H.B. 211

1

USE OF UTAH INDUSTRIAL ASSISTANCE
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: J. Brent Haymond
5 AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; AMENDING
6 REQUIREMENTS FOR LOANS TO COMPANIES IN ECONOMICALLY
7 DISADVANTAGED RURAL AREAS.
8 This act affects sections of Utah Code Annotated 1953 as follows:
9 AMENDS:
10 9-2-1205, as last amended by Chapter 193, Laws of Utah 1994
11 Be it enacted by the Legislature of the state of Utah:
12 Section 1. Section 9-2-1205 is amended to read:
13 9-2-1205. Qualification for assistance.
14 (1) The administrator shall determine which industries, companies, and individuals qualify
15 to receive monies from the fund. Except as provided by Subsection (2), to qualify for financial
16 assistance from the fund, an applicant shall:
17 (a) demonstrate to the satisfaction of the administrator that the applicant will expend funds
18 in Utah with vendors and subcontractors or other businesses in an amount proportional with
19 monies provided from the fund at a minimum ratio of 5.7 to 1 per year for a minimum period of
20 five years beginning with the date the loan was approved;
21 (b) demonstrate to the satisfaction of the administrator that the applicant will expend at
22 least $10,000,000 annually in Utah over the base level of an applicant's prior year's expenditures
23 in the state;
24 (c) demonstrate to the satisfaction of the administrator the applicant's ability to sustain
25 economic activity in the state sufficient to repay, by means of cash or appropriate credits, the
26 assistance provided by the fund; and
27 (d) satisfy other criteria the administrator considers appropriate.

1 (2) (a) The administrator may exempt an applicant from either the requirements of
2 Subsection (1)(a) or (1)(b), or both if:
3 (i) the financial assistance is provided to an applicant for the purpose of locating all or any
4 portion of its operations to an economically disadvantaged rural area; or
5 (ii) the applicant is part of a targeted industry.
6 (b) The administrator may not exempt the applicant from the requirement under
7 Subsection 9-2-1204(2) that the loan or financial assistance be structured so that the repayment or
8 return to the state equals at least the amount of the assistance together with an annual interest rate
9 of 10%.
10 (3) The administrator shall:
11 (a) make findings as to whether or not each applicant has satisfied each of the conditions
12 set forth in Subsection (1);
13 (b) monitor the continued compliance by each applicant with each of the conditions set
14 forth in Subsection (1);
15 (c) monitor the compliance by each applicant with the provisions of any contract or
16 agreement entered into between the applicant and the state as provided in Section 9-2-1206; and
17 (d) make funding decisions based upon appropriate findings and compliance.
18 (4) The administrator may only provide a loan or other financial assistance to a qualified
19 company in an economically disadvantaged rural area if the company is within 60 miles of a
20 general acute hospital licensed under Title 26, Chapter 21, Health Care Facility Licensure and
21 Inspection Act.




Legislative Review Note
as of 1-3-97 8:34 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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