Outcome-based Investment Grant Pilot Framework, the official text

Outcome-based Investment Grant Pilot Framework
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Calvin R. Musselman
House Sponsor: Karen M. Peterson

LONG TITLE
General Description:
This bill establishes the Outcome-based Investment Grant Pilot Framework to provide a process for administering certain grant funding for projects using measurable outcomes.
Highlighted Provisions:
This bill: defines terms;
establishes a pilot framework for a grant administering agency to award grant funding for projects using measurable outcomes;
requires the Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget to establish evaluation standards and requirements;
requires grant applicants to submit a pre-analysis plan identifying expected outcomes and metrics;
requires the use of independent evaluators to measure project outcomes;
authorizes review of evaluation findings by the Office of the Legislative Auditor General;
requires certain reporting from the administering agency to a relevant appropriations subcommittee;
includes appropriations for use under the Outcome-based Investment Grant Pilot Framework; and
establishes a sunset date for the pilot framework.

Money Appropriated in this Bill: This bill appropriates $9,000,000 in operating and capital budgets for fiscal year 2027, including: $4,500,000 from Income Tax Fund; and $4,500,000 from various sources as detailed in this bill. Other Special Clauses: This bill provides a special effective date. Utah Code Sections Affected: AMENDS:
63I-1-263, as last amended by Laws of Utah 2025, Chapters 391, 512

ENACTS:
63G-6b-402, Utah Code Annotated 1953

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63G-6b-402 is enacted to read:
63G-6b-402. Outcome-based Investment Grant Pilot Framework.
(1) As used in this section: (a) "Independent evaluator" means an individual or entity that: (i) is not involved in implementing a project receiving grant funding under the pilot framework; and
(ii) meets the evaluation standards that the Office of the Legislative Auditor General establishes under this section.

(b) "Evaluation framework" means the evaluation framework the Office of the Legislative Auditor General establishes in accordance with Subsection (5).
(c) "Pilot framework" means the Outcome-based Investment Grant Pilot Framework that this section establishes.
(d) "Pre-analysis plan" means a written plan that: (i) a grant applicant submits during the grant application process and before beginning project implementation;
(ii) identifies the specific outcomes the applicant intends the proposed project to achieve;
(iii) specifies the metrics for measuring each intended outcome of the proposed project;
(iv) describes the evaluation methodology that will apply to the proposed project, including any comparison to control data or counterfactual approach; and
(v) complies with the standards that the Office of the Legislative Auditor General establishes under this section.

(2) (a) This section creates a pilot framework governing the administration of certain competitive grant programs using measurable outcomes known as the Outcome-based Investment Grant Pilot Framework.
(b) This section only applies to a grant that receives funding from an appropriation in which the Legislature expressly declares the intent for the administering agency to administer the grant under the pilot framework.

(3) Upon an expression of legislative intent for an agency to administer a grant under the pilot framework in a legislative appropriation, the administering agency shall: (a) administer a grant program in accordance with the pilot framework; and
(b) only award grants under the pilot framework for projects that comply with the evaluation framework described in Subsection (5).

(4) (a) An applicant for a grant under the pilot framework shall submit an application: (i) in a form that the administering agency prescribes; and
(ii) that includes a pre-analysis plan that: (A) identifies the intended outcomes of the proposed project; and
(B) provides a significant measurement and evaluation framework to demonstrate the effect of the project on the intended outcomes.

(b) The administering agency may not award a grant unless the administering agency determines that the applicants pre-analysis plan satisfies the evaluation framework requirements described in Subsection (5).

(5) The Office of the Legislative Fiscal Analyst and the Governor's Office of Planning and Budget shall establish: (a) an evaluation framework applicable to the pilot framework that includes standards governing: (i) acceptable outcome measures;
(ii) required elements of a pre-analysis plan;
(iii) acceptable evaluation methodologies; and
(iv) minimum data collection and reporting requirements; and

(b) standards governing independent evaluators, including: (i) independence and conflict-of-interest requirements;
(ii) minimum qualifications and expertise;
(iii) acceptable evaluation designs and levels of rigor; and
(iv) reporting and transparency requirements.

(6) (a) A recipient of a grant under this section shall participate in an independent evaluation of the funded project.
(b) An independent evaluator shall: (i) measure and assess the extent to which the project caused the outcomes identified in the pre-analysis plan;
(ii) compare actual outcomes to the projected outcomes in the pre-analysis plan using the metrics described in the pre-analysis plan; and
(iii) provide a written report of the independent evaluation to the administering agency.

(c) Unless the Legislature indicates otherwise in a specific appropriation for a grant under the framework, the administering agency may use up to 5% of funds the Legislature appropriates to procure the independent evaluation described in this Subsection (6).
(d) The Office of the Legislative Auditor General may: (i) review the findings of an independent evaluation described in this Subsection (6); and
(ii) assess the methodological rigor, validity, and reliability of the evaluation.

