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H.B. 122
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6 AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; EXPANDING
7 SCOPE OF THE COMMUNITY ECONOMIC DEVELOPMENT PROJECT FUND;
8 APPROPRIATING $1,200,000 FROM THE GENERAL FUND; AND MAKING TECHNICAL
9 CORRECTIONS.
10 This act affects sections of Utah Code Annotated 1953 as follows:
11 AMENDS:
12 9-2-1501, as enacted by Chapter 301, Laws of Utah 1996
13 9-2-1502, as last amended by Chapter 391, Laws of Utah 1998
14 9-2-1504, as last amended by Chapter 391, Laws of Utah 1998
15 9-2-1505, as enacted by Chapter 301, Laws of Utah 1996
16 9-2-1506, as last amended by Chapter 391, Laws of Utah 1998
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 9-2-1501 is amended to read:
19 9-2-1501. Title -- Purpose.
20 (1) This part is known as the "Community Economic Development Project Fund."
21 (2) The purpose of this part is to achieve the critical public purposes of fostering growth
22 of the state's economy and creating jobs throughout the state by encouraging:
23 (a) local governments and nonprofit economic development organizations to develop
24 projects that enhance the economic strengths of their communities; and
25 (b) the development of small businesses in Utah.
26 Section 2. Section 9-2-1502 is amended to read:
27 9-2-1502. Definitions.
28 As used in this part:
29 (1) "Administrator" means the Department of Community and Economic Development.
30 (2) "Board" means the Board of Business and Economic Development.
31 (3) "Fund" means the Community Economic Development Project Fund created in Section
32 9-2-1503 .
33 (4) "Qualified small business" means a small business that:
34 (a) has one or more locations within Utah;
35 (b) is of a size that may be eligible for Small Business Administration loans under 13
36 C.F.R. 121; and
37 (c) prior to application for a loan or grant under this chapter, has not engaged in business
38 activities in Utah except for activities incidental to starting a business.
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40 board in Title 9, Chapter 2, Part 12, Industrial Assistance Fund, as economically disadvantaged
41 rural targeted areas.
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43 area, as designated by the United States Bureau of the Census.
44 Section 3. Section 9-2-1504 is amended to read:
45 9-2-1504. Distribution of fund moneys.
46 (1) The administrator shall:
47 (a) establish criteria and procedures for the grant and loan process as provided in Title 63,
48 Chapter 46a, Utah Administrative Rulemaking Act;
49 (b) determine the order in which [
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51 (c) make grants and loans from the fund:
52 (i) to any of the [
53 (ii) in accordance with Subsection (3).
54 (2) Two percent of the fund moneys may be used by the executive director for purposes
55 consistent with this chapter, including the payment of reasonable loan processing fees, but may not
56 be used to offset department or board administrative expenses.
57 (3) (a) Fund moneys remaining after distribution as provided in Subsection (2) shall be
58 distributed as follows:
59 (i) at least 50% of the moneys shall be distributed as loans to be repaid to the fund by the
60 entity receiving them[
61 (ii) at least 50% of [
62 be distributed to:
63 (A) communities meeting the requirements for enterprise zones in Section 9-2-404 ; or
64 (B) a qualified small business located in an enterprise zone under Section 9-2-404 ;
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66 as grants with:
67 (A) [
68 (I) communities meeting the requirements for enterprise zones in Section 9-2-404 ; [
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70 (II) a qualified small business located in an enterprise zone under Section 9-2-404 ; and
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73 (3)(a)(iii)(A).
74 (b) No more than 50% of the fund monies distributed as grants or loans under Subsection
75 (3)(a) may be distributed to urban areas of the state.
76 Section 4. Section 9-2-1505 is amended to read:
77 9-2-1505. Entities authorized to receive fund moneys.
78 The administrator, with advice of the board, may make grants or loans to:
79 (1) local governments; [
80 (2) regional or statewide nonprofit economic development organizations[
81 (3) qualified small businesses.
82 Section 5. Section 9-2-1506 is amended to read:
83 9-2-1506. Application process and priorities.
84 (1) For a grant or loan to a qualified small business, the administrator:
85 (a) may accept applications for a loan or grant from a qualified small business at any time;
86 (b) may not issue a grant or loan to a qualified small business in excess of $15,000; and
87 (c) as a condition of issuing the grant or loan, shall require that the qualified small business
88 use the grant or loan solely for the acquisition of any of the following intended to have long-term
89 beneficial use:
90 (i) furniture;
91 (ii) fixtures; or
92 (iii) equipment.
93 (2) For grants or loans to local governments and regional or statewide nonprofit economic
94 development organizations, the administrator shall:
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96 for use by the administrator, [
97 period to interested entities[
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102 other sources, such as professional, craft and trade services, and community organizations;
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104 improvements or other assistance;
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106 opportunities;
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108 or income level for a period of at least 15 years;
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110 to complete the project;
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114 plan;
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116 measurable positive economic impact on a rural area;
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119 tourism in a community.
120 Section 6. Appropriation.
121 Except as provided in H.B. 4, Appropriations Coordination Act, there is appropriated from
122 the General Fund for fiscal year 1999-2000:
123 (1) $1,000,000 to the Capital Access Fund created by Section 9-2-1303 ; and
124 (2) $200,000 to the Community Economic Development Project Fund created by Section
125 9-2-1503 .
Legislative Review Note
as of 1-26-99 7:31 AM
A limited legal review of this legislation raises no obvious constitutional or statutory concerns.