Section 1. Section 51-7-2 is amended to read:51-7-2Effective 07/01/26Partially Repealed 07/01/28. Exemptions from chapter.(1)Except as provided in Subsection (2), the following funds are exempt from this chapter:(a)funds invested in accordance with the participating employees' designation or direction pursuant to a public employees' deferred compensation plan established and operated in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;(b)funds of the Utah State Retirement Board;(c)funds of the Utah Housing Corporation;(d)endowment funds of higher education institutions, including funds of the Higher Education Student Success Endowment, created in Section 53H-8-402;(e)permanent and other land grant trust funds established pursuant to the Utah Enabling Act and the Utah Constitution;(f)the State Post-Retirement Benefits Trust Fund;(g)the funds of the Utah Educational Savings Plan;(h)funds of the permanent state trust fund created by and operated under Utah Constitution, Article XXII, Section 4;(i)the funds in the Navajo Trust Fund;(j)the funds in the Radioactive Waste Perpetual Care and Maintenance Account;(k)the funds in the Employers' Reinsurance Fund;(l)the funds in the Uninsured Employers' Fund;(m)the Utah State Developmental Center Long-Term Sustainability Fund, created in Section 26B-1-331;(n)the funds in the Risk Management Fund created in Section 63A-4-201;(o)the Utah fund of funds created in Section 63N-6-401;(p)the funds deposited into the Utah Homes Investment Program from the Transportation Infrastructure General Fund Support Subfund created in Section 72-2-134;(q)subject to Subsection 67-4-19(2), the portion of the funds in the following accounts invested by the state treasurer in precious metals:(i)the State Disaster Recovery Restricted Account, created in Section 53-2a-603;(ii)the General Fund Budget Reserve Account, created in Section 63J-1-312;(iii)the Income Tax Fund Budget Reserve Account, created in Section 63J-1-313; and(iv)the Medicaid Growth Reduction and Budget Stabilization Account, created in Section 63J-1-315;(r)except as provided in Section 11-13-533, the funds of a public agency insurance mutual as that term is defined in Subsection 31A-1-103(7)(a);(s)the State Sovereignty Fund created in Section 51-13-201; and(t)the funds in the Opioid Litigation Proceeds Fund, created in Section 51-9-801.; and(u)the Public Education Economic Stabilization Trust Fund, created in Section 53F-9-207.(2)Except for the funds of the Utah State Retirement Board and the Utah Educational Savings Plan, the funds described in Subsection (1) are not exempt from Subsections 51-7-14(2) and (3).(3)Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that administers a fund described in Subsection (1) may hold a closed meeting to discuss the sale or purchase of identifiable securities, investment funds, or investment contracts.(4)A paper, electronic, or other depiction or record of information relating to investment activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2, Government Records Access and Management Act.

Section 2. Section 53F-9-204 is amended to read:53F-9-204Effective 07/01/26. Public Education Economic Stabilization Restricted Account.(1)There is created within the Uniform School Fund a restricted account known as the "Public Education Economic Stabilization Restricted Account."(2)(a)Except as provided in Subsection (2)(b), the account shall be funded from the following revenue sources:(i)15% of the difference between, as determined by the Office of the Legislative Fiscal Analyst:(A)the estimated amount of ongoing Income Tax Fund and Uniform School Fund revenue available for the Legislature to appropriate for the next fiscal year; and(B)the amount of ongoing appropriations from the Income Tax Fund and Uniform School Fund in the current fiscal year; and(ii)other appropriations as the Legislature may designate.(b)If the appropriation described in Subsection (2)(a) would cause the ongoing appropriations to the account to exceed 11% of Uniform School Fund appropriations described in Section 53F-9-201.1 for the same fiscal year, the Legislature shall appropriate only those funds necessary to ensure that the ongoing appropriations to the account equal 11% of Uniform School Fund appropriations for that fiscal year.(3)Subject to the availability of ongoing appropriations to the account, in accordance with Utah Constitution, Article X, Section 5, Subsection (4), the ongoing appropriation to the account shall be used to fund:(a)except for a year described in Subsection (3)(b) or (c), :(i)for a fiscal year beginning on or after July 1, 2027, an appropriation of $350,000,000 to the Public Education Economic Stabilization Trust Fund established in Section 53F-9-207; and(ii)using remaining funds after the use described in Subsection (3)(a)(i), for the one-time appropriations to the public education system, including at least $65,000,000 to the Catalyst Center Grant Program described in Section 53E-3-507.1;(b)the Minimum School Program for a year in which Income Tax Fund revenue and Uniform School Fund revenue are insufficient to fund:(i)ongoing appropriations to the public education system; and(ii)enrollment growth and inflation estimates, as defined in Section 53F-9-201.1; and(c)the minimum basic local amount as defined in Section 53F-2-301 for a year in which the minimum basic tax rate, as defined in Section 53F-2-301, is insufficient to generate the amount described in Subsection 53F-2-301(2)(a).(4)(a)The account shall earn interest.(b)All interest earned on account money shall be deposited in the account.(5)On or before December 31, 2023, and every three years thereafter, the Office of the Legislative Fiscal Analyst shall:(a)review the percentages described in Subsections (2)(a)(i) and (2)(b); and(b)recommend to the Executive Appropriations Committee any changes based on the review described in Subsection (5)(a).(6)In preparing budget bills for a given fiscal year, the Executive Appropriations Committee shall make the one-time appropriations described in Subsection (3)(a) by appropriating at least the lesser of 10% of the total amount of the one-time appropriations to:(a)at least the lesser of 10% of the total amount of the one-time appropriations or the cost of providing 32 paid professional hours for teachers in accordance with Section 53F-7-203;(b)the amount to make the distribution required under Section 53F-2-527;(c)the cost of the Stipends for Future Educators Grant Program described in Section 53F-5-223; and(d)the cost of the Rural School Sports Facilities Grant Program described in Section 53F-10-303.(7)No later than October 15 of each year, the state board shall report to the Office of the Legislative Fiscal Analyst an estimated cost for each of the one-time appropriations described in Subsection (6).

Section 3. Section 53F-9-207 is enacted to read:53F-9-207Effective 07/01/26. Public Education Economic Stabilization Trust Fund.(1)As used in this section:(a)"Income" means the revenues received by the state treasurer from investments of the trust fund principal.(b)"Trust fund" means the Public Education Economic Stabilization Trust Fund that this section creates.(2)This section creates the Public Education Economic Stabilization Trust Fund.(3)The trust fund consists of:(a)appropriations from the Public Education Economic Stabilization Restricted Account described in Subsection 53F-9-204(3);(b)other appropriations the Legislature makes to the trust fund;(c)income; and(d)revenue received from other sources.(4)The Division of Finance shall account for the receipt and expenditures of trust fund money.(5)(a)The state treasurer shall invest the assets of the trust fund, as a prudent investor would, with the primary goal of providing for the stability, income, and growth of the principal.(b)Nothing in this section requires a specific outcome in investing.(c)The state treasurer may deduct any administrative costs incurred in managing trust fund assets from earnings before distributing the trust fund assets.(d)(i)The state treasurer may employ professional asset managers to assist in the investment of assets of the trust fund.(ii)The treasurer may only provide compensation to asset managers from earnings generated by the trust fund's investments.(e)(i)The trust fund shall earn interest.(ii)The state treasurer shall deposit all interest or other income earned from investment of the trust fund back into the trust fund.(6)The Legislature may make appropriations related to public education from the trust fund or otherwise provide authorized public education uses of money in the trust fund.

Section 4. Effective Date.This bill takes effect on July 1, 2026.