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H.B. 318 Enrolled

                 

COMMUNITY AND ECONOMIC DEVELOPMENT

                 
RESTRUCTURING

                 
2005 GENERAL SESSION

                 
STATE OF UTAH

                 
Chief Sponsor: Craig W. Buttars

                 
Senate Sponsor: L. Alma Mansell

                 
                  LONG TITLE
                  General Description:
                      This bill restructures the Department of Community and Economic Development by
                  transferring the responsibility for economic development and tourism at the state level
                  to a new entity within the governor's office, the Governor's Office of Economic
                  Development.
                  Highlighted Provisions:
                      This bill:
                      .    restructures the Department of Community and Economic Development by
                  transferring the responsibilities of the Division of Business and Economic
                  Development and the Division of Travel Development to a newly created
                  Governor's Office of Economic Development;
                      .    transfers from the current Department of Community and Economic Development
                  to the Governor's Office of Economic Development the duty and responsibility to
                  administer the following established programs:
                          .    the Enterprise Zone Act;
                          .    Targeted Business Income Tax Credits within an Enterprise Zone;
                          .    Centers of Excellence;
                          .    Shared Foreign Sales Corporations;
                          .    the Industrial Assistance Fund;
                          .    the Recycling Market Development Zone Act;
                          .    the Utah Venture Capital Enhancement Act;


                          .    Aerospace and Aviation Development Zones;
                          .    the Tourism Performance Marketing Fund;
                          .    the Waste Tire Recycling Industry Assistance Loan Program;
                          .    the Utah Pioneers Communities Program; and
                          .    the Rural Development Act;
                      .    provides for management and administration of the Governor's Office of Economic
                  Development by a director appointed by the governor with compensation being set by
                  the governor within the salary range fixed by the Legislature in Title 67, Chapter 22,
                  State Officer Compensation, and provides the director with authority similar to that of
                  the executive director of the current Department of Community and Economic
                  Development in matters related to economic development and tourism, including
                  establishing the office in any fashion considered appropriate by the director;
                      .    renames the Department of Community and Economic Development as the
                  Department of Community and Culture, and provides the department with
                  responsibility for community and cultural development within the state and the
                  coordination of state and local programs related to community and cultural
                  development;
                      .    changes the Board of Business and Economic Development to an advisory board
                  while renaming the Board of Travel Development to the Board of Tourism
                  Development and keeping it an advisory board;
                      .    removes the rulemaking authority of entities absorbed into the Governor's Office of
                  Economic Development;
                      .    repeals the position of the Director of the Division of Business and Economic
                  Development, the Fusion/Energy Technology Act, and the Community Economic
                  Development Project Fund and distribution process for fund moneys;
                      .    eliminates the Tourism Marketing Performance Fund Committee and the Utah
                  Tourism Industry Coalition which nominated members to the Tourism Marketing
                  Performance Fund Committee;


                      .    transfers to the Governor's Office of Economic Development all the powers and
                  limitations of a municipality;
                      .    transfers to the Governor's Office of Economic Development oversight over special
                  service district guaranteed bonds;
                      .    transfers to the director of the Governor's Office of Economic Development
                  membership on the Hazardous Waste Facilities Authority and the State Council on
                  Workforce Services;
                      .    provides a representative from the Governor's Office of Economic Development to
                  serve on the Resource Development Coordinating Committee;
                      .    transfers to the director in the Governor's Office of Economic Development authority
                  to appear before the Public Service Commission regarding the economic impact of
                  any matter;
                      .    transfers to the Governor's Office of Economic Development oversight over the
                  Economic Incentive Restricted Account;
                      .    transfers to the Governor's Office of Economic Development the responsibility to
                  provide staff to the Utah Technology Industry Council and its steering committee;
                      .    provides that employees of the Department of Community and Culture and the
                  Governor's Office of Economic Development whose positions are designated as
                  schedule AM are not considered "state employees" for the purpose of overtime
                  policies by the Department of Human Resource Management and are exempt from
                  classified service and career service provisions;
                      .    transfers to the Governor's Office of Economic Development responsibility for input
                  on road-building programs in scenic centers of the state;
                      .    transfers to the Governor's Office of Economic Development membership on the Utah
                  State Scenic Byway Committee;
                      .    provides that the Department of Transportation may consult with the Governor's
                  Office of Economic Development in erecting, administering, and maintaining
                  informational signs on the interstate or primary road system;


                      .    makes employing unit names available to the Governor's Office of Economic
                  Development;
                      .    transfers to the Governor's Office of Economic Development authority to give input to
                  the Transportation Commission in selecting license plate slogans for the state;
                      .    transfers to the Governor's Office of Economic Development the responsibility to
                  serve as managing partner for the website known as Business.utah.gov;
                      .    provides that the executive director of the Department of Community and Culture
                  shall designate three qualified interim successors in case of emergency;
                      .    makes conforming changes to boards and programs throughout the Utah Code which
                  refer to the Department of Community and Economic Development or its executive
                  director by replacing those references with the new titles and designations of entities
                  and positions created in this bill; and
                      .    makes technical changes.
                  Monies Appropriated in this Bill:
                      None
                  Other Special Clauses:
                      This bill takes effect on July 1, 2005.
                      This bill provides coordination clauses.
                  Utah Code Sections Affected:
                  AMENDS:
                      9-1-102, as enacted by Chapter 241, Laws of Utah 1992
                      9-1-201, as last amended by Chapter 231, Laws of Utah 2002
                      9-4-304, as last amended by Chapter 176, Laws of Utah 2002
                      9-4-801, as last amended by Chapter 22, Laws of Utah 2004
                      9-4-904, as last amended by Chapter 176, Laws of Utah 2002
                      9-9-104.6, as enacted by Chapter 55, Laws of Utah 2003
                      10-9-307, as last amended by Chapter 202, Laws of Utah 2004
                      11-17-1.5, as last amended by Chapter 73, Laws of Utah 2001


                      11-17-18, as enacted by Chapter 206, Laws of Utah 1986
                      17-27-307, as last amended by Chapter 202, Laws of Utah 2004
                      17A-2-1318, as renumbered and amended by Chapter 186, Laws of Utah 1990
                      19-3-301, as last amended by Chapter 107, Laws of Utah 2001
                      19-6-807, as last amended by Chapter 256, Laws of Utah 2002
                      19-6-824, as last amended by Chapter 256, Laws of Utah 2002
                      19-9-104, as renumbered and amended by Chapter 184, Laws of Utah 2003
                      35A-1-206, as last amended by Chapter 1, Laws of Utah 1998
                      35A-3-103, as last amended by Chapter 18, Laws of Utah 2004
                      35A-3-203, as last amended by Chapter 13, Laws of Utah 2003
                      35A-3-205, as last amended by Chapter 13, Laws of Utah 2003
                      35A-3-309, as last amended by Chapters 18 and 29, Laws of Utah 2004
                      35A-4-312, as last amended by Chapter 135, Laws of Utah 2003
                      41-1a-405, as renumbered and amended by Chapter 1, Laws of Utah 1992
                      46-4-503, as last amended by Chapters 90 and 120, Laws of Utah 2004
                      53B-18-1002, as enacted by Chapter 23, Laws of Utah 2004
                      59-7-610, as last amended by Chapter 198, Laws of Utah 2003
                      59-10-108.7, as last amended by Chapter 198, Laws of Utah 2003
                      59-21-2, as last amended by Chapter 24, Laws of Utah 2003
                      63-5b-102, as last amended by Chapters 14 and 159, Laws of Utah 2002
                      63-38d-502, as last amended by Chapter 18, Laws of Utah 2004
                      63-49a-1, as enacted by Chapter 255, Laws of Utah 1994
                      63-49a-2, as enacted by Chapter 255, Laws of Utah 1994
                      63-49a-3, as last amended by Chapter 31, Laws of Utah 1995
                      63-51-10, as enacted by Chapter 242, Laws of Utah 1981
                      63A-9-801, as last amended by Chapter 209, Laws of Utah 2003
                      63B-5-201, as last amended by Chapter 73, Laws of Utah 2001
                      63D-1a-203, as enacted by Chapter 209, Laws of Utah 2003


                      67-19-6.7, as last amended by Chapters 82 and 375, Laws of Utah 1997
                      67-19-12, as last amended by Chapter 16, Laws of Utah 2003
                      67-19-15, as last amended by Chapter 213, Laws of Utah 1997
                      67-19c-101, as last amended by Chapters 82 and 375, Laws of Utah 1997
                      67-22-2, as last amended by Chapters 156 and 306, Laws of Utah 2004
                      72-1-209, as renumbered and amended by Chapter 270, Laws of Utah 1998
                      72-4-302, as enacted by Chapter 172, Laws of Utah 2004
                      72-7-504, as last amended by Chapter 166, Laws of Utah 2003
                      73-10c-3, as last amended by Chapter 243, Laws of Utah 1996
                  ENACTS:
                      63-38f-201, Utah Code Annotated 1953
                      63-38f-703, Utah Code Annotated 1953
                  RENUMBERS AND AMENDS:
                      63-38f-101, (Renumbered from 9-2-201, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-102, (Renumbered from 9-2-102, as enacted by Chapter 241, Laws of Utah 1992)
                      63-38f-202, (Renumbered from 9-1-204, as last amended by Chapter 176, Laws of Utah
                  2002)
                      63-38f-203, (Renumbered from 9-1-205, as last amended by Chapter 352, Laws of Utah
                  2004)
                      63-38f-204, (Renumbered from 9-1-206, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-205, (Renumbered from 9-1-207, as enacted by Chapter 29, Laws of Utah 1993)
                      63-38f-301, (Renumbered from 9-2-202, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-302, (Renumbered from 9-2-203, as last amended by Chapter 176, Laws of Utah
                  2002)
                      63-38f-303, (Renumbered from 9-2-204, as last amended by Chapter 50, Laws of Utah


                  2000)
                      63-38f-304, (Renumbered from 9-2-205, as last amended by Chapter 50, Laws of Utah
                  2000)
                      63-38f-401, (Renumbered from 9-2-401, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-402, (Renumbered from 9-2-402, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-403, (Renumbered from 9-2-403, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-404, (Renumbered from 9-2-404, as last amended by Chapter 302, Laws of Utah
                  2004)
                      63-38f-405, (Renumbered from 9-2-405, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-406, (Renumbered from 9-2-406, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-407, (Renumbered from 9-2-407, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-408, (Renumbered from 9-2-408, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-409, (Renumbered from 9-2-409, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-410, (Renumbered from 9-2-410, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-411, (Renumbered from 9-2-411, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-412, (Renumbered from 9-2-412, as last amended by Chapter 170, Laws of Utah
                  1999)
                      63-38f-413, (Renumbered from 9-2-413, as last amended by Chapter 155, Laws of Utah


                  2001)
                      63-38f-414, (Renumbered from 9-2-414, as last amended by Chapter 292, Laws of Utah
                  1996)
                      63-38f-415, (Renumbered from 9-2-415, as enacted by Chapter 275, Laws of Utah 1998)
                      63-38f-416, (Renumbered from 9-2-416, as enacted by Chapter 302, Laws of Utah 2004)
                      63-38f-501, (Renumbered from 9-2-1801, as enacted by Chapter 155, Laws of Utah
                  2001)
                      63-38f-502, (Renumbered from 9-2-1802, as enacted by Chapter 155, Laws of Utah
                  2001)
                      63-38f-503, (Renumbered from 9-2-1803, as last amended by Chapter 198, Laws of Utah
                  2003)
                      63-38f-601, (Renumbered from 9-2-501, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-602, (Renumbered from 9-2-502, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-603, (Renumbered from 9-2-503, as last amended by Chapter 16, Laws of Utah
                  2003)
                      63-38f-604, (Renumbered from 9-2-504, as last amended by Chapter 82, Laws of Utah
                  1997)
                      63-38f-605, (Renumbered from 9-2-505, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-606, (Renumbered from 9-2-506, as last amended by Chapter 16, Laws of Utah
                  2003)
                      63-38f-607, (Renumbered from 9-2-507, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-701, (Renumbered from 9-2-601, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-702, (Renumbered from 9-2-602, as renumbered and amended by Chapter 241,


                  Laws of Utah 1992)
                      63-38f-704, (Renumbered from 9-2-603, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-801, (Renumbered from 9-2-901, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-802, (Renumbered from 9-2-902, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-901, (Renumbered from 9-2-1201, as renumbered and amended by Chapter 241,
                  Laws of Utah 1992)
                      63-38f-902, (Renumbered from 9-2-1202, as last amended by Chapter 182, Laws of Utah
                  2004)
                      63-38f-903, (Renumbered from 9-2-1203, as last amended by Chapter 182, Laws of Utah
                  2004)
                      63-38f-904, (Renumbered from 9-2-1204, as last amended by Chapter 182, Laws of Utah
                  2004)
                      63-38f-905, (Renumbered from 9-2-1205, as last amended by Chapter 182, Laws of Utah
                  2004)
                      63-38f-906, (Renumbered from 9-2-1205.1, as enacted by Chapter 14, Laws of Utah
                  2003)
                      63-38f-907, (Renumbered from 9-2-1205.5, as last amended by Chapter 182, Laws of
                  Utah 2004)
                      63-38f-908, (Renumbered from 9-2-1205.8, as enacted by Chapter 182, Laws of Utah
                  2004)
                      63-38f-909, (Renumbered from 9-2-1207, as last amended by Chapter 14, Laws of Utah
                  2003)
                      63-38f-1001, (Renumbered from 9-2-1401, as enacted by Chapter 153, Laws of Utah
                  1992)
                      63-38f-1002, (Renumbered from 9-2-1402, as enacted by Chapter 153, Laws of Utah


                  1992)
                      63-38f-1003, (Renumbered from 9-2-1403, as enacted by Chapter 153, Laws of Utah
                  1992)
                      63-38f-1101, (Renumbered from 9-2-1601, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1102, (Renumbered from 9-2-1602, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1103, (Renumbered from 9-2-1603, as last amended by Chapter 65, Laws of Utah
                  2002)
                      63-38f-1104, (Renumbered from 9-2-1604, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1105, (Renumbered from 9-2-1605, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1106, (Renumbered from 9-2-1606, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1107, (Renumbered from 9-2-1607, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1108, (Renumbered from 9-2-1608, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1109, (Renumbered from 9-2-1609, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1110, (Renumbered from 9-2-1610, as last amended by Chapter 1, Laws of Utah
                  2000)
                      63-38f-1111, (Renumbered from 9-2-1611, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1112, (Renumbered from 9-2-1612, as enacted by Chapter 236, Laws of Utah
                  1996)
                      63-38f-1201, (Renumbered from 9-2-1901, as enacted by Chapter 291, Laws of Utah


                  2003)
                      63-38f-1202, (Renumbered from 9-2-1902, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1203, (Renumbered from 9-2-1903, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1204, (Renumbered from 9-2-1904, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1205, (Renumbered from 9-2-1905, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1206, (Renumbered from 9-2-1906, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1207, (Renumbered from 9-2-1907, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1208, (Renumbered from 9-2-1908, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1209, (Renumbered from 9-2-1909, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1210, (Renumbered from 9-2-1910, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1211, (Renumbered from 9-2-1911, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1212, (Renumbered from 9-2-1912, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1213, (Renumbered from 9-2-1913, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1214, (Renumbered from 9-2-1914, as last amended by Chapter 4, Laws of Utah
                  2003, Second Special Session)
                      63-38f-1215, (Renumbered from 9-2-1915, as enacted by Chapter 291, Laws of Utah


                  2003)
                      63-38f-1216, (Renumbered from 9-2-1916, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1217, (Renumbered from 9-2-1917, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1218, (Renumbered from 9-2-1918, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1219, (Renumbered from 9-2-1919, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1220, (Renumbered from 9-2-1920, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1221, (Renumbered from 9-2-1921, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1222, (Renumbered from 9-2-1922, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1223, (Renumbered from 9-2-1923, as last amended by Chapter 92, Laws of Utah
                  2004)
                      63-38f-1224, (Renumbered from 9-2-1924, as enacted by Chapter 291, Laws of Utah
                  2003)
                      63-38f-1301, (Renumbered from 9-2-2001, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1302, (Renumbered from 9-2-2002, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1303, (Renumbered from 9-2-2003, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1304, (Renumbered from 9-2-2004, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1305, (Renumbered from 9-2-2005, as enacted by Chapter 247, Laws of Utah


                  2003)
                      63-38f-1306, (Renumbered from 9-2-2006, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1307, (Renumbered from 9-2-2007, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1308, (Renumbered from 9-2-2008, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1309, (Renumbered from 9-2-2009, as enacted by Chapter 247, Laws of Utah
                  2003)
                      63-38f-1401, (Renumbered from 9-2-1701, as enacted by Chapter 301, Laws of Utah
                  1997)
                      63-38f-1402, (Renumbered from 9-2-1702, as last amended by Chapter 159, Laws of
                  Utah 2001)
                      63-38f-1403, (Renumbered from 9-2-1703, as last amended by Chapter 159, Laws of
                  Utah 2001)
                      63-38f-1404, (Renumbered from 9-2-1703.5, as last amended by Chapters 16 and 83,
                  Laws of Utah 2003)
                      63-38f-1405, (Renumbered from 9-2-1704, as last amended by Chapter 159, Laws of
                  Utah 2001)
                      63-38f-1406, (Renumbered from 9-3-201, as last amended by Chapter 109, Laws of Utah
                  1994)
                      63-38f-1407, (Renumbered from 9-3-202, as last amended by Chapter 176, Laws of Utah
                  2002)
                      63-38f-1408, (Renumbered from 9-3-203, as last amended by Chapter 109, Laws of Utah
                  1994)
                      63-38f-1409, (Renumbered from 9-3-204, as last amended by Chapter 207, Laws of Utah
                  2002)
                      63-38f-1410, (Renumbered from 9-3-206, as last amended by Chapter 109, Laws of Utah


                  1994)
                      63-38f-1501, (Renumbered from 9-8-901, as last amended by Chapter 92, Laws of Utah
                  1996)
                      63-38f-1502, (Renumbered from 9-8-902, as last amended by Chapter 92, Laws of Utah
                  1996)
                      63-38f-1503, (Renumbered from 9-8-903, as last amended by Chapters 92 and 243, Laws
                  of Utah 1996)
                      63-38f-1504, (Renumbered from 9-8-904, as last amended by Chapter 92, Laws of Utah
                  1996)
                      63-38f-1505, (Renumbered from 9-8-905, as last amended by Chapter 92, Laws of Utah
                  1996)
                      63-38f-1601, (Renumbered from 9-16-101, as enacted by Chapter 73, Laws of Utah
                  2004)
                      63-38f-1602, (Renumbered from 9-16-102, as enacted by Chapter 73, Laws of Utah
                  2004)
                      63-38f-1603, (Renumbered from 9-16-103, as enacted by Chapter 73, Laws of Utah
                  2004)
                      63-38f-1604, (Renumbered from 9-16-104, as enacted by Chapter 73, Laws of Utah
                  2004)
                      63-38f-1605, (Renumbered from 9-16-105, as enacted by Chapter 73, Laws of Utah
                  2004)
                      63-38f-1606, (Renumbered from 9-16-106, as enacted by Chapter 73, Laws of Utah
                  2004)
                  REPEALS:
                      9-2-206, as renumbered and amended by Chapter 241, Laws of Utah 1992
                      9-2-801, as renumbered and amended by Chapter 241, Laws of Utah 1992
                      9-2-809, as last amended by Chapter 10, Laws of Utah 1994
                      9-2-1501, as last amended by Chapter 95, Laws of Utah 2000


                      9-2-1502, as last amended by Chapter 95, Laws of Utah 2000
                      9-2-1503, as enacted by Chapter 301, Laws of Utah 1996
                      9-2-1504, as last amended by Chapter 95, Laws of Utah 2000
                      9-2-1505, as last amended by Chapter 95, Laws of Utah 2000
                      9-2-1506, as last amended by Chapter 95, Laws of Utah 2000
                      9-2-1507, as enacted by Chapter 301, Laws of Utah 1996
                      9-2-1705, as last amended by Chapter 159, Laws of Utah 2001
                      9-2-1706, as enacted by Chapter 159, Laws of Utah 2001
                      9-3-205, as last amended by Chapter 109, Laws of Utah 1994
                      9-3-208, as renumbered and amended by Chapter 241, Laws of Utah 1992
                  Uncodified Material Affected:
                  ENACTS UNCODIFIED MATERIAL
                 
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 9-1-102 is amended to read:
                       9-1-102. Definitions.
                      As used in this title:
                      (1) "Department" means the Department of Community and [Economic Development]
                  Culture.
                      (2) "Executive director" means the executive director of the Department of Community
                  and [Economic Development] Culture.
                      Section 2. Section 9-1-201 is amended to read:
                 
Part 2. Department of Community and Culture

                       9-1-201. Department of Community and Culture -- Creation -- Powers and duties.
                      (1) There is created the Department of Community and [Economic Development]
                  Culture.
                      (2) The department shall:
                      (a) be responsible for community and [economic] cultural development within the state;


                      (b) perform [economic] community and cultural development planning for the state;
                      (c) coordinate the program plans of the various divisions within the department;
                      (d) administer and coordinate all state or federal grant programs which are, or become,
                  available for community and [economic] cultural development;
                      (e) administer any other programs over which the department is given administrative
                  supervision by the governor;
                      (f) annually submit a report to the governor and the Legislature; and
                      (g) perform any other duties as provided by the Legislature.
                      (3) The department may solicit and accept contributions of moneys, services, and
                  facilities from any other sources, public or private, but may not use these funds for publicizing
                  the exclusive interest of the donor.
                      (4) Moneys received pursuant to Subsection (3) shall be deposited in the General Fund as
                  restricted revenues of the department.
                      Section 3. Section 9-4-304 is amended to read:
                       9-4-304. Permanent Community Impact Fund Board created -- Members -- Terms
                  -- Chair -- Expenses.
                      (1) There is created within the Department of Community and [Economic Development]
                  Culture the Permanent Community Impact Fund Board composed of 11 members as follows:
                      (a) the chair of the Board of Water Resources or the chair's designee;
                      (b) the chair of the Water Quality Board or the chair's designee;
                      (c) the director of the department or the director's designee;
                      (d) the chair of the State Board of Education or the chair's designee;
                      (e) the chair of the State Board of Regents or the chair's designee;
                      (f) the state treasurer;
                      (g) the chair of the Transportation Commission or the chair's designee;
                      (h) a locally elected official who resides in Carbon, Emery, Grand, or San Juan County;
                      (i) a locally elected official who resides in Juab, Millard, Sanpete, Sevier, Piute, or
                  Wayne County;


                      (j) a locally elected official who resides in Duchesne, Daggett, or Uintah County; and
                      (k) a locally elected official who resides in Beaver, Iron, Washington, Garfield, or Kane
                  County.
                      (2) (a) The members specified under Subsections (1)(h) through [(1)](k) shall be:
                      (i) nominated by the Board of Directors of the Southeastern Association of Governments,
                  Central Utah Association of Governments, Uintah Basin Association of Governments, and
                  Southwestern Association of Governments, respectively; and
                      (ii) appointed by the governor with the consent of the Senate.
                      (iii) Except as required by Subsection (2)(a)(iv), as terms of current board members
                  expire, the governor shall appoint each new member or reappointed member to a four-year term.
                      (iv) Notwithstanding the requirements of Subsection (2)(a)(iii), the governor shall, at the
                  time of appointment or reappointment, adjust the length of terms to ensure that the terms of
                  board members are staggered so that approximately half of the board is appointed every two
                  years.
                      (b) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (3) The terms of office for the members of the impact board specified under Subsections
                  (1)(a) through [(1)](g) shall run concurrently with the terms of office for the councils, boards,
                  committees, commission, departments, or offices from which the members come.
                      (4) The executive director of the department, or the executive director's designee, shall
                  be the chair of the impact board.
                      (5) (a) (i) Members who are not government employees shall receive no compensation or
                  benefits for their services, but may receive per diem and expenses incurred in the performance of
                  the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred


                  in the performance of their official duties from the board at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) (i) Higher education members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties from the committee at the rates established by the Division of
                  Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) Higher education members may decline to receive per diem and expenses for their
                  service.
                      (d) (i) Local government members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties at the rates established by the Division of Finance under
                  Sections 63A-3-106 and 63A-3-107 .
                      (ii) Local government members may decline to receive per diem and expenses for their
                  service.
                      Section 4. Section 9-4-801 is amended to read:
                       9-4-801. Creation.
                      (1) There is created the Homeless Coordinating Committee.
                      (2) (a) The committee shall consist of the state planning coordinator, the state
                  superintendent of public instruction, the chair of the board of trustees of the Utah Housing
                  Corporation, and the executive directors of the Department of Human Services, the Department
                  of Corrections, the Department of Community and [Economic Development] Culture, the
                  Department of Workforce Services, and the Department of Health, or their designees.
                      (b) The governor shall appoint the chair from among these members.
                      (3) The governor may also appoint as members of the committee representatives of local
                  governments, local housing authorities, local law enforcement agencies, and of federal and
                  private agencies and organizations concerned with the homeless, mentally ill, elderly,


                  single-parent families, substance abusers, and persons with a disability.
                      (4) (a) Except as required by Subsection (4)(b), as terms of current committee members
                  expire, the governor shall appoint each new member or reappointed member to a four-year term.
                      (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time
                  of appointment or reappointment, adjust the length of terms to ensure that the terms of committee
                  members are staggered so that approximately half of the committee is appointed every two years.
                      (c) A person appointed under this Subsection (4) may not be appointed to serve more
                  than three consecutive terms.
                      (5) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (6) (a) (i) Members who are not government employees shall receive no compensation or
                  benefits for their services, but may receive per diem and expenses incurred in the performance of
                  the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the committee at the rates established by the
                  Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) (i) Local government members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties at the rates established by the Division of Finance under
                  Sections 63A-3-106 and 63A-3-107 .
                      (ii) Local government members may decline to receive per diem and expenses for their
                  service.
                      Section 5. Section 9-4-904 is amended to read:


                       9-4-904. Creation -- Trustees -- Terms -- Vacancies -- Chair -- Powers -- Quorum --
                  Per diem and expenses.
                      (1) (a) There is created an independent body politic and corporate, constituting a public
                  corporation, known as the "Utah Housing Corporation."
                      (b) The corporation may also be known and do business as the:
                      (i) Utah Housing Finance Association; and
                      (ii) Utah Housing Finance Agency in connection with any contract entered into when that
                  was the corporation's legal name.
                      (c) Any other entity may not use the names described in Subsections (1)(a) and (b)
                  without the express approval of the corporation.
                      (2) The corporation shall be governed by a board of trustees composed of the following
                  nine trustees:
                      (a) three ex officio trustees who shall be:
                      (i) the executive director of the Department of Community and [Economic Development]
                  Culture;
                      (ii) the commissioner of the Department of Financial Institutions or his designee; and
                      (iii) the state treasurer or his designee; and
                      (b) six public trustees, being private citizens of the state, as follows:
                      (i) two people representing the mortgage lending industry;
                      (ii) two people representing the home building and real estate industry; and
                      (iii) two people representing the public at large.
                      (3) The governor shall:
                      (a) appoint the six public trustees of the corporation with the consent of the Senate; and
                      (b) ensure that:
                      (i) the six public trustees are from different counties and are residents of Utah; and
                      (ii) not more than three of the public trustees belong to the same political party.
                      (4) (a) Except as required by Subsection (4)(b), the six public trustees shall be appointed
                  to terms of office of four years each.


                      (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the time
                  of appointment or reappointment, adjust the length of terms to ensure that the terms of
                  corporation trustees are staggered so that approximately half of the board is appointed every two
                  years.
                      (5) (a) Any of the six public trustees of the corporation may be removed from office for
                  cause either by the governor or by an affirmative vote of any six trustees of the corporation.
                      (b) When a vacancy occurs in the board of trustees for any reason, the replacement shall
                  be appointed for the unexpired term.
                      (c) Each public trustee shall hold office for the term of his appointment and until his
                  successor has been appointed and qualified.
                      (d) Any public trustee is eligible for reappointment but may not serve more than two full
                  consecutive terms.
                      (6) (a) The governor shall select the chair of the corporation.
                      (b) The trustees shall elect from among their number a vice chair and other officers they
                  may determine.
                      (7) (a) Five trustees of the corporation constitute a quorum for transaction of business.
                  An affirmative vote of at least five trustees is necessary for any action to be taken by the
                  corporation.
                      (b) A vacancy in the board of trustees may not impair the right of a quorum to exercise
                  all rights and perform all duties of the corporation.
                      (8) (a) (i) Trustees who are not government employees may not receive compensation or
                  benefits for their services, but may receive a reasonable per diem and reimbursement expenses
                  incurred in the performance of the trustee's official duties at the rates established by the board of
                  trustees.
                      (ii) Trustees may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee trustees who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the corporation at the rates established by the


                  Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee trustees may decline to receive per diem and
                  expenses for their service.
                      Section 6. Section 9-9-104.6 is amended to read:
                       9-9-104.6. Participation of state agencies in meetings with tribal leaders.
                      (1) For at least three of the joint meetings described in Subsection 9-9-104.5 (2)(a), the
                  division shall coordinate with representatives of tribal governments and the entities listed in
                  Subsection (2) to provide for the broadest participation possible in the joint meetings.
                      (2) The following may participate in all meetings described in Subsection (1):
                      (a) the chairs of the Native American Legislative Liaison Committee created in Section
                  36-22-1 ;
                      (b) the governor or the governor's designee;
                      (c) a representative appointed by the chief administrative officer of the following:
                      (i) the Department of Health;
                      (ii) the Department of Human Services;
                      (iii) the Department of Workforce Services;
                      (iv) the State Office of Education; and
                      (v) the State Board of Regents.
                      (3) (a) The chief administrative officer of the agencies listed in Subsection (3)(b) shall:
                      (i) designate [by no later than July 1, 2003] the name of a contact person for that agency
                  that can assist in coordinating the efforts of state and tribal governments in meeting the needs of
                  the Native Americans residing in the state; and
                      (ii) notify the division:
                      (A) who is the designated contact person described in Subsection (3)(a)(i); and
                      (B) of any change in who is the designated contact person described in Subsection
                  (3)(a)(i).
                      (b) This Subsection (3) applies to the:
                      (i) Department of Agriculture and Food;


                      (ii) Department of Community and [Economic Development] Culture;
                      (iii) Department of Corrections;
                      (iv) Department of Environmental Quality;
                      (v) Department of Natural Resources;
                      (vi) Department of Public Safety;
                      (vii) Department of Transportation;
                      (viii) Office of the Attorney General; and
                      (ix) State Tax Commission.
                      (c) At the request of the division, a contact person listed in Subsection (3)(b) may
                  participate in a meeting described in Subsection (1).
                      (4) (a) Salaries and expenses of a legislator participating in accordance with this section
                  in a meeting described in Subsection (1) shall be paid in accordance with Section 36-2-2 and
                  Joint Rule 15.03.
                      (b) A state government officer or employee may receive per diem and expenses at the
                  rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 for
                  participating in a meeting described in Subsection (1) if the officer or employee:
                      (i) participates in the meeting in accordance with this section; and
                      (ii) does not receive salary, per diem, or expenses from the officer's or employee's agency
                  for participating in the meeting.
                      (c) A state government officer or employee that participates in a meeting described in
                  Subsection (1) may decline to receive per diem and expenses for participating in the meeting.
                      Section 7. Section 10-9-307 is amended to read:
                       10-9-307. Plans for moderate income housing.
                      (1) The availability of moderate income housing is an issue of statewide concern. To this
                  end:
                      (a) cities should afford a reasonable opportunity for a variety of housing, including
                  moderate income housing, to meet the needs of people desiring to live there; and
                      (b) moderate income housing should be encouraged to allow persons with moderate


                  incomes to benefit from and to fully participate in all aspects of neighborhood and community
                  life.
                      (2) As used in this section:
                      (a) "Moderate income housing" means housing occupied or reserved for occupancy by
                  households with a gross household income equal to or less than 80% of the median gross income
                  for households of the same size in the county in which the city is located.
                      (b) "Plan for moderate income housing" or "plan" means a written document adopted by
                  a city legislative body that includes:
                      (i) an estimate of the existing supply of moderate income housing located within the city;
                      (ii) an estimate of the need for moderate income housing in the city for the next five
                  years as revised biennially;
                      (iii) a survey of total residential zoning;
                      (iv) an evaluation of how existing zoning densities affect opportunities for moderate
                  income housing; and
                      (v) a description of the city's program to encourage an adequate supply of moderate
                  income housing.
                      (3) The legislative body of each city shall, as part of its general plan, adopt a plan for
                  moderate income housing within that city.
                      (4) A plan may provide moderate income housing by any means or combination of
                  techniques which provide a realistic opportunity to meet estimated needs. The plan may include
                  an analysis of why the means or techniques selected provide a realistic opportunity to meet the
                  objectives of this section. [Such] The techniques may include:
                      (a) rezoning for densities necessary to assure the economic viability of inclusionary
                  developments, either through mandatory set asides or density bonuses;
                      (b) infrastructure expansion and rehabilitation that will facilitate the construction of
                  moderate income housing;
                      (c) rehabilitation of existing uninhabitable housing stock;
                      (d) consideration of waiving construction related fees generally imposed by the city;


                      (e) utilization of state or federal funds or tax incentives to promote the construction of
                  moderate income housing;
                      (f) utilization of programs offered by the Utah Housing Corporation within that agency's
                  funding capacity; and
                      (g) utilization of affordable housing programs administered by the Department of
                  Community and [Economic Development] Culture.
                      (5) (a) After adoption of a plan for moderate income housing under Subsection (3), the
                  legislative body of each city shall biennially:
                      (i) review the plan and its implementation; and
                      (ii) prepare a report setting forth the findings of the review.
                      (b) Each report under Subsection (5)(a)(ii) shall include a description of:
                      (i) efforts made by the city to reduce, mitigate, or eliminate local regulatory barriers to
                  moderate income housing;
                      (ii) actions taken by the city to encourage preservation of existing moderate income
                  housing and development of new moderate income housing;
                      (iii) progress made within the city to provide moderate income housing, as measured by
                  permits issued for new units of moderate income housing; and
                      (iv) efforts made by the city to coordinate moderate income housing plans and actions
                  with neighboring municipalities.
                      (c) The legislative body of each city shall send a copy of the report under Subsection
                  (5)(a)(ii) to the Department of Community and [Economic Development] Culture and the
                  association of governments in which the city is located.
                      (6) In a civil action seeking enforcement or claiming a violation of this section, a plaintiff
                  may not recover damages but may be awarded injunctive or other equitable relief only.
                      Section 8. Section 11-17-1.5 is amended to read:
                       11-17-1.5. Purpose of chapter.
                      (1) (a) The purposes of this chapter are to stimulate the economic growth of the state, to
                  promote employment and achieve greater industrial development in the state, to maintain or


                  enlarge domestic or foreign markets for Utah industrial products, to authorize municipalities and
                  counties in the state to facilitate capital formation, finance, acquire, own, lease, or sell projects
                  for the purpose of reducing, abating, or preventing pollution and to protect and promote the
                  health, welfare, and safety of the citizens of the state and to improve local health and the general
                  welfare by inducing corporations, persons, or entities engaged in health care services, including
                  hospitals, nursing homes, extended care facilities, facilities for the care of persons with a physical
                  or mental disability, and administrative and support facilities, to locate, relocate, modernize, or
                  expand in this state and to assist in the formation of investment capital with respect thereto.
                      (b) The Legislature [hereby finds and] declares that the acquisition or financing, or both,
                  of projects under the Utah Industrial Facilities and Development Act and the issuance of bonds
                  under it constitutes a proper public purpose.
                      (2) (a) It is declared that the policy of the state is to encourage the development of free
                  enterprise and entrepreneurship for the purpose of the expansion of employment opportunities
                  and economic development.
                      (b) It is [found and] declared that there exists in the state an inadequate amount of locally
                  managed, pooled venture capital in the private sector available to invest in early stage businesses
                  having high growth potential and that can provide jobs for Utah citizens.
                      (c) It is found that venture capital is required for healthy economic development of
                  sectors of the economy having high growth and employment potential.
                      (d) It is further found that the public economic development purposes of the state and its
                  counties and municipalities can be fostered by the sale of industrial revenue bonds for the
                  purpose of providing funding for locally managed, pooled new venture and economic
                  development funds in accordance with the provisions of this [act] chapter.
                      (e) It is [found and] declared that in order to assure adequate investment of private
                  capital for these uses, cooperation between private enterprise and state and local government is
                  necessary and in the public interest and that the facilitation of capital accumulation is the
                  appropriate activity of the counties and municipalities of this state and also of the [Utah Division
                  of Business and Economic Development, a division of the Utah Department of Community and


                  Economic Development] Governor's Office of Economic Development.
                      (f) It is found that venture capital funds historically, because of the more intensive nature
                  of their relationship with companies in which they invest, tend to concentrate their investments
                  within a relatively close geographical area to their headquarters location.
                      (g) It is found and declared that investors in economic development or new venture
                  investment funds require for the overall security of their investments reasonable diversification
                  of investment portfolios and that, in the course of this diversification, investments are often
                  syndicated or jointly made among several financial institutions or funds. It is expressly found
                  and declared that an economic development or new venture investment fund must from time to
                  time for its optimal profitability and efficiency (which are important for the security and profit of
                  bond purchasers providing funds therefor) cooperate with others who may be located outside [the
                  state] of Utah or the county or municipality where the fund is headquartered in the making of
                  investments and that the fund must be free in the interests of reciprocal relationships with other
                  financial institutions and diversification of risks to invest from time to time in enterprises that are
                  located outside of Utah or the counties or municipalities. It is specifically found that such
                  activity by a locally managed fund, funded in whole or in part with the proceeds of bonds sold
                  under this chapter, is within the public purposes of the state and any county or municipality
                  offering the bonds, provided that the fund locates within [the state of] Utah or the county or
                  municipality its headquarters where its actual investment decisions and management functions
                  occur and limits the aggregate amount of its investments in companies located outside of Utah to
                  an amount that in the aggregate does not exceed the aggregate amount of investments made by
                  institutions and funds located outside of Utah in Utah companies, that the locally managed fund
                  has sponsored or in which it has invested and that it has brought to the attention of investors
                  outside of Utah.
                      Section 9. Section 11-17-18 is amended to read:
                       11-17-18. Powers of Governor's Office of Economic Development.
                      For purposes of this chapter and for the purposes of the Utah Interlocal Cooperation Act,
                  the [Division of Business and Economic Development, a division of the Department of


