HB 596 — Homelessness Amendments
Last action — House/ filed
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✓Introduced
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✓In Committee
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✓Passed House
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✓Passed Senate
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5To Executive
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6Enacted
This bill has been sent to the executive. Introduced February 23, 2026. It awaits signature.
Next likely step: the executive signs it into law or issues a veto.
Prognosis
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To Executive
Current position in the legislative process.
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2 sponsors
1 primary, 1 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (2 R).
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
1348 added · 1085 removedPlain-language change summary
In the latest version of Bill HB 596, several important changes were made regarding homeless shelter regulations. The bill now specifies that municipalities cannot set a capacity limit on homeless shelters, which allows these shelters more flexibility to accommodate individuals in need. Additionally, it introduces a new funding mechanism called the Homeless Services Restricted Account, which will help counties manage homelessness more effectively. These changes are significant because they aim to improve services for homeless individuals and ensure that local governments have the necessary support and resources.
HB0596S02 compared with HB0596S01HB0596 {Omitted text} shows text that was in HB0596S01HB0596 but was omitted in HB0596S02 inserted text shows text that was not in HB0596S01HB0596 but was inserted into HB0596S02 DISCLAIMER:
▸ {prohibits a municipality from imposing a capacity limit on a homeless shelter;} ▸ {provides that lease payments made to the office shall be deposited into the Homeless Shelter Cities Mitigation Restricted Account;} ▸ {allows the Utah Homeless Services Board (board), in cooperation with the fire marshal, local homeless councils, and a homeless services nonprofit organization to set a capacity limit for certain homeless shelters;} ▸ amends exceptions for conveyance, lease, or disposal of certain property owned by thethH Division of Facilities {and } Construction and ManagementManagementwith with the consent of the governing body of the B municipality in which the property is located;
5 ▸ 9 HB0596 compared with HB0596S02 provides funds received from a lease may be used for the operations and maintenance of the leased space;
H ▸ creates the Mitigation Fund Task Force;
9 ▸ amends the name of the Shelter Counties Advisory Board to the Shelter Counties Coordinating S Council;
1▸ HB0596S01{amends comparedcertain withfunding HB0596S02formulas for deposits into the Homeless Shelter Cities Mitigation Restricted Account;} ▸ {amends provisions regarding code blue alerts;} ▸ {requires } permits the {Office of Homeless Services (office) } office to issue future services payments to a homeless service provider {(provider) } under certain conditions;
▸ {requires the State Tax Commission to transfer certain funds from the Cigarette Tax Restricted Account to the account;} ▸ {enacts a code red alert;} ▸ gives the office rulemaking authority under certain conditions for certain purposes;
▸ {permitsmakes atechnical serviceand providerconforming changes;and ▸ {provides for intent language that up to expand$2,000,000 of the shelter'sappropriated bedfunds capacityfor limitfiscal underyear certainending conditions;}2026 ▸shall makesbe technicalused for a certain purpose and conformingthe changes;remaining nonlapsing funds for fiscal year beginning 2027 may be used for certain purposes;
andand} ▸ provides a special effective date.
None▸ Other{ SpecialThis Clauses:bill appropriates ($20,998,000) in operating and capital budgets for fiscal year 2026, all of which is from the General Fund.
} ▸ { - 2 - HB0596 compared with HB0596S02 This bill appropriates $20,998,000 in operating and capital budgets for fiscal year 2027, all of which is from the General Fund.
} None Other Special Clauses:
{10-20-506 (Effective 04/01/26), as renumbered and amended by Laws of Utah 2025, First Special Session, Chapter 15} {26B-1-202 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapter 426} 35A-16-102 (Effective 04/01/26), as last amended by Laws of Utah 2025, First Special Session, Chapter 16 35A-16-202 (Effective 04/01/26), as last amended by Laws of Utah 2024, Chapters 338, 349 35A-16-203 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapter 530 35A-16-204 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapter 530 35A-16-208 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapters 422, 530 35A-16-210 (Effective 04/01/26), as enacted by Laws of Utah 2024, Chapter 338 35A-16-210.1 (Effective 04/01/26), as enacted by Laws of Utah 2025, Chapter 530 35A-16-212 (Effective 04/01/26) (Repealed 07/01/28), as enacted by Laws of Utah 2025, Chapter 35A-16-401 (Effective 04/01/26), as last amended by Laws of Utah 2024, Chapters 204, 338 and -{35A-16-402 2(Effective -04/01/26), HB0596S01as comparedlast withamended HB0596S02by Laws of Utah 2024, Chapters 204, 338} {35A-16-701 (Effective 04/01/26), as last amended by Laws of Utah 2024, Chapters 204, 438} {35A-16-702 (Effective 04/01/26), as last amended by Laws of Utah 2024, Chapter 204} 59-12-205 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapters 490, 495 {59-14-204 (Effective 04/01/26), as last amended by Laws of Utah 2016, Chapter 168} 63A-5b-902 (Effective 04/01/26), as last amended by Laws of Utah 2024, Chapters 419, 480 63I-2-235 (Effective 04/01/26), as last amended by Laws of Utah 2025, Chapter 277 - 3 - HB0596 compared with HB0596S02 {63J-1-602.1 (Effective 04/01/26), as last amended by Laws of Utah 2025, First Special Session, Chapter 9} ENACTS:
{35A-16-205.2 (Effective 04/01/26), Utah Code Annotated 1953} 35A-16-406 (Effective 04/01/26), Utah Code Annotated 1953 35A-16-1101 (Effective 04/01/26), Utah Code Annotated 1953 {35A-16-1201 (Effective 04/01/26), Utah Code Annotated 1953} {35A-16-1301 (Effective 04/01/26), Utah Code Annotated 1953} {35A-16-1302 (Effective 04/01/26), Utah Code Annotated 1953} {35A-16-1303 (Effective 04/01/26), Utah Code Annotated 1953} 57 Be it enacted by the Legislature of the state of Utah:
{Section 1.
Section 10-20-506 is amended to read:
} 10-20-506.
Conditional uses.
(1) (a) A municipality may adopt a land use ordinance that includes conditional uses and provisions for conditional uses that require compliance with objective standards set forth in an applicable ordinance.
(b) A municipality may not impose a requirement or standard on a conditional use that conflicts with a provision of this chapter or other state or federal law.
(2) (a) (i) A land use authority shall approve a conditional use if reasonable conditions are proposed, or can be imposed, to mitigate the reasonably anticipated detrimental effects of the proposed use in accordance with applicable standards.
(ii) The requirement described in Subsection (2)(a)(i) to reasonably mitigate anticipated detrimental effects of the proposed conditional use does not require elimination of the detrimental effects.
(b) If a land use authority proposes reasonable conditions on a proposed conditional use, the land use authority shall ensure that the conditions are stated on the record and reasonably relate to mitigating the anticipated detrimental effects of the proposed use.
- 4 - HB0596 compared with HB0596S02 (c) If the reasonably anticipated detrimental effects of a proposed conditional use cannot be substantially mitigated by the proposal or the imposition of reasonable conditions to achieve compliance with applicable standards, the land use authority may deny the conditional use.
(3) A land use authority's decision to approve or deny conditional use is an administrative land use decision.
(4) A legislative body shall classify any use that a land use regulation allows in a zoning district as either a permitted or conditional use under this chapter.
(5) A municipality that approves a conditional use permit for a homeless shelter, as that term is defined in Section 35A-16-701, may not impose a capacity limit on the number of individuals experiencing homelessness who may occupy a homeless shelter for overnight accommodations, whether the homeless shelter is operating year-round, temporarily, or for emergency purposes.
{Section 2.
Section 26B-1-202 is amended to read:
} 26B-1-202.
Department authority and duties.
(1) As used in this section, "public funds" means the same as that term is defined in Section 26B-5-101.
(2) The department may, subject to applicable restrictions in state law and in addition to all other authority and responsibility granted to the department by law:
(a) [adopt ] make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and not inconsistent with law, as the department may consider necessary or desirable for providing health and social services to the people of this state;
(b) establish and manage client trust accounts in the department's institutions and community programs, at the request of the client or the client's legal guardian or representative, or in accordance with federal law;
(c) purchase, as authorized or required by law, services that the department is responsible to provide for legally eligible persons;
(d) conduct adjudicative proceedings for clients and providers in accordance with the procedures of Title 63G, Chapter 4, Administrative Procedures Act;
(e) establish eligibility standards for the department's programs, not inconsistent with state or federal law or regulations;
(f) take necessary steps, including legal action, to recover money or the monetary value of services provided to a recipient who was not eligible;
(g) set and collect fees for the department's services;
Show all 496 changed lines (456 more)
- 5 - HB0596 compared with HB0596S02 (h) license agencies, facilities, and programs, except as otherwise allowed, prohibited, or limited by law;
(i) acquire, manage, and dispose of any real or personal property needed or owned by the department, not inconsistent with state law;
(j) receive gifts, grants, devises, and donations;
gifts, grants, devises, donations, or the proceeds thereof, may be credited to the program designated by the donor, and may be used for the purposes requested by the donor, as long as the request conforms to state and federal policy;
all donated funds shall be considered private, nonlapsing funds and may be invested under guidelines established by the state treasurer;
(k) accept and employ volunteer labor or services;
the department is authorized to reimburse volunteers for necessary expenses, when the department considers that reimbursement to be appropriate;
(l) carry out the responsibility assigned in the workforce services plan by the State Workforce Development Board;
(m) carry out the responsibility assigned by Section 26B-1-430 with respect to coordination of services for students with a disability;
(n) provide training and educational opportunities for the department's staff;
(o) collect child support payments and any other money due to the department;
(p) apply the provisions of Title 81, Chapter 6, Child Support, and Title 81, Chapter 7, Payment and Enforcement of Spousal and Child Support, to parents whose child lives out of the home in a department licensed or certified setting;
(q) establish policy and procedures, within appropriations authorized by the Legislature, in cases where the Division of Child and Family Services or the Division of Juvenile Justice and Youth Services is given custody of a minor by the juvenile court under Title 80, Utah Juvenile Code, or the department is ordered to prepare an attainment plan for a minor found not competent to proceed under Section 80-6-403, including:
(i) designation of interagency teams for each juvenile court district in the state;
(ii) delineation of assessment criteria and procedures;
(iii) minimum requirements, and timeframes, for the development and implementation of a collaborative service plan for each minor placed in department custody;
and (iv) provisions for submittal of the plan and periodic progress reports to the court;
(r) carry out the responsibilities assigned to the department by statute;
- 6 - HB0596 compared with HB0596S02 (s) as further provided in Subsection (3), examine and audit the expenditures of any public funds provided to a local health department, a local substance abuse authority, a local mental health authority, a local area agency on aging, and any person, agency, or organization that contracts with or receives funds from those authorities or agencies;
(t) in accordance with Subsection 26B-2-104(1)(d), accredit one or more agencies and persons to provide intercountry adoption services;
(u) within legislative appropriations, promote and develop a system of care and stabilization services:
(i) in compliance with Title 63G, Chapter 6a, Utah Procurement Code;
and (ii) that encompasses the department, department contractors, and the divisions, offices, or institutions within the department, to:
(A) navigate services, funding resources, and relationships to the benefit of the children and families whom the department serves;
(B) centralize department operations, including procurement and contracting;
(C) develop policies that govern business operations and that facilitate a system of care approach to service delivery;
(D) allocate resources that may be used for the children and families served by the department or the divisions, offices, or institutions within the department, subject to the restrictions in Section 63J-1-206;
(E) create performance-based measures for the provision of services;
and (F) centralize other business operations, including data matching and sharing among the department's divisions, offices, and institutions;
