Representatives Seal

Fiscal Note

1st Sub. S.B. 322 (Green)

2026 General Session

Educational Technology Regulatory Sandbox

by Johnson, John D.

Senate Seal
General, Income Tax, and Uniform School FundsJR4-4-101
OngoingOne-timeTotal
Net GF/ITF/USF (rev.-exp.) $(830,300) $(71,600) $(901,900)


State GovernmentUCA 36-12-13(2)(c)
Revenues FY2026 FY2027 FY2028
Commerce Service Account, One-time $0 $41,600 $0
General Fund, One-time $0 $(41,600) $0
Total Revenues $0 $0 $0

Enactment could decrease the annual transfer from the Commerce Service Account to the General Fund by $41,600 one-time in FY 2027 as a result of the expenditures listed below.


Expenditures FY2026 FY2027 FY2028
Commerce Service Account, One-time $0 $41,600 $0
General Fund $0 $225,000 $225,000
General Fund, One-time $0 $10,000 $0
Income Tax Fund $0 $605,300 $605,300
Income Tax Fund, One-time $0 $20,000 $0
Total Expenditures $0 $901,900 $830,300

Enactment of this legislation could cost the Governor's Office of Economic Opportunity $225,000 ongoing and $10,000 One-time from the General Fund beginning in FY 2027 for the administration of the Utah Artificial Intelligence Regulatory Sandbox for public education as outlined in the bill. Enactment of this legislation could cost the State Board of Education $605,300 ongoing and $20,000 one-time from the Income Tax Fund beginning in FY 2027 to support the administration, training, technical assistance, reporting, and compliance responsibilities as outlined in the bill. Enactment of this legislation could cost the Department of Commerce $41,600 one-time from the Commerce Service Account in FY 2027 for conducting policy development, stakeholder coordination, regulatory analysis, and related administrative updates within the Office for AI Policy, Regulation & Innovation.


FY2026 FY2027 FY2028
Net All Funds (rev-exp) $0 $(901,900) $(830,300)
Local GovernmentUCA 36-12-13(2)(c)

To the extent that a Local Education Agency (LEA) is not currently implementing or supporting Artificial Intelligence tools, enactment of this legislation could cost LEAs an estimated $70,000 ongoing beginning in FY 2027 to hire an IT Specialist to fulfill the administrative, compliance, and reporting requirements established in the bill.

Individuals & BusinessesUCA 36-12-13(2)(c)

Enactment of this legislation likely will not result in direct expenditures from tax or fee changes for Utah residents and businesses.

Regulatory ImpactUCA 36-12-13(2)(d)

Enactment of this legislation could result in a small increase in the regulatory burden for Utah residents or businesses.

Performance EvaluationJR1-4-601

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