                  Community and Economic Development,] Governor's Office of Economic Development has all
                  the powers set out in this chapter of, and is subject to the same limitations as, a municipality as
                  though the [division] office were defined as a municipality for purposes of this chapter, but it
                  shall have such powers with respect to economic development or new venture investment fund
                  projects only. It is not authorized to exercise such powers in any manner which will create
                  general obligations of the state [of Utah] or any agency, department, division, or political
                  subdivision thereof. [For purposes of this chapter, its governing body is deemed to be the Board
                  of Business and Economic Development of the Division of Business and Economic
                  Development.]
                      Section 10. Section 17-27-307 is amended to read:
                       17-27-307. Plans for moderate income housing.
                      (1) The availability of moderate income housing is an issue of statewide concern. To this
                  end:
                      (a) counties should afford a reasonable opportunity for a variety of housing, including
                  moderate income housing, to meet the needs of people desiring to live there; and
                      (b) moderate income housing should be located in all areas of a community to allow
                  persons with moderate incomes to benefit from and to fully participate in all aspects of
                  neighborhood and community life.
                      (2) As used in this section:
                      (a) "Moderate income housing" means housing occupied or reserved for occupancy by
                  households with a gross household income equal to or less than 80% of the median gross income
                  of the county statistical area for households of the same size.
                      (b) "Plan for moderate income housing" or "plan" means a written document adopted by
                  a county legislative body that includes, but is not limited to:
                      (i) an estimate of the existing supply of moderate income housing located within the
                  county;
                      (ii) an estimate of the need for moderate income housing in that county for the next five
                  years as revised biennially;


                      (iii) a survey of total residential zoning;
                      (iv) an evaluation of how existing zoning densities affect opportunities for moderate
                  income housing; and
                      (v) a description of the county's program to encourage an adequate supply of moderate
                  income housing.
                      (3) [Before December 31, 1998, each] Each county legislative body shall, as part of its
                  general plan, adopt a plan for moderate income housing within the unincorporated areas of that
                  county.
                      (4) (a) A plan may provide for moderate income housing by any means or combination of
                  techniques which provide a realistic opportunity to meet estimated needs.
                      (b) The plan may include an analysis of why the means or techniques selected provide a
                  realistic opportunity to meet the objectives of this section. [Such]
                      (c) The techniques may include:
                      [(a)] (i) rezoning for densities necessary to assure the economic viability of inclusionary
                  developments, either through mandatory set asides or density bonuses;
                      [(b)] (ii) infrastructure expansion and rehabilitation that will facilitate the construction of
                  moderate income housing;
                      [(c)] (iii) rehabilitation of existing uninhabitable housing stock;
                      [(d)] (iv) consideration of waiving construction related fees generally imposed by the
                  county;
                      [(e)] (v) utilization of state or federal funds or tax incentives to promote the construction
                  of moderate income housing;
                      [(f)] (vi) utilization of programs offered by the Utah Housing Corporation within that
                  agency's funding capacity; and
                      [(g)] (vii) utilization of affordable housing programs administered by the Department of
                  Community and [Economic Development] Culture.
                      (5) (a) After adoption of a plan for moderate income housing under Subsection (3), the
                  legislative body of each county with a population over 25,000 shall biennially:


                      (i) review the plan and its implementation; and
                      (ii) prepare a report setting forth the findings of the review.
                      (b) Each report under Subsection (5)(a)(ii) shall include a description of:
                      (i) efforts made by the county to reduce, mitigate, or eliminate local regulatory barriers to
                  moderate income housing;
                      (ii) actions taken by the county to encourage preservation of existing moderate income
                  housing and development of new moderate income housing;
                      (iii) progress made within the county to provide moderate income housing, as measured
                  by permits issued for new units of moderate income housing; and
                      (iv) efforts made by the county to coordinate moderate income housing plans and actions
                  with neighboring counties.
                      (c) The legislative body of each county with a population over 25,000 shall send a copy
                  of the report under Subsection (5)(a)(ii) to the Department of Community and [Economic
                  Development] Culture and the association of governments in which the county is located.
                      (6) In a civil action seeking enforcement or claiming a violation of this section, a plaintiff
                  may not recover damages but may be awarded injunctive or other equitable relief only.
                      Section 11. Section 17A-2-1318 is amended to read:
                       17A-2-1318. Guaranteed bonds.
                      (1) Guaranteed bonds may be issued in addition to and in excess of the 12% limitation
                  provided for in Section 17A-2-1317 , but only upon the conditions provided for in Subsections (2)
                  and (3).
                      (2) There shall have been filed with and approved by the [Department of Community
                  and] Governor's Office of Economic Development the following:
                      (a) a report to the service district proposing to issue the guaranteed bonds from qualified
                  registered architects or engineers or other persons qualified by experience as may be appropriate
                  to the project involved, setting forth:
                      (i) the estimated or, if available, the actual cost of acquisition, construction, and
                  equipment of the project financed or to be financed including a description of the project;


                      (ii) the principal amount of guaranteed bonds to be issued, the date and amount of each
                  stated maturity of them and, set forth separately, the same information with respect to any
                  guaranteed bonds of the service district as may be outstanding, including as to such outstanding
                  guaranteed bonds the rates of interest they bear;
                      (iii) the amount and the estimated amount of the annual debt service for each year during
                  the life of all guaranteed bonds issued and then intended to be issued to finance all or any part of
                  the project; and
                      (iv) the date or estimated date of the completion of the project;
                      (b) a copy, certified by the recording officer of the governing authority of the service
                  district of the proposed guarantee by one or more taxpayers owning property within the
                  boundaries of the service district of debt service on the guaranteed bonds, together with an
                  opinion of counsel to the effect that the guarantee, when executed, will be the legal and binding
                  obligation of the taxpayer or taxpayers in accordance with its tenor and terms; and
                      (c) evidence satisfactory to the [Department of Community and] Governor's Office of
                  Economic Development from the taxpayer or taxpayers guaranteeing the bonds as to the financial
                  ability of the taxpayer or taxpayers to perform under the guarantee.
                      (3) If the [Department of Community and] Governor's Office of Economic Development
                  [shall approve] approves the issuance of the guaranteed bonds, it shall indicate its approval upon
                  a duplicate original of the proceedings and return the same to the service district. Upon the filing
                  of this approval in the office of the county recorder in which the governing authority is located,
                  the principal amount of guaranteed bonds may be issued, but only upon compliance with the
                  election requirements of Section 17A-2-1322 .
                      (4) If the principal amount of any guaranteed bonds which having once been issued,
                  remain outstanding but by their terms no longer enjoy the benefit of the guarantee, shall be
                  included in the determination of bonded indebtedness for the purpose of the 12% limitation
                  contained in Section 17A-2-1317 . The service district shall on July 1st of each year file with the
                  department of community affairs a report certifying:
                      (a) the total amount of bonds and other debt then outstanding and subject to the 12%


                  limitation of Section 17A-2-1317 ;
                      (b) the total amount of guaranteed bonds then outstanding and not subject to such 12%
                  limitation; and
                      (c) the total amount of bonds which, during the preceding 12 months, were deemed by
                  their terms to no longer enjoy the benefit of the guarantee.
                      Section 12. Section 19-3-301 is amended to read:
                       19-3-301. Restrictions on nuclear waste placement in state.
                      (1) The placement, including transfer, storage, decay in storage, treatment, or disposal,
                  within the exterior boundaries of Utah of high-level nuclear waste or greater than class C
                  radioactive waste is prohibited.
                      (2) Notwithstanding Subsection (1) the governor, after consultation with the county
                  executive and county legislative body of the affected county and with concurrence of the
                  Legislature, may specifically approve the placement as provided in this part, but only if:
                      (a) (i) the federal Nuclear Regulatory Commission issues a license, pursuant to the
                  Nuclear Waste Policy Act, 42 U.S.C.A. 10101 et seq., or the Atomic Energy Act, 42 U.S.C.A.
                  2011 et seq., for the placement within the exterior boundaries of Utah of high-level nuclear waste
                  or greater than class C radioactive waste; and
                      (ii) the authority of the federal Nuclear Regulatory Commission to grant a license under
                  Subsection (2)(a)(i) is clearly upheld by a final judgment of a court of competent jurisdiction; or
                      (b) an agency of the federal government is transporting the waste, and all state and
                  federal requirements to proceed with the transportation have been met.
                      (3) The requirement for the approval of a final court of competent jurisdiction shall be
                  met in all of the following categories, in order for a state license proceeding regarding waste to
                  begin:
                      (a) transfer or transportation, by rail, truck, or other mechanisms;
                      (b) storage, including any temporary storage at a site away from the generating reactor;
                      (c) decay in storage;
                      (d) treatment; and


                      (e) disposal.
                      (4) (a) Upon satisfaction of the requirements of Subsection (2)(a), for each category
                  listed in Subsection (3), or satisfaction of the requirements under Subsection (2)(b), the governor,
                  with the concurrence of the attorney general, shall certify in writing to the executive director of
                  the Department of Environmental Quality that all of the requirements have been met, and that
                  any necessary state licensing processes may begin.
                      (b) Separate certification under this Subsection (4) shall be given for each category in
                  Subsection (3).
                      (5) (a) The department shall make, by rule, a determination of the dollar amount of the
                  health and economic costs expected to result from a reasonably foreseeable accidental release of
                  waste involving a transfer facility or storage facility, or during transportation of waste, within the
                  exterior boundaries of the state. The department may initiate rulemaking under this Subsection
                  (5)(a) on or after March 15, 2001.
                      (b) (i) The department shall also determine the dollar amount currently available to cover
                  the costs as determined in Subsection (5)(a):
                      (A) under nuclear industry self-insurance;
                      (B) under federal insurance requirements; and
                      (C) in federal monies.
                      (ii) The department may not include any calculations of federal monies that may be
                  appropriated in the future in determining the amount under Subsection (5)(b)(i).
                      (c) The department shall use the information compiled under Subsections (5)(a) and (b)
                  to determine the amount of unfunded potential liability in the event of a release of waste from a
                  storage or transfer facility, or a release during the transportation of waste.
                      (6) (a) State agencies may not, for the purpose of providing any goods, services, or
                  municipal-type services to a storage facility or transfer facility, or to any organization engaged in
                  the transportation of waste, enter into any contracts or any other agreements prior to:
                      (i) the satisfaction of the conditions in Subsection (4); and
                      (ii) the executive director of the department having certified that the requirements of


                  Sections 19-3-304 through 19-3-308 have been met for the purposes of a license application
                  proceeding for a storage facility or transfer facility.
                      (b) Political subdivisions of the state may not enter into any contracts or any other
                  agreements for the purpose of providing any goods, services, or municipal-type services to a
                  storage facility or transfer facility, or to any organization engaged in the transportation of waste.
                      (c) This Subsection (6) does not prohibit a state agency from exercising the regulatory
                  authority granted to it by law.
                      (7) (a) Notwithstanding any other provision of law, any political subdivision may not be
                  formed pursuant to the laws of Utah for the purpose of providing any goods, services, or
                  municipal-type services to a storage facility or transfer facility prior to the satisfaction of the
                  conditions in Subsection (4). These political subdivisions include:
                      (i) a cooperative;
                      (ii) a special district authorized by Title 17A, Special Districts;
                      (iii) a limited purpose local governmental entities authorized by Title 17, Counties;
                      (iv) any joint power agreement authorized by Title 11, Cities, Counties, and Local
                  Taxing Units; and
                      (v) the formation of a municipality, or any authority of a municipality authorized by Title
                  10, Utah Municipal Code.
                      (b) (i) Subsection (7)(a) shall be strictly interpreted. Any political subdivision authorized
                  and formed under the laws of the state on or after March 15, 2001 which subsequently contracts
                  to, or in any manner agrees to provide, or does provide goods, services, or municipal-type
                  services to a storage facility or transfer facility is formed in violation of Subsection (7)(a).
                      (ii) If the conditions of Subsection (7)(b)(i) apply, the persons who formed the political
                  subdivision are considered to have knowingly violated a provision of this part, and the penalties
                  of Section 19-3-312 apply.
                      (8) (a) An organization may not be formed for the purpose of providing any goods,
                  services, or municipal-type services to a storage facility or transfer facility prior to:
                      (i) the satisfaction of the conditions in Subsection (4); and


                      (ii) the executive director of the department having certified that the requirements of
                  Sections 19-3-304 through 19-3-308 have been met.
                      (b) A foreign organization may not be registered to do business in the state for the
                  purpose of providing any goods, services, or municipal-type services to a storage facility or
                  transfer facility prior to:
                      (i) the satisfaction of the conditions in Subsection (4); and
                      (ii) the executive director of the department having certified that the requirements of
                  Sections 19-3-304 through 19-3-308 have been met.
                      (c) The prohibitions of Subsections (8)(a) and (b) shall be strictly applied, and:
                      (i) the formation of a new organization or registration of a foreign organization within
                  the state, any of whose purposes are to provide goods, services, or municipal-type services to a
                  storage facility or transfer facility may not be licensed or registered in the state, and the local or
                  foreign organization is void and does not have authority to operate within the state;
                      (ii) any organization which is formed or registered on or after March 15, 2001, and which
                  subsequently contracts to, or in any manner agrees to provide, or does provide goods, services, or
                  municipal-type services to a storage facility or transfer facility has been formed or registered in
                  violation of Subsection (8)(a) or (b) respectively; and
                      (iii) if the conditions of Subsection (8)(c)(ii) apply, the persons who formed the
                  organization or the principals of the foreign organization, are considered to have knowingly
                  violated a provision of this part, and are subject to the penalties in Section 19-3-312 .
                      (9) (a) (i) Any contract or agreement to provide any goods, services, or municipal-type
                  services to any organization engaging in, or attempting to engage in the placement of high-level
                  nuclear waste or greater than class C radioactive waste at a storage facility or transfer facility
                  within the state are declared to be against the greater public interest, health, and welfare of the
                  state, by promoting an activity which has the great potential to cause extreme public harm.
                      (ii) These contracts or agreements under Subsection (9)(a)(i), whether formal or
                  informal, are declared to be void from inception, agreement, or execution as against public
                  policy.


                      (b) (i) Any contract or other agreement to provide goods, services, or municipal-type
                  services to storage or transfer facilities may not be executed within the state.
                      (ii) Any contract or other agreement, existing or executed on or after March 15, 2001, is
                  considered void from the time of agreement or execution.
                      (10) (a) All contracts and agreements under Subsection (10)(b) are assessed an annual
                  transaction fee of 75% of the gross value of the contract to the party providing the goods,
                  services, or municipal-type services to the storage facility or transfer facility or transportation
                  entity. The fee shall be assessed per calendar year, and is payable on a prorated basis on or
                  before the last day of each month in accordance with rules established under Subsection (10)(d),
                  and as follows:
                      (i) 25% of the gross value of the contract to the department; and
                      (ii) 50% of the gross value of the contract to the Department of Community and
                  [Economic Development] Culture, to be used by the Utah Division of Indian Affairs as provided
                  in Subsection (11).
                      (b) Contracts and agreements subject to the fee under Subsection (10)(a) are those
                  contracts and agreements to provide goods, services, or municipal-type services to a storage or
                  transfer facility, or to any organization engaged in the transportation of high-level nuclear waste
                  or greater than class C radioactive waste to a transfer facility or storage facility, and which:
                      (i) are in existence on March 15, 2001; or
                      (ii) become effective notwithstanding Subsection (9)(a).
                      (c) Any governmental agency which regulates the charges to consumers for services
                  provided by utilities or other organizations shall require the regulated utility or organization to
                  include the fees under Subsection (10)(a) in the rates charged to the purchaser of the goods,
                  services, or municipal-type services affected by Subsection (10)(b).
                      (d) (i) The department, in consultation with the State Tax Commission, shall establish
                  rules for the valuation of the contracts and assessment and collection of the fees, and other rules
                  as necessary to determine the amount of and collection of the fee under Subsection (10)(a). The
                  department may initiate rulemaking under this Subsection (10)(d)(i) on or after March 15, 2001.


                      (ii) Persons and organizations holding contracts affected by Subsection (10)(b) shall
                  make a good faith estimate of the fee under Subsection (10)(a) for calender year 2001, and remit
                  that amount to the department on or before July 31, 2001.
                      (11) (a) The portion of the fees imposed under Subsection (10) which is to be paid to the
                  Department of Community and [Economic Development] Culture for use by the Utah Division of
                  Indian Affairs shall be used for establishment of a statewide community and economic
                  development program for the tribes of Native American people within the exterior boundaries of
                  the state who have by tribal procedure established a position rejecting siting of any nuclear waste
                  facility on their reservation lands.
                      (b) The program under Subsection (11)(a) shall include:
                      (i) educational services and facilities;
                      (ii) health care services and facilities;
                      (iii) programs of economic development;
                      (iv) utilities;
                      (v) sewer;
                      (vi) street lighting;
                      (vii) roads and other infrastructure; and
                      (viii) oversight and staff support for the program.
                      (12) It is the intent of the Legislature that this part does not prohibit or interfere with a
                  person's exercise of the rights under the First Amendment to the Constitution of the United States
                  or under Utah Constitution Article I, Sec. 15, by an organization attempting to site a storage
                  facility or transfer facility within the borders of the state for the placement of high-level nuclear
                  waste or greater than class C radioactive waste.
                      Section 13. Section 19-6-807 is amended to read:
                       19-6-807. Special revenue fund -- Creation -- Deposits.
                      (1) There is created a restricted special revenue fund entitled the "Waste Tire Recycling
                  Fund."
                      (2) The fund shall consist of:


                      (a) the proceeds of the fee imposed under Section 19-6-805 ;
                      (b) penalties collected under this part; and
                      (c) assets transferred to and loan repayments deposited in the fund pursuant to Section
                  19-6-824 .
                      (3) Money in the fund shall be used for:
                      (a) partial reimbursement of the costs of transporting, processing, recycling, or disposing
                  of waste tires as provided in this part;
                      (b) payment of administrative costs of local health departments as provided in Section
                  19-6-817 ;
                      (c) payment of costs incurred by the Division of Finance in accounting for and tracking
                  outstanding loans made under the Waste Tire Recycling Industrial Assistance Loan Program; and
                      (d) payment of costs incurred by the [Department of Community and] Governor's Office
                  of Economic Development in collecting outstanding loans made under the Waste Tire Recycling
                  Industrial Assistance Loan Program.
                      (4) The Legislature may appropriate money from the fund to pay for costs of the
                  Department of Environmental Quality in administering and enforcing this part.
                      Section 14. Section 19-6-824 is amended to read:
                       19-6-824. Transfer of assets and liabilities from Waste Tire Recycling Industrial
                  Assistance Loan Fund to restricted special revenue fund -- Administration of outstanding
                  loans.
                      (1) The assets and liabilities of the Waste Tire Recycling Industrial Assistance Loan
                  Fund shall be transferred to the restricted special revenue fund.
                      (2) The Division of Finance shall account for and track any outstanding loans made
                  under the Waste Tire Recycling Industrial Assistance Loan Program.
                      (3) (a) The [Department of Community and] Governor's Office of Economic
                  Development shall administer the collection of any outstanding loans made under the Waste Tire
                  Recycling Industrial Assistance Loan Program.
                      (b) Any loan repayments shall be deposited in the fund.


                      Section 15. Section 19-9-104 is amended to read:
                       19-9-104. Creation of authority -- Members.
                      (1) (a) The authority comprises ten members. If the requirements of Section 19-9-103 are
                  met, the governor shall, with the consent of the Senate, appoint six members of the authority
                  from the public-at-large.
                      (b) The remaining four members of the authority are:
                      (i) the executive director of the Department of Environmental Quality;
                      (ii) the [executive director] director of the [Department of Community and] Governor's
                  Office of Economic Development or the director's designee;
                      (iii) the executive director of the Department of Natural Resources; and
                      (iv) the executive director of the Department of Transportation.
                      (2) Public-at-large members, no more than three of whom shall be from the same
                  political party, shall be appointed to six-year terms of office, subject to removal by the governor
                  with or without cause.
                      (3) The governor shall name one public-at-large member as chairman of the authority
                  responsible for the call and conduct of authority meetings.
                      (4) The authority may elect other officers as necessary.
                      (5) Five members of the authority present at a properly noticed meeting constitute a
                  quorum for the transaction of official authority business.
                      (6) Public-at-large members are entitled to per diem and expenses for each day devoted
                  to authority business at the rates established by the director of the Division of Finance under
                  Sections 63A-3-106 and 63A-3-107 .
                      Section 16. Section 35A-1-206 is amended to read:
                       35A-1-206. State Council on Workforce Services -- Appointment -- Membership --
                  Terms of members -- Compensation.
                      (1) There is created a State Council on Workforce Services that shall:
                      (a) perform the activities described in Subsection (8);
                      (b) advise on issues requested by the department and the Legislature; and


                      (c) make recommendations to the department regarding:
                      (i) the implementation of Chapters 2, 3, and 5; and
                      (ii) the coordination of apprenticeship training.
                      (2) (a) The council shall consist of the following voting members:
                      (i) each chair of a regional workforce services council appointed under Section
                  35A-2-103 ;
                      (ii) the superintendent of public instruction or the superintendent's designee;
                      (iii) the commissioner of higher education or the commissioner's designee; and
                      (iv) the following members appointed by the governor in consultation with the executive
                  director:
                      (A) four representatives of small employers as defined by rule by the department;
                      (B) four representatives of large employers as defined by rule by the department;
                      (C) four representatives of employees or employee organizations, including at least one
                  representative from nominees suggested by public employees organizations;
                      (D) two representatives of the clients served under this title including community-based
                  organizations;
                      (E) a representative of veterans in the state; and
                      (F) the executive director of the Utah State Office of Rehabilitation.
                      (b) The following shall serve as nonvoting ex officio members of the council:
                      (i) the executive director or the executive director's designee;
                      (ii) a legislator appointed by the governor from nominations of the speaker of the House
                  of Representatives and president of the Senate;
                      (iii) the executive director of the Department of Human Services;
                      (iv) the [executive director] director of the [Department of Community and] Governor's
                  Office of Economic Development or the director's designee; and
                      (v) the executive director of the Department of Health.
                      (3) (a) The governor shall appoint one nongovernmental member from the council to be
                  the chair.


                      (b) The chair shall serve at the pleasure of the governor.
                      (4) (a) A member appointed by the governor shall serve a term of four years and may be
                  reappointed to one additional term.
                      (b) A member shall continue to serve until the member's successor has been appointed
                  and qualified.
                      (c) Except as provided in Subsection (4)(d), as terms of council members expire, the
                  governor shall appoint each new member or reappointed member to a four-year term.
                      (d) Notwithstanding the requirements of Subsection (4)(c), the governor shall, at the time
                  of appointment or reappointment, adjust the length of terms to ensure that the terms of council
                  members are staggered so that approximately one half of the council is appointed every two
                  years.
                      (e) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (5) A majority of the voting members constitutes a quorum for the transaction of
                  business.
                      (6) (a) (i) A public member may not receive compensation for the member's services, but
                  may receive per diem and expenses incurred in the performance of the member's official duties at
                  the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) A public member may decline to receive per diem and expenses for the member's
                  service.
                      (b) (i) A state government member who does not receive salary, per diem, or expenses
                  from the state for the member's service may receive per diem and expenses incurred in the
                  performance of the member's official duties as a member at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) A state government member who is a member because of the member's state
                  government position may not receive per diem or expenses for the member's service.
                      (iii) A state government member may decline to receive per diem and expenses for the
                  member's service.


                      (c) A legislator on the council shall receive compensation and expenses as provided by
                  law and legislative rule.
                      (d) A higher education member who does not receive salary, per diem, or expenses from
                  the entity that the member represents for the member's service may receive per diem and
                  expenses incurred in the performance of the member's official duties from the council at the rates
                  established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (e) (i) A local government member who does not receive salary, per diem, or expenses
                  from the entity that the member represents for the member's service may receive per diem and
                  expenses incurred in the performance of the member's official duties at the rates established by
                  the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) A local government member may decline to receive per diem and expenses for the
                  member's service.
                      (7) The department shall provide staff and administrative support to the council at the
                  direction of the executive director.
                      (8) The council shall:
                      (a) develop a state workforce services plan in accordance with Section 35A-1-207 ;
                      (b) review regional workforce services plans to certify consistency with state policy
                  guidelines;
                      (c) work cooperatively with regional councils on workforce services to oversee regional
                  workforce services area operations and to ensure that services are being delivered in accordance
                  with regional workforce services plans;
                      (d) oversee the department's provision of technical assistance to the regional workforce
                  services areas;
                      (e) evaluate program performance, customer satisfaction, and other indicators to identify
                  program strengths and weaknesses;
                      (f) based on the evaluation conducted under Subsection (8)(e) develop plans to improve
                  program outcomes;
                      (g) improve the understanding and visibility of state workforce services efforts through


                  external and internal marketing strategies;
                      (h) make an annual report of accomplishments to the governor and the Legislature related
                  to the activities of the department;
                      (i) issue other studies, reports, or documents the council considers advisable that are not
                  required under Subsection (8)(h);
                      (j) coordinate the planning and delivery of workforce development services with public
                  education, higher education, vocational rehabilitation, and human services; and
                      (k) perform other responsibilities within the scope of workforce services as requested by:
                      (i) the Legislature;
                      (ii) the governor; or
                      (iii) the executive director.
                      Section 17. Section 35A-3-103 is amended to read:
                       35A-3-103. Division responsibilities.
                      The division shall:
                      (1) administer public assistance programs assigned by the Legislature and the governor;
                      (2) determine eligibility in accordance with the requirements of this chapter for public
                  assistance programs assigned to it by the Legislature or the governor;
                      (3) cooperate with the federal government in the administration of public assistance
                  programs;
                      (4) administer the Utah state employment service in accordance with Section 35A-3-115 ;
                      (5) provide for the compilation of necessary or desirable information, statistics, and
                  reports;
                      (6) perform other duties and functions required by law;
                      (7) monitor the application of eligibility policy;
                      (8) develop personnel training programs for more effective and efficient operation of all
                  programs under the administration of the division;
                      (9) provide refugee resettlement services;
                      (10) provide child care assistance for children; and


                      (11) provide services and support that enable clients to qualify for affordable housing in
                  cooperation with:
                      (a) the Utah Housing Corporation;
                      (b) the Division of Housing and Community Development within the Department of
                  Community and [Economic Development] Culture; and
                      (c) local housing authorities.
                      Section 18. Section 35A-3-203 is amended to read:
                       35A-3-203. Functions and duties of office -- Annual report.
                      The office shall:
                      (1) assess critical child care needs throughout the state on an ongoing basis and focus its
                  activities on helping to meet the most critical needs;
                      (2) provide child care subsidy services for income-eligible children through age 12 and
                  for income-eligible children with disabilities through age 18;
                      (3) provide information:
                      (a) to employers for the development of options for child care in the work place; and
                      (b) for educating the public in obtaining quality child care;
                      (4) coordinate services for quality child care training and child care resource and referral
                  core services;
                      (5) apply for, accept, or expend gifts or donations from public or private sources;
                      (6) provide administrative support services to the committee;
                      (7) work collaboratively with the following for the delivery of quality child care and
                  early childhood programs, and school age programs throughout the state:
                      (a) the State Board of Education;
                      (b) the Department of Community and [Economic Development] Culture; and
                      (c) the Department of Health;
                      (8) research child care programs and public policy that will improve quality and
                  accessibility and that will further the purposes of the office and child care, early childhood
                  programs, and school age programs;


                      (9) provide planning and technical assistance for the development and implementation of
                  programs in communities that lack child care, early childhood programs, and school age
                  programs;
                      (10) provide organizational support for the establishment of nonprofit organizations
                  approved by the Child Care Advisory Committee, created in Section 35A-3-205 ; and
                      (11) provide a written report on the status of child care in Utah to the Legislature by
                  November 1 of each year through the Workforce Services and Community and Economic
                  Development Interim Committee.
                      Section 19. Section 35A-3-205 is amended to read:
                       35A-3-205. Creation of committee.
                      (1) There is created a Child Care Advisory Committee.
                      (2) The committee shall counsel and advise the office in fulfilling its statutory
                  obligations to include:
                      (a) a review of and recommendations on the office's annual budget;
                      (b) recommendations on how the office might best respond to child care needs
                  throughout the state; and
                      (c) recommendations on the use of new monies that come into the office, including those
                  for the Child Care Fund.
                      (3) The committee is composed of the following members, with special attention given
                  to insure diversity and representation from both urban and rural groups:
                      (a) one expert in early childhood development;
                      (b) one child care provider who operates a center;
                      (c) one child care provider who operates a family child care business;
                      (d) one parent who receives a child care subsidy from the office and is representative of
                  single-parent households with children through age 12;
                      (e) one representative of two-parent households with children through age 12 using child
                  care;
                      (f) one representative from the public at-large;


                      (g) one representative of the State Office of Education;
                      (h) one representative of the Department of Health;
                      (i) one representative of the Department of Human Services;
                      (j) one representative of the Department of Community and [Economic Development]
                  Culture;
                      (k) two representatives from the corporate community, one who is a recent "Family
                  Friendly" award winner and who received the award because of efforts in the child care arena;
                      (l) two representatives from the small business community;
                      (m) one representative from child care advocacy groups;
                      (n) one representative of children with disabilities;
                      (o) one representative from the state Head Start Association appointed by the association;
                      (p) one representative from each child care provider association; and
                      (q) one representative of a child care resource and referral center appointed by the
                  organization representing child care resource and referral agencies.
                      (4) (a) The executive director shall appoint the members designated in Subsections (3)(a)
                  through (f) and (k) through (n).
                      (b) The head of the respective departments shall appoint the members referred to in
                  Subsections (3)(g) through (j).
                      (c) Each child care provider association shall appoint its respective member referred to in
                  Subsection (3)(p).
                      (5) (a) Except as required by Subsection (5)(b), as terms of current committee members
                  expire, the appointing authority shall appoint each new member or reappointed member to a
                  four-year term.
                      (b) Notwithstanding the requirements of Subsection (5)(a), the appointing authority shall,
                  at the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
                  committee members are staggered so that approximately half of the committee is appointed every
                  two years.
                      (6) When a vacancy occurs in the membership for any reason, including missing three


                  consecutive meetings where the member has not been excused by the chair prior to or during the
                  meeting, the replacement shall be appointed for the unexpired term.
                      (7) A majority of the members constitutes a quorum for the transaction of business.
                      (8) (a) The executive director shall select a chair from the committee membership.
                      (b) A chair may serve no more than two one-year terms as chair.
                      (9) (a) Members who are not government employees may not receive compensation or
                  benefits for their services, but may receive per diem and expenses incurred in the performance of
                  the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (b) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the committee at the rates established by the
                  Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (c) Members identified in Subsections (9)(a) and (b) may decline to receive per diem and
                  expenses for their service.
                      Section 20. Section 35A-3-309 is amended to read:
                       35A-3-309. Information regarding home ownership.
                      (1) The division shall provide information and service coordination to assist a client to
                  obtain affordable housing.
                      (2) The information and services may include:
                      (a) information from the Utah Housing Corporation and the Division of Housing and
                  Community Development within the Department of Community and [Economic Development]
                  Culture regarding special housing programs, including programs for first-time home buyers and
                  persons with low and moderate incomes and the eligibility requirements for those programs;
                      (b) referrals to programs operated by volunteers from the real estate industry that assist
                  clients in obtaining affordable housing, including information on home ownership, down
                  payments, closing costs, and credit requirements; and
                      (c) referrals to housing programs operated by municipalities, counties, local housing


                  authorities, and nonprofit housing organizations that assist individuals to obtain affordable
                  housing, including first-time home ownership.
                      Section 21. Section 35A-4-312 is amended to read:
                       35A-4-312. Records.
                      (1) (a) Each employing unit shall keep true and accurate work records containing any
                  information the department may prescribe by rule.
                      (b) The records shall be open to inspection and subject to being copied by the division or
                  its authorized representatives at a reasonable time and as often as may be necessary.
                      (c) The employing unit shall make the records available in the state for three years after
                  the calendar year in which the services were rendered.
                      (2) The division may require from an employing unit any sworn or unsworn reports with
                  respect to persons employed by it that the division considers necessary for the effective
                  administration of this chapter.
                      (3) Except as provided in this section or in Sections 35A-4-103 and 35A-4-106 ,
                  information obtained under this chapter or obtained from an individual may not be published or
                  open to public inspection in any manner revealing the employing unit's or individual's identity.
                      (4) (a) The information obtained by the division under this section may not be used in
                  court or admitted into evidence in an action or proceeding, except:
                      (i) in an action or proceeding arising out of this chapter;
                      (ii) in an action or proceeding by the Labor Commission to enforce the provisions of
                  Title 34, Chapter 23, Employment of Minors, Chapter 28, Payment of Wages, Chapter 40, Utah
                  Minimum Wage Act, or Title 34A, Utah Labor Code, [or Chapters 23, 28, and 40 of Title 34,
                  Labor in General,] provided the Labor Commission enters into a written agreement with the
                  division under Subsection (6)(b); or
                      (iii) under the terms of a court order obtained under Subsection 63-2-202 (7) and Section
                  63-2-207 of the Government Records Access and Management Act.
                      (b) The information obtained by the division under this section shall be disclosed to:
                      (i) a party to an unemployment insurance hearing before an administrative law judge of


                  the department or a review by the Workforce Appeals Board to the extent necessary for the
                  proper presentation of the party's case; or
                      (ii) an employer, upon request in writing for any information concerning claims for
                  benefits with respect to the employer's former employees.
                      (5) The information obtained by the division under this section may be disclosed to:
                      (a) an employee of the department in the performance of the employee's duties in
                  administering this chapter or other programs of the department;
                      (b) an employee of the Labor Commission for the purpose of carrying out the programs
                  administered by the Labor Commission;
                      (c) an employee of the governor's office and other state governmental agencies
                  administratively responsible for statewide economic development, to the extent necessary for
                  economic development policy analysis and formulation;
                      (d) an employee of other governmental agencies that are specifically identified and
                  authorized by federal or state law to receive the information for the purposes stated in the law
                  authorizing the employee of the agency to receive the information;
                      (e) an employee of a governmental agency or workers' compensation insurer to the extent
                  the information will aid in the detection or avoidance of duplicate, inconsistent, or fraudulent
                  claims against a workers' compensation program, public assistance funds, or the recovery of
                  overpayments of workers' compensation or public assistance funds;
                      (f) an employee of a law enforcement agency to the extent the disclosure is necessary to
                  avoid a significant risk to public safety or in aid of a felony criminal investigation;
                      (g) an employee of the State Tax Commission or the Internal Revenue Service for the
                  purposes of audit verification or simplification, state or federal tax compliance, verification of
                  Standard Industry Codes, and statistics;
                      (h) an employee or contractor of the department or an educational institution, or other
                  governmental entity engaged in workforce investment and development activities under the
                  Workforce Investment Act of 1998 for the purpose of coordinating services with the department,
                  evaluating the effectiveness of those activities, and measuring performance;


                      (i) an employee of the [Department of Community and] Governor's Office of Economic
                  Development, for the purpose of periodically publishing in the Directory of Business and
                  Industry, the name, address, telephone number, number of employees by range, Standard
                  Industrial Code, and type of ownership of Utah employers;
                      (j) the public for any purpose following a written waiver by all interested parties of their
                  rights to nondisclosure; or
                      (k) an individual whose wage data has been submitted to the department by an employer,
                  so long as no information other than the individual's wage data and the identity of the party who
                  submitted the information is provided to the individual.
                      (6) Disclosure of private information under Subsection (4)(a)(ii) or Subsection (5), with
                  the exception of Subsections (5)(a) and (f), shall be made only if:
                      (a) the division determines that the disclosure will not have a negative effect on the
                  willingness of employers to report wage and employment information or on the willingness of
                  individuals to file claims for unemployment benefits; and
                      (b) the agency enters into a written agreement with the division in accordance with rules
                  made by the department.
                      (7) (a) The employees of a division of the department other than the Division of
                  Workforce Information and Payment Services or an agency receiving private information from
                  the division under this chapter are subject to the same requirements of privacy and confidentiality
                  and to the same penalties for misuse or improper disclosure of the information as employees of
                  the division.
                      (b) Use of private information obtained from the department by a person, or for a
                  purpose other than one authorized in Subsection (4) or (5) violates Subsection 76-8-1301 (4).
                      Section 22. Section 41-1a-405 is amended to read:
                       41-1a-405. License plate slogan -- Purpose -- Selection.
                      (1) The slogan required by Section 41-1a-402 shall be a brief slogan designed to promote
                  the recreational, scenic, historic, or tourist attractions of the state.
                      (2) (a) The slogan shall be selected by the commission pursuant to its procedures.


                      (b) The commission in selecting the slogan shall consult with all interested state agencies
                  including:
                      (i) the Utah Highway Patrol;
                      [(ii) the Division of Travel Development;]
                      [(iii)] (ii) the [Department of Community and] Governor's Office of Economic
                  Development; and
                      [(iv)] (iii) the Division of Parks and Recreation.
                      Section 23. Section 46-4-503 is amended to read:
                       46-4-503. Government products and services provided electronically.
                      (1) Notwithstanding Section 46-4-501 , a state governmental agency that administers one
                  or more of the following transactions shall allow those transactions to be conducted
                  electronically:
                      (a) an application for or renewal of a professional or occupational license issued under
                  Title 58, Occupations and Professions;
                      (b) the renewal of a drivers license;
                      (c) an application for a hunting or fishing license;
                      (d) the filing of:
                      (i) a return under Title 59, Chapter 10, Individual Income Tax Act or 12, Sales and Use
                  Tax Act;
                      (ii) a court document, as defined by the Judicial Council; or
                      (iii) a document under Title 70A, Uniform Commercial Code;
                      (e) a registration for:
                      (i) a product; or
                      (ii) a brand;
                      (f) a renewal of a registration of a motor vehicle;
                      (g) a registration under:
                      (i) Title 16, Corporations;
                      (ii) Title 42, Names; or


                      (iii) Title 48, Partnership; or
                      (h) submission of an application for benefits:
                      (i) under Title 35A, Chapter 3, Employment Support Act;
                      (ii) under Title 35A, Chapter 4, Employment Security Act; or
                      (iii) related to accident and health insurance.
                      (2) The state system of public education, in coordination with the Utah Education
                  Network, shall make reasonable progress toward making the following services available
                  electronically:
                      (a) secure access by parents and students to student grades and progress reports;
                      (b) e-mail communications with:
                      (i) teachers;
                      (ii) parent-teacher associations; and
                      (iii) school administrators;
                      (c) access to school calendars and schedules; and
                      (d) teaching resources that may include:
                      (i) teaching plans;
                      (ii) curriculum guides; and
                      (iii) media resources.
                      (3) A state governmental agency shall:
                      (a) in carrying out the requirements of this section, take reasonable steps to ensure the
                  security and privacy of records that are private or controlled as defined by Title 63, Chapter 2,
                  Government Records Access and Management Act;
                      (b) in addition to those transactions listed in Subsections (1) and (2), determine any
                  additional services that may be made available to the public through electronic means; and
                      (c) as part of the agency's information technology plan required by Section 63D-1a-303 ,
                  report on the progress of compliance with Subsections (1) through (3).
                      (4) Notwithstanding the other provisions of this part, a state governmental agency is not
                  required by this part to conduct a transaction electronically if:


                      (a) conducting the transaction electronically is not required by federal law; and
                      (b) conducting the transaction electronically is:
                      (i) impractical;
                      (ii) unreasonable; or
                      (iii) not permitted by laws pertaining to privacy or security.
                      (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
                  access to diverse services and agencies at one location including virtual colocation.
                      (b) State agencies that provide services or offer direct assistance to the business
                  community shall participate in the establishment, maintenance, and enhancement of an integrated
                  Utah business web portal known as Business.utah.gov. The purpose of the business web portal is
                  to provide "one-stop shop" assistance to businesses.
                      (c) State agencies shall partner with other governmental and nonprofit agencies whose
                  primary mission is to provide services or offer direct assistance to the business community in
                  Utah in fulfilling the requirements of this section.
                      (d) The following state [agencies] entities shall comply with the provisions of this
                  Subsection (5):
                      (i) [Department of Community and] Governor's Office of Economic Development, which
                  shall serve as the managing partner for the website;
                      (ii) Department of Workforce Services;
                      (iii) Department of Commerce;
                      (iv) Tax Commission;
                      (v) Department of Administrative Services - Division of Purchasing and General
                  Services, including other state agencies operating under a grant of authority from the division to
                  procure goods and services in excess of $5,000;
                      (vi) Department of Agriculture;
                      (vii) Department of Natural Resources; and
                      (viii) other state agencies that provide services or offer direct assistance to the business
                  sector.


