HB 249

Enrolled Copy  H.B. 249
1Federal Funds Modifications
  2026 GENERAL SESSION
  STATE OF UTAH
  Chief Sponsor: Calvin Roberts
  Senate Sponsor: John D. Johnson
2
3  LONG TITLE
4  General Description:
5      This bill modifies provisions related to federal funds.
6  Highlighted Provisions:
7      This bill:
8      ▸ directs the legislative fiscal analyst to submit to the Federalism Commission
9  (commission) the portions of each budget stress test that relate to federal funds;
10      ▸ requires the commission to review and, in the commission's discretion, make legislative
11  recommendations regarding the federal funds portions of each budget stress test;
12      ▸ requires the Utah State University Jon M. Huntsman School of Business to:
13●   create and maintain a publicly available dashboard that visualizes state dependency on
14  federal funds; and
15●   model economic scenarios to inform federal funds contingency planning; and
16      ▸ makes technical and conforming changes.
17  Money Appropriated in this Bill:
18      This bill appropriates $300,000 in operating and capital budgets for fiscal year 2027, all of
19  which is from the Income Tax Fund.
20  Other Special Clauses:
21      None
22  Utah Code Sections Affected:
23  AMENDS:
24      36-12-13 (Effective 05/06/26), as last amended by Laws of Utah 2024, Chapter 439
25      63C-4a-303 (Effective 05/06/26) (Repealed 07/01/28), as last amended by Laws of Utah
26      2025, First Special Session, Chapter 9
27  ENACTS:
H.B. 249  Enrolled Copy
2853H-4-317 (Effective 05/06/26), Utah Code Annotated 1953
29
30   Be it enacted by the Legislature of the state of Utah:
31Section 1. Section 36-12-13 is amended to read:
3236-12-13 (Effective 05/06/26). Office of the Legislative Fiscal Analyst established
33   -- Powers, functions, and duties -- Qualifications.
34   (1) There is established an Office of the Legislative Fiscal Analyst as a permanent staff
35office for the Legislature.
36   (2) The powers, functions, and duties of the Office of the Legislative Fiscal Analyst under
37the supervision of the fiscal analyst are:
38(a)(i) to estimate general revenue collections, including comparisons of:
39(A) current estimates for each major tax type to long-term trends for that tax type;
40(B) current estimates for federal fund receipts to long-term federal fund trends; and
41(C) current estimates for tax collections and federal fund receipts to long-term
42trends deflated for the inflationary effects of debt monetization; and
43(ii) to report the analysis required under Subsection (2)(a)(i) to the Legislature's
44Executive Appropriations Committee before each annual general session of the
45Legislature;
46(b) to analyze in detail the state budget before the convening of each legislative session
47and make recommendations to the Legislature on each item or program appearing in
48the budget, including:
49(i) funding for and performance of programs, acquisitions, and services currently
50undertaken by state government to determine whether each department, agency,
51institution, or program should:
52(A) continue at its current level of expenditure;
53(B) continue at a different level of expenditure; or
54(C) be terminated; and
55(ii) increases or decreases to spending authority and other resource allocations for the
56current and future fiscal years;
57(c) to prepare on all proposed bills fiscal estimates that reflect:
58(i) potential state government revenue impacts;
59(ii) anticipated state government expenditure changes;
60(iii) anticipated expenditure changes for county, municipal, special district, or special
61service district governments;
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62(iv) anticipated direct expenditure by Utah residents and businesses, including the
63unit cost, number of units, and total cost to all impacted residents and businesses;
64and
65(v) if the proposed bill changes retirement benefits under a system or plan governed
66by Title 49, Utah State Retirement and Insurance Benefit Act, the anticipated
67effect on:
68(A) each affected system's or plan's unfunded actuarial accrued liability and
69actuarial funded ratio, based on current employer contributions;
70(B) employer contributions and member contributions;
71(C) a retiree's retirement allowance;
72(D) the total cost to active members and retirees; and
73(E) the total cost to employers for all active members and retirees;
74      (d) to indicate whether each proposed bill will impact the regulatory burden for Utah
75residents or businesses, and if so:
