air Quality Oil, Gas, and Mining Restricted Account created in Section 19-2a-106.(7)The Division of Water Quality Oil, Gas, and Mining Restricted Account created in Section 19-5-126.(8)State funds for matching federal funds in the Children's Health Insurance Program as provided in Section 26B-3-906.(9)Funds collected from the program fund for local health department expenses incurred in responding to a local health emergency under Section 26B-7-111.(10)The Technology Development Restricted Account created in Section 31A-3-104.(11)The Criminal Background Check Restricted Account created in Section 31A-3-105.(12)The Captive Insurance Restricted Account created in Section 31A-3-304, except to the extent that Section 31A-3-304 makes the money received under that section free revenue.(13)The Title Licensee Enforcement Restricted Account created in Section 31A-23a-415.(14)The Health Insurance Actuarial Review Restricted Account created in Section 31A-30-115.(15)The State Mandated Insurer Payments Restricted Account created in Section 31A-30-118.(16)The Insurance Fraud Investigation Restricted Account created in Section 31A-31-108.(17)The Underage Drinking Prevention Media and Education Campaign Restricted Account created in Section 32B-2-306.(18)The School Readiness Restricted Account created in Section 35A-15-203.(19)Money received by the Utah State Office of Rehabilitation for the sale of certain products or services, as provided in Section 35A-13-202.(20)The Property Loss Related to Homelessness Compensation Enterprise Fund created in Section 35A-16-212.(21)The Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.(22)The Oil and Gas Administrative Penalties Account created in Section 40-6-11.(23)The Oil and Gas Conservation Account created in Section 40-6-14.5.(24)The Division of Oil, Gas, and Mining Restricted account created in Section 40-6-23.(25)The Electronic Payment Fee Restricted Account created by Section 41-1a-121 to the Motor Vehicle Division.(26)The License Plate Restricted Account created by Section 41-1a-122.(27)The Motor Vehicle Enforcement Division Temporary Permit Restricted Account created by Section 41-3-110 to the State Tax Commission.(28)The State Disaster Recovery Restricted Account to the Division of Emergency Management, as provided in Section 53-2a-603.(29)The Disaster Response, Recovery, and Mitigation Restricted Account created in Section 53-2a-1302.(30)The Emergency Medical Services Critical Needs Account created in Section 53-2d-110.(31)The Department of Public Safety Restricted Account to the Department of Public Safety, as provided in Section 53-3-106.(32)The Utah Highway Patrol Aero Bureau Restricted Account created in Section 53-8-303.(33)The DNA Specimen Restricted Account created in Section 53-10-407.(34)The Technical Colleges Capital Projects Fund created in Section 53H-9-605.(35)The Higher Education Capital Projects Fund created in Section 53H-9-502.(36)A certain portion of money collected for administrative costs under the School Institutional Trust Lands Management Act, as provided under Section 53C-3-202.(37)The Public Utility Regulatory Restricted Account created in Section 54-5-1.5, subject to Subsection 54-5-1.5(4)(d).(38)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-3a-105.(39)Certain fines collected by the Division of Professional Licensing for violation of unlawful or unprofessional conduct that are used for education and enforcement purposes, as provided in Section 58-17b-505.(40)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-22-104.(41)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-55-106.(42)Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-56-3.5.(43)Certain fines collected by the Division of Professional Licensing for use in education and enforcement of the Security Personnel Licensing Act, as provided in Section 58-63-103.(44)The Relative Value Study Restricted Account created in Section 59-9-105.(45)The Cigarette Tax Restricted Account created in Section 59-14-204.(46)Funds paid to the Division of Real Estate for the cost of a criminal background check for a mortgage loan license, as provided in Section 61-2c-202.(47)Funds paid to the Division of Real Estate for the cost of a criminal background check for principal broker, associate broker, and sales agent licenses, as provided in Section 61-2f-204.(48)Certain funds donated to the Department of Health and Human Services, as provided in Section 26B-1-202.(49)Certain funds donated to the Division of Child and Family Services, as provided in Section 80-2-404.(50)Funds collected by the Office of Administrative Rules for publishing, as provided in Section 63G-3-402.