                      (e) The business services available on the business web portal may include:
                      (i) business life cycle information;
                      (ii) business searches;
                      (iii) employment needs and opportunities;
                      (iv) motor vehicle registration;
                      (v) permit applications and renewal;
                      (vi) tax information;
                      (vii) government procurement bid notifications;
                      (viii) general business information;
                      (ix) business directories; and
                      (x) business news.
                      Section 24. Section 53B-18-1002 is amended to read:
                       53B-18-1002. Establishment of the center -- Purpose -- Duties and responsibilities.
                      (1) There is established the Mormon Pioneer Heritage Center in connection with Utah
                  State University.
                      (2) The purpose of the center is to coordinate interdepartmental research and extension
                  efforts in recreation, heritage tourism, and agricultural extension service and to enter into
                  cooperative contracts with the United States Departments of Agriculture and Interior, state,
                  county, and city officers, public and private organizations, and individuals to enhance Mormon
                  pioneer heritage.
                      (3) The center has the following duties and responsibilities:
                      (a) to support U.S. Congressional findings that the landscape, architecture, traditions,
                  products, and events in the counties convey the heritage of pioneer settlements and their role in
                  agricultural development;
                      (b) to coordinate with extension agents in the counties to assist in the enhancement of
                  heritage businesses and the creation of heritage products;
                      (c) to foster a close working relationship with all levels of government, the private sector,
                  residents, business interests, and local communities;


                      (d) to support U.S. Congressional findings that the historical, cultural, and natural
                  heritage legacies of Mormon colonization and settlement are nationally significant;
                      (e) to encourage research and studies relative to the variety of heritage resources along
                  the 250-mile Highway 89 corridor from Fairview to Kanab, Utah, and Highways 12 and 24, the
                  All American Road, to the extent those resources demonstrate:
                      (i) the colonization of the western United States; and
                      (ii) the expansion of the United States as a major world power;
                      (f) to demonstrate that the great relocation to the western United States was facilitated
                  by:
                      (i) the 1,400 mile trek from Illinois to the Great Salt Lake by the Mormon Pioneers; and
                      (ii) the subsequent colonization effort in Nevada, Utah, the southeast corner of Idaho, the
                  southwest corner of Wyoming, large areas of southeastern Oregon, much of southern California,
                  and areas along the eastern border of California; and
                      (g) to assist in interpretive efforts that demonstrate how the Boulder Loop, Capitol Reef
                  National Park, Zion National Park, Bryce Canyon National Park, and the Highway 89 area
                  convey the compelling story of how early settlers:
                      (i) interacted with Native Americans; and
                      (ii) established towns and cities in a harsh, yet spectacular, natural environment.
                      (4) The center, in collaboration with the U.S. Department of Interior, the National Park
                  Service, the U.S. Department of Agriculture, the U.S. Forest Service, the Utah Department of
                  Community and [Economic Development] Culture, the Utah Division of State History, and the
                  alliance and its intergovernmental local partners, shall:
                      (a) assist in empowering communities in the counties to conserve, preserve, and enhance
                  the heritage of the communities while strengthening future economic opportunities;
                      (b) help conserve, interpret, and develop the historical, cultural, natural, and recreational
                  resources within the counties; and
                      (c) expand, foster, and develop heritage businesses and products relating to the cultural
                  heritage of the counties.


                      (5) The center, in collaboration with the U.S. Department of the Interior, the National
                  Park Service, and with funding from the alliance, shall develop a heritage management plan.
                      Section 25. Section 59-7-610 is amended to read:
                       59-7-610. Recycling market development zones tax credit.
                      (1) For taxable years beginning on or after January 1, 1996, a business operating in a
                  recycling market development zone as defined in Section [ 9-2-1602 ] 63-38f-1102 may claim a
                  tax credit as provided in this section.
                      (a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price paid
                  for machinery and equipment used directly in:
                      (A) commercial composting; or
                      (B) manufacturing facilities or plant units that:
                      (I) manufacture, process, compound, or produce recycled items of tangible personal
                  property for sale; or
                      (II) reduce or reuse postconsumer waste material.
                      (ii) The [Department of Community and] Governor's Office of Economic Development
                  shall certify that the machinery and equipment described in Subsection (1)(a)(i) are integral to the
                  composting or recycling process:
                      (A) on a form provided by the commission; and
                      (B) before a taxpayer is allowed a tax credit under this section.
                      (iii) The [Department of Community and] Governor's Office of Economic Development
                  shall provide a taxpayer seeking to claim a tax credit under this section with a copy of the form
                  described in Subsection (1)(a)(ii).
                      (iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the form
                  received under Subsection (1)(a)(iii).
                      (b) There shall be allowed a nonrefundable tax credit equal to 20% of net expenditures
                  up to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made by
                  the taxpayer for establishing and operating recycling or composting technology in Utah, with an
                  annual maximum tax credit of $2,000.


                      (2) The total nonrefundable tax credit allowed under this section may not exceed 40% of
                  the Utah income tax liability of the taxpayer prior to any tax credits in the taxable year of
                  purchase prior to claiming the tax credit authorized by this section.
                      (3) (a) Any tax credit not used for the taxable year in which the purchase price on
                  composting or recycling machinery and equipment was paid may be carried over for credit
                  against the business' income taxes in the three succeeding taxable years until the total tax credit
                  amount is used.
                      (b) Tax credits not claimed by a business on the business' state income tax return within
                  three years are forfeited.
                      (4) The commission shall make rules governing what information shall be filed with the
                  commission to verify the entitlement to and amount of a tax credit.
                      (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after January
                  1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection (1)(a) in a
                  taxable year during which the taxpayer claims or carries forward a tax credit under Section
                  [ 9-2-413 ] 63-38f-413 .
                      (b) For a taxable year other than a taxable year during which the taxpayer may not claim
                  or carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim or carry
                  forward a tax credit described in Subsection (1)(a):
                      (i) if the taxpayer may claim or carry forward the tax credit in accordance with
                  Subsections (1) and (2); and
                      (ii) subject to Subsections (3) and (4).
                      (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January 1,
                  2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year
                  during which the taxpayer claims or carries forward a tax credit under Section [ 9-2-413 ]
                  63-38f-413 .
                      (7) A taxpayer may not claim or carry forward a tax credit available under this section for
                  a taxable year during which the taxpayer has claimed the targeted business income tax credit
                  available under Section [ 9-2-1803 ] 63-38f-503 .


                      Section 26. Section 59-10-108.7 is amended to read:
                       59-10-108.7. Recycling market development zones tax credit.
                      (1) For taxable years beginning on or after January 1, 1996, an individual in a recycling
                  market development zone as defined in Section [ 9-2-1602 ] 63-38f-1102 may claim a tax credit as
                  provided in this section.
                      (a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price paid
                  for machinery and equipment used directly in:
                      (A) commercial composting; or
                      (B) manufacturing facilities or plant units that:
                      (I) manufacture, process, compound, or produce recycled items of tangible personal
                  property for sale; or
                      (II) reduce or reuse postconsumer waste material.
                      (ii) The [Department of Community and] Governor's Office of Economic Development
                  shall certify that the machinery and equipment described in Subsection (1)(a)(i) are integral to the
                  composting or recycling process:
                      (A) on a form provided by the commission; and
                      (B) before a taxpayer is allowed a tax credit under this section.
                      (iii) The [Department of Community and] Governor's Office of Economic Development
                  shall provide a taxpayer seeking to claim a tax credit under this section with a copy of the form
                  described in Subsection (1)(a)(ii).
                      (iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the form
                  received under Subsection (1)(a)(iii).
                      (b) There shall be allowed a nonrefundable tax credit equal to 20% of net expenditures
                  up to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made by
                  the taxpayer for establishing and operating recycling or composting technology in Utah, with an
                  annual maximum tax credit of $2,000.
                      (2) The total nonrefundable tax credit allowed under this section may not exceed 40% of
                  the Utah income tax liability of the taxpayer prior to any tax credits in the taxable year of


                  purchase prior to claiming the tax credit authorized by this section.
                      (3) (a) Any tax credit not used for the taxable year in which the purchase price on
                  composting or recycling machinery and equipment was paid may be carried over for credit
                  against the individual's income taxes in the three succeeding taxable years until the total tax
                  credit amount is used.
                      (b) Tax credits not claimed by an individual on the individual's state income tax return
                  within three years are forfeited.
                      (4) The commission shall make rules governing what information shall be filed with the
                  commission to verify the entitlement to and amount of a tax credit.
                      (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after January
                  1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection (1)(a) in a
                  taxable year during which the taxpayer claims or carries forward a tax credit under Section
                  [ 9-2-413 ] 63-38f-413 .
                      (b) For a taxable year other than a taxable year during which the taxpayer may not claim
                  or carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim or carry
                  forward a tax credit described in Subsection (1)(a):
                      (i) if the taxpayer may claim or carry forward the tax credit in accordance with
                  Subsections (1) and (2); and
                      (ii) subject to Subsections (3) and (4).
                      (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January 1,
                  2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year
                  during which the taxpayer claims or carries forward a tax credit under Section [ 9-2-413 ]
                  63-38f-413 .
                      (7) A taxpayer may not claim or carry forward a tax credit available under this section for
                  a taxable year during which the taxpayer has claimed the targeted business income tax credit
                  available under Section [ 9-2-1803 ] 63-38f-503 .
                      Section 27. Section 59-21-2 is amended to read:
                       59-21-2. Definitions -- Mineral Bonus Account created -- Contents -- Use of


                  Mineral Bonus Account money -- Mineral Lease Account created -- Contents --
                  Appropriation of monies from Mineral Lease Account.
                      (1) As used in this section:
                      (a) "Acquired lands" is as defined in Section 53C-3-201 .
                      (b) "Acquired mineral interests" is as defined in Section 53C-3-201 .
                      (2) (a) The Mineral Bonus Account is created within the General Fund.
                      (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
                  deposited pursuant to Subsection 59-21-1 (3).
                      (c) The Legislature shall make appropriations from the Mineral Bonus Account in
                  accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
                      (d) The state treasurer shall:
                      (i) invest the money in the Mineral Bonus Account by following the procedures and
                  requirements of Title 51, Chapter 7, State Money Management Act; and
                      (ii) deposit all interest or other earnings derived from the account into the Mineral Bonus
                  Account.
                      (3) (a) The Mineral Lease Account is created within the General Fund.
                      (b) The Mineral Lease Account consists of:
                      (i) federal mineral lease money deposited pursuant to Subsection 59-21-1 (1); and
                      (ii) rentals and royalties from the lease of the following deposited pursuant to Section
                  53C-3-202 :
                      (A) minerals on acquired lands; or
                      (B) acquired mineral interests.
                      (c) The Legislature shall make appropriations from the Mineral Lease Account as
                  provided in Subsection 59-21-1 (1) and this Subsection (3).
                      (d) The Legislature shall annually appropriate 32.5% of all deposits made to the Mineral
                  Lease Account to the Permanent Community Impact Fund established by Section 9-4-303 .
                      (e) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
                  Lease Account to the State Board of Education, to be used for education research and


                  experimentation in the use of staff and facilities designed to improve the quality of education in
                  Utah.
                      (f) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
                  Lease Account to the Utah Geological Survey, to be used for activities carried on by the survey
                  having as a purpose the development and exploitation of natural resources in the state.
                      (g) The Legislature shall annually appropriate 2.25% of all deposits made to the Mineral
                  Lease Account to the Water Research Laboratory at Utah State University, to be used for
                  activities carried on by the laboratory having as a purpose the development and exploitation of
                  water resources in the state.
                      (h) (i) The Legislature shall annually appropriate to the Department of Transportation
                  40% of all deposits made to the Mineral Lease Account to be distributed as provided in
                  Subsection (3)(h)(ii) to:
                      (A) counties;
                      (B) special service districts established:
                      (I) by counties;
                      (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
                      (III) for the purpose of constructing, repairing, or maintaining roads; or
                      (C) special service districts established:
                      (I) by counties;
                      (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
                      (III) for other purposes authorized by statute.
                      (ii) The Department of Transportation shall allocate the funds specified in Subsection
                  (3)(h)(i):
                      (A) in amounts proportionate to the amount of mineral lease money generated by each
                  county; and
                      (B) to a county or special service district established by a county under Title 17A,
                  Chapter 2, Part 13, Utah Special Service District Act, as determined by the county legislative
                  body.


                      (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the Mineral
                  Lease Account to the Department of Community and [Economic Development] Culture to be
                  distributed to:
                      (A) special service districts established:
                      (I) by counties;
                      (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
                      (III) for the purpose of constructing, repairing, or maintaining roads; or
                      (B) special service districts established:
                      (I) by counties;
                      (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
                      (III) for other purposes authorized by statute.
                      (ii) The Department of Community and [Economic Development] Culture may distribute
                  the amounts described in Subsection (3)(i)(i) only to special service districts established under
                  Title 17A, Chapter 2, Part 13, Utah Special Service District Act, by counties:
                      (A) of the third, fourth, fifth, or sixth class;
                      (B) in which 4.5% or less of the mineral lease moneys within the state are generated; and
                      (C) that are significantly socially or economically impacted as provided in Subsection
                  (3)(i)(iii) by the development of:
                      (I) minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq.;
                      (II) minerals on acquired lands; or
                      (III) acquired mineral interests.
                      (iii) The significant social or economic impact required under Subsection (3)(i)(ii)(C)
                  shall be as a result of:
                      (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
                  as defined in Section 59-5-101 ;
                      (B) the employment of persons residing within the county in hydrocarbon extraction,
                  including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
                      (C) a combination of Subsections (3)(i)(iii)(A) and (B).


                      (iv) For purposes of distributing the appropriations under this Subsection (3)(i) to special
                  service districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
                  District Act, the Department of Community and [Economic Development] Culture shall:
                      (A) (I) allocate 50% of the appropriations equally among the counties meeting the
                  requirements of Subsections (3)(i)(ii) and (iii); and
                      (II) allocate 50% of the appropriations based on the ratio that the population of each
                  county meeting the requirements of Subsections (3)(i)(ii) and (iii) bears to the total population of
                  all of the counties meeting the requirements of Subsections (3)(i)(ii) and (iii); and
                      (B) after making the allocations described in Subsection (3)(i)(iv)(A), distribute the
                  allocated revenues to special service districts established by the counties under Title 17A,
                  Chapter 2, Part 13, Utah Special Service District Act, as determined by the executive director of
                  the Department of Community and [Economic Development] Culture after consulting with the
                  county legislative bodies of the counties meeting the requirements of Subsections (3)(i)(ii) and
                  (iii).
                      (v) The executive director of the Department of Community and [Economic
                  Development] Culture:
                      (A) shall determine whether a county meets the requirements of Subsections (3)(i)(ii) and
                  (iii);
                      (B) shall distribute the appropriations under Subsection (3)(i)(i) to special service
                  districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
                  District Act, that meet the requirements of Subsections (3)(i)(ii) and (iii); and
                      (C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, may
                  make rules:
                      (I) providing a procedure for making the distributions under this Subsection (3)(i) to
                  special service districts; and
                      (II) defining the term "population" for purposes of Subsection (3)(i)(iv).
                      (j) (i) The Legislature shall annually make the following appropriations from the Mineral
                  Lease Account:


                      (A) an amount equal to 52 cents multiplied by the number of acres of school or
                  institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
                  by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each
                  county in which those lands are located;
                      (B) to each county in which school or institutional trust lands are transferred to the
                  federal government after December 31, 1992, an amount equal to the number of transferred acres
                  in the county multiplied by a payment per acre equal to the difference between 52 cents per acre
                  and the per acre payment made to that county in the most recent payment under the federal
                  payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal payment was
                  equal to or exceeded the 52 cents per acre, in which case a payment under this Subsection
                  (3)(j)(i)(B) may not be made for the transferred lands;
                      (C) to each county in which federal lands, which are entitlement lands under the federal
                  in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to the
                  number of transferred acres in the county multiplied by a payment per acre equal to the difference
                  between the most recent per acre payment made under the federal payment in lieu of taxes
                  program and 52 cents per acre, unless the federal payment was equal to or less than 52 cents per
                  acre, in which case a payment under this Subsection (3)(j)(i)(C) may not be made for the
                  transferred land; and
                      (D) to a county of the fifth or sixth class, an amount equal to the product of:
                      (I) $1,000; and
                      (II) the number of residences described in Subsection (3)(j)(iv) that are located within
                  the county.
                      (ii) A county receiving money under Subsection (3)(j)(i) may, as determined by the
                  county legislative body, distribute the money or a portion of the money to:
                      (A) special service districts established by the county under Title 17A, Chapter 2, Part
                  13, Utah Special Service District Act;
                      (B) school districts; or
                      (C) public institutions of higher education.


                      (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
                  Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
                  (3)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
                  consumers published by the Department of Labor.
                      (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
                  shall increase or decrease the amount described in Subsection (3)(j)(i)(D)(I) by the average
                  annual change in the Consumer Price Index for all urban consumers published by the Department
                  of Labor.
                      (iv) Residences for purposes of Subsection (3)(j)(i)(D)(II) are residences that are:
                      (A) owned by:
                      (I) the Division of Parks and Recreation; or
                      (II) the Division of Wildlife Resources;
                      (B) located on lands that are owned by:
                      (I) the Division of Parks and Recreation; or
                      (II) the Division of Wildlife Resources; and
                      (C) are not subject to taxation under:
                      (I) Chapter 2, Property Tax Act; or
                      (II) Chapter 4, Privilege Tax.
                      (k) The Legislature shall annually appropriate to the Permanent Community Impact Fund
                  all deposits remaining in the Mineral Lease Account after making the appropriations provided for
                  in Subsections (3)(d) through (j).
                      (4) (a) Each agency, board, institution of higher education, and political subdivision
                  receiving money under this chapter shall provide the Legislature, through the Office of the
                  Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
                  basis.
                      (b) The accounting required under Subsection (4)(a) shall:
                      (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
                  current fiscal year, and planned expenditures for the following fiscal year; and


                      (ii) be reviewed by the Economic Development and Human Resources Appropriation
                  Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
                  Procedures Act.
                      Section 28. Section 63-5b-102 is amended to read:
                       63-5b-102. Definitions.
                      (1) (a) "Absent" means:
                      (i) not physically present or not able to be communicated with for 48 hours; or
                      (ii) for local government officers, as defined by local ordinances.
                      (b) "Absent" does not include a person who can be communicated with via telephone,
                  radio, or telecommunications.
                      (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
                  against the United States of America or this state.
                      (3) "Department" means the Department of Administrative Services, the Department of
                  Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
                  Commerce, the Department of Community and [Economic Development] Culture, the
                  Department of Corrections, the Department of Environmental Quality, the Department of
                  Financial Institutions, the Department of Health, the Department of Human Resource
                  Management, the Department of Workforce Services, the Labor Commission, the National
                  Guard, the Department of Insurance, the Department of Natural Resources, the Department of
                  Public Safety, the Public Service Commission, the Department of Human Services, the State Tax
                  Commission, the Department of Transportation, any other major administrative subdivisions of
                  state government, the State Board of Education, the State Board of Regents, the Utah Housing
                  Corporation, the Utah Technology Finance Corporation, the Workers' Compensation Fund, the
                  State Retirement Board, and each institution of higher education within the system of higher
                  education.
                      (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
                  social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
                  natural phenomenon, or technological hazard.


                      (5) "Division" means the Division of Emergency Services and Homeland Security
                  established in Title 53, Chapter 2, Part 1, Emergency Services and Homeland Security Act.
                      (6) "Emergency interim successor" means a person designated by this chapter to exercise
                  the powers and discharge the duties of an office when the person legally exercising the powers
                  and duties of the office is unavailable.
                      (7) "Executive director" means the person with ultimate responsibility for managing and
                  overseeing the operations of each department, however denominated.
                      (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
                      (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
                  avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
                      (10) (a) "Office" includes all state and local offices, the powers and duties of which are
                  defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.
                      (b) "Office" does not include the office of governor or the legislative or judicial offices.
                      (11) "Place of governance" means the physical location where the powers of an office are
                  being exercised.
                      (12) "Political subdivision" includes counties, cities, towns, townships, districts,
                  authorities, and other public corporations and entities whether organized and existing under
                  charter or general law.
                      (13) "Political subdivision officer" means a person holding an office in a political
                  subdivision.
                      (14) "State officer" means the attorney general, the state treasurer, the state auditor, and
                  the executive director of each department.
                      (15) "Technological hazard" means any hazardous materials accident, mine accident,
                  train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
                      (16) "Unavailable" means:
                      (a) absent from the place of governance during a disaster that seriously disrupts normal
                  governmental operations, whether or not that absence or inability would give rise to a vacancy
                  under existing constitutional or statutory provisions; or


                      (b) as otherwise defined by local ordinance.
                      Section 29. Section 63-38d-502 is amended to read:
                       63-38d-502. Membership -- Terms -- Chair -- Expenses.
                      (1) The Resource Development Coordinating Committee shall consist of the following
                  25 members:
                      (a) the state science advisor;
                      (b) a representative from the Department of Agriculture and Food appointed by the
                  executive director;
                      (c) a representative from the Department of Community and [Economic Development]
                  Culture appointed by the executive director;
                      (d) a representative from the Department of Environmental Quality appointed by the
                  executive director;
                      (e) a representative from the Department of Natural Resources appointed by the
                  executive director;
                      (f) a representative from the Department of Transportation appointed by the executive
                  director;
                      (g) a representative from the [Division of Business and] Governor's Office of Economic
                  Development appointed by the director;
                      (h) a representative from the Division of Housing and Community Development
                  appointed by the director;
                      (i) a representative from the Division of State History appointed by the director;
                      (j) a representative from the Division of Air Quality appointed by the director;
                      (k) a representative from the Division of Drinking Water appointed by the director;
                      (l) a representative from the Division of Environmental Response and Remediation
                  appointed by the director;
                      (m) a representative from the Division of Radiation appointed by the director;
                      (n) a representative from the Division of Solid and Hazardous Waste appointed by the
                  director;


                      (o) a representative from the Division of Water Quality appointed by the director;
                      (p) a representative from the Division of Oil, Gas, and Mining appointed by the director;
                      (q) a representative from the Division of Parks and Recreation appointed by the director;
                      (r) a representative from the Division of Forestry, Fire and State Lands appointed by the
                  director;
                      (s) a representative from the Utah Geological Survey appointed by the director;
                      (t) a representative from the Division of Water Resources appointed by the director;
                      (u) a representative from the Division of Water Rights appointed by the director;
                      (v) a representative from the Division of Wildlife Resources appointed by the director;
                      (w) a representative from the School and Institutional Trust Lands Administration
                  appointed by the director;
                      (x) a representative from the Division of Facilities Construction and Management
                  appointed by the director; and
                      (y) a representative from the Division of Emergency Services and Homeland Security
                  appointed by the director.
                      (2) (a) As particular issues require, the committee may, by majority vote of the members
                  present, and with the concurrence of the state planning coordinator, appoint additional temporary
                  members to serve as ex officio voting members.
                      (b) Those ex officio members may discuss and vote on the issue or issues for which they
                  were appointed.
                      (3) A chair shall be selected by a majority vote of committee members with the
                  concurrence of the state planning coordinator.
                      (4) (a) (i) Members who are not government employees shall receive no compensation or
                  benefits for their services, but may receive per diem and expenses incurred in the performance of
                  the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per


                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the council at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      Section 30. Section 63-38f-101 , which is renumbered from Section 9-2-201 is
                  renumbered and amended to read:
                 
CHAPTER 38f. GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT

                 
Part 1. General Provisions

                       [9-2-201].     63-38f-101. Title.
                      This [part] chapter is known as the "[Business and] Governor's Office of Economic
                  Development [Act]."
                      Section 31. Section 63-38f-102 , which is renumbered from Section 9-2-102 is
                  renumbered and amended to read:
                       [9-2-102].     63-38f-102. Definitions.
                      As used in this chapter:
                      (1) "Board" means the Board of Business and Economic Development.
                      (2) "Director" means the director of the [division] office.
                      (3) ["Division"] "Office" means the [Division of Business and] Governor's Office of
                  Economic Development.
                      Section 32. Section 63-38f-201 is enacted to read:
                      63-38f-201. Creation of office.
                      (1) There is created the Governor's Office of Economic Development.
                      (2) The office shall:
                      (a) be responsible for economic development within the state;
                      (b) perform economic development planning for the state;
                      (c) administer and coordinate all state or federal grant programs which are, or become
                  available, for economic development;


                      (d) administer any other programs over which the office is given administrative
                  supervision by the governor;
                      (e) annually submit a report to the Legislature by October 1; and
                      (f) perform any other duties as provided by the Legislature.
                      (3) The office may solicit and accept contributions of moneys, services, and facilities
                  from any other source, public or private, but may not use the moneys for publicizing the
                  exclusive interest of the donor.
                      (4) Moneys received under Subsection (3) shall be deposited in the General Fund as
                  dedicated credits of the office.
                      Section 33. Section 63-38f-202 , which is renumbered from Section 9-1-204 is
                  renumbered and amended to read:
                       [9-1-204].     63-38f-202. Director of office -- Appointment -- Removal --
                  Compensation.
                      (1) The [department] office shall be administered, directed, controlled, organized, and
                  managed by [an executive] a director appointed by the governor [with the consent of the Senate].
                      (2) The [executive] director [shall serve] serves at the pleasure of the governor [and is
                  subject to removal by the governor with or without cause].
                      (3) The salary of the [executive] director shall be established by the governor within the
                  salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
                      Section 34. Section 63-38f-203 , which is renumbered from Section 9-1-205 is
                  renumbered and amended to read:
                       [9-1-205].     63-38f-203. Powers and duties of director.
                      (1) The [executive] director, with the approval of the governor, may:
                      (a) by following the procedures and requirements of Title 63, Chapter 38e, Federal Funds
                  Procedures, seek federal grants, loans, or participation in federal programs;
                      (b) enter into lawful contracts or agreements with other states, any chamber of commerce
                  organization, and any service club; and
                      (c) annually prepare and submit to the governor a budget of the [department's] office's


                  financial requirements.
                      (2) If any federal program requires the expenditure of state funds as a condition to
                  participation by the state in any fund, property, or service, with the governor's approval, the
                  [executive] director shall expend whatever funds are necessary out of the money provided by the
                  Legislature for the use of the [department] office.
                      Section 35. Section 63-38f-204 , which is renumbered from Section 9-1-206 is
                  renumbered and amended to read:
                       [9-1-206].     63-38f-204. Organization of office -- Jurisdiction of director.
                      [(1) The chief administrative officer of each division within the department shall be a
                  director appointed by the executive director.]
                      [(a) Each division director shall serve at the pleasure of the executive director and may
                  be removed by the executive director after consultation with the respective board.]
                      [(b) Each director shall receive compensation as provided in Title 67, Chapter 19, Utah
                  State Personnel Management Act.]
                      [(2)] (1) Unless otherwise expressly provided by statute, the [executive] director may
                  organize the [department] office in any fashion [he considers] considered appropriate, including
                  the appointment of deputy directors of the [department to act as division directors or as
                  supervisors over two or more divisions] office.
                      [(3) The executive director shall have administrative jurisdiction over each division
                  director for the purpose of implementing the policy promulgated by the policy-making board of
                  each division.]
                      (2) The [executive] director may make consolidations of personnel and service functions
                  [in the respective divisions] to effectuate efficiency and economy within the [department] office.
                      Section 36. Section 63-38f-205 , which is renumbered from Section 9-1-207 is
                  renumbered and amended to read:
                       [9-1-207].     63-38f-205. Interface with Public Service Commission.
                      (1) The [executive] director or [his] the director's designee shall:
                      (a) become generally informed of significant rate cases and policy proceedings before the


                  Public Service Commission; and
                      (b) monitor and study the potential economic development impact of these proceedings
                  before the Public Service Commission.
                      (2) In the discretion of the [executive] director or [his] the director's designee, the
                  [department] office may appear in any proceeding before the Public Service Commission to
                  testify, advise, or present argument regarding the economic development impact of any matter
                  that is the subject of the proceeding.
                      Section 37. Section 63-38f-301 , which is renumbered from Section 9-2-202 is
                  renumbered and amended to read:
                       [9-2-202].     63-38f-301. Board of Business and Economic Development.
                      [(1)] There is created within the [department] office the Board of Business and Economic
                  Development which shall advise the [division] office.
                      [(2) The board shall assume all of the functions, powers, duties, rights, and
                  responsibilities of the Utah State Industrial Promotion Commission together with all functions,
                  powers, duties, rights, and responsibilities granted to the board by this part, except for those that
                  are administrative in nature which the division shall assume.]
                      Section 38. Section 63-38f-302 , which is renumbered from Section 9-2-203 is
                  renumbered and amended to read:
                       [9-2-203].     63-38f-302. Members -- Meetings -- Expenses.
                      (1) (a) The board shall consist of 15 members appointed by the governor to four-year
                  terms of office with the consent of the Senate.
                      (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the time
                  of appointment or reappointment, adjust the length of terms to ensure that the terms of board
                  members are staggered so that approximately half of the board is appointed every two years.
                      (c) The members may not serve more than two full consecutive terms except where the
                  governor determines that an additional term is in the best interest of the state.
                      (2) Not more than eight members of the board may be from one political party.
                      (3) The members shall be representative of all areas of the state.


                      (4) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (5) Eight members of the board constitute a quorum for conducting board business and
                  exercising board power.
                      (6) The governor shall select one of the board members as its chair.
                      (7) (a) Members shall receive no compensation or benefits for their services, but may
                  receive per diem and expenses incurred in the performance of the member's official duties at the
                  rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (b) Members may decline to receive per diem and expenses for their service.
                      Section 39. Section 63-38f-303 , which is renumbered from Section 9-2-204 is
                  renumbered and amended to read:
                       [9-2-204].     63-38f-303. Board duties and powers.
                      (1) The board shall:
                      (a) promote and encourage the economic, commercial, financial, industrial, agricultural,
                  and civic welfare of the state;
                      (b) do all lawful acts for the development, attraction, and retention of businesses,
                  industries, and commerce within the state;
                      (c) promote and encourage the expansion and retention of businesses, industries, and
                  commerce located in the state;
                      (d) support the efforts of local government and regional nonprofit economic development
                  organizations to encourage expansion or retention of businesses, industries, and commerce
                  located in the state;
                      (e) do other acts not specifically enumerated in this [part] chapter, if the acts are for the
                  betterment of the economy of the state;
                      (f) work in conjunction with companies and individuals located or doing business within
                  the state to secure favorable rates, fares, tolls, charges, and classification for transportation of
                  persons or property by:
                      (i) railroad;


                      (ii) motor carrier; or
                      (iii) other common carriers;
                      (g) recommend policies, priorities, and objectives to the [division] office regarding the
                  assistance, retention, or recruitment of business, industries, and commerce in the state; and
                      (h) [ensure that] recommend how any money or program administered by the
                  [department] office or its divisions for the assistance, retention, or recruitment of businesses,
                  industries, and commerce in the state shall be administered, so that the money or program is
                  equitably available to all areas of the state unless federal or state law requires or authorizes the
                  geographic location of a recipient of the money or program to be considered in the distribution of
                  the money or administration of the program.
                      (2) The board may[: (a)], in furtherance of the authority granted under Subsection (1)(f),
                  appear as a party litigant on behalf of individuals or companies located or doing business within
                  the state in proceedings before regulatory commissions of the state, other states, or the federal
                  government having jurisdiction over such matters[; and].
                      [(b) make, amend, or revoke rules for the conduct of its business not inconsistent with
                  this part and in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.]
                      Section 40. Section 63-38f-304 , which is renumbered from Section 9-2-205 is
                  renumbered and amended to read:
                       [9-2-205].     63-38f-304. Governor's Office of Economic Development -- Powers
                  and duties of office -- Consulting with board on funds or services provided by office.
                      (1) For the purposes of this section:
                      (a) "National recruitment" means the recruitment to the state of business, industry, or
                  commerce if, at the time of the recruitment, the business, industry, or commerce is principally
                  located in the United States.
                      (b) "Private entity" means a private person, corporation, company, or organization.
                      [(2) There is created within the department the Division of Business and Economic
                  Development under the administration and general supervision of the executive director or a
                  designee of the executive director.]


                      [(3)] (2) (a) The [division] office shall obtain the advice [and concurrence] of the board
                  prior to an imposition of or change to a policy, priority, or objective[, or rule] under which the
                  [division] office operates.
                      (b) Subsection [(3)] (2)(a) does not apply to the routine administration by the
                  [department or division of] office of funds or services related to assistance, retention, or
                  recruitment of business, industry, or commerce in this state.
                      [(4)] (3) The [division] office shall:
                      (a) be the industrial promotion authority of the state;
                      (b) promote and encourage the economic, commercial, financial, industrial, agricultural,
                  and civic welfare of the state;
                      (c) do all lawful acts to create, develop, attract, and retain business, industry, and
                  commerce within the state; and
                      (d) do other acts that enhance the economy of the state.
                      [(5)] (4) The [division] office may[, subject to Subsection (6) and the approval of the
                  board]:
                      (a) enter into contracts or agreements with, or make grants to, public or private entities,
                  including municipalities, in the furtherance of its duties where the contracts or agreements are not
                  in violation of the Constitution or statutes of the state; and
                      (b) receive and expend funds available from any source, public or private, in any manner
                  and for any lawful purpose in the best interest of the state in the discharge of their obligations
                  under this part.
                      [(6) (a) Beginning on May 3, 1999, the department or division may enter into or renew a
                  contract or agreement with or make a grant to a private entity under which the private entity
                  engages in national recruitment only if the sole activity of the private entity is national
                  recruitment.]
                      [(b) In determining whether a private entity engages in activity other than national
                  recruitment, the department or division shall consider all activities of the private entity regardless
                  of whether the activities are funded by the department or division.]


                      [(7)] (5) The [executive director and the] director or the director's designee shall consult
                  with the board at each meeting of the board regarding the administration by the [department or
                  the division] office of funds or services related to assistance, retention, or recruitment of
                  business, industry, or commerce in the state.
                      Section 41. Section 63-38f-401 , which is renumbered from Section 9-2-401 is
                  renumbered and amended to read:
                 
Part 4. Enterprise Zone Act

                       [9-2-401].     63-38f-401. Title.
                      This part is known as the "Enterprise Zone Act."
                      Section 42. Section 63-38f-402 , which is renumbered from Section 9-2-402 is
                  renumbered and amended to read:
                       [9-2-402].     63-38f-402. Definitions.
                  As used in this part:
                      (1) "County applicant" means the governing authority of a county that meets the
                  requirements for designation as an enterprise zone under Section [ 9-2-404 ] 63-38f-404 .
                      (2) "Municipal applicant" means the governing authority of a city or town that meets the
                  requirements for designation as an enterprise zone under Section [ 9-2-404 ] 63-38f-404 .
                      (3) "Tax incentives" or "tax benefits" means the tax credits available under Section
                  [ 9-2-413 ] 63-38f-413 .
                      Section 43. Section 63-38f-403 , which is renumbered from Section 9-2-403 is
                  renumbered and amended to read:
                       [9-2-403].     63-38f-403. Powers of the office.
                      The [department] office shall:
                      (1) monitor the implementation and operation of this part and conduct a continuing
                  evaluation of the progress made in the enterprise zones;
                      (2) evaluate an application from a county applicant or a municipal applicant to be
                  designated an enterprise zone and determine if the applicant qualifies for that designation;
                      (3) provide technical assistance to county applicants and municipal applicants in


                  developing applications for designation as enterprise zones;
                      (4) assist county applicants and municipal applicants designated as enterprise zones in
                  obtaining assistance from the federal government and agencies of the state;
                      (5) assist a qualified business in obtaining the benefits of an incentive or inducement
                  program authorized by this part; and
                      (6) prepare an annual evaluation based, in part, on data provided by the State Tax
                  Commission:
                      (a) evaluating the effectiveness of the program and any suggestions for legislation; and
                      (b) that is available upon request to the governor and to the Revenue and Taxation
                  Interim Committee of the Legislature [on or before] by November 1 of each year.
                      Section 44. Section 63-38f-404 , which is renumbered from Section 9-2-404 is
                  renumbered and amended to read:
                       [9-2-404].     63-38f-404. Criteria for designation of enterprise zones --
                  Application.
                      (1) A county applicant seeking designation as an enterprise zone shall file an application
                  with the [department] office that, in addition to complying with other requirements of this part:
                      (a) verifies that the entire county is not located in a metropolitan statistical area that is
                  entirely located within Utah, except that this requirement does not apply to a third, fourth, fifth,
                  or sixth class county as classified under Section 17-50-501 ;
                      (b) verifies that the county has a population of 50,000 or less; and
                      (c) provides clear evidence of the need for development in the county.
                      (2) A municipal applicant seeking designation as an enterprise zone shall file an
                  application with the [department] office that, in addition to complying with other requirements of
                  this part:
                      (a) verifies that the municipality is a city of the fifth class or a town;
                      (b) verifies that the municipality is within a county that has a population of 50,000 or
                  less; and
                      (c) provides clear evidence of the need for development in the municipality.