76(i) whether the impact increases or decreases the regulatory burden; and
77(ii) whether the change in burden is high, medium, or low;
78      (e) beginning in 2017 and repeating every three years after 2017, to prepare the
79following cycle of analyses of long-term fiscal sustainability:
80(i) in year one, the joint revenue volatility report required under Section 63J-1-205;
81(ii) in year two, a long-term budget for programs appropriated from major funds and
82tax types; and
83(iii) in year three, a budget stress test that, in consultation with the Governor's Office
84of Planning and Budget:
85(A) compares estimated future revenue to and expenditure from major funds and
86tax types under various potential economic conditions;
87(B) analyzes the economic and policy risks associated with funding for the
88Medicaid program and expansions of the Medicaid program;
89(C) measures value at risk; and
90(D) recommends budgetary actions to manage risk;
91      (f) to report instances in which the administration may be failing to carry out the
92expressed intent of the Legislature;
93      (g) to propose and analyze statutory changes for more effective operational economies
94or more effective administration;
95      (h) to prepare, before each annual general session of the Legislature, a summary
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96showing the current status of the following as compared to the past nine fiscal years:
97(i) debt;
98(ii) long-term liabilities;
99(iii) contingent liabilities;
100(iv) General Fund borrowing;
101(v) reserves;
102(vi) fund and nonlapsing balances; and
103(vii) cash funded capital investments;
104(i) to make recommendations for addressing the items described in Subsection (2)(h) in
105the upcoming annual general session of the Legislature;
106(j) to prepare, after each session of the Legislature, a summary showing the effect of the
107final legislative program on the financial condition of the state;
108(k) to conduct organizational and management improvement studies in accordance with
109Title 63J, Chapter 1, Part 9, Government Performance Reporting and Efficiency
110Process, and legislative rule;
111(l) to prepare and deliver upon request of any interim committee or the Legislative
112Management Committee, reports on the finances of the state and on anticipated or
113proposed requests for appropriations;
114(m) to recommend areas for research studies by the executive department or the interim
115committees;
116(n) to appoint and develop a professional staff within budget limitations;
117(o) to prepare and submit the annual budget request for the office;
118(p) to develop a taxpayer receipt:
119(i) available to taxpayers through a website; and
120(ii) that allows a taxpayer to view on the website an estimate of how the taxpayer's
121tax dollars are expended for government purposes; and
122(q) to publish or provide other information on taxation and government expenditures that
123may be accessed by the public.
124   (3)(a) Except as provided in Subsection (3)(b), the legislative fiscal analyst shall submit
125to the Executive Appropriations Committee the results of the budget stress test
126described in Subsection (2)(e)(iii).
127(b) The legislative fiscal analyst shall submit to the Federalism Commission the portions
128of the results of the budget stress test that relate to federal funds.
129   [(3)] (4) The legislative fiscal analyst shall have a master's degree in public administration,
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130      political science, economics, accounting, or the equivalent in academic or practical
131      experience.
132  [(4)] (5) In carrying out the duties provided for in this section, the legislative fiscal analyst
133      may obtain access to all records, documents, and reports necessary to the scope of the
134      legislative fiscal analyst's duties according to the procedures contained in Title 36,
135      Chapter 14, Legislative Subpoena Powers.
136  [(5)] (6) The Office of the Legislative Fiscal Analyst shall provide any information the State
137      Board of Education reports in accordance with Subsection 53E-3-507(7) to:
138      (a) the chief sponsor of the proposed bill; and
139      (b) upon request, any legislator.
140Section 2. Section 53H-4-317 is enacted to read:
14153H-4-317 (Effective 05/06/26). Federal funds contingency planning dashboard.
142  (1) As used in this section:
143      (a) "Center" means the Analytics Solutions Center at the Utah State University Jon M.
144Huntsman School of Business.
