1     
INCOME TAX FUND AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jerry W. Stevenson

5     
House Sponsor: Val L. Peterson

6     

7     LONG TITLE
8     General Description:
9          This bill changes the name of the Education Fund to the Income Tax Fund.
10     Highlighted Provisions:
11          This bill:
12          ▸     changes the name of the Education Fund to the Income Tax Fund.
13     Money Appropriated in this Bill:
14          None
15     Other Special Clauses:
16          This bill provides a special effective date.
17     Utah Code Sections Affected:
18     AMENDS:
19          41-1a-422, as last amended by Laws of Utah 2021, Chapters 219, 280, and 378
20          51-5-4, as last amended by Laws of Utah 2013, Chapter 400
21          53B-7-703, as last amended by Laws of Utah 2021, Chapter 351
22          53B-8-112, as last amended by Laws of Utah 2020, Sixth Special Session, Chapter 13
23          53B-8-202, as last amended by Laws of Utah 2018, Chapter 281
24          53E-3-802, as last amended by Laws of Utah 2019, Chapter 186
25          53E-6-505, as last amended by Laws of Utah 2019, Chapter 186
26          53E-7-405, as enacted by Laws of Utah 2020, Fourth Special Session, Chapter 3
27          53F-2-203, as last amended by Laws of Utah 2020, Fifth Special Session, Chapter 14
28          53F-9-201, as last amended by Laws of Utah 2021, Chapters 336 and 382
29          53F-9-201.1 (Superseded 07/01/22), as last amended by Laws of Utah 2020, Fifth

30     Special Session, Chapter 13
31          53F-9-201.1 (Effective 07/01/22), as last amended by Laws of Utah 2021, Chapter 6
32          53F-9-204, as last amended by Laws of Utah 2020, Chapter 207
33          53F-9-301, as last amended by Laws of Utah 2019, Chapter 186
34          53F-9-302, as last amended by Laws of Utah 2019, Chapter 186
35          53F-9-303, as renumbered and amended by Laws of Utah 2018, Chapter 2
36          53F-9-304, as last amended by Laws of Utah 2020, Chapter 161
37          53F-9-305, as last amended by Laws of Utah 2019, Chapter 186
38          53F-9-306, as last amended by Laws of Utah 2019, Chapter 186
39          53F-9-307, as enacted by Laws of Utah 2021, Chapter 308
40          59-7-532, as last amended by Laws of Utah 2020, Chapter 207
41          59-7-614.1, as last amended by Laws of Utah 2016, Chapter 375
42          59-10-544, as last amended by Laws of Utah 2020, Chapter 207
43          59-10-1005, as last amended by Laws of Utah 2017, Chapter 148
44          59-10-1105, as last amended by Laws of Utah 2016, Chapter 375
45          59-13-202, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
46          63A-5b-406, as enacted by Laws of Utah 2020, Chapter 152
47          63J-1-102, as last amended by Laws of Utah 2019, Chapter 182
48          63J-1-205, as last amended by Laws of Utah 2021, Chapter 382
49          63J-1-217, as last amended by Laws of Utah 2021, Chapter 382
50          63J-1-312, as last amended by Laws of Utah 2019, Chapter 229
51          63J-1-313, as last amended by Laws of Utah 2015, Chapter 214
52          63J-3-103, as last amended by Laws of Utah 2021, Chapter 382
53          63J-7-102, as last amended by Laws of Utah 2018, Chapter 415
54     

55     Be it enacted by the Legislature of the state of Utah:
56          Section 1. Section 41-1a-422 is amended to read:
57          41-1a-422. Support special group license plates -- Contributor -- Voluntary

58     contribution collection procedures.
59          (1) As used in this section:
60          (a) (i) except as provided in Subsection (1)(a)(ii), "contributor" means a person who has
61     donated or in whose name at least $25 has been donated to:
62          (A) a scholastic scholarship fund of a single named institution;
63          (B) the Department of Veterans and Military Affairs for veterans programs;
64          (C) the Division of Wildlife Resources for the Wildlife Resources Account created in
65     Section 23-14-13, for conservation of wildlife and the enhancement, preservation, protection,
66     access, and management of wildlife habitat;
67          (D) the Department of Agriculture and Food for the benefit of conservation districts;
68          (E) the Division of Recreation for the benefit of snowmobile programs;
69          (F) the Guardian Ad Litem Services Account and the Children's Museum of Utah, with
70     the donation evenly divided between the two;
71          (G) the Boy Scouts of America for the benefit of a Utah Boy Scouts of America
72     council as specified by the contributor;
73          (H) No More Homeless Pets in Utah for distribution to organizations or individuals
74     that provide spay and neuter programs that subsidize the sterilization of domestic animals;
75          (I) the Utah Alliance of Boys and Girls Clubs, Inc. to provide and enhance youth
76     development programs;
77          (J) the Utah Association of Public School Foundations to support public education;
78          (K) the Utah Housing Opportunity Restricted Account created in Section 61-2-204 to
79     assist people who have severe housing needs;
80          (L) the Public Safety Honoring Heroes Restricted Account created in Section 53-1-118
81     to support the families of fallen Utah Highway Patrol troopers and other Department of Public
82     Safety employees;
83          (M) the Division of State Parks for distribution to organizations that provide support
84     for Zion National Park;
85          (N) the Firefighter Support Restricted Account created in Section 53-7-109 to support

86     firefighter organizations;
87          (O) the Share the Road Bicycle Support Restricted Account created in Section
88     72-2-127 to support bicycle operation and safety awareness programs;
89          (P) the Cancer Research Restricted Account created in Section 26-21a-302 to support
90     cancer research programs;
91          (Q) Autism Awareness Restricted Account created in Section 53F-9-401 to support
92     autism awareness programs;
93          (R) Humanitarian Service and Educational and Cultural Exchange Restricted Account
94     created in Section 9-17-102 to support humanitarian service and educational and cultural
95     programs;
96          (S) Upon renewal of a prostate cancer support special group license plate, to the Cancer
97     Research Restricted Account created in Section 26-21a-302 to support cancer research
98     programs;
99          (T) the Choose Life Adoption Support Restricted Account created in Section
100     62A-4a-608 to support programs that promote adoption;
101          (U) the National Professional Men's Basketball Team Support of Women and Children
102     Issues Restricted Account created in Section 62A-1-202;
103          (V) the Utah Law Enforcement Memorial Support Restricted Account created in
104     Section 53-1-120;
105          (W) the Children with Cancer Support Restricted Account created in Section
106     26-21a-304 for programs that provide assistance to children with cancer;
107          (X) the National Professional Men's Soccer Team Support of Building Communities
108     Restricted Account created in Section 9-19-102;
109          (Y) the Children with Heart Disease Support Restricted Account created in Section
110     26-58-102;
111          (Z) the Utah Intracurricular Student Organization Support for Agricultural Education
112     and Leadership Restricted Account created in Section 4-42-102;
113          (AA) the Division of Wildlife Resources for the Support for State-Owned Shooting

114     Ranges Restricted Account created in Section 23-14-13.5, for the creation of new, and
115     operation and maintenance of existing, state-owned firearm shooting ranges;
116          (BB) the Utah State Historical Society to further the mission and purpose of the Utah
117     State Historical Society;
118          (CC) the Motorcycle Safety Awareness Support Restricted Account created in Section
119     72-2-130;
120          (DD) the Transportation of Veterans to Memorials Support Restricted Account created
121     in Section 71-14-102;
122          (EE) clean air support causes, with half of the donation deposited into the Clean Air
123     Support Restricted Account created in Section 19-1-109, and half of the donation deposited
124     into the Clean Air Fund created in Section 59-10-1319;
125          (FF) the Latino Community Support Restricted Account created in Section 13-1-16;
126          (GG) the Allyson Gamble Organ Donation Contribution Fund created in Section
127     26-18b-101; or
128          (HH) public education on behalf of the Kiwanis International clubs, with the amount of
129     the donation required to cover the costs of issuing, ordering, or reordering Kiwanis support
130     special group plates, as determined by the State Tax Commission, deposited into the Kiwanis
131     Education Support Fund created in Section 53F-9-403, and all remaining donation amounts
132     deposited into the [Education Fund] Uniform School Fund.
133          (ii) (A) For a veterans special group license plate described in Subsection
134     41-1a-421(1)(a)(v) or 41-1a-422(4), "contributor" means a person who has donated or in whose
135     name at least a $25 donation at the time of application and $10 annual donation thereafter has
136     been made.
137          (B) For a Utah Housing Opportunity special group license plate, "contributor" means a
138     person who:
139          (I) has donated or in whose name at least $30 has been donated at the time of
140     application and annually after the time of application; and
141          (II) is a member of a trade organization for real estate licensees that has more than

142     15,000 Utah members.
143          (C) For an Honoring Heroes special group license plate, "contributor" means a person
144     who has donated or in whose name at least $35 has been donated at the time of application and
145     annually thereafter.
146          (D) For a firefighter support special group license plate, "contributor" means a person
147     who:
148          (I) has donated or in whose name at least $15 has been donated at the time of
149     application and annually after the time of application; and
150          (II) is a currently employed, volunteer, or retired firefighter.
151          (E) For a cancer research special group license plate, "contributor" means a person who
152     has donated or in whose name at least $35 has been donated at the time of application and
153     annually after the time of application.
154          (F) For a Utah Law Enforcement Memorial Support special group license plate,
155     "contributor" means a person who has donated or in whose name at least $35 has been donated
156     at the time of application and annually thereafter.
157          (b) "Institution" means a state institution of higher education as defined under Section
158     53B-3-102 or a private institution of higher education in the state accredited by a regional or
159     national accrediting agency recognized by the United States Department of Education.
160          (2) (a) An applicant for original or renewal collegiate special group license plates under
161     Subsection (1)(a)(i) must be a contributor to the institution named in the application and
162     present the original contribution verification form under Subsection (2)(b) or make a
163     contribution to the division at the time of application under Subsection (3).
164          (b) An institution with a support special group license plate shall issue to a contributor
165     a verification form designed by the commission containing:
166          (i) the name of the contributor;
167          (ii) the institution to which a donation was made;
168          (iii) the date of the donation; and
169          (iv) an attestation that the donation was for a scholastic scholarship.

170          (c) The state auditor may audit each institution to verify that the money collected by the
171     institutions from contributors is used for scholastic scholarships.
172          (d) After an applicant has been issued collegiate license plates or renewal decals, the
173     commission shall charge the institution whose plate was issued, a fee determined in accordance
174     with Section 63J-1-504 for management and administrative expenses incurred in issuing and
175     renewing the collegiate license plates.
176          (e) If the contribution is made at the time of application, the contribution shall be
177     collected, treated, and deposited as provided under Subsection (3).
178          (3) (a) An applicant for original or renewal support special group license plates under
179     this section must be a contributor to the sponsoring organization associated with the license
180     plate.
181          (b) This contribution shall be:
182          (i) unless collected by the named institution under Subsection (2), collected by the
183     division;
184          (ii) considered a voluntary contribution for the funding of the activities specified under
185     this section and not a motor vehicle registration fee;
186          (iii) deposited into the appropriate account less actual administrative costs associated
187     with issuing the license plates; and
188          (iv) for a firefighter special group license plate, deposited into the appropriate account
189     less:
190          (A) the costs of reordering firefighter special group license plate decals; and
191          (B) the costs of replacing recognition special group license plates with new license
192     plates under Subsection 41-1a-1211(13).
193          (c) The donation described in Subsection (1)(a) must be made in the 12 months prior to
194     registration or renewal of registration.
195          (d) The donation described in Subsection (1)(a) shall be a one-time donation made to
196     the division when issuing original:
197          (i) snowmobile license plates; or

198          (ii) conservation license plates.
199          (4) Veterans license plates shall display one of the symbols representing the Army,
200     Navy, Air Force, Marines, Coast Guard, or American Legion.
201          Section 2. Section 51-5-4 is amended to read:
202          51-5-4. Funds established -- Titles of funds -- Fund functions.
203          (1) (a) (i) The funds enumerated in this section are established as major fund types.
204          (ii) All resources and financial transactions of Utah state government shall be
205     accounted for within one of these major fund types.
206          (b) (i) All funds or subfunds shall be consolidated into one of the state's major fund
207     types.
208          (ii) Where a specific statute requires that a fund or account be established, that fund or
209     account shall be accounted for as an individual fund, subfund, or account within the major fund
210     type to meet generally accepted accounting principles.
211          (iii) Existing and new activities of state government authorized by the Legislature shall
212     be accounted for within the framework of the major fund types established in this section.
213          (c) The Division of Finance shall determine the accounting classification that complies
214     with generally accepted accounting principles for all funds, subfunds, or accounts created by
215     the Legislature.
216          (d) (i) Major fund types shall be added by amending this chapter.
217          (ii) Whenever a new act creates or establishes a fund, subfund, or account without
218     amending this chapter, the reference to a fund, subfund, or account in the new act shall be
219     classified within one of the major fund types established by this section.
220          (2) Major Fund Type Titles:
221          (a) General Fund;
222          (b) Special Revenue Funds;
223          (c) Capital Projects Funds;
224          (d) Debt Service Funds;
225          (e) Permanent Funds;