                      (3) An application filed under Subsection (1) or (2) shall be in a form and in accordance
                  with procedures approved by the [department] office, and shall include the following
                  information:
                      (a) a plan developed by the county applicant or municipal applicant that identifies local
                  contributions meeting the requirements of Section [ 9-2-405 ] 63-38f-405 ;
                      (b) the county applicant or municipal applicant has a development plan that outlines:
                      (i) the types of investment and development within the zone that the county applicant or
                  municipal applicant expects to take place if the incentives specified in this part are provided;
                      (ii) the specific investment or development reasonably expected to take place;
                      (iii) any commitments obtained from businesses;
                      (iv) the projected number of jobs that will be created and the anticipated wage level of
                  those jobs;
                      (v) any proposed emphasis on the type of jobs created, including any affirmative action
                  plans; and
                      (vi) a copy of the county applicant's or municipal applicant's economic development plan
                  to demonstrate coordination between the zone and overall county or municipal goals;
                      (c) the county applicant's or municipal applicant's proposed means of assessing the
                  effectiveness of the development plan or other programs to be implemented within the zone once
                  they have been implemented;
                      (d) any additional information required by the [department] office; and
                      (e) any additional information the county applicant or municipal applicant considers
                  relevant to its designation as an enterprise zone.
                      Section 45. Section 63-38f-405 , which is renumbered from Section 9-2-405 is
                  renumbered and amended to read:
                       [9-2-405].     63-38f-405. Qualifying local contributions.
                      (1) An area may be designated as an enterprise zone only if the county applicant or
                  municipal applicant agrees to make a qualifying local contribution.
                      (2) The qualifying local contribution may vary depending on available resources, and


                  may include such elements as:
                      (a) simplified procedures for obtaining permits;
                      (b) dedication of available government grants;
                      (c) dedication of training funds;
                      (d) waiver of business license fees;
                      (e) infrastructure improvements;
                      (f) private contributions;
                      (g) utility rate concessions;
                      (h) small business incubator programs; or
                      (i) management assistance programs.
                      Section 46. Section 63-38f-406 , which is renumbered from Section 9-2-406 is
                  renumbered and amended to read:
                       [9-2-406].     63-38f-406. Eligibility review.
                      (1) (a) The [department] office shall review and evaluate the applications submitted
                  under Section [ 9-2-404 ] 63-38f-404 and shall determine whether each county applicant or
                  municipal applicant is eligible for designation as an enterprise zone.
                      (b) In determining whether a county applicant or municipal applicant is eligible, if
                  unemployment, income, population, or other necessary data are not available for the county
                  applicant or municipal applicant from the federal departments of labor or commerce or a state
                  agency, the [department] office may rely upon other data submitted by the applicant, if the
                  [department] office determines that it is statistically reliable or accurate.
                      (2) (a) The [department] office shall designate enterprise zones.
                      (b) The [department] office shall consider and evaluate an application using the
                  following criteria:
                      [(a)] (i) the pervasiveness of poverty, unemployment, and general distress in the
                  proposed zone;
                      [(b)] (ii) the extent of chronic abandonment, deterioration, or reduction in value of
                  commercial, industrial, or residential structures in the proposed zone, and the extent of property


                  tax arrearages in the proposed zone;
                      [(c)] (iii) the potential for new investment and economic development in the proposed
                  zone;
                      [(d)] (iv) the county applicant's or municipal applicant's proposed use of other state and
                  federal development funds or programs to increase the probability of new investment and
                  development occurring;
                      [(e)] (v) the extent to which the projected development in the zone will provide
                  employment to residents of the county and particularly individuals who are unemployed or who
                  are economically disadvantaged;
                      [(f)] (vi) the degree to which the county applicant's or municipal applicant's application
                  promotes innovative solutions to economic development problems and demonstrates local
                  initiative; and
                      [(g)] (vii) other relevant factors that the [department] office specifies in its
                  recommendation.    
                      Section 47. Section 63-38f-407 , which is renumbered from Section 9-2-407 is
                  renumbered and amended to read:
                       [9-2-407].     63-38f-407. Quarterly consideration.
                      The [department] office shall consider designating enterprise zones quarterly.
                      Section 48. Section 63-38f-408 , which is renumbered from Section 9-2-408 is
                  renumbered and amended to read:
                       [9-2-408].     63-38f-408. Duration of designation.
                      Each enterprise zone has a duration of five years, at the end of which the county may
                  reapply for the designation.
                      Section 49. Section 63-38f-409 , which is renumbered from Section 9-2-409 is
                  renumbered and amended to read:
                       [9-2-409].     63-38f-409. Contingent designations.
                      (1) The [department] office may accept applications for, and may at any time grant, a
                  contingent designation of any county as an enterprise zone for purposes of seeking a designation


                  of the county as a federally designated zone.
                      (2) This designation does not entitle a business operating in that county to the tax
                  incentives under this part.
                      Section 50. Section 63-38f-410 , which is renumbered from Section 9-2-410 is
                  renumbered and amended to read:
                       [9-2-410].     63-38f-410. Revocation of designations.
                      (1) The [department] office may revoke the designation of an enterprise zone, if no
                  businesses utilize the tax incentives during any calendar year.
                      (2) Prior to that action, the [department] office shall conduct a public hearing to
                  determine reasons for inactivity and explore possible alternative actions.
                      Section 51. Section 63-38f-411 , which is renumbered from Section 9-2-411 is
                  renumbered and amended to read:
                       [9-2-411].     63-38f-411. Disqualifying transfers.
                      Except in counties of the first or second class, tax incentives provided by this part are not
                  available to companies that close or permanently curtail operations in another part of the state in
                  connection with a transfer of any part of its business operations to an enterprise zone, if the
                  closure or permanent curtailment is reasonably expected to diminish employment in that part of
                  the state.
                      Section 52. Section 63-38f-412 , which is renumbered from Section 9-2-412 is
                  renumbered and amended to read:
                       [9-2-412].     63-38f-412. Businesses qualifying for tax incentives.
                      The tax incentives described in this part are available only to a business firm for which at
                  least 51% of the employees employed at facilities of the firm located in the enterprise zone are
                  individuals who, at the time of employment, reside in the county in which the enterprise zone is
                  located.
                      Section 53. Section 63-38f-413 , which is renumbered from Section 9-2-413 is
                  renumbered and amended to read:
                       [9-2-413].     63-38f-413. State tax credits.


                      (1) Subject to the limitations of Subsections (2) through (4), the following state tax
                  credits against individual income taxes or corporate franchise and income taxes are applicable in
                  an enterprise zone:
                      (a) a tax credit of $750 may be claimed by a business for each new full-time position
                  filled for not less than six months during a given tax year;
                      (b) an additional $500 tax credit may be claimed if the new position pays at least 125%
                  of:
                      (i) the county average monthly nonagricultural payroll wage for the respective industry as
                  determined by the Department of Workforce Services; or
                      (ii) if the county average monthly nonagricultural payroll wage is not available for the
                  respective industry, the total average monthly nonagricultural payroll wage in the respective
                  county where the enterprise zone is located;
                      (c) an additional credit of $750 may be claimed if the new position is in a business that
                  adds value to agricultural commodities through manufacturing or processing;
                      (d) an additional credit of $200 may be claimed for two consecutive years for each new
                  employee who is insured under an employer-sponsored health insurance program if the employer
                  pays at least 50% of the premium cost for two consecutive years;
                      (e) a credit of 50% of the value of a cash contribution to a private nonprofit corporation,
                  except that the credit claimed may not exceed $100,000:
                      (i) that is exempt from federal income taxation under Section 501(c)(3), Internal
                  Revenue Code;
                      (ii) whose primary purpose is community and economic development; and
                      (iii) that has been accredited by the board of directors of the Utah Rural Development
                  Council;
                      (f) a credit of 25% of the first $200,000 spent on rehabilitating a building in the
                  enterprise zone that has been vacant for two years or more; and
                      (g) an annual investment tax credit of 10% of the first $250,000 in investment, and 5% of
                  the next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.


                      (2) (a) Subject to the limitations of Subsection (2)(b), a business claiming a credit under
                  Subsections (1)(a) through (d) may claim a credit for 30 full-time employee positions or less in
                  each of its taxable years.
                      (b) A business that received a credit for its full-time employee positions under
                  Subsections (1)(a) through (d) may claim an additional credit for a full-time employee position
                  under Subsections (1)(a) through (d) if:
                      (i) the business creates a new full-time employee position;
                      (ii) the total number of full-time employee positions at the business is greater than the
                  number of full-time employee positions previously claimed by the business under Subsections
                  (1)(a) through (d); and
                      (iii) the total number of credits the business has claimed for its current taxable year,
                  including the new full-time employee position for which the business is claiming a credit, is less
                  than or equal to 30.
                      (c) A business existing in an enterprise zone on the date of its designation shall calculate
                  the number of full-time positions based on the average number of employees reported to the
                  Department of Workforce Services.
                      (d) Construction jobs are not eligible for the tax credit under Subsections (1)(a) through
                  (d).
                      (3) If the amount of a tax credit under this section exceeds a business entity's tax liability
                  under this chapter for a taxable year, the amount of the credit exceeding the liability may be
                  carried forward for a period that does not exceed the next three taxable years.
                      (4) (a) If a business entity is located in a county that met the requirements of Subsections
                  [ 9-2-404 (1)(b) and (c)] 63-38f-404 (1)(b) and (c) but did not qualify as an enterprise zone prior to
                  January 1, 1998, because the county was located in a metropolitan statistical area in more than
                  one state, the business entity:
                      (i) shall qualify for tax credits for a taxable year beginning on or after January 1, 1997,
                  but beginning before December 31, 1997;
                      (ii) may claim a tax credit as described in Subsection (4)(a) in a taxable year beginning


                  on or after January 1, 1997, but beginning before December 31, 1997; and
                      (iii) may qualify for tax credits for any taxable year beginning on or after January 1,
                  1998, if the county is designated as an enterprise zone in accordance with this part.
                      (b) If a business entity claims a tax credit under Subsection (4)(a)(ii), the business entity:
                      (i) may claim the tax credit by filing for the taxable year beginning on or after January 1,
                  1997, but beginning before December 31, 1997:
                      (A) an individual income tax return;
                      (B) an amended individual income tax return;
                      (C) a corporate franchise and income tax return; or
                      (D) an amended corporate franchise and income tax return; and
                      (ii) may carry forward the tax credit to a taxable year beginning on or after January 1,
                  1998, in accordance with Subsection (3).
                      (5) The tax credits under Subsections (1)(a) through (g) may not be claimed by a
                  business engaged in retail trade or by a public utilities business.
                      (6) A business may not claim or carry forward a tax credit available under this part for a
                  taxable year during which the business has claimed the targeted business income tax credit
                  available under Section [ 9-2-1803 ] 63-38f-503 .
                      Section 54. Section 63-38f-414 , which is renumbered from Section 9-2-414 is
                  renumbered and amended to read:
                       [9-2-414].     63-38f-414. Annual report.
                      (1) Each county applicant or municipal applicant designated as an enterprise zone shall
                  annually report to the [department] office regarding the economic activity that has occurred in the
                  zone following the designation.
                      (2) This information shall include:
                      (a) the number of jobs created in the zone[,];
                      (b) the number of economically disadvantaged individuals receiving public job training
                  assistance in the zone[,];
                      (c) the average wage level of the jobs created[,];


                      (d) descriptions of any affirmative action programs undertaken by the county applicant or
                  municipal applicant in connection with the enterprise zone[,];
                      (e) the amount of the county applicant's or municipal applicant's local contribution[,];
                  and
                      (f) the number of businesses qualifying for, or directly benefiting from, the local
                  contribution.
                      Section 55. Section 63-38f-415 , which is renumbered from Section 9-2-415 is
                  renumbered and amended to read:
                       [9-2-415].     63-38f-415. Indian tribes -- Application.
                      (1) For purposes of this section:
                      (a) "Indian reservation" is as defined in Section 9-9-210 .
                      (b) "Indian tribe" is as defined in Subsection 9-9-402 (4).
                      (c) "Tribal applicant" means the governing authority of a tribe that meets the
                  requirements for designation as an enterprise zone under Subsection (3).
                      (2) Indian tribes may apply for designation of an area within an Indian reservation as an
                  enterprise zone.
                      (3) The tribal applicant shall follow the application procedure for a municipal applicant
                  in this part except for the population requirement in Subsections [ 9-2-404 (2)(a) and (b)]
                  63-38f-404 (2)(a) and (b).
                      Section 56. Section 63-38f-416 , which is renumbered from Section 9-2-416 is
                  renumbered and amended to read:
                       [9-2-416].     63-38f-416. Technology-based service contracts within enterprise
                  zones.
                      (1) For purposes of this section:
                      (a) "Smart site enterprise" means a technology-based entity located within an enterprise
                  zone that is eligible to receive financial support under the [department's] office's smart site
                  program.
                      (b) "Smart site program" means a program of the [department] office dedicated to the


                  development of technology-based industry in rural Utah in which services that might otherwise
                  be performed by state agencies are outsourced to a smart site enterprise.
                      (c) "State agency" means the:
                      (i) Department of Commerce;
                      (ii) Department of Workforce Services;
                      (iii) Department of Transportation;
                      (iv) Department of Health;
                      (v) Department of Administrative Services;
                      (vi) Department of Public Safety;
                      (vii) Utah State Tax Commission; and
                      (viii) [Department of Community and] Governor's Office of Economic Development.
                      (d) "Technology-based contract" means a contract between a state agency and a smart
                  site enterprise for the smart site enterprise to provide the following services:
                      (i) software development and computer programming;
                      (ii) website design;
                      (iii) systems integration;
                      (iv) AutoCad/GIS mapping;
                      (v) help desk support, customer relationship management, and telephone or Internet
                  surveys;
                      (vi) computer graphics, animation, or illustration;
                      (vii) medical billing, coding, transcription, and related medical informatics services;
                      (viii) data entry, data conversion, and imaging;
                      (ix) information technology training and e-learning;
                      (x) network development, management, service, and support;
                      (xi) telecommunications technologies;
                      (xii) database development and applications;
                      (xiii) multimedia and digital technologies, including DVD;
                      (xiv) technical writing;


                      (xv) insurance and benefits administration;
                      (xvi) data warehousing and storage or web hosting;
                      (xvii) billing services; and
                      (xviii) information technology consulting.
                      (2) The [department] office has the following responsibilities for the smart site program
                  authorized under this section:
                      (a) to provide market incentives identified in Subsection (4) to eligible state agencies and
                  provide technical assistance as appropriate;
                      (b) to administer funding and initiate interagency transfers consistent with the provisions
                  of this section;
                      (c) to provide state agencies with a listing of smart site enterprises; and
                      (d) to designate a smart site program director and notify state agencies of the
                  designation[; and].
                      [(e) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
                  make rules necessary to administer this section.]
                      (3) A state agency has the following responsibilities if participating in the smart site
                  program offered under this section:
                      (a) to enter into a memorandum of understanding with the [department] office indicating
                  the steps the agency shall take to encourage smart site enterprises to submit bids for
                  technology-based contracts; and
                      (b) to submit to the [department] office by no later than July 30, an accounting of all
                  technology-based contracts awarded to smart site enterprises by the agency in the prior fiscal
                  year.
                      (4) (a) A state agency is eligible for an interagency transfer from the [department] office
                  for up to 10% of all technology-based contracts awarded to a smart site enterprise under the
                  [department's] office's smart site program.
                      (b) The [department] office shall determine the amount of the interagency transfer as
                  follows:


                      (i) if the total number of requests for interagency transfers under the program does not
                  exceed the legislative appropriation for the fiscal year, each eligible agency shall receive a full
                  10% transfer; or
                      (ii) if the total number of requests for interagency transfers under the program exceeds
                  the appropriation for the fiscal year, the [department] office shall prorate the amount of each
                  transfer based on the respective percentage of all technology-based contracts submitted to the
                  [department] office by all eligible state agencies.
                      (c) (i) After determining the amount of each agency's interagency transfer as required
                  under Subsection (4)(b), the [department] office shall transfer the amount to each agency's
                  budget.
                      (ii) The [department] office shall make the transfer no later than August 15 to
                  supplement the agency's budget for the fiscal year beginning just prior to the interagency transfer.
                      (iii) An agency may use the interagency transfer it receives under this Subsection (4)(c)
                  for any purpose related to the agency's mission or its duties and responsibilities, including the
                  payment of incentives and award bonuses for participating in the smart site program.
                      (d) Funding for the interagency transfer under Subsection (4)(c) shall come from the
                  prior fiscal year appropriation to the [department] office.
                      (e) The appropriation to fund this section is nonlapsing to provide for the distribution
                  process outlined in this Subsection (4).
                      Section 57. Section 63-38f-501 , which is renumbered from Section 9-2-1801 is
                  renumbered and amended to read:
                 
Part 5. Targeted Business Income Tax Credits Within an Enterprise Zone

                       [9-2-1801].     63-38f-501. Definitions.
                      [(1)] As used in this part:
                      [(a)] (1) "Allocated cap amount" means the total amount of the targeted business income
                  tax credit that a business applicant is allowed to claim for a taxable year that represents a pro rata
                  share of the total amount of $300,000 for each fiscal year allowed under Subsection [ 9-2-1803 ]
                  63-38f-503 (2).


                      [(b)] (2) "Business applicant" means a business that meets the criteria established in
                  Section [ 9-2-1802 ] 63-38f-502 .
                      [(c)] (3) "Community investment project" means a project that includes one or more of
                  the following criteria in addition to the normal operations of the business applicant:
                      [(i)] (a) substantial new employment;
                      [(ii)] (b) new capital development; or
                      [(iii)] (c) a combination of both Subsections [(1)(c)(i) and (ii)] (3)(a) and (b).
                      [(d)] (4) "Community investment project period" means the total number of years that the
                  [department] office determines a business applicant is eligible for a targeted business income tax
                  credit for each community investment project.
                      [(e)] (5) "Enterprise zone" means an area within a county or municipality that has been
                  designated as an enterprise zone by the [department] office under Part 4, Enterprise [Zones] Zone
                  Act.
                      [(f)] (6) "Local zone administrator" means a person:
                      [(i)] (a) designated by the governing authority of the county or municipal applicant as the
                  local zone administrator in an enterprise zone application; and
                      [(ii)] (b) approved by the [department] office as the local zone administrator.
                      [(g)] (7) "Targeted business income tax credit " means an income tax credit available
                  under Section [ 9-2-1803 ] 63-38f-503 .
                      [(h)] (8) "Targeted business income tax credit eligibility form" means a document
                  provided annually to the business applicant by the [department] office that complies with the
                  requirements of Subsection [ 9-2-1803 ] 63-38f-503 (8).
                      [(2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, for
                  purposes of Subsection (1), the department shall make rules:]
                      [(a) to define what constitutes:]
                      [(i) substantial new employment;]
                      [(ii) new capital development; and]
                      [(iii) a project; and]


                      [(b) to establish a formula for determining the allocated cap amount for each business
                  applicant.]
                      Section 58. Section 63-38f-502 , which is renumbered from Section 9-2-1802 is
                  renumbered and amended to read:
                       [9-2-1802].     63-38f-502. Application for targeted business income tax credits.
                      (1) (a) For taxable years beginning on or after January 1, 2002, a business applicant may
                  elect to claim a targeted business income tax credit available under Section [ 9-2-1803 ]
                  63-38f-503 if the business applicant:
                      (i) is located in:
                      (A) an enterprise zone; and
                      (B) a county with:
                      (I) a population of less than 25,000; and
                      (II) an unemployment rate that for six months or more of each calendar year is at least
                  one percentage point higher than the state average;
                      (ii) meets the requirements of Section [ 9-2-412 ] 63-38f-412 ;
                      (iii) provides:
                      (A) a community investment project within the enterprise zone; and
                      (B) a portion of the community investment project during each taxable year for which the
                  business applicant claims the targeted business tax incentive; and
                      (iv) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, is
                  not engaged in the following, as defined by the State Tax Commission by rule:
                      (A) construction;
                      (B) retail trade; or
                      (C) public utility activities.
                      (b) For a taxable year for which a business applicant claims a targeted business income
                  tax credit available under this part, the business applicant may not claim or carry forward a tax
                  credit available under Section [ 9-2-413 ] 63-38f-413 , 59-7-610 , or 59-10-108.7 .
                      (2) (a) A business applicant seeking to claim a targeted business income tax credit under


                  this part shall file an application as provided in Subsection (2)(b) with the local zone
                  administrator by no later than June 1 of the year in which the business applicant is seeking to
                  claim a targeted business income tax credit.
                      (b) The application described in Subsection (2)(a) shall include:
                      (i) any documentation required by the local zone administrator to demonstrate that the
                  business applicant meets the requirements of Subsection (1);
                      (ii) a plan developed by the business applicant that outlines:
                      (A) if the community investment project includes substantial new employment, the
                  projected number and anticipated wage level of the jobs that the business applicant plans to
                  create as the basis for qualifying for a targeted business income tax credit;
                      (B) if the community investment project includes new capital development, a description
                  of the capital development the business applicant plans to make as the basis for qualifying for a
                  targeted business income tax credit; and
                      (C) a description of how the business applicant's plan coordinates with:
                      (I) the goals of the enterprise zone in which the business applicant is providing a
                  community investment project; and
                      (II) the overall economic development goals of the county or municipality in which the
                  business applicant is providing a community investment project; and
                      (iii) any additional information required by the local zone administrator.
                      (3) (a) The local zone administrator shall:
                      (i) evaluate an application filed under Subsection (2); and
                      (ii) determine whether the business applicant is eligible for a targeted business income
                  tax credit.
                      (b) If the local zone administrator determines that the business applicant is eligible for a
                  targeted business income tax credit, the local zone administrator shall:
                      (i) certify that the business applicant is eligible for the targeted business income tax
                  credit;
                      (ii) structure the targeted business income tax credit for the business applicant in


                  accordance with Section [ 9-2-1803 ] 63-38f-503 ; and
                      (iii) monitor a business applicant to ensure compliance with this section.
                      (4) A local zone administrator shall report to the [department] office by no later than
                  June 30 of each year:
                      (a) (i) any application approved by the local zone administrator during the last fiscal year;
                  and
                      (ii) the information established in Subsections [ 9-2-1803 (4)(a) through (d)]
                  63-38f-503 (4)(a) through (d) for each new business applicant; and
                      (b) (i) the status of any existing business applicants that the local zone administrator
                  monitors; and
                      (ii) any information required by the [department] office to determine the status of an
                  existing business applicant.
                      (5) (a) By July 15 of each year, the department shall notify the local zone administrator
                  of the allocated cap amount that each business applicant that the local zone administrator
                  monitors is eligible to claim.
                      (b) By September 15 of each year, the local zone administrator shall notify, in writing,
                  each business applicant that the local zone administrator monitors of the allocated cap amount
                  determined by the [department] office under Subsection (5)(a) that the business applicant is
                  eligible to claim for a taxable year.
                      Section 59. Section 63-38f-503 , which is renumbered from Section 9-2-1803 is
                  renumbered and amended to read:
                       [9-2-1803].     63-38f-503. Targeted business income tax credit structure -- Duties of
                  the local zone administrator -- Duties of the State Tax Commission.
                      (1) For taxable years beginning on or after January 1, 2002, a business applicant that is
                  certified under Subsection [ 9-2-1802 ] 63-38f-502 (3) and issued a targeted business tax credit
                  eligibility form by the [department] office under Subsection (8) may claim a refundable income
                  tax credit:
                      (a) against the business applicant's tax liability under:


                      (i) Title 59, Chapter 10, Individual Income Tax Act; or
                      (ii) Title 59, Chapter 7, Corporate Franchise and Income Taxes; and
                      (b) subject to requirements and limitations provided by this part.
                      (2) The total amount of the targeted business income tax credits allowed under this part
                  for all business applicants may not exceed $300,000 in any fiscal year.
                      (3) (a) A targeted business income tax credit allowed under this part for each community
                  investment project provided by a business applicant may not:
                      (i) be claimed by a business applicant for more than seven consecutive taxable years
                  from the date the business applicant first qualifies for a targeted business income tax credit on the
                  basis of a community investment project;
                      (ii) be carried forward or carried back;
                      (iii) exceed $100,000 in total amount for the community investment project period
                  during which the business applicant is eligible to claim a targeted business income tax credit; or
                      (iv) exceed in any year that the targeted business income tax credit is claimed the lesser
                  of:
                      (A) 50% of the maximum amount allowed by the local zone administrator; or
                      (B) the allocated cap amount determined by the [department] office under Subsection
                  [ 9-2-1802 ] 63-38f-502 (5).
                      (b) A business applicant may apply to the local zone administrator to claim a targeted
                  business income tax credit allowed under this part for each community investment project
                  provided by the business applicant as the basis for its eligibility for a targeted business income
                  tax credit.
                      (4) Subject to other provisions of this section, the local zone administrator shall establish
                  for each business applicant that qualifies for a targeted business income tax credit:
                      (a) criteria for maintaining eligibility for the targeted business income tax credit that are
                  reasonably related to the community investment project that is the basis for the business
                  applicant's targeted business income tax credit;
                      (b) the maximum amount of the targeted business income tax credit the business


                  applicant is allowed for the community investment project period;
                      (c) the time period over which the total amount of the targeted business income tax credit
                  may be claimed;
                      (d) the maximum amount of the targeted business income tax credit that the business
                  applicant will be allowed to claim each year; and
                      (e) requirements for a business applicant to report to the local zone administrator
                  specifying:
                      (i) the frequency of the business applicant's reports to the local zone administrator, which
                  shall be made at least quarterly; and
                      (ii) the information needed by the local zone administrator to monitor the business
                  applicant's compliance with this Subsection (4) or Section [ 9-2-1802 ] 63-38f-502 that shall be
                  included in the report.
                      (5) In accordance with Subsection (4)(e), a business applicant allowed a targeted
                  business income tax credit under this part shall report to the local zone administrator.
                      (6) The amount of a targeted business income tax credit that a business applicant is
                  allowed to claim for a taxable year shall be reduced by 25% for each quarter in which the
                  [department] office or the local zone administrator determines that the business applicant has
                  failed to comply with a requirement of Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
                      (7) The [department] office or local zone administrator may audit a business applicant to
                  ensure:
                      (a) eligibility for a targeted business income tax credit; or
                      (b) compliance with Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
                      (8) The [department] office shall issue a targeted business income tax credit eligibility
                  form in a form jointly developed by the State Tax Commission and the [department] office no
                  later than 30 days after the last day of the business applicant's taxable year showing:
                      (a) the maximum amount of the targeted business income tax credit that the business
                  applicant is eligible for that taxable year;
                      (b) any reductions in the maximum amount of the targeted business income tax credit


                  because of failure to comply with a requirement of Subsection (3) or Section [ 9-2-1802 ]
                  63-38f-502 ;
                      (c) the allocated cap amount that the business applicant may claim for that taxable year;
                  and
                      (d) the actual amount of the targeted business income tax credit that the business
                  applicant may claim for that taxable year.
                      (9) (a) A business applicant shall retain the targeted business income tax credit eligibility
                  form provided by the [department] office under this Subsection (9).
                      (b) The State Tax Commission may audit a business applicant to ensure:
                      (i) eligibility for a targeted business income tax credit; or
                      (ii) compliance with Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
                      Section 60. Section 63-38f-601 , which is renumbered from Section 9-2-501 is
                  renumbered and amended to read:
                 
Part 6. State Advisory Council on Science and Technology

                       [9-2-501].     63-38f-601. Purpose.
                      The purpose of this part is to establish an advisory council on science and technology to
                  assist in the development of programs, communication, and use of science and technology in
                  governmental organizations in the state [of Utah].
                      Section 61. Section 63-38f-602 , which is renumbered from Section 9-2-502 is
                  renumbered and amended to read:
                       [9-2-502].     63-38f-602. Definition of terms.
                      As used in this part:
                      (1) "Adviser" means the state science adviser appointed under this part.
                      (2) "Council" means the State Advisory Council on Science and Technology created
                  under this part.
                      (3) "Director" means the governor's director for economic development.
                      Section 62. Section 63-38f-603 , which is renumbered from Section 9-2-503 is
                  renumbered and amended to read:


                       [9-2-503].     63-38f-603. Creation.
                      There is created the State Advisory Council on Science and Technology within the
                  [Division of Business and] Governor's Office of Economic Development, which shall perform
                  the functions and duties provided in this part.
                      Section 63. Section 63-38f-604 , which is renumbered from Section 9-2-504 is
                  renumbered and amended to read:
                       [9-2-504].     63-38f-604. Members -- Appointment -- Terms -- Qualifications --
                  Vacancies -- Chair and vice chair -- Executive secretary -- Executive committee -- Quorum
                  -- Expenses.
                      (1) The council comprises the following nonvoting members or their designees:
                      (a) the adviser;
                      (b) the executive director of the Department of Natural Resources;
                      (c) the executive director of the Department of Community and Economic Development;
                      (d) the executive director of the Department of Health;
                      (e) the executive director of the Department of Environmental Quality;
                      (f) the commissioner of agriculture and food;
                      (g) the commissioner of higher education;
                      (h) the state planning coordinator; and
                      (i) the executive director of the Department of Transportation.
                      (2) The governor may appoint other voting members, not to exceed 12.
                      (3) (a) Except as required by Subsection (b), as terms of current council members expire,
                  the governor shall appoint each new member or reappointed member to a four-year term.
                      (b) Notwithstanding the requirements of Subsection (a), the governor shall, at the time of
                  appointment or reappointment, adjust the length of terms to ensure that the terms of council
                  members are staggered so that approximately half of the council is appointed every two years.
                      (4) The governor shall consider all institutions of higher education in the state in the
                  appointment of council members.
                      (5) The voting members of the council shall be experienced or knowledgeable in the


                  application of science and technology to business, industry, or public problems and have
                  demonstrated their interest in and ability to contribute to the accomplishment of the purposes of
                  this part.
                      (6) When a vacancy occurs in the membership for any reason, the replacement shall be
                  appointed for the unexpired term.
                      (7) (a) Each year the council shall select from its membership a chair and a vice chair.
                      (b) The chair and vice chair shall hold office for one year or until a successor is
                  appointed and qualified.
                      (8) The adviser [shall serve] serves as executive secretary of the council.
                      (9) An executive committee shall be established consisting of the chair, vice chair, and
                  the adviser.
                      (10) (a) In order to conduct business matters of the council at regularly convened
                  meetings, a quorum consisting of a simple majority of the total voting membership of the council
                  is required.
                      (b) All matters of business affecting public policy require not less than a simple majority
                  of affirmative votes of the total membership.
                      (11) (a) (i) Members who are not government employees shall receive no compensation
                  or benefits for their services, but may receive per diem and expenses incurred in the performance
                  of the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the council at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) (i) Higher education members who do not receive salary, per diem, or expenses from


                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties from the committee at the rates established by the Division of
                  Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) Higher education members may decline to receive per diem and expenses for their
                  service.
                      Section 64. Section 63-38f-605 , which is renumbered from Section 9-2-505 is
                  renumbered and amended to read:
                       [9-2-505].     63-38f-605. Duties and powers.
                      (1) The council shall:
                      (a) encourage the use of science and technology in the administration of state and local
                  government;
                      (b) develop programs whereby state agencies and the several public and private
                  institutions of higher education and technical colleges within the state may assist business and
                  industry in the utilization of science and technology;
                      (c) further communication between agencies of federal, state, and local government who
                  wish to utilize science and technology;
                      (d) develop programs of cooperation on matters of science and technology between:
                      (i) state and local government agencies;
                      (ii) the several public and private institutions of higher education and technical colleges
                  within the state; and
                      (iii) business and industry within the state; or
                      (iv) between any combination of these;
                      (e) provide a means whereby government, business, industry, and higher education may
                  be represented in the formulation and implementation of state policies and programs on matters
                  of science and technology;
                      (f) review, catalog, and compile the research and development uses by the state
                  universities of the revenue derived from mineral lease funds on state and federal lands;
                      (g) provide to the Legislature an annual report on the expenditure and utilization of these


                  mineral lease funds;
                      (h) make recommendations to the Legislature on the further uses of these mineral lease
                  funds in order to stimulate research and development directed toward the more effective
                  utilization of the state's natural resources; and
                      (i) prepare and lodge an annual report with the governor and with the Legislature.
                      (2) The council may:
                      (a) in accordance with Title 63, Chapter 40, Federal Assistance Management Program,
                  apply for, receive, and disburse funds, contributions, or grants from whatever source for the
                  purposes set forth in this part;
                      (b) employ, compensate, and prescribe the duties and powers of those individuals,
                  subject to the provisions of this part relating to the adviser, necessary to execute the duties and
                  powers of the council; and
                      (c) enter into contracts for the purposes of this part.
                      Section 65. Section 63-38f-606 , which is renumbered from Section 9-2-506 is
                  renumbered and amended to read:
                       [9-2-506].     63-38f-606. Adviser -- Duties and powers.
                      (1) The adviser shall be appointed by the governor.
                      (2) The adviser shall be experienced or knowledgeable in the application of science and
                  technology to business, industry, or public problems and shall have demonstrated [his] interest in
                  or ability to contribute to the accomplishment of the purposes of this part.
                      (3) The adviser shall be compensated pursuant to the wage and salary classification plan
                  for appointed officers of the state [of Utah] currently in effect.
                      (4) (a) The adviser shall have those duties and powers the council assigns.
                      (b) The adviser, [subject to the supervision] with the advice of the council, may enter
                  into contracts and agreements and may incur expenses necessary to fulfill the purposes of this
                  part.
                      (5) The [council] adviser shall be administratively responsible to the director of the
                  [Division of Business and Economic Development] office.


                      Section 66. Section 63-38f-607 , which is renumbered from Section 9-2-507 is
                  renumbered and amended to read:
                       [9-2-507].     63-38f-607. Request for information.
                      All departments, divisions, boards, commissions, agencies, institutions, and all other
                  instrumentalities of the state shall, upon request of the council, provide the council with any
                  information that these instrumentalities have concerning research in science and technology.
                      Section 67. Section 63-38f-701 , which is renumbered from Section 9-2-601 is
                  renumbered and amended to read:
                 
Part 7. Centers of Excellence

                       [9-2-601].     63-38f-701. Purpose.
                      (1) (a) The Legislature recognizes that the growth of new industry and expansion of
                  existing industry requires a strong technology base, new ideas, concepts, innovations, and
                  prototypes.
                      (b) These generally come from strong research colleges and universities.
                      (c) Technical research in Utah's colleges and universities should be enhanced and
                  expanded, particularly in those areas targeted by the state for economic development.
                      (d) Most states are enhancing their research base by direct funding, usually on a matching
                  basis.
                      (e) The purpose of this part is to catalyze and enhance the growth of these technologies
                  by encouraging interdisciplinary research activities in targeted areas.
                      (f) The Legislature recognizes that one source of funding is in matching state funds with
                  federal funds and industrial support to provide the needed new technologies.
                      (2) The Legislature recommends that the governor consider the allocation of economic
                  development funds for Centers of Excellence to be matched by industry and federal grants on at
                  least a two-for-one basis.
                      (3) (a) The Legislature recommends that [such] the funds be allocated on a competitive
                  basis to the various colleges and universities in the state.
                      (b) The funds made available should be used to support interdisciplinary research in


                  specialized Centers of Excellence in technologies that are considered to have potential for
                  economic development in this state.
                      Section 68. Section 63-38f-702 , which is renumbered from Section 9-2-602 is
                  renumbered and amended to read:
                       [9-2-602].     63-38f-702. Title.
                      [(1)] This part is known as the "Centers of Excellence Act."
                      [(2) As used in this part, "Centers of Excellence" means university-based,
                  industry-supported, cooperative research and development programs.]
                      Section 69. Section 63-38f-703 is enacted to read:
                      63-38f-703. Definitions.
                      As used in this part, "centers of excellence" means university-based, industry-supported,
                  cooperative research and development programs.
                      Section 70. Section 63-38f-704 , which is renumbered from Section 9-2-603 is
                  renumbered and amended to read:
                       [9-2-603].     63-38f-704. Administration -- Grants.
                      (1) This part shall be administered by the [Division of Business and] Governor's Office
                  of Economic Development.
                      (2) The [department] office may award grants to the various colleges and universities in
                  the state for the purposes of this part.
                      (3) (a) [Recommendations for funding] Funding allocations shall be made by the
                  [division] office with the advice of the State Advisory Council for Science and Technology[,
                  with the approval of] and the board.
                      (b) Each proposal shall receive the best available outside review.
                      (4) (a) In considering each proposal, the [division] office shall weigh technical merit, the
                  level of matching funds from private and federal sources, and the potential for job creation and
                  economic development.
                      (b) Proposals or consortia that combine and coordinate related research at two or more
                  colleges and universities shall be encouraged.


                      (5) The State Advisory Council on Science and Technology shall review the activities
                  and progress of individual centers on a regular basis and assist the [division] office in preparing
                  an annual report on the accomplishments and direction of the Centers of Excellence Program.
                      Section 71. Section 63-38f-801 , which is renumbered from Section 9-2-901 is
                  renumbered and amended to read:
                 
Part 8. Shared Foreign Sales Corporations

                       [9-2-901].     63-38f-801. Creation of shared foreign sales corporations.
                      The [department] office may create one or more shared foreign sales corporations,
                  qualifying as such under Section 927(g), Internal Revenue Code of 1986, and may name directors
                  or managers of these corporations at its discretion.
                      Section 72. Section 63-38f-802 , which is renumbered from Section 9-2-902 is
                  renumbered and amended to read:
                       [9-2-902].     63-38f-802. Management fees.
                      (1) All expenses incurred in establishing and maintaining shared foreign sales
                  corporations shall be initially paid for by the [department] office but shall be reimbursed to the
                  [department] office by the participants in each shared foreign sales corporation created under
                  Section [ 9-2-901 ] 63-38f-801 on a pro rata basis determined by the [department] office.
                      (2) The [department] office may charge the participants management fees that are
                  reasonable to maintain and manage each of the shared foreign sales corporations.
                      (3) All monies obtained by the [department] office in excess of [department] office
                  expenditures in connection with the management of shared foreign sales corporations may be
                  used at the discretion of the [department] office for the [department's] office's other activities in
                  promoting exporting.
                      (4) The fees collected and the expenditures made shall be reported to the Legislature
                  each year.
                      Section 73. Section 63-38f-901 , which is renumbered from Section 9-2-1201 is
                  renumbered and amended to read:
                 
Part 9. Industrial Assistance Fund


                       [9-2-1201].     63-38f-901. Purpose statement.
                      The Legislature finds and declares that the fostering and development of industry in Utah
                  is a state public purpose necessary to assure the welfare of its citizens, the growth of its economy,
                  and adequate employment for its citizens.
                      Section 74. Section 63-38f-902 , which is renumbered from Section 9-2-1202 is
                  renumbered and amended to read:
                       [9-2-1202].     63-38f-902. Definitions.
                      As used in this part:
                      (1) "Administrator" means the [executive] director [of the Department of Community
                  and Economic Development] or the [executive] director's designee.
                      (2) "Board" means the Board of Business and Economic Development.
                      (3) "Company creating an economic impediment" means a company that discourages
                  economic development within a reasonable radius of its location because of:
                      (a) odors;
                      (b) noise;
                      (c) pollution;
                      (d) health hazards; or
                      (e) other activities similar to those described in Subsections (3)(a) through (d).
                      (4) "Economic opportunities" means unique business situations or community
                  circumstances which lend themselves to the furtherance of the economic interests of the state by
                  providing a catalyst or stimulus to the growth or retention, or both, of commerce and industry in
                  the state.
                      (5) "Economically disadvantaged rural area" means a geographic area designated by the
                  board under Section [ 9-2-1207 ] 63-38f-909 .
                      (6) "Fund" means the restricted account known as the Industrial Assistance Fund created
                  in Section [ 9-2-1203 ] 63-38f-903 .
                      (7) "Replacement company" means a company locating its business or part of its
                  business in a location vacated by a company creating an economic impediment.