(v) ensure that any training or certification required of a public official or public employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter 22, State Training and Certification Requirements, if the training or certification is required:
(i) under this title;
(ii) by the department;
or (iii) by an agency or division within the department;
(w) enter into cooperative agreements with the Department of Environmental Quality to delineate specific responsibilities to assure that assessment and management of risk to human health from the environment are properly administered;
- 7 - HB0596 compared with HB0596S02 (x) consult with the Department of Environmental Quality and enter into cooperative agreements, as needed, to ensure efficient use of resources and effective response to potential health and safety threats from the environment, and to prevent gaps in protection from potential risks from the environment to specific individuals or population groups;
(y) to the extent authorized under state law or required by federal law, promote and protect the health and wellness of the people within the state;
(z) establish, maintain, and enforce rules authorized under state law or required by federal law to promote and protect the public health or to prevent disease and illness;
(aa) investigate the causes of epidemic, infectious, communicable, and other diseases affecting the public health;
(bb) provide for the detection and reporting of communicable, infectious, acute, chronic, or any other disease or health hazard which the department considers to be dangerous, important, or likely to affect the public health;
(cc) collect and report information on causes of injury, sickness, death, and disability and the risk factors that contribute to the causes of injury, sickness, death, and disability within the state;
(dd) collect, prepare, publish, and disseminate information to inform the public concerning the health and wellness of the population, specific hazards, and risks that may affect the health and wellness of the population and specific activities which may promote and protect the health and wellness of the population;
(ee) abate nuisances when necessary to eliminate sources of filth and infectious and communicable diseases affecting the public health;
(ff) make necessary sanitary and health investigations and inspections in cooperation with local health departments as to any matters affecting the public health;
(gg) establish laboratory services necessary to support public health programs and medical services in the state;
(hh) establish and enforce standards for laboratory services which are provided by any laboratory in the state when the purpose of the services is to protect the public health;
(ii) cooperate with the Labor Commission to conduct studies of occupational health hazards and occupational diseases arising in and out of employment in industry, and make recommendations for elimination or reduction of the hazards;
- 8 - HB0596 compared with HB0596S02 (jj) cooperate with the local health departments, the Department of Corrections, the Administrative Office of the Courts, the Division of Juvenile Justice and Youth Services, and the Utah Office for Victims of Crime to conduct testing for HIV infection of alleged sexual offenders, convicted sexual offenders, and any victims of a sexual offense;
(kk) investigate the causes of maternal and infant mortality;
(ll) establish, maintain, and enforce a procedure requiring the blood of adult pedestrians and drivers of motor vehicles killed in highway accidents be examined for the presence and concentration of alcohol, and provide the Commissioner of Public Safety with monthly statistics reflecting the results of these examinations, with necessary safeguards so that information derived from the examinations is not used for a purpose other than the compilation of these statistics;
(mm) establish a uniform public health program throughout the state which includes continuous service, employment of qualified employees, and a basic program of disease control, vital and health statistics, sanitation, public health nursing, and other preventive health programs necessary or desirable for the protection of public health;
(nn) conduct health planning for the state;
(oo) monitor the costs of health care in the state and foster price competition in the health care delivery system;
(pp) establish methods or measures for health care providers, public health entities, and health care insurers to coordinate among themselves to verify the identity of the individuals the providers serve;
(qq) designate Alzheimer's disease and related dementia as a public health issue and, within budgetary limitations, implement a state plan for Alzheimer's disease and related dementia by incorporating the plan into the department's strategic planning and budgetary process;
(rr) coordinate with other state agencies and other organizations to implement the state plan for Alzheimer's disease and related dementia;
(ss) ensure that any training or certification required of a public official or public employee, as those terms are defined in Section 63G-22-102, complies with Title 63G, Chapter 22, State Training and Certification Requirements, if the training or certification is required by the agency or under this Title 26B, Utah Health and Human Services Code;
(tt) oversee public education vision screening as described in Section 53G-9-404;
(uu) issue code blue alerts in accordance with Title 35A, Chapter 16, Part 7, Code Blue Alert;
(vv) issue code red alerts in accordance with Title 35A, Chapter 16, Part 13, Code Red Alert;
and - 9 - HB0596 compared with HB0596S02 [(vv)] (ww) as allowed by state and federal law, share data with the Office of Families that is relevant to the duties described in Subsection 26B-1-243(4), which may include, to the extent available:
(i) demographic data concerning family structures in the state;
and (ii) data regarding the family structure associated with:
(A) suicide, depression, or anxiety;
and (B) various health outcomes.
(3) (a) Under Subsection (2)(s), those local departments, local authorities, area agencies, and any person or entity that contracts with or receives funds from those departments, authorities, or area agencies, shall provide the department with any information the department considers necessary.
(b) The department is further authorized to issue directives resulting from any examination or audit to a local department, local authority, an area agency, and persons or entities that contract with or receive funds from those departments, authorities, or agencies with regard to any public funds.
(c) If the department determines that it is necessary to withhold funds from a local health department, local mental health authority, or local substance abuse authority based on failure to comply with state or federal law, policy, or contract provisions, the department may take steps necessary to ensure continuity of services.
- 10 - HB0596 compared with HB0596S02 [(5)] (6) "Continuum of care" means a regional or local planning body designated by the United States Department of Housing and Urban Development to coordinate services for individuals experiencing homelessness within an area of the state.
- 3 - HB0596S01 compared with HB0596S02 [(7)] (8) "County of the first class" means the same as that term is defined in Section 17-60-104.
(11)(10){(11)} (a) "Emergency shelter" means a facility that provides immediate, temporary shelter to individuals experiencing homelessness.
(i) a subsequent winter response period, as defined in Section 35A-16-501;35A-16-501;and (ii) a code blue event, as defined in Section 35A-16-701{;
andand} (ii). a code blue event, as defined in Section 35A-16-701.
[(10)] (12) {a code red event, as defined in Section 35A-16-1301.} {[(10)] (11)} "Executive committee" means the executive committee of the board.
[(11)] (13)(12){(13)} "Exit destination" means:
[(12)] (14)(13){(14)} "First-tier eligible municipality" means a municipality that:
- 11 - HB0596 compared with HB0596S02 (c) due to the location of an eligible shelter within the municipality's geographic boundaries, requires eligible services;
[(13)] (15)(14){(15)} "Homeless Management Information System" or "HMIS" means an information technology system that:
- 4 - HB0596S01 compared with HB0596S02 (a) is used to collect client-level data and data on the provision of housing and services to homeless individuals and individuals at risk of homelessness in the state;
[(14)] (16)(15){(16)} "Homeless services budget" means the comprehensive annual budget and overview of all homeless services available in the state described in Subsection 35A-16-203(1)(b).
[(15)] (17)(16){(17)} "Local homeless council" means a local planning body designated by the steering committee to coordinate services for individuals experiencing homelessness within an area of the state.
[(16)] (19)(17){(19)} "Office" means the Office of Homeless Services.
[(17)] (20)(18){(20)} "Residential, vocational and life skills program" means the same as that term is defined in Section 13-53-102.
[(18)] (21)(19){(21)} "Second-tier eligible municipality" means a municipality that:
[(19)] (22)(20){(22)} (a) "Service provider" means a state agency, a local government, or a private organization that provides services to clients.
- 12 - HB0596 compared with HB0596S02 [(20)] (23)(21){(23)} "Steering committee" means the Utah Homeless Network Steering Committee created in Section 35A-16-206.
[(21)] (24)(22){(24)} "Strategic plan" means the statewide strategic plan to minimize homelessness in the state described in Subsection 35A-16-203(1)(c).
[(22)] (25)(23){(25)} "Type of homelessness" means:
- 5 - HB0596S01 compared with HB0596S02 (b) episodic homelessness;
and{[and]} (e) provide support to the steering committee in developing the formula described in Section 35A-16-211.35A-16-211{[.{]} ;
and} {(f) establish standards for determining capacity limits of homeless shelters in accordance with Section 35A-16-205.2.} (2) The office may:
- 13 - HB0596 compared with HB0596S02 (a) by following the procedures and requirements of Title 63J, Chapter 5, Federal Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
(3) (a) In accordance with Section 63A-5b-902, the office may accept a conveyance, lease, or disposal of property owned by the Division of Facilities {and } Construction and Management,Management , with the written - 6 - HB0596S01 compared with HB0596S02 consent of the governing body of the municipality in which the property is located, for use as a temporary shelter to individuals experiencing homelessness.
(b) homeless shelter use restrictions, including whether the homeless {center } shelter may be used as an overflow or emergency shelter;
and (d) a termination clause, including cause for termination of a lease agreement if the housing sponsor fails to meet the requirements under this chapter.chapter{;
and} .
(6)(5){(6)} Lease payments received under the lease agreement described in this section {shall } may be {deposited into } used for the {Homeless Shelter Cities Mitigation Restricted Account } operations and {used as for } maintenance of the {purpose described in Section 35A-16-402} leased space.
- 14 - HB0596 compared with HB0596S02 (b) in cooperation with the board, develop and maintain a comprehensive annual budget and overview of all homeless services available in the state, which homeless services budget shall receive final approval by the board;
- 7 - HB0596S01 compared with HB0596S02 (e) provide administrative support to and serve as a member of the board;
(c) identifies best practices or innovative strategies and recommends improvements in coordinating the delivery of services to the variety of populations experiencing homelessness in the state, including - 15 - HB0596 compared with HB0596S02 through the use of electronic databases and improved data sharing among all service providers in the state;
(a) shall prioritize the funding of programs and providers that have a documented history of successfully reducing the number of individuals experiencing homelessness, reducing the time - 8 - HB0596S01 compared with HB0596S02 individuals spend experiencing homelessness, moving individuals experiencing homelessness to permanent housing, or reducing the number of individuals who return to experiencing homelessness;
- 16 - HB0596 compared with HB0596S02 (iii) recommendations regarding improvements to coordinating and providing services to individuals experiencing homelessness in the state;
- 9 - HB0596S01 compared with HB0596S02 Section 4.
- 17 - HB0596 compared with HB0596S02 (a) the coordinator;
- 10 - HB0596S01 compared with HB0596S02 (6) (a) A majority of members of the executive committee constitutes a quorum of the executive committee at any meeting, and the action of the majority of members present constitutes the action of the executive committee.
- 18 - HB0596 compared with HB0596S02 (i) Section 63A-3-106;
Section 6.
Section 6 is enacted to read:
35A-16-205.2.
Capacity limit of homeless shelters -- Determination.
(1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules for determining the capacity limit of a homeless shelter.
(2) In determining the capacity limit under Subsection (1), the office shall:
(a) work in conjunction with the state fire marshal, local homeless councils, and a nonprofit organization that develops, holds, and manages high-impact emergency shelter facilities to assess the capacity limit of:
(i) a homeless shelter;
(ii) a temporary winter response shelter, as described in Section 35A-16-502;
(iii) a temporary shelter used during code blue events, as described in Section 35A-16-701;
(iv) a temporary shelter used during code red events, as described in Section 35A-16-1301;
or (v) a homeless resource center or emergency shelter;
(b) consider the location of a homeless shelter;
and (c) consider the potential impacts that an increase in shelter capacity may have on the surrounding community.