226          (f) Enterprise Funds;
227          (g) Internal Service Funds;
228          (h) Trust and Agency Funds; and
229          (i) Discrete Component Unit Funds.
230          (3) The General Fund shall receive all revenues and account for all expenditures not
231     otherwise provided for by law in any other fund.
232          (4) Special Revenue Funds are used to account for and report proceeds of specific
233     revenue sources that are restricted or committed to be expended for a specified purpose.
234          (a) The [Education Fund] Income Tax Fund is a Special Revenue Fund that:
235          (i) receives all revenues from taxes on intangible property or from a tax on income; and
236          (ii) is designated for public and higher education.
237          (b) The Transportation Fund is a Special Revenue Fund that accounts for all revenues
238     that are required by law to be expended for highway purposes.
239          (c) (i) An Expendable Special Revenue Fund is a Special Revenue Fund created by
240     legislation or contractual relationship with parties external to the state that:
241          (A) identifies specific revenues collected from fees, taxes, dedicated credits, donations,
242     federal funds, or other sources;
243          (B) defines the use of the money in the fund for a specific function of government or
244     program within an agency; and
245          (C) delegates spending authority or authorization to use the fund's assets to a governing
246     board, administrative department, or other officials as defined in the enabling legislation or
247     contract establishing the fund.
248          (ii) An Expendable Special Revenue Fund may only be created by contractual
249     relationship with external parties when the sources of revenue for the fund are donated
250     revenues or federal revenues.
251          (iii) Expendable Special Revenue Funds are subject to annual legislative review by the
252     appropriate legislative appropriations subcommittee.
253          (5) (a) Capital Projects Funds account for financial resources to be expended for the

254     acquisition or construction of capital outlays, including the acquisition or construction of a
255     capital facility and other capital assets. Capital Projects Funds exclude those types of
256     capital-related outflows financed by proprietary funds or for assets that will be held in trust for
257     individuals, private organizations, or other governments.
258          (b) The Transportation Investment Fund of 2005 is a Capital Projects Fund that
259     accounts for revenues that are required by law to be expended for the maintenance,
260     construction, reconstruction, or renovation of certain state and federal highways.
261          (6) Debt Service Funds account for the accumulation of resources for, and the payment
262     of, the principal and interest on general long-term obligations.
263          (7) Permanent Funds account for assets that are legally restricted to the extent that only
264     earnings, and not principal, may be used for a specific purpose.
265          (8) Enterprise Funds are designated to account for the following:
266          (a) operations, financed and operated in a manner similar to private business
267     enterprises, where the Legislature intends that the costs of providing goods or services to the
268     public are financed or recovered primarily through user charges;
269          (b) operations where the Legislature requires periodic determination of revenues
270     earned, expenses incurred, and net income;
271          (c) operations for which a fee is charged to external users for goods or services; or
272          (d) operations that are financed with debt that is secured solely by a pledge of the net
273     revenues from fees and charges of the operations.
274          (9) Internal Service Funds account for the financing of goods or services provided by
275     one department, division, or agency to other departments, divisions, or agencies of the state, or
276     to other governmental units, on a cost-reimbursement basis.
277          (10) (a) Trust and Agency Funds account for assets held by the state as trustee or agent
278     for individuals, private organizations, or other governmental units.
279          (b) Pension Trust Funds, Investment Trust Funds, Private-Purpose Trust Funds, and
280     Agency Funds are Trust and Agency Funds.
281          (11) Discrete Component Unit Funds account for the financial resources used to

282     operate the state's colleges and universities and other discrete component units.
283          Section 3. Section 53B-7-703 is amended to read:
284          53B-7-703. Performance Funding Restricted Account -- Creation -- Deposits into
285     account -- Legislative review.
286          (1) There is created within the [Education Fund] Income Tax Fund a restricted account
287     known as the "Performance Funding Restricted Account."
288          (2) Money in the account shall be:
289          (a) used for performance funding for:
290          (i) degree-granting institutions; and
291          (ii) technical colleges; and
292          (b) appropriated by the Legislature in accordance with Section 53B-7-705.
293          (3) (a) Money in the account shall earn interest.
294          (b) All interest earned on account money shall be deposited into the account.
295          (4) (a) Except as provided in Subsection (4)(b), the Division of Finance shall deposit
296     into the account an amount equal to 20% of the estimated revenue growth from targeted jobs
297     upon appropriation by the Legislature for a fiscal year beginning on or after July 1, 2019.
298          (b) (i) As used in this Subsection (4)(b), "total higher education appropriations" means,
299     for the current fiscal year, the total state funded appropriations to:
300          (A) the board;
301          (B) degree-granting institutions; and
302          (C) technical colleges.
303          (ii) If a deposit described in Subsection (4)(a) would exceed 10% of total higher
304     education appropriations, upon appropriation by the Legislature, the Division of Finance shall
305     deposit into the account an amount equal to 10% of total higher education appropriations.
306          (c) The Legislature may appropriate money to the account.
307          (5) (a) As used in this Subsection (5):
308          (i) "Base budget" means the same as that term is defined in legislative rule.
309          (ii) "Remaining available ongoing [Education Fund] Income Tax Fund revenue" means

310     the difference between:
311          (A) the estimated ongoing [Education Fund] Income Tax Fund and Uniform School
312     Fund revenue available for the Legislature to appropriate in the next fiscal year; and
313          (B) the amount of ongoing appropriations from the [Education Fund] Income Tax Fund
314     and Uniform School Fund for the current year plus ongoing appropriations required under
315     Sections 53F-9-201 and 53F-9-204 for the next fiscal year.
316          (b) Except as described in Subsection (5)(c), for a fiscal year beginning on or after July
317     1, 2023, when preparing the Higher Education Base Budget, the Office of the Legislative Fiscal
318     Analyst shall:
319          (i) include in the base budget the lesser of the amount described in Subsection (4) or
320     the remaining available ongoing [Education Fund] Income Tax Fund revenue; and
321          (ii) appropriate the funds described in Subsection (5)(b)(i) to the Utah Board of Higher
322     Education to distribute to institutions as described in Section 53B-7-705.
323          (c) In a fiscal year beginning on or after July 1, 2023, in which the remaining available
324     ongoing [Education Fund] Income Tax Fund revenue is less than zero, when preparing the base
325     budget, the Office of the Legislative Fiscal Analyst shall include in the base budget an amount
326     equal to the difference in the amount described in Subsection (4) for the current year and the
327     amount described in Subsection (4) for the prior year, adjusted for any base budget reductions
328     as directed by the Executive Appropriations Committee.
329          (6) During the interim following a legislative general session in which an amount
330     described in Subsection (4)(b) is deposited into the account, the Higher Education
331     Appropriations Subcommittee shall review performance funding described in this part and
332     make recommendations to the Legislature about:
333          (a) the performance levels required for degree-granting institutions and technical
334     colleges to receive performance funding as described in Section 53B-7-705;
335          (b) the performance metrics described in Sections 53B-7-706 and 53B-7-707; and
336          (c) the amount of individual income tax revenue dedicated to higher education
337     performance funding.

338          Section 4. Section 53B-8-112 is amended to read:
339          53B-8-112. Public Safety Officer Career Advancement Reimbursement Program.
340          (1) The Public Safety Officer Career Advancement Reimbursement Program is created.
341          (2) Subject to legislative appropriations and Subsection (7) the board shall reimburse
342     an applicant who:
343          (a) is a certified peace officer, currently employed by a law enforcement agency within
344     the state;
345          (b) has been employed as a certified peace officer for three or more consecutive years;
346          (c) is seeking a post-secondary degree in the area of criminal justice from a
347     credit-granting higher education institution within the state system of higher education,
348     described in Section 53B-1-102; and
349          (d) is employed as a peace officer for one year following completion of the academic
350     year for which the individual is seeking reimbursement.
351          (3) Individuals who qualify for reimbursement from the Public Safety Officer Career
352     Advancement Reimbursement Program may apply for reimbursement by July 1 one year after
353     each academic year for which they are requesting reimbursement.
354          (4) Subject to Legislative appropriations, of the funds appropriated for the Public
355     Safety Officer Career Advancement Reimbursement Program:
356          (a) 25% of the annual appropriation shall be designated for applicants who are
357     currently employed by a law enforcement agency with jurisdiction in a county of the third or
358     fourth class; and
359          (b) 12% of the annual appropriation shall be designated for applicants who are
360     currently employed by a law enforcement agency with jurisdiction in a county of the fifth or
361     sixth class.
362          (5) (a) A qualified applicant may be reimbursed up to half of the cost of tuition and
363     fees.
364          (b) A reimbursement under Subsection (5)(a) is limited to:
365          (i) a maximum of $5,000 each academic year; and

366          (ii) a maximum of eight academic years.
367          (6) (a) The board shall make rules in accordance with Title 63G, Chapter 3, Utah
368     Administrative Rulemaking Act, to:
369          (i) set deadlines for receiving reimbursement applications and supporting
370     documentation; and
371          (ii) establish the application process and an appeal process for a reimbursement from
372     the Public Safety Officer Career Advancement Reimbursement Program, including procedures
373     to allow for online application submittals.
374          (b) The board shall include a disclosure on all applications and related materials that
375     the amount of the awarded reimbursements may be subject to funding or be reduced, in
376     accordance with Subsection (7).
377          (7) (a) Subject to future budget constraints, the Legislature shall make an annual
378     appropriation from the [Education Fund] Income Tax Fund to the board for the costs associated
379     with the Public Safety Officer Career Advancement Reimbursement Program authorized under
380     this section.
381          (b) Notwithstanding the provisions of this section, if the appropriation under this
382     section is insufficient to cover the costs associated with the Public Safety Officer Career
383     Advancement Reimbursement Program, the board:
384          (i) may reduce the amount of a reimbursement; and
385          (ii) shall distribute reimbursements on a pro rata basis to all eligible applicants who
386     submitted a complete application before the application deadline.
387          (c) Any individual who is denied reimbursement because of insufficient funds
388     appropriated may re-apply for reimbursement up to two years after the first year of eligibility.
389          Section 5. Section 53B-8-202 is amended to read:
390          53B-8-202. Regents' Scholarship Program -- General provisions -- Board policies.
391          (1) This section only applies to a student who graduates from high school on or before
392     July 1, 2018.
393          (2) The Regents' Scholarship Program is created to award merit scholarships to

394     students who complete a rigorous core course of study in high school.
395          (3) (a) A student who is awarded the Base Regents' scholarship established in Section
396     53B-8-203 may also be awarded each of the supplemental awards established in Sections
397     53B-8-204 and 53B-8-205.
398          (b) A student may not receive both a Regents' scholarship and a New Century
399     scholarship established in Section 53B-8-105.
400          (4) A Regents' scholarship may only be used at a:
401          (a) credit-granting higher education institution within the state system of higher
402     education; or
403          (b) private, nonprofit college or university in the state that is accredited by the
404     Northwest Commission on Colleges and Universities.
405          (5) (a) A scholarship holder shall enroll full-time at a higher education institution
406     described in Subsection (4) by no later than the fall term immediately following the student's
407     high school graduation date or receive an approved deferral from the board.
408          (b) The board may grant a deferral or leave of absence to a scholarship holder, but the
409     student may only receive scholarship money within five years of the student's high school
410     graduation date.
411          (6) (a) The board shall annually report on the Regents' Scholarship Program at the
412     beginning of each school year to the Higher Education Appropriations Subcommittee.
413          (b) The board shall ensure that the report includes the number of students in each
414     school district and public high school who meet the academic criteria for the Base Regents'
415     scholarship and for the Exemplary Academic Achievement Scholarship.
416          (c) The State Board of Education, school districts, and public high schools shall
417     cooperate with the board to facilitate the collection and distribution of Regents' Scholarship
418     Program data.
419          (7) The State Board of Education shall annually provide the board a complete list of
420     directory information, including student name and address, for all grade 8 students in the state.
421          (8) The board shall adopt policies establishing:

422          (a) the high school and college course requirements described in Subsection
423     53B-8-203(2)(d)(i);
424          (b) the additional weights assigned to grades earned in certain courses described in
425     Subsections 53B-8-203(5) and 53B-8-205(8);
426          (c) the regional accrediting bodies that may accredit a private high school described in
427     Subsection 53B-8-203(2)(a)(ii);
428          (d) (i) the application process and an appeal process for a Regents' scholarship,
429     including procedures to allow a student to apply for the scholarship on-line; and
430          (ii) a disclosure on all applications and related materials that the amount of the awards
431     is subject to funding and may be reduced, in accordance with Subsection (9)(b); and
432          (e) how college credits correlate to high school units for purposes of Subsection
433     53B-8-203(2)(d)(i).
434          (9) (a) Subject to future budget constraints, the Legislature shall make an annual
435     appropriation from the [Education Fund] Income Tax Fund to the board for the costs associated
436     with the Regents' Scholarship Program authorized under this section and Sections 53B-8-203,
437     53B-8-204, and 53B-8-205.
438          (b) Notwithstanding the provisions of this section and Sections 53B-8-203, 53B-8-204,
439     and 53B-8-205, if the appropriation under Subsection (9)(a) is insufficient to cover the costs
440     associated with the Regents' Scholarship Program, the board may reduce the amount of the
441     Base Regents' scholarships and supplemental awards.
442          (10) The board may set deadlines for receiving Regents' scholarship applications and
443     supporting documentation.
444          Section 6. Section 53E-3-802 is amended to read:
445          53E-3-802. Federal programs -- School official duties.
446          (1) School officials may:
447          (a) apply for, receive, and administer funds made available through programs of the
448     federal government;
449          (b) only expend federal funds for the purposes for which they are received and are

