Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 464 (2025GS)

Sponsor

Rep. Elison, Joseph

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• establishes the State Sovereignty Fund;
• provides for the funding, investment, and distribution of the State Sovereignty Fund; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

8
51-7-2
51-13-101
51-13-201
51-13-202
63J-1-312
63J-1-313
51-7-2
51-13-101
51-13-201
51-13-202
63J-1-312
63J-1-313
0
State Sovereignty Fund
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Joseph Elison
Senate Sponsor: Chris H. Wilson
Cosponsor:
Stephanie Gricius
Jefferson Moss
Nelson T. Abbott
Matthew H. Gwynn
Hoang Nguyen
Cheryl K. Acton
Katy Hall
Clinton D. Okerlund
Carl R. Albrecht
Jon Hawkins
Doug Owens
Tiara Auxier
Sahara Hayes
Nicholeen P. Peck
Melissa G. Ballard
Sandra Hollins
Michael J. Petersen
Stewart E. Barlow
Ken Ivory
Thomas W. Peterson
Bridger Bolinder
Colin W. Jack
Calvin Roberts
Walt Brooks
Jill Koford
Angela Romero
Jefferson S. Burton
Michael L. Kohler
Jake Sawyer
Kristen Chevrier
Jason B. Kyle
Mike Schultz
Kay J. Christofferson
Trevor Lee
Troy Shelley
Tyler Clancy
Karianne Lisonbee
Lisa Shepherd
Paul A. Cutler
Anthony E. Loubet
Rex P. Shipp
Jennifer Dailey-Provost
Matt MacPherson
Andrew Stoddard
Ariel Defay
A. Cory Maloy
Mark A. Strong
Rosalba Dominguez
Ashlee Matthews
Jordan D. Teuscher
James A. Dunnigan
Verona Mauga
Jason E. Thompson
Steve Eliason
Tracy J. Miller
R. Neil Walter
Doug Fiefia
Grant Amjad Miller
Stephen L. Whyte
Jake Fitisemanu
Logan J. Monson
Ryan D. Wilcox
LONG TITLE
General Description:
This bill creates the State Sovereignty Fund.
Highlighted Provisions:
This bill:
defines terms;
establishes the State Sovereignty Fund;
provides for the funding, investment, and distribution of the State Sovereignty Fund; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
51-7-2
, as last amended by Laws of Utah 2024, Chapters 418, 492 and 510
63J-1-312
, as last amended by Laws of Utah 2022, Chapter 456
63J-1-313
, as last amended by Laws of Utah 2022, Chapter 456
ENACTS:
51-13-101
, Utah Code Annotated 1953
51-13-201
, Utah Code Annotated 1953
51-13-202
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
51-7-2
 is amended to read:
51-7-2
. Exemptions from chapter.
(1)
Except as provided in Subsection (2), the following funds are exempt from this chapter:
(a)
funds invested in accordance with the participating employees' designation or 
direction pursuant to a public employees' deferred compensation plan established and 
operated in compliance with Section 457 of the Internal Revenue Code of 1986, as 
amended;
(b)
funds of the Utah State Retirement Board;
(c)
funds of the Utah Housing Corporation;
(d)
endowment funds of higher education institutions, including funds of the Higher 
Education Student Success Endowment, created in Section 
53B-7-802
;
(e)
permanent and other land grant trust funds established pursuant to the Utah Enabling 
Act and the Utah Constitution;
(f)
the State Post-Retirement Benefits Trust Fund;
(g)
the funds of the Utah Educational Savings Plan;
(h)
funds of the permanent state trust fund created by and operated under Utah 
Constitution, Article XXII, Section 4;
(i)
the funds in the Navajo Trust Fund;
(j)
the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(k)
the funds in the Employers' Reinsurance Fund;
(l)
the funds in the Uninsured Employers' Fund;
(m)
the Utah State Developmental Center Long-Term Sustainability Fund, created in 
Section 
26B-1-331
;
(n)
the funds in the Risk Management Fund created in Section 
63A-4-201
;
(o)
the Utah fund of funds created in Section 
63N-6-401
;
(p)
the funds deposited into the Utah Homes Investment Program from the 
Transportation Infrastructure General Fund Support Subfund created in Section 
72-2-134
;
 and
(q)
subject to Subsection 
67-4-19(2)
, the portion of the funds in the following accounts 
invested by the state treasurer in precious metals:
(i)
the State Disaster Recovery Restricted Account, created in Section 
53-2a-603
;
(ii)
the General Fund Budget Reserve Account, created in Section 
63J-1-312
;
(iii)
the Income Tax Fund Budget Reserve Account, created in Section 
63J-1-313
; and
(iv)
the Medicaid Growth Reduction and Budget Stabilization Account, created in 
Section 
63J-1-315
.