(3) No later than 10 days after the day on which a capacity limit is determined under Subsection (1), the office shall notify the applicable municipality of the capacity limit imposed on a homeless shelter located in the municipality.
(4) Notwithstanding any other provisions in this chapter, state funds may not be awarded under this chapter directly to or for the benefit of a homeless shelter located within the state unless the homeless shelter complies with the capacity limits determined by the office under Subsection (1).
(1) - 19 - HB0596 compared with HB0596S02 (a) The office shall report, for the state and for each local homeless council:
- 11 - HB0596S01 compared with HB0596S02 (i) the state's year-to-date progress toward reaching a functional zero level of homelessness for each type of homelessness and subpopulation, including:
- 20 - HB0596 compared with HB0596S02 (a) in the annual report required by Section 35A-16-203;
and - 12 - HB0596S01 compared with HB0596S02 [(b) on or before October 1 of each year, through an oral presentation to the Economic Development and Workforce Services Interim Committee;
(3) - 21 - HB0596 compared with HB0596S02 (a) The Shelter Cities [Advisory Board] Coordinating Council shall appoint, in accordance with this section, one chief executive officer representing a municipality as a member to the board.
- 13 - HB0596S01 compared with HB0596S02 (b) The members of the Shelter Cities [Advisory Board] Coordinating Council shall make an appointment, or fill a vacancy, by a majority vote of all members of the Shelter Cities [Advisory Board] Coordinating Council who are present at the meeting during which an appointment is made.
- 22 - HB0596 compared with HB0596S02 (b) "Homeless services facility" means an eligible shelter under Subsection [35A-16-401(5)(a) or (5) (b)] {35A-16-401(6)(a) } 35A-16-401(5)(a), (b), or {(b)} (c).
- 14 - HB0596S01 compared with HB0596S02 (i) documented damage to or theft of personal property;
(8) - 23 - HB0596 compared with HB0596S02 (a) A business that receives compensation or a loan from the fund shall be in good standing with the State Tax Commission and Department of Commerce.
- 15 - HB0596S01 compared with HB0596S02 (b) The State Tax Commission and Department of Commerce may charge a business described in Subsection (8)(a) a nominal fee to obtain a certificate of good standing to meet the requirements under this section.
and - 24 - HB0596 compared with HB0596S02 (v) criteria prioritizing disbursements in the event of limited funds.
- 16 - HB0596S01 compared with HB0596S02 (14) The office may do any act necessary or convenient to the exercise of the powers granted by this part or reasonably implied from those granted powers, including:
(3){(3) "Congregate shelter" means a facility that provides temporary shelter to individuals in a shared, open space with limited or no privacy.} {[(3){]} {(4)} } "Eligible municipality" means:
(4){[(4){]} {(5)} } "Eligible services" means any activities or services that mitigate the impacts of the location of an eligible shelter, including direct services, public safety services, and emergency services, as further defined by rule made by the office in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(5){[(5){]} {(6)} } "Eligible shelter" means:
- 25 - HB0596 compared with HB0596S02 (i) has the capacity to provide temporary shelter to at least 80 individuals per night, as verified by the office;
and - 17 - HB0596S01 compared with HB0596S02 (iii) is not subject to restrictions that limit the hours, days, weeks, or months of operation;
(i) {(A)} has the capacity to provide temporary shelter to at least 25 individuals per night, as verified by the office;
(ii){[(ii){]} {(B)} } operates year-round;
and (iii){[(iii){]} {(C)} } is not subject to restrictions that limit the hours, days, weeks, or months of operation;[ {[} and] (c) an eligible shelter under Subsection (5)(a) or (b), if the homeless shelter operates for more than 365 continuous days, regardless of whether the homeless shelter is intended to operate as an emergency shelter, as long as the homeless shelter meets the requirements of an eligible shelter defined in Subsection (5)(a) or (b);
and [(c)] (d) for{or} a{(ii) third-tier{is an eligible municipality,shelter aunder Subsection (6)(c), if the homeless shelter that:operates for more than 365 continuous days, regardless of whether the homeless shelter is intended to operate as an emergency shelter, as long as the homeless shelter meets the requirements of an eligible shelter defined in Subsection (6)(a) or (b);
and} {(c)} for a third-tier eligible municipality, a homeless shelter that:
and] [(B) contains beds that are utilized as part of a county's winter response plan under Section 35A-16-502.] - 26 - HB0596 compared with HB0596S02 (i) has the capacity to provide temporary shelter to at least 50 individuals per night, as verified by the office;
(6){[(6){]} {(7)} } "Homeless shelter" means a facility that provides or is proposed to provide temporary shelter to individuals experiencing homelessness.
(7){[(7){]} {(8)} } "Municipality" means a city or town.
(8){(9) "Noncongregate shelter" means a facility in a tier-one or tier-two eligible municipality that provides temporary shelter to individuals in a separate and private unit.} {[(8){]} {(10)} } "Public safety services" means law enforcement, emergency medical services, or fire protection.
(9){[(9){]} {(11)} } "Third-tier eligible municipality" means a municipality that:
and - 18 - HB0596S01 compared with HB0596S02 (b) due to the location of an eligible shelter within the municipality's geographic boundaries, requires eligible services.
{Section 12.
Section 35A-16-402 is amended to read:
} 35A-16-402.
Homeless Shelter Cities Mitigation Restricted Account -- Formula for disbursing account funds to eligible municipalities.
(1) There is created a restricted account within the General Fund known as the Homeless Shelter Cities Mitigation Restricted Account.
(2) The account shall be funded by:
(a) local sales and use tax revenue deposited into the account in accordance with Section 59-12-205;
(b) interest earned on the account;
[and] (c) appropriations made to the account by the Legislature[.] ;
and (d) lease payments deposited into the account in accordance with Section 35A-16-202.
(3) The office shall administer the account.
(4) (a) Subject to appropriations, the office shall annually disburse funds from the account as follows:
(i) 87.5% shall be disbursed to first-tier eligible municipalities that have been approved to receive account funds under Section 35A-16-403, of which:
- 27 - HB0596 compared with HB0596S02 (A) 70% of the amount described in Subsection (4)(a)(i) shall be disbursed proportionately among applicants based on the total number of individuals experiencing homelessness who are served by eligible shelters within each municipality, as determined by the office;
(B) 20% of the amount described in Subsection (4)(a)(i) shall be disbursed proportionately among applicants based on the total number of individuals experiencing homelessness who are served by eligible shelters within each municipality as compared to the total population of the municipality, as determined by the office;
and (C) 10% of the amount described in Subsection (4)(a)(i) shall be disbursed proportionately among applicants based on the total year-round capacity of all eligible shelters within each municipality, as determined by the office;
(ii) 2.5% shall be disbursed to second-tier eligible municipalities that have been approved to receive account funds under Section 35A-16-403, of which:
(A) 70% of the amount described in Subsection (4)(a)(ii) shall be disbursed proportionately among applicants based on the total number of individuals experiencing homelessness who are served by eligible shelters within each municipality, as determined by the office;
(B) 20% of the amount described in Subsection (4)(a)(ii) shall be disbursed proportionately among applicants based on the total number of individuals experiencing homelessness who are served by eligible shelters within each municipality as compared to the total population of the municipality, as determined by the office;
and (C) 10% of the amount described in Subsection (4)(a)(ii) shall be disbursed proportionately among applicants based on the total year-round capacity of all eligible shelters within each municipality, as determined by the office;
and (iii) 10% shall be disbursed to third-tier eligible municipalities that have been approved to receive account funds under Section 35A-16-403, in accordance with a formula established by the office and approved by the board.
(b) In disbursing funds to second-tier municipalities under Subsection (4)(a)(ii), the maximum amount of funds that the office may disburse each year to a single second-tier municipality may not exceed 50% of the total amount of funds disbursed under Subsection (4)(a)(ii).
(c) The office may disburse funds under Subsection (4)(a)(iii) to an authorized provider of a third-tier eligible municipality.
- 28 - HB0596 compared with HB0596S02 (d) The office may disburse funds to a third-tier municipality or an authorized provider under Subsection (4)(a)(iii) regardless of whether the municipality receives funds under Subsection (4)(a) (i) as a first-tier municipality or funds under Subsection (4)(a)(ii) as a second-tier municipality.
(e) If any account funds are available to the office for disbursement under this section after making the disbursements required in Subsection (4)(a), the office may disburse the available account funds to third-tier municipalities that have been approved to receive account funds under Section 35A-16-403.
(f) (i) Notwithstanding any other provision in this section, if an eligible municipality requests account funds under Section 35A-16-403 and the request is denied for the sole reason that the municipality has failed to comply with the requirements of Subsection 35A-16-403(2)(g)(i), the office may disburse the account funds that the municipality would otherwise have received to:
(A) eligible municipalities in accordance with the provisions of this Subsection (4);
or (B) subject to Subsection (4)(f)(ii), the Department of Public Safety.
(ii) (A) The office may not disburse account funds to the Department of Public Safety under Subsection (4) (f)(i) unless the disbursement is recommended and approved by the board.
(B) The Department of Public Safety shall use any account funds received under Subsection (4)(f) (i) to assist in the enforcement of state laws that promote the safety or well-being of individuals experiencing homelessness.
(5) In disbursing account funds to municipalities under Subsection (4), the office may not consider the capacity of an eligible shelter to qualify a municipality for multiple tiers of funding.
(6) The office may use up to 2.75% of any appropriations made to the account by the Legislature to offset the office's administrative expenses under this part.
(7) Subject to appropriations, the lease deposits described in Subsection (2)(d) may only be expended for the costs incurred by the office for the operations and maintenance of a leased space under Section 35A-16-202.
[(7)] (8) In accordance with Section 63J-1-602.1, appropriations from the account are nonlapsing.
[(8)] (9) The office may disburse any uncommitted account funds to municipalities under this section in the following year.
- 29 - HB0596 compared with HB0596S02 (10) The office shall make rules, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to administer this section.
- 1930 - HB0596S01HB0596 compared with HB0596S02 (a) Section 63A-3-106;
{Section 11.13.
- 2031 - HB0596S01HB0596 compared with HB0596S02 (1) "Affected county" means a county of the first, second, third, or fourth class in which a code blue event is anticipated.
(3) "Capacity limit" means a limit as to the number of individuals that a homeless shelter may provide temporary shelter to[to under a conditional use permit.permit] in accordance with Section 35A-16-205.1.
{Section 12.14.
- 2132 - HB0596S01HB0596 compared with HB0596S02 (b) specify the duration of the code blue alert;
- 2233 - HB0596S01HB0596 compared with HB0596S02 (a) the Department of Health and Human Services issues a code blue alert under this section that is terminated before the duration of the code blue alert expires;
(2) (a) Beginning on July 1, 2026, and subject to Subsection (2)(b), the office {shall } may issue a future services payment to each service provider that requests a future services payment, {if } as allowed by the funding source for the contract.
(b) The amount of the future services payment described in Subsection (2)(a), for a given month, shall be {based upon } equal to the service provider's {yearly dollar } total award amount {awarded under the } divided by the term of the service provider's current {year's } contract {divided by 12 } in months.