450     accounted for by the state, school district, or charter school; and
451          (c) reduce or eliminate a program created with or expanded by federal funds to the
452     extent allowed by law when federal funds for that program are subsequently reduced or
453     eliminated.
454          (2) School officials shall:
455          (a) prioritize resources, especially to resolve conflicts between federal provisions or
456     between federal and state programs, including:
457          (i) providing first priority to meeting state goals, objectives, program needs, and
458     accountability systems as they relate to federal programs; and
459          (ii) subject to Subsection (4), providing second priority to implementing federal goals,
460     objectives, program needs, and accountability systems that do not directly and simultaneously
461     advance state goals, objectives, program needs, and accountability systems;
462          (b) interpret the provisions of federal programs in the best interest of students in this
463     state;
464          (c) maximize local control and flexibility;
465          (d) minimize additional state resources that are diverted to implement federal programs
466     beyond the federal money that is provided to fund the programs;
467          (e) request changes to federal educational programs, especially programs that are
468     underfunded or provide conflicts with other state or federal programs, including:
469          (i) federal statutes;
470          (ii) federal regulations; and
471          (iii) other federal policies and interpretations of program provisions; and
472          (f) seek waivers from all possible federal statutes, requirements, regulations, and
473     program provisions from federal education officials to:
474          (i) maximize state flexibility in implementing program provisions; and
475          (ii) receive reasonable time to comply with federal program provisions.
476          (3) The requirements of school officials under this part, including the responsibility to
477     lobby federal officials, are not intended to mandate school officials to incur costs or require the

478     hiring of lobbyists, but are intended to be performed in the course of school officials' normal
479     duties.
480          (4) (a) As used in this Subsection (4):
481          (i) "Available [Education Fund] Income Tax Fund revenue surplus" means the
482     [Education Fund] Income Tax Fund revenue surplus after the statutory transfers and set-asides
483     described in Section 63J-1-313.
484          (ii) "[Education Fund] Income Tax Fund revenue surplus" means the same as that term
485     is defined in Section 63J-1-313.
486          (b) Before prioritizing the implementation of a future federal goal, objective, program
487     need, or accountability system that does not directly and simultaneously advance a state goal,
488     objective, program need, or accountability system, the state board may:
489          (i) determine the financial impact of failure to implement the federal goal, objective,
490     program need, or accountability system; and
491          (ii) if the state board determines that failure to implement the federal goal, objective,
492     program need, or accountability system may result in a financial loss, request that the
493     Legislature mitigate the financial loss.
494          (c) A mitigation requested under Subsection (4)(b)(ii) may include appropriating
495     available [Education Fund] Income Tax Fund revenue surplus through an appropriations act,
496     including an appropriations act passed during a special session called by the governor or a
497     general session.
498          (d) This mitigation option is in addition to and does not restrict or conflict with the
499     state's authority provided in this part.
500          Section 7. Section 53E-6-505 is amended to read:
501          53E-6-505. Meetings and expenses of UPPAC members.
502          (1) UPPAC shall meet at least quarterly and at the call of the chair or of a majority of
503     the members.
504          (2) Members of UPPAC serve without compensation but are allowed reimbursement
505     for actual and necessary expenses under the rules of the Division of Finance.

506          (3) The state board shall pay reimbursement to UPPAC members out of the [Education
507     Fund] Income Tax Fund.
508          Section 8. Section 53E-7-405 is amended to read:
509          53E-7-405. Program donations -- Scholarship granting organization
510     requirements.
511          (1) A person that makes a donation to a scholarship granting organization to help fund
512     scholarships through the program may be eligible to receive a nonrefundable tax credit as
513     described in Sections 59-7-625 and 59-10-1041.
514          (2) In accordance with Section 53E-7-404, an organization may enter into an
515     agreement with the state board to be a scholarship granting organization.
516          (3) A scholarship granting organization shall:
517          (a) accept program donations;
518          (b) adopt an application process in accordance with Subsection (5);
519          (c) review scholarship applications and determine scholarship awards;
520          (d) allocate scholarship money to a scholarship student's parent or, on the parent's
521     behalf, to a qualifying school in which the scholarship student is enrolled;
522          (e) adopt a process, with state board approval, that allows a parent to use a scholarship
523     to pay for a nontuition scholarship expense for the scholarship student;
524          (f) ensure that:
525          (i) at least 92% of the scholarship granting organization's revenue from program
526     donations is spent on scholarships;
527          (ii) up to 5% of the scholarship granting organization's revenue from program
528     donations is spent on administration of the program;
529          (iii) up to 3% of the scholarship granting organization's revenue from program
530     donations is spent on marketing and fundraising costs; and
531          (iv) all revenue from program donations' interest or investments is spent on
532     scholarships;
533          (g) carry forward no more than 40% of the scholarship granting organization's program

534     donations from the state fiscal year in which the scholarship granting organization received the
535     program donations to the following state fiscal year;
536          (h) at the end of a fiscal year, remit to the state treasurer donation amounts greater than
537     the amount described in Subsection (3)(g);
538          (i) prohibit a scholarship granting organization employee or officer from handling,
539     managing, or processing program donations, if, based on a criminal background check
540     conducted by the state board in accordance with Section 53E-7-404, the state board identifies
541     the employee or officer as posing a risk to the appropriate use of program donations;
542          (j) ensure that a scholarship can be transferred during the school year to a different
543     qualifying school that accepts the scholarship student;
544          (k) report to the state board on or before June 1 of each year the following information,
545     prepared by a certified public accountant:
546          (i) the name and address of the scholarship granting organization;
547          (ii) the total number and total dollar amount of program donations that the scholarship
548     granting organization received during the previous calendar year;
549          (iii) the total number and total dollar amount of scholarships the scholarship granting
550     organization awarded during the previous calendar year; and
551          (iv) the percentage of first-time scholarship recipients who were enrolled in a public
552     school during the previous school year or who entered kindergarten or a higher grade for the
553     first time in Utah;
554          (l) issue tax credit certificates as described in Section 53E-7-407; and
555          (m) require a parent to notify a scholarship granting organization if the parent's
556     scholarship recipient:
557          (i) receives scholarship money for tuition expenses; and
558          (ii) does not have continuing enrollment and attendance at a qualifying school.
559          (4) The state treasurer shall deposit the money described in Subsection (3)(h) into the
560     [Education Fund] Income Tax Fund.
561          (5) (a) An application for a scholarship shall contain an acknowledgment by the

562     applicant's parent that the qualifying school selected by the parent for the applicant to attend
563     using a scholarship is capable of providing the level of disability services required for the
564     student.
565          (b) A scholarship application form shall contain the following statement:
566          "I acknowledge that:
567          (1) A private school may not provide the same level of disability services that are
568     provided in a public school;
569          (2) I will assume full financial responsibility for the education of my scholarship
570     recipient if I accept this scholarship;
571          (3) Acceptance of this scholarship has the same effect as a parental refusal to consent
572     to services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with
573     Disabilities Education Act, 20 U.S.C. Sec. 1400 et seq.; and
574          (4) My child may return to a public school at any time."
575          (c) Upon acceptance of a scholarship, the parent assumes full financial responsibility
576     for the education of the scholarship recipient.
577          (d) Acceptance of a scholarship has the same effect as a parental refusal to consent to
578     services as described in 24 C.F.R. Sec. 300.300, issued under the Individuals with Disabilities
579     Education Act, 20 U.S.C. Sec. 1400 et seq.
580          (e) The creation of the program or granting of a scholarship does not:
581          (i) imply that a public school did not provide a free and appropriate public education
582     for a student; or
583          (ii) constitute a waiver or admission by the state.
584          (6) A scholarship granting organization shall demonstrate the scholarship granting
585     organization's financial accountability by annually submitting to the state board a financial
586     information report that:
587          (a) complies with the uniform financial accounting standards described in Section
588     53E-7-404; and
589          (b) is prepared by a certified public accountant.

590          (7) (a) If a scholarship granting organization allocates $500,000 or more in
591     scholarships annually through the program, the scholarship granting organization shall:
592          (i) contract for an annual audit, conducted by a certified public accountant who is
593     independent from:
594          (A) the scholarship granting organization; and
595          (B) the scholarship granting organization's accounts and records pertaining to program
596     donations; and
597          (ii) in accordance with Subsection (7)(b), report the results of the audit to the state
598     board for review.
599          (b) For the report described in Subsection (7)(a)(ii), the scholarship granting
600     organization shall:
601          (i) include the scholarship granting organization's financial statements in a format that
602     meets generally accepted accounting standards; and
603          (ii) submit the report to the state board no later than 180 days after the last day of a
604     scholarship granting organization's fiscal year.
605          (c) The certified public accountant shall conduct an audit described in Subsection
606     (7)(a)(i) in accordance with generally accepted auditing standards and rules made by the state
607     board.
608          (d) (i) The state board shall review a report submitted under this section and may
609     request that the scholarship granting organization revise or supplement the report if the report
610     is not in compliance with the provisions of this Subsection (7) or rules adopted by the state
611     board.
612          (ii) A scholarship granting organization shall provide a revised report or supplement to
613     the report no later than 45 days after the day on which the state board makes a request
614     described in Subsection (7)(d)(i).
615          (8) (a) A scholarship granting organization may not allocate scholarship money to a
616     qualifying school if:
617          (i) the scholarship granting organization determines that the qualifying school

618     intentionally or substantially misrepresented information on overpayment;
619          (ii) the qualifying school fails to refund an overpayment in a timely manner; or
620          (iii) the qualifying school routinely fails to provide scholarship recipients with
621     promised educational goods or services.
622          (b) A scholarship granting organization shall notify a scholarship recipient if the
623     scholarship granting organization stops allocation of the recipient's scholarship money to a
624     qualifying school under Subsection (8)(a).
625          (9) If a scholarship recipient transfers to another qualifying school during the school
626     year, the scholarship granting organization may prorate scholarship money between the
627     qualifying schools according to the time the scholarship recipient spends at each school.
628          (10) A scholarship granting organization may not:
629          (a) award a scholarship to a relative of the scholarship granting organization's officer or
630     employee; or
631          (b) allocate scholarship money to a qualifying school at which the scholarship recipient
632     has a relative who is an officer or an employee of the qualifying school.
633          Section 9. Section 53F-2-203 is amended to read:
634          53F-2-203. Reduction of LEA governing board allocation based on insufficient
635     revenues.
636          (1) As used in this section, "Minimum School Program funds" means the total of state
637     and local funds appropriated for the Minimum School Program, excluding:
638          (a) an appropriation for a state guaranteed local levy increment as described in Section
639     53F-2-601; and
640          (b) the appropriation to charter schools to replace local property tax revenues pursuant
641     to Section 53F-2-704.
642          (2) If the Legislature reduces appropriations made to support public schools under this
643     chapter because an [Education Fund] Income Tax Fund budget deficit, as defined in Section
644     63J-1-312, exists, the state board, after consultation with each LEA governing board, shall
645     allocate the reduction among school districts and charter schools in proportion to each school

646     district's or charter school's percentage share of Minimum School Program funds.
647          (3) Except as provided in Subsection (5) and subject to the requirements of Subsection
648     (7), an LEA governing board shall determine which programs are affected by a reduction
649     pursuant to Subsection (2) and the amount each program is reduced.
650          (4) Except as provided in Subsections (5) and (6), the requirement to spend a specified
651     amount in any particular program is waived if reductions are made pursuant to Subsection (2).
652          (5) An LEA governing board may not reduce or reallocate spending of funds
653     distributed to the school district or charter school for the following programs:
654          (a) educator salary adjustments provided in Section 53F-2-405;
655          (b) the Teacher Salary Supplement Program provided in Section 53F-2-504;
656          (c) the extended year for special educators provided in Section 53F-2-310;
657          (d) the School LAND Trust Program described in Sections 53F-2-404 and
658     53G-7-1206; or
659          (e) a special education program within the basic school program.
660          (6) An LEA governing board may not reallocate spending of funds distributed to the
661     school district or charter school to a reserve account.
662          (7) An LEA governing board that reduces or reallocates funds in accordance with this
663     section shall report all transfers into, or out of, Minimum School Program programs to the state
664     board as part of the school district or charter school's Annual Financial and Program report.
665          Section 10. Section 53F-9-201 is amended to read:
666          53F-9-201. Uniform School Fund -- Contents -- Trust Distribution Account.
667          (1) As used in this section:
668          (a) "Annual distribution calculation" means, for a given fiscal year, the average of:
669          (i) 4% of the average market value of the State School Fund for that fiscal year; and
670          (ii) the distribution amount for the prior fiscal year, multiplied by the sum of:
671          (A) one;
672          (B) the percent change in student enrollment from the school year two years prior to
673     the prior school year; and