145      (b) "Federalism Commission" means the Federalism Commission created in Section
14663C-4a-302.
147  (2) In consultation with the Federalism Commission and subject to legislative
148      appropriation, the center shall:
149      (a) create and maintain a digital dashboard that visualizes the risk of federal funds
150reductions and the state's dependency on federal funds;
151      (b) ensure that the dashboard is publicly available, user-friendly, and dynamic;
152      (c) identify, curate, clean, and securely warehouse funding data relevant to creating and
153maintaining the dashboard;
154      (d) continuously monitor and update the dashboard's data and functionality to ensure
155accuracy and compliance with this section;
156      (e) model economic scenarios to help the state plan for potential reductions in federal
157funds; and
158      (f) upon request, report to the Federalism Commission regarding the duties described in
159this section.
160Section 3. Section 63C-4a-303 is amended to read:
16163C-4a-303 (Effective 05/06/26) (Repealed 07/01/28). Federalism Commission
162  duties -- Evaluation of federal law -- Curriculum on federalism -- Environment
163  discussions -- Oversight of Center for Constitutional Studies in relation to center's
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164   federalism duties -- Review of federal funds portion of budget stress test.
165   (1)(a) In accordance with Section 63C-4a-304, the commission may evaluate a federal
166law:
167(i) as agreed by a majority of the commission;
168(ii) submitted to the commission by a council member; or
169(iii) reported to the commission in accordance with Subsection (1)(b).
170(b)(i) To assist the commission in the evaluation of federal law as required in this
171section and Section 63C-4a-304, the commission may contract with a third party
172that is a Utah institution of higher education to monitor federal law for possible
173implications on the principles of federalism.
174(ii) A third party contracted to monitor federal law as described in Subsection (1)(b)(i)
175shall:
176(A) monitor federal law for possible implications on the principles of federalism
177and state sovereignty; and
178(B) report to the commission any law or action by the federal government that
179may implicate the principles of federalism or state sovereignty.
180(c)(i) As used in this Subsection (1)(c), "interim committee" means the same as that
181term is defined in Section 36-12-1.
182(ii) The commission shall provide an annual report to each interim committee
183concerning any law or action by the federal government that implicates the
184principles of federalism or state sovereignty.
185(iii) The commission may notify the appropriate interim committee of any law or
186action by the federal government that implicates the principles of federalism or
187state sovereignty.
188   (2) The commission may request information regarding a federal law under evaluation from
189a United States senator or representative elected from the state.
190   (3) If the commission finds that a federal law is not authorized by the United States
191Constitution or violates the principle of federalism as described in Subsection
19263C-4a-304(2), a commission cochair or the commission may:
193(a) request from a United States senator or representative elected from the state:
194(i) information about the federal law; or
195(ii) assistance in communicating with a federal governmental entity regarding the
196federal law;
197(b)(i) give written notice of an evaluation made under Subsection (1) to the federal
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198governmental entity responsible for adopting or administering the federal law; and
199(ii) request a response by a specific date to the evaluation from the federal
200governmental entity;
201      (c) request a meeting, conducted in person or by electronic means, with the federal
202governmental entity, a representative from another state, or a United States Senator
203or Representative elected from the state to discuss the evaluation of federal law and
204any possible remedy; or
205      (d) give written notice of an evaluation and the conclusions of the commission to any
206other relevant entity.
207  (4) The commission may recommend to the governor that the governor call a special
208      session of the Legislature to give the Legislature an opportunity to respond to the
209      commission's evaluation of a federal law.
210  (5) A commission cochair may coordinate the evaluation of and response to federal law
211      with another state as provided in Section 63C-4a-305.
212  (6) The commission shall keep a current list on the Legislature's website of:
213      (a) a federal law that the commission evaluates under Subsection (1);
214      (b) an action taken by a cochair of the commission or the commission under Subsection
215(3);
216      (c) any coordination undertaken with another state under Section 63C-4a-305; and
217      (d) any response received from a federal government entity that was requested under
218Subsection (3).