- 2334 - HB0596S01HB0596 compared with HB0596S02 (b) If the office determines that a {servicer } service provider's actual expenses are less than the amount of the most recent future services payment, the office {shall } may subtract the overpaid amount from the next future services payment to the service provider.
(c) If the service provider's actual expenses are greater than the amount of the most recent future services payment, the office {shall } may add the underpaid amount to the next future services payment to the service provider.
(4) The office {shall } may ensure that an extension of a contract is executed no later than 30 days before the last day on which an existing contract ends.
Section 14.16.
Section 1416 is enacted to read:
(b) (i)"Fiscal "Countyyear" matching funds" means a participating county's appropriations designated and expended for the provisionsstate offiscal homelessyear services described in Subsections (11) and (12) that exceedbegins theon participatingJuly county's1 baselineof spendingeach level in the fiscal year immediatelyand beforeends theon participatingJune county's30 initialof participation in the matchingfollowing program.year.
(ii)(c) "County"Participating matchingcounty" funds"means includesa fundscounty previouslythat recognizedcreates asa qualifying matching funds if the participating county maintainsrestricted atfund leastfor the samepurposes leveldescribed of funding provided by the county in thethis precedingsection. fiscal year.
-(d) 24"Street -medicine" HB0596S01means comparedhealth withcare HB0596S02that (c)is "Fiscalprovided year"by meansa thelicensed statehealth fiscalcare yearprovider, thatwho beginsconducts onpatient Julyvisits 1outside of eacha yearhealth andcare endsfacility, onclinic, Juneor 30shelter ofto thean followingindividual year.experiencing unsheltered homelessness.
(d)(e) "Participating- county"35 means- aHB0596 countycompared thatwith createsHB0596S02 a(i) county"Unsheltered restrictedhomelessness" accountmeans, for thean purposesindividual describedor family, not having a long-term or permanent structure in thiswhich section.to live.
(e) "Street medicine" means health care that is provided by a licensed health care provider, who conducts patient visits outside of a health care facility, clinic, or shelter to an individual experiencing unsheltered homelessness.
(f) (i) "Unsheltered homelessness" means, for an individual or family, not having a long-term or permanent structure in which to live.
(3) TheSubject officeto shallappropriations, have the authorityoffice toshall annually disburse funds from the account as provided in this sectionsection. and as the office determines in rule as described in Subsection (14).
(b) money received from the Cigarette Tax Restricted Account in accordance with Section 59-14-204(6);59-14-204(5) (d);
(5) (a) TheMoney state treasurer shall invest the money in the account accordingshall toearn theinterest. procedures and requirements of Title 51, Chapter 7, State Money Management Act.
(b) InterestAll andinterest otherearned earningson derivedaccount from the money in the account shall be deposited into the account.
(6) The executivefunds directorin may expend up to 10% of the revenuesaccount ofshall thebe account,nonlapsing. including any appropriations to the account, for administrative expenses of the office.
(7) TheTo be eligible for a disbursement of funds inunder thethis accountsection, a participating county shall becreate nonlapsing.a county restricted account:
-(a) 25 - HB0596S01 compared with HB0596S02 (8) To be eligible for areceipt disbursement of fundsstate underfund thisdistributions; section, a participating county shall:
(a)and create(b) ato deposit county restrictedmatching account:funds.
(i)(8) forA receiptparticipating county that receives a disbursement of statefunds fundunder distributions;this section shall:
and(a) (ii)commit intoto whichuse the countyfunds depositsfor matchingthe funds;purposes described in Subsection (10);
(b) provide detailed and accurate reporting on at least an annual basis to the office that describes:
(i) how funds provided to the participating county under this section have been spent by the county;
and (ii) the participating county's progress towards measurable outcome-based benchmarks agreed to by the participating county and the office;
and (c) comply with other requirements as the office determines in rule as described in Subsection (14).
(9) A participating county that receives a disbursement of funds under this section shall:
(a) commit to use the funds for the purposes described in Subsection (11);
(10)(9) No later than August 1 of each year, a participating county that receives funds under this section shall provide the office with an accounting of:
- 36 - HB0596 compared with HB0596S02 (c) the purposes under Subsection (11)(10) for which funds from the county restricted account were expended;
(11)(10) Subjectsubject to appropriation, a participating county that receives funds under this part, may only use the funds for:
(a) Assertivethe Communityoperation Treatmentof: support services;
(b)(i) behavioral health support services for individuals with a historywinter ofoverflow homelessness;shelter;
(ii) a micro shelter community;
or (iii) permanent supportive housing for chronic homelessness;
(b) payment to service providers;
(d) developmentbehavioral andhealth implementationsupport ofservices software for standardizedindividuals screeningwith toolsa tohistory assess areas of strengthhomelessness; and need of people experiencing homelessness, inform decision making regarding resources, service matching, and cross-system data sharing with criminal justice and behavioral health systems;
(e) mobileAssertive crisisCommunity outreachTreatment teams;support services;
(f) themobile operationcrisis of:outreach;
(i)or a(g) microother shelterservices community;the office determines necessary to meet the provisions of homeless services described in this chapter.
-(11) 26(a) -The HB0596S01office comparedshall consult with HB0596S02the (ii)participating on-sitecounty's behavioralgoverning supportbody servicesto anddetermine licensedif clinicaladditional servicesuses forof supportedfunds, livingother programsthan forthe individualsuses withallowed seriousunder mentalSubsection illnesses;(10), are needed for the county.
or(b) (iii)If athe winteroffice overflowand shelter;the county governing body agree to additional uses of the funds, as described in Subsection (11)(a), the county may use the funds for the purposes agreed to for the fiscal year in which the additional use of the funds is approved, (12) (a) A participating county may only be eligible to receive state funds in any given year in an amount equal to the lesser of the amount the participating county:
(g)(i) paymentdeposits toas servicematching providers;funds as described in Subsection (8);
(h)or street(ii) medicine;expends for the previous fiscal year for the eligible uses described in Subsection (10).
or (i) other services the office determines necessary to meet the provisions of homeless services described in this chapter.
(12) (a) The office shall consult with the participating county's governing body to determine if additional uses of funds, other than the uses allowed under Subsection (11), are needed for the county.
(b) If the office and the county governing body agree to additional uses of the funds, as described in Subsection (12)(a), the county may use the funds for the purposes agreed to for the fiscal year in which the additional use of the funds is approved.
(13) (a) A participating county may only be eligible to receive state funds in any given year in an amount equal to the amount the participating county deposits as matching funds as described in Subsection (8).
(c)- (i)37 If- aHB0596 participatingcompared countywith doesHB0596S02 notSection show17. progress towards measurable outcome-based benchmarks, as described in Subsection (8)(b), the participating county may not be eligible to receive funds under this section.
(ii)Section For17 ais participatingenacted county described in Subsection (13)(c)(i), the office, in consultation with the coordinator, may determine what actions the participating county may take to becomeread: eligible to receive funds under this section.
(14) (a) The office may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to implement this part.
- 27 - HB0596S01 compared with HB0596S02 (b) The rules described in Subsection (14)(a) shall include:
(i) application requirements;
(ii) application procedures;
and (iii) procedures for distributing funds to participating counties, including prioritizing disbursements to participating counties within available funds.
Section 15.
Section 15 is enacted to read:
TemporaryCode ShelterRed Expansion 35A-16-1301.
TemporaryDefinitions. shelter expansion -- Definitions -- Requirements -- Mitigation.
(1) As used in this part,part: "municipal consent" means the written approval from a municipality in which a congregate shelter is located to the office and to a service provider for temporary expansion of a congregate shelter's designated bed capacity.
(2)(1) A"Affected servicecounty" providermeans may expand the capacity limit of a congregatecounty shelter up to 135% of the shelter'sfirst, designatedsecond, bedthird, capacityor tofourth provideclass temporaryin shelterwhich toa individualscode experiencingred homelessnessevent if:is anticipated.
(a)(2) the"Applicable servicelocal providerhomeless informscouncil" means the officelocal ofhomeless thecouncil needthat tois temporarilyresponsible expandfor thecoordinating capacityhomeless limitresponse ofwithin thean shelter;affected county.
(b)(3) the"Capacity servicelimit" providermeans requestsa approvallimit fromas to the municipalitynumber inof whichindividuals thethat congregatea homeless shelter ismay locatedprovide temporary shelter to expandunder thea shelter'sconditional capacity;use permit or other restrictions required by law.
(c)(4) the"Code municipalityred inalert" whichmeans a proclamation issued by the congregateDepartment shelterof isHealth locatedand providesHuman municipalServices consentunder Section 35A-16-1302(4) to alert the servicepublic providerof anda thecode office;red event.
and(5) (d)"Code red event" means a weather event in which the congregateNational shelterWeather remainsService predicts temperatures of 110 degrees Fahrenheit or more or any other extreme weather conditions established in compliancerules withmade by the applicableDepartment stateof Health and localHuman buildingServices andunder fireSubsection codes.35A-16-1302(4), to occur in any county of the first, second, third, or fourth class for two hours or longer within the next 24 to 48 hours.
(3)(6) Municipal"Homeless consentshelter" undermeans thisa sectionfacility maythat includeprovides reasonabletemporary conditionsshelter related to publicindividuals safety,experiencing coordination,homelessness. or neighborhood mitigation.
(4)(7) The"Municipality" authorizationmeans provideda undercity this section does not modify any other applicable licensing, health, or safetytown. requirements.
(5)Section A18. tier one shelter city in a city of the first class in a county of the third class:
(a)Section may18 expandis theenacted capacityto limitread: of a congregate shelter, as described in Subsection (2) if local temperatures reach or exceed 105 degrees Fahrenheit;
and35A-16-1302. (b) may not have the shelter city's congregate shelter capacity reduced below the number of approved beds as of January 1, 2026.
-Code 28red -alert HB0596S01-- comparedContent with-- HB0596S02Dissemination (6)-- ForRulemaking. purposes of formula distributions made under this chapter, the number of beds operated under Subsection (2) may be counted as tier three beds.
(7)(1) AdditionalThe bedDepartment capacityof authorizedHealth underand thisHuman sectionServices shallshall: be mitigated using funds appropriated under this chapter as determined in rule made by the office in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(8) (a) Amonitor congregateand shelterevaluate mayforecasts notand operateadvisories atproduced by the expandedNational capacityWeather limitService; described in Subsection (2) after April 30, 2027.
(b) Onissue or after May 1, 2027, a congregatecode shelterred shallalert returnunder tothis thesection congregateif shelter's capacity limit as determined by the congregateDepartment shelter'sof conditionalHealth useand permitHuman unlessServices otherwiseidentifies authorizeda bycode thered relevantevent; municipality.
and (c) disseminate the code red alert to:
(i) the public at large;
(ii) (ii)homeless shelters located within an affected county;
(iii) (iii)local government entities located within an affected county;
(iv) the office;
and - 38 - HB0596 compared with HB0596S02 (v) any other relevant public or private entities that provide services to individuals experiencing homelessness within an affected county.
(2) The code red alert shall:
(a) identify each affected county;
(b) specify the duration of the code red alert;
(c) describe the provisions that take effect for the duration of the code red alert as described in Section 35A-16-1303;
and (d) include the information prepared by the office under Subsection (3).
(3) (a) The office shall prepare and regularly update information to assist individuals experiencing homelessness during a code red event, including:
(i) the location and availability of homeless shelters and other community resources and services for individuals experiencing homelessness;
(ii) information regarding public safety and emergency services;
and (iii) any other information considered relevant by the office.