674          (C) the actual total percent change of the consumer price index during the last 12
675     months as measured in June of the prior fiscal year.
676          (b) "Average market value of the State School Fund" means the results of a calculation
677     completed by the SITFO director each fiscal year that averages the value of the State School
678     Fund for the past 20 consecutive quarters ending in the prior fiscal year.
679          (c) "Consumer price index" means the Consumer Price Index for All Urban
680     Consumers: All Items Less Food & Energy, as published by the Bureau of Labor Statistics of
681     the United States Department of Labor.
682          (d) "SITFO director" means the director of the School and Institutional Trust Fund
683     Office appointed under Section 53D-1-401.
684          (e) "State School Fund investment earnings distribution amount" or "distribution
685     amount" means, for a fiscal year, the lesser of:
686          (i) the annual distribution calculation; or
687          (ii) 4% of the average market value of the State School Fund.
688          (2) The Uniform School Fund, a special revenue fund [within the Education Fund] ,
689     established by Utah Constitution, Article X, Section 5, consists of:
690          (a) distributions derived from the investment of money in the permanent State School
691     Fund established by Utah Constitution, Article X, Section 5;
692          (b) money transferred to the fund pursuant to Title 67, Chapter 4a, Revised Uniform
693     Unclaimed Property Act; and
694          (c) all other constitutional or legislative allocations to the fund, including:
695          (i) appropriations for the Minimum School Program, enrollment growth, and inflation
696     under Section 53F-9-201.1; and
697          (ii) revenues received by donation.
698          (3) (a) There is created within the Uniform School Fund a restricted account known as
699     the Trust Distribution Account.
700          (b) The Trust Distribution Account consists of:
701          (i) in accordance with Subsection (4), quarterly deposits of the State School Fund

702     investment earnings distribution amount from the prior fiscal year;
703          (ii) all interest earned on the Trust Distribution Account in the prior fiscal year; and
704          (iii) any unused appropriation for the administration of the School LAND Trust
705     Program, as described in Subsection 53F-2-404(1)(c).
706          (4) If, at the end of a fiscal year, the Trust Distribution Account has a balance
707     remaining after subtracting the appropriation amount described in Subsection 53F-2-404(1)(a)
708     for the next fiscal year, the SITFO director shall, during the next fiscal year, apply the amount
709     of the remaining balance from the prior fiscal year toward the current fiscal year's distribution
710     amount by reducing a quarterly deposit to the Trust Distribution Account by the amount of the
711     remaining balance from the prior fiscal year.
712          (5) On or before October 1 of each year, the SITFO director shall:
713          (a) in accordance with this section, determine the distribution amount for the following
714     fiscal year; and
715          (b) report the amount described in Subsection (5)(a) as the funding amount, described
716     in Subsection 53F-2-404(1)(c), for the School LAND Trust Program, to:
717          (i) the State Treasurer;
718          (ii) the Legislative Fiscal Analyst;
719          (iii) the Division of Finance;
720          (iv) the director of the Land Trusts Protection and Advocacy Office, appointed under
721     Section 53D-2-203;
722          (v) the School and Institutional Trust Lands Administration created in Section
723     53C-1-201;
724          (vi) the state board; and
725          (vii) the Governor's Office of Planning and Budget.
726          (6) The School and Institutional Trust Fund Board of Trustees created in Section
727     53D-1-301 shall:
728          (a) annually review the distribution amount; and
729          (b) make recommendations, if necessary, to the Legislature for changes to the formula

730     for calculating the distribution amount.
731          (7) Upon appropriation by the Legislature, the SITFO director shall place in the Trust
732     Distribution Account funds for the School LAND Trust Program as described in Subsections
733     53F-2-404(1)(a) and (c).
734          Section 11. Section 53F-9-201.1 (Superseded 07/01/22) is amended to read:
735          53F-9-201.1 (Superseded 07/01/22). Appropriations to the Minimum School
736     Program from the Uniform School Fund.
737          (1) As used in this section:
738          (a) "Base budget" means the same as that term is defined in legislative rule.
739          (b) "Enrollment growth and inflation estimates" means the cost estimates regarding
740     enrollment growth and inflation described in Section 53F-2-208.
741          (2) Except as provided in Subsection 53F-9-204(3), for a fiscal year beginning on or
742     after July 1, 2021, when preparing the Public Education Base Budget, the Office of the
743     Legislative Fiscal Analyst shall:
744          (a) include appropriations to the Minimum School Program from the Uniform School
745     Fund, and, subject to Subsection 53F-9-204(3), the Public Education Economic Stabilization
746     Restricted Account, in an amount that is greater than or equal to the sum of:
747          (i) the ongoing [Education Fund] Income Tax Fund and Uniform School Fund
748     appropriations to the Minimum School Program in the current fiscal year; and
749          (ii) subject to Subsection 53F-9-204(3)(b), enrollment growth and inflation estimates;
750     and
751          (b) except as provided in Subsection (4), an appropriation to increase the value of the
752     weighted pupil unit that is greater than or equal to 10% of the difference between, as
753     determined by the Office of the Legislative Fiscal Analyst:
754          (i) the estimated amount of ongoing [Education Fund] Income Tax Fund and Uniform
755     School Fund revenue available for the Legislature to appropriate for the next fiscal year; and
756          (ii) the amount of ongoing appropriations from the [Education Fund] Income Tax Fund
757     and Uniform School Fund in the current fiscal year.

758          (3) The total annual amount deposited into the Uniform School Fund, including the
759     deposits through the distributions described in Sections 59-7-532 and 59-10-544, for a given
760     fiscal year may not exceed the amount appropriated from the Uniform School Fund for that
761     fiscal year.
762          (4) (a) If an appropriation to increase the value of the weighted pupil unit described in
763     Subsection (2)(b) would cause the cumulative amount of increases to the value of the weighted
764     pupil unit, beginning for fiscal year 2022, to exceed $140,500,000, the Office of the Legislative
765     Fiscal Analyst:
766          (i) shall include in the Public Education Base Budget an appropriation to increase the
767     value of the weighted pupil unit that would cause the cumulative amount of increases to equal
768     $140,500,000; and
769          (ii) is exempt from future application of Subsection (2)(b).
770          (b) Nothing in this section limits the Legislature's ability to appropriate additional
771     amounts to increase the value of the weighted pupil unit.
772          Section 12. Section 53F-9-201.1 (Effective 07/01/22) is amended to read:
773          53F-9-201.1 (Effective 07/01/22). Appropriations to the Minimum School
774     Program from the Uniform School Fund.
775          (1) As used in this section:
776          (a) "Base budget" means the same as that term is defined in legislative rule.
777          (b) "Enrollment growth and inflation estimates" means the cost estimates regarding
778     enrollment growth and inflation described in Section 53F-2-208.
779          (2) Except as provided in Subsection 53F-9-204(3), for a fiscal year beginning on or
780     after July 1, 2021, when preparing the Public Education Base Budget, the Office of the
781     Legislative Fiscal Analyst shall include appropriations to the Minimum School Program from
782     the Uniform School Fund, and, subject to Subsection 53F-9-204(3), the Public Education
783     Economic Stabilization Restricted Account, in an amount that is greater than or equal to the
784     sum of:
785          (a) the ongoing [Education Fund] Income Tax Fund and Uniform School Fund

786     appropriations to the Minimum School Program in the current fiscal year; and
787          (b) subject to Subsection 53F-9-204(3)(b), enrollment growth and inflation estimates.
788          (3) The total annual amount deposited into the Uniform School Fund, including the
789     deposits through the distributions described in Sections 59-7-532 and 59-10-544, for a given
790     fiscal year may not exceed the amount appropriated from the Uniform School Fund for that
791     fiscal year.
792          Section 13. Section 53F-9-204 is amended to read:
793          53F-9-204. Public Education Economic Stabilization Restricted Account.
794          (1) There is created within the Uniform School Fund a restricted account known as the
795     "Public Education Economic Stabilization Restricted Account."
796          (2) (a) Except as provided in Subsection (2)(b), the account shall be funded from the
797     following revenue sources:
798          (i) 15% of the difference between, as determined by the Office of the Legislative Fiscal
799     Analyst:
800          (A) the estimated amount of ongoing [Education Fund] Income Tax Fund and Uniform
801     School Fund revenue available for the Legislature to appropriate for the next fiscal year; and
802          (B) the amount of ongoing appropriations from the [Education Fund] Income Tax Fund
803     and Uniform School Fund in the current fiscal year; and
804          (ii) other appropriations as the Legislature may designate.
805          (b) If the appropriation described in Subsection (2)(a) would cause the ongoing
806     appropriations to the account to exceed 11% of Uniform School Fund appropriations described
807     in Section 53F-9-201.1 for the same fiscal year, the Legislature shall appropriate only those
808     funds necessary to ensure that the ongoing appropriations to the account equal 11% of Uniform
809     School Fund appropriations for that fiscal year.
810          (3) Subject to the availability of ongoing appropriations to the account, in accordance
811     with Utah Constitution, Article X, Section 5, Subsection (4), the ongoing appropriation to the
812     account shall be used to fund:
813          (a) except for a year described in Subsection (3)(b), one-time appropriations to the

814     public education system; and
815          (b) the Minimum School Program for a year in which [Education Fund] Income Tax
816     Fund revenue and Uniform School Fund revenue are insufficient to fund:
817          (i) ongoing appropriations to the public education system; and
818          (ii) enrollment growth and inflation estimates, as defined in Section 53F-9-201.1.
819          (4) (a) The account shall earn interest.
820          (b) All interest earned on account money shall be deposited in the account.
821          (5) On or before December 31, 2023, and every three years thereafter, the Office of the
822     Legislative Fiscal Analyst shall:
823          (a) review the percentages described in Subsections (2)(a)(i) and (2)(b); and
824          (b) recommend to the Executive Appropriations Subcommittee any changes based on
825     the review described in Subsection (5)(a).
826          Section 14. Section 53F-9-301 is amended to read:
827          53F-9-301. Charter School Levy Account.
828          (1) (a) The terms defined in Section 53G-5-102 apply to this section.
829          (b) As used in this section, "account" means the Charter School Levy Account created
830     in this section.
831          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
832     known as the "Charter School Levy Account."
833          (3) The account shall be funded by amounts deposited into the account in accordance
834     with Section 53F-2-703.
835          (4) Upon appropriation from the Legislature, the state board shall distribute funds from
836     the account as described in Section 53F-2-703.
837          (5) The account shall earn interest.
838          (6) Interest earned on the account shall be deposited into the account.
839          (7) Funds in the account are nonlapsing.
840          Section 15. Section 53F-9-302 is amended to read:
841          53F-9-302. Minimum Basic Growth Account.

842          (1) As used in this section, "account" means the Minimum Basic Growth Account
843     created in this section.
844          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
845     known as the "Minimum Basic Growth Account."
846          (3) The account shall be funded by amounts deposited into the account in accordance
847     with Section 53F-2-301 or 53F-2-301.5, as applicable.
848          (4) The account shall earn interest.
849          (5) Interest earned on the account shall be deposited into the account.
850          (6) Upon appropriation by the Legislature:
851          (a) 75% of the money from the account shall be used to fund the state's contribution to
852     the voted local levy guarantee described in Section 53F-2-601;
853          (b) 20% of the money from the account shall be used to fund the Capital Outlay
854     Foundation Program as provided in Section 53F-3-202; and
855          (c) 5% of the money from the account shall be used to fund the Capital Outlay
856     Enrollment Growth Program as provided in Section 53F-3-203.
857          Section 16. Section 53F-9-303 is amended to read:
858          53F-9-303. Charter School Reserve Account.
859          (1) The terms defined in Section 53G-5-601 apply to this section.
860          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
861     known as the "Charter School Reserve Account."
862          (3) The reserve account consists of:
863          (a) money credited to the account pursuant to Section 53G-5-607;
864          (b) money appropriated to the account by the Legislature;
865          (c) all income and interest derived from the deposit and investment of money in the
866     account;
867          (d) federal grants; and
868          (e) private donations.
869          (4) Money in the reserve account may be appropriated by the Legislature to:

870          (a) restore amounts on deposit in a debt service reserve fund of a qualifying charter
871     school to the debt service reserve fund requirement;
872          (b) pay fees and expenses of the authority;
873          (c) pay the principal of and interest on bonds issued for a qualifying charter school; or
874          (d) otherwise provide financial assistance to a qualifying charter school.
875          Section 17. Section 53F-9-304 is amended to read:
876          53F-9-304. Underage Drinking and Substance Abuse Prevention Program
877     Restricted Account.
878          (1) As used in this section, "account" means the Underage Drinking and Substance
879     Abuse Prevention Program Restricted Account created in this section.
880          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
881     known as the "Underage Drinking and Substance Abuse Prevention Program Restricted
882     Account."
883          (3) (a) Before the Department of Alcoholic Beverage Control deposits any portion of
884     the markup collected under Section 32B-2-304 into the Liquor Control Fund in accordance
885     with Section 32B-2-301, the Department of Alcoholic Beverage Control shall deposit into the
886     account:
887          (i) for the fiscal year that begins July 1, 2017, $1,750,000; or
888          (ii) for each fiscal year that begins on or after July 1, 2018, an amount equal to the
889     amount that the Department of Alcoholic Beverage Control deposited into the account during
890     the preceding fiscal year increased or decreased by a percentage equal to the percentage
891     difference between the Consumer Price Index for the second preceding calendar year and the
892     Consumer Price Index for the preceding calendar year.
893          (b) For purposes of this Subsection (3), the Department of Alcoholic Beverage Control
894     shall calculate the Consumer Price Index in accordance with 26 U.S.C. Secs. 1(f)(4) and
895     1(f)(5).
896          (4) The account shall be funded:
897          (a) in accordance with Subsection (3);

