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H.B. 372 Enrolled
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:
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
(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; [
(ii) the applicant is solely owned by or is a cooperative consisting solely of persons who
reside in an economically disadvantaged rural area; or
(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):
set forth in Subsection (1); and
set forth in Subsection (1);
(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;
agreement entered into between the applicant and the state as provided in Section 9-2-1206; and
Section 3. Section 9-2-1207 is amended to read:
9-2-1207. Designation of economically disadvantaged rural areas and targeted
(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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