                      (8) "Targeted industry" means an industry or group of industries targeted by the board[,]
                  under Section [ 9-2-1207 ] 63-38f-909 , for economic development in the state.
                      Section 75. Section 63-38f-903 , which is renumbered from Section 9-2-1203 is
                  renumbered and amended to read:
                       [9-2-1203].     63-38f-903. Industrial Assistance Fund created.
                      (1) There is created within the General Fund a restricted account known as the Industrial
                  Assistance Fund of which:
                      (a) up to 50% shall be used in economically disadvantaged rural areas; and
                      (b) up to 20% may be used to take timely advantage of economic opportunities as they
                  arise.
                      (2) The fund shall be administered by the administrator under the policy direction of the
                  board.
                      (3) The administrator may hire appropriate support staff.
                      (4) The cost of administering the fund shall be paid from monies in the fund.
                      (5) Interest accrued from investment of monies in the fund shall remain in the fund.
                      Section 76. Section 63-38f-904 , which is renumbered from Section 9-2-1204 is
                  renumbered and amended to read:
                       [9-2-1204].     63-38f-904. Loans, grants, and assistance -- Repayment -- Earned
                  credits.
                      (1) (a) A company that qualifies under Section [ 9-2-1205 ] 63-38f-905 may receive loans,
                  grants, or other financial assistance from the fund for expenses related to establishment,
                  relocation, or development of industry in Utah.
                      (b) A company creating an economic impediment that qualifies under Section
                  [ 9-2-1205.5 ] 63-38f-907 may in accordance with this part receive loans, grants, or other financial
                  assistance from the fund for the expenses of the company creating an economic impediment
                  related to:
                      (i) relocation to a rural area in Utah of the company creating an economic impediment;
                  and


                      (ii) the siting of a replacement company.
                      (c) An entity offering an economic opportunity that qualifies under Section [ 9-2-1205.8 ]
                  63-38f-908 may:
                      (i) receive loans, grants, or other financial assistance from the fund for expenses related
                  to the establishment, relocation, retention, or development of industry in the state; and
                      (ii) include infrastructure or other economic development precursor activities that act as a
                  catalyst and stimulus for economic activity likely to lead to the maintenance or enlargement of
                  the state's tax base.
                      (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the
                  structure, amount, and nature of any loan, grant, or other financial assistance from the fund.
                      (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment or
                  return to the state, including cash or credit, equals at least the amount of the assistance together
                  with an annual interest charge as negotiated by the administrator.
                      (c) Payments resulting from grants awarded from the fund shall be made only after the
                  administrator has determined that the company has satisfied the conditions upon which the
                  payment or earned credit was based.
                      (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a
                  system of earned credits that may be used to support grant payments or in lieu of cash repayment
                  of a fund loan obligation.
                      (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors
                  determined by the administrator, including:
                      (A) the number of Utah jobs created;
                      (B) the increased economic activity in Utah; or
                      (C) other events and activities that occur as a result of the fund assistance.
                      (b) (i) The administrator shall provide for a system of credits to be used to support grant
                  payments or in lieu of cash repayment of a fund loan when loans are made to a company creating
                  an economic impediment.
                      (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors


                  determined by the administrator, including:
                      (A) the number of Utah jobs created;
                      (B) the increased economic activity in Utah; or
                      (C) other events and activities that occur as a result of the fund assistance.
                      (4) (a) A cash loan repayment or other cash recovery from a company receiving
                  assistance under this section, including interest, shall be deposited into the fund.
                      (b) The administrator and the Division of Finance shall determine the manner of
                  recognizing and accounting for the earned credits used in lieu of loan repayments or to support
                  grant payments as provided in Subsection (3).
                      (5) (a) At the end of each fiscal year, after the transfer of surplus General Fund revenues
                  has been made to the General Fund Budget Reserve Account as provided in Section 63-38-2.5 ,
                  any additional unrestricted, undesignated General Fund balance shall be earmarked to the
                  Industrial Assistance Fund in an amount equal to any credit that has accrued under this part.
                      (b) These credit amounts may not be used for purposes of the fund as provided in this
                  part until appropriated by the Legislature.
                      Section 77. Section 63-38f-905 , which is renumbered from Section 9-2-1205 is
                  renumbered and amended to read:
                       [9-2-1205].     63-38f-905. Qualification for assistance.
                      (1) Except as provided in Section [ 9-2-1205.5 ] 63-38f-907 or Section [ 9-2-1205.8 ]
                  63-38f-908 , 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 employees, vendors, subcontractors, or other businesses in an amount
                  proportional with monies provided from the fund at a minimum ratio of 2 to 1 per year or other
                  more stringent requirements as established from time to time by the board for a minimum period
                  of five years beginning with the date the loan or grant was approved;
                      (b) 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 loan
                  provided by the fund; and
                      (c) satisfy other criteria the administrator considers appropriate.
                      (2) (a) The administrator may exempt an applicant from the requirements of Subsection
                  (1)(a) or [(1)](b) 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 part of a targeted industry;
                      (iii) the applicant is a quasi-public corporation organized under Title 16, Chapter 6a,
                  Utah Revised Nonprofit Corporation Act, or Title 63E, Chapter 2, Independent Corporations Act,
                  and its operations, as demonstrated to the satisfaction of the administrator, will provide
                  significant economic stimulus to the growth of commerce and industry in the state; or
                      (iv) the applicant is an entity offering an economic opportunity under Section
                  [ 9-2-1205.8 ] 63-38f-908 .
                      (b) The administrator may not exempt the applicant from the requirement under
                  Subsection [ 9-2-1204 ] 63-38f-904 (2)(b) that the loan be structured so that the repayment or
                  return to the state equals at least the amount of the assistance together with an annual interest
                  charge.
                      (3) The administrator shall:
                      (a) for applicants not described in Subsection (2)(a):
                      (i) make findings as to whether or not each applicant has satisfied each of the conditions
                  set forth in Subsection (1); and
                      (ii) monitor the continued compliance by each applicant with each of the conditions set
                  forth in Subsection (1) for five years;
                      (b) for applicants described in Subsection (2)(a), make findings as to whether the
                  economic activities of each applicant has resulted in the creation of new jobs on a per capita basis
                  in the economically disadvantaged rural area or targeted industry in which the applicant is
                  located;


                      (c) 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 [ 9-2-1205.1 ]
                  63-38f-906 ; and
                      (d) make funding decisions based upon appropriate findings and compliance.
                      Section 78. Section 63-38f-906 , which is renumbered from Section 9-2-1205.1 is
                  renumbered and amended to read:
                       [9-2-1205.1].     63-38f-906. Agreements.
                      The administrator shall enter into agreements with each successful applicant that have
                  specific terms and conditions for each loan or assistance, including:
                      (1) repayment schedules;
                      (2) interest rates;
                      (3) specific economic activity required to qualify for the loan or assistance or for
                  repayment credits;
                      (4) collateral or security, if any; and
                      (5) other terms and conditions considered appropriate by the administrator.
                      Section 79. Section 63-38f-907 , which is renumbered from Section 9-2-1205.5 is
                  renumbered and amended to read:
                       [9-2-1205.5].     63-38f-907. Financial assistance to companies that create
                  economic impediments.
                      (1) (a) The administrator may provide monies from the fund to a company creating an
                  economic impediment if that company:
                      (i) applies to the administrator;
                      (ii) relocates to a rural area in Utah; and
                      (iii) meets the qualifications of Subsection (1)(b).
                      (b) Except as provided by Subsection (2), to qualify for financial assistance from the
                  fund, a company creating an economic impediment shall:
                      (i) demonstrate to the satisfaction of the administrator that the company creating an
                  economic impediment, its replacement company, or in the aggregate the company creating the


                  economic impediment and its replacement company:
                      (A) will expend funds in Utah with employees, vendors, subcontractors, or other
                  businesses in an amount proportional with monies provided from the fund at a minimum ratio of
                  2 to 1 per year or other more stringent requirements as established from time to time by the board
                  for a minimum period of five years beginning with the date the loan or grant was approved; and
                      (B) can sustain economic activity in the state sufficient to repay, by means of cash or
                  appropriate credits, the loan provided by the fund; and
                      (ii) satisfy other criteria the administrator considers appropriate.
                      (2) (a) The administrator may exempt a company creating an economic impediment from
                  the requirements of Subsection (1)(b)(i)(A) if:
                      (i) the financial assistance is provided to a company creating an economic impediment
                  for the purpose of locating all or any portion of its operations to an economically disadvantaged
                  rural area; or
                      (ii) its replacement company is part of a targeted industry.
                      (b) The administrator may not exempt a company creating an economic impediment
                  from the requirement under Subsection [ 9-2-1204 ] 63-38f-904 (2)(b) that the loan be structured
                  so that the repayment or return to the state equals at least the amount of the assistance together
                  with an annual interest charge.
                      (3) The administrator shall:
                      (a) make findings as to whether or not a company creating an economic impediment, its
                  replacement company, or both, have satisfied each of the conditions set forth in Subsection (1);
                      (b) monitor the compliance by a company creating an economic impediment, its
                  replacement company, or both, with:
                      (i) each of the conditions set forth in Subsection (1); and
                      (ii) any contract or agreement under Section [ 9-2-1205.1 ] 63-38f-906 entered into
                  between:
                      (A) the company creating an economic impediment; and
                      (B) the state; and


                      (c) make funding decisions based upon appropriate findings and compliance.
                      Section 80. Section 63-38f-908 , which is renumbered from Section 9-2-1205.8 is
                  renumbered and amended to read:
                       [9-2-1205.8].     63-38f-908. Financial assistance to entities offering economic
                  opportunities.
                      (1) Subject to the duties and powers of the board under Section [ 9-2-204 ] 63-38f-303 ,
                  the administrator may provide monies from the fund to an entity offering an economic
                  opportunity if that entity:
                      (a) applies to the administrator; and
                      (b) meets the qualifications of Subsection (2).
                      (2) The applicant shall:
                      (a) demonstrate to the satisfaction of the administrator the nature of the economic
                  opportunity and the related benefit to the economic well-being of the state by providing evidence
                  documenting the logical and compelling linkage, either direct or indirect, between the
                  expenditure of monies necessitated by the economic opportunity and the likelihood that the
                  state's tax base will be maintained or enlarged;
                      (b) demonstrate how the funding request will act in concert with other state, federal, or
                  local agencies to achieve the economic benefit;
                      (c) demonstrate how the funding request will act in concert with free market principles;
                      (d) satisfy other criteria the administrator considers appropriate; and
                      (e) be either:
                      (i) an entity whose purpose is to exclusively or substantially promote, develop, or
                  maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
                  specific components of the state; or
                      (ii) a company or individual that does not otherwise qualify under Section [ 9-2-1205 ]
                  63-38f-905 .
                      (3) Subject to the duties and powers of the board under Section [ 9-2-204 ] 63-38f-303 ,
                  the administrator shall:


                      (a) make findings as to whether an applicant has satisfied each of the conditions set forth
                  in Subsection (2);
                      (b) establish benchmarks and timeframes in which progress toward the completion of the
                  agreed upon activity is to occur;
                      (c) monitor compliance by an applicant with any contract or agreement entered into by
                  the applicant and the state as provided by Section [ 9-2-1205.1 ] 63-38f-906 ; and
                      (d) make funding decisions based upon appropriate findings and compliance.
                      Section 81. Section 63-38f-909 , which is renumbered from Section 9-2-1207 is
                  renumbered and amended to read:
                       [9-2-1207].     63-38f-909. Annual policy considerations.
                      (1) The board shall determine annually which industries or groups of industries shall be
                  targeted industries as defined in Section [ 9-2-1202 ] 63-38f-902 .
                      (2) In designating an economically disadvantaged rural area, the board shall consider the
                  average agricultural and nonagricultural wage, personal income, unemployment, and employment
                  in the area.
                      (3) In evaluating the economic impact of applications for assistance, the board shall use
                  an econometric cost-benefit model or models adopted by the Governor's Office of Planning and
                  Budget.
                      (4) The board may establish:
                      (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
                  return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
                  Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
                  such as the rate of unemployment; and
                      (b) minimum applicant expense ratios, as long as they are at least equal to those required
                  under Subsection [ 9-2-1205 ] 63-38f-905 (1)(a) or [ 9-2-1205.5 ] 63-38f-907 (1)(b)(i)(A).
                      Section 82. Section 63-38f-1001 , which is renumbered from Section 9-2-1401 is
                  renumbered and amended to read:
                 
Part 10. Biotechnology Regulation


                       [9-2-1401].     63-38f-1001. Definitions.
                      As used in this part, "biotechnology" is:
                      (1) the modification of living organisms by recombinant DNA techniques; and
                      (2) a means to accomplish, through genetic engineering, the same kinds of modifications
                  accomplished through traditional genetic techniques such as crossbreeding.
                      Section 83. Section 63-38f-1002 , which is renumbered from Section 9-2-1402 is
                  renumbered and amended to read:
                       [9-2-1402].     63-38f-1002. Confidential information.
                      (1) A state agency having access under federal law to biotechnology trade secrets and
                  related confidential information shall manage the trade secrets and related confidential records as
                  protected records under Title 63, Chapter 2, Government Records Access and Management Act.
                      (2) The records described in this section may be disclosed under the balancing provisions
                  of Title 63, Chapter 2, Government Records Access and Management Act, when a determination
                  is made that disclosure is essential for the protection of the public's health or environment.
                      Section 84. Section 63-38f-1003 , which is renumbered from Section 9-2-1403 is
                  renumbered and amended to read:
                       [9-2-1403].     63-38f-1003. Preemption of local regulation.
                      (1) A county, city, town, or other political subdivision may not regulate the technological
                  processes relating to the development and use of biotechnologically created materials and
                  organisms.
                      (2) This preemption does not affect the powers of a county, city, town, or other political
                  subdivision, including [but not limited to] the power to regulate land use, business, industry,
                  construction, and public utilities, to protect the public health or environment, or to provide fire
                  protection and other public safety services.
                      Section 85. Section 63-38f-1101 , which is renumbered from Section 9-2-1601 is
                  renumbered and amended to read:
                 
Part 11. Recycling Market Development Zone Act

                       [9-2-1601].     63-38f-1101. Title.


                      This part is known as the "Recycling Market Development Zone Act."
                      Section 86. Section 63-38f-1102 , which is renumbered from Section 9-2-1602 is
                  renumbered and amended to read:
                       [9-2-1602].     63-38f-1102. Definitions.
                      As used in this part:
                      (1) "Composting" means the controlled decay of landscape waste or sewage sludge and
                  organic industrial waste, or a mixture of these, by the action of bacteria, fungi, molds, and other
                  organisms.
                      (2) "Postconsumer waste material" means any product generated by a business or
                  consumer that has served its intended end use, and that has been separated from solid waste for
                  the purposes of collection, recycling, and disposition and that does not include secondary waste
                  material.
                      (3) (a) "Recovered materials" means waste materials and by-products that have been
                  recovered or diverted from solid waste.
                      (b) "Recovered materials" does not include those materials and by-products generated
                  from, and commonly reused within, an original manufacturing process.
                      (4) (a) "Recycling" means the diversion of materials from the solid waste stream and the
                  beneficial use of the materials and includes a series of activities by which materials that would
                  become or otherwise remain waste are diverted from the waste stream for collection, separation,
                  and processing, and are used as raw materials or feedstocks in lieu of or in addition to virgin
                  materials in the manufacture of goods sold or distributed in commerce or the reuse of the
                  materials as substitutes for goods made from virgin materials.
                      (b) "Recycling" does not include burning municipal solid waste for energy recovery.
                      (5) "Recycling market development zone" or "zone" means an area designated by the
                  [department] office as meeting the requirements of this part.
                      (6) (a) "Secondary waste material" means industrial by-products that go to disposal
                  facilities and waste generated after completion of a manufacturing process.
                      (b) "Secondary waste material" does not include internally generated scrap commonly


                  returned to industrial or manufacturing processes, such as home scrap and mill broke.
                      (7) "State tax incentives," "tax incentives," or "tax benefits" means the tax credits
                  available under Sections 59-7-608 and 59-10-108.7 .
                      Section 87. Section 63-38f-1103 , which is renumbered from Section 9-2-1603 is
                  renumbered and amended to read:
                       [9-2-1603].     63-38f-1103. Duties of the office.
                      The [department] office shall:
                      (1) facilitate recycling development zones through state support of county incentives
                  which encourage development of manufacturing enterprises that use recycling materials currently
                  collected;
                      (2) evaluate an application from a county or municipality executive authority to be
                  designated as a recycling market development zone and determine if the county or municipality
                  qualifies for that designation;
                      (3) provide technical assistance to municipalities and counties in developing applications
                  for designation as a recycling market development zone;
                      (4) assist counties and municipalities designated as recycling market development zones
                  in obtaining assistance from the federal government and agencies of the state;
                      (5) assist any qualified business in obtaining the benefits of any incentive or inducement
                  program authorized by this part;
                      (6) monitor the implementation and operation of this part and conduct a continuing
                  evaluation of the progress made in the recycling market development zone; and
                      (7) submit an annual written report evaluating the effectiveness of the program and
                  providing recommendations for legislation to the Workforce Services and Economic
                  Development Interim Committee and Natural Resources, Agriculture, and Environment Interim
                  Committee not later than November 1 of each year.
                      Section 88. Section 63-38f-1104 , which is renumbered from Section 9-2-1604 is
                  renumbered and amended to read:
                       [9-2-1604].     63-38f-1104. Criteria for recycling market development zone --


                  Application process and fees.
                      (1) An area may be designated as a recycling market development zone only if:
                      (a) the county or municipality agrees to make a qualifying local contribution under
                  Section [ 9-2-1605 ] 63-38f-1105 ; and
                      (b) the county or municipality provides for postconsumer waste collection for recycling
                  within the county or municipality.
                      (2) The executive authority of any municipality or county desiring to be designated as a
                  recycling market development zone shall:
                      (a) obtain the written approval of the municipality or county's legislative body; and
                      (b) file an application with the [department] office demonstrating the county or
                  municipality meets the requirements of this part.
                      (3) The application shall be in a form prescribed by the [department] office, and shall
                  include:
                      (a) a plan developed by the county or municipality that identifies local contributions
                  meeting the requirements of Section [ 9-2-1605 ] 63-38f-1105 ;
                      (b) a county or municipality development plan that outlines:
                      (i) the specific investment or development reasonably expected to take place;
                      (ii) any commitments obtained from businesses to participate, and in what capacities
                  regarding recycling markets;
                      (iii) the county's or municipality's economic development plan and demonstration of
                  coordination between the zone and the county or municipality in overall development goals;
                      (iv) zoning requirements demonstrating that sufficient portions of the proposed zone area
                  are zoned as appropriate for the development of commercial, industrial, or manufacturing
                  businesses;
                      (v) the county's or municipality's long-term waste management plan and evidence that
                  the zone will be adequately served by the plan; and
                      (vi) the county or municipality postconsumer waste collection infrastructure;
                      (c) the county's or municipality's proposed means of assessing the effectiveness of the


                  development plan or other programs implemented within the zone;
                      (d) state whether within the zone either of the following will be established:
                      (i) commercial manufacturing or industrial processes that will produce end products that
                  consist of not less than 50% recovered materials, of which not less than 25% is postconsumer
                  waste material; or
                      (ii) commercial composting;
                      (e) any additional information required by the [department] office; and
                      (f) any additional information the county or municipality considers relevant to its
                  designation as a recycling market development zone.
                      (4) A county or municipality applying for designation as a recycling market development
                  zone shall pay to the [department] office an application fee determined under Section 63-38-3.2 .
                      Section 89. Section 63-38f-1105 , which is renumbered from Section 9-2-1605 is
                  renumbered and amended to read:
                       [9-2-1605].     63-38f-1105. Qualifying local contributions.
                      Qualifying local contributions to the recycling market development zone may vary
                  depending on available resources, and may include:
                      (1) simplified procedures for obtaining permits;
                      (2) dedication of available government grants;
                      (3) waiver of business license or permit fees;
                      (4) infrastructure improvements;
                      (5) private contributions;
                      (6) utility rate concessions;
                      (7) suspension or relaxation of locally originated zoning laws or general plans; and
                      (8) other proposed local contributions as the [department] office finds promote the
                  purposes of this part.
                      Section 90. Section 63-38f-1106 , which is renumbered from Section 9-2-1606 is
                  renumbered and amended to read:
                       [9-2-1606].     63-38f-1106. Eligibility review.


                      (1) The [department] office shall:
                      (a) review and evaluate an application submitted under Section [ 9-2-1604 ] 63-38f-1104 ;
                  and
                      (b) determine whether the municipality or county is eligible for designation as a recycling
                  market development zone.
                      (2) In designating recycling market development zones, the [department] office shall
                  consider:
                      (a) whether the current waste management practices and conditions of the county or
                  municipality are favorable to the development of postconsumer waste material markets;
                      (b) whether the creation of the zone is necessary to assist in attracting private sector
                  recycling investments to the area; and
                      (c) the amount of available landfill capacity to serve the zone.
                      Section 91. Section 63-38f-1107 , which is renumbered from Section 9-2-1607 is
                  renumbered and amended to read:
                       [9-2-1607].     63-38f-1107. Quarterly consideration.
                      The [department] office shall take action quarterly on any application requesting
                  designation as a recycling market development zone.
                      Section 92. Section 63-38f-1108 , which is renumbered from Section 9-2-1608 is
                  renumbered and amended to read:
                       [9-2-1608].     63-38f-1108. Duration of designation.
                      A recycling market development zone designation ends five years from the date the
                  [department] office designates the area as a recycling market development zone, at the end of
                  which the county or municipality may reapply for the designation.
                      Section 93. Section 63-38f-1109 , which is renumbered from Section 9-2-1609 is
                  renumbered and amended to read:
                       [9-2-1609].     63-38f-1109. Revocation of designations.
                      (1) The [department] office may revoke the designation of a recycling market
                  development zone if no businesses utilize the tax incentives during any calendar year.


                      (2) Before revocation of the zone, the [department] office shall conduct a public hearing
                  within a reasonable distance of the zone to determine reasons for inactivity and explore possible
                  alternative actions.
                      Section 94. Section 63-38f-1110 , which is renumbered from Section 9-2-1610 is
                  renumbered and amended to read:
                       [9-2-1610].     63-38f-1110. Recycling market development zones credit.
                      For a taxpayer within a recycling market development zone, there are allowed the credits
                  against tax as provided by Sections 59-7-610 and 59-10-108.7 .
                      Section 95. Section 63-38f-1111 , which is renumbered from Section 9-2-1611 is
                  renumbered and amended to read:
                       [9-2-1611].     63-38f-1111. Annual report.
                      (1) A county or municipality designated as a recycling market development zone shall
                  report by no later than July 31 of each year to the [department] office regarding the economic
                  activity that has occurred in the zone following the designation.
                      (2) [In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  department may make rules providing for] The office shall prescribe the form[,] and content[,
                  and submittal] of the annual reports.
                      Section 96. Section 63-38f-1112 , which is renumbered from Section 9-2-1612 is
                  renumbered and amended to read:
                       [9-2-1612].     63-38f-1112. Centers of excellence.
                      In accordance with Part 6, the [department] office may award grants to the Centers of
                  Excellence, as defined by Section [ 9-2-602 ] 63-38f-703 , to fund development of new technology
                  for recycling if the program funded is a cooperative effort between the Centers of Excellence and
                  one or more recycling market development zones created under this part.
                      Section 97. Section 63-38f-1201 , which is renumbered from Section 9-2-1901 is
                  renumbered and amended to read:
                 
Part 12. Utah Venture Capital Enhancement Act

                       [9-2-1901].     63-38f-1201. Title.


                      This part is known as the "Utah Venture Capital Enhancement Act."
                      Section 98. Section 63-38f-1202 , which is renumbered from Section 9-2-1902 is
                  renumbered and amended to read:
                       [9-2-1902].     63-38f-1202. Findings -- Purpose.
                      (1) The Legislature finds that:
                      (a) fundamental changes have occurred in national and international financial markets
                  and in the state's financial markets;
                      (b) a critical shortage of seed and venture capital resources exists in the state, and that
                  shortage is impairing the growth of commerce in the state;
                      (c) a need exists to increase the availability of venture equity capital for emerging,
                  expanding, and restructuring enterprises in Utah, including enterprises in the life sciences,
                  advanced manufacturing, and information technology;
                      (d) increased venture equity capital investments in emerging, expanding, and
                  restructuring enterprises in Utah will:
                      (i) create new jobs in the state; and
                      (ii) help to diversify the state's economic base; and
                      (e) a well-trained work force is critical for the maintenance and development of Utah's
                  economy.
                      (2) This part is enacted to:
                      (a) mobilize private investment in a broad variety of venture capital partnerships in
                  diversified industries and locales;
                      (b) retain the private-sector culture of focusing on rate of return in the investing process;
                      (c) secure the services of the best managers in the venture capital industry, regardless of
                  location;
                      (d) facilitate the organization of the Utah fund of funds to seek private investments and
                  to serve as a catalyst in those investments by offering state incentives for private persons to make
                  investments in the Utah fund of funds;
                      (e) enhance the venture capital culture and infrastructure in the state so as to increase


                  venture capital investment within the state and to promote venture capital investing within the
                  state; and
                      (f) accomplish the purposes referred to in Subsections (2)(a) through (e) in a manner that
                  would maximize the direct economic impact for the state.
                      Section 99. Section 63-38f-1203 , which is renumbered from Section 9-2-1903 is
                  renumbered and amended to read:
                       [9-2-1903].     63-38f-1203. Definitions.
                      As used in this part:
                      (1) "Board" means the Utah Capital Investment Board.
                      (2) "Certificate" means a contract between the board and a designated investor under
                  which a contingent tax credit is available and issued to the designated investor.
                      (3) "Commitment" means a written commitment by a designated purchaser to purchase
                  from the board certificates presented to the board for redemption by a designated investor. Each
                  commitment shall state the dollar amount of contingent tax credits that the designated purchaser
                  has committed to purchase from the board.
                      (4) "Contingent tax credit" means a contingent tax credit issued under this part that is
                  available against tax liabilities imposed by Title 59, Chapter 7, Corporate Franchise and Income
                  Taxes, and Chapter 10, Individual Income Tax Act, if there are insufficient funds in the
                  redemption reserve and the board has not exercised other options for redemption under
                  Subsection [ 9-2-1920 ] 63-38f-1220 (3)(b).
                      (5) "Corporation" means the Utah Capital Investment Corporation created under Section
                  [ 9-2-1907 ] 63-38f-1207 .
                      (6) "Designated investor" means:
                      (a) a person who purchases an equity interest in the Utah fund of funds; or
                      (b) a transferee of a certificate or contingent tax credit.
                      (7) "Designated purchaser" means:
                      (a) a person who enters into a written undertaking with the board to purchase a
                  commitment; or


                      (b) a transferee who assumes the obligations to make the purchase described in the
                  commitment.
                      (8) "Person" means an individual, partnership, limited liability company, corporation,
                  association, organization, business trust, estate, trust, or any other legal or commercial entity.
                      (9) "Redemption reserve" means the reserve established by the corporation to facilitate
                  the cash redemption of certificates.
                      (10) "Utah fund of funds" means a limited partnership or limited liability company
                  established under Section [ 9-2-1913 ] 63-38f-1213 in which a designated investor purchases an
                  equity interest.
                      Section 100. Section 63-38f-1204 , which is renumbered from Section 9-2-1904 is
                  renumbered and amended to read:
                       [9-2-1904].     63-38f-1204. Utah Capital Investment Board.
                      (1) There is created within the [department] office the Utah Capital Investment Board to
                  exercise the powers conferred by this part.
                      (2) The purpose of the board is to mobilize venture equity capital for investment in a
                  manner that will result in a significant potential to create jobs and to diversify and stabilize the
                  economy of the state.
                      (3) In the exercise of its powers and duties, the board is considered to be performing an
                  essential public purpose.
                      Section 101. Section 63-38f-1205 , which is renumbered from Section 9-2-1905 is
                  renumbered and amended to read:
                       [9-2-1905].     63-38f-1205. Board members -- Meetings -- Expenses.
                      (1) (a) The board shall consist of five members.
                      (b) Of the five members:
                      (i) one shall be the state treasurer;
                      (ii) one shall be the director or the director's designee; and
                      (iii) three shall be appointed by the governor and confirmed by the Senate.
                      (c) The three members appointed by the governor shall serve four-year staggered terms


                  with the initial terms of the first three members to be four years for one member, three years for
                  one member, and two years for one member.
                      (2) When a vacancy occurs in the membership of the board for any reason, the vacancy
                  shall be:
                      (a) filled in the same manner as the appointment of the original member; and
                      (b) for the unexpired term of the board member being replaced.
                      (3) Appointed members of the board may not serve more than two full consecutive terms
                  except where the governor determines that an additional term is in the best interest of the state.
                      (4) Three members of the board constitute a quorum for conducting business and
                  exercising board power, provided that a minimum of three affirmative votes is required for board
                  action and at least one of the affirmative votes is cast by either the director or the director's
                  designee or the state treasurer.
                      (5) (a) Members of the board may not receive compensation or benefits for their services,
                  but may receive per diem and expenses incurred in the performance of the members' official
                  duties at rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (b) Members of the board may decline to receive per diem and expenses for their
                  services.
                      (6) Members of the board shall be selected on the basis of demonstrated expertise and
                  competence in:
                      (a) the supervision of investment managers;
                      (b) the fiduciary management of investment funds; or
                      (c) the management and administration of tax credit allocation programs.
                      (7) The board and its members are considered to be a governmental entity with all of the
                  rights, privileges, and immunities of a governmental entity of the state, including all of the rights
                  and benefits conferred under Title 63, Chapter [30, Utah] 30d, Governmental Immunity Act of
                  Utah.
                      (8) Meetings of the board, except to the extent necessary to protect confidential
                  information with respect to investments in the Utah fund of funds, are subject to Title 52,


                  Chapter 4, Open and Public Meetings.
                      Section 102. Section 63-38f-1206 , which is renumbered from Section 9-2-1906 is
                  renumbered and amended to read:
                       [9-2-1906].     63-38f-1206. Board duties and powers.
                      (1) The board shall:
                      (a) establish criteria and procedures for the allocation and issuance of contingent tax
                  credits to designated investors by means of certificates issued by the board, provided that a
                  contingent tax credit may not be issued unless the Utah fund of funds:
                      (i) first agrees to treat the amount of the tax credit redeemed by the state as a loan from
                  the state to the Utah fund of funds; and
                      (ii) agrees to repay the loan upon terms and conditions established by the board;
                      (b) establish criteria and procedures for assessing the likelihood of future certificate
                  redemptions by designated investors, including:
                      (i) criteria and procedures for evaluating the value of investments made by the Utah fund
                  of funds; and
                      (ii) the returns from the Utah fund of funds;
                      (c) establish criteria and procedures for registering and redeeming contingent tax credits
                  by designated investors holding certificates issued by the board;
                      (d) establish a target rate of return or range of returns on venture capital investments of
                  the Utah fund of funds;
                      (e) establish criteria and procedures governing commitments obtained by the board from
                  designated purchasers including:
                      (i) entering into commitments with designated purchasers; and
                      (ii) drawing on commitments to redeem certificates from designated investors; and
                      (f) have power to:
                      (i) expend funds;
                      (ii) invest funds;
                      (iii) enter into contracts;


                      (iv) insure against loss; and
                      (v) perform any other act necessary to carry out its purpose[; and].
                      [(g) (i) make, amend, and revoke rules for the conduct of its affairs, consistent with this
                  part and in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;]
                      [(ii) all rules made by the board under Subsection (1)(g)(i) are subject to review by the
                  Legislative Management Committee:]
                      [(A) whenever made, modified, or revoked; and]
                      [(B) in each even-numbered year; and]
                      [(iii) Subsection (1)(g)(ii) does not preclude the Legislature's Administrative Rules
                  Review Committee from reviewing and taking appropriate action on any rule made, amended, or
                  revoked by the board.]
                      (2) (a) The criteria and procedures established by the board for the allocation and
                  issuance of contingent tax credits shall:
                      (i) include the contingencies that must be met for a certificate and its related tax credits
                  to be:
                      (A) issued by the board;
                      (B) transferred by a designated investor; and
                      (C) redeemed by a designated investor in order to receive a contingent tax credit; and
                      (ii) tie the contingencies for redemption of certificates to the targeted rates of return and
                  scheduled redemptions of equity interests purchased by designated investors in the Utah fund of
                  funds.
                      (b) The board may not issue contingent tax credits under this part prior to July 1, 2004.
                      (3) (a) The board may charge a placement fee to the Utah fund of funds for the issuance
                  of a certificate and related contingent tax credit to a designated investor.
                      (b) The fee shall:
                      (i) be charged only to pay for reasonable and necessary costs of the board; and
                      (ii) not exceed .5% of the equity investment of the designated investor.
                      (4) The board's criteria and procedures for redeeming certificates:


                      (a) shall give priority to the redemption amount from the available funds in the
                  redemption reserve; and
                      (b) to the extent there are insufficient funds in the redemption reserve to redeem
                  certificates, shall grant the board the option to redeem certificates:
                      (i) by certifying a contingent tax credit to the designated investor; or
                      (ii) by making demand on designated purchasers consistent with the requirements of
                  Section [ 9-2-1921 ] 63-38f-1221 .
                      (5) (a) The board shall, in consultation with the corporation, publish an annual report of
                  the activities conducted by the Utah fund of funds, and present the report to the governor and the
                  Executive Appropriations Committee of the Legislature.
                      (b) The annual report shall:
                      (i) include a copy of the audit of the Utah fund of funds and a valuation of the assets of
                  the Utah fund of funds;
                      (ii) review the progress of the investment fund allocation manager in implementing its
                  investment plan; and
                      (iii) describe any redemption or transfer of a certificate issued under this part.
                      (c) The annual report may not identify any specific designated investor who has
                  redeemed or transferred a certificate.
                      (d) (i) Beginning July 1, [2005] 2006, and thereafter every two years, the board shall
                  publish a progress report which shall evaluate the progress of the state in accomplishing the
                  purposes stated in Section [ 9-2-1902 ] 63-38f-1202 .
                      (ii) The board shall give a copy of the report to the Legislature.
                      Section 103. Section 63-38f-1207 , which is renumbered from Section 9-2-1907 is
                  renumbered and amended to read:
                       [9-2-1907].     63-38f-1207. Utah Capital Investment Corporation -- Powers and
                  purposes.
                      (1) (a) There is created an independent quasi-public nonprofit corporation known as the
                  Utah Capital Investment Corporation.


                      (b) The corporation:
                      (i) may exercise all powers conferred on independent corporations under Section
                  63E-2-106 ;
                      (ii) is subject to the prohibited participation provisions of Section 63E-2-107 ; and
                      (iii) is subject to the other provisions of Title 63E, Chapter 2, Independent Corporations
                  Act, except as otherwise provided in this part.
                      (c) The corporation shall file with the Division of Corporations and Commercial Code:
                      (i) articles of incorporation; and
                      (ii) any amendment to its articles of incorporation.
                      (d) In addition to the articles of incorporation, the corporation may adopt bylaws and
                  operational policies that are consistent with this chapter.
                      (e) Except as otherwise provided in this part, this part does not exempt the corporation
                  from the requirements under state law which apply to other corporations organized under Title
                  63E, Chapter 2, Independent Corporations Act.
                      (2) The purposes of the corporation are to:
                      (a) organize the Utah fund of funds;
                      (b) select a venture capital investment fund allocation manager to make venture capital
                  fund investments by the Utah fund of funds;
                      (c) negotiate the terms of a contract with the venture capital investment fund allocation
                  manager;
                      (d) execute the contract with the selected venture capital investment fund manager on
                  behalf of the Utah fund of funds;
                      (e) receive funds paid by designated investors for the issuance of certificates by the board
                  for investment in the Utah fund of funds;
                      (f) receive investment returns from the Utah fund of funds; and
                      (g) establish the redemption reserve to be used by the corporation to redeem certificates.
                      (3) The corporation may not:
                      (a) exercise governmental functions;


                      (b) have members;
                      (c) pledge the credit or taxing power of the state or any political subdivision of the state;
                  or
                      (d) make its debts payable out of any moneys except those of the corporation.
                      (4) The obligations of the corporation are not obligations of the state or any political
                  subdivision of the state within the meaning of any constitutional or statutory debt limitations, but
                  are obligations of the corporation payable solely and only from the corporation's funds.
                      (5) The corporation may:
                      (a) engage consultants and legal counsel;
                      (b) expend funds;
                      (c) invest funds;
                      (d) enter into contracts;
                      (e) insure against loss;
                      (f) hire employees; and
                      (g) perform any other act necessary to carry out its purposes.
                      Section 104. Section 63-38f-1208 , which is renumbered from Section 9-2-1908 is
                  renumbered and amended to read:
                       [9-2-1908].     63-38f-1208. Incorporator -- Appointment committee.
                      (1) To facilitate the organization of the corporation, the director or the director's designee
                  shall serve as the incorporator as provided in Section 16-6a-201 .
                      (2) To assist in the organization of the corporation, the Utah Board of Business and
                  Economic Development shall appoint three individuals to serve on an appointment committee.
                      (3) The appointment committee shall:
                      (a) elect the initial board of directors of the corporation;
                      (b) exercise due care to assure that persons elected to the initial board of directors have
                  the requisite financial experience necessary in order to carry out the duties of the corporation as
                  established in this part, including in areas related to:
                      (i) venture capital investment;


                      (ii) investment management; and
                      (iii) supervision of investment managers and investment funds; and
                      (c) terminate its existence upon the election of the initial board of directors of the
                  corporation.
                      (4) The [division] office shall assist the incorporator and the appointment committee in
                  any manner determined necessary and appropriate by the incorporator and appointment
                  committee in order to administer this section.
                      Section 105. Section 63-38f-1209 , which is renumbered from Section 9-2-1909 is
                  renumbered and amended to read:
                       [9-2-1909].     63-38f-1209. Board of directors.
                      (1) The initial board of directors of the corporation shall consist of five members.
                      (2) The persons elected to the initial board of directors by the appointment committee
                  shall include persons who have an expertise, as considered appropriate by the appointment
                  committee, in the areas of:
                      (a) the selection and supervision of investment managers;
                      (b) fiduciary management of investment funds; and
                      (c) other areas of expertise as considered appropriate by the appointment committee.
                      (3) After the election of the initial board of directors, vacancies in the board of directors
                  of the corporation shall be filled by election by the remaining directors of the corporation.
                      (4) (a) Board members shall serve four-year terms, except that of the five initial
                  members:
                      (i) two shall serve four-year terms;
                      (ii) two shall serve three-year terms; and
                      (iii) one shall serve a two-year term.
                      (b) Board members shall serve until their successors are elected and qualified and may
                  serve successive terms.
                      (c) A majority of the board members may remove a board member for cause.
                      (d) (i) The board shall select a chair by majority vote.


