Agency: Economic Development

Line Item: Incentive Funds

Function

The Corporate Recruitment and Incentives staff administers statutory programs created by the Legislature to induce economic activity in Utah. These programs include the Economic Development Zone Tax Increment Financing (EDTIF), Industrial Assistance Fund (IAF), and the Motion Picture Incentive Fund.

Statutory Authority

The Industrial Assistance Fund was created in 1991. Statutory authority is provided in UCA 63M-1, Part 9. The purpose of the fund is to encourage the creation of quality jobs in Utah. The GOED Board has responsibility to approve all incentive recommendations.

UCA 63M-1 Part 24 established the Economic Development Zone Tax Increment Financing program to enhance the State's ability to attract and recruit new businesses to Utah. These refundable tax credits are based on new state revenues including income tax, sales tax, and corporate tax. By current policy, a qualifying applicant may receive up to a 30 percent tax rebate for up to 20 years.

The Motion Picture Incentive Fund was established in 2005 under 63M-1, Part 18 and funding for the fund relies on an ongoing appropriation from the Legislature.

Intent Language

Under Section 63J-1-603 of the Utah Code, the Legislature intends that appropriations provided for the Pete Suazo Utah Athletic Commission formerly appropriated under the Utah Sports Authority in Item 87 of Chapter 396 Laws of Utah 2009 not lapse at the close of Fiscal Year 2010. The use of any nonlapsing funds is limited to the Pete Suazo Utah Athletic Program - $197,600.

Funding Detail

Funding for the Industrial Assistance Fund and Motion Picture Incentive Fund comes from the General Fund. Tax Credits under the Economic Development Zone Tax Increment Financing do not require a legislative appropriation.

Program: Incentives/Pete Suazo Utah Athletic Commission

Function

Prior to FY 2010, the Pete Suazo Utah Athletics Commission was housed under the Sports Authority. House Bill 400 of the 2009 General Session moved the Pete Suazo Utah Athletic Commission to GOED and eliminated the Sports Authority.

The Pete Suazo Utah Athletic Commission is responsible for the promotion and coordination of all state-regulated unarmed combat events, including professional boxing, all mixed martial arts, kickboxing and other unarmed combat events, with the exception of wrestling and soft contact martial arts.

Statutory Authority

UCA 63C-11-201 provides the statutory authority for the Pete Suazo Utah Athletics Commission. The statute sets up the following provisions:

Structure

• Seven Members: three appointed by the Governor, two appointed by the President of the Senate, two appointed by the Speaker of the House.
• The Commission elects its chair.
• Members serve four year terms. However the appointments are staggered so that new appointments are made every two years.
• Members receive per diem.
• Three members of the Authority constitute a quorum.

Powers and Duties

• Hire a director that is not a member of the commission
• Affiliates with a tribal boxing commission or athletic authority
• Issues unarmed combat licenses and makes rules concerning license requirements.
• Establishes classifications of officials by rule.
• Establishes license renewal intervals by rule.
• Denies, suspends, or revokes an unarmed combat license for cause.
• Establishes weight classes by rule.
• Establishes wait times between contest by rule.
• Permits a contestant to fight another contestant from a different weight class.
• Permits elimination of unarmed combat contests.

Funding Detail

The PSUAC is funded by appropriations from the General Fund. The program also receives dedicated credit revenues for operational support.