Fiscal Note
H.B. 484
2025 General Session
State Purchasing Reserve Funding
by Ivory, Ken
General, Income Tax, and Uniform School Funds JR4-4-101
Ongoing One-time Total
Net GF/ITF/USF (rev.-exp.) $(854,300) $(200,800) $(1,055,100)
State Government UCA 36-12-13(2)(c)
Revenues FY 2025 FY 2026 FY 2027
General Fund $0 $(71,200) $(71,200)
Income Tax Fund $0 $(127,900) $(127,900)
Dedicated Credits Revenue $0 $(1,272,800) $(1,272,800)
Commerce Service Account $0 $9,400 $9,400
Liquor Control Fund $0 $12,500 $12,500
New Account Created By Bill (FN
Only)
$0 $3,000,000 $3,000,000
Total Revenues $0 $1,550,000 $1,550,000
The bill could increase dedicated credits to the new account created in this bill by around $2 million
ongoing and divert another $1 million of ongoing Dedicated Credits in FY 2026 from the Division of
Purchasing and General Services to the new fund.
Enactment of this legislation could also reduce revenue collected by the Division of Purchasing
and General Service by $450,000 ongoing beginning in FY 2026 for federal government refunds of
reserves in excess of the federal 60 days limit.
Enactment of this legislation could increase Dedicated Credit Revenue to the State Treasurer by
$177,200 ongoing beginning in FY 2026 and reduce investment earnings deposited into the General
Fund by $49,300 ongoing and into the Income Tax Fund by $127,900 ongoing beginning in FY 2026
due to the investment earnings used for admin costs.
Should the increased vendor fee result in higher purchasing costs, enactment of this legislation could
reduce the year-end transfer from the Commerce Service Account to the General Fund by $9,400
ongoing beginning in FY 2026 and reduce the year-end transfer from the Liquor Control Fund to
the General Fund by $12,500 ongoing beginning in FY 2026 due to higher costs at Commerce and
Alcholic Beverage Services and assuming the cost of the new fee is split 50/50 between producer and
consumer.
Expenditures FY 2025 FY 2026 FY 2027
General Fund $0 $655,200 $655,200
General Fund, One-time $200,800 $0 $0
H.B. 484
2025/02/19 09:13, Lead Analyst: Noah Hansen, Attorney: Gilbert, C. Transportation Fund $0 $200,000 $200,000
Federal Funds $0 $23,400 $23,400
Dedicated Credits Revenue $0 $177,200 $177,200
Commerce Service Account $0 $9,400 $9,400
Liquor Control Fund $0 $12,500 $12,500
Other Financing Sources $0 $159,700 $159,700
Total Expenditures $200,800 $1,237,400 $1,237,400
To the extent that higher vendor fees lead to higher procurement costs, enactment of this bill could
cost the Department of Workforce Service $8,600 ongoing from the General Fund and $23,400
ongoing in Federal Funds beginning in FY 2026, the Utah Department of Transportation $200,000
ongoing from the General Fund beginning in FY 2026, the Department of Natural Resources $84,600
ongoing from the General Fund beginning in FY 2026, the Department of Alcohol Beverage Services
$12,500 from the Liquor Control Fund ongoing beginning in FY 2026, the Department of Commerce
$9,400 ongoing from the Commerce Service Account beginning in FY 2026, the Department of Public
Safety $66,300 ongoing from the General Fund beginning in FY 2026, the Department of Corrections
$91,400 ongoing from the General Fund beginning in FY 2026, and the Utah National Guard $184,500
ongoing from the General Fund beginning in FY 2026. The enactment of this legislation could increase
the costs to the Department of Health and Human Services and other smaller agencies, the aggregate
impact of which is assumed to be around $319,300 ongoing beginning in FY 2026 from various
sources, about half of which would be General Fund. All these costs are due to the increase in the
procurement administrative fee to 1% and assume the fee is split 50/50 between consumer and
producer.
Enactment of this legislation could cost the State Treasurer $177,200 ongoing in Dedicated Credit
Revenue beginning in FY 2026 for staff support and administration fees as they manage the buying
and selling of precious metals for this newly created fund.
The bill could cost the Division of Finance $800 one-time and $1,600 ongoing from the General Fund
beginning in FY 2026 to create the new fund as well as monitor and perform the monthly reconciliation
on the fund. This bill could also cost the Division of Purchasing and General Services $150,000
ongoing from the General Fund beginning in FY 2026 and $200,000 one-time for staff support and
system changes to track contracts and federal vendor participation.
FY 2025 FY 2026 FY 2027
Net All Funds $(200,800) $312,600 $312,600
Local Government UCA 36-12-13(2)(c)
Enactment of this legislation likely will not result in direct, measurable costs for local governments.
Individuals & Businesses UCA 36-12-13(2)(c)
Vendors doing business with the state could pay up to $1 million more per year in procurement fees
assuming the higher fee imposed by this legislation is split 50/50 between producer and consumer.
Regulatory Impact UCA 36-12-13(2)(d)
Enactment of this legislation likely will not change the regulatory burden for Utah residents or
businesses.
H.B. 484
2025/02/19 09:13, Lead Analyst: Noah Hansen, Attorney: Gilbert, C. Performance Evaluation JR1-4-601
This bill creates a new program or significantly expands an existing program.
For a list of questions lawmakers might ask to improve accountability for the proposed program,
please see: https://budget.utah.gov/newprogram
Notes on Notes
Fiscal explanations estimate the direct costs or revenues of enacting a bill. The Legislature uses them to balance the budget. They do not
measure a bill's benefits or non-fiscal impacts like opportunity costs, wait times, or inconvenience. A fiscal explanation is not an appropriation. The
Legislature decides appropriations separately.
H.B. 484
2025/02/19 09:13, Lead Analyst: Noah Hansen, Attorney: Gilbert, C.