                      (ii) The chair's term is for one year.
                      (5) Three members of the board are a quorum for the transaction of business.
                      (6) Members of the board of directors:
                      (a) are subject to any restrictions on conflicts of interest specified in the organizational
                  documents of the corporation; and
                      (b) may have no interest in any:
                      (i) venture capital investment fund allocation manager selected by the corporation under
                  this part; or
                      (ii) investments made by the Utah fund of funds.
                      (7) Directors of the corporation:
                      (a) shall be compensated for direct expenses and mileage; and
                      (b) may not receive a director's fee or salary for service as directors.
                      Section 106. Section 63-38f-1210 , which is renumbered from Section 9-2-1910 is
                  renumbered and amended to read:
                       [9-2-1910].     63-38f-1210. Investment manager.
                      (1) After incorporation, the corporation shall conduct a national solicitation for
                  investment plan proposals from qualified venture capital investment fund allocation managers for
                  the raising and investing of capital by the Utah fund of funds in accordance with the requirements
                  of this part.
                      (2) Any proposed investment plan shall address the applicant's:
                      (a) level of:
                      (i) experience; and
                      (ii) quality of management;
                      (b) investment philosophy and process;
                      (c) probability of success in fund-raising;
                      (d) prior investment fund results; and
                      (e) plan for achieving the purposes of this part.
                      (3) The selected venture capital investment fund allocation manager shall have


                  substantial, successful experience in the design, implementation, and management of seed and
                  venture capital investment programs and in capital formation.
                      (4) The corporation shall only select a venture capital investment fund allocation
                  manager:
                      (a) with demonstrated expertise in the management and fund allocation of investments in
                  venture capital funds; and
                      (b) considered best qualified to:
                      (i) invest the capital of the Utah fund of funds; and
                      (ii) generate the amount of capital required by this part.
                      Section 107. Section 63-38f-1211 , which is renumbered from Section 9-2-1911 is
                  renumbered and amended to read:
                       [9-2-1911].     63-38f-1211. Management fee -- Additional financial assistance.
                      (1) The corporation may charge a management fee on assets under management in the
                  Utah fund of funds.
                      (2) The fee shall:
                      (a) be in addition to any fee charged to the Utah fund of funds by the venture capital
                  investment fund allocation manager selected by the corporation; and
                      (b) be charged only to pay for reasonable and necessary costs of the corporation.
                      (3) The corporation may apply for and, when qualified, receive financial assistance from
                  the Industrial Assistance Fund under Title 9, Chapter 2, Part 12, Industrial Assistance Fund, [and
                  under rules made by the Board of Business and Economic Development in accordance with Title
                  63, Chapter 46a, Utah Administrative Rulemaking Act,] to help establish the program authorized
                  under this part.
                      Section 108. Section 63-38f-1212 , which is renumbered from Section 9-2-1912 is
                  renumbered and amended to read:
                       [9-2-1912].     63-38f-1212. Dissolution.
                      (1) Upon the dissolution of the Utah fund of funds, the corporation shall be liquidated
                  and dissolved.


                      (2) Upon dissolution or privatization of the corporation, any assets owned by the
                  corporation shall be distributed to one or more Utah nonprofit tax exempt organizations to be
                  designated by the Legislature for the purposes listed in Section [ 9-2-1902 ] 63-38f-1202 as
                  provided in Title 63E, Chapter 1, Independent Entities Act.
                      Section 109. Section 63-38f-1213 , which is renumbered from Section 9-2-1913 is
                  renumbered and amended to read:
                       [9-2-1913].     63-38f-1213. Organization of Utah fund of funds.
                      (1) The corporation shall organize the Utah fund of funds.
                      (2) The Utah fund of funds shall make investments in private seed and venture capital
                  partnerships or entities in a manner and for the following purposes:
                      (a) to encourage the availability of a wide variety of venture capital in the state;
                      (b) to strengthen the economy of the state;
                      (c) to help business in the state gain access to sources of capital;
                      (d) to help build a significant, permanent source of capital available to serve the needs of
                  businesses in the state; and
                      (e) to accomplish all these benefits in a way that minimizes the use of contingent tax
                  credits.
                      (3) The Utah fund of funds shall be organized:
                      (a) as a limited partnership or limited liability company under Utah law having the
                  corporation as the general partner or manager; and
                      (b) to provide for equity interests for designated investors which provide for a designated
                  scheduled rate of return and a scheduled redemption in accordance with rules made by the board
                  pursuant to Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
                      (4) Public money may not be invested in the Utah fund of funds.
                      Section 110. Section 63-38f-1214 , which is renumbered from Section 9-2-1914 is
                  renumbered and amended to read:
                       [9-2-1914].     63-38f-1214. Compensation from the Utah fund of funds to the
                  corporation -- Redemption reserve.


                      (1) The corporation shall be compensated for its involvement in the Utah fund of funds
                  through the payment of the management fee described in Section [ 9-2-1911 ] 63-38f-1211 .
                      (2) (a) Any returns in excess of those payable to designated investors shall be deposited
                  in the redemption reserve and held by the corporation as a first priority reserve for the
                  redemption of certificates.
                      (b) Any returns received by the corporation from investment of amounts held in the
                  redemption reserve shall be added to the redemption reserve until it has reached a total of
                  $100,000,000.
                      (c) If at the end of any calendar year the redemption reserve exceeds the $100,000,000
                  limitation referred to in Subsection (2)(b), the excess shall be reinvested in the Utah fund of
                  funds.
                      (3) Funds held by the corporation in the redemption reserve shall be invested in
                  accordance with Title 51, Chapter 7, State Money Management Act.
                      Section 111. Section 63-38f-1215 , which is renumbered from Section 9-2-1915 is
                  renumbered and amended to read:
                       [9-2-1915].     63-38f-1215. Investments by Utah fund of funds.
                      (1) The Utah fund of funds shall invest funds:
                      (a) principally in high-quality venture capital funds managed by investment managers
                  who have:
                      (i) made a commitment to equity investments in businesses located within the state; and
                      (ii) have committed to maintain a physical presence within the state;
                      (b) in private venture capital funds and not in direct investments in individual businesses;
                  and
                      (c) in venture capital funds with experienced managers or management teams with
                  demonstrated expertise and a successful history in the investment of venture capital funds.
                      (2) (a) The Utah fund of funds shall give priority to investments in private seed and
                  venture capital partnerships and entities that have demonstrated a commitment to the state as
                  evidenced by:


                      (i) the investments they have made in Utah-based entities;
                      (ii) the correspondent relationships they have established with Utah-based venture capital
                  funds; or
                      (iii) the commitment they have made to expand the reach of expertise within the state by
                  adding additional investment areas of expertise.
                      (b) The manager of the Utah fund of funds may waive the priorities under Subsection
                  (2)(a) only if necessary to achieve the targeted investment returns required to attract designated
                  investors.
                      (3) The Utah fund of funds may invest funds in a newly created venture capital fund only
                  if the managers or management team of the fund have the experience, expertise, and a successful
                  history in the investment of venture capital funds as described in Subsection (1)(c).
                      (4) (a) An investment or investments by the fund of funds in any venture capital fund
                  may comprise no more than 20% of the total committed capital in the venture capital fund.
                      (b) (i) No more than 50% of the funds invested by the fund of funds may be made with
                  venture capital entities with offices in the state established prior to July 1, 2002.
                      (ii) The restriction under Subsection (4)(b)(i) shall remain in place until three additional
                  venture capital entities open new offices in the state.
                      Section 112. Section 63-38f-1216 , which is renumbered from Section 9-2-1916 is
                  renumbered and amended to read:
                       [9-2-1916].     63-38f-1216. Powers of Utah fund of funds.
                      (1) The Utah fund of funds may:
                      (a) engage consultants and legal counsel;
                      (b) expend funds;
                      (c) invest funds;
                      (d) enter into contracts;
                      (e) insure against loss;
                      (f) hire employees;
                      (g) issue equity interests to designated investors that have purchased certificates from the


                  board; and
                      (h) perform any other act necessary to carry out its purposes.
                      (2) (a) The Utah fund of funds shall engage a venture capital investment fund allocation
                  manager.
                      (b) The compensation paid to the fund manager shall be in addition to the management
                  fee paid to the corporation under Section [ 9-2-1911 ] 63-38f-1211 .
                      (3) The Utah fund of funds may:
                      (a) issue debt and borrow the funds needed to accomplish its goals;
                      (b) not secure its debt with contingent tax credits issued by the board;
                      (c) open and manage bank and short-term investment accounts as considered necessary
                  by the venture capital investment fund allocation manager; and
                      (d) expend moneys to secure investment ratings for investments by designated investors
                  in the Utah fund of funds.
                      Section 113. Section 63-38f-1217 , which is renumbered from Section 9-2-1917 is
                  renumbered and amended to read:
                       [9-2-1917].     63-38f-1217. Annual audits.
                      (1) Each calendar year, an audit of the activities of the Utah fund of funds shall be made
                  as described in this section.
                      (2) (a) The audit shall be conducted by:
                      (i) the state auditor; or
                      (ii) an independent auditor engaged by the state auditor.
                      (b) An independent auditor used under Subsection (2)(a)(ii) must have no business,
                  contractual, or other connection to:
                      (i) the corporation; or
                      (ii) the Utah fund of funds.
                      (3) The corporation shall pay the costs associated with the annual audit.
                      (4) The annual audit report shall:
                      (a) be delivered to:


                      (i) the corporation; and
                      (ii) the board; and
                      (b) include a valuation of the assets owned by the Utah fund of funds as of the end of the
                  reporting year.
                      Section 114. Section 63-38f-1218 , which is renumbered from Section 9-2-1918 is
                  renumbered and amended to read:
                       [9-2-1918].     63-38f-1218. Certificates and contingent tax credits.
                      (1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  board, in consultation with the State Tax Commission, shall make rules governing the form,
                  issuance, and redemption of certificates.
                      (2) The board's issuance of certificates and related contingent tax credits to designated
                  investors shall be subject to the following:
                      (a) the aggregate outstanding certificates may not exceed a total of $100,000,000 of
                  contingent tax credits;
                      (b) the certificates shall be issued contemporaneously with an investment in the Utah
                  fund of funds by a designated investor;
                      (c) contingent tax credits shall be issued in a manner that not more than $20,000,000 of
                  contingent tax credits may be initially redeemable in any fiscal year; and
                      (d) the credits are certifiable if there are insufficient funds in the redemption reserve to
                  make a cash redemption and the board does not exercise its other options under Subsection
                  [ 9-2-1920 ] 63-38f-1220 (3)(b).
                      (3) In determining the $100,000,000 maximum limit in Subsection (2)(a) and the
                  $20,000,000 limitation in Subsection (2)(c):
                      (a) the board shall use the cumulative amount of scheduled aggregate returns on
                  certificates issued by the board to designated investors;
                      (b) certificates and related contingent tax credits which have expired may not be
                  included; and
                      (c) certificates and related contingent tax credits which have been redeemed shall be


                  included only to the extent of tax credits actually allowed.
                      (4) Contingent tax credits are subject to the following:
                      (a) a contingent tax credit may not be redeemed except by a designated investor in
                  accordance with the terms of a certificate from the board;
                      (b) a contingent tax credit may not be redeemed prior to the time the Utah fund of funds
                  receives full payment from the designated investor for the certificate;
                      (c) a contingent tax credit shall be claimed for a tax year that begins during the calendar
                  year maturity date stated on the certificate;
                      (d) an investor who redeems a certificate and the related contingent tax credit shall
                  allocate the amount of the contingent tax credit to the taxpayers of the investor based on the
                  taxpayer's pro rata share of the investor's earnings; and
                      (e) any contingent tax credit in excess of the taxpayer's tax liability for the tax year may
                  be credited to the tax liability until the earlier of:
                      (i) the depletion of the contingent tax credit; or
                      (ii) a period not to exceed seven years.
                      (5) In calculating the amount of a contingent tax credit:
                      (a) a contingent tax credit shall be certified by the board only if the actual return to the
                  designated investor is less than the return that was targeted at the issuance of the certificate;
                      (b) the amount of the contingent tax credit may not exceed the difference between:
                      (i) the sum of:
                      (A) the initial equity investment of the designated investor in the Utah fund of funds; and
                      (B) the scheduled aggregate return to the designated investor at rates of return authorized
                  by the board at the issuance of the certificate; and
                      (ii) the aggregate actual return received by the designated investor and any predecessor in
                  interest of the initial equity investment and interest on the initial equity investment; and
                      (c) the rates, whether fixed rates or variable rates, shall be determined by a formula
                  stipulated in the certificate.
                      (6) The board shall clearly indicate on the certificate:


                      (a) the targeted return on the invested capital;
                      (b) the amount of the initial equity investment;
                      (c) the calculation formula for determining the scheduled aggregate return on the initial
                  equity investment; and
                      (d) the calculation formula for determining the amount of the contingent tax credit that
                  may be claimed.
                      (7) Once moneys are invested by a designated investor, the certificate:
                      (a) shall be binding on the board; and
                      (b) may not be modified, terminated, or rescinded.
                      (8) Funds invested by a designated investor for a certificate shall be paid to the
                  corporation for placement in the Utah fund of funds.
                      (9) The State Tax Commission may, in accordance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act, and in consultation with the board, make rules to help
                  implement this section.
                      Section 115. Section 63-38f-1219 , which is renumbered from Section 9-2-1919 is
                  renumbered and amended to read:
                       [9-2-1919].     63-38f-1219. Transfer and registration of certificates.
                      (1) A certificate and the related contingent tax credit may be transferred by the
                  designated investor.
                      (2) The board, in conjunction with the State Tax Commission, shall develop:
                      (a) a system for registration of any certificate and related contingent tax credit issued or
                  transferred under this part; and
                      (b) a system that permits verification that:
                      (i) any contingent tax credit claimed upon a tax return is valid; and
                      (ii) any transfers of the certificate and related contingent tax credit are made in
                  accordance with the requirements of this part.
                      (3) A certificate or contingent tax credit issued or transferred under this part may not be
                  considered a security under Title 61, Chapter 1, Utah Uniform Securities Act.


                      Section 116. Section 63-38f-1220 , which is renumbered from Section 9-2-1920 is
                  renumbered and amended to read:
                       [9-2-1920].     63-38f-1220. Redemption of certificates.
                      (1) If a designated investor elects to redeem a certificate, the certificate shall be presented
                  to the board for redemption no later than June 30 of the calendar year maturity date stated on the
                  certificate.
                      (2) Upon presentment to the board, it shall determine and certify the amount of the
                  contingent tax credit that may be claimed by the designated investor based on:
                      (a) the limitations in Section [ 9-2-1918 ] 63-38f-1218 ; and
                      (b) rules made by the board in accordance with Title 63, Chapter 46a, Utah
                  Administrative Rulemaking Act.
                      (3) (a) If there are sufficient funds in the redemption reserve, the board shall direct the
                  corporation to make a cash redemption of the certificate.
                      (b) If there are insufficient funds in the redemption reserve, the board may elect to
                  redeem the certificate:
                      (i) by certifying a contingent tax credit to the designated investor; or
                      (ii) by making demand on designated purchasers to purchase certificates in accordance
                  with Section [ 9-2-1921 ] 63-38f-1221 .
                      (4) The board shall certify to the State Tax Commission the contingent tax credit which
                  can be claimed by the designated investor with respect to the redemption of the certificate.
                      Section 117. Section 63-38f-1221 , which is renumbered from Section 9-2-1921 is
                  renumbered and amended to read:
                       [9-2-1921].     63-38f-1221. Use of commitments to redeem certificates.
                      (1) The board may elect to draw on a commitment to redeem a certificate from a
                  designated investor.
                      (2) If the board makes an election under Subsection (1), it shall:
                      (a) inform the designated purchaser of the amount of the contingent tax credit that must
                  be purchased from the board;


                      (b) specify the date on which the purchase must be consummated; and
                      (c) use the funds delivered to the board by the designated purchaser to redeem the
                  certificate from the designated investor.
                      (3) The board has discretion in determining which commitment or commitments and
                  what portion of those commitments to use to redeem certificates.
                      (4) The contingent tax credits acquired by a designated purchaser under this section are
                  subject to Section [ 9-2-1918 ] 63-38f-1218 .
                      Section 118. Section 63-38f-1222 , which is renumbered from Section 9-2-1922 is
                  renumbered and amended to read:
                       [9-2-1922].     63-38f-1222. Powers and effectiveness.
                      (1) This part may not be construed as a restriction or limitation upon any power which
                  the board might otherwise have under any other law of this state and the provisions of this part
                  are cumulative to those powers.
                      (2) This part shall be construed to provide a complete, additional, and alternative method
                  for performing the duties authorized and shall be regarded as supplemental and additional powers
                  to those conferred by any other laws.
                      (3) The provisions of any contract entered into by the board or the Utah fund of funds
                  may not be compromised, diminished, invalidated, or affected by the:
                      (a) level, timing, or degree of success of the Utah fund of funds or the investment funds
                  in which the Utah fund of funds invests; or
                      (b) extent to which the investment funds are:
                      (i) invested in Utah venture capital projects; or
                      (ii) successful in accomplishing any economic development objectives.
                      Section 119. Section 63-38f-1223 , which is renumbered from Section 9-2-1923 is
                  renumbered and amended to read:
                       [9-2-1923].     63-38f-1223. Permissible investments.
                      Investments by designated investors in the Utah fund of funds are permissible
                  investments under applicable laws of the state for:


                      (1) state-chartered banks;
                      (2) state-chartered savings and loan associations;
                      (3) state-chartered credit unions;
                      (4) state-chartered industrial banks; and
                      (5) domestic insurance companies.
                      Section 120. Section 63-38f-1224 , which is renumbered from Section 9-2-1924 is
                  renumbered and amended to read:
                       [9-2-1924].     63-38f-1224. Exemption from certain statutes.
                      (1) Except as otherwise provided in this part, the corporation is exempt from statutes
                  governing state agencies, as provided in Section 63E-2-109 .
                      (2) The corporation shall be subject to:
                      (a) Title 52, Chapter 4, Open and Public Meetings [Act]; and
                      (b) Title 63, Chapter 2, Government Records Access and Management Act.
                      Section 121. Section 63-38f-1301 , which is renumbered from Section 9-2-2001 is
                  renumbered and amended to read:
                 
Part 13. Aerospace and Aviation Zone

                       [9-2-2001].     63-38f-1301. Purpose.
                      (1) The Legislature finds that:
                      (a) the fostering and development of industry in Utah is a state public purpose necessary
                  to assure the welfare of its citizens, the growth of its economy, and adequate employment for its
                  citizens; and
                      (b) Utah loses prospective high paying jobs, economic impacts, and corresponding
                  incremental new state revenues to competing states due to a wide variety of competing economic
                  development incentives offered by those states.
                      (2) This part is enacted to address the loss of new economic growth in Utah and the
                  corresponding loss of incremental new state revenues by providing tax increment financial
                  incentives to attract new commercial projects in development zones located on or contiguous to
                  airports in the state.


                      Section 122. Section 63-38f-1302 , which is renumbered from Section 9-2-2002 is
                  renumbered and amended to read:
                       [9-2-2002].     63-38f-1302. Definitions.
                      As used in this part:
                      [(2)] (1) "Development zone" means the Aerospace and Aviation Development Zone
                  created under Section [ 9-2-2003 ] 63-38f-1303 .
                      [(3)] (2) "Indirect state revenues" means the imputed use of a generally accepted indirect
                  economic multiplier as defined by a fiscal impact model approved by the Governor's Office of
                  Planning and Budget to quantify by estimate the indirect state tax revenues that are in addition to
                  direct state tax revenues.
                      [(4)] (3) "New state revenues" means incremental new state tax revenues that are
                  generated as a result of new economic commercial projects in a development zone, to include the
                  state's portion of sales taxes, and company and employee income taxes derived from the projects,
                  together with indirect state revenues generated by the projects, but not to include any portion of
                  sales taxes earmarked for local governments or other taxing jurisdictions eligible for sales tax
                  revenues.
                      [(1)] (4) ["Department"] "Office" means the [Department of Community and] Governor's
                  Office of Economic Development acting through its [executive] director.
                      (5) "Partial rebates" means returning a portion of the new state revenues generated by
                  new commercial projects to companies or individuals that have created new economic growth
                  within a development zone.
                      Section 123. Section 63-38f-1303 , which is renumbered from Section 9-2-2003 is
                  renumbered and amended to read:
                       [9-2-2003].     63-38f-1303. Creation of development zones.
                      The [department] office, with [approval by] advice from the board, may create an
                  Aerospace and Aviation Development Zone at or around any airport in the state that satisfies the
                  following requirements:
                      (1) the airport shall have an instrumental landing system;


                      (2) the airport shall have a manned air traffic control tower;
                      (3) the airport shall have land available for commercial development on, or contiguous
                  to, the airport; and
                      (4) Subsections (1) and (2) sunset on January 1, 2006, unless the Legislature determines
                  otherwise.
                      Section 124. Section 63-38f-1304 , which is renumbered from Section 9-2-2004 is
                  renumbered and amended to read:
                       [9-2-2004].     63-38f-1304. Development incentives.
                      (1) The [department] office, with [the approval of] advice from the board, may enter into
                  agreements providing for partial rebates of new state revenues generated by new commercial
                  projects to companies or individuals that create new economic growth within the development
                  zone.
                      (2) In no event may the partial rebates be in excess of 50% of the new state revenues in
                  any given year.
                      (3) (a) The partial rebates may not exceed 30% of the new state revenues generated over
                  the life of a new commercial project.
                      (b) For purposes of this part, the life of a new commercial project is limited to 20 years.
                      [(4) Partial rebates are subject to any other limitations adopted by board rule made in
                  accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.]
                      Section 125. Section 63-38f-1305 , which is renumbered from Section 9-2-2005 is
                  renumbered and amended to read:
                       [9-2-2005].     63-38f-1305. Qualifications for credits and rebates.
                      The [board] office shall set standards to qualify for partial rebates under this part, subject
                  to the following:
                      (1) no partial rebates may be paid prior to verification, by the [department] office, of the
                  new state revenues upon which the tax rebate is based;
                      (2) partial rebates can only be paid on projects that are within the development zone;
                      (3) partial rebates can only be paid on projects that bring new, incremental jobs to the


                  state;
                      (4) qualifying projects must involve direct investment within the geographic boundaries
                  of the development zone;
                      (5) only aerospace and aviation industry projects[, as defined by board rule made in
                  accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,] are eligible for
                  partial rebates; and
                      (6) in order to claim payments representing partial rebates of new state revenues, a
                  person must:
                      (a) enter into [a board] an office-approved agreement with the [department] office and
                  affirm by contractual agreement to keep supporting records for at least four years after final
                  payment of partial rebates under this part;
                      (b) submit to audits for verification of the amounts claimed; and
                      (c) comply with other conditions as are required by the [department] office.
                      Section 126. Section 63-38f-1306 , which is renumbered from Section 9-2-2006 is
                  renumbered and amended to read:
                       [9-2-2006].     63-38f-1306. Payment procedure.
                      Any payment of partial rebates of new state revenues shall be made in accordance with
                  procedures adopted by the [department and approved by] office with the advice of the board, to
                  include the following:
                      (1) within 90 days of the end of each calendar year, any company or individual that has
                  entered into an agreement with the [department] office under this part shall provide the
                  [department] office with documentation of the new state revenues it claims to have generated
                  during that calendar year, the documentation to include the types of taxes and corresponding
                  amounts of taxes paid directly to the Utah State Tax Commission, and sales taxes paid to Utah
                  vendors and suppliers that are indirectly paid to the Utah State Tax Commission;
                      (2) the [department] office shall audit or review the documentation, make a
                  determination of the amount of partial rebates earned under the agreement, and forward [a board]
                  an office-approved request for payment of that amount to the Division of Finance, together with


                  information regarding the name and address of the payee and any other information reasonably
                  requested by the [division] office; and
                      (3) the Division of Finance shall pay a partial rebate from the Economic Incentive
                  Restricted Account created in Section [ 9-2-2009 ] 63-38f-1309 upon receipt of documentation
                  and the [board] office-approved request from the [department] office under Subsection (2).
                      Section 127. Section 63-38f-1307 , which is renumbered from Section 9-2-2007 is
                  renumbered and amended to read:
                       [9-2-2007].     63-38f-1307. Office's authority.
                      (1) The [department] office, with [approval] the advice of the board and within the
                  limitations of this part, may determine:
                      (a) the structure and amount of any partial rebates offered under this part;
                      (b) the economic impacts and job creation necessary to qualify for the incentive; and
                      (c) the other terms and conditions of any agreement entered into under this part.
                      (2) In reviewing claims for partial rebates of new state revenues, the [department] office
                  may accept:
                      (a) as the amount of employee income taxes paid, the amount of employee income taxes
                  withheld and transmitted to the Utah State Tax Commission as evidenced by payroll records
                  rather than adjusting for the difference between taxes withheld and taxes actually paid through
                  filing by employees' annual income tax statements; and
                      (b) as the amount of company income taxes paid, the amount of corporate franchise and
                  income taxes estimated and transmitted to the Utah State Tax Commission as evidenced by
                  quarterly payment records rather than adjusting for the difference between estimated taxes paid
                  quarterly and taxes actually paid through the filing of the corporation's annual income tax
                  statement.
                      [(3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
                  board may make, amend, and revoke rules regarding the development zone and partial rebates
                  offered within it, provided the rules are consistent with state and federal law.]
                      [(4) (a) The department shall make a report to the Legislature's Workforce and


                  Community and Economic Development Interim Committee on:]
                      [(i) the success of attracting new commercial projects to development zones under this
                  part and the corresponding increase in new, incremental jobs;]
                      [(ii) the period of time over which partial rebates of new state revenues shall be granted
                  under this part; and]
                      [(iii) the economic impact on the state related to generating new state revenues and
                  rebating a portion of those revenues under this part.]
                      [(b) The department shall make the reports prior to the 2005 General Session of the
                  Legislature to enable the committee to determine whether this part should be modified during the
                  2005 General Session.]
                      Section 128. Section 63-38f-1308 , which is renumbered from Section 9-2-2008 is
                  renumbered and amended to read:
                       [9-2-2008].     63-38f-1308. Coordination with Industrial Assistance Fund.
                      Projects that qualify for partial rebates of new state revenues under this part and enter into
                  agreements with the [department] office under this part are ineligible to qualify for additional
                  financial assistance from the Industrial Assistance Fund under Section [ 9-2-1204 ] 63-38f-904 .
                      Section 129. Section 63-38f-1309 , which is renumbered from Section 9-2-2009 is
                  renumbered and amended to read:
                       [9-2-2009].     63-38f-1309. Establishment of the Economic Incentive Restricted
                  Account.
                      (1) There is created a restricted account in the General Fund known as the Economic
                  Incentive Restricted Account.
                      (2) The account shall be used to make payments as required under Section [ 9-2-2006 ]
                  63-38f-1306 .
                      (3) (a) The Division of Finance shall transfer from the General Fund the amount
                  estimated by the [department] office from new state revenues needed to make the partial rebates
                  as allowed in Section [ 9-2-2006 ] 63-38f-1306 .
                      (b) The amount transferred into the account shall be reduced by any unencumbered


                  balances in the account.
                      (4) Not withstanding Subsections 51-5-3 (23)(b) and 63-38-9 (4)(c), after receiving a
                  request for payment, in accordance with Subsection [ 9-2-2006 ] 63-38f-1306 (2), the Division of
                  Finance shall pay the partial rebates as allowed in Section [ 9-2-2006 ] 63-38f-1306 , from the
                  account.
                      (5) (a) Prior to the beginning of each fiscal year, the [department] office shall notify the
                  Governor's Office of Planning and Budget, the Office of Legislative Fiscal Analyst, and the
                  Division of Finance of:
                      (i) the estimated amount of new state revenues created from economic growth in the
                  development zones, the estimate detailed by the amounts from:
                      (A) sales tax;
                      (B) income tax; and
                      (C) corporate franchise and income tax; and
                      (ii) the estimated amount partial rebates projected to be paid in the upcoming fiscal year,
                  the estimates detailed by the amounts from:
                      (A) sales tax;
                      (B) income tax; and
                      (C) corporate franchise and income tax.
                      (b) The [department] office shall update the estimates required by Subsections (5)(a)(i)
                  and (ii) within 30 days of the signing of each new agreement entered into under this part.
                      Section 130. Section 63-38f-1401 , which is renumbered from Section 9-2-1701 is
                  renumbered and amended to read:
                 
Part 14. Tourism Performance Marketing Fund

                       [9-2-1701].     63-38f-1401. Purpose.
                      The Legislature finds and declares that the development of travel and tourism in Utah is a
                  state public purpose necessary to assure the welfare of its citizens, the growth of its economy,
                  and adequate employment of its citizens.
                      Section 131. Section 63-38f-1402 , which is renumbered from Section 9-2-1702 is


                  renumbered and amended to read:
                       [9-2-1702].     63-38f-1402. Definitions.
                      As used in this part:
                      (1) ["Committee"] "Board" means the [Tourism Marketing Performance Fund
                  Committee as created in Section 9-2-1705 ] Board of Tourism Development created in Section
                  63-38f-1406 .
                      [(2) "Department" means the Department of Community and Economic Development.]
                      [(3) "Division" means the Division of Travel Development created in Section 9-3-204 .]
                      (2) "Director" means the director of the Governor's Office for Economic Development.
                      [(4)] (3) "Fund" means the restricted account known as the Tourism Marketing
                  Performance Fund created in Section [ 9-2-1703 ] 63-38f-1403 .
                      [(5)] (4) "Industry" means the following travel and tourism industry groups:
                      (a) retail/eating and drinking;
                      (b) services/hotels and lodging;
                      (c) services/automotive rental;
                      (d) services/amusement and recreation; and
                      (e) transportation.
                      (5) "Office" means the Governor's Office of Economic Development.
                      (6) "Tourism marketing" means an activity to develop, encourage, solicit, or promote
                  tourism within this state that attracts transient guests to the state, including:
                      (a) planning;
                      (b) product development; and
                      (c) advertising directed to out of state consumers that promotes leisure travel products or
                  attractions specific to Utah.
                      (7) "Tourism oriented sales and use taxes" means a state sales and use tax imposed under
                  Section 59-12-103 for amounts paid or charged for taxable items or services:
                      (a) described under Subsection 59-12-103 (1); and
                      (b) provided by a person described by the following SIC Codes of the 1987 Standard


                  Industrial Classification Manual of the federal Executive Office of the President, Office of
                  Management and Budget:
                      (i) SIC Codes 4011 through 4789;
                      (ii) SIC Codes 5812 and 5813;
                      (iii) SIC Codes 7011 through 7041;
                      (iv) SIC Codes 7513 through 7519; and
                      (v) SIC Codes 7812 through 7999.
                      [(8) "Utah Tourism Industry Coalition" means the private nonprofit corporation created
                  under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, composed of
                  tourism-related businesses, organizations, and associations authorized to nominate committee
                  members under Section 9-2-1705 .]
                      Section 132. Section 63-38f-1403 , which is renumbered from Section 9-2-1703 is
                  renumbered and amended to read:
                       [9-2-1703].     63-38f-1403. Creation and administration of fund.
                      (1) (a) There is created within the General Fund a restricted account known as the
                  "Tourism Marketing Performance Fund."
                      (b) The fund shall be administered by the [department] office in accordance with Section
                  [ 9-2-1704 ] 63-38f-1405 .
                      (2) The fund shall be funded by appropriations made to the fund by the Legislature in
                  accordance with Section [ 9-2-1703.5 ] 63-38f-1404 .
                      (3) Any undistributed monies in the fund at the end of the fiscal year are nonlapsing
                  [except that any balance greater than $200,000 at the end of the fiscal year shall lapse to the
                  General Fund].
                      Section 133. Section 63-38f-1404 , which is renumbered from Section 9-2-1703.5 is
                  renumbered and amended to read:
                       [9-2-1703.5].     63-38f-1404. Appropriations to the fund.
                      (1) The Legislature shall appropriate $200,000 to the fund each fiscal year for which the
                  State Tax Commission finds that the industry growth for the prior fiscal year equals or exceeds


                  4%[, except that:].
                      [(a) the growth factor requirement does not apply to the $2,000,000 appropriation to the
                  fund under Item 120 of S.B. 1, Appropriations Act, made for the fiscal year beginning July 1,
                  2002, only; and]
                      [(b) the growth factor requirement does not apply for the prior fiscal year beginning July
                  1, 2001, and ending June 30, 2002, only, but the appropriation may be for less than $200,000 for
                  the affected fiscal year only.]
                      (2) To determine the prior fiscal year industry growth the State Tax Commission shall:
                      (a) calculate the tourism-oriented sales and use taxes for the fiscal year two years
                  preceding the fiscal year of appropriation;
                      (b) calculate the tourism-oriented sales and use taxes for the fiscal year three years
                  preceding the fiscal year of the appropriation; and
                      (c) determine whether the tourism-oriented sales and use taxes calculated in Subsection
                  (2)(a) increased from the tourism-oriented sales and use taxes calculated under Subsection (2)(b).
                      (3) The State Tax Commission shall report its determination under Subsection (2) to the
                  Governor's Office of Planning and Budget by no later than September 30 of each year.
                      Section 134. Section 63-38f-1405 , which is renumbered from Section 9-2-1704 is
                  renumbered and amended to read:
                       [9-2-1704].     63-38f-1405. Distribution of fund monies -- Determination of
                  recipients.
                      The appropriation to the fund required by Section [ 9-2-1703.5 ] 63-38f-1404 shall be
                  distributed by the [department] office to the [division] program to be used to fund the tourism
                  marketing plan [developed in accordance with Section 9-2-1706 ].
                      Section 135. Section 63-38f-1406 , which is renumbered from Section 9-3-201 is
                  renumbered and amended to read:
                       [9-3-201].     63-38f-1406. Board of Tourism Development.
                      (1) There is created within the [department] office the Board of [Travel] Tourism
                  Development.


