SB 324

Enrolled Copy  S.B. 324
1Outcome-based Investment Grant Pilot Framework
                                        2026 GENERAL SESSION
                                             STATE OF UTAH
                                 Chief Sponsor: Calvin R. Musselman
                                    House Sponsor: Karen M. Peterson
2
3  LONG TITLE
4  General Description:
5      This bill establishes the Outcome-based Investment Grant Pilot Framework to provide a
6  process for administering certain grant funding for projects using measurable outcomes.
7  Highlighted Provisions:
8      This bill:
9      ▸ defines terms;
10      ▸ establishes a pilot framework for a grant administering agency to award grant funding for
11  projects using measurable outcomes;
12      ▸ requires the Office of the Legislative Fiscal Analyst and the Governor's Office of
13  Planning and Budget to establish evaluation standards and requirements;
14      ▸ requires grant applicants to submit a pre-analysis plan identifying expected outcomes and
15  metrics;
16      ▸ requires the use of independent evaluators to measure project outcomes;
17      ▸ authorizes review of evaluation findings by the Office of the Legislative Auditor General;
18      ▸ requires certain reporting from the administering agency to a relevant appropriations
19  subcommittee;
20      ▸ includes appropriations for use under the Outcome-based Investment Grant Pilot
21  Framework; and
22      ▸ establishes a sunset date for the pilot framework.
23  Money Appropriated in this Bill:
24      This bill appropriates $9,000,000 in operating and capital budgets for fiscal year 2027,
25  including:
26      ▸      $4,500,000 from Income Tax Fund; and
27      ▸      $4,500,000 from various sources as detailed in this bill.
S.B. 324  Enrolled Copy
28   Other Special Clauses:
29This bill provides a special effective date.
30   Utah Code Sections Affected:
31   AMENDS:
3263I-1-263, as last amended by Laws of Utah 2025, Chapters 391, 512
33   ENACTS:
3463G-6b-402, Utah Code Annotated 1953
35
36   Be it enacted by the Legislature of the state of Utah:
37Section 1. Section 63G-6b-402 is enacted to read:
3863G-6b-402 . Outcome-based Investment Grant Pilot Framework.
39   (1) As used in this section:
40(a) "Independent evaluator" means an individual or entity that:
41(i) is not involved in implementing a project receiving grant funding under the pilot
42framework; and
43(ii) meets the evaluation standards that the Office of the Legislative Auditor General
44establishes under this section.
45(b) "Evaluation framework" means the evaluation framework the Office of the
46Legislative Auditor General establishes in accordance with Subsection (5).
47(c) "Pilot framework" means the Outcome-based Investment Grant Pilot Framework that
48this section establishes.
49(d) "Pre-analysis plan" means a written plan that:
50(i) a grant applicant submits during the grant application process and before
51beginning project implementation;
52(ii) identifies the specific outcomes the applicant intends the proposed project to
53achieve;
54(iii) specifies the metrics for measuring each intended outcome of the proposed
55project;
56(iv) describes the evaluation methodology that will apply to the proposed project,
57including any comparison to control data or counterfactual approach; and
58(v) complies with the standards that the Office of the Legislative Auditor General
59establishes under this section.
60   (2)(a) This section creates a pilot framework governing the administration of certain
61competitive grant programs using measurable outcomes known as the
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Enrolled Copy  S.B. 324
62      Outcome-based Investment Grant Pilot Framework.
63      (b) This section only applies to a grant that receives funding from an appropriation in
64which the Legislature expressly declares the intent for the administering agency to
65administer the grant under the pilot framework.
66  (3) Upon an expression of legislative intent for an agency to administer a grant under the
67      pilot framework in a legislative appropriation, the administering agency shall:
68      (a) administer a grant program in accordance with the pilot framework; and
69      (b) only award grants under the pilot framework for projects that comply with the
70evaluation framework described in Subsection (5).
71  (4)(a) An applicant for a grant under the pilot framework shall submit an application:
72(i) in a form that the administering agency prescribes; and
73(ii) that includes a pre-analysis plan that:
74(A) identifies the intended outcomes of the proposed project; and
75(B) provides a significant measurement and evaluation framework to demonstrate
76the effect of the project on the intended outcomes.
77      (b) The administering agency may not award a grant unless the administering agency
78determines that the applicants pre-analysis plan satisfies the evaluation framework
79requirements described in Subsection (5).
80  (5) The Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and
81      Budget shall establish:
82      (a) an evaluation framework applicable to the pilot framework that includes standards
83governing:
84(i) acceptable outcome measures;
85(ii) required elements of a pre-analysis plan;
86(iii) acceptable evaluation methodologies; and
87(iv) minimum data collection and reporting requirements; and
88      (b) standards governing independent evaluators, including:
89(i) independence and conflict-of-interest requirements;
90(ii) minimum qualifications and expertise;
91(iii) acceptable evaluation designs and levels of rigor; and
92(iv) reporting and transparency requirements.
93  (6)(a) A recipient of a grant under this section shall participate in an independent
94      evaluation of the funded project.
95      (b) An independent evaluator shall:
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96(i) measure and assess the extent to which the project caused the outcomes identified
97in the pre-analysis plan;
98(ii) compare actual outcomes to the projected outcomes in the pre-analysis plan using
99the metrics described in the pre-analysis plan; and
100(iii) provide a written report of the independent evaluation to the administering
101agency.
102(c) Unless the Legislature indicates otherwise in a specific appropriation for a grant
103under the framework, the administering agency may use up to 5% of funds the
104Legislature appropriates to procure the independent evaluation described in this
105Subsection (6).
106(d) The Office of the Legislative Auditor General may:
107(i) review the findings of an independent evaluation described in this Subsection (6);
108and
109(ii) assess the methodological rigor, validity, and reliability of the evaluation.