219  (7)(a) The commission shall develop curriculum for a seminar on the principles of
220      federalism.
221      (b) The curriculum under Subsection (7)(a) shall be available to the general public and
222include:
223(i) fundamental principles of federalism;
224(ii) the sovereignty, supremacy, and jurisdiction of the individual states, including
225their police powers;
226(iii) the history and practical implementation of the Tenth Amendment to the United
227States Constitution;
228(iv) the authority and limits on the authority of the federal government as found in the
229United States Constitution;
230(v) the relationship between the state and federal governments;
231(vi) methods of evaluating a federal law in the context of the principles of federalism;
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232(vii) how and when challenges should be made to a federal law or regulation on the
233basis of federalism;
234(viii) the separate and independent powers of the state that serve as a check on the
235federal government;
236(ix) first amendment rights and freedoms contained therein; and
237(x) any other issues relating to federalism the commission considers necessary.
238   (8) The commission may apply for and receive grants, and receive private donations to
239assist in funding the creation, enhancement, and dissemination of the curriculum.
240   (9) The commission shall submit a report on or before November 30 of each year to the
241Government Operations Interim Committee and the Natural Resources, Agriculture, and
242Environment Interim Committee that:
243(a) describes any action taken by the commission under Section [63C-4a-303]
24463C-4a-304; and
245(b) includes any proposed legislation the commission recommends.
246   (10) The commission shall comply with Section 19-1-110 in discussions with the
247Department of Environmental Quality on issues related to the environment or the
248functioning of the Department of Environmental Quality.
249   (11) The commission shall:
250(a) coordinate with and make recommendations to the center concerning the center's
251federalism-related duties under Section 53H-4-703, including:
252(i) the development of the federalism education and training program under
253Subsection 53H-4-703(1); and
254(ii) the scope and objectives of:
255(A) the annual federalism conference organized under Subsection 53H-4-703(2);
256(B) the study conducted under Subsection 53H-4-703(3); and
257(C) the center's coordination efforts under Subsection 53H-4-703(4);
258(b) coordinate with and make recommendations to the institute regarding the institute's
259federalism-related duties under Section 53H-4-704; and
260(c) report annually to the Legislative Management Committee regarding:
261(i) the center's progress in fulfilling the requirements of Section 53H-4-703; and
262(ii) the institute's progress in fulfilling the requirements of Section 53H-4-704.
263   (12) Each executive branch agency shall, at the request of the commission, designate a
264contact person to coordinate with the commission regarding the federalism education
265and training program developed under Section 53H-4-703 for purposes of:
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266      (a) determining the extent of federal jurisdiction in the agency's resource sphere;
267      (b) determining whether federal action exceeds the federal government's jurisdictional
268authority;
269      (c) assessing what actions the agency may take in the event that federal action exceeds
270the federal government's jurisdictional authority; and
271      (d) assessing how actions described in Subsection (12)(c) may better enable the agency
272to use the agency's best judgment in serving the people of Utah.
273  (13) Upon receipt of the budget stress test results described in Subsection 36-12-13(3)(b),
274      the commission shall review the results and make any related legislative
275      recommendations to the Executive Appropriations Committee.
276Section 4. FY 2027 Appropriations.
277The following sums of money are appropriated for the fiscal year beginning July 1,
278  2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
279  fiscal year 2027.
280Subsection 4(a). Operating and Capital Budgets
281Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
282  Legislature appropriates the following sums of money from the funds or accounts indicated for
283  the use and support of the government of the state of Utah.
284  ITEM 1      To Utah State University - Education and General
285From Income Tax Fund  150,000
286From Income Tax Fund, One-time  150,000
287Schedule of Programs:
288Public Service  300,000
289The Legislature intends that the Analytics
290Solutions Center at the Utah State University Jon M.
291Huntsman School of Business use the appropriations
292provided under this item to fulfill the requirements of
293Utah Code Section 53H-3-317.
294Section 5. Effective Date.
295  This bill takes effect on May 6, 2026.
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