                      (2) The board shall advise the [division] office in the [division's] office's planning,
                  policies, and strategies and on trends and opportunities for [travel] tourism development that may
                  exist in the various areas of the state.
                      Section 136. Section 63-38f-1407 , which is renumbered from Section 9-3-202 is
                  renumbered and amended to read:
                       [9-3-202].     63-38f-1407. Members -- Meetings -- Expenses.
                      (1) (a) The board shall consist of nine members appointed by the governor to four-year
                  terms of office with the consent of the Senate.
                      (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the time
                  of appointment or reappointment, adjust the length of terms to ensure that the terms of board
                  members are staggered so that approximately half of the board is appointed every two years.
                      (2) The members may not serve more than two full consecutive terms unless the
                  governor determines that an additional term is in the best interest of the state.
                      (3) Not more than five members of the board may be of the same political party.
                      (4) (a) The members shall be representative of:
                      (i) all areas of the state with six being appointed from separate geographical areas as
                  provided in Subsection (4)(b); and
                      (ii) a diverse mix of the travel and tourism related industries.
                      (b) The geographical representatives shall be appointed as follows:
                      (i) one member from Salt Lake, Tooele, or Morgan County;
                      (ii) one member from Davis, Weber, Box Elder, Cache, or Rich County;
                      (iii) one member from Utah, Summit, Juab, or Wasatch County;
                      (iv) one member from Carbon, Emery, Grand, Duchesne, Daggett, or Uintah County;
                      (v) one member from San Juan, Piute, Wayne, Garfield, or Kane County; and
                      (vi) one member from Washington, Iron, Beaver, Sanpete, Sevier, or Millard County.
                      (c) The travel and tourism industry representatives shall be appointed from among active
                  participants in the ownership or management of travel and tourism related businesses.
                      (5) When a vacancy occurs in the membership for any reason, the replacement shall be


                  appointed for the unexpired term from the same geographic area or industry representation as the
                  member whose office was vacated.
                      (6) Five members of the board constitutes a quorum for conducting board business and
                  exercising board powers.
                      (7) The governor shall select one of the board members as chair and one of the board
                  members as vice chair, each for a two-year term.
                      (8) (a) Members shall receive no compensation or benefits for their services, but may
                  receive per diem and expenses incurred in the performance of the member's official duties at the
                  rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (b) Members may decline to receive per diem and expenses for their service.
                      (9) The board shall meet at least once each quarter at various locations throughout the
                  state.
                      (10) The board's office shall be in Salt Lake City.
                      Section 137. Section 63-38f-1408 , which is renumbered from Section 9-3-203 is
                  renumbered and amended to read:
                       [9-3-203].     63-38f-1408. Board duties.
                      (1) The board shall:
                      (a) review a program of information, advertising, and publicity relating to the
                  recreational, scenic, historic, highway, and tourist attractions of the state at large; and
                      (b) encourage and assist in the coordination of the activities of persons, firms,
                  associations, corporations, civic groups, and governmental agencies engaged in publicizing,
                  developing, and promoting the scenic attractions and tourist advantages of the state.
                      (2) The board may solicit and accept contributions of moneys, services, and facilities
                  from any other sources, public or private and shall use these funds for promoting the general
                  interest of the state in travel and tourism.
                      Section 138. Section 63-38f-1409 , which is renumbered from Section 9-3-204 is
                  renumbered and amended to read:
                       [9-3-204].     63-38f-1409. Powers and duties of office related to tourism


                  development plan -- Annual report and survey.
                      [(1) There is created within the department the Division of Travel Development under
                  the administration and general supervision of the director.]
                      [(2) The division shall be under the policy direction of the director.]
                      [(3)] (1) The [division] office shall:
                      (a) be the [travel] tourism development authority of the state;
                      (b) develop a [travel] tourism promotion program for the state;
                      (c) develop a plan to increase the economic contribution by tourists visiting the state;
                      (d) plan and conduct a program of information, advertising, and publicity relating to the
                  recreational, scenic, historic, highway, and tourist advantages and attractions of the state at large;
                  and
                      (e) encourage and assist in the coordination of the activities of persons, firms,
                  associations, corporations, travel regions, counties, and governmental agencies engaged in
                  publicizing, developing, and promoting the scenic attractions and tourist advantages of the state[;
                  and].
                      [(4)] (2) Any plan provided for under Subsection [(3)] (1) shall address, but not be
                  limited to, enhancing the state's image, promoting Utah as a year-round destination, encouraging
                  expenditures by visitors to the state, and expanding the markets where the state is promoted.
                      [(5)] (3) The [division] office is encouraged to:
                      (a) conduct surveys on tourism promotion activities undertaken by cities and counties
                  within the state; and
                      (b) in collaboration with the cities and counties surveyed, make an annual report to the
                  Legislature on the economic benefit of those activities to the state and the cities and counties
                  surveyed by the [division] office.
                      Section 139. Section 63-38f-1410 , which is renumbered from Section 9-3-206 is
                  renumbered and amended to read:
                       [9-3-206].     63-38f-1410. Agreements with other governmental entities.
                      The [department, through the division,] office may enter into agreements with [other]


                  state or federal agencies to accept services, quarters, or facilities as a contribution in carrying out
                  the duties and functions of the [department] office.
                      Section 140. Section 63-38f-1501 , which is renumbered from Section 9-8-901 is
                  renumbered and amended to read:
                 
Part 15. Utah Pioneer Communities Program

                       [9-8-901].     63-38f-1501. Title.
                      This part shall be known as the "Utah Pioneer Communities Program Act."
                      Section 141. Section 63-38f-1502 , which is renumbered from Section 9-8-902 is
                  renumbered and amended to read:
                       [9-8-902].     63-38f-1502. Definitions.
                      As used in this part:
                      (1) "Advisory board" means the Utah Pioneer Communities Program Advisory Board
                  created in Section [ 9-8-903 ] 63-38f-1503 within the [department] office.
                      (2) "Community" means a city, county, town, or any combination of these.
                      (3) "Revitalization" means the process of engaging in activities to increase economic
                  activity while preserving and building upon a location's historically significant characteristics.
                      Section 142. Section 63-38f-1503 , which is renumbered from Section 9-8-903 is
                  renumbered and amended to read:
                       [9-8-903].     63-38f-1503. Advisory board.
                      (1) (a) There is created within the [department] office the Utah Pioneer Communities
                  Advisory Board.
                      (b) The Permanent Community Impact Fund Board created in Section 9-4-304 shall act
                  as the advisory board.
                      (2) The advisory board shall have the powers and duties described in Section [ 9-8-904 ]
                  63-38f-1504 and shall operate the Utah Pioneer Communities Program in accordance with
                  Section [ 9-8-905 ] 63-38f-1505 .
                      (3) The [executive] director shall designate an employee of the [department] office to
                  serve as a nonvoting secretary for the advisory board.


                      (4) (a) (i) Members who are not government employees shall receive no compensation
                  or benefits for their services, but may receive per diem and expenses incurred in the performance
                  of the member's official duties at the rates established by the Division of Finance under Sections
                  63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the board at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) (i) Higher education members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties from the committee at the rates established by the Division of
                  Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) Higher education members may decline to receive per diem and expenses for their
                  service.
                      (d) (i) Local government members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties at the rates established by the Division of Finance under
                  Sections 63A-3-106 and 63A-3-107 .
                      (ii) Local government members may decline to receive per diem and expenses for their
                  service.
                      Section 143. Section 63-38f-1504 , which is renumbered from Section 9-8-904 is
                  renumbered and amended to read:
                       [9-8-904].     63-38f-1504. Advisory board duties.
                      (1) The advisory board shall:
                      (a) establish and administer a Utah Pioneer Communities Program to assist communities


                  in planning, managing, and implementing programs for the revitalization of business districts and
                  the preservation of their distinct history, heritage, and culture as a basis for promoting stable,
                  sustained economic growth through business expansion and tourism;
                      (b) select, upon application by the community, communities to participate in the Utah
                  Pioneer Communities Program;
                      (c) enter into contracts to obtain services related to community preservation and tourism
                  development;
                      (d) with help from interested communities, individuals, and organizations, develop a plan
                  describing the objectives of the Utah Pioneer Communities Program and the methods by which
                  the advisory board shall:
                      (i) coordinate the activities of that program with the private and public sector; and
                      (ii) solicit and use private sector funding to revitalize business districts and provide
                  services related to community preservation, tourism, and business development; and
                      (e) coordinate and consult with other state and local or public and private entities that
                  provide services to communities undertaking projects to provide services related to community
                  preservation, tourism, and business development.
                      (2) The advisory board shall provide training, technical assistance, and information on
                  services related to community preservation, tourism, and business development.
                      Section 144. Section 63-38f-1505 , which is renumbered from Section 9-8-905 is
                  renumbered and amended to read:
                       [9-8-905].     63-38f-1505. Criteria for participation -- Report.
                      (1) The advisory board shall develop objective criteria including the following:
                      (a) a three year commitment by the applicant to provide a project manager with a travel
                  and operating budget;
                      (b) evidence that both the business community and the local government support the
                  Utah Pioneer Communities Program approach philosophically and financially;
                      (c) capacity for economic change as a result of being a participant in the program;
                      (d) geographic location, population, and economic base diversity;


                      (e) evidence of past preservation efforts; and
                      (f) a population of less than 50,000.
                      (2) The advisory board shall provide to the governor and to the presiding officer of each
                  house of the Legislature an annual report on the effects of the Utah Pioneer Communities
                  Program.    
                      Section 145. Section 63-38f-1601 , which is renumbered from Section 9-16-101 is
                  renumbered and amended to read:
                 
Part 16. Rural Development Act

                       [9-16-101].     63-38f-1601. Title -- Definitions.
                      (1) This chapter is known as the "[Office of] Rural Development Act."
                      (2) As used in this chapter[,]:
                      (a) "Office" means the Governor's Office of [Rural] Economic Development.
                      (b) "Program" means the Rural Development Program.
                      Section 146. Section 63-38f-1602 , which is renumbered from Section 9-16-102 is
                  renumbered and amended to read:
                       [9-16-102].     63-38f-1602. Rural Development Program -- Supervision by office.
                      (1) There is created within the [department] office the [Office of] Rural Development
                  Program.
                      (2) The [office] program is under the administration and general supervision of the
                  [department] office.
                      Section 147. Section 63-38f-1603 , which is renumbered from Section 9-16-103 is
                  renumbered and amended to read:
                       [9-16-103].     63-38f-1603. Purpose of the program.
                      The [office shall] program is established to:
                      (1) foster and support economic development programs and activities for the benefit of
                  rural counties and communities;
                      (2) foster and support community, county, and resource management planning programs
                  and activities for the benefit of rural counties and communities;


                      (3) foster and support leadership training programs and activities for the benefit of:
                      (a) rural leaders in both the public and private sectors;
                      (b) economic development and planning personnel; and
                      (c) rural government officials;
                      (4) foster and support efforts to coordinate and focus the technical and other resources of
                  appropriate institutions of higher education, local governments, private sector interests,
                  associations, nonprofit organizations, federal agencies, and others, in ways that address the
                  economic development, planning, and leadership challenges and priorities of rural Utah as
                  identified in the strategic plan required under Subsection 63C-10-103 (2);
                      (5) work to enhance the capacity of the office to address rural economic development,
                  planning, and leadership training challenges and opportunities by establishing partnerships and
                  positive working relationships with appropriate public and private sector entities, individuals,
                  and institutions; and
                      (6) foster government-to-government collaboration and good working relations between
                  state and rural government regarding economic development and planning issues.
                      Section 148. Section 63-38f-1604 , which is renumbered from Section 9-16-104 is
                  renumbered and amended to read:
                       [9-16-104].     63-38f-1604. Duties.
                      (1) The [office] program shall:
                      (a) provide, in conjunction with the Rural Coordinating Committee, staff support to the
                  Governor's Rural Partnership board;
                      (b) facilitate within the department implementation of the strategic plan prepared under
                  Subsection 63C-10-103 (2);
                      (c) work to enhance the capacity of the office to address rural economic development,
                  planning, and leadership training challenges and opportunities by establishing partnerships and
                  positive working relationships with appropriate public and private sector entities, individuals,
                  and institutions;
                      (d) work with the Rural Coordinating Committee to coordinate and focus available


                  resources in ways that address the economic development, planning, and leadership training
                  challenges and priorities in rural Utah; and
                      (e) in accordance with economic development and planning policies set by state
                  government, coordinate relations between:
                      (i) the state;
                      (ii) rural governments;
                      (iii) other public and private groups engaged in rural economic planning and
                  development; and
                      (iv) federal agencies.
                      (2) (a) The [office] program may:
                      [(i) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
                  make rules necessary to carry out the duties of the office;]
                      [(ii)] (i) accept gifts, grants, devises, and property, in cash or in kind, for the benefit of
                  rural Utah citizens; and
                      [(iii)] (ii) use those gifts, grants, devises, and property received under Subsection
                  (2)(a)[(ii)](i) for the use and benefit of rural citizens within the state.
                      (b) All resources received under Subsection (2)(a)[(ii)] (i) shall be deposited in the
                  General Fund as dedicated credits to be used as directed in Subsection (2)(a)[(iii)] (ii).
                      (c) All funding for the benefit of rural Utah as defined in this section is nonlapsing.
                      Section 149. Section 63-38f-1605 , which is renumbered from Section 9-16-105 is
                  renumbered and amended to read:
                       [9-16-105].     63-38f-1605. Program manager.
                      (1) The [executive] director of the [department] office shall appoint [the director of the
                  office] a manager for the program with the approval of the governor.
                      (2) The [office director] manager shall be a person knowledgeable in the field of rural
                  economic development and planning and experienced in administration.
                      (3) Upon change of the [executive] director [of the department], the [office director]
                  manager of the program may not be dismissed without cause for at least 180 days.


                      (4) The [office director] manager shall be a member of the Rural Coordinating
                  Committee's Steering Committee created in Subsection 63C-10-202 (3).
                      Section 150. Section 63-38f-1606 , which is renumbered from Section 9-16-106 is
                  renumbered and amended to read:
                       [9-16-106].     63-38f-1606. Annual report.
                      The office shall submit an annual report of [its] the program's operations and
                  recommendations to:
                      [(1) the department;]
                      [(2)] (1) the governor; and
                      [(3)] (2) the Rural Development Legislative Liaison Committee created in Section
                  36-25-102 .
                      Section 151. Section 63-49a-1 is amended to read:
                       63-49a-1. Acquisition of easements -- Restrictions -- Resale.
                      (1) (a) The [Department of Community and] Governor's Office of Economic
                  Development shall acquire, by purchase or condemnation, easements for the establishment,
                  maintenance, and operation of a restrictive use area for the operation of aircraft to and from Hill
                  Air Force Base because:
                      (i) Hill Air Force Base is a military installation of vital importance to security of the
                  United States of America and to the economic well-being of the citizens of Utah;
                      (ii) there are certain portions of land around the entire base that are being developed for
                  residential and other uses that are incompatible with current and future operations of the base
                  because of noise, health, safety, and accident reasons; and
                      (iii) it is the purpose of this chapter for the state to acquire those easements restricting the
                  use of those lands and the air space above them in order to assure the continued operation of Hill
                  Air Force Base as an active military base and to protect the health, safety, and economic
                  well-being of the citizens of Utah.
                      (b) The [Department of Community and] Governor's Office of Economic Development
                  may delegate its power to purchase or condemn easements under this subsection to other state


                  agencies if the department ensures that those agencies comply with the procedures and
                  requirements of this chapter.
                      (2) (a) The [Department of Community and] Governor's Office of Economic
                  Development shall ensure that the easements restrict the land from those uses identified in the
                  Hill Air Force Base AICUZ Land Use Compatibility Guidelines Study, as amended, dated
                  October, 1982, as not being acceptable.
                      (b) The [Department of Community and] Governor's Office of Economic Development
                  may allow certain other uses not prohibited by those guidelines if those uses are consistent with
                  the purpose of this chapter.
                      (c) Nothing in this chapter may be construed to authorize the [Department of Community
                  and] Governor's Office of Economic Development or any other state agency to:
                      (i) acquire any ownership interest in real property other than an easement restricting the
                  land from future uses inconsistent with the Hill Air Force Base AICUZ Land Use Compatibility
                  Guidelines Study, as amended, dated October 1982;
                      (ii) purchase businesses; or
                      (iii) require people to relocate or move from their property.
                      (d) To calculate the purchase price for the easements, the [Department of Community
                  and] Governor's Office of Economic Development shall subtract the market value of the real
                  property and its improvements after the acquisition of the easements from the market value of the
                  real property and its improvements before the acquisition of the easements.
                      (e) When the Hill Air Force Base runways have not been used for seven years to
                  accommodate the arrival and departure of airplanes, the [Department of Community and]
                  Governor's Office of Economic Development shall:
                      (i) notify by certified mail each current owner of the property to which each easement is
                  attached;
                      (ii) inform that owner that the owner may purchase the easement from the state for the
                  same price that the state paid for it originally or for the market value of the easement at the time
                  of the buyback, whichever is smaller; and


                      (iii) sell the easement to the owner of the property to which the easement is attached if
                  the owner tenders the purchase price.
                      (f) In addition to purchasing the easements required by this chapter, the [Department of
                  Community and] Governor's Office of Economic Development may provide reasonable
                  relocation expenses to all churches, businesses, and schools that, as of March 1, 1994, were
                  located either within the north Hill Air Force Base accident potential zone (APZ) identified in
                  Subsection 63-49a-2 (1)(a) or within the south Hill Air Force Base accident potential zone (APZ)
                  identified in Subsection 63-49a-2 (1)(b) if those churches, businesses, and schools can reasonably
                  demonstrate that expansion of the use would have been permitted before acquisition of the
                  easements but is now prohibited because of the easement.
                      (3) (a) The [Department of Community and] Governor's Office of Economic
                  Development may take action to enforce the provisions of this chapter.
                      (b) The attorney general shall represent the [Department of Community and] Governor's
                  Office of Economic Development in that action.
                      Section 152. Section 63-49a-2 is amended to read:
                       63-49a-2. Location of easements.
                      (1) The [Department of Community and] Governor's Office of Economic Development
                  or its designees may acquire easements on the land within the following boundaries:
                      (a) beginning on the north Hill Air Force Base accident potential zone (APZ) at a point
                  which is North 1,089,743.170 meters and East 459,346.946 meters based on the North zone,
                  State of Utah, NAD 83 coordinates and runs north to North 63 degrees 10 minutes 44 seconds,
                  East 457.109 meters, North 26 degrees 49 minutes 16 seconds, West 3,352.129 meters, South 63
                  degrees 10 minutes 44 seconds, West 914.217 meters, South 26 degrees 49 minutes 16 seconds,
                  East 3,352.129 meters, North 63 degrees 10 minutes 44 seconds, East 457.109 meters back to the
                  point of beginning; and
                      (b) beginning on the south Hill Air Force Base APZ which is North 1,086,065.786
                  meters and East 461,206.222 meters based on the North zone, State of Utah, NAD 83 coordinates
                  and runs South 63 degrees 10 minutes 44 seconds, West 457.109 meters, South 26 degrees 49


                  minutes 16 seconds, East 502.179 meters, South 0 degrees 20 minutes 35 seconds, West
                  1,722.227 meters, South 89 degrees 39 minutes 25 seconds, East 883.743 meters, North 63
                  degrees 10 minutes 44 seconds, East 914.217 meters, North 26 degrees 49 minutes 16 seconds,
                  West 2,437.912 meters, South 63 degrees 10 minutes 44 seconds, West 457.109 meters back to
                  the point of beginning.
                      (2) The [Department of Community and] Governor's Office of Economic Development
                  or its designees may acquire easements on the following land that is located inside the 75 and 80
                  level day-night (LDN) noise contour as identified in the Hill Air Force Base AICUZ Land Use
                  Compatibility Guidelines Study, as amended, dated October, 1982:
                      (a) in the west half of Section 3, T4NR1W;
                      (b) in the east half of Section 4, T4NR1W;
                      (c) in the northeast quarter of Section 8, T4NR1W;
                      (d) within all of Section 9, T4NR1W;
                      (e) in the northwest quarter of Section 10, T4NR1W;
                      (f) within the southwest quarter of Section 19, T5NR1W;
                      (g) in the south half of Section 20, T5NR1W;
                      (h) within the southwest quarter of Section 28, T5NR1W; and
                      (i) within Section 29, T5NR1W.
                      Section 153. Section 63-49a-3 is amended to read:
                       63-49a-3. Certain improvements, alterations, and expansions prohibited.
                      (1) A person or entity may not begin to develop, or authorize development, on any land
                  identified in this chapter until [whichever of the following occurs first: (a) May 31, 1995; or (b)
                  the Department of Community and] the Governor's Office of Economic Development has
                  affirmatively authorized the development of the land because the development is consistent with
                  those uses identified in the Hill Air Force Base AICUZ Land Use Compatibility Guidelines
                  Study, as amended, dated October 1982.
                      (2) Nothing in this chapter prohibits any property owner from improving, altering, or
                  expanding any existing residential or commercial use of his property so long as the improvement,


                  alteration, or expansion does not materially increase the human density of that present use.
                      Section 154. Section 63-51-10 is amended to read:
                       63-51-10. Financial impact statement -- Alleviation plan -- Filing required --
                  Contents -- Payments credited against tax -- Provisions neither exclusive nor mandatory.
                      (1) (a) [Any] A developer desiring to prepay ad valorem property taxes under Section
                  63-51-3 shall first prepare and file with the [Department of Community and] Governor's Office
                  of Economic Development and all units of local government likely to be affected with a
                  significant financial impact due to a natural resource or industrial facility a financial impact
                  statement together with a plan for alleviating these impacts.
                      (b) The impact statement and the alleviation plan shall be prepared in cooperation with
                  and after consultation with the [Department of Community and] Governor's Office of Economic
                  Development and the affected units of local government.
                      (c) The financial impact statement shall assess the projected financial impact on state
                  agencies and units of local government, including[, but not limited to,] the impact on
                  transportation systems, culinary water systems, waste treatment facilities, public safety, schools,
                  public health, housing, planning and zoning, and general government administration.
                      (d) The alleviation plan shall set out proposals for alleviating the impact and may include
                  payments to local units of government or direct expenditures by the developer to alleviate the
                  impact.
                      (e) The impact statement and the alleviation plan may be amended by the developer in
                  cooperation with and after consultation with the [Department of Community and] Governor's
                  Office of Economic Development and those units of local government affected by the
                  amendment.
                      (2) At least 90 days prior to commencement of construction of an industrial facility or
                  natural resources facility by a major developer, an impact statement and alleviation plan as
                  described in Subsection (1) shall be filed by the major developer whether or not the major
                  developer desires to prepay ad valorem property taxes.
                      (3) (a) Upon the filing of the financial impact statement and alleviation plan, a developer


                  may apply to the governing body of the affected unit of local government for authorization to
                  prepay a portion of the anticipated ad valorem property taxes to be expended consistent with the
                  alleviation plan.
                      (b) This authorization may provide that only a portion of the amounts so prepaid can be
                  applied against the ad valorem property taxes due in any given year.
                      (c) In addition to payments directly to the affected unit of local government, an affected
                  unit of local government may authorize a tax credit on anticipated ad valorem property taxes for
                  expenditures made by the developer to other persons so long as the expenditure is consistent with
                  the alleviation plan.
                      (4) (a) This chapter is designed to provide an additional mechanism for the alleviation of
                  impacts on units of local government and is not intended to discourage the use of other
                  mechanisms as may be available. [Moreover, nothing]
                      (b) Nothing in this chapter [shall require] requires a developer to prepay ad valorem
                  property taxes or to make any other expenditure not otherwise required by law.
                      Section 155. Section 63A-9-801 is amended to read:
                       63A-9-801. State surplus property program -- Definitions -- Administration.
                      (1) As used in this section:
                      (a) "Agency" means:
                      (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
                  Control, Commerce, Community and [Economic Development] Culture, Corrections, Workforce
                  Services, Health, Human Resource Management, Human Services, Insurance, Natural Resources,
                  Public Safety, and Transportation and the Labor Commission;
                      (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
                  Victim Reparations, Rehabilitation, and Treasurer;
                      (iii) the Public Service Commission and State Tax Commission;
                      (iv) the State Boards of Education, Pardons and Parole, and Regents;
                      (v) the Career Service Review Board;
                      (vi) other state agencies designated by the governor;


                      (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
                      (viii) an institution of higher education, its president, and its board of trustees for
                  purposes of Section 63A-9-802 .
                      (b) "Division" means the Division of Fleet Operations.
                      (c) "Information technology equipment" means any equipment that is designed to
                  electronically manipulate, store, or transfer any form of data.
                      (d) "Inventory property" means property in the possession of the division that is available
                  for purchase by an agency or the public.
                      (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
                      (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
                  agency that the agency wishes to dispose of.
                      (ii) "Surplus property" does not mean real property.
                      (g) "Transfer" means transfer of surplus property without cash consideration.
                      (2) (a) The division shall make rules establishing a state surplus property program that
                  meets the requirements of this chapter by following the procedures and requirements of Title 63,
                  Chapter 46a, Utah Administrative Rulemaking Act.
                      (b) Those rules shall include:
                      (i) a requirement prohibiting the transfer of surplus property from one agency to another
                  agency without written approval from the division;
                      (ii) procedures and requirements governing division administration requirements that an
                  agency must follow;
                      (iii) requirements governing purchase priorities;
                      (iv) requirements governing accounting, reimbursement, and payment procedures;
                      (v) procedures for collecting bad debts;
                      (vi) requirements and procedures for disposing of firearms;
                      (vii) the elements of the rates or other charges assessed by the division for services and
                  handling;
                      (viii) procedures governing the timing and location of public sales of inventory property;


                  and
                      (ix) procedures governing the transfer of information technology equipment by state
                  agencies directly to public schools.
                      (c) The division shall report all transfers of information technology equipment by state
                  agencies to public schools to the Utah Technology Commission and to the Legislative Interim
                  Education Committee at the end of each fiscal year.
                      (3) In creating and administering the program, the division shall:
                      (a) when conditions, inventory, and demand permit:
                      (i) establish facilities to store inventory property at geographically dispersed locations
                  throughout the state; and
                      (ii) hold public sales of property at geographically dispersed locations throughout the
                  state;
                      (b) establish, after consultation with the agency requesting the sale of surplus property,
                  the price at which the surplus property shall be sold; and
                      (c) transfer proceeds arising from the sale of state surplus property to the agency
                  requesting the sale in accordance with Title 63, Chapter 38, Budgetary Procedures Act, less an
                  amount established by the division by rule to pay the costs of administering the surplus property
                  program.
                      (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
                  each state agency shall dispose of and acquire surplus property only by participating in the
                  division's program.
                      Section 156. Section 63B-5-201 is amended to read:
                       63B-5-201. Legislative intent statements.
                      (1) If the United [State] States Department of Defense has not provided matching funds
                  to construct the National Guard Armory in Orem by December 31, 1997, the Division of
                  Facilities Construction and Management shall transfer any funds received from issuance of a
                  General Obligation Bond for benefit of the Orem Armory to the Provo Armory for capital
                  improvements.


                      (2) It is the intent of the Legislature that the University of Utah use institutional funds to
                  plan, design, and construct:
                      (a) the Health Science East parking structure under the supervision of the director of the
                  Division of Facilities Construction and Management unless supervisory authority is delegated by
                  the director;
                      (b) the Health Science Office Building under the supervision of the director of the
                  Division of Facilities Construction and Management unless supervisory authority is delegated by
                  the director; and
                      (c) the new Student Housing/Olympic Athletes Village under the supervision of the
                  director of the Division of Facilities Construction and Management unless supervisory authority
                  is delegated by the director.
                      (3) It is the intent of the Legislature that Utah State University use institutional funds to
                  plan, design, and construct a multipurpose facility under the supervision of the director of the
                  Division of Facilities Construction and Management unless supervisory authority is delegated by
                  the director.
                      (4) It is the intent of the Legislature that the Utah Geologic Survey use agency internal
                  funding to plan, design, and construct a sample library facility under the supervision of the
                  director of the Division of Facilities Construction and Management unless supervisory authority
                  is delegated by the director.
                      (5) (a) If legislation introduced in the 1996 General Session to fund the Wasatch State
                  Park Club House does not pass, the State Building Ownership Authority, under authority of Title
                  [63] 63B, Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $1,500,000 for the remodel and expansion of the
                  clubhouse at Wasatch Mountain State Park for the Division of Parks and Recreation, together
                  with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and


                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the Division
                  of Parks and Recreation to seek out the most cost effective and prudent lease purchase plan
                  available.
                      (6) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $835,300 for the construction of a liquor store in the
                  Snyderville area, together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the
                  Department of Alcoholic Beverage Control to seek out the most cost effective and prudent lease
                  purchase plan available.
                      (7) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $15,000,000 for the construction of the Huntsman
                  Cancer Institute, together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the University
                  of Utah to seek out the most cost effective and prudent lease purchase plan available.
                      (c) It is the intent of the Legislature that the University of Utah lease land to the State
                  Building Ownership Authority for the construction of the Huntsman Cancer Institute facility.
                      (8) (a) The State Building Ownership Authority, under authority of Title [63] 63B,


                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $857,600 for the construction of an addition to the
                  Human Services facility in Vernal, Utah together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the
                  Department of Human Services to seek out the most cost effective and prudent lease purchase
                  plan available.
                      (9) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $3,470,200 for the construction of the Student Services
                  Center, at the College of Eastern Utah, together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the College of
                  Eastern Utah to seek out the most cost effective and prudent lease purchase plan available.
                      (10) (a) Notwithstanding anything to the contrary in Title 53B, Chapter 21, Revenue
                  Bonds, which prohibits the issuance of revenue bonds payable from legislative appropriations,
                  the State Board of Regents, on behalf of Dixie College, may issue, sell, and deliver revenue
                  bonds or other evidences of indebtedness of Dixie College to borrow money on the credit of the
                  income and revenues, including legislative appropriations, of Dixie College, to finance the
                  acquisition of the Dixie Center.
                      (b) (i) The bonds or other evidences of indebtedness authorized by this section shall be
                  issued in accordance with Title 53B, Chapter 21, Revenue Bonds, under terms and conditions


                  and in amounts that the board, by resolution, determines are reasonable and necessary and may
                  not exceed $6,000,000 together with additional amounts necessary to:
                      (A) pay cost of issuance;
                      (B) pay capitalized interest; and
                      (C) fund any debt service reserve requirements.
                      (ii) To the extent that future legislative appropriations will be required to provide for
                  payment of debt service in full, the board shall ensure that the revenue bonds are issued
                  containing a clause that provides for payment from future legislative appropriations that are
                  legally available for that purpose.
                      (11) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $10,479,000 for the construction of a facility for the
                  Courts - Davis County Regional Expansion, together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the Office of
                  the Court Administrator to seek out the most cost effective and prudent lease purchase plan
                  available.
                      (12) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $4,200,000 for the purchase and remodel of the
                  Washington County Courthouse, together with additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.


                      (b) The State Building Ownership Authority shall work cooperatively with the Office of
                  the Court Administrator to seek out the most cost effective and prudent lease purchase plan
                  available.
                      (13) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
                  Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
                  obligations, or enter into or arrange for a lease purchase agreement in which participation
                  interests may be created, to provide up to $14,299,700 for the construction of a facility for the
                  State Library and the Division of Services for the Blind and Visually Impaired, together with
                  additional amounts necessary to:
                      (i) pay costs of issuance;
                      (ii) pay capitalized interest; and
                      (iii) fund any debt service reserve requirements.
                      (b) The State Building Ownership Authority shall work cooperatively with the Office of
                  Education and the [Department of Community and] Governor's Office of Economic
                  Development to seek out the most cost effective and prudent lease purchase plan available.
                      Section 157. Section 63D-1a-203 is amended to read:
                       63D-1a-203. Utah Technology Industry Council.
                      (1) As used in this section:
                      (a) "Council" means the Utah Technology Industry Council created by this section.
                      (b) "Technology industry business in this state" means a business that has as a primary
                  function the research, development, production, or marketing of technologies in technology
                  sectors including:
                      (i) aerospace;
                      (ii) biotechnology or other technologies related to life sciences;
                      (iii) information technologies or other technologies related to information technologies;
                  or
                      (iv) other key technology industries sectors as the technology industries develop.
                      (2) (a) There is created a Utah Technology Industry Council to act as a body that


                  recommends policy to the commission.
                      (b) Subject to the requirements of this section, the council:
                      (i) shall be organized by the steering committee created under Subsection (3); and
                      (ii) operate in accordance with the charter that:
                      (A) is initially adopted by the steering committee in accordance with Subsection (4); and
                      (B) amended as provided in the charter.
                      (c) A member of the council shall receive no compensation or benefits for the member's
                  services including per diem or expenses incurred in the performance of the member's official
                  duties on the council.
                      (3) (a) The steering committee described in Subsection (2) shall consist of eight
                  members:
                      (i) the [executive] director of the [Department of Community and] Governor's Office of
                  Economic Development or the [executive] director's designee, provided that the designee is a
                  senior officer in the [department] office; and
                      (ii) seven members appointed as follows:
                      (A) the speaker of the House of Representatives shall appoint two members who are
                  present or former senior:
                      (I) officers of technology industry businesses in the state; or
                      (II) executive directors of technology industry associations in this state;
                      (B) the president of the Senate shall appoint two members who are present or former:
                      (I) senior officers of technology industry businesses in the state; or
                      (II) executive directors of technology industry associations in this state;
                      (C) the governor shall appoint two members who are present or former:
                      (I) senior officers in technology industry businesses in the state; or
                      (II) executive directors of technology industry associations in this state; and
                      (D) the chair of the steering committee shall appoint a representative of political
                  subdivisions of the state who is an elected official in any Utah municipality or county.
                      (b) (i) The members of the steering committee shall elect a chair of the steering


                  committee from the steering committee by a majority vote.
                      (ii) The chair of the steering committee shall act as chair of the council.
                      (c) (i) Except as required by Subsection (3)(c)(ii), a member of the steering committee
                  appointed under Subsection (3)(a)(ii) shall be appointed to a term of four years.
                      (ii) Notwithstanding the requirements of Subsection (3)(c)(i), at the time of initial
                  appointment of the steering committee, the members of the steering committee shall create a
                  random process to adjust the length of terms of the initial members of the steering committee to
                  ensure that the terms of members are staggered so that approximately half of the steering
                  committee is appointed every two years.
                      (d) The [Department of Community and] Governor's Office of Economic Development
                  shall provide staff to:
                      (i) the steering committee; and
                      (ii) the council.
                      (4) The steering committee appointed under Subsection (3) shall adopt a charter for the
                  council by no later than July 1, 2003 that specifies:
                      (a) the number, terms, and appointment of voting members of the council, except that the
                  voting members of the council shall be:
                      (i) present or former senior officers of technology industry businesses in the state;
                      (ii) present or former executive directors of technology associations in the state; or
                      (iii) representatives of:
                      (A) state or local government; or
                      (B) public or higher education;
                      (b) the number, terms, and appointment of nonvoting members of the council;
                      (c) the term of the chair of the council;
                      (d) the process to be followed in creating any subcommittees of the council;
                      (e) the quorum requirements for the council or for subcommittees of the council to take
                  action;
                      (f) the processes to be followed to call a meeting of the council or a subcommittee of the


                  council, except that:
                      (i) any meeting of the council or a subcommittee of the council is subject to Title 52,
                  Chapter 4, Open and Public Meetings;
                      (ii) members of the commission shall be provided notice of each meeting of the council
                  or of a subcommittee of the council; and
                      (iii) legislative members of the commission that attend a meeting of the council or a
                  subcommittee of the council:
                      (A) may not vote unless the legislator is a member of the council or the subcommittee;
                  and
                      (B) may receive a salary and expenses paid in accordance with Section 36-2-2 and
                  Legislative Joint Rule 15.03; and
                      (g) the process for amending the charter under which the council operates.
                      (5) The council may:
                      (a) conduct research or other studies to the extent that funding is available;
                      (b) review practices in the worldwide private and public sectors that could foster
                  technology business growth in the state;
                      (c) prepare an assessment of the current status of technology industries in the state
                  including:
                      (i) the needs of technology industries in the state; and
                      (ii) opportunities for future growth of technology industries in the state;
                      (d) develop a strategic plan as to:
                      (i) the future of technology industries in the state;
                      (ii) the future economic value technology industries can bring to the state; and
                      (iii) the future benefits technology industries can bring to the quality of life of the
                  citizens in the state;
                      (e) develop plans, including public and private sector initiatives, to meet any objectives
                  included in the strategic plan statement described in Subsection (5)(d), including proposals to
                  support the creation, retention, expansion, or attraction of technology industry businesses in the


                  state; and
                      (f) study other issues as directed by the commission related to economic development of
                  technology industries.
                      Section 158. Section 67-19-6.7 is amended to read:
                       67-19-6.7. Overtime policies for state employees.
                      (1) As used in this section:
                      (a) "Accrued overtime hours" means:
                      (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
                  of the fiscal year, have not been paid and have not been taken as time off by the nonexempt state
                  employee who accrued them; and
                      (ii) for exempt employees, overtime hours earned during an overtime year.
                      (b) "Agreement" means the agreement authorized by the FLSA by which a nonexempt
                  employee elects the form of compensation he will receive for overtime.
                      (c) "Appointed official" means:
                      (i) each department executive director and deputy director, each division director, and
                  each member of a board or commission; and
                      (ii) any other person employed by a department who is appointed by, or whose
                  appointment is required by law to be approved by, the governor and who:
                      (A) is paid a salary by the state [of Utah]; and
                      (B) who exercises managerial, policy-making, or advisory responsibility.
                      (d) "Department" means the Department of Administrative Services, the Department of
                  Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
                  Control, the Insurance Department, the Public Service Commission, the Labor Commission, the
                  Department of Agriculture and Food, the Department of Human Services, the State Board of
                  Education, the Department of Natural Resources, the Department of Transportation, the
                  Department of Commerce, the Department of Workforce Services, the State Tax Commission,
                  the Department of Community and [Economic Development] Culture, the Department of Health,
                  the National Guard, the Department of Environmental Quality, the Department of Public Safety,


                  the Department of Human Resource Management, the Commission on Criminal and Juvenile
                  Justice, all merit employees except attorneys in the Office of the Attorney General, merit
                  employees in the Office of the State Treasurer, and merit employees in the Office of the State
                  Auditor.
                      (e) "Elected official" means any person who is an employee of the state [of Utah]
                  because he was elected by the registered voters of Utah to a position in state government.
                      (f) "Exempt employee" means a state employee who is exempt as defined by the FLSA.
                      (g) "FLSA" means the Fair Labor Standards Act, 29 U.S.C. Section 201 et seq. (1978).
                      (h) "Human Resource Management" means the Department of Human Resource
                  Management.
                      (i) "Nonexempt employee" means a state employee who is nonexempt as defined by
                  Human Resource Management applying FLSA requirements.
                      (j) "Overtime" means actual time worked in excess of the employee's defined work
                  period.
                      (k) "Overtime year" means the year determined by a department under Subsection (4)(b)
                  at the end of which an exempt employee's accrued overtime lapses.
                      (l) (i) "State employee" means every person employed by a department who is not an
                  appointed official or an elected official.
                      (ii) "State employee" does not mean:
                      (A) certificated employees of the State Board of Education; and
                      (B) employees of the Department of Community and [Economic Development] Culture
                  or the Governor's Office of Economic Development, whose positions are designated as schedule
                  AM exempt employees under Section 67-19-15 .
                      (m) "Uniform annual date" means the date when an exempt employee's accrued overtime
                  lapses.
                      (n) "Work period" means:
                      (i) for all nonexempt employees, except law enforcement and hospital employees, a
                  consecutive seven day 24 hour work period of 40 hours;


                      (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
                      (iii) for nonexempt law enforcement and hospital employees, the period established by
                  each department by rule for those employees according to the requirements of the FLSA.
                      (2) Each department shall compensate each state employee who works overtime by
                  complying with the requirements of this section.
                      (3) (a) Each department shall negotiate and obtain a signed agreement from each
                  nonexempt employee.
                      (b) In the agreement, the nonexempt employee shall elect either to be compensated for
                  overtime by:
                      (i) taking time off work at the rate of one and one-half hour off for each overtime hour
                  worked; or
                      (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
                  hour that the state employee receives for nonovertime work.
                      (c) Any nonexempt employee who elects to take time off under this Subsection (3) shall
                  be paid for any overtime worked in excess of the cap established by Human Resource
                  Management.
                      (d) Before working any overtime, each nonexempt employee shall obtain authorization to
                  work overtime from the employee's immediate supervisor.
                      (e) Each department shall:
                      (i) for employees who elect to be compensated with time off for overtime, allow
                  overtime earned during a fiscal year to be accumulated; and
                      (ii) for employees who elect to be paid for overtime worked, pay them for overtime
                  worked in the paycheck for the pay period in which the employee worked the overtime.
                      (f) If the department pays a nonexempt employee for overtime, the department shall
                  charge that payment to the department's budget.
                      (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
                  overtime hours for nonexempt employees and charge that total against the appropriate fund or
                  subfund.