(b) The office shall submit to the Department of Health and Human Services the information prepared and updated under Subsection (3)(a).
(4) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the Department of Health and Human Services, in coordination with the office, shall make rules to implement this section.
(b) The rules under Subsection (4) shall:
(i) establish any extreme weather conditions that warrant the issuance of a code red alert;
and (ii) establish standards for:
(A) monitoring and evaluating National Weather Service forecasts and advisories to identify code red events;
(B) issuing code red alerts under this section, including the form, content, and dissemination of code red alerts;
(C) the provisions that take effect within an affected county for the duration of a code red alert under Section 35A-16-1303;
and (D) coordinating with the office to receive the information described in Subsection (3).
- 39 - HB0596 compared with HB0596S02 (5) Nothing in this section prohibits a municipality from implementing emergency plans or other measures to assist individuals experiencing homelessness at times when environmental conditions present a substantial threat to the health or safety of individuals experiencing homelessness, if the emergency plans or other measures implemented by the municipality do not conflict with any applicable provisions that take effect during a code red event in accordance with Section 35A-16-1303.
Section 19.
Section 19 is enacted to read:
35A-16-1303.
Provisions in effect for duration of code red alert.
Subject to rules made by the Department of Health and Human Services under Subsection 35A-16-1302(4), the following provisions take effect within an affected county for the duration of a code red alert:
(1) a homeless shelter may expand the homeless shelter's capacity limit by up to 35% to provide temporary shelter to any number of individuals experiencing homelessness, if the homeless shelter is in compliance with the applicable building code and fire code;
(2) a homeless shelter, in coordination with the applicable local homeless council, shall implement expedited intake procedures for individuals experiencing homelessness who request access to the homeless shelter;
(3) a homeless shelter may not deny temporary shelter to any individual experiencing homelessness who requests access to the homeless shelter for temporary shelter unless the homeless shelter is at the capacity limit described in Subsection (1) or if a reasonable individual would conclude that the individual presents a danger to public safety.
(4) any indoor facility owned by a private organization, nonprofit organization, state government entity, or local government entity may be used to provide temporary shelter to individuals experiencing homelessness and is exempt from the licensure requirements of Title 26B, Chapter 2, Licensing and Certifications, for the duration of the code red alert and seven days following the day on which the code red alert ends, if the facility is in compliance with the applicable building code and fire code and the governing body of the organization or the legislative body of the government entity that owns the facility approves the use;
(5) homeless shelters, state and local government entities, and other organizations that provide services to individuals experiencing homelessness shall coordinate street outreach efforts to distribute to individuals experiencing homelessness any available resources for survival in hot weather, including - 40 - HB0596 compared with HB0596S02 water, lightweight and light-colored clothing, a hat, sunscreen, or other items that may protect the individual from heat;
(6) a state or local government entity, including a municipality, law enforcement agency, and local health department, may enforce a camping ordinance but may not seize from individuals experiencing homelessness any personal items for survival in hot weather, including clothing, tents, or other items used for shade;
and (7) a municipality or other local government entity may not enforce any ordinance or policy that limits or restricts the ability for the provisions described in Subsections (1) through (7) to take effect, including local zoning ordinances.
- 29 - HB0596S01 compared with HB0596S02 (B) except as provided in Subsections (10) through (13), 50% of each dollar collected from the sales and use tax authorized by this part within a project area described in a project area plan adopted - 41 - HB0596 compared with HB0596S02 by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, shall be distributed to the military installation development authority created in Section 63H-1-201;
(3) Beginning no sooner than January 1, 2026, and before application of Subsections (2), (4), (5), and (6), and except as provided in Subsections (8) and (9), and as described in Section 63N-3-610.1, beginning the first day of a calendar quarter after the year set in the proposal and after the sales and use tax boundary for a convention center reinvestment zone is established under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, the commission, at least annually, shall transfer an amount equal to 100% of the sales and use tax increment, as defined in Section - 30 - HB0596S01 compared with HB0596S02 63N-3-602, from the sales and use tax imposed under this part on transactions occurring within an established sales and use tax boundary, as defined in Section 63N-3-602, to the entity specified in - 42 - HB0596 compared with HB0596S02 the convention center reinvestment zone proposal submitted[ pursuant to ] in accordance with Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.
(i) (A) "Annual local contribution" means, for a fiscal year beginning on {or after } July 1, 2026, the lesser of $316,250 or an amount equal to 2.93% of the participating local government's tax revenue distribution amount under Subsection (2)(a)(i) for {the } a previous fiscal year.
(B) "Annual local contribution" means, for a fiscal year beginning on or after July 1, 2027, the{(B)} lesser"Annual oflocal {contribution" Ĥ→means, {}for [{[}a {]}fiscal $275,000year ]beginning $500,000on {[{]}or {$500,000}after orJuly an1, amount2027, equal}the tolesser {]}of {}[$275,000 ←Ĥ] }$500,000 [{oror an amount equal to }[2.55%] 2.55%]5% 5%{ Ĥ→ {} {[} {[} {]} 2.55%} of the participating local government's tax revenue distribution amount under Subsection (2)(a)(i) for the previous fiscal year.
- 31 - HB0596S01 compared with HB0596S02 (ii) {[{]} {5%} "Participating local government" means a county or municipality, as defined in Section 10-1-104, that is not an eligible municipality certified in accordance with Section 35A-16-404.]}35A-16-404. (b) {{ ←Ĥ } of } For revenue collected from the {participating local government's } tax authorized by this part that is distributed on or after January 1, 2019, the commission, before making a tax revenue distribution {amount } under Subsection (2)(a)(i) {for the previous fiscal year.} to a participating local government, shall:
{(ii)}- (i)43 {"Participating- localHB0596 government"compared meanswith }HB0596S02 adjust(b) aFor {countyrevenue orcollected municipality,from asthe definedtax inauthorized Sectionby 10-1-104,this part that is notdistributed anon eligibleor municipalityafter certifiedJanuary in1, accordance2019, withthe Sectioncommission, 35A-16-404.}before participatingmaking locala government's tax revenue distribution under Subsection (2)(a)(2)(a)(i) (i)to by:a participating local government, shall:
{(b)}(i) (A)adjust {For revenue collected from } subtracting an amount equal to one-twelfth of the {tax authorized by this part that is distributed on or after January 1, 2019, } annual local contribution for each participating local government from the {commission, before making a } participating local government's tax revenue distribution {underunder Subsection (2)(a)(i) toby: a participating local government, shall:} ;
and(A) {(i)}subtracting (B) {adjust a } if applicable, reducing the amount described in Subsection (5)(b)(i)(A) by an amount equal to one-twelfth of $250the forannual eachlocal bedcontribution thatfor iseach availableparticipating atlocal allgovernment homelessfrom shelters located within the boundaries of the participating local {government'sgovernment's tax revenue distributiondistribution; under Subsection (2)(a)(i) } government, as reported to the commission by{:} the Office of Homeless Services in accordance with Section 35A-16-405;
and {(A)}(B) (ii)if {subtractingapplicable, reducing the amount described in Subsection (5)(b)(i)(A) by an amount equal to one-twelfthone- twelfth of the$250 annualfor localeach contributionbed forthat eachis participatingavailable localat governmentall fromhomeless shelters located within the boundaries of the participating local government'sgovernment, taxas revenuereported distribution;to the commission by the Office of Homeless Services in accordance with Section 35A-16-405;
and}and (ii) deposit the resulting amount described in Subsection (5)(b)(i) into the Homeless Shelter Cities Mitigation Restricted Account created in Section 35A-16-402.
{(B)} (c) {if applicable, reducing the amount } For a participating local government that qualifies to receive a distribution described in Subsection {(5)(b)(i)(A) by an amount equal to one-twelfth of $250 for each bed that is available at all homeless shelters located within } (4), the {boundaries of } commission shall apply the provisions of this Subsection (5) after the {participating local government, as reported to the } commission {by } applies the {Officeprovisions of HomelessSubsections Services(3) inand accordance(4). with Section 35A-16-405;
}(6) provisions(a) ofAs Subsectionsused (3)in and(4).this Subsection (6):
-(i) 32"Annual -dedicated HB0596S01sand comparedand withgravel HB0596S02sales {(ii)}tax (6)revenue" (a)means {depositan amount equal to the resultingtotal amountrevenue an establishment described in }NAICS AsCode used327320, inReady-Mix thisConcrete SubsectionManufacturing, {(5)(b)(i)of intothe 2022 North American Industry Classification System of the Homelessfederal ShelterExecutive CitiesOffice Mitigationof Restrictedthe AccountPresident, createdOffice inof SectionManagement 35A-16-402.}and (6):Budget, collects and remits under this part for a calendar year.
{(c)}(ii) (i)"Sand {For a participating local government that qualifies } "Annual dedicated sand and gravelgravel" sales tax revenue" means ansand, amountgravel, equalor to {receive a distributioncombination } the total revenue an establishment described in {Subsection (4), the commission shall apply } NAICS Code 327320, Ready-Mix Concrete Manufacturing, of thesand 2022 North American Industry Classification System of the {provisions } federal Executive Office of {this Subsection (5) after } the {commission applies the provisions of Subsections (3) } President, Office of Management and Budget,gravel. collects and {(4)} remits under this part for a calendar year.
{(6)}(iii) (ii) {(a)} As used in this Subsection (6):} "Sand and gravel"gravel meansextraction sand,site" gravel,means or a combinationpit, ofquarry, sandor anddeposit gravel.that:
{(i)}(A) (iii)contains {"Annual dedicated sand } "Sand and gravelgravel; {sales tax revenue} extraction site" means {an amount equal to the total revenue an establishment described in NAICS Code 327320} a pit, {Ready-Mix Concrete Manufacturing, of the 2022 North American Industry Classification System of the federal Executive Office of the President, Office of Management and Budget, collects and remits under this part for a calendar year.} quarry, or deposit that:
{(ii)} (A) {"Sand } contains sand and gravel{"(B) meansis sand,assessed gravel,by orthe acommission combinationin ofaccordance sandwith andSection gravel.}59-2-201. ;
and(iv) {(iii)}"Ton" (B) {"Sand and gravel extraction site" means a pit,short quarry,ton orof deposit2,000 that:}pounds. is assessed by the commission in accordance with Section 59-2-201.
{(A)}(v) (iv)"Tonnage {containsratio" sandmeans andthe gravel;ratio of:
and}(A) "Ton"the meanstotal amount of sand and gravel, measured in tons, sold during a shortcalendar tonyear offrom 2,000all pounds.sand and gravel extraction sites located within a county, city, or town;
{(B)}to (v)- {is44 assessed- byHB0596 }compared "Tonnagewith ratio"HB0596S02 means(B) the {commissiontotal amount of sand and gravel, measured in accordancetons, withsold Sectionduring 59-2-201.}the ratiosame of:calendar year from sand and gravel extraction sites statewide.
{(iv)}(b) (A)For {"Ton"purposes meansof }calculating the totalratio amountdescribed of sand and gravel, measured in tons,Subsection sold(6)(a)(v), duringthe acommission calendarshall: year from all sand and gravel extraction sites located within a {short ton of 2,000 pounds.} county, city, or town;
to(i) {(v)}use (B)the {"Tonnagegross ratio"sales meansdata }provided to the {ratiocommission of:}as totalpart amount of sand and gravel, measured in tons, sold during the samecommission's calendarproperty yeartax fromvaluation sandprocess; and gravel extraction sites statewide.
-and 33(ii) -if HB0596S01a comparedsand withand HB0596S02gravel {(A)}extraction (b)site {theoperates totalas amounta ofunit sandacross andmunicipal gravel,or measuredcounty }lines, Forapportion purposesthe ofreported calculatingtonnage among the ratiocounties, describedcities, inor {tons,towns soldbased duringon athe calendarpercentage yearof fromthe all sand and gravel extraction sitessite located withinin aeach county, city}city, Subsectionor (6)(a)(v),town, {oras town;approximated by the commission.
to}(c) (i) Each July, the commission shall:shall distribute from total collections under this part an amount equal to the annual dedicated sand and gravel sales tax revenue for the preceding calendar year to each county, city, or town in the same proportion as the county's, city's, or town's tonnage ratio for the preceding calendar year.
{(B)}(ii) (i)The {thecommission totalshall amountensure ofthat sandthe andrevenue gravel,distributed measuredunder inthis tons,Subsection sold(6)(c) duringis }drawn usefrom theeach grossjurisdiction's salescollections datain providedproportion to the commissionjurisdiction's asshare part of thetotal {samecollections calendarfor yearthe frompreceding sand12-month andperiod. gravel extraction sites statewide.} commission's property tax valuation process;
and(d) {(b)}A (ii)county, {Forcity, purposes } if a sand and gravel extraction site operates as a unit across municipal or countytown lines,shall apportionuse therevenue reported tonnage among the counties, cities, or towns based on the percentage of {calculating } the {ratio described } sand and gravel extraction site located in {SubsectionSubsection (6)(a)(v)}(6)(c) eachfor county,class city,B or town,class asC approximatedroads. by the commission {shall:} .
{(i)}(7) (c)(a) (i)Population {usefigures }for Eachpurposes July,of thethis {grosssection sales data provided to the commission } commission shall distributebe frombased totalon, collections under this part an amount equal to the annualextent dedicatednot sandotherwise andrequired gravelby salesfederal taxlaw: revenue for the preceding calendar year to each county, city, or town in the same proportion as {part of } the county's, city's, or town's tonnage ratio for the {commission's property tax valuation process;
and}(i) precedingthe calendarmost year.recent estimate from the Utah Population Committee created in Section 63C-20-103;
(ii) {if a sand and gravel extraction site operates as a unit across municipal or county(ii) lines,if apportion } The commission shall ensure that the {reportedUtah tonnagePopulation amongCommittee theestimate counties, cities, or towns based on } revenue distributed under this Subsection (6)(c) is drawnnot fromavailable for each jurisdiction'smunicipality collectionsand inunincorporated proportionarea, to the {percentageadjusted }sub-county jurisdiction'spopulation shareestimate ofprovided {the sand and gravel extraction site located in each county, city, or town, as approximated by the commission}Utah totalPopulation collectionsCommittee forin theaccordance precedingwith 12-monthSection period.63C-20-104.
{(c)}(b) (d)The {(i)}population Eachof July,a thecounty commissionfor shallpurposes distributeof from total collections under this partsection an amount equal to the annual dedicated sand and gravel sales tax revenue for the preceding calendar year to each } A county, city, or town shall usebe revenuedetermined describedonly infrom {the same proportion as the county's,unincorporated city's,area }of Subsection (6)(c) for class B or {town's tonnage ratio for the precedingcounty. calendar year} class C roads.
{(ii)}(8) (7) (a) {TheAs commissionused } Population figures for purposes of this section shall {ensure that the revenue distributed under this Subsection (6)(c) is drawn from each jurisdiction's collections in proportionSubsections -(8) 34and -(9): HB0596S01 compared with HB0596S02 to the jurisdiction's share of total collections for } be based on, to the {preceding 12-month period.} extent not otherwise required by federal law:
{(d)} (i) {A"Applicable county,percentage" city,means, orfor towna shallconvention usecenter revenuereinvestment describedzone increated Subsectionunder (6)(c)Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, for classsales Boccurring }within - 45 - HB0596 compared with HB0596S02 the mostqualified recentdevelopment estimatezone fromdescribed in Subsection (8)(a)(ii), 100% of the Utahsales Populationand Committeeuse createdtax increment, as that term is defined in Section 63C-20-103;63N-3-602, from the sales and use tax:
or(A) {classimposed Cby roads.}a {(7)}city (ii)of {(a)} if the Utahfirst Populationclass {figuresin fora purposescounty of this section shall be based on, to } Committee estimate is not available for each municipality and unincorporated area, the {extentfirst notclass otherwiseunder requiredthis bypart; federal law:} adjusted sub-county population estimate provided by the Utah Population Committee in accordance with Section 63C-20-104.
{(i)}(B) (b)imposed {theby mosta recentcity estimateof fromthe }first Theclass populationin of a county for purposes of this section shall be determined only from the unincorporatedfirst areaclass ofunder the {Utah Population Committee created in Section 63C-20-103;59-12-402.1;
or}(C) county.imposed by a county of the first class under Section 59-12-1102;
{(ii)} (8) (a) {if the Utah Population Committee estimate is not available for each municipality and unincorporated(D) area,imposed theby adjusteda sub-countycounty populationof estimate provided by the Utahfirst Populationclass Committeeunder inPart accordance22, withLocal SectionOption 63C-20-104.}Sales Asand usedUse inTaxes Subsectionsfor (8)Transportation andAct. (9):
{(b)}(ii) (i)"Qualified {Thedevelopment populationzone" ofmeans athe countysales }and "Applicableuse percentage"tax means,boundary forof a convention center reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act,Act. for {purposes of this section shall be determined only from } sales occurring within the {unincorporated area } qualified development zone described in Subsection (8)(a)(ii), 100% of the {county.} sales and use tax increment, as that term is defined in Section 63N-3-602, from the sales and use tax:
{(8)}(iii) (A)"Qualifying {(a)}construction Asmaterials" usedmeans }construction imposedmaterials bythat aare: city of the first class in {Subsections (8) and (9):} a county of the first class under this part;
{(i)}(A) (B)delivered {"Applicableto percentage" means, for } imposed by a {conventiondelivery centeroutlet reinvestment zone created under Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act, for sales occurring within thea qualified development zonezone; described } city of the first class in {Subsection (8)(a)(ii), 100% } a county of the {sales and use tax increment, as that - 35 - HB0596S01 compared with HB0596S02 term is defined in Section 63N-3-602, from the sales and use tax:} first class under Section 59-12-402.1;
{(A)}and (C)(B) imposedintended byto abe citypermanently ofattached theto firstreal classproperty inwithin a county of the firstqualified classdevelopment underzone. {Section 59-12-1102} this part;
{and}(b) {(B)}For (D) imposed by a citysale of thequalifying firstconstruction classmaterials, inthe acommission countyshall ofdistribute the firstproduct classcalculated underin {PartSubsection 22,(8)(c) Localto Optiona Salesqualified anddevelopment Usezone Taxesif forthe Transportationseller Act.}of Sectionthe 59-12-402.1;construction materials:
{(C)}(i) (ii)establishes {imposed by a countydelivery ofoutlet }with "Qualifiedthe developmentcommission zone"within means the {firstqualified classdevelopment }zone; sales and use tax boundary of a convention center reinvestment zone created under {Section 59-12-1102;
and}(ii) Titlereports 63N,the Chaptersales 3,of Partthe 6,construction Housingmaterials andto Transitthe Reinvestmentdelivery Zoneoutlet Act.described in Subsection (8)(b)(i);
{(D)}and (iii) {imposeddoes bynot areport countythe sales of the first class under Part 22, Local Option Sales and Use Taxes for Transportation Act.} "Qualifying construction materials"materials meanson constructiona materialssimplified thatelectronic are:return.
{(ii)}(c) (A)For {"Qualified } delivered to a delivery outlet within a qualified development zone{" means the salespurposes and use tax boundary of aSubsection convention(8)(b), centerthe reinvestmentproduct zoneis createdequal underto: Title 63N, Chapter 3, Part 6, Housing and Transit Reinvestment Zone Act.} ;
and(i) {(iii)}the (B)sales {"Qualifyingprice constructionor materials"purchase meansprice constructionof materials that are:} intended to be permanently attached to real property within the qualifiedqualifying developmentconstruction zone.materials;
{(A)}and (b)(ii) {delivered } For a sale of qualifying construction materials, the commissionapplicable shallpercentage. distribute the product calculated in Subsection (8)(c) to a {delivery outlet within a } qualified development zone{;
and}(9) if(a) theAs sellerused ofin thethis constructionSubsection materials:(9), "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J, or a substantially similar form as designated by the commission.
{(B)}(b) (i)Revenue {intendedgenerated tofrom bethe permanentlyapplicable attachedpercentage toby reala propertySchedule }J establishessale within a deliveryqualified outletdevelopment withzone shall be distributed into the commissionjurisdiction withinthat would have received the revenue in the absence of the qualified development zone{.}zone. ;
{(b)}(10) (ii)(a) {ForAs aused sale of qualifying } reports the sales of the construction materials{, the commission shall distribute the product calculated } to the delivery outlet described in this Subsection {(8)(c)(10): to a qualified development zone if the seller of the construction materials:} (8)(b)(i);
and- {(i)}46 (iii)- {establishesHB0596 acompared delivery outlet with }HB0596S02 does(i) not"Applicable reportpercentage" themeans: {commission within } sales of the {qualified development zone;} construction materials on a simplified electronic return.
