HB 405 Utah House · 2026 General Session

State Purchasing Reserve Funding

HB 405 creates a new "State Purchasing Reserve Restricted Account" by imposing a 0.5% administrative fee on state cooperative contracts. Revenue from this fee is deposited into the account and must be invested in precious metals by the state treasurer. The funds can later be used to offset procurement costs for public entities (like local governments or schools) if specific inflation metrics are met, ensuring continuity in purchasing goods and services. This bill directly affects state cooperative contracts and public entities that rely on them for procurement.

Issues: ✓ Budget & Taxes

Bill status passed 4 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Feb 2026

Senate Passage

Feb 2026

Governor

Introduced Jan 28, 2026 Last action Mar 7, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Substitute #1 · 6 edits

MODERATE

This bill introduces a new State Purchasing Reserve Restricted Account funded by a mandatory 0.5% administrative fee on state cooperative contracts. The collected fees are invested in precious metals and can only be withdrawn by the Legislature during periods of high inflation to help public entities offset rising procurement costs.

Scope change

The bill expands the scope of state purchasing regulations by adding a new fee structure and creating a new restricted account, while also modifying the list of exempt funds to include this new account.

FISCAL

A new State Purchasing Reserve Restricted Account is created to hold funds specifically for offsetting future procurement costs.

REQUIREMENT

A mandatory 0.5% administrative fee is established on contracts resulting from state cooperative procurements with public entities, unless explicitly exempted.

The state treasurer is directed to invest the revenue from the administrative fee into precious metals.

Money from the new account can only be appropriated if the Chained Consumer Price Index is at least two standard deviations above the 15-year mean, ensuring funds are used only during high inflation.

ELIGIBILITY

The State Purchasing Reserve Restricted Account is added to the list of funds exempt from certain investment diversification requirements.

TECHNICAL

Formatting and numbering inconsistencies in the original text were corrected, and the Senate Sponsor name was updated.

Floor votes · House Feb 20, 2026

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 5, 2026

Upper · Passed

Senate/ comm rpt/ sent to Rules [Senate Rules Committee]

upper

Mar 4, 2026

Upper · Passed

Senate Comm - Recommends Returned to Rules [Senate Government Operations and Political Subdivisions Committee]

upper

Mar 2, 2026

Upper · Passed

Senate Comm - Not Considered [Senate Government Operations and Political Subdivisions Committee]

upper

Feb 24, 2026

Committee

Senate/ to standing committee [Senate Government Operations and Political Subdivisions Committee]

upper

Feb 20, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

Feb 20, 2026

Upper · Passed

House/ passed 3rd reading

upper

Feb 12, 2026

Lower · Passed

House/ committee report favorable [House Government Operations Committee]

lower

Feb 12, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Government Operations Committee]

lower

Feb 5, 2026

Committee

House/ to standing committee [House Government Operations Committee]

lower

Jan 28, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor