A mental health funding provision in Utah's HB0416 imposes a new recurring cost on small first responder agencies—and it affects how some auto service owners budget for compliance.
Most auto service shop owners in Utah don't realize that a provision buried in HB0416—First Responder Health Modifications—creates a direct financial obligation for small first responder agencies that partner with their communities. If your shop works with local fire departments, volunteer rescue squads, or small municipal emergency services, this matters to your bottom line and theirs.
Section 7 of HB0416, codified at 53-21-105(6), establishes a Mental Health Resources for First Responders Restricted Account. Small first responder agencies—defined as those with 10 or fewer employees, primarily volunteer-staffed operations, or those serving small jurisdictions—can opt into this program to access state-provided mental health resources.
The catch: participating agencies must pay $25 per employed first responder annually. This is a recurring obligation, not a one-time fee. It begins in fiscal year 2027 and continues each year an agency remains enrolled.
This applies to small first responder agencies—primarily volunteer fire departments, rural rescue services, and emergency response teams in smaller Utah jurisdictions. If your auto service supports local emergency services through vehicle maintenance contracts, equipment supply, or fuel agreements, you'll see this reflected in their budgets.
A volunteer fire department with eight full-time staff, for example, would pay $200 annually. A rural rescue squad with five employees would pay $125. For small agencies already operating on tight margins, this is a material cost.
The provision becomes effective July 1, 2026. The actual annual payments begin in fiscal year 2027. This gives agencies roughly six months to plan for the new obligation in their budgets.
It's worth noting that the funding provision at 53-21-105(3)(d) is repealed as part of this bill, which affects how the restricted account is structured going forward.
If you contract with small first responder agencies, expect budget conversations to shift in late 2026 and early 2027. Agencies may tighten spending on non-essential services, renegotiate maintenance contracts, or seek cost efficiencies elsewhere. Understanding this provision helps you anticipate client needs and position your services competitively.
Conversely, if you're an auto service owner who volunteers with a first responder agency, you now know what your organization's financial commitment looks like if leadership decides to opt into the mental health resources program.
The bill frames this as an investment in first responder mental health—a legitimate public health priority. But it's also a hard cost that small agencies must weigh against other operational needs. Being informed about the details helps you and your community partners make better decisions.
For a detailed breakdown of HB0416 and how other provisions may affect your business, contact your local Utah auto service trade association or review the full bill text at le.utah.gov.