63J-1-315
; and
(r)
the State Sovereignty Fund created in Section 
51-13-201
.
(2)
Except for the funds of the Utah State Retirement Board and the Utah Educational 
Savings Plan, the funds described in Subsection (1) are not exempt from Subsections 
51-7-14
(2) and (3).
(3)
Notwithstanding Title 52, Chapter 4, Open and Public Meetings Act, a public body that 
administers a fund described in Subsection (1) may hold a closed meeting to discuss the 
sale or purchase of identifiable securities, investment funds, or investment contracts.
(4)
A paper, electronic, or other depiction or record of information relating to investment 
activities of a fund described in Subsection (1) is not subject to Title 63G, Chapter 2, 
Government Records Access and Management Act.
Section 2, Section 
51-13-101
 is enacted to read:
13. STATE SOVEREIGNTY FUND
1. General Provisions 
51-13-101
. Definitions.
As used in this chapter:
(1)
"Division" means the Division of Finance created in Section 
63A-3-101
.
(2)
"Excess revenue collections" means any amount of General Fund or Income Tax Fund 
revenue that, in any fiscal year, exceeds the estimated revenue for that fiscal year last 
adopted by the Executive Appropriations Committee by more than two standard 
deviations on a 20-year mean.
(3)
"Fund" means the State Sovereignty Fund created in Section 
51-13-201
.
(4)
"General Fund Budget Reserve Account" means the General Fund Budget Reserve 
Account created in Section 
63J-1-312
.
(5)
"Income Tax Fund Budget Reserve Account" means the Income Tax Fund Budget 
Reserve Account created in Section 
63J-1-313
.
(6)
(a)
"Principal" means money deposited into the State Sovereignty Fund in accordance 
with Section 
51-13-201
.
(b)
"Principal" does not include earnings like interest, dividends, or asset appreciation 
credited to the State Sovereignty Fund.
(7)
"Reserve account surplus" means an amount described in Subsection 
63J-1-312(3)(a)(ii)
(B) or 
63J-1-313(3)(a)(ii)
(B).
Section 3, Section 
51-13-201
 is enacted to read:
2. Establishment of State Sovereignty Fund 
51-13-201
. State Sovereignty Fund -- Creation -- Distribution.
(1)
There is created the State Sovereignty Fund which consists of:
(a)
any reserve account surplus;
(b)
one-half of any General Fund savings from a decrease in the Federal Medical 
Assistance Percentages;
(c)
if the federal government offers an enhanced Federal Medical Assistance Percentage, 
12.5% of the resulting state fund savings;
(d)
any excess revenue collections;
(e)
interest, dividends, or other earnings attributable to the fund; and
(f)
additional money appropriated by the Legislature.
(2)
(a)
The division shall deposit into the fund any amounts described in Subsections 
(1)
(a) through (f).
(b)
The Governor's Office of Planning and Budget, in consultation with the legislative 
fiscal analyst, shall annually report to the Division of Finance the amounts described 
in Subsections 
(1)(b)
, (c), and (d).
(3)
The division shall separately track principal deposits into the fund from the General 
Fund and Income Tax Fund, including earnings on the deposits.
(4)
In accordance with Section 
51-13-202
, the state treasurer shall invest the money in the 
fund for the benefit of the people of the state in perpetuity.
(5)
The Legislature may not appropriate money from the fund before fiscal year 2075-76.
(6)
(a)
Beginning fiscal year 2075-76, the Legislature may appropriate up to 50% of the 
annual earnings from the investment of the fund to offset reduced federal funding or 
to provide state tax relief.
