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H.B. 315

             1     

DEPARTMENT OF COMMUNITY AND

             2     
ECONOMIC DEVELOPMENT AMENDMENTS

             3     
2000 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Gerry A. Adair

             6      AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; AMENDING
             7      THE DUTIES OF THE DIVISION OF COMMUNITY DEVELOPMENT; CREATING THE
             8      STATE COMMUNITY SERVICES OFFICE; OUTLINING DUTIES AND RESPONSIBILITIES;
             9      PROVIDING FOR REPORTING AND EVALUATION REQUIREMENTS; AMENDING
             10      PROVISIONS RELATING TO THE HOMELESS TRUST ACCOUNT; AMENDING
             11      PROVISIONS RELATING TO THE DISTRIBUTION OF OLENE WALKER HOUSING TRUST
             12      FUNDS; AND MAKING TECHNICAL CHANGES.
             13      This act affects sections of Utah Code Annotated 1953 as follows:
             14      AMENDS:
             15          9-4-202, as last amended by Chapter 145, Laws of Utah 1999
             16          9-4-704, as last amended by Chapters 276 and 279, Laws of Utah 1998
             17          9-4-802, as last amended by Chapter 36, Laws of Utah 1996
             18      ENACTS:
             19          9-4-1401, Utah Code Annotated 1953
             20          9-4-1402, Utah Code Annotated 1953
             21          9-4-1403, Utah Code Annotated 1953
             22          9-4-1404, Utah Code Annotated 1953
             23          9-4-1405, Utah Code Annotated 1953
             24          9-4-1406, Utah Code Annotated 1953
             25          9-4-1407, Utah Code Annotated 1953
             26          9-4-1408, Utah Code Annotated 1953
             27      Be it enacted by the Legislature of the state of Utah:


             28          Section 1. Section 9-4-202 is amended to read:
             29           9-4-202. Powers and duties of division.
             30          (1) The division shall:
             31          (a) assist local governments and citizens in the planning, development, and maintenance
             32      of necessary public infrastructure and services;
             33          (b) cooperate with, and provide technical assistance to, counties, cities, towns, regional
             34      planning commissions, area-wide clearinghouses, zoning commissions, parks or recreation boards,
             35      community development groups, community action agencies, and other agencies created for the
             36      purpose of aiding and encouraging an orderly, productive, and coordinated development of the
             37      state and its political subdivisions;
             38          (c) assist the governor in coordinating the activities of state agencies which have an impact
             39      on the solution of community development problems and the implementation of community plans;
             40          [(d) provide assistance to communities in preparing applications to the Four Corners
             41      Regional Commission;]
             42          [(e)] (d) serve as a clearinghouse for information, data, and other materials which may be
             43      helpful to local governments in discharging their responsibilities and provide information on
             44      available federal and state financial and technical assistance;
             45          [(f)] (e) carry out continuing studies and analyses of the problems faced by communities
             46      within the state and develop such recommendations for administrative or legislative action as
             47      appear necessary;
             48          [(g)] (f) assist in funding [adequate] affordable housing and addressing problems of
             49      homelessness;
             50          [(h)] (g) support economic development activities through grants, loans, and direct
             51      programs financial assistance;
             52          [(i)] (h) certify project funding at the local level in conformance with federal, state, and
             53      other requirements; [and]
             54          [(j)] (i) utilize the capabilities and facilities of public and private universities and colleges
             55      within the state in carrying out its functions[.];
             56          (j) assist and support local governments, community action agencies, and citizens in the
             57      planning, development, and maintenance of home weatherization, energy efficiency, and
             58      antipoverty activities; and


             59          (k) assist and support volunteer efforts in the state.
             60          (2) The division may:
             61          (a) accept for and on behalf of, and bind the state to, any federal program in which the state
             62      is invited, permitted, or authorized to participate in the distribution, disbursement, or
             63      administration of any fund or service advanced, offered, or contributed in whole or in part, by the
             64      federal government for purposes consistent with the powers and duties of the department;
             65          (b) if any federal program requires the expenditure of state funds as a condition to
             66      participation by the state in any fund, property, or service, with the governor's approval, expend
             67      whatever funds are necessary out of the money provided by the Legislature for the use of the
             68      department; and
             69          (c) in accordance with Part 13, Domestic Violence Shelters, assist in developing,
             70      constructing, and improving shelters for victims of domestic violence, as described in Section
             71      77-36-1 , through loans and grants to nonprofit and governmental entities.
             72          Section 2. Section 9-4-704 is amended to read:
             73           9-4-704. Distribution of fund moneys.
             74          (1) The executive director shall:
             75          (a) make grants and loans from the fund for any of the activities authorized by Section
             76      9-4-705 , as recommended by the board;
             77          (b) establish the criteria by which loans and grants will be made; and
             78          (c) determine the order in which projects will be funded.
             79          (2) The executive director shall distribute any federal moneys contained in the fund
             80      according to the procedures, conditions, and restrictions placed upon the use of those moneys by
             81      the federal government.
             82          (3) (a) The executive director shall distribute any funds received pursuant to Section
             83      17A-2-1264 to pay the costs of providing income targeted housing within the community that
             84      created the redevelopment agency under Title 17A, Chapter 2, Part 12, Utah Neighborhood
             85      Development Act.
             86          (b) As used in Subsection (3)(a):
             87          (i) "Community" has the meaning as defined in Subsection 17A-2-1202 (5).
             88          (ii) "Income targeted housing" has the meaning as defined in Subsection
             89      17A-2-1264 (1)(g).


             90          (4) Except federal money and money received under Section 17A-2-1264 , the executive
             91      director shall distribute all other moneys from the fund according to the following requirements:
             92          (a) Not less than 30% of all fund moneys shall be distributed to rural areas of the state.
             93          (b) At least 50% of the moneys in the fund shall be distributed as loans to be repaid to the
             94      fund by the entity receiving them.
             95          (i) (A) Of the fund moneys distributed as loans, at least 50% shall be distributed to benefit
             96      persons whose annual income is at or below 50% of the median family income for the state.
             97          (B) The remaining loan moneys shall be distributed to benefit persons whose annual
             98      income is at or below 80% of the median family income for the state.
             99          (ii) The executive director or his designee shall lend moneys in accordance with this
             100      Subsection (4) at a rate based upon the borrower's ability to pay.
             101          (c) Any fund moneys not distributed as loans shall be distributed as grants.
             102          (i) At least 90% of the fund moneys distributed as grants shall be distributed to benefit
             103      persons whose annual income is at or below 50% of the median family income for the state.
             104          (ii) The remaining fund moneys distributed as grants may be used by the executive director
             105      to obtain federal matching funds or for other uses consistent with the intent of this part, including
             106      the payment of reasonable loan [processing fees] servicing costs, but [may not] no more than 3%
             107      of the revenues of the fund may be used to offset other department or board administrative
             108      expenses.
             109          (5) The executive director may:
             110          (a) enact rules to establish procedures for the grant and loan process by following the
             111      procedures and requirements of Title 63, Chapter 46a, Utah Administrative Rulemaking Act; and
             112          (b) service or contract, pursuant to Title 63, Chapter 56, Utah Procurement Code, for the
             113      servicing of loans made by the fund.
             114          Section 3. Section 9-4-802 is amended to read:
             115           9-4-802. Purposes of Homeless Coordinating Committee -- Uses of Homeless Trust
             116      Account.
             117          (1) The Homeless Coordinating Committee shall work to ensure that services provided to
             118      the homeless by state agencies, local governments, and private organizations are provided in a
             119      cost-effective manner. Programs funded by the committee shall emphasize emergency housing and
             120      self-sufficiency, including placement in meaningful employment or occupational training activities


             121      and, where needed, special services to meet the unique needs of the homeless who [are mentally
             122      ill and those who are in] have families with children, or who are mentally ill, disabled, or suffer
             123      from other serious challenges to employment and self-sufficiency. The committee may also fund
             124      treatment programs to ameliorate the effects of substance abuse or a handicap.
             125          (2) The committee designated in Subsection 9-4-801 (2) is responsible for awarding
             126      contracts funded by the Homeless Trust Account. The committee shall award contracts with the
             127      advice and input of those designated in Subsection 9-4-801 (3), and shall consider need, diversity
             128      of geographic location, coordination with or enhancement of existing services, and the extensive
             129      use of volunteers. Priority for funding shall be given to programs that serve the homeless who are
             130      mentally ill and who are in families with children.
             131          (3) (a) In any fiscal year, no more than 80% of the funds in the Homeless Trust Account
             132      may be allocated to organizations that provide services only in Salt Lake, Davis, Weber, and Utah
             133      Counties.
             134          (b) The committee may expend up to 3% of its annual appropriation for administrative
             135      costs associated with the allocation of funds from the Homeless Trust Account, and up to 2% of
             136      its annual appropriation for marketing the Homeless Trust Account and soliciting donations to the
             137      Homeless Trust Account. The committee may pay for the initial costs of the State Tax
             138      Commission in implementing Section 59-10-530.5 out of the Homeless Trust Account.
             139          (4) (a) The committee may not expend, except as provided in Subsection (4)(b), an amount
             140      equal to the greater of $50,000 or 20% of the amount donated to the Homeless Trust Account
             141      during fiscal year 1988-89.
             142          (b) The committee may expend funds held in reserve to provide program stability in the
             143      event of decreases in contributions to the fund, but the committee shall reimburse to the reserve
             144      fund the amount of any such expenditure.
             145          (5) The committee shall make an annual report to the Economic Development and Human
             146      Resources Appropriations Subcommittee regarding the programs and services funded by
             147      contributions to the Homeless Trust Account.
             148          (6) The moneys in the Homeless Trust Account shall be invested by the state treasurer
             149      according to the procedures and requirements of Title 51, Chapter 7, State Money Management
             150      Act, except that all interest or other earnings derived from the fund moneys shall be deposited in
             151      the fund.


             152          Section 4. Section 9-4-1401 is enacted to read:
             153     
Part 14. State Community Services Act

             154          9-4-1401. Title.
             155          This part is known as the "State Community Services Act."
             156          Section 5. Section 9-4-1402 is enacted to read:
             157          9-4-1402. Definitions.
             158          As used in this part:
             159          (1) "Community action agency" means a local subdivision of the state, a combination of
             160      political subdivisions, a separate public agency, or a private nonprofit agency which has the
             161      authority under its applicable charter or laws to receive funds to support community action
             162      activities and other appropriate measures designed to identify and deal with the causes of poverty
             163      in the state, and which is designated as a community action agency by federal law, federal
             164      regulations, or the governor.
             165          (2) "Community action program budget" means state funds, federal block grants, and
             166      federal categorical grants that are received by the state for community action activities.
             167          (3) "Community action statewide organization" means community action programs,
             168      organized on a statewide basis, to enhance the capability of community action agencies.
             169          (4) "Community Services Block Grant" means the Federal Community Services Block
             170      Grant Act, 42 U.S.C. 9901 et. seq., and any corresponding federal regulations.
             171          (5) "Local share" means cash or in-kind goods and services donated to a community action
             172      agency to carry out its responsibilities.
             173          (6) "Low-income person" means a person who is a member of a household with a gross
             174      annual income equal to or less than 125% of the poverty standard accepted by the federal agency
             175      designated to establish poverty guidelines.
             176          (7) "Office" means the State Community Services Office created in Section 9-4-1403 .
             177          (8) "Service area" means the geographical area within the jurisdiction of a community
             178      action agency or a community action statewide organization.
             179          Section 6. Section 9-4-1403 is enacted to read:
             180          9-4-1403. State Community Services Office created -- Purpose.
             181          (1) There is created within the Division of Community Development the State Community
             182      Services Office.


             183          (2) The office shall strengthen communities by reducing poverty and improving the quality
             184      of life for low-income persons in this state.
             185          Section 7. Section 9-4-1404 is enacted to read:
             186          9-4-1404. Duties of office.
             187          The office shall:
             188          (1) coordinate state activities designed to reduce poverty;
             189          (2) encourage entities in the private sector to participate in efforts to ameliorate poverty
             190      in the community;
             191          (3) cooperate with agencies of local, state, and federal government in reducing poverty and
             192      implementing community, social, and economic programs;
             193          (4) receive and expend funds for the purposes outlined in this part;
             194          (5) enter into contracts with and award grants to public and private nonprofit agencies and
             195      organizations;
             196          (6) develop a state plan based on needs identified by community action agencies and
             197      community action statewide organizations;
             198          (7) designate community action agencies to receive funds through the Community Services
             199      Block Grant program;
             200          (8) fund community action agencies and community action statewide organizations;
             201          (9) make rules in conjunction with the division pursuant to Title 63, Chapter 46a, Utah
             202      Administrative Rulemaking Act, to carry out the purposes of this part;
             203          (10) provide assistance to local governments or private organizations for the purpose of
             204      establishing and operating a community action agency;
             205          (11) provide technical assistance to community action agencies to improve program
             206      planning, program development, administration, and the mobilization of public and private
             207      resources;
             208          (12) convene public meetings which provide citizens the opportunity to comment on
             209      public policies and programs to reduce poverty;
             210          (13) advise the governor and Legislature of the nature and extent of poverty in the state
             211      and make recommendations concerning changes in state and federal policies and programs;
             212          (14) encourage Utah's nonprofit humanitarian assistance agencies serving low-income
             213      persons by facilitating, coordinating, training, partnerships, and providing technical assistance in