898          (b) by appropriations made to the account by the Legislature; and
899          (c) by interest earned on money in the account.
900          (5) The state board shall use money in the account for the Underage Drinking and
901     Substance Abuse Prevention Program described in Section 53G-10-406.
902          Section 18. Section 53F-9-305 is amended to read:
903          53F-9-305. Local Levy Growth Account.
904          (1) As used in this section, "account" means the Local Levy Growth Account created in
905     this section.
906          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
907     known as the "Local Levy Growth Account."
908          (3) The account shall be funded by:
909          (a) amounts deposited into the account in accordance with Section 53F-2-301 or
910     53F-2-301.5, as applicable; and
911          (b) other legislative appropriations.
912          (4) The account shall earn interest.
913          (5) Interest earned on the account shall be deposited into the account.
914          (6) The Legislature shall appropriate money in the account to the state board.
915          Section 19. Section 53F-9-306 is amended to read:
916          53F-9-306. Teacher and Student Success Account.
917          (1) As used in this section, "account" means the Teacher and Student Success Account
918     created in this section.
919          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
920     known as the "Teacher and Student Success Account."
921          (3) The account shall be funded by:
922          (a) amounts deposited into the account in accordance with Section 53F-2-301 or
923     53F-2-301.5, as applicable; and
924          (b) other legislative appropriations.
925          (4) The account shall earn interest.

926          (5) Interest earned on the account shall be deposited into the account.
927          (6) The Legislature shall appropriate money in the account to the state board.
928          Section 20. Section 53F-9-307 is amended to read:
929          53F-9-307. Charter School Closure Reserve Account.
930          (1) As used in this section:
931          (a) "Account" means the Charter School Closure Reserve Account created in this
932     section.
933          (b) "Charter school authorizer" or "authorizer" means an entity listed in Section
934     53G-5-205 that authorizes a charter school.
935          (2) There is created within the [Education Fund] Income Tax Fund a special revenue
936     fund known as the "Charter School Closure Reserve Account."
937          (3) The account consists of:
938          (a) appropriations of the Legislature;
939          (b) amounts deposited into the account in accordance with this section; and
940          (c) interest earned on money in the account.
941          (4) (a) The account shall earn interest.
942          (b) Interest earned on the account shall be deposited into the account.
943          (5) (a) In a fiscal year that begins on or after July 1, 2021, a charter school shall
944     annually contribute to the account $2 per student enrolled in the charter school until the
945     account balance reaches $3,000,000.
946          (b) (i) Beginning with the fiscal year following the first fiscal year in which the account
947     balance reaches $3,000,000, except as provided in Subsections (5)(b)(ii) and (iii), in any fiscal
948     year in which the account balance is less than $3,000,000, a charter school shall contribute to
949     the account a prorated amount, not to exceed $2 per student enrolled in a charter school, in
950     accordance with Subsection (6).
951          (ii) Except as provided in Subsection (5)(b)(iii), if no funds have been withdrawn from
952     the account due to a charter school closure, in a fiscal year that begins on or after July 1, 2024,
953     in which the account balance is less than $2,500,000, a charter school shall contribute to the

954     account a prorated amount, not to exceed $2 per student enrolled in a charter school, in
955     accordance with Subsection (6).
956          (iii) If no funds have been withdrawn from the account due to a charter school closure,
957     in a fiscal year that begins on or after July 1, 2026, in which the account balance is less than
958     $2,000,000, a charter school shall contribute to the account a prorated amount, not to exceed $2
959     per student enrolled in a charter school, in accordance with Subsection (6).
960          (c) The state board shall ensure that the total contribution from charter schools
961     described in Subsection (5)(b) equals the lesser of:
962          (i) (A) in a fiscal year after the first fiscal year in which the account balance reaches
963     $3,000,000, an amount sufficient to maintain an account balance of $3,000,000;
964          (B) in a fiscal year that begins on or after July 1, 2024, if no funds have been
965     withdrawn from the account due to charter school closure, an amount sufficient to maintain an
966     account balance of $2,500,000; or
967          (C) in a fiscal year that begins on or after July 1, 2026, if no funds have been
968     withdrawn from the account due to charter school closure, an amount sufficient to maintain an
969     account balance of $2,000,000; and
970          (ii) $2 per student enrolled in a charter school.
971          (6) The state board of education shall make rules in accordance with Title 63G,
972     Chapter 3, Utah Administrative Rulemaking Act, for:
973          (a) calculating the amounts described in Subsections (5)(b) and (c);
974          (b) a process for collecting charter school contributions to the account described in this
975     section; and
976          (c) a process for depositing charter school contributions to the account described in this
977     section into the account.
978          (7) Money in the account may only be used upon closure of a charter school that closes
979     on or after January 1, 2021:
980          (a) to pay debts that the charter school owes to:
981          (i) the state board; or

982          (ii) the state or federal government;
983          (b) after the charter school has made other reasonable attempts to resolve debts the
984     charter school owes to:
985          (i) the state board; or
986          (ii) the state or federal government; and
987          (c) after a charter school liquidates all of the charter school's assets.
988          (8) Money in the account may not be used to pay bond debt.
989          (9) The state board, in partnership with a charter school authorizer:
990          (a) may authorize the use of money in the account, subject to the restrictions described
991     in Subsections (7) and (8); and
992          (b) before authorizing the use of funds in the account as described in Subsection (9)(a),
993     shall investigate all reasonable alternatives for a charter school to pay debt that the charter
994     school owes to:
995          (i) the state board; and
996          (ii) the state or federal government.
997          Section 21. Section 59-7-532 is amended to read:
998          59-7-532. Revenue received by commission -- Deposit with state treasurer --
999     Distribution or crediting to Income Tax Fund -- Refund claim payments.
1000          (1) (a) The commission shall deposit at least quarterly all revenue collected or received
1001     by the commission under this chapter with the state treasurer.
1002          (b) The commission shall, subject to the refund provisions of this section, distribute or
1003     credit, at least quarterly and based on a pro rata share of [Education Fund] Income Tax Fund
1004     and Uniform School Fund appropriations for the current fiscal year, the revenue described in
1005     Subsection (1)(a) to:
1006          (i) the [Education Fund] Income Tax Fund; and
1007          (ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
1008          (c) The commission may credit to or draw from the [Education Fund] Income Tax
1009     Fund and the Uniform School Fund:

1010          (i) annually to adjust for differences between estimates and actual amounts; or
1011          (ii) in the proportion described in Subsection (1)(b) to issue a refund.
1012          (2) The commission shall from time to time certify to the state auditor the amount of
1013     any refund authorized by it, the amount of interest computed on it under the provisions of
1014     Section 59-7-533, from whom the tax to be refunded was collected, or by whom it was paid,
1015     and such refund claims shall be paid in order out of the funds first accruing to the [Education
1016     Fund] Income Tax Fund from the provisions of this section.
1017          Section 22. Section 59-7-614.1 is amended to read:
1018          59-7-614.1. Refundable tax credit for hand tools used in farming operations --
1019     Procedures for refund -- Transfers from General Fund to Income Tax Fund --
1020     Rulemaking authority.
1021          (1) For a taxable year beginning on or after January 1, 2004, a taxpayer may claim a
1022     refundable tax credit:
1023          (a) as provided in this section;
1024          (b) against taxes otherwise due under this chapter; and
1025          (c) in an amount equal to the amount of tax the taxpayer pays:
1026          (i) on a purchase of a hand tool:
1027          (A) if the purchase is made on or after July 1, 2004;
1028          (B) if the hand tool is used or consumed primarily and directly in a farming operation
1029     in the state; and
1030          (C) if the unit purchase price of the hand tool is more than $250; and
1031          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1032     (1)(c)(i).
1033          (2) A taxpayer:
1034          (a) shall retain the following to establish the amount of tax the resident or nonresident
1035     individual paid under Chapter 12, Sales and Use Tax Act, on the purchase described in
1036     Subsection (1)(c)(i):
1037          (i) a receipt;

1038          (ii) an invoice; or
1039          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
1040          (b) may not carry forward or carry back a tax credit under this section.
1041          (3) (a) In accordance with any rules prescribed by the commission under Subsection
1042     (3)(b):
1043          (i) the commission shall make a refund to a taxpayer that claims a tax credit under this
1044     section if the amount of the tax credit exceeds the taxpayer's tax liability under this chapter;
1045     and
1046          (ii) the Division of Finance shall transfer at least annually from the General Fund into
1047     the [Education Fund] Income Tax Fund an amount equal to the amount of tax credit claimed
1048     under this section.
1049          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1050     commission may make rules providing procedures for making:
1051          (i) a refund to a taxpayer as required by Subsection (3)(a)(i); or
1052          (ii) transfers from the General Fund into the [Education Fund] Income Tax Fund as
1053     required by Subsection (3)(a)(ii).
1054          Section 23. Section 59-10-544 is amended to read:
1055          59-10-544. General powers and duties of the commission -- Deposit, distribution,
1056     or credit of revenues -- Refund reverts to state under certain circumstances.
1057          (1) (a) The commission shall administer and enforce a tax imposed under this chapter
1058     for which purpose it may divide the state into districts in each of which a branch office of the
1059     commission may be maintained.
1060          (b) A county may not be divided in forming a district.
1061          (2) (a) The commission shall deposit at least quarterly all revenue collected or received
1062     by the commission under this chapter with the state treasurer.
1063          (b) Subject to Sections 59-10-529 and 59-10-531, the commission shall distribute and
1064     credit, at least quarterly and based on a pro rata share of [Education Fund] Income Tax Fund
1065     and Uniform School Fund appropriations for the current fiscal year, the revenue described in

1066     Subsection (2)(a) to:
1067          (i) the [Education Fund] Income Tax Fund; and
1068          (ii) the Uniform School Fund in accordance with Section 53F-9-201.1.
1069          (c) The commission may credit to or draw from the [Education Fund] Income Tax
1070     Fund and the Uniform School Fund:
1071          (i) annually to adjust for differences between estimates and actual amounts; or
1072          (ii) in the proportion described in Subsection (2)(b) to issue a refund.
1073          (d) If a refund the commission makes is not claimed within two years from the date the
1074     commission issues the refund:
1075          (i) the refund reverts to the state to be credited to the [Education Fund] Income Tax
1076     Fund; and
1077          (ii) no further claim may be made on the commission for the amount of the refund.
1078          Section 24. Section 59-10-1005 is amended to read:
1079          59-10-1005. Tax credit for at-home parent.
1080          (1) As used in this section:
1081          (a) "At-home parent" means a parent:
1082          (i) who provides full-time care at the parent's residence for one or more of the parent's
1083     own qualifying children;
1084          (ii) who claims the qualifying child as a dependent on the parent's individual income
1085     tax return for the taxable year for which the parent claims the credit; and
1086          (iii) if the sum of the following amounts are $3,000 or less for the taxable year for
1087     which the parent claims the credit:
1088          (A) the total wages, tips, and other compensation listed on all of the parent's federal
1089     Forms W-2; and
1090          (B) the gross income listed on the parent's federal Form 1040 Schedule C, Profit or
1091     Loss From Business.
1092          (b) "Parent" means an individual who:
1093          (i) is the biological mother or father of a qualifying child;

1094          (ii) is the stepfather or stepmother of a qualifying child;
1095          (iii) (A) legally adopts a qualifying child; or
1096          (B) has a qualifying child placed in the individual's home:
1097          (I) by a child-placing agency, as defined in Section 62A-2-101; and
1098          (II) for the purpose of legally adopting the child;
1099          (iv) is a foster parent of a qualifying child; or
1100          (v) is a legal guardian of a qualifying child.
1101          (c) "Qualifying child" means a child who is no more than 12 months of age on the last
1102     day of the taxable year for which the tax credit is claimed.
1103          (2) For a taxable year beginning on or after January 1, 2000, a claimant may claim on
1104     the claimant's individual income tax return a nonrefundable tax credit of $100 for each
1105     qualifying child if:
1106          (a) the claimant or another claimant filing a joint individual income tax return with the
1107     claimant is an at-home parent; and
1108          (b) the adjusted gross income of all of the claimants filing the individual income tax
1109     return is less than or equal to $50,000.
1110          (3) A claimant may not carry forward or carry back a tax credit authorized by this
1111     section.
1112          (4) (a) In accordance with any rules prescribed by the commission under Subsection
1113     (4)(b), the Division of Finance shall transfer at least annually from the General Fund into the
1114     [Education Fund] Income Tax Fund the aggregate amount of all tax credits claimed under this
1115     section.
1116          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1117     commission may make rules for making a transfer from the General Fund into the [Education
1118     Fund] Income Tax Fund as required by Subsection (4)(a).
1119          Section 25. Section 59-10-1105 is amended to read:
1120          59-10-1105. Tax credit for hand tools used in farming operations -- Procedures
1121     for refund -- Transfers from General Fund to Income Tax Fund -- Rulemaking authority.

