51-13 - State Sovereignty Fund

Title 51 > 51-13

Sections (3)

General Provisions

51-13-101 - Definitions.

(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) “Principal” means money deposited into the State Sovereignty Fund in accordance with Section 51-13-201.”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).

Enacted by Chapter 272, 2025 General Session

Establishment of State Sovereignty Fund

51-13-201 - State Sovereignty Fund — Creation — Distribution.

(1) There is created the State Sovereignty Fund which consists of:any reserve account surplus;one-half of any General Fund savings from a decrease in the Federal Medical Assistance Percentages;if the federal government offers an enhanced Federal Medical Assistance Percentage, 12.5% of the resulting state fund savings;any excess revenue collections;interest, dividends, or other earnings attributable to the fund; andadditional money appropriated by the Legislature.

(2) The division shall deposit into the fund any amounts described in Subsections (1)(a) through (f).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) 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.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:by affirmative vote of two-thirds of all members elected of each chamber of the Legislature; andfor the purpose of offsetting reduced federal funding or providing state tax relief.

Enacted by Chapter 272, 2025 General Session

51-13-202 - State Sovereignty Fund — Investment — Administrative costs.

(1) The state treasurer shall:invest money in the fund with the following goals, in order of priority:providing for growth of the principal; andfund stability;invest and manage fund assets as a prudent investor would by:considering the purpose, terms, distribution requirements, and other circumstances of the fund; andexercising reasonable care, skill, and caution in order to meet the standard of care of a prudent investor; anddeposit 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.

Enacted by Chapter 272, 2025 General Session