             214      addressing Utah's low-income persons by enhancing management, improving service and program
             215      delivery, and preserving flexibility and local initiative;
             216          (15) develop and implement management goals which fulfill the Community Services
             217      Block Grant mission, state requirements, and the mandates of federal legislation;
             218          (16) prepare a Community Services Block Grant plan which contains provisions describing
             219      how the state will carry out the assurances of the Community Services Block Grant Act;
             220          (17) act as the state agency responsible for the evaluation and improvement of emergency
             221      food assistance services in the state;
             222          (18) monitor the impact of social policies on the emergency food network;
             223          (19) provide training and technical assistance to all grantees to assist them in program
             224      development and implementation, compliance with state and federal regulations, and reporting and
             225      management information systems;
             226          (20) certify, monitor, and decertify food pantries eligible for state sales tax rebates under
             227      Section 59-12-902 ; and
             228          (21) administer other programs to alleviate poverty assigned to the office.
             229          Section 8. Section 9-4-1405 is enacted to read:
             230          9-4-1405. Distribution of Community Services Block Grant funds.
             231          Community Services Block Grant funds received by the office shall be distributed as
             232      follows:
             233          (1) 90% to community action agencies;
             234          (2) 5% to organizations with a statewide focus to accomplish specific objectives that
             235      complement the Community Services Block Grant poverty programs; and
             236          (3) 5% to:
             237          (a) reimburse costs incurred by the office in administration of this part;
             238          (b) provide training and technical assistance to grantees of Community Services Block
             239      Grant funds; or
             240          (c) supplement anti-poverty projects.
             241          Section 9. Section 9-4-1406 is enacted to read:
             242          9-4-1406. Evaluations -- Reports.
             243          (1) The office shall periodically evaluate grantees of Community Services Block Grant
             244      funds as established by rule by the division in accordance with Title 63, Chapter 46a, Utah


             245      Administrative Rulemaking Act.
             246          (2) Grantees of Community Services Block Grant funds shall submit to the office a year
             247      end report, covering a reporting period consistent with the federal fiscal year, which provides an
             248      account of all programs operated with or supported by Community Services Block Grant funds,
             249      including:
             250          (a) types of programs operated by that grantee;
             251          (b) the program outcomes;
             252          (c) the number of persons served;
             253          (d) the number of times service was given; and
             254          (e) an accounting of all Community Services Block Grant funds expended by the grantee.
             255          (3) The office shall report annually to the appropriate legislative appropriations
             256      subcommittee on the distribution and expenditure of Community Service Block Grant funds.
             257          Section 10. Section 9-4-1407 is enacted to read:
             258          9-4-1407. Program development by grantees.
             259          Grantees of Community Services Block Grant funds shall develop specific programs and
             260      goals, consistent with the Community Services Block Grant Act, designed to provide the most
             261      effective solutions to the problems of poverty identified in their communities within the constraints
             262      of available funding, including projects related to:
             263          (1) employment;
             264          (2) education;
             265          (3) income management;
             266          (4) housing;
             267          (5) emergency assistance;
             268          (6) nutrition;
             269          (7) linkages and coordination with other programs;
             270          (8) health; and
             271          (9) self-sufficiency.
             272          Section 11. Section 9-4-1408 is enacted to read:
             273          9-4-1408. Recognition of community action agencies.
             274          The office shall have the power to:
             275          (1) recognize eligible organizations as community action agencies;


             276          (2) withdraw the recognition or terminate funding of a designated community action
             277      agency for cause, as established by rule; or
             278          (3) change the boundaries and the number of recognized community action agencies,
             279      provided that the governing board of each affected community action agency concurs in the action.




Legislative Review Note
    as of 2-2-00 7:13 AM


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

Office of Legislative Research and General Counsel


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