1122          (1) For a taxable year beginning on or after January 1, 2004, a claimant, estate, or trust
1123     may claim a refundable tax credit:
1124          (a) as provided in this section;
1125          (b) against taxes otherwise due under this chapter; and
1126          (c) in an amount equal to the amount of tax the claimant, estate, or trust pays:
1127          (i) on a purchase of a hand tool:
1128          (A) if the purchase is made on or after July 1, 2004;
1129          (B) if the hand tool is used or consumed primarily and directly in a farming operation
1130     in the state; and
1131          (C) if the unit purchase price of the hand tool is more than $250; and
1132          (ii) under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1133     (1)(c)(i).
1134          (2) A claimant, estate, or trust:
1135          (a) shall retain the following to establish the amount of tax the claimant, estate, or trust
1136     paid under Chapter 12, Sales and Use Tax Act, on the purchase described in Subsection
1137     (1)(c)(i):
1138          (i) a receipt;
1139          (ii) an invoice; or
1140          (iii) a document similar to a document described in Subsection (2)(a)(i) or (ii); and
1141          (b) may not carry forward or carry back a tax credit under this section.
1142          (3) (a) In accordance with any rules prescribed by the commission under Subsection
1143     (3)(b):
1144          (i) the commission shall make a refund to a claimant, estate, or trust that claims a tax
1145     credit under this section if the amount of the tax credit exceeds the claimant's, estate's, or trust's
1146     tax liability under this chapter; and
1147          (ii) the Division of Finance shall transfer at least annually from the General Fund into
1148     the [Education Fund] Income Tax Fund an amount equal to the aggregate amount of all tax
1149     credits claimed under this section.

1150          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1151     commission may make rules providing procedures for making:
1152          (i) a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i); or
1153          (ii) transfers from the General Fund into the [Education Fund] Income Tax Fund as
1154     required by Subsection (3)(a)(ii).
1155          Section 26. Section 59-13-202 is amended to read:
1156          59-13-202. Refund of tax for agricultural uses on individual income and
1157     corporate franchise and income tax returns -- Application for permit for refund --
1158     Division of Finance to pay claims -- Rules permitted to enforce part -- Penalties --
1159     Revenue and Taxation Interim Committee study.
1160          (1) As used in this section:
1161          (a) (i) Except at provided in Subsection (1)(a)(ii), "claimant" means a resident or
1162     nonresident person.
1163          (ii) "Claimant" does not include an estate or trust.
1164          (b) "Estate" means a nonresident estate or a resident estate.
1165          (c) "Refundable tax credit" or "tax credit" means a tax credit that a claimant, estate, or
1166     trust may claim:
1167          (i) as provided by statute; and
1168          (ii) regardless of whether, for the taxable year for which the claimant, estate, or trust
1169     claims the tax credit, the claimant, estate, or trust has a tax liability under:
1170          (A) Chapter 7, Corporate Franchise and Income Taxes; or
1171          (B) Chapter 10, Individual Income Tax Act.
1172          (d) "Trust" means a nonresident trust or a resident trust.
1173          (2) Any claimant, estate, or trust that purchases and uses any motor fuel within the state
1174     for the purpose of operating or propelling stationary farm engines and self-propelled farm
1175     machinery used for nonhighway agricultural uses, and that has paid the tax on the motor fuel as
1176     provided by this part, is entitled to a refund of the tax subject to the conditions and limitations
1177     provided under this part.

1178          (3) (a) A claimant, estate, or trust desiring a nonhighway agricultural use refund under
1179     this part shall claim the refund as a refundable tax credit on the tax return the claimant, estate,
1180     or trust files under:
1181          (i) Chapter 7, Corporate Franchise and Income Taxes; or
1182          (ii) Chapter 10, Individual Income Tax Act.
1183          (b) A claimant, estate, or trust not subject to filing a tax return described in Subsection
1184     (3)(a) shall obtain a permit and file claims on a calendar year basis.
1185          (c) Any claimant, estate, or trust claiming a refundable tax credit under this section is
1186     required to furnish any or all of the information outlined in this section upon request of the
1187     commission.
1188          (d) A refundable tax credit under this section is allowed only on purchases on which
1189     tax is paid during the taxable year covered by the tax return.
1190          (4) In order to obtain a permit for a refund of motor fuel tax paid, an application shall
1191     be filed containing:
1192          (a) the name of the claimant, estate, or trust;
1193          (b) the claimant's, estate's, or trust's address;
1194          (c) location and number of acres owned and operated, location and number of acres
1195     rented and operated, the latter of which shall be verified by a signed statement from the legal
1196     owner;
1197          (d) number of acres planted to each crop, type of soil, and whether irrigated or dry; and
1198          (e) make, size, and type of fuel used and power rating of each piece of equipment using
1199     fuel. If the claimant, estate, or trust is an operator of self-propelled or tractor-pulled farm
1200     machinery with which the claimant, estate, or trust works for hire doing custom jobs for other
1201     farmers, the application shall include information the commission requires and shall all be
1202     contained in, and be considered part of, the original application. The claimant, estate, or trust
1203     shall also file with the application a certificate from the county assessor showing each piece of
1204     equipment using fuel. This original application and all information contained in it constitutes a
1205     permanent file with the commission in the name of the claimant, estate, or trust.

1206          (5) A claimant, estate, or trust claiming the right to a refund of motor fuel tax paid shall
1207     file a claim with the commission by April 15 of each year for the refund for the previous
1208     calendar year. The claim shall state the name and address of the claimant, estate, or trust, the
1209     number of gallons of motor fuel purchased for nonhighway agricultural uses, and the amount
1210     paid for the motor fuel. The claimant, estate, or trust shall retain the original invoice to support
1211     the claim. No more than one claim for a tax refund may be filed annually by each user of
1212     motor fuel purchased for nonhighway agricultural uses.
1213          (6) Upon commission approval of the claim for a refund, the Division of Finance shall
1214     pay the amount found due to the claimant, estate, or trust. The total amount of claims for
1215     refunds shall be paid from motor fuel taxes.
1216          (7) The commission may refuse to accept as evidence of purchase or payment any
1217     instruments that show alteration or that fail to indicate the quantity of the purchase, the price of
1218     the motor fuel, a statement that the motor fuel is purchased for purposes other than
1219     transportation, and the date of purchase and delivery. If the commission is not satisfied with
1220     the evidence submitted in connection with the claim, the commission may reject the claim or
1221     require additional evidence.
1222          (8) A claimant, estate, or trust aggrieved by the decision of the commission with
1223     respect to a refundable tax credit or refund may file a request for agency action, requesting a
1224     hearing before the commission.
1225          (9) A claimant, estate, or trust that makes any false claim, report, or statement, as
1226     claimant, estate, trust, agent, or creditor, with intent to defraud or secure a refund to which the
1227     claimant, estate, or trust is not entitled, is subject to the criminal penalties provided under
1228     Section 59-1-401, and the commission shall initiate the filing of a complaint for alleged
1229     violations of this part. In addition to these penalties, the claimant, estate, or trust may not
1230     receive any refund as a claimant, estate, or trust or as a creditor of a claimant, estate, or trust for
1231     refund for a period of five years.
1232          (10) (a) In accordance with any rules prescribed by the commission under Subsection
1233     (10)(b), the Division of Finance shall transfer at least annually from the Transportation Fund

1234     into the [Education Fund] Income Tax Fund an amount equal to the amount of the refund
1235     claimed under this section.
1236          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1237     commission may make rules providing procedures for:
1238          (i) making a refund to a claimant, estate, or trust as required by Subsection (3)(a)(i);
1239          (ii) making a transfer from the Transportation Fund into the [Education Fund] Income
1240     Tax Fund as required by Subsection (10)(a); or
1241          (iii) enforcing this part.
1242          (11) (a) On or before November 30, 2017, and every three years after 2017, the
1243     Revenue and Taxation Interim Committee shall review the tax credit provided by this section
1244     and make recommendations concerning whether the tax credit should be continued, modified,
1245     or repealed.
1246          (b) In conducting the review required by Subsection (11)(a), the Revenue and Taxation
1247     Interim Committee shall:
1248          (i) schedule time on at least one committee agenda to conduct the review;
1249          (ii) invite state agencies, individuals, and organizations concerned with the credit under
1250     review to provide testimony;
1251          (iii) ensure that the recommendations described in this section include an evaluation of:
1252          (A) the cost of the tax credit to the state;
1253          (B) the purpose and effectiveness of the tax credit; and
1254          (C) the extent to which the state benefits from the tax credit; and
1255          (iv) undertake other review efforts as determined by the chairs of the Revenue and
1256     Taxation Interim Committee.
1257          Section 27. Section 63A-5b-406 is amended to read:
1258          63A-5b-406. Limitations on new projects.
1259          (1) The Legislature may authorize:
1260          (a) the total square footage to be occupied by each agency; and
1261          (b) the total square footage and total cost of lease space for each agency.

1262          (2) If construction of a new building or facility will require an immediate or future
1263     increase in state funding for operations and maintenance or for capital improvements, the
1264     Legislature may not authorize the new building or facility until the Legislature appropriates
1265     funds for:
1266          (a) the portion of operations and maintenance, if any, that will require an immediate or
1267     future increase in state funding; and
1268          (b) the portion of capital improvements, if any, that will require an immediate or future
1269     increase in state funding.
1270          (3) (a) Except as provided in Subsections (3)(b) and (c), the Legislature may not fund
1271     the design or construction of any new capital development project, except to complete the
1272     funding of a project for which partial funding has been previously provided, until the
1273     Legislature has appropriated 1.1% of the replacement cost of existing state facilities and
1274     infrastructure to capital improvements.
1275          (b) If the Legislature determines that there exists an [Education Fund] Income Tax
1276     Fund budget deficit, as defined in Section 63J-1-312, or a General Fund budget deficit, as
1277     defined in Section 63J-1-312, the Legislature may, in eliminating the deficit, reduce the amount
1278     appropriated to capital improvements to 0.9% of the replacement cost of state buildings and
1279     infrastructure.
1280          (c) Subsection (3)(a) does not apply to a dedicated project as defined in Section
1281     63A-5b-403.
1282          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), the Legislature may not fund the
1283     design and construction of a new facility in phases over more than one year unless the
1284     Legislature approves the funding for both the design and construction by a vote of two-thirds of
1285     all the members elected to each house.
1286          (ii) Subsection (4)(a)(i) does not apply to a dedicated project as defined in Section
1287     63A-5b-403.
1288          (b) An agency shall receive approval from the director before the agency begins
1289     programming for a new facility:

1290          (i) that requires legislative approval; or
1291          (ii) to be built under Subsection 63A-5b-404(2).
1292          (c) The division or an agency may fund the programming of a new facility before the
1293     Legislature makes an appropriation for the new facility under Subsection (4)(a).
1294          (5) (a) The director, with the approval of the Office of the Legislative Fiscal Analyst,
1295     shall develop standard forms to present capital development project and capital improvement
1296     project cost summary data.
1297          (b) The director shall:
1298          (i) within 30 days after the completion of each capital development project, submit cost
1299     summary data for the project on the standard form to the Office of the Legislative Fiscal
1300     Analyst; and
1301          (ii) upon request, submit cost summary data for a capital improvement project to the
1302     Office of the Legislative Fiscal Analyst on the standard form.
1303          (6) (a) After the Legislature approves capital development project priorities under
1304     Section 63A-5b-402 and capital improvement project priorities under Section 63A-5b-405, the
1305     director may reallocate capital development project or capital improvement project funds to
1306     address a critical need for a capital improvement project:
1307          (i) if an emergency arises that creates an unforeseen and critical need for the capital
1308     improvement project; and
1309          (ii) notwithstanding the requirements of Title 63J, Chapter 1, Budgetary Procedures
1310     Act.
1311          (b) The director shall report any changes the director makes in capital development
1312     project or capital improvement project allocations approved by the Legislature to:
1313          (i) the Office of the Legislative Fiscal Analyst within 30 days after the reallocation; and
1314          (ii) the Legislature at the Legislature's next annual general session.
1315          Section 28. Section 63J-1-102 is amended to read:
1316          63J-1-102. Definitions.
1317          As used in this chapter:

1318          (1) "Agency" means a unit of accounting, typically associated with a department,
1319     division, board, council, committee, institution, office, bureau, or other similar administrative
1320     unit of state government, that includes line items and programs.
1321          (2) "Budget execution plan" means a proposal submitted by an administrative unit of
1322     state government to the Division of Finance enumerating expected revenues and authorized
1323     expenditures within line items and among programs.
1324          (3) "Debt service" means the money that is required annually to cover the repayment of
1325     interest and principal on state debt.
1326          (4) (a) "Dedicated credits" means collections by an agency that fund agency operations.
1327          (b) "Dedicated credits" includes:
1328          (i) assessments;
1329          (ii) sales of goods and materials;
1330          (iii) sales of services;
1331          (iv) permits, licenses, and other fees;
1332          (v) fines, penalties, and forfeitures; and
1333          (vi) rental revenue.
1334          (c) "Dedicated credits" does not include:
1335          (i) expendable receipts;
1336          (ii) revenues otherwise designated by law for deposit into another fund or account;
1337          (iii) federal revenues and the related pass through; or
1338          (iv) revenues that are not deposited in governmental funds.
1339          (5) (a) "Expendable receipts" means collections by an agency for expenditures that are
1340     limited by a nonstate entity that provides the funds.
1341          (b) "Expendable receipts" includes:
1342          (i) grants;
1343          (ii) state matches for federal revenues paid by a nonstate entity; and
1344          (iii) rebates, including pharmacy rebates, that have similar restrictions on expenditures
1345     as the original program.