(7) The administering agency shall annually report to the agency's relevant legislative appropriations subcommittee regarding the administration of the grant under the pilot framework, including: (a) a summary of the number and type of grants the administering agency awards under the pilot framework;
(b) the progress of grant projects;
(c) available outcome data;
(d) impact data; and
(e) the results of any independent evaluations of a grant project.

(8) Nothing in this section requires the administering agency to terminate funding solely based on evaluation results.

Section 2. Section 63I-1-263 is amended to read:
63I-1-263. Repeal dates: Titles 63A to 63O.
(1) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1, 2028.
(2) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed December 31, 2026.
(3) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
(4) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
(5) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
(6) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July 1, 2028.
(7) Section 63G-6a-805, Purchase from community rehabilitation programs, is repealed July 1, 2026.
(8) Section 63G-6b-402, Outcome-based Investment Grant Pilot Framework, is repealed July 1, 2031.
[(8)] (9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1, 2028.
[(9)] (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1, 2029.
[(10)] (11) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
[(11)] (12) Subsection 63J-1-602.2(26), regarding the Utah Seismic Safety Commission, is repealed January 1, 2025.
[(12)] (13) Section 63L-11-204, Canyon resource management plan, is repealed July 1, 2027.
[(13)] (14) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee, is repealed July 1, 2027.
[(14)] (15) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is repealed July 1, 2027.
[(15)] (16) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses, is repealed July 1, 2029.
[(16)] (17) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
[(17)] (18) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
[(18)] (19) Subsection 63N-2-511(1)(b), regarding the Board of Tourism Development, is repealed July 1, 2030.
[(19)] (20) Section 63N-2-512, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
[(20)] (21) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is repealed July 1, 2027.
[(21)] (22) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is repealed July 1, 2028.
[(22)] (23) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed July 1, 2028.
[(23)] (24) Section 63N-4-804, Rural Opportunity Advisory Committee, is repealed July 1, 2027.
[(24)] (25) Subsection 63N-4-805(5)(b), regarding the Rural Employment Expansion Program, is repealed July 1, 2028.
[(25)] (26) Subsection 63N-7-101(1), regarding the Board of Tourism Development, is repealed July 1, 2030.
[(26)] (27) Subsection 63N-7-102(3)(c), regarding a requirement for the Utah Office of Tourism to receive approval from the Board of Tourism Development, is repealed July 1, 2030.
[(27)] (28) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1, 2030.

Section 3. 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 3(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. HIGHER EDUCATION UTAH BOARD OF HIGHER EDUCATION ITEM 1 Utah Board of Higher Education - Administration From Income Tax Fund, One-time 4,500,000 Pass Through Funding 4,500,000 The Legislature intends that the Utah Board of Higher Education: (1) use the funds appropriated in this item to administer, under the Outcome-based Investment Grant Pilot Framework described in Section 63G-6b-402, a grant designed to improve upward mobility through the use of a digital data inventory to measure improvement in an individual's educational or economic outcomes, including: (a) educational attainment or credential completion; (b) persistence, transfer, or completion within postsecondary education (c) employment, job placement, or labor market attachment; (d) earnings, wage growth, or income stability; or (e) other indicators of economic opportunity or advancement; and (2) provide the reports described in Subsection 63G-6b-402 to the Higher Education Appropriations Subcommittee. PUBLIC EDUCATION STATE BOARD OF EDUCATION ITEM 2 State Board of Education - Contracted Initiatives and Grants From Public Education Economic Stabilization Restricted Account, One-time 4,500,000 Contracts and Grants 4,500,000 The Legislature intends that the State Board of Education: (1)use the funds appropriated in this item to administer a grant under the Outcome-based Investment Grant Pilot Framework described in Section 63G-6b-402 for up to two local education agencies to create a comprehensive school improvement pilot program for one or more chronically under-performing schools that: (a) uses evidence-based practices, modeled on the practices the Houston Independent School District implemented in underperforming campuses beginning in June 1, 2023, to: (i) hold teachers and principals to clear and measurable performance expectations tied to improvement in student outcomes; and (ii) recruit and retain high-quality educators and school leaders through enhanced compensation for teachers and principals who meet the performance expectations, intensive coaching, extended planning time, centralized instructional supports, targeted professional development aligned to school-specific needs; (b) may provide funding to: (i) create clearly defined performance standards, frequent assessment of student learning, and transparent evaluation systems tied to demonstrated instructional effectiveness and student outcomes; (ii) support rigorous accountability structures for educators and students; and (iii) support program design, staffing, compensation adjustments instructional coaching, curriculum alignment, extended planning time, and evaluation; and (c) does not support general operations or otherwise supplant or displace existing funding; and (2) provide the reports described in Subsection 63G-6b-402 to the Public Education Appropriations Subcommittee.

Section 4. Effective Date.
This bill takes effect on July 1, 2026.

3-10-26 10:22 AM