(b)
After any appropriations under Subsection 
(6)(a)
, the division shall deposit any 
remaining earnings into the fund for investment.
(7)
The Legislature may appropriate principal from the fund only:
(a)
by affirmative vote of two-thirds of all members elected of each chamber of the 
Legislature; and
(b)
for the purpose of offsetting reduced federal funding or providing state tax relief.
Section 4, Section 
51-13-202
 is enacted to read:
51-13-202
. State Sovereignty Fund -- Investment -- Administrative costs.
(1)
The state treasurer shall:
(a)
invest money in the fund with the following goals, in order of priority:
(i)
providing for growth of the principal; and
(ii)
fund stability;
(b)
invest and manage fund assets as a prudent investor would by:
(i)
considering the purpose, terms, distribution requirements, and other circumstances 
of the fund; and
(ii)
 exercising reasonable care, skill, and caution in order to meet the standard of care 
of a prudent investor; and
(c)
 deposit into the fund the interest, dividends, or other earnings attributable to the fund.
(2)
The state treasurer may deduct any administrative costs incurred by managing the fund 
from earnings generated by investments in the fund.
Section 5, Section 
63J-1-312
 is amended to read:
63J-1-312
. Establishing a General Fund Budget Reserve Account -- Providing 
for deposits and expenditures from the account -- Providing for interest generated by the 
account.
(1)
As used in this section:
(a)
" Income Tax Fund budget deficit" means a situation where appropriations made by 
the Legislature from the Income Tax Fund for a fiscal year exceed the estimated 
revenues adopted by the Executive Appropriations Committee of the Legislature for 
the Income Tax Fund in that fiscal year.
(b)
"General Fund appropriations" means the sum of the spending authority for a fiscal 
year that is:
(i)
granted by the Legislature in all appropriation acts and bills; and
(ii)
identified as coming from the General Fund.
(c)
"General Fund budget deficit" means a situation where General Fund appropriations 
made by the Legislature for a fiscal year exceed the estimated revenues adopted by 
the Executive Appropriations Committee of the Legislature for the General Fund in 
that fiscal year.
(d)
"General Fund revenue surplus" means a situation where actual General Fund 
revenues collected in a completed fiscal year exceed the estimated revenues for the 
General Fund for that fiscal year that were adopted by the Executive Appropriations 
Committee of the Legislature.
(e)
"Operating deficit" means that, at the end of the fiscal year, the unassigned fund 
balance in the General Fund is less than zero.
(2)
There is created within the General Fund a restricted account to be known as the 
General Fund Budget Reserve Account, which is designated to receive the legislative 
appropriations and the surplus revenue required to be deposited into the account by this 
section.
(3)
(a)
(i)
Except as provided in Subsection 
(3)(a)(ii)
, at the end of any fiscal year in 
which the Division of Finance, in consultation with the 
Legislative Fiscal Analyst
legislative fiscal analyst
 and in conjunction with the completion of the annual 
audit by the state auditor, determines that there is a General Fund revenue surplus, 
the Division of Finance shall transfer 25% of the General Fund revenue surplus to 
the General Fund Budget Reserve Account.
(ii)
If the transfer of 25% of the General Fund revenue surplus to the General Fund 
Budget Reserve Account would cause the balance in the account to exceed 9% of 
General Fund appropriations for the fiscal year in which the revenue surplus 
occurred, the Division of Finance shall
:
(A)
transfer 
to the General Fund Budget Reserve Account 
only those funds 
necessary to ensure that the balance in the account equals 9% of General Fund 
appropriations for the fiscal year in which the General Fund revenue surplus 
occurred
.
; and
(B)
transfer to the State Sovereignty Fund created in Section 
51-13-201
 the 
remaining amount of the 25% of the General Fund revenue surplus described 
in Subsection 
(3)(a)(i)
.
(iii)
The Division of Finance shall calculate the amount to be transferred under this 
Subsection 
(3)(a)
:
(A)
after making the transfer of General Fund revenue surplus to the Medicaid 
Growth Reduction and Budget Stabilization Account, as provided in Section 
63J-1-315
;
(B)
before transferring from the General Fund revenue surplus any other year-end 
contingency appropriations, year-end set-asides, or other year-end transfers 
required by law; and
(C)
excluding any direct legislative appropriation made to the General Fund 
Budget Reserve Account for the fiscal year.
(b)
(i)
Except as provided in Subsection 
(3)(b)(ii)
, in addition to Subsection 
(3)(a)(i)
, 
if a General Fund revenue surplus exists and if, within the last 10 years, the 
Legislature has appropriated any money from the General Fund Budget Reserve 
Account that has not been replaced by appropriation or as provided in this 
Subsection 
(3)(b)
, the Division of Finance shall transfer up to 25% more of the 
General Fund revenue surplus to the General Fund Budget Reserve Account to 
replace the amounts appropriated, until direct legislative appropriations, if any, 
and transfers from the General Fund revenue surplus under this Subsection 
(3)(b)
have replaced the appropriations from the account.
(ii)
If the transfer under Subsection 
(3)(b)(i)
 would cause the balance in the account 
to exceed 9% of General Fund appropriations for the fiscal year in which the 
revenue surplus occurred, the Division of Finance shall transfer only those funds 
necessary to ensure that the balance in the account equals 9% of General Fund 
appropriations for the fiscal year in which the revenue surplus occurred.
(iii)
The Division of Finance shall calculate the amount to be transferred under this 
Subsection 
(3)(b)
:
(A)
after making the transfer of General Fund revenue surplus to the Medicaid 
Growth Reduction and Budget Stabilization Account, as provided in Section 
63J-1-315
;
(B)
before transferring from the General Fund revenue surplus any other year-end 
contingency appropriations, year-end set-asides, or other year-end transfers 
required by law; and
(C)
excluding any direct legislative appropriation made to the General Fund 
Budget Reserve Account for the fiscal year.
(c)
For appropriations made by the Legislature to the General Fund Budget Reserve 
Account, the Division of Finance shall treat those appropriations, unless otherwise 
specified in the appropriation, as replacement funds for appropriations made from the 
account if funds were appropriated from the General Fund Budget Reserve Account 
within the past 10 years and have not yet been replaced.
(4)
The Legislature may appropriate money from the General Fund Budget Reserve 
Account only to:
(a)
resolve a General Fund budget deficit, for the fiscal year in which the General Fund 
budget deficit occurs;
(b)
pay some or all of state settlement agreements approved under 
Title 63G, Chapter 
10, State Settlement Agreements Act
;
(c)
pay claims approved under Section 
63G-9-304
;
(d)
pay retroactive tax refunds;
(e)
resolve an Income Tax Fund budget deficit; or
(f)
finance an existing federally funded program or activity when:
(i)
the federal funds expected to fund the federal program or activity are not available 
to fund the program or activity; and
(ii)
the Legislature and governor concurrently determine that the program or activity 
is essential.
(5)
Interest generated from investments of money in the General Fund Budget Reserve 
Account shall be deposited into the General Fund.
Section 6, Section 
63J-1-313
 is amended to read:
63J-1-313
. Establishing an Income Tax Fund Budget Reserve Account -- 
Providing for deposits and expenditures from the account -- Providing for interest 
generated by the account.
(1)
As used in this section:
(a)
" Income Tax Fund appropriations" means the sum of the spending authority for a 
fiscal year that is:
(i)
granted by the Legislature in all appropriation acts and bills; and
(ii)
identified as coming from the Income Tax Fund.
(b)
" Income Tax Fund budget deficit" means a situation where appropriations made by 
the Legislature from the Income Tax Fund for a fiscal year exceed the estimated 
revenues adopted by the Executive Appropriations Committee of the Legislature for 
the Income Tax Fund in that fiscal year.
(c)
" Income Tax Fund revenue surplus" means a situation where actual Income Tax 
Fund revenues collected in a completed fiscal year exceed the estimated revenues for 
the Income Tax Fund in that fiscal year that were adopted by the Executive 
Appropriations Committee of the Legislature.
(d)
"Operating deficit" means that, at the end of the fiscal year, the unassigned fund 
balance in the Income Tax Fund is less than zero.
(2)
There is created within the Income Tax Fund a restricted account to be known as the 
Income Tax Fund Budget Reserve Account, which is designated to receive the 
legislative appropriations and the surplus revenue required to be deposited into the 
account by this section.