1346          (c) "Expendable receipts" does not include:
1347          (i) dedicated credits;
1348          (ii) revenues otherwise designated by law for deposit into another fund or account;
1349          (iii) federal revenues and the related pass through; or
1350          (iv) revenues that are not deposited into governmental funds.
1351          (6) "Federal revenues" means collections by an agency from a federal source that are
1352     deposited into an account for expenditure by the agency.
1353          (7) "Free revenue" includes:
1354          (a) collections that are required by law to be deposited in:
1355          (i) the General Fund;
1356          (ii) the [Education Fund] Income Tax Fund;
1357          (iii) the Uniform School Fund; or
1358          (iv) the Transportation Fund;
1359          (b) collections that are not otherwise designated by law;
1360          (c) collections that are not externally restricted; and
1361          (d) collections that are not included in an approved budget execution plan.
1362          (8) "Grant" means the same as that term is defined in Section 63J-7-101.
1363          (9) (a) "Item of appropriation" means an authorization of expenditure contained in
1364     legislation that appropriates funds and includes the following:
1365          (i) the name of the agency and line item to which authorization is granted; and
1366          (ii) sources of finance from which authorization is granted and associated amounts
1367     authorized.
1368          (b) "Item of appropriation" also includes:
1369          (i) a schedule of programs;
1370          (ii) intent language;
1371          (iii) approved full-time equivalent employment;
1372          (iv) authorized capital outlay; and
1373          (v) other conditions of appropriation.

1374          (10) "Line item" means a unit of accounting, typically representing an administrative
1375     unit of state government within an agency, that contains one or more programs.
1376          (11) "Major revenue types" means:
1377          (a) free revenue;
1378          (b) federal revenue;
1379          (c) restricted revenue;
1380          (d) dedicated credits; and
1381          (e) expendable receipts.
1382          (12) "Program" means a unit of accounting included on a schedule of programs within
1383     a line item used to track budget authorizations, collections, and expenditures on specific
1384     purposes or functions.
1385          (13) "Restricted revenue" means collections that are:
1386          (a) deposited, by law, into a separate fund, subfund, or account; and
1387          (b) designated for a specific program or purpose.
1388          (14) "Schedule of programs" means a list of programs and associated authorization
1389     amounts within an item of appropriation.
1390          Section 29. Section 63J-1-205 is amended to read:
1391          63J-1-205. Revenue volatility report.
1392          (1) Beginning in 2011 and continuing every three years after 2011, the Legislative
1393     Fiscal Analyst and the Governor's Office of Planning and Budget shall submit a joint revenue
1394     volatility report to the Executive Appropriations Committee prior to the committee's December
1395     meeting.
1396          (2) The Legislative Fiscal Analyst and the Governor's Office of Planning and Budget
1397     shall ensure that the report:
1398          (a) discusses the tax base and the tax revenue volatility of the revenue streams that
1399     provide the source of funding for the state budget;
1400          (b) considers federal funding included in the state budget and any projected changes in
1401     the amount or value of federal funding;

1402          (c) identifies the balances in the General Fund Budget Reserve Account and the
1403     [Education Fund] Income Tax Fund Budget Reserve Account;
1404          (d) analyzes the adequacy of the balances in the General Fund Budget Reserve Account
1405     and the [Education Fund] Income Tax Fund Budget Reserve Account in relation to the
1406     volatility of the revenue streams and the risk of a reduction in the amount or value of federal
1407     funding;
1408          (e) recommends changes to the deposit amounts or transfer limits established in
1409     Sections 63J-1-312 and 63J-1-313, if the Legislative Fiscal Analyst and Governor's Office of
1410     Planning and Budget consider it appropriate to recommend changes; and
1411          (f) presents options for a deposit mechanism linked to one or more tax sources on the
1412     basis of each tax source's observed volatility, including:
1413          (i) an analysis of how the options would have performed historically within the state;
1414          (ii) an analysis of how the options will perform based on the most recent revenue
1415     forecast; and
1416          (iii) recommendations for deposit mechanisms considered likely to meet the budget
1417     reserve account targets established in Sections 63J-1-312 and 63J-1-313.
1418          Section 30. Section 63J-1-217 is amended to read:
1419          63J-1-217. Overexpenditure of budget by agency -- Prorating budget income
1420     shortfall.
1421          (1) Expenditures of departments, agencies, and institutions of state government shall be
1422     kept within revenues available for such expenditures.
1423          (2) (a) Line items of appropriation shall not be overexpended.
1424          (b) Notwithstanding Subsection (2)(a), if an agency's line item is overexpended at the
1425     close of a fiscal year:
1426          (i) the director of the Division of Finance may make payments from the line item to
1427     vendors for goods or services that were received on or before June 30; and
1428          (ii) the director of the Division of Finance shall immediately reduce the agency's line
1429     item budget in the current year by the amount of the overexpenditure.

1430          (c) Each agency with an overexpended line item shall:
1431          (i) prepare a written report explaining the reasons for the overexpenditure; and
1432          (ii) present the report to:
1433          (A) the Board of Examiners as required by Section 63G-9-301; and
1434          (B) the Office of the Legislative Fiscal Analyst.
1435          (3) (a) As used in this Subsection (3):
1436          (i) "[Education Fund] Income Tax Fund budget deficit" has the same meaning as in
1437     Section 63J-1-312; and
1438          (ii) "General Fund budget deficit" has the same meaning as in Section 63J-1-312.
1439          (b) If an [Education Fund] Income Tax Fund budget deficit or a General Fund budget
1440     deficit exists and the adopted estimated revenues were prepared in consensus with the
1441     Governor's Office of Planning and Budget, the governor shall:
1442          (i) direct state agencies to reduce commitments and expenditures by an amount
1443     proportionate to the amount of the deficiency; and
1444          (ii) direct the Division of Finance to reduce allotments to institutions of higher
1445     education by an amount proportionate to the amount of the deficiency.
1446          (c) The governor's directions under Subsection (3)(b) are rescinded when the
1447     Legislature rectifies the [Education Fund] Income Tax Fund budget deficit and the General
1448     Fund budget deficit.
1449          (4) (a) A department may not receive an advance of funds that cannot be covered by
1450     anticipated revenue within the budget execution plan of the fiscal year, unless the governor
1451     allocates money from the governor's emergency appropriations.
1452          (b) All allocations made from the governor's emergency appropriations shall be
1453     reported to the budget subcommittee of the Legislative Management Committee by notifying
1454     the Office of the Legislative Fiscal Analyst at least 15 days before the effective date of the
1455     allocation.
1456          (c) Emergency appropriations shall be allocated only to support activities having
1457     existing legislative approval and appropriation, and may not be allocated to any activity or

1458     function rejected directly or indirectly by the Legislature.
1459          Section 31. Section 63J-1-312 is amended to read:
1460          63J-1-312. Establishing a General Fund Budget Reserve Account -- Providing for
1461     deposits and expenditures from the account -- Providing for interest generated by the
1462     account.
1463          (1) As used in this section:
1464          (a) "[Education Fund] Income Tax Fund budget deficit" means a situation where
1465     appropriations made by the Legislature from the [Education Fund] Income Tax Fund for a
1466     fiscal year exceed the estimated revenues adopted by the Executive Appropriations Committee
1467     of the Legislature for the [Education Fund] Income Tax Fund in that fiscal year.
1468          (b) "General Fund appropriations" means the sum of the spending authority for a fiscal
1469     year that is:
1470          (i) granted by the Legislature in all appropriation acts and bills; and
1471          (ii) identified as coming from the General Fund.
1472          (c) "General Fund budget deficit" means a situation where General Fund appropriations
1473     made by the Legislature for a fiscal year exceed the estimated revenues adopted by the
1474     Executive Appropriations Committee of the Legislature for the General Fund in that fiscal year.
1475          (d) "General Fund revenue surplus" means a situation where actual General Fund
1476     revenues collected in a completed fiscal year exceed the estimated revenues for the General
1477     Fund for that fiscal year that were adopted by the Executive Appropriations Committee of the
1478     Legislature.
1479          (e) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
1480     balance in the General Fund is less than zero.
1481          (2) There is created within the General Fund a restricted account to be known as the
1482     General Fund Budget Reserve Account, which is designated to receive the legislative
1483     appropriations and the surplus revenue required to be deposited into the account by this section.
1484          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
1485     which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in

1486     conjunction with the completion of the annual audit by the state auditor, determines that there
1487     is a General Fund revenue surplus, the Division of Finance shall transfer 25% of the General
1488     Fund revenue surplus to the General Fund Budget Reserve Account.
1489          (ii) If the transfer of 25% of the General Fund revenue surplus to the General Fund
1490     Budget Reserve Account would cause the balance in the account to exceed 9% of General Fund
1491     appropriations for the fiscal year in which the revenue surplus occurred, the Division of
1492     Finance shall transfer only those funds necessary to ensure that the balance in the account
1493     equals 9% of General Fund appropriations for the fiscal year in which the General Fund
1494     revenue surplus occurred.
1495          (iii) The Division of Finance shall calculate the amount to be transferred under this
1496     Subsection (3)(a):
1497          (A) after making the transfer of General Fund revenue surplus to the Medicaid Growth
1498     Reduction and Budget Stabilization Account, as provided in Section 63J-1-315;
1499          (B) before transferring from the General Fund revenue surplus any other year-end
1500     contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1501     and
1502          (C) excluding any direct legislative appropriation made to the General Fund Budget
1503     Reserve Account for the fiscal year.
1504          (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
1505     a General Fund revenue surplus exists and if, within the last 10 years, the Legislature has
1506     appropriated any money from the General Fund Budget Reserve Account that has not been
1507     replaced by appropriation or as provided in this Subsection (3)(b), the Division of Finance shall
1508     transfer up to 25% more of the General Fund revenue surplus to the General Fund Budget
1509     Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if
1510     any, and transfers from the General Fund revenue surplus under this Subsection (3)(b) have
1511     replaced the appropriations from the account.
1512          (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
1513     exceed 9% of General Fund appropriations for the fiscal year in which the revenue surplus

1514     occurred, the Division of Finance shall transfer only those funds necessary to ensure that the
1515     balance in the account equals 9% of General Fund appropriations for the fiscal year in which
1516     the revenue surplus occurred.
1517          (iii) The Division of Finance shall calculate the amount to be transferred under this
1518     Subsection (3)(b):
1519          (A) after making the transfer of General Fund revenue surplus to the Medicaid Growth
1520     Reduction and Budget Stabilization Account, as provided in Section 63J-1-315;
1521          (B) before transferring from the General Fund revenue surplus any other year-end
1522     contingency appropriations, year-end set-asides, or other year-end transfers required by law;
1523     and
1524          (C) excluding any direct legislative appropriation made to the General Fund Budget
1525     Reserve Account for the fiscal year.
1526          (c) For appropriations made by the Legislature to the General Fund Budget Reserve
1527     Account, the Division of Finance shall treat those appropriations, unless otherwise specified in
1528     the appropriation, as replacement funds for appropriations made from the account if funds were
1529     appropriated from the General Fund Budget Reserve Account within the past 10 years and have
1530     not yet been replaced.
1531          (4) The Legislature may appropriate money from the General Fund Budget Reserve
1532     Account only to:
1533          (a) resolve a General Fund budget deficit, for the fiscal year in which the General Fund
1534     budget deficit occurs;
1535          (b) pay some or all of state settlement agreements approved under Title 63G, Chapter
1536     10, State Settlement Agreements Act;
1537          (c) pay claims approved under Section 63G-9-304;
1538          (d) pay retroactive tax refunds;
1539          (e) resolve an [Education Fund] Income Tax Fund budget deficit; or
1540          (f) finance an existing federally funded program or activity when:
1541          (i) the federal funds expected to fund the federal program or activity are not available

1542     to fund the program or activity; and
1543          (ii) the Legislature and governor concurrently determine that the program or activity is
1544     essential.
1545          (5) Interest generated from investments of money in the General Fund Budget Reserve
1546     Account shall be deposited into the General Fund.
1547          Section 32. Section 63J-1-313 is amended to read:
1548          63J-1-313. Establishing an Income Tax Fund Budget Reserve Account --
1549     Providing for deposits and expenditures from the account -- Providing for interest
1550     generated by the account.
1551          (1) As used in this section:
1552          (a) "[Education Fund] Income Tax Fund appropriations" means the sum of the
1553     spending authority for a fiscal year that is:
1554          (i) granted by the Legislature in all appropriation acts and bills; and
1555          (ii) identified as coming from the [Education Fund] Income Tax Fund.
1556          (b) "[Education Fund] Income Tax Fund budget deficit" means a situation where
1557     appropriations made by the Legislature from the [Education Fund] Income Tax Fund for a
1558     fiscal year exceed the estimated revenues adopted by the Executive Appropriations Committee
1559     of the Legislature for the [Education Fund] Income Tax Fund in that fiscal year.
1560          (c) "[Education Fund] Income Tax Fund revenue surplus" means a situation where
1561     actual [Education Fund] Income Tax Fund revenues collected in a completed fiscal year exceed
1562     the estimated revenues for the [Education Fund] Income Tax Fund in that fiscal year that were
1563     adopted by the Executive Appropriations Committee of the Legislature.
1564          (d) "Operating deficit" means that, at the end of the fiscal year, the unassigned fund
1565     balance in the [Education Fund] Income Tax Fund is less than zero.
1566          (2) There is created within the [Education Fund] Income Tax Fund a restricted account
1567     to be known as the [Education Fund] Income Tax Fund Budget Reserve Account, which is
1568     designated to receive the legislative appropriations and the surplus revenue required to be
1569     deposited into the account by this section.