{(ii)}(A) (c)for {reportsa }project Forarea adopted by the {salesmilitary ofinstallation thedevelopment constructionauthority materialsunder }Title purposes63H, ofChapter Subsection1, (8)(b),Military theInstallation productDevelopment isAuthority equalAct, tofor {thesales deliveryoccurring outletwithin a qualified development zone described in Subsection (8)(b)(i);(10)(a)(iii)(A):
and}(I) :50% of the revenue from the sales and use tax imposed under this part;
{(iii)}(II) (i)100% {doesof notthe reportrevenue }from the sales priceand oruse purchasetax priceimposed ofby the qualifyingmilitary constructioninstallation materialsdevelopment {onauthority aunder simplifiedSection electronic59-12-401; return.} ;
and {(c)}(III) (ii)100% {Forof the purposesrevenue offrom Subsectionthe (8)(b),sales theand productuse istax equalimposed to:}by the applicablemilitary percentage.installation development authority under Section 59-12-402;
-and 36(B) -for HB0596S01a comparedproject witharea HB0596S02under {(i)}Title (9)11, (a)Chapter {the58, Utah Inland Port Authority Act, for sales priceoccurring orwithin purchasea pricequalified development zone described in Subsection (10)(a)(iii)(B), 20% of the qualifyingrevenue constructionfrom materials;the sales and use tax under this part;
and}(C) Asfor usedthe inlake thisauthority Subsectionboundary, (9),as "Scheduledefined Jin sale"Section means11-65-101, afor salesales reportedoccurring onwithin Statethe Taxqualified Commissiondevelopment Formzone TC-62M,described Schedulein J,Subsection or(10)(a)(ii)(C), a50% substantiallyof similarthe formrevenue asfrom designatedthe bysales theand commission.use tax under this part;
{(ii)}(D) (b)for Revenuethe generatedUtah fromFairpark theArea applicableInvestment percentagebyand aRestoration ScheduleDistrict, Jcreated salein Section 11-70-201, for sales occurring within athe qualified development zone shalldescribed bein distributedSubsection into(10)(a)(iii)(D), 100% of the jurisdictionrevenue thatfrom wouldthe havesales receivedand theuse revenuetax inimposed by the absenceUtah ofFairpark theArea qualifiedInvestment developmentand zone.Restoration District under Sections 59-12-401 and 59-12-402;
{(9)}(E) (10)for (a)an Aseligible usedbasic inspecial thisdistrict Subsectioncreated {(10):}under (9),Title "Schedule17B, JChapter sale"1, meansPart a14, saleBasic reportedSpecial onDistrict, Statefor Taxsales Commissionoccurring Formwithin TC-62M,a Schedulequalified J,development orzone adescribed substantiallyin similarSubsection form(10)(a)(iii) as(E), designated50% byof the commission.revenue from the sales and use tax imposed under this part;
{(b)}(ii) (i)"Eligible {Revenuebasic generatedspecial fromdistrict" themeans applicable } "Applicable percentage {by a Schedule J sale within a qualified development zone shall be distributed into the jurisdictionsame as that wouldterm haveis receiveddefined the revenue in theSection absence17B-1-1405. of the qualified development zone.} " means:
{(10)}(iii) (A)"Qualified {(a)}development Aszone" usedmeans } for a project area adopted by the military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act, for sales occurringand withinuse atax qualifiedboundary developmentof: zone described in {this } Subsection {(10)} (10)(a)(iii)(A):
{(i)}(A) (I)a {"Applicableproject percentage"area means:}adopted 50%by of the revenuemilitary frominstallation thedevelopment salesauthority andunder useTitle tax63H, imposedChapter under1, thisMilitary part;Installation Development Authority Act;
{(A)}(B) (II) {for a project area adopted } 100% of the revenue from the sales and use tax imposed by the military installation development authority under {TitleTitle 63H,11, Chapter 1,58, MilitaryUtah InstallationInland DevelopmentPort Authority Act,Act; for sales occurring within a qualified development zone described in Subsection (10)(a)(iii)(A):} Section 59-12-401;
and(C) {(I)} (III) {50} 100% of the revenuelake from the sales and use tax imposed by the military installation development authority underboundary, {thisas part;}defined in Section 59-12-402;11-65-101;
and(D) {(II)}the (B) {100} for a project area under Title 11, Chapter 58, Utah InlandFairpark PortInvestment Authorityand Act,Restoration forDistrict, salescreated occurring within a qualified development zone described in SubsectionSection (10)(a)(iii)(B),11-70-201; 20% of the revenue from the sales and use tax {imposed by the military installation development authority } under {Section 59-12-401;
and}or this(E) part;the area within the boundary of an eligible basic special district, and if applicable, the boundary of a public infrastructure district created by the basic special district;
- 3747 - HB0596S01HB0596 compared with HB0596S02 {(III)}(iv) (C)"Qualifying {100}construction formaterials" themeans lakeconstruction authoritymaterials boundary,that asare: defined in Section 11-65-101, for sales occurring within the qualified development zone described in Subsection (10)(a)(ii)(C), 50% of the revenue from the sales and use tax {imposed by the military installation development authority } under {Section 59-12-402} this part;
{and}(A) {(B)}delivered (D)to for {the Utah Fairpark Area Investment and Restoration District} a projectdelivery areaoutlet under Title 11, {created in Section 11-70-201} Chapter 58, Utah Inland Port Authority Act, for sales occurring within {the } a qualified development zonezone; described in Subsection {(10)(a)(iii)(D)} (10)(a)(iii) (B), {100} 20% of the revenue from the sales and use tax {imposed by the Utah Fairpark Area Investment and Restoration District } under {Sections 59-12-401 and 59-12-402} this part;
{(C)}and (E)(B) forintended {anto eligiblebe basicpermanently specialattached districtto createdreal underproperty Title 17B, Chapter 1, Part 14} the lake authority boundary, as defined in Section 11-65-101, {Basic Special District, } for sales occurring within {a } the qualified development zonezone. described in Subsection {(10)(a)(iii)(E)} (10)(a)(ii)(C), 50% of the revenue from the sales and use tax {imposed } under this part;
{(D)}(b) (ii)For {fora }sale "Eligibleof basicqualifying specialconstruction district"materials, means the {Utahcommission Fairparkshall Areadistribute Investmentthe andproduct Restorationcalculated District, created } same as that term is defined in SectionSubsection {11-70-201,(10)(c) forto salesa occurring within the qualified development zone describedif inthe Subsectionseller (10)(a)(iii)(D), 100% of the revenueconstruction frommaterials: the sales and use tax imposed by the Utah Fairpark Area Investment and Restoration District under Sections 59-12-401 and 59-12-402;
}(i) 17B-1-1405.establishes a delivery outlet with the commission within the qualified development zone;
{(E)}(ii) (iii)reports {forthe an eligible basic special district created under Title 17B, Chapter 1, Part 14, Basic Special District, for sales occurring within a qualified } "Qualified development zone {described in Subsection (10)(a)(iii)(E), 50% of the revenueconstruction frommaterials }to " means the salesdelivery andoutlet usedescribed taxin {imposedSubsection under(10)(b) this(i); part;
}and boundary(iii) of:does not report the sales of the construction materials on a simplified electronic return;
{(ii)}or (A)(c) {"EligibleFor basicthe specialpurposes district"of meansSubsection }(10)(b), a project area adopted by the {sameproduct as that term is definedequal into: Section 17B-1-1405.} military installation development authority under Title 63H, Chapter 1, Military Installation Development Authority Act;
{(iii)}(i) (B) {"Qualified development zone" means the sales andprice useor taxpurchase boundaryprice of:}of athe projectqualifying areaconstruction undermaterials; Title 11, Chapter 58, Utah Inland Port Authority Act;
{(A)}and (C)(ii) {a project area adopted by } the {militaryapplicable installationpercentage. development authority under Title 63H} lake authority boundary, {Chapter 1, Military Installation Development Authority Act} as defined in Section 11-65-101;
-(11) 38(a) -As HB0596S01used compared with HB0596S02 {(B)} (D) {a project area under Title 11, Chapter 58, Utah Inland Port Authority Act;} the Utah Fairpark Investment and Restoration District, created in Sectionthis 11-70-201;Subsection (11):
or(i) {(C)}"Applicable (E)percentage" themeans {area within the }same lakeas authoritythat boundaryterm {ofis an eligible basic special district} , {and if applicable, the boundary of a public infrastructure district created by the basic special district} as defined in SectionSubsection 11-65-101;(10).
{(D)}(ii) (iv)"Qualified {thedevelopment Utahzone" Fairparkmeans Investmentthe andsame Restorationas District,that createdterm is defined in SectionSubsection 11-70-201;(10).
or}(iii) "Qualifying"Schedule constructionJ materials"sale" means constructiona materialssale thatreported are:on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission.
{(E)}(b) (A)Revenue {thegenerated areafrom within the boundaryapplicable ofpercentage an eligible basic special district, and if applicable, the boundary of a public infrastructure district created by the basic special district} delivered to a deliverySchedule outletJ sale within a qualified development zone;andzone {(iv)}shall (B)be {distributed "Qualifyingto constructionthe materials"jurisdiction means construction materials that are:}would intendedhave toreceived bethe permanentlyrevenue attachedin tothe realabsence propertyof within the qualified development zone.
{(A)}(12) (b)(a) {deliveredAs }used For a sale of qualifying construction materials, the commission shall distribute the product calculated in this Subsection (10)(c)(12): to a {delivery outlet within a } qualified development zone{;
and}(i) if"Applicable thepercentage" sellermeans, offor a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within the constructionqualified materials:development zone described in Subsection (12)(a)(ii):
{(B)}(A) (i)50% {intendedof tothe besales permanentlyand attacheduse totax realincrement, propertyas }that establishesterm ais deliverydefined outletin withSection 63N-3-601, from the commissionsales withinand theuse qualifiedtax developmentimposed zone{.}under ;this part;
{(b)}(B) (ii)100% {For a sale of qualifyingthe }revenue reportsfrom the sales ofand theuse constructiontax materials{,imposed theby commission shall distribute the productcreating calculatedentity }of toa themajor deliverysporting outletevent describedvenue in Subsection {(10)(c) to a qualified development zone ifunder theSection seller59-12-401; of the construction materials:} (10)(b)(i);
and {(i)}- (iii)48 {establishes- aHB0596 deliverycompared outlet with }HB0596S02 does(C) not100% reportof the {commissionrevenue withinfrom }the sales ofand theuse {qualifiedtax developmentimposed zone}by construction materials on a simplified electronic return;or {(ii)} (c) {reports } For the {salescreating ofentity the construction materials } purposes of Subsectiona (10)(b),major thesporting productevent isvenue equalzone tounder {theSection delivery59-12-402. outlet described in Subsection (10)(b)(i);
and}(ii) :"Qualified development zone" means the sales and use tax boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.
{(iii)}(iii) (i)"Qualifying {doesconstruction notmaterials" reportmeans } the sales price or purchase price of the qualifying construction materials {onthat aare: simplified electronic return} ;
{or}(A) anddelivered {(c)}to (ii)a {Fordelivery theoutlet purposeswithin ofa Subsectionqualified (10)(b),development thezone; product is equal to:} the applicable percentage.
{(i)}and (11)(B) (a)intended {theto salesbe pricepermanently orattached purchaseto pricereal ofproperty within the qualifyingqualified constructiondevelopment materials;zone.
and}(b) AsFor useda insale thisof qualifying construction materials, the commission shall distribute the product calculated in Subsection (11):(12)(c) to the creating entity of a qualified development zone if the seller of the construction materials:
-(i) 39establishes -a HB0596S01delivery comparedoutlet with HB0596S02the {(ii)}commission (i)within {the applicable percentage} "Applicable percentage" means the samequalified asdevelopment thatzone; term is defined in Subsection (10).
{(11)} (ii) {(a)}reports Asthe usedsales inof thisthe }construction "Qualifiedmaterials developmentto zone" means the samedelivery asoutlet thatdescribed term is defined in Subsection {(11):}(12)(b) (10).(i);
{(i)}and (iii) {"Applicabledoes percentage}not "Schedulereport Jthe sale"sales meansof athe saleconstruction reportedmaterials on State Tax Commission Form TC-62M, Schedule J or a substantiallysimplified similarelectronic formreturn; as designated by the {same as that term is defined in Subsection (10)} commission.
{(ii)}or (b)(c) {"QualifiedFor } Revenue generated from the applicablepurposes percentageof bySubsection a(12)(b), Schedule J sale within a qualified development zone{" means } shall be distributed to the {sameproduct as } jurisdiction that {term is definedequal into: Subsection (10)} would have received the revenue in the absence of the qualified development zone.
