Title 11 Cities, Counties, and Local Taxing Units
Chapter 17 Utah Industrial Facilities and Development Act
Section 1.5 Purpose of chapter.
11-17-1.5. Purpose of chapter.
(1) (a) The purposes of this chapter are to stimulate the economic growth of the state, to
promote employment and achieve greater industrial development in the state, to maintain or
enlarge domestic or foreign markets for Utah industrial products, to authorize municipalities and
counties in the state to facilitate capital formation, finance, acquire, own, lease, or sell projects
for the purpose of reducing, abating, or preventing pollution and to protect and promote the
health, welfare, and safety of the citizens of the state and to improve local health and the general
welfare by inducing corporations, persons, or entities engaged in health care services, including
hospitals, nursing homes, extended care facilities, facilities for the care of persons with a physical
or mental disability, and administrative and support facilities, to locate, relocate, modernize, or
expand in this state and to assist in the formation of investment capital with respect thereto.
(b) The Legislature declares that the acquisition or financing, or both, of projects under
the Utah Industrial Facilities and Development Act and the issuance of bonds under it constitutes
a proper public purpose.
(2) (a) It is declared that the policy of the state is to encourage the development of free
enterprise and entrepreneurship for the purpose of the expansion of employment opportunities
and economic development.
(b) It is declared that there exists in the state an inadequate amount of locally managed,
pooled venture capital in the private sector available to invest in early stage businesses having
high growth potential and that can provide jobs for Utah citizens.
(c) It is found that venture capital is required for healthy economic development of
sectors of the economy having high growth and employment potential.
(d) It is further found that the public economic development purposes of the state and its
counties and municipalities can be fostered by the sale of industrial revenue bonds for the
purpose of providing funding for locally managed, pooled new venture and economic
development funds in accordance with the provisions of this chapter.
(e) It is declared that in order to assure adequate investment of private capital for these
uses, cooperation between private enterprise and state and local government is necessary and in
the public interest and that the facilitation of capital accumulation is the appropriate activity of
the counties and municipalities of this state and also of the Governor's Office of Economic
Development.
(f) It is found that venture capital funds historically, because of the more intensive nature
of their relationship with companies in which they invest, tend to concentrate their investments
within a relatively close geographical area to their headquarters location.
(g) It is found and declared that investors in economic development or new venture
investment funds require for the overall security of their investments reasonable diversification
of investment portfolios and that, in the course of this diversification, investments are often
syndicated or jointly made among several financial institutions or funds. It is expressly found
and declared that an economic development or new venture investment fund must from time to
time for its optimal profitability and efficiency (which are important for the security and profit of
bond purchasers providing funds therefor) cooperate with others who may be located outside of
Utah or the county or municipality where the fund is headquartered in the making of investments
and that the fund must be free in the interests of reciprocal relationships with other financial
institutions and diversification of risks to invest from time to time in enterprises that are located
outside of Utah or the counties or municipalities. It is specifically found that such activity by a
locally managed fund, funded in whole or in part with the proceeds of bonds sold under this
chapter, is within the public purposes of the state and any county or municipality offering the
bonds, provided that the fund locates within Utah or the county or municipality its headquarters
where its actual investment decisions and management functions occur and limits the aggregate
amount of its investments in companies located outside of Utah to an amount that in the
aggregate does not exceed the aggregate amount of investments made by institutions and funds
located outside of Utah in Utah companies, that the locally managed fund has sponsored or in
which it has invested and that it has brought to the attention of investors outside of Utah.
Amended by Chapter 148, 2005 General Session
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