                      (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall compensate
                  exempt employees who work overtime by granting them time off at the rate of one hour off for
                  each hour of overtime worked.
                      (ii) The director of Human Resource Management may grant limited exceptions to this
                  requirement, where work circumstances dictate, by authorizing a department to pay employees
                  for overtime worked at the rate per hour that the employee receives for nonovertime work, if the
                  department has funds available.
                      (b) (i) Each department shall:
                      (A) establish in its written personnel policies a uniform annual date for each division that
                  is at the end of any pay period; and
                      (B) communicate the uniform annual date to its employees.
                      (ii) If any department fails to establish a uniform annual date as required by this
                  Subsection (4), the director of Human Resource Management, in conjunction with the director of
                  the Division of Finance, shall establish the date for that department.
                      (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
                  benefit, and is not a vested right.
                      (ii) A court may not construe the overtime for exempt employees authorized by this
                  Subsection (4) as an entitlement, a benefit, or as a vested right.
                      (d) At the end of the overtime year, upon transfer to another department at any time, and
                  upon termination, retirement, or other situations where the employee will not return to work
                  before the end of the overtime year:
                      (i) any of an exempt employee's overtime that is more than the maximum established by
                  Human Resource Management rule lapses; and
                      (ii) unless authorized by the director of Human Resource Management under Subsection
                  (4)(a)(ii), a department may not compensate the exempt employee for that lapsed overtime by
                  paying the employee for the overtime or by granting the employee time off for the lapsed
                  overtime.
                      (e) Before working any overtime, each exempt employee shall obtain authorization to


                  work overtime from their immediate supervisor.
                      (f) If the department pays an exempt employee for overtime under authorization from the
                  director of the Department of Human Resource Management, the department shall charge that
                  payment to the department's budget in the pay period earned.
                      (5) Human Resource Management shall:
                      (a) ensure that the provisions of the FLSA and this section are implemented throughout
                  state government;
                      (b) determine, for each state employee, whether that employee is exempt, nonexempt,
                  law enforcement, or has some other status under the FLSA;
                      (c) in coordination with modifications to the systems operated by the Division of
                  Finance, make rules:
                      (i) establishing procedures for recording overtime worked that comply with FLSA
                  requirements;
                      (ii) establishing requirements governing overtime worked while traveling and procedures
                  for recording that overtime that comply with FLSA requirements;
                      (iii) establishing requirements governing overtime worked if the employee is "on call"
                  and procedures for recording that overtime that comply with FLSA requirements;
                      (iv) establishing requirements governing overtime worked while an employee is being
                  trained and procedures for recording that overtime that comply with FLSA requirements;
                      (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
                  employee may accrue before a department is required to pay the employee for the overtime
                  worked;
                      (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
                  exempt employee that do not lapse; and
                      (vii) establishing procedures for adjudicating appeals of any FLSA determinations made
                  by Human Resource Management as required by this section;
                      (d) monitor departments for compliance with the FLSA; and
                      (e) recommend to the Legislature and the governor any statutory changes necessary


                  because of federal government action.
                      (6) In coordination with the procedures for recording overtime worked established in rule
                  by Human Resource Management, the Division of Finance shall modify its payroll and personnel
                  systems to accommodate those procedures.
                      (a) Notwithstanding the procedures and requirements of Title 63, Chapter 46b,
                  Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who is
                  aggrieved by the FLSA designation made by Human Resource Management as required by this
                  section may appeal that determination to the executive director of Human Resource Management
                  by following the procedures and requirements established in Human Resource Management rule.
                      (b) Upon receipt of an appeal under this section, the director shall notify the executive
                  director of the employee's department that the appeal has been filed.
                      (c) If the employee is aggrieved by the decision of the executive director of Human
                  Resource Management, he shall appeal that determination to the Department of Labor, Wage and
                  Hour Division, according to the procedures and requirements of federal law.
                      Section 159. Section 67-19-12 is amended to read:
                       67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
                  director.
                      (1) (a) This section, and the rules adopted by the department to implement this section,
                  apply to each career and noncareer state employee not specifically exempted under Subsection
                  (2).
                      (b) If not exempted under Subsection (2), a state employee is considered to be in
                  classified service.
                      (2) The following state employees are exempt from this section:
                      (a) members of the Legislature and legislative employees;
                      (b) members of the judiciary and judicial employees;
                      (c) elected members of the executive branch and their direct staff who meet career
                  service exempt criteria as defined in Subsection 67-19-15 (1)(k);
                      (d) certificated employees of the State Board of Education;


                      (e) officers, faculty, and other employees of state institutions of higher education;
                      (f) employees in any position that is determined by statute to be exempt from this
                  Subsection (2);
                      (g) attorneys in the Office of the Attorney General;
                      (h) department heads and other persons appointed by the governor pursuant to statute;
                      (i) employees of the Department of Community and [Economic Development] Culture
                  whose positions are designated as executive/professional positions by the executive director of
                  the Department of Community and [Economic Development] Culture with the concurrence of the
                  director; [and]
                      (j) employees of the Governor's Office of Economic Development whose positions are
                  designated as executive/professional positions by the director of the office; and
                      [(j)] (k) employees of the Medical Education Council.
                      (3) (a) The director shall prepare, maintain, and revise a position classification plan for
                  each employee position not exempted under Subsection (2) to provide equal pay for equal work.
                      (b) Classification of positions shall be based upon similarity of duties performed and
                  responsibilities assumed, so that the same job requirements and the same salary range may be
                  applied equitably to each position in the same class.
                      (c) The director shall allocate or reallocate the position of each employee in classified
                  service to one of the classes in the classification plan.
                      (d) (i) The department shall conduct periodic studies and desk audits to provide that the
                  classification plan remains reasonably current and reflects the duties and responsibilities assigned
                  to and performed by employees.
                      (ii) The director shall determine the schedule for studies and desk audits after
                  considering factors such as changes in duties and responsibilities of positions or agency
                  reorganizations.
                      (4) (a) With the approval of the governor, the director shall develop and adopt pay plans
                  for each position in classified service.
                      (b) The director shall design each pay plan to achieve, to the degree that funds permit,


                  comparability of state salary ranges to salary ranges used by private enterprise and other public
                  employment for similar work.
                      (c) The director shall adhere to the following in developing each pay plan:
                      (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
                  differential among the various classes of positions in the classification plan.
                      (ii) The director shall assign each class of positions in the classification plan to a salary
                  range and shall set the width of the salary range to reflect the normal growth and productivity
                  potential of employees in that class. The width of the ranges need not be uniform for all classes
                  of positions in the plan, but each range shall contain merit steps in increments of 2.75% salary
                  increases.
                      (iii) The director shall issue rules for the administration of pay plans. The rules may
                  provide for exceptional performance increases and for a program of incentive awards for
                  cost-saving suggestions and other commendable acts of employees. The director shall issue rules
                  providing for salary adjustments.
                      (iv) Merit step increases shall be granted, if funds are available, to employees who
                  receive a rating of "successful" or higher in an annual evaluation of their productivity and
                  performance.
                      (v) By October 15 of each year, the director shall submit market comparability
                  adjustments to the director of the Governor's Office of Planning and Budget for consideration to
                  be included as part of the affected agency's base budgets.
                      (vi) By October 31 of each year, the director shall recommend a compensation package
                  to the governor.
                      (vii) Adjustments shall incorporate the results of a total compensation market survey of
                  salary ranges and benefits of a reasonable cross section of comparable benchmark positions in
                  private and public employment in the state. The survey may also study comparable unusual
                  positions requiring recruitment outside Utah in the surrounding western states. The director may
                  cooperate with other public and private employers in conducting the survey.
                      (viii) The director shall establish criteria to assure the adequacy and accuracy of the


                  survey and shall use methods and techniques similar to and consistent with those used in private
                  sector surveys. Except as provided under Section 67-19-12.3 , the survey shall include a
                  reasonable cross section of employers. The director may cooperate with or participate in any
                  survey conducted by other public and private employers.
                      (ix) The establishing of a salary range is a nondelegable activity subject to Subsection
                  67-19-8 (1) and is not appealable under the grievance procedures of Sections 67-19-30 through
                  67-19-32 , Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
                      (x) The governor shall:
                      (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
                  the executive budget and shall recommend the method of distributing the adjustments;
                      (B) submit compensation recommendations to the Legislature; and
                      (C) support the recommendation with schedules indicating the cost to individual
                  departments and the source of funds.
                      (xi) If funding is approved by the Legislature in a general appropriations act, the
                  adjustments take effect on the July 1 following the enactment.
                      (5) (a) The director shall regularly evaluate the total compensation program of state
                  employees in the classified service.
                      (b) The department shall determine if employee benefits are comparable to those offered
                  by other private and public employers using information from:
                      (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
                  Chamber of Commerce Research Center; or
                      (ii) the most recent edition of a nationally recognized benefits survey.
                      (6) (a) The director shall submit proposals for a state employee compensation plan to the
                  governor by October 31 of each year, setting forth findings and recommendations affecting state
                  employee compensation.
                      (b) The governor shall consider the director's proposals in preparing budget
                  recommendations for the Legislature.
                      (c) The governor's budget proposals to the Legislature shall include a specific


                  recommendation on state employee compensation.
                      Section 160. Section 67-19-15 is amended to read:
                       67-19-15. Career service -- Exempt positions -- Schedules for civil service positions
                  -- Coverage of career service provisions.
                      (1) Except as otherwise provided by law or by rules and regulations established for
                  federally aided programs, the following positions are exempt from the career service provisions
                  of this chapter:
                      (a) the governor, members of the Legislature, and all other elected state officers,
                  designated as Schedule AA;
                      (b) the agency heads enumerated in Section 67-22-2 , and commissioners designated as
                  Schedule AB;
                      (c) all employees and officers in the office and at the residence of the governor,
                  designated as Schedule AC;
                      (d) employees who are in a confidential relationship to an agency head or commissioner
                  and who report directly to, and are supervised by, a department head, commissioner, or deputy
                  director of an agency or its equivalent, designated as Schedule AD;
                      (e) unskilled employees in positions requiring little or no specialized skill or training,
                  designated as Schedule AE;
                      (f) part-time professional noncareer persons who are paid for any form of medical and
                  other professional service and who are not engaged in the performance of administrative duties,
                  designated as Schedule AF;
                      (g) attorneys in the attorney general's office who are under their own career service pay
                  plan, designated as Schedule AG;
                      (h) teaching staff of all state institutions and patients and inmates employed in state
                  institutions, designated as Schedule AH;
                      (i) persons appointed to a position vacated by an employee who has a right to return
                  under federal or state law or policy, designated as Schedule AI;
                      (j) noncareer employees compensated for their services on a seasonal or contractual basis


                  who are hired for limited periods of less than nine consecutive months or who are employed on
                  less than 1/2 time basis, designated as Schedule AJ;
                      (k) those employees in a personal and confidential relationship to elected officials,
                  designated as Schedule AK;
                      (l) employees appointed to perform work of a limited duration not exceeding two years
                  or to perform work with time-limited funding, designated as Schedule AL;
                      (m) employees of the Department of Community and [Economic Development] Culture
                  whose positions are designated as executive/professional positions by the executive director of
                  the Department of Community and [Economic Development] Culture with the concurrence of the
                  director, and employees of the Governor's Office of Economic Development whose positions are
                  designated as executive/professional positions by the director of the office, designated as
                  Schedule AM;
                      (n) employees of the Legislature, designated as Schedule AN;
                      (o) employees of the judiciary, designated as Schedule AO;
                      (p) all judges in the judiciary, designated as Schedule AP;
                      (q) members of state and local boards and councils appointed by the governor and
                  governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
                  faculty, and other employees of state universities and other state institutions of higher education,
                  designated as Schedule AQ;
                      (r) employees who make statewide policy, designated as Schedule AR; and
                      (s) any other employee whose appointment is required by statute to be career service
                  exempt, designated as Schedule AS.
                      (2) The civil service shall consist of two schedules as follows:
                      (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
                      (ii) Removal from any appointive position under Schedule A, unless otherwise regulated
                  by statute, is at the pleasure of the appointing officers without regard to tenure.
                      (b) Schedule B is the competitive career service schedule, consisting of all positions
                  filled through competitive selection procedures as defined by the director.


                      (3) (a) The director, after consultation with the heads of concerned executive branch
                  departments and agencies and with the approval of the governor, shall allocate positions to the
                  appropriate schedules under this section.
                      (b) Agency heads shall make requests and obtain approval from the director before
                  changing the schedule assignment and tenure rights of any position.
                      (c) Unless the director's decision is reversed by the governor, when the director denies an
                  agency's request, the director's decision is final.
                      (4) (a) Compensation for employees of the Legislature shall be established by the
                  directors of the legislative offices in accordance with Section 36-12-7 .
                      (b) Compensation for employees of the judiciary shall be established by the state court
                  administrator in accordance with Section 78-3-24 .
                      (c) Compensation for officers, faculty, and other employees of state universities and
                  institutions of higher education shall be established as provided in Title 53B, Chapters 1,
                  Governance, Powers, Rights and Responsibilities, and 2, Institutions of Higher Education.
                      (d) Unless otherwise provided by law, compensation for all other Schedule A employees
                  shall be established by their appointing authorities, within ranges approved by, and after
                  consultation with the director of the Department of Human Resources.
                      (5) All employees of the Office of State Auditor, the Office of State Treasurer, the Office
                  of the Attorney General, excluding attorneys who are under their own career service system, and
                  employees who are not exempt under this section are covered by the career service provisions of
                  this chapter.
                      Section 161. Section 67-19c-101 is amended to read:
                       67-19c-101. Department award program.
                      (1) As used in this section:
                      (a) "Department" means the Department of Administrative Services, the Department of
                  Agriculture and Food, the Department of Alcoholic Beverage Control, the Department of
                  Commerce, the Department of Community and [Economic Development] Culture, the
                  Department of Corrections, the Department of Workforce Services, the Department of


                  Environmental Quality, the Department of Financial Institutions, the Department of Health, the
                  Department of Human Resource Management, the Department of Human Services, the Insurance
                  Department, the National Guard, the Department of Natural Resources, the Department of Public
                  Safety, the Public Service Commission, the Labor Commission, the State Board of Education,
                  the State Board of Regents, the State Tax Commission, and the Department of Transportation.
                      (b) "Department head" means the individual or body of individuals in whom the ultimate
                  legal authority of the department is vested by law.
                      (2) There is created a department awards program to award an outstanding employee in
                  each department of state government.
                      (3) (a) By April 1 of each year, each department head shall solicit nominations for
                  outstanding employee of the year for his department from the employees in his department.
                      (b) By July 1 of each year, the department head shall:
                      (i) select a person from the department to receive the outstanding employee of the year
                  award using the criteria established in Subsection (3)(c); and
                      (ii) announce the recipient of the award to his employees.
                      (c) Department heads shall make the award to a person who demonstrates:
                      (i) extraordinary competence in performing his function;
                      (ii) creativity in identifying problems and devising workable, cost-effective solutions to
                  them;
                      (iii) excellent relationships with the public and other employees;
                      (iv) a commitment to serving the public as the client; and
                      (v) a commitment to economy and efficiency in government.
                      (4) (a) The Department of Human Resource Management shall divide any appropriation
                  for outstanding department employee awards that it receives from the Legislature equally among
                  the departments.
                      (b) If the department receives monies from the Department of Human Resource
                  Management or if the department budget allows, the department head shall provide the employee
                  with a bonus, a plaque, or some other suitable acknowledgement of the award.


                      (5) (a) The department head may name the award after an exemplary present or former
                  employee of the department.
                      (b) A department head may not name the award for himself or for any relative as defined
                  in Section 52-3-1 .
                      (c) Any awards or award programs existing in any department as of May 3, 1993, shall
                  be modified to conform to the requirements of this section.
                      Section 162. Section 67-22-2 is amended to read:
                       67-22-2. Compensation -- Other state officers.
                      (1) The governor shall establish salaries for the following state officers within the
                  following salary ranges fixed by the Legislature:
                          State Officer                 Salary Range
                      Commissioner of Agriculture and Food     $65,200 - $88,400
                      Commissioner of Insurance             $65,200 - $88,400
                      Commissioner of the Labor Commission     $65,200 - $88,400
                      Director, Alcoholic Beverage Control
                          Commission                 $65,200 - $88,400
                      Commissioner, Department of
                          Financial Institutions             $65,200 - $88,400
                      Members, Board of Pardons and Parole     $65,200 - $88,400
                      Executive Director, Department
                          of Commerce                 $65,200 - $88,400
                      Executive Director, Commission on
                          Criminal and Juvenile Justice     $65,200 - $88,400
                      Adjutant General                 $65,200 - $88,400
                      Chair, Tax Commission             $70,600 - $95,200
                      Commissioners, Tax Commission         $70,600 - $95,200
                      Executive Director, Department of
                          Community and [Economic]


                          [Development] Culture         $70,600 - $95,200
                      Executive Director, Tax Commission     $70,600 - $95,200
                      Chair, Public Service Commission         $70,600 - $95,200
                      Commissioners, Public Service
                          Commission                 $70,600 - $95,200
                      Executive Director, Department
                          of Corrections                 $76,800 - $103,600
                      Commissioner, Department of Public Safety     $76,800 - $103,600
                      Executive Director, Department of
                          Natural Resources             $76,800 - $103,600
                      Director, Governor's Office of Planning
                          and Budget                 $76,800 - $103,600
                      Executive Director, Department of
                          Administrative Services         $76,800 - $103,600
                      Executive Director, Department of
                          Human Resource Management     $76,800 - $103,600
                      Executive Director, Department of
                          Environmental Quality         $76,800 - $103,600
                      Executive Director, Department of
                          Workforce Services             $83,600 - $112,900
                      Executive Director, Department of
                          Health                     $83,600 - $112,900
                      Executive Director, Department
                          of Human Services             $83,600 - $112,900
                      Executive Director, Department
                          of Transportation             $83,600 - $112,900
                      Chief Information Officer             $83,600 - $112,900
                      Director, Governor's Office


                          of Economic Development        $76,800 - $103,600
                      (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
                  follows:
                      (i) the option of participating in a state retirement system established by Title 49, Utah
                  State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered by
                  the State Retirement Office in accordance with the Internal Revenue Code and its accompanying
                  rules and regulations;
                      (ii) health insurance;
                      (iii) dental insurance;
                      (iv) basic life insurance;
                      (v) unemployment compensation;
                      (vi) workers' compensation;
                      (vii) required employer contribution to Social Security;
                      (viii) long-term disability income insurance;
                      (ix) the same additional state-paid life insurance available to other noncareer service
                  employees;
                      (x) the same severance pay available to other noncareer service employees;
                      (xi) the same sick leave, converted sick leave, educational allowances, and holidays
                  granted to Schedule B state employees, and the same annual leave granted to Schedule B state
                  employees with more than ten years of state service;
                      (xii) the option to convert accumulated sick leave to cash or insurance benefits as
                  provided by law or rule upon resignation or retirement according to the same criteria and
                  procedures applied to Schedule B state employees;
                      (xiii) the option to purchase additional life insurance at group insurance rates according
                  to the same criteria and procedures applied to Schedule B state employees; and
                      (xiv) professional memberships if being a member of the professional organization is a
                  requirement of the position.
                      (b) Each department shall pay the cost of additional state-paid life insurance for its


                  executive director from its existing budget.
                      (3) The Legislature fixes the following additional benefits:
                      (a) for the executive director of the State Tax Commission a vehicle for official and
                  personal use;
                      (b) for the executive director of the Department of Transportation a vehicle for official
                  and personal use;
                      (c) for the executive director of the Department of Natural Resources a vehicle for
                  commute and official use;
                      (d) for the Commissioner of Public Safety:
                      (i) an accidental death insurance policy if POST certified; and
                      (ii) a public safety vehicle for official and personal use;
                      (e) for the executive director of the Department of Corrections:
                      (i) an accidental death insurance policy if POST certified; and
                      (ii) a public safety vehicle for official and personal use;
                      (f) for the Adjutant General a vehicle for official and personal use; and
                      (g) for each member of the Board of Pardons and Parole a vehicle for commute and
                  official use.
                      (4) (a) The governor has the discretion to establish a specific salary for each office listed
                  in Subsection (1), and, within that discretion, may provide salary increases within the range fixed
                  by the Legislature.
                      (b) The governor shall apply the same overtime regulations applicable to other FLSA
                  exempt positions.
                      (c) The governor may develop standards and criteria for reviewing the performance of
                  the state officers listed in Subsection (1).
                      (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
                  not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
                  Act, shall be established as provided in Section 67-19-15 .
                      Section 163. Section 72-1-209 is amended to read:


                       72-1-209. Department to cooperate in programs relating to scenic centers.
                      The department shall cooperate in planning and promoting road-building programs into
                  the scenic centers of the state and in providing camping grounds and facilities in scenic centers
                  for tourists with:
                      (1) the [Department of Community and] Governor's Office of Economic Development;
                      [(2) the Division of Travel Development;]
                      [(3)] (2) other states;
                      [(4)] (3) all national, state, and local planning and zoning agencies and boards;
                      [(5)] (4) municipal and county officials; and
                      [(6)] (5) other agencies.
                      Section 164. Section 72-4-302 is amended to read:
                       72-4-302. Utah State Scenic Byway Committee -- Creation -- Membership --
                  Meetings -- Expenses.
                      (1) There is created the Utah State Scenic Byway Committee.
                      (2) The committee shall consist of the following members:
                      (a) a representative from each of the following [agencies] entities appointed by each
                  respective [agency] entity:
                      (i) the [Division of Travel] Governor's Office of Economic Development;
                      (ii) the Utah Department of Transportation;
                      (iii) the Utah Association of Governments;
                      (iv) the Division of State Parks and Recreation;
                      (v) the Federal Highway Administration;
                      (vi) the National Park Service;
                      (vii) the National Forest Service;
                      (viii) the Bureau of Land Management; and
                      (ix) the Utah Travel Regions Association;
                      (b) two local government tourism representatives selected by the state [agencies] entities
                  identified in Subsection (2)(a); and


                      (c) a representative from the private sector selected by the state [agencies] entities
                  identified in Subsection (2)(a).
                      (3) (a) The representative from the [Division of Travel] Governor's Office of Economic
                  Development shall chair the committee.
                      (b) The members appointed under Subsections (2)(a)(v), (vi), (vii), and (viii) serve as
                  nonvoting, ex officio members of the committee.
                      (4) The [Division of Travel] Governor's Office of Economic Development and the
                  department shall provide staff support to the committee.
                      (5) (a) The chair may call a meeting of the committee only with the concurrence of the
                  department.
                      (b) A majority of the voting members of the committee constitute a quorum.
                      (c) Action by a majority vote of a quorum of the committee constitutes action by the
                  committee.
                      (6) (a) (i) Members who are not state government employees shall receive no
                  compensation or benefits for their services, but may receive per diem and expenses incurred in
                  the performance of the member's official duties at the rates established by the Division of
                  Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) Members may decline to receive per diem and expenses for their service.
                      (b) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties at the rates established by the Division of Finance
                  under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem
                  and expenses for their service.
                      (c) (i) Local government members who do not receive salary, per diem, or expenses from
                  the entity that they represent for their service may receive per diem and expenses incurred in the
                  performance of their official duties at the rates established by the Division of Finance under
                  Sections 63A-3-106 and 63A-3-107 .


                      (ii) Local government members may decline to receive per diem and expenses for their
                  service.
                      Section 165. Section 72-7-504 is amended to read:
                       72-7-504. Advertising prohibited near interstate or primary system -- Exceptions --
                  Logo advertising -- Department rules.
                      (1) Outdoor advertising that is capable of being read or comprehended from any place on
                  the main-traveled way of an interstate or primary system may not be erected or maintained,
                  except:
                      (a) directional and other official signs and notices authorized or required by law,
                  including signs and notices pertaining to natural wonders and scenic and historic attractions,
                  informational or directional signs regarding utility service, emergency telephone signs, buried or
                  underground utility markers, and above ground utility closure signs;
                      (b) signs advertising the sale or lease of property upon which they are located;
                      (c) signs advertising activities conducted on the property where they are located,
                  including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
                      (d) signs located in a commercial or industrial zone;
                      (e) signs located in unzoned industrial or commercial areas as determined from actual
                  land uses; and
                      (f) logo advertising under Subsection (2).
                      (2) (a) The department may itself or by contract erect, administer, and maintain
                  informational signs on the main-traveled way of an interstate or primary system for the display of
                  logo advertising and information of interest to the traveling public if:
                      (i) the department complies with Title 63, Chapter 56, Utah Procurement Code, in the
                  lease or other contract agreement with a private party for the sign or sign space; and
                      (ii) the private party for the lease of the sign or sign space pays an amount set by the
                  department to be paid to the department or the party under contract with the department under
                  this Subsection (2).
                      (b) The amount shall be sufficient to cover the costs of erecting, administering, and


                  maintaining the signs or sign spaces.
                      (c) The department may consult the [Division of Travel] Governor's Office of Economic
                  Development in carrying out this Subsection (2).
                      (3) (a) Revenue generated under Subsection (2) shall be:
                      (i) applied first to cover department costs under Subsection (2); and
                      (ii) deposited in the Transportation Fund.
                      (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the General
                  Fund as a dedicated credit for use by the [Division of Travel] Governor's Office of Economic
                  Development no later than the following fiscal year.
                      (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
                  rules made by the department under Sections 72-7-506 and 72-7-507 .
                      Section 166. Section 73-10c-3 is amended to read:
                       73-10c-3. Water Development Coordinating Council created -- Purpose --
                  Members.
                      (1) (a) There is created within the Department of Natural Resources a Water
                  Development Coordinating Council. The council comprises:
                      (i) the director of the Division of Water Resources;
                      (ii) the executive secretary of the Water Quality Board;
                      (iii) the executive secretary of the Drinking Water Board;
                      (iv) the executive director of the Department of Community and [Economic
                  Development] Culture or [his] the executive director's designee; and
                      (v) the state treasurer or [his] the treasurer's designee.
                      (b) The council shall choose a chair and vice chair from among its own members.
                      (c) (i) State government officer and employee members who do not receive salary, per
                  diem, or expenses from their agency for their service may receive per diem and expenses incurred
                  in the performance of their official duties from the council at the rates established by the Division
                  of Finance under Sections 63A-3-106 and 63A-3-107 .
                      (ii) State government officer and employee members may decline to receive per diem


                  and expenses for their service.
                      (2) The purposes of the council are to:
                      (a) coordinate the use and application of the funds available to the state to give financial
                  assistance to political subdivisions of this state so as to promote the conservation, development,
                  treatment, restoration, and protection of the waters of this state;
                      (b) promote the coordination of the financial assistance programs administered by the
                  state and the use of the financing alternative most economically advantageous to the state and its
                  political subdivisions;
                      (c) promote the consideration by the Board of Water Resources, Drinking Water Board,
                  and Water Quality Board of regional solutions to the water and wastewater needs of individual
                  political subdivisions of this state; and
                      (d) assess the adequacy and needs of the state and its political subdivisions with respect
                  to water-related infrastructures and advise the governor and the Legislature on those funding
                  needs.
                      Section 167. Repealer.
                      This bill repeals:
                      Section 9-2-206, Director of division.
                      Section 9-2-801, Short title.
                      Section 9-2-809, State's share in moneys from technology and applications.
                      Section 9-2-1501, Title -- Purpose.
                      Section 9-2-1502, Definitions.
                      Section 9-2-1503, Community Economic Development Project Fund created --
                  Administration.
                      Section 9-2-1504, Distribution of fund moneys.
                      Section 9-2-1505, Entities authorized to receive fund moneys.
                      Section 9-2-1506, Application process and priorities.
                      Section 9-2-1507, Annual accounting.
                      Section 9-2-1705, Creation of Tourism Marketing Performance Fund Committee --


                  Members -- Appointment -- Qualifications --Terms -- Quorum -- Per diem and expenses --
                  Staff.
                      Section 9-2-1706, Duties of Tourism Marketing Performance Fund Committee.
                      Section 9-3-205, Director of division.
                      Section 9-3-208, Offices in Salt Lake City.
                      Section 168. Study on the implementation of the restructuring of the Department of
                  Community and Economic Development.
                      (1) The Legislature's Workforce Services and Community and Economic Development
                  Interim Committee shall monitor and study the implementation and consequences of the
                  restructuring of the Department of Community and Economic Development into the Governor's
                  Office of Economic Development and the Department of Community and Culture as required in
                  this H.B. 318.
                      (2) The committee shall conduct its study to determine what modifications, if any, may
                  be needed in the office, or the department, or both to further enhance the state's economic
                  development and community and culture programs and policies.
                      (3) The committee shall complete the study required by Subsection (1) and present its
                  findings, including any proposed legislation, to the Legislative Management Committee by
                  November 30, 2005.
                      Section 169. Legislative audits required.
                      (1) Beginning July 1, 2005, the Legislative Auditor General shall:
                      (a) conduct a limited scope audit of the management and financial controls of the
                  Governor's Office of Economic Development; and
                      (b) report its findings and recommendations to the Legislature's Interim Executive
                  Appropriations Committee by December 22, 2005.
                      (2) Beginning March 15, 2006, the Legislative Auditor General shall:
                      (a) conduct a performance audit of the Governor's Office of Economic Development to
                  evaluate the programs and expenditures of the office; and
                      (b) report its findings and recommendations to the Legislature's Interim Executive


                  Appropriations Committee by December 22, 2006.
                      Section 170. Effective date.
                      This bill takes effect on July 1, 2005.
                      Section 171. Coordinating H.B. 318 with H.B. 1.
                      If this H.B. 318 and H.B. 1, Annual Appropriations Act, both pass, it is the intent of the
                  Legislature that the Division of Finance:
                      (1) reallocate any appropriations contained in the line items entitled "Department of
                  Community and Economic Development - Business and Travel Development" and "Department
                  of Community and Economic Development - Incentive Funds" to the newly created Governor's
                  Office of Economic Development; and
                      (2) reallocate any appropriations contained in the remaining line items listed under the
                  heading "Department of Community and Economic Development" to the Department of
                  Community and Culture.
                      Section 172. Coordinating H.B. 318 with H.B. 11.
                      If this H.B.318 and H.B.11, Economic Development Incentives, both pass, it is the intent
                  of the Legislature that the Office of Legislative Research and General Counsel, in preparing the
                  Utah Code database for publication, shall make the following changes:
                      (1) Part 22 in H.B.11 shall be renumbered as Part 17 in Title 63, Chapter 38f, with
                  Sections 9-2-2201 , 9-2-2202 , 9-2-2203 , 9-2-2204 , 9-2-2205 , 9-2-2206 , and 9-2-2207 being
                  renumbered to 63-38f-1701 , 63-38f-1702 , 63-38f-1703 , 63-38f-1704 , 63-38f-1705 , 63-38f-1706 ,
                  and 63-38f-1707 respectively.
                      (2) The following subsections in Section 63-38f-1309 shall read as follows:
                      "(2) The account shall be used to make payments as required under [Section 9-2-2006]
                  Sections 63-38f-1306 and 63-38f-1705 ."
                      "(3) (a) The Division of Finance shall transfer from the General Fund the amount
                  estimated by the [department] office from new state revenues needed to make the partial rebates
                  as allowed in [Section 9-2-2006 ] Sections 63-38f-1306 and 63-38f-1705 ."
                      "(4) Notwithstanding Subsections 51-5-3(23)(b) and 63-38-9(4)(c), after receiving


                  request for payment, in accordance with Subsection [ 9-2-2006 ] 63-38f-1306 (2) or
                  63-38f-1705 (2), the Division of Finance shall pay the partial rebates as allowed in Section
                  [ 9-2-2006 ] 63-38f-1306 or 63-38f-1705 from the account."
                      "(5) (b) The [department] office shall update the estimates required by Subsections
                  (5)(a)(i) and (ii) within 30 days of the signing of each new agreement entered into under this part
                  or Part 17, Economic Development Incentives Act."
                      (3) Renumbered Section 63-38f-1703 shall read as follows:
                      " 63-38f-1703. Definitions.
                      As used in this part:
                      (1) "Development zone" means an economic development zone created under Section
                  63-38f-1704 .
                      (2) "High paying jobs" means the annual wages of employment positions that compare
                  favorably against the median wage of a community in which the jobs will exist.
                      (3) "Local incentives" means financial and other assistance provided by local taxing
                  authorities within a development zone, which may include:
                      (a) partial rebates of new local revenues; and
                      (b) other sources of funds under authority of state law or local ordinances, or both state
                  law and local ordinances.
                      (4) "New incremental jobs" means jobs that are:
                      (a) not shifted from one jurisdiction in the state to another jurisdiction in the state; and
                      (b) created in addition to the baseline count of jobs already in existence within a
                  company or employed by an individual.
                      (5) "New local revenues" mean incremental new local tax revenues that are generated as
                  a result of new economic commercial projects in a development zone, to include the local
                  government's portion of sales taxes, property taxes, impact fees, and other taxes or fees, or both
                  taxes and fees, derived from the projects, together with indirect local government revenues
                  generated by the projects, but not to include any portion of sales taxes earmarked for state
                  government or other taxing jurisdictions eligible for sales tax revenues.


                      (6) "New state revenues" means incremental new state tax revenues that are generated as
                  a result of new economic commercial projects in a development zone, to include the state's
                  portion of sales taxes, and company and employee income taxes derived from the projects,
                  together with indirect state revenues generated by the projects, but not to include any portion of
                  sales taxes earmarked for local governments or other taxing jurisdictions eligible for sales tax
                  revenues.
                      (7) "Office" means the Governor's Office of Economic Development.
                      (8) "Partial rebates" means returning a portion of the new local revenues and new state
                  revenues generated by new commercial projects to companies or individuals that have created
                  new economic growth within a development zone."
                      (4) Renumbered Section 63-38f-1704 shall read as follows:
                      " 63-38f-1704. Creation of economic development zones -- Incentives.
                      (1) The office, with advice from the board, may create an economic development zone in
                  the state that satisfies all of the following requirements:
                      (a) the area is zoned commercial, industrial, manufacturing, business park, research park,
                  or other appropriate use in a community approved master plan; and
                      (b) the request to create a development zone has been forwarded to the office after first
                  being approved by an appropriate local government entity that has committed or will commit to
                  provide local incentives.
                      (2) (a) The office, with advice from the board, may enter into agreements providing for
                  partial rebates of new state revenues generated by new commercial projects to companies or
                  individuals that create new economic growth within a development zone under the same
                  restrictions and limitations as provided in Section 63-38f-1304 .
                      (b) The limitations and restrictions applied to partial rebates of new state revenues in
                  Section 63-38f-1304 also apply to partial rebates of new local revenues under this part."
                      (5) Renumbered Section 63-38f-1705 shall read as follows:
                      " 63-38f-1705. Qualifications for rebates -- Payment procedure.
                      "(1) The office shall set standards to qualify for partial rebates under this part, subject to


                  the following:
                      (a) the qualification criteria established in Subsections 63-38f-1305 (1), (2), (3), (4), and
                  (6); and
                      (b) only projects that include significant capital investment, the creation of high paying
                  jobs, or significant purchases from Utah vendors and providers, or any combination of these three
                  economic factors are eligible for partial rebates.
                      (2) A payment of partial rebates of new state revenues shall be made in accordance with
                  procedures adopted by the office, with advice from the board, to include the payment procedures
                  described in Section 63-38f-1306 as applied to partial rebates authorized under this part."
                      (6) Renumbered Section 63-38f-1706 shall read as follows:
                      " 63-38f-1706. Office's authority -- Report to Legislature.
                      (1) The office, with advice from the board, and within the limitations of this part, may
                  determine:
                      (a) the structure and amount of any partial rebates offered under this part;
                      (b) the economic impacts and job creation necessary to qualify for the incentive; and
                      (c) the other terms and conditions of an agreement entered into under this part.
                      (2) In reviewing clams for partial rebates of new state revenues, the office may accept the
                  same type of information and evidence allowed under Subsections 63-38f-1307 (2)(a) and (b).
                      (3) (a) The office shall make a report to the Legislature's Workforce Services and
                  Community and Economic Development Interim committee on:
                      (i) the success of attracting new commercial projects to development zones under this
                  part and the corresponding increase in new incremental jobs;
                      (ii) the period of time over which partial rebates of new state revenues shall be granted
                  under this part; and
                      (iii) the economic impact on the state related to generating new state revenues and
                  rebating a portion of those revenues under this part.
                      (b) The office shall make the report prior to the 2006 General Session of the Legislature
                  to enable the committee to determine whether this part should be modified during the 2006


                  General Session."
                      (7) Renumbered Section 63-38f-1707 shall read as follows:
                      " 63-38f-1707. Coordination with the Industrial Assistance Fund.
                      Projects that qualify for partial rebates on new state revenues under this part and enter
                  into agreements with the office under this part are ineligible to qualify for additional financial
                  assistance for the Industrial Assistance Fund under Section 63-38f-904 ."
                      Section 173. Coordinating H.B. 318 with H.B. 17.
                      If this H.B. 318 and H.B. 17, Motion Picture Incentive Fund, both pass, it is the intent of
                  the Legislature that the Office of Legislative Research and General Counsel, in preparing the
                  Utah Code database for publication, shall make the following changes:
                      (1) Part 21 in H.B. 17 shall be renumbered in Title 63, Chapter 38f, to be consistent with
                  the renumbering done in H.B. 318 to include the renumbering of sections within the part and
                  references to renumbered sections within the part.
                      (2) In Section 9-2-2102 the terms "executive director" shall be replaced with "director"
                  and "Department of Community and Economic Development" be replaced with "Governor's
                  Office of Economic Development" and the statutory cite shall be made consistent with the
                  renumbering of the part to Title 63, Chapter 38f.
                      (3) Subsections 9-2-2103 (2)(a) and (b) shall read:
                      "(2) (a) The fund shall be administered by the administrator with advice from the board.
                      (b) The administrator, with advice from the board, shall approve fund policies and
                  qualification criteria to receive an incentive award consistent with the provisions of this part."
                      (4) Subsections 9-2-2104 (2)(a) and (2)(b) shall read:
                       "(2) (a) The administrator has authority to determine the structure, amount, and nature of
                  the incentive given to a motion picture company, subject to the limitations and considerations set
                  out in Subsections (3) and (4).
                      (b) A financial incentive shall be paid to a motion picture company from the fund only
                  after the administrator has determined with advice from the board that the motion picture
                  company has satisfied the conditions upon which the incentive is to be given."


                      Section 174. Coordinating H.B. 318 with H.B. 224.
                      If this H.B. 318 and H.B. 224, Permanent Community Impact Fund - Board Membership,
                  both pass, it is the intent of the Legislature that the Office of Legislative Research and General
                  Counsel, in preparing the database for publication, shall modify Subsection 9-4-304(1)(j) enacted
                  in H.B. 224 to read: "(j) a locally elected official from each of the two counties that produced the
                  most mineral lease monies during the previous four-year period, prior to the term of appointment,
                  as determined by the Department of Community and Culture."
                      Section 175. Coordinating H.B. 318 with H.B. 301.
                      If this H.B. 318 and H.B. 301, Supplemental Appropriations Act III, both pass, it is the
                  intent of the Legislature that the Division of Finance:
                      (1) reallocate any appropriations contained in the line items entitled "Department of
                  Community and Economic Development - Business and Travel Development" and "Department
                  of Community and Economic Development - Incentive Funds" to the