Representative Peterson presented a substitute to House Bill 324 proposing changes to how revenue from certain specialty license plates — notably the black "Utah" plate reissued in 2023 — is distributed. The substitute raised the cap on recipient distributions to $500,000 (from $300,000 under prior discussion) and included a one-time transfer intended to seed an endowment for the Utah Department of Cultural and Community Engagement. Sponsor Peterson said the measure was intended to preserve the legislature's appropriations authority while ensuring the department receives a stable recurring amount from the plate proceeds.

The hearing drew sustained public testimony. Donna Law, executive director of the Utah Department of Cultural and Community Engagement, described the Museum of Utah project and the department's role overseeing four galleries in the State Office Building. "The proceeds from the plate that have been received so far ... has gone into an endowment fund," Law told the committee, and she said the endowment would support rotating exhibits and long-term collections care.

Museum professionals and preservation advocates urged the committee not to redirect funds originally marketed and sold with historical museum and Utah-history purposes in mind. Ruth White, representing the Utah Museum Association, said the funds support hundreds of small museums and educational outreach across the state. Brad Westwood, a former senior public historian for the state, asked the committee to respect the publicly advertised purpose of the plate and cautioned about redirecting voluntary donations.

Committee members discussed constitutional oversight and appropriations authority. Representative Thurston noted auditor guidance emphasizing three criteria for voluntary donations: transparency (donors should know the purpose), oversight (protections against waste), and accountability (funds used for intended purpose). Several members said they wanted more time to review the substitute text and the fiscal implications; Representative DeFe moved to hold the bill. The committee voted to hold the first substitute to HB324.

Outcome: the committee adopted the first substitute earlier in the meeting for drafting purposes but ultimately voted to hold the first substitute of HB324 for further work. Committee members and witnesses expressed willingness to continue negotiations on appropriate oversight and whether future plates or modifications might better match donor expectations.