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H.B. 372 Enrolled

    

Corrected Version

    
INDUSTRIAL ASSISTANCE FUND - RURAL

    
RESETTLEMENT PROGRAM

    
1997 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Evan L. Olsen

    AN ACT RELATING TO ECONOMIC DEVELOPMENT; REQUIRING THAT UP TO 50% OF
    THE INDUSTRIAL ASSISTANCE FUND BE USED IN ECONOMICALLY
    DISADVANTAGED RURAL AREAS; CLARIFYING THE OPERATION OF THE
    FUND IN ECONOMICALLY DISADVANTAGED RURAL AREAS; AND
    PROVIDING AN EFFECTIVE DATE.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         9-2-1203, as renumbered and amended by Chapter 241, Laws of Utah 1992
         9-2-1205, as last amended by Chapter 193, Laws of Utah 1994
         9-2-1207, as enacted by Chapter 193, Laws of Utah 1994
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 9-2-1203 is amended to read:
         9-2-1203. Industrial Assistance Fund created.
        There is created within the General Fund a restricted account known as the Industrial
    Assistance Fund of which up to 50% shall be used in economically disadvantaged rural areas. The
    fund shall be administered by the administrator under the direction of the board. Interest accrued
    from investment of monies in the fund shall remain in the fund. Up to $375,000 from the fund
    shall be deposited in the Utah Capital Access Fund. The administrator may hire appropriate
    support staff. The cost of administering the fund shall be paid from monies in the fund.
        Section 2. Section 9-2-1205 is amended to read:
         9-2-1205. Qualification for assistance.
        (1) The administrator shall determine which industries, companies, and individuals qualify
    to receive monies from the fund. Except as provided by Subsection (2), to qualify for financial


    assistance from the fund, an applicant shall:
        (a) demonstrate to the satisfaction of the administrator that the applicant will expend funds
    in Utah with vendors and subcontractors or other businesses in an amount proportional with monies
    provided from the fund at a minimum ratio of 5.7 to 1 per year for a minimum period of five years
    beginning with the date the loan was approved;
        (b) demonstrate to the satisfaction of the administrator that the applicant will expend at least
    $10,000,000 annually in Utah over the base level of an applicant's prior year's expenditures in the
    state;
        (c) demonstrate to the satisfaction of the administrator the applicant's ability to sustain
    economic activity in the state sufficient to repay, by means of cash or appropriate credits, the
    assistance provided by the fund; and
        (d) satisfy other criteria the administrator considers appropriate.
        (2) (a) The administrator may exempt an applicant from either the requirements of
    Subsection (1)(a) or (1)(b), or both, if:
        (i) the financial assistance is provided to an applicant for the purpose of locating all or any
    portion of its operations to an economically disadvantaged rural area; [or]
        (ii) the applicant is solely owned by or is a cooperative consisting solely of persons who
    reside in an economically disadvantaged rural area; or
        [(ii)] (iii) the applicant is part of a targeted industry.
        (b) The administrator may not exempt the applicant from the requirement under Subsection
    9-2-1204(2) that the loan or financial assistance be structured so that the repayment or return to the
    state equals at least the amount of the assistance together with an annual interest rate of 10%.
        (3) The administrator shall:
        (a) for applicants not described in Subsection (2)(a)(ii):
        [(a)] (i) make findings as to whether or not each applicant has satisfied each of the conditions
    set forth in Subsection (1); and
        [(b)] (ii) monitor the continued compliance by each applicant with each of the conditions
    set forth in Subsection (1);

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        (b) for applicants described in Subsection (2)(a)(ii) who are cooperatives, make findings as
    to whether the economic activities of each applicant has resulted in a reduction in the federal poverty
    rate in the economically disadvantaged rural area in which the applicant is located;
        (c) for applicants described in Subsection (2)(a)(ii) who are not cooperatives, make findings
    as to whether the economic activities of each applicant has resulted in the creation of new jobs on
    a per capita basis, instead of a set standard, in the economically disadvantaged rural area in which
    the applicant is located;
        [(c)] (d) monitor the compliance by each applicant with the provisions of any contract or
    agreement entered into between the applicant and the state as provided in Section 9-2-1206; and
        [(d)] (e) make funding decisions based upon appropriate findings and compliance.
        Section 3. Section 9-2-1207 is amended to read:
         9-2-1207. Designation of economically disadvantaged rural areas and targeted
     industries.
        (1) For purposes of this part, the board shall determine annually which industries or groups
    of industries shall be targeted industries as defined in Subsection 9-2-1202(5).
        (2) In designating an economically disadvantaged rural area:
        (a) the board shall consider the average agricultural and nonagricultural wage, personal
    income, unemployment, and employment in the area; and
        (b) the board may use an econometric cost-benefit model or models adopted by the
    Governor's Office of Planning and Budget.
        Section 4. Effective date.
        This act takes effect on July 1, 1997.

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