{(iii)}(i) (12)the (a)sales {"Scheduleprice J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or apurchase substantiallyprice similarof form as designated by the commission.}qualifying Asconstruction usedmaterials; in this Subsection (12):
{(b)}and (i)(ii) {Revenue generated from the applicable }percentage. "Applicable percentage {by } " means, for a {Schedule J sale } major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within {a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of } the qualified development zone{.} described in Subsection (12)(a)(ii):
{(12)}(13) (A)(a) {(a)} As used } 50% of the sales and use tax increment, as that term is defined in Section 63N-3-601, from the sales and use tax imposed under this {SubsectionSubsection (12):}(13): part;
{(i)}(i) (B)"Applicable {"Applicable percentage" means,means for } 100% of the revenuesame fromas thethat salesterm andis usedefined tax imposed by the creating entity of a major sporting event venue zone {created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act, for sales occurring within the qualified development zone described in Subsection (12)(a)(ii):}(12). under Section 59-12-401;
and(ii) {(A)}"Qualified (C)development {50}zone" 100%means of the {salessame and use tax increment, as that term is defined in SectionSubsection 63N-3-601,(12). } revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under {this part;} Section 59-12-402.
-(iii) 40"Schedule -J HB0596S01sale" comparedmeans witha HB0596S02sale {(B)}reported (ii)on {100%State ofTax theCommission revenueForm fromTC-62M, }Schedule "QualifiedJ developmentor zone"a meanssubstantially thesimilar salesform andas usedesignated tax {imposed by the creatingcommission. entity } boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under {Section 59-12-401;
and}(b) TitleRevenue 63N,generated Chapterfrom 3,the Partapplicable 17,percentage Majorby Sportinga EventSchedule VenueJ Zonesale Act.within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.
{(C)}{Section (iii)21. {100% of the revenue from the sales and use tax imposed by the creating entity of a major sporting event venue zone under Section 59-12-402.} "Qualifying construction materials" means construction materials that are:
{(ii)} (A) {"Qualified } delivered to a delivery outlet within a qualified development zone{" means the sales } ;
and {use tax boundary, as described in Section 63N-3-1710, of a major sporting event venue zone created under Title 63N, Chapter 3, Part 17, Major Sporting Event Venue Zone Act.} {(iii)} (B) {"Qualifying construction materials" means construction materials that are:} intended to be permanently attached to real property within the qualified development zone.
{(A)} (b) {delivered } For a sale of qualifying construction materials, the commission shall distribute the product calculated in Subsection (12)(c) to the creating entity of a {delivery outlet within a } qualified development zone{;
and} if the seller of the construction materials:
{(B)} (i) {intended to be permanently attached to real property } establishes a delivery outlet with the commission within the qualified development zone{.} ;
{(b)} (ii) {For a sale of qualifying } reports the sales of the construction materials{, the commission shall distribute the product calculated } to the delivery outlet described in Subsection {(12)(c) to the creating entity of a qualified development zone if the seller of the construction materials:} (12)(b) (i);
and {(i)} (iii) {establishes a delivery outlet with } does not report the {commission within } sales of the {qualified development zone} construction materials on a simplified electronic return;or {(ii)} (c) {reports } For the {sales of the construction materials } purposes of Subsection (12)(b), the product is equal to {the delivery outlet described in Subsection (12)(b)(i);
and} :
{(iii)} (i) {does not report } the sales price or purchase price of the qualifying construction materials {on a simplified electronic return} ;
{or} and {(c)} (ii) {For the purposes of Subsection (12)(b), the product is equal to:} the applicable percentage.
{(i)} (13) - 41 - HB0596S01 compared with HB0596S02 (a) {the sales price or purchase price of the qualifying construction materials;
and} As used in this Subsection (13):
{(ii)} (i) {the applicable percentage} "Applicable percentage" means the same as that term is defined in Subsection (12).
{(13)} (ii) {(a)} As used in this } "Qualified development zone" means the same as that term is defined in Subsection {(13):} (12).
{(i)} (iii) {"Applicable percentage} "Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the {same as that term is defined in Subsection (12)} commission.
{(ii)} (b) {"Qualified } Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone{" means } shall be distributed to the {same as } jurisdiction that {term is defined in Subsection (12)} would have received the revenue in the absence of the qualified development zone.
(iii) {"Schedule J sale" means a sale reported on State Tax Commission Form TC-62M, Schedule J or a substantially similar form as designated by the commission.} {(b)} Revenue generated from the applicable percentage by a Schedule J sale within a qualified development zone shall be distributed to the jurisdiction that would have received the revenue in the absence of the qualified development zone.} {Section 17.
- 49 - HB0596 compared with HB0596S02 (1) Except for cigarettes described under Subsection 59-14-210(3), there is levied a tax upon the sale, use, storage, or distribution of cigarettes in the state.
- 42 - HB0596S01 compared with HB0596S02 (3) Except as otherwise provided under this chapter, the tax levied under Subsection (1) shall be paid by any person who is the manufacturer, jobber, importer, distributor, wholesaler, retailer, user, or consumer.
(d) InFor determininga howfiscal year beginning on or after July 1, 2026, and subject to appropriateappropriation by the Legislature, the Division of Finance shall deposit revenue depositedgenerated intofrom the Cigarettetax Taximposed Restrictedby Accountthis part that is notin otherwise- appropriated50 under- SubsectionHB0596 (5)(c),compared thewith LegislatureHB0596S02 shallexcess giveof particular$48,900,000 consideration to enhancingthe MedicaidHomeless providerServices reimbursementRestricted ratesAccount andto medicalbe coverageexpended for thepurposes uninsured.described in Section 35A-16-1201.
(6)[(d)] For(e) aIn fiscaldetermining yearhow beginning on or after July 1, 2026, and subject to appropriationappropriate byrevenue thedeposited Legislature,into the DivisionCigarette ofTax FinanceRestricted shallAccount depositthat revenueis generatednot fromotherwise theappropriated taxunder imposedSubsection by(5)(c), thisthe partLegislature thatshall isgive inparticular excessconsideration of $48,900,000 to theenhancing HomelessMedicaid Servicesprovider Restrictedreimbursement Accountrates toand bemedical expendedcoverage for purposesthe describeduninsured. in Section 35A-16-1201.
- 43 - HB0596S01 compared with HB0596S02 63A-5b-902.
- 51 - HB0596 compared with HB0596S02 63I-2-235.
{Section 20.23.
- 44 - HB0596S01 compared with HB0596S02 (1) The Native American Repatriation Restricted Account created in Section 9-9-407.
- 52 - HB0596 compared with HB0596S02 (19) Money received by the Utah State Office of Rehabilitation for the sale of certain products or services, as provided in Section 35A-13-202.
- 45 - HB0596S01 compared with HB0596S02 [(23)] (24) The Oil and Gas Conservation Account created in Section 40-6-14.5.
- 53 - HB0596 compared with HB0596S02 [(39)] (40) Certain fines collected by the Division of Professional Licensing for violation of unlawful or unprofessional conduct that are used for education and enforcement purposes, as provided in Section 58-17b-505.
- 46 - HB0596S01 compared with HB0596S02 [(42)] (43) Funds collected from a surcharge fee to provide certain licensees with access to an electronic reference library, as provided in Section 58-56-3.5.
- 54 - HB0596 compared with HB0596S02 [(57)] (58) Funds collected by the housing of state probationary inmates or state parole inmates, as provided in Subsection 64-13e-104(2).
- 47 - HB0596S01 compared with HB0596S02 (d) Active Transportation Investment Fund;
Section .
FY 2026 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1, 2025, and ending June 30, 2026.
These are additions to amounts previously appropriated for - 55 - HB0596 compared with HB0596S02 fiscal year 2026.
Subsection 24(a).
Operating and Capital Budgets Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.
ITEM 1 To Department of Workforce Services - Office of Homeless Services From General Fund, One-time (20,998,000) Schedule of Programs:
Homeless Services (20,998,000) The Legislature intends that the Office of Homeless Services may use up to $22,998, Section .
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1, 2026, and ending June 30, 2027.
These are additions to amounts previously appropriated for fiscal year 2027.
Subsection 25(a).
Operating and Capital Budgets Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the Legislature appropriates the following sums of money from the funds or accounts indicated for the use and support of the government of the state of Utah.
ITEM 2 To Department of Workforce Services - Office of Homeless Services From General Fund, One-time 20,998,000 Schedule of Programs:
Homeless Services 20,998,000 The Legislature intends that, under Section 63J-1-603, appropriations provided under Item 1 not lapse at the close of fiscal year 2026, and that the Office of Homeless Services may use up to $2,000,000 for non-family homeless resource centers that do not exceed more than 490 beds.
The Legislature futher intends that beginning in fiscal year 2027, the Office of Homeless Services may - 56 - HB0596 compared with HB0596S02 use the nonlapsing one-time general funds provided in Item 2 for the purposes described in Subsection 35A-16-1201(10).
- 48 - HB0596S01 compared with HB0596S02 3-3-26 8:25 PM - 4957 -
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View plain text versions (9)
- Comparison to Original Bill View text pdf
- Comparison to Sub #1 View text Current pdf
- Amended Amended 3/2/2026 14:03:549 pdf
- Amended Amended 3/3/2026 20:03:927 pdf
- Amended Amended Excerpts 3/2/2026 14:03:549 pdf
- Amended Amended Excerpts 3/3/2026 20:03:927 pdf
- Substitute Substitute #1 pdf
- Substitute Substitute #2 pdf
- Introduced View text pdf
Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
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House/ filed
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House/ strike enacting clause
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LFA/ fiscal note publicly available for HB0596S02
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LFA/ fiscal note sent to sponsor for HB0596S02
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LFA/ bill sent to agencies for fiscal input for HB0596S02
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LFA/ bill assigned to staff for fiscal analysis for HB0596S02
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House/ filed
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House/ failed
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House/ floor amendment
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House/ 3rd reading
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LFA/ fiscal note publicly available for HB0596S01
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LFA/ fiscal note sent to sponsor for HB0596S01
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House/ 2nd reading
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House/ comm rpt/ substituted/ amended [House Law Enforcement and Criminal Justice Committee]
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House Comm - Favorable Recommendation [House Law Enforcement and Criminal Justice Committee]
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House Comm - Amendment Recommendation [House Law Enforcement and Criminal Justice Committee]
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House Comm - Substitute Recommendation [House Law Enforcement and Criminal Justice Committee]
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LFA/ bill sent to agencies for fiscal input for HB0596S01
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LFA/ bill assigned to staff for fiscal analysis for HB0596S01
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House/ to standing committee [House Law Enforcement and Criminal Justice Committee]
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House/ received fiscal note from Fiscal Analyst
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LFA/ fiscal note publicly available for HB0596
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LFA/ fiscal note sent to sponsor for HB0596
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House/ 1st reading (Introduced)
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House/ received bill from Legislative Research
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LFA/ bill sent to agencies for fiscal input for HB0596
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LFA/ bill assigned to staff for fiscal analysis for HB0596
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Numbered Bill Publicly Distributed
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Bill Numbered but not Distributed
Sponsors
- Kirk A. Cullimore · Cosponsor
- Steve Eliason · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 1 co-sponsors · 102 not signed on
Sponsors (1)
- Steve Eliason Republican
Co-sponsors (1)
- Kirk A. Cullimore Republican
Not signed on (102)
102 members have not signed on to this bill.
Show all 102 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors HB 596?
- HB 596 is sponsored by Kirk A. Cullimore (Republican) and Steve Eliason (Republican).
- What is the current status of HB 596?
- This bill has been sent to the executive. Introduced February 23, 2026. It awaits signature.
- Where can I track HB 596?
- Track HB 596 free on One Click Politics — get push/email alerts when it moves.
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