(3)
(a)
(i)
Except as provided in Subsection 
(3)(a)(ii)
, at the end of any fiscal year in 
which the Division of Finance, in consultation with the 
Legislative Fiscal Analyst
legislative fiscal analyst
 and in conjunction with the completion of the annual 
audit by the state auditor, determines that there is an Income Tax Fund revenue 
surplus, the Division of Finance shall transfer 25% of the Income Tax Fund 
revenue surplus to the Income Tax Fund Budget Reserve Account.
(ii)
If the transfer of 25% of the Income Tax Fund revenue surplus to the Income Tax 
Fund Budget Reserve Account under Subsection 
(3)(a)(i)
 would cause the balance 
in the account to exceed 11% of Income Tax Fund appropriations for the fiscal 
year in which the Income Tax Fund revenue surplus occurred, the Division of 
Finance shall
:
(A)
transfer 
to the Income Tax Fund Budget Reserve Account 
only those funds 
necessary to ensure that the balance in the account equals 11% of the Income 
Tax Fund appropriations for the fiscal year in which the Income Tax Fund 
revenue surplus occurred
.
; and
(B)
transfer to the State Sovereignty Fund created in Section 
51-13-201
 the 
remaining amount of the 25% of the Income Tax Fund revenue surplus 
described in Subsection (3)(a)(i).
(iii)
The Division of Finance shall calculate the amount to be transferred under this 
Subsection 
(3)(a)
:
(A)
before transferring from the Income Tax Fund revenue surplus any other 
year-end contingency appropriations, year-end set-asides, or other year-end 
transfers required by law; and
(B)
excluding any direct legislative appropriation made to the Income Tax Fund 
Budget Reserve Account for the fiscal year.
(b)
(i)
Except as provided in Subsection 
(3)(b)(ii)
, in addition to Subsection 
(3)(a)(i)
, 
if an Income Tax Fund revenue surplus exists and if, within the last 10 years, the 
Legislature has appropriated any money from the Income Tax Fund Budget 
Reserve Account that has not been replaced by appropriation or as provided in this 
Subsection 
(3)(b)
, the Division of Finance shall transfer up to 25% more of the 
Income Tax Fund revenue surplus to the Income Tax Fund Budget Reserve 
Account to replace the amounts appropriated, until direct legislative 
appropriations, if any, and transfers from the Income Tax Fund revenue surplus 
under this Subsection 
(3)(b)
 have replaced the appropriations from the account.
(ii)
If the transfer under Subsection 
(3)(b)(i)
 would cause the balance in the account 
to exceed 11% of Income Tax Fund appropriations for the fiscal year in which the 
Income Tax Fund revenue surplus occurred, the Division of Finance shall transfer 
only those funds necessary to ensure that the balance in the account equals 11% of 
Income Tax Fund appropriations for the fiscal year in which the revenue surplus 
occurred.
(iii)
The Division of Finance shall calculate the amount to be transferred under this 
Subsection 
(3)(b)
:
(A)
before transferring from the Income Tax Fund revenue surplus any other 
year-end contingency appropriations, year-end set-asides, or other year-end 
transfers required by law; and
(B)
excluding any direct legislative appropriation made to the Income Tax Fund 
Budget Reserve Account for the fiscal year.
(c)
For appropriations made by the Legislature to the Income Tax Fund Budget Reserve 
Account, the Division of Finance shall treat those appropriations, unless specified 
otherwise in the appropriation, as replacement funds for appropriations made from 
the account if funds were appropriated from the account within the past 10 years and 
have not yet been replaced.
(4)
Notwithstanding Subsection 
(3)
, if, at the end of a fiscal year, the Division of Finance 
determines that an operating deficit exists, the Division of Finance may reduce the 
transfer to the Income Tax Fund Budget Reserve Account by the amount necessary to 
eliminate the operating deficit.
(5)
The Legislature may appropriate money from the Income Tax Fund Budget Reserve 
Account only to resolve an Income Tax Fund budget deficit.
(6)
Interest generated from investments of money in the Income Tax Fund Budget Reserve 
Account shall be deposited into the Income Tax Fund.
Section 7. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-13-25 2:00 PM