(51)The Immigration Act Restricted Account created in Section 63G-12-103.(52)Money received by the military installation development authority, as provided in Section 63H-1-504.(53)The Unified Statewide 911 Emergency Service Account created in Section 63H-7a-304.(54)The Utah Statewide Radio System Restricted Account created in Section 63H-7a-403.(55)The Utah Capital Investment Restricted Account created in Section 63N-6-204.(56)The Motion Picture Incentive Account created in Section 63N-8-103.(57)Funds collected by the housing of state probationary inmates or state parole inmates, as provided in Subsection 64-13e-104(2).(58)Certain forestry and fire control funds utilized by the Division of Forestry, Fire, and State Lands, as provided in Section 65A-8-103.(59)The following funds or accounts created in Section 72-2-124:(a)Transportation Investment Fund of 2005;(b)Transit Transportation Investment Fund;(c)Cottonwood Canyons Transportation Investment Fund;(d)Active Transportation Investment Fund; and(e)Commuter Rail Subaccount.(60)The Amusement Ride Safety Restricted Account, as provided in Section 72-16-204.(61)Certain funds received by the Office of the State Engineer for well drilling fines or bonds, as provided in Section 73-3-25.(62)The Water Resources Conservation and Development Fund, as provided in Section 73-23-2.(63)Award money under the State Asset Forfeiture Grant Program, as provided under Section 77-11b-403.(64)Funds donated or paid to a juvenile court by private sources, as provided in Subsection 78A-6-203(1)(c).(65)Fees for certificate of admission created under Section 78A-9-102.(66)Funds collected for adoption document access as provided in Sections 81-13-103, 81-13-504, and 81-13-505.(67)Funds collected for indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent Defense Commission.(68)The Utah Geological Survey Restricted Account created in Section 79-3-403.(69)Revenue for golf user fees at the Wasatch Mountain State Park, Palisades State Park, and Green River State Park, as provided under Section 79-4-403.(70)Certain funds received by the Division of State Parks from the sale or disposal of buffalo, as provided under Section 79-4-1001.(71)The Unspent Balances Restricted Account created in Section 63J-1-504.

Section 3. Section 63J-1-604 is enacted to read:63J-1-604. Unspent Balances Restricted Account.(1)As used in this section:(a)(i)"Account balance transfer" means an amount in a fund or account at the close of a fiscal year that:(A)exceeds the amount statute allows to remain in the fund or account at the close of the fiscal year; and(B)statute directs be transferred to the General Fund at the close of a fiscal year.(ii)"Account balance transfer" does not include a lapsing balance.(b)"Excess account balance transfer" means the greater of:(i)the difference between:(A)a fund's or account's account balance transfer; and(B)the fund's or account's expected account balance transfer based on the most recent General Fund revenue estimate adopted by the Executive Appropriations Committee; and(ii)$0.(c)"General Fund revenue surplus" means the same as that term is defined in Section 63J-1-312.(d)"Lapsing balance" means any unexpended and unencumbered amount that would otherwise lapse to the General Fund under Section 63J-1-601.(2)There is created within the General Fund a restricted account known as the Unspent Balances Restricted Account.(3)Notwithstanding any other provision of law, beginning with fiscal year 2026, the Division of Finance shall comply with Subsection (4) for each fiscal year in which:(a)there is a General Fund revenue surplus; and(b)(i)there is not an Income Tax Fund revenue deficit; or(ii)if there is an Income Tax Fund revenue deficit, the General Fund revenue surplus is equal to or exceeds the Income Tax Fund deficit.(4)(a) Subject to Subsection (4)(b), for each fiscal year described in Subsection (3), the Division of Finance shall deposit into the restricted account:(i)50% of all lapsing balances; and(ii)50% of all excess account balance transfers.(b)The total amount transferred for a fiscal year in accordance with Subsection (4)(a) may not exceed $5,000,000.(5)Subject to legislative appropriation:(a)the Office of Child Care created in Section 35A-3-202 may use up to an amount equal to 50% of the funds in the restricted account for child care subsidies or grants as provided in Section 35A-3-209; and(b)the Department of Health and Human Services may use up to an amount equal to 50% of the funds in the restricted account as directed by the Utah Behavioral Health Commission created in Section 26B-5-702 to fulfill the commission's duties.

Section 4. Effective Date.This bill takes effect on May 6, 2026.