1570          (3) (a) (i) Except as provided in Subsection (3)(a)(ii), at the end of any fiscal year in
1571     which the Division of Finance, in consultation with the Legislative Fiscal Analyst and in
1572     conjunction with the completion of the annual audit by the state auditor, determines that there
1573     is an [Education Fund] Income Tax Fund revenue surplus, the Division of Finance shall
1574     transfer 25% of the [Education Fund] Income Tax Fund revenue surplus to the [Education
1575     Fund] Income Tax Fund Budget Reserve Account.
1576          (ii) If the transfer of 25% of the [Education Fund] Income Tax Fund revenue surplus to
1577     the [Education Fund] Income Tax Fund Budget Reserve Account under Subsection (3)(a)(i)
1578     would cause the balance in the account to exceed 11% of [Education Fund] Income Tax Fund
1579     appropriations for the fiscal year in which the [Education Fund] Income Tax Fund revenue
1580     surplus occurred, the Division of Finance shall transfer only those funds necessary to ensure
1581     that the balance in the account equals 11% of the [Education Fund] Income Tax Fund
1582     appropriations for the fiscal year in which the [Education Fund] Income Tax Fund revenue
1583     surplus occurred.
1584          (iii) The Division of Finance shall calculate the amount to be transferred under this
1585     Subsection (3)(a):
1586          (A) before transferring from the [Education Fund] Income Tax Fund revenue surplus
1587     any other year-end contingency appropriations, year-end set-asides, or other year-end transfers
1588     required by law; and
1589          (B) excluding any direct legislative appropriation made to the [Education Fund]
1590     Income Tax Fund Budget Reserve Account for the fiscal year.
1591          (b) (i) Except as provided in Subsection (3)(b)(ii), in addition to Subsection (3)(a)(i), if
1592     an [Education Fund] Income Tax Fund revenue surplus exists and if, within the last 10 years,
1593     the Legislature has appropriated any money from the [Education Fund] Income Tax Fund
1594     Budget Reserve Account that has not been replaced by appropriation or as provided in this
1595     Subsection (3)(b), the Division of Finance shall transfer up to 25% more of the [Education
1596     Fund] Income Tax Fund revenue surplus to the [Education Fund] Income Tax Fund Budget
1597     Reserve Account to replace the amounts appropriated, until direct legislative appropriations, if

1598     any, and transfers from the [Education Fund] Income Tax Fund revenue surplus under this
1599     Subsection (3)(b) have replaced the appropriations from the account.
1600          (ii) If the transfer under Subsection (3)(b)(i) would cause the balance in the account to
1601     exceed 11% of [Education Fund] Income Tax Fund appropriations for the fiscal year in which
1602     the [Education Fund] Income Tax Fund revenue surplus occurred, the Division of Finance shall
1603     transfer only those funds necessary to ensure that the balance in the account equals 11% of
1604     [Education Fund] Income Tax Fund appropriations for the fiscal year in which the revenue
1605     surplus occurred.
1606          (iii) The Division of Finance shall calculate the amount to be transferred under this
1607     Subsection (3)(b):
1608          (A) before transferring from the [Education Fund] Income Tax Fund revenue surplus
1609     any other year-end contingency appropriations, year-end set-asides, or other year-end transfers
1610     required by law; and
1611          (B) excluding any direct legislative appropriation made to the [Education Fund]
1612     Income Tax Fund Budget Reserve Account for the fiscal year.
1613          (c) For appropriations made by the Legislature to the [Education Fund] Income Tax
1614     Fund Budget Reserve Account, the Division of Finance shall treat those appropriations, unless
1615     specified otherwise in the appropriation, as replacement funds for appropriations made from
1616     the account if funds were appropriated from the account within the past 10 years and have not
1617     yet been replaced.
1618          (4) Notwithstanding Subsection (3), if, at the end of a fiscal year, the Division of
1619     Finance determines that an operating deficit exists, the Division of Finance may reduce the
1620     transfer to the [Education Fund] Income Tax Fund Budget Reserve Account by the amount
1621     necessary to eliminate the operating deficit.
1622          (5) The Legislature may appropriate money from the [Education Fund] Income Tax
1623     Fund Budget Reserve Account only to resolve an [Education Fund] Income Tax Fund budget
1624     deficit.
1625          (6) Interest generated from investments of money in the [Education Fund] Income Tax

1626     Fund Budget Reserve Account shall be deposited into the [Education Fund] Income Tax Fund.
1627          Section 33. Section 63J-3-103 is amended to read:
1628          63J-3-103. Definitions.
1629          As used in this chapter:
1630          (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
1631     from unrestricted General Fund and [Education Fund] Income Tax Fund sources.
1632          (b) "Appropriations" includes appropriations that are contingent upon available
1633     surpluses in the General Fund and [Education Fund] Income Tax Fund.
1634          (c) "Appropriations" does not mean:
1635          (i) public education expenditures;
1636          (ii) Utah Education and Telehealth Network expenditures in support of public
1637     education;
1638          (iii) Utah Board of Higher Education expenditures in support of public education;
1639          (iv) State Tax Commission expenditures related to collection of income taxes in
1640     support of public education;
1641          (v) debt service expenditures;
1642          (vi) emergency expenditures;
1643          (vii) expenditures from all other fund or subfund sources;
1644          (viii) transfers or appropriations from the [Education Fund] Income Tax Fund to the
1645     Uniform School Fund;
1646          (ix) transfers into, or appropriations made to, the General Fund Budget Reserve
1647     Account established in Section 63J-1-312;
1648          (x) transfers into, or appropriations made to, the [Education] Income Tax Fund Budget
1649     Reserve Account established in Section 63J-1-313;
1650          (xi) transfers in accordance with Section 63J-1-314 into, or appropriations made to the
1651     Wildland Fire Suppression Fund created in Section 65A-8-204 or the State Disaster Recovery
1652     Restricted Account created in Section 53-2a-603;
1653          (xii) money appropriated to fund the total one-time project costs for the construction of

1654     capital development projects as defined in Section 63A-5b-401;
1655          (xiii) transfers or deposits into or appropriations made to the Centennial Highway Fund
1656     created by Section 72-2-118;
1657          (xiv) transfers or deposits into or appropriations made to the Transportation Investment
1658     Fund of 2005 created by Section 72-2-124;
1659          (xv) transfers or deposits into or appropriations made to:
1660          (A) the Department of Transportation from any source; or
1661          (B) any transportation-related account or fund from any source; or
1662          (xvi) supplemental appropriations from the General Fund to the Division of Forestry,
1663     Fire, and State Lands to provide money for wildland fire control expenses incurred during the
1664     current or previous fire years.
1665          (2) "Base year real per capita appropriations" means the result obtained for the state by
1666     dividing the fiscal year 1985 actual appropriations of the state less debt money by:
1667          (a) the state's July 1, 1983 population; and
1668          (b) the fiscal year 1983 inflation index divided by 100.
1669          (3) "Calendar year" means the time period beginning on January 1 of any given year
1670     and ending on December 31 of the same year.
1671          (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
1672     expenditures and includes the settlement under Laws of Utah 1988, Fourth Special Session,
1673     Chapter 4.
1674          (5) "Fiscal year" means the time period beginning on July 1 of any given year and
1675     ending on June 30 of the subsequent year.
1676          (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
1677     capital and operations appropriations from General Fund and non-Uniform School Fund
1678     income tax revenue sources, less debt money.
1679          (7) "Inflation index" means the change in the general price level of goods and services
1680     as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
1681     Analysis, U.S. Department of Commerce calculated as provided in Section 63J-3-202.

1682          (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
1683     be, or could have been, spent in any given year under the limitations of this chapter.
1684          (b) "Maximum allowable appropriations limit" does not mean actual appropriations
1685     spent or actual expenditures.
1686          (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
1687     fiscal years previous to the fiscal year for which the maximum allowable inflation and
1688     population appropriations limit is being computed under this chapter.
1689          (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
1690     years previous to the fiscal year for which the maximum allowable inflation and population
1691     appropriations limit is being computed under this chapter.
1692          (11) "Population" means the number of residents of the state as of July 1 of each year
1693     as calculated by the Governor's Office of Planning and Budget according to the procedures and
1694     requirements of Section 63J-3-202.
1695          (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
1696     other monetary exaction and interest connected with it that are recorded as unrestricted revenue
1697     of the General Fund and from non-Uniform School Fund income tax revenues, except as
1698     specifically exempted by this chapter.
1699          (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
1700     whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
1701     "indebtedness" within the meaning of any provision of the constitution or laws of this state.
1702          Section 34. Section 63J-7-102 is amended to read:
1703          63J-7-102. Scope and applicability of chapter.
1704          (1) Except as provided in Subsection (2), and except as otherwise provided by a statute
1705     superseding provisions of this chapter by explicit reference to this chapter, the provisions of
1706     this chapter apply to each agency and govern each grant received on or after May 5, 2008.
1707          (2) This chapter does not govern:
1708          (a) a grant deposited into a General Fund restricted account;
1709          (b) a grant deposited into a Trust and Agency Fund as defined in Section 51-5-4;

1710          (c) a grant deposited into an Enterprise Fund as defined in Section 51-5-4;
1711          (d) a grant made to the state without a restriction or other designated purpose that is
1712     deposited into the General Fund as free revenue;
1713          (e) a grant made to the state that is restricted only to "education" and that is deposited
1714     into the [Education Fund] Income Tax Fund or Uniform School Fund as free revenue;
1715          (f) in-kind donations;
1716          (g) a tax, fees, penalty, fine, surcharge, money judgment, or other money due the state
1717     when required by state law or application of state law;
1718          (h) a contribution made under Title 59, Chapter 10, Part 13, Individual Income Tax
1719     Contribution Act;
1720          (i) a grant received by an agency from another agency or political subdivision;
1721          (j) a grant to the Utah Dairy Commission created in Section 4-22-103;
1722          (k) a grant to the Heber Valley Historic Railroad Authority created in Section
1723     63H-4-102;
1724          (l) a grant to the Utah State Railroad Museum Authority created in Section 63H-5-102;
1725          (m) a grant to the Utah Housing Corporation created in Section 63H-8-201;
1726          (n) a grant to the Utah State Fair Corporation created in Section 63H-6-103;
1727          (o) a grant to the Utah State Retirement Office created in Section 49-11-201;
1728          (p) a grant to the School and Institutional Trust Lands Administration created in
1729     Section 53C-1-201;
1730          (q) a grant to the Utah Communications Authority created in Section 63H-7a-201;
1731          (r) a grant to the Medical Education Program created in Section 53B-24-202;
1732          (s) a grant to the Utah Capital Investment Corporation created in Section 63N-6-301;
1733          (t) a grant to the Utah Charter School Finance Authority created in Section 53G-5-602;
1734          (u) a grant to the State Building Ownership Authority created in Section 63B-1-304; or
1735          (v) a grant to the Military Installation Development Authority created in Section
1736     63H-1-201.
1737          (3) An agency need not seek legislative review or approval of grants under Part 2,

1738     Grant Approval Requirements, if:
1739          (a) the governor has declared a state of emergency; and
1740          (b) the grant is donated to the agency to assist victims of the state of emergency under
1741     Subsection 53-2a-204(1).
1742          Section 35. Effective date.
1743          (1) Except as provided in Subsection (2), if approved by two-thirds of all the members
1744     elected to each house, this bill takes effect upon approval by the governor, or the day following
1745     the constitutional time limit of Utah Constitution, Article VII, Section 8, without the governor's
1746     signature, or in the case of a veto, the date of veto override.
1747          (2) The amendments to Section 53F-9-201.1 (Effective 07/01/22) take effect on July 1,
1748     2022.