On Friday, March 7, the Utah Legislature wrapped up its 2025 session after 45 days of lawmaking. Throughout the session, lawmakers introduced 599 House bills and 363 Senate bills, with 582 successfully passing both chambers. Of those bills, 424 have either been signed, vetoed, or allowed to become law without the governor’s signature.
Here’s a look at what you may have missed:
Data Centers
In October of 2024 at the One Utah Summit, Governor Spencer Cox (R) launched Operation Gigawatt, a 10-year plan to double Utah’s power production. A goal was set to secure the state’s energy future, boost the economy, and maintain energy exports by expanding and diversifying resources. Cox pointed to rising demand from population growth, AI industries, and electrification, along with the challenge of losing reliable power sources.
After Rocky Mountain Power proposed a major rate hike in Utah, Governor Spencer Cox and state lawmakers took action to prevent it. This led to discussions about restructuring the utility’s parent company and how to accommodate industries such as AI and data centers.
SB 132, sponsored by Senator Scott Sandall (R), creates an alternative process for large energy users to negotiate power contracts outside of Rocky Mountain Power’s monopoly, ensuring existing ratepayers aren’t burdened with extra costs. The measure initially required intermittent energy sources like wind and solar to be backed by storage, but that provision was removed. After extensive negotiations, the bill passed almost unanimously within the House and the Senate.
The Utah Legislature isn’t alone in addressing the growth and impact of data centers. Lawmakers in California, Maryland, Texas, Georgia, Minnesota, Connecticut, Maine, Oregon, and Arizona have also introduced legislation to study their effects, establish regulations, or adjust energy pricing policies.
On March 25, Governor Spencer Cox (R) signed SB 132, the measure having an effective date of May 7, 2025.
Social Media Verification
Last year, a federal judge blocked Utah from enforcing a law requiring social media platforms to verify users' ages and restrict minors' accounts, citing First Amendment violations. Judge Robert Shelby ruled that the law likely infringed on social media companies' free speech rights. Legislators within the state remained adamant on pushing similar bills forward, marking the safety of minors as one of their top priorities for the 2025 legislative session.
Utah passed a pioneering, first-of-its kind law aimed at protecting minors online by requiring app stores to verify user ages and obtain parental consent. The App Store Accountability Act, SB 142, mandates that app stores categorize minor accounts into three age groups, link them to a parent account, and ensure parental approval before app downloads or in-app purchases.
The legislation, supported by various social media companies, shifts responsibility for age verification to app stores rather than individual apps. Critics warn of privacy risks, free speech concerns, and technical challenges. SB 142 is part of a broader national debate over whether age verification should be handled at the app store or individual app level.
Similar bills have been introduced in Alabama, Alaska, Florida, Hawaii, Illinois, South Carolina, Texas, and West Virginia. Similar legislation was also introduced in New Mexico and South Dakota, but failed to pass.
On March 26, Governor Spencer Cox signed SB 142 into law, set to take effect on May 7, 2025. Other provisions of the measure will take effect in 2026, with dates of May 6, 2026, and December 31, 2026.
Budget
Utah operates with an annual balanced budget, but deficits can be carried over to the next year. The state has a budget rule that limits spending growth based on population, personal income, and inflation, which can only be overridden by a legislative supermajority or a vote of the people. Additionally, Utah caps total authorized debt and debt service.
The Legislature approved a $30.8 billion budget for fiscal year 2026, with $12.7 billion from state funds. Key priorities included:
- Tax Relief ($103.3 million ongoing and $22.6 million one-time for tax cuts and credits)
- Public Education ($178.6 million to increase funding per student, plus funds for educator salaries and bonuses) and Higher Education ($20 million for performance funding and $113.5 million for new buildings)
- Affordable Housing ($20 million for first-time homebuyers) and Homelessness Support ($1.9 million for shelters and $5.5 million for emergency response)
- State Employee Compensation ($136.8 million ongoing and $19 million one-time for salary increases and benefits adjustments).
Looking Ahead
March 27 marked the final day for Governor Spencer Cox (R) to sign or veto the bills sent to him. The legislature has 60 days following adjournment to convene a veto-override session, if they choose to do so. As of now, there are no indications of any upcoming special sessions, and Utah is set to enter its interim period for the rest of the year.
Spencer Cox was reelected to a second term in 2024, with a firm commitment that it will be his final term, despite Utah having no term limits for the governorship. There are no upcoming elections within the state.
May 7 marks the first day for legislators to open bill files or submit appropriation requests for the upcoming General Session, with potential topics for 2026 being discussed. During these months, there will be a preview of legislators’ top priorities, what bills might emerge during the general legislative session, and the issues currently of concern for the state. Utah's interim sessions play a vital role in bridging the gaps between general legislative sessions, significantly influencing state policy and supporting advocacy efforts throughout the year. Held monthly, these sessions assign each legislator to a committee that focuses on specific issues, much like the general session.
To stay up to date with Utah interim activity please reach out to Stateside.