110   (7) The administering agency shall annually report to the agency's relevant legislative
111appropriations subcommittee regarding the administration of the grant under the pilot
112framework, including:
113(a) a summary of the number and type of grants the administering agency awards under
114the pilot framework;
115(b) the progress of grant projects;
116(c) available outcome data;
117(d) impact data; and
118(e) the results of any independent evaluations of a grant project.
119   (8) Nothing in this section requires the administering agency to terminate funding solely
120based on evaluation results.
121Section 2. Section 63I-1-263 is amended to read:
12263I-1-263 . Repeal dates: Titles 63A to 63O.
123   (1) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
1242028.
125   (2) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
126December 31, 2026.
127   (3) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
128   (4) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
129   (5) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
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130  (6) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July
131      1, 2028.
132  (7) Section 63G-6a-805, Purchase from community rehabilitation programs, is repealed
133      July 1, 2026.
134  (8) Section 63G-6b-402, Outcome-based Investment Grant Pilot Framework, is repealed
135      July 1, 2031.
136  [(8)] (9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
137      2028.
138  [(9)] (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July
139      1, 2029.
140  [(10)] (11) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
141      Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
142  [(11)] (12) Subsection 63J-1-602.2(26), regarding the Utah Seismic Safety Commission, is
143      repealed January 1, 2025.
144  [(12)] (13) Section 63L-11-204, Canyon resource management plan, is repealed July 1, 2027.
145  [(13)] (14) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee,
146      is repealed July 1, 2027.
147  [(14)] (15) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
148      repealed July 1, 2027.
149  [(15)] (16) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses,
150      is repealed July 1, 2029.
151  [(16)] (17) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
152  [(17)] (18) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
153  [(18)] (19) Subsection 63N-2-511(1)(b), regarding the Board of Tourism Development, is
154      repealed July 1, 2030.
155  [(19)] (20) Section 63N-2-512, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
156  [(20)] (21) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
157      repealed July 1, 2027.
158  [(21)] (22) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
159      repealed July 1, 2028.
160  [(22)] (23) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
161      July 1, 2028.
162  [(23)] (24) Section 63N-4-804, Rural Opportunity Advisory Committee, is repealed July 1,
163      2027.
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164   [(24)] (25) Subsection 63N-4-805(5)(b), regarding the Rural Employment Expansion
165Program, is repealed July 1, 2028.
166   [(25)] (26) Subsection 63N-7-101(1), regarding the Board of Tourism Development, is
167repealed July 1, 2030.
168   [(26)] (27) Subsection 63N-7-102(3)(c), regarding a requirement for the Utah Office of
169Tourism to receive approval from the Board of Tourism Development, is repealed July
1701, 2030.
171   [(27)] (28) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1,
1722030.
173Section 3. FY 2027 Appropriations.
174The following sums of money are appropriated for the fiscal year beginning July 1,
175   2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
176   fiscal year 2027.
177Subsection 3(a). Operating and Capital Budgets
178Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
179   Legislature appropriates the following sums of money from the funds or accounts indicated for
180   the use and support of the government of the state of Utah.
181   ITEM 1        To Utah Board of Higher Education - Administration
182From Income Tax Fund, One-time  4,500,000
183Schedule of Programs:
184Pass Through Funding  4,500,000
185The Legislature intends that the Utah Board of
186Higher Education:
187(1) use the funds appropriated in this item to
188administer, under the Outcome-based Investment Grant
189Pilot Framework described in Section 63G-6b-402, a
190grant designed to improve upward mobility through the
191use of a digital data inventory to measure improvement
192in an individual's educational or economic outcomes,
193including:
194(a) educational attainment or credential
195completion;
196(b) persistence, transfer, or completion within
197postsecondary education
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198(c) employment, job placement, or labor market
199attachment;
200(d) earnings, wage growth, or income stability; or
201(e) other indicators of economic opportunity or
202advancement; and
203(2) provide the reports described in Subsection
20463G-6b-402 to the Higher Education Appropriations
205Subcommittee.
206  ITEM 2   To State Board of Education - Contracted Initiatives and Grants
207From Public Education Economic Stabilization
208Restricted Account, One-time  4,500,000
209Schedule of Programs:
210Contracts and Grants  4,500,000
211The Legislature intends that the State Board of
212Education:
213(1)use the funds appropriated in this item to
214administer a grant under the Outcome-based Investment
215Grant Pilot Framework described in Section 63G-6b-402
216for up to two local education agencies to create a
217comprehensive school improvement pilot program for
218one or more chronically under-performing schools that:
219(a) uses evidence-based practices, modeled on
220the practices the Houston Independent School District
221implemented in underperforming campuses beginning in
222June 1, 2023, to:
223(i) hold teachers and principals to clear and
224measurable performance expectations tied to
225improvement in student outcomes; and
226(ii) recruit and retain high-quality educators and
227school leaders through enhanced compensation for
228teachers and principals who meet the performance
229expectations, intensive coaching, extended planning time,
230centralized instructional supports, targeted professional
231development aligned to school-specific needs;
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232(b) may provide funding to:
233(i) create clearly defined performance standards,
234frequent assessment of student learning, and transparent
235evaluation systems tied to demonstrated instructional
236effectiveness and student outcomes;
237(ii) support rigorous accountability structures for
238educators and students; and
239(iii) support program design, staffing,
240compensation adjustments instructional coaching,
241curriculum alignment, extended planning time, and
242evaluation; and
243(c) does not support general operations or
244otherwise supplant or displace existing funding; and
245(2) provide the reports described in Subsection
24663G-6b-402 to the Public Education Appropriations
247Subcommittee.
248Section 4. Effective Date.
249   This bill takes effect on July 1, 2026.
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