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7 LONG TITLE
8 General Description:
9 This bill creates the Utah Permanent Fund.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ creates the Utah Permanent Fund; and
14 ▸ provides for the investment and distribution of the Utah Permanent Fund.
15 Money Appropriated in this Bill:
16 None
17 Other Special Clauses:
18 None
19 Utah Code Sections Affected:
20 ENACTS:
21 51-12-101, Utah Code Annotated 1953
22 51-12-102, Utah Code Annotated 1953
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24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 51-12-101 is enacted to read:
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27 51-12-101. Definitions.
28 As used in this chapter:
29 (1) "Division" means the Division of Finance created in Section 63A-3-101.
30 (2) (a) "Principal" means money deposited into the Utah Permanent Fund in
31 accordance with Section 51-12-102.
32 (b) "Principal" does not include interest earned on any money in the Utah Permanent
33 Fund.
34 (3) "Revenue growth" means the difference between, as determined by the Office of
35 the Legislative Fiscal Analyst:
36 (a) the estimated amount of ongoing General Fund and Income Tax Fund revenue
37 available for the Legislature to appropriate for the next fiscal year; and
38 (b) the amount of ongoing appropriations from the General Fund and the Income Tax
39 Fund in the current fiscal year.
40 Section 2. Section 51-12-102 is enacted to read:
41 51-12-102. Utah Permanent Fund -- Creation -- Investment -- Distribution.
42 (1) There is created a Utah Permanent Fund which consists of:
43 (a) revenue growth appropriated in accordance with the formula described in
44 Subsection (2);
45 (b) subject to Subsection (5), interest earned on any money in the Utah Permanent
46 Fund; and
47 (c) money appropriated by the Legislature.
48 (2) Beginning on July 1, 2025, the Legislature shall annually appropriate revenue
49 growth for the next fiscal year into the Utah Permanent Fund as follows:
50 (a) 1% of revenue growth in year one;
51 (b) in each of the following eight fiscal years, a percentage equal to the percentage
52 deposited the immediately preceding fiscal year, plus an additional 1% of revenue growth; and
53 (c) 10% of revenue growth in year 10 and each fiscal year thereafter.
54 (3) The division shall track the amount of revenue growth appropriated to the Utah
55 Permanent Fund from the General Fund and Income Tax Fund, respectively.
56 (4) If there is insufficient revenue growth to comply with Subsection (2), the
57 Legislature shall appropriate to the Utah Permanent Fund any revenue growth that remains
58 available after any constitutional and statutory deposit requirements created before July 1,
59 2025, are fulfilled.
60 (5) The state treasurer shall:
61 (a) (i) hold all money described in Subsection (1); and
62 (ii) in the same manner provided for in Title 51, Chapter 7b, Part 2, State Treasurer
63 Investment Duties, invest the money for the benefit of the people of the state in perpetuity; and
64 (b) distribute annually to the division the earnings from the investment of the Utah
65 Permanent Fund as follows:
66 (i) before July 1, 2040, 100% into the Utah Permanent Fund; and
67 (ii) after July 1, 2040:
68 (A) 50% into the General Fund or Income Tax Fund; and
69 (B) 50% into the Utah Permanent Fund.
70 (6) The Legislature may appropriate all or a portion of the Utah Permanent Fund
71 principal only by the affirmative vote of two-thirds of all the members elected to each chamber
72 of the Legislature.
73 Section 3. Effective date.
74 This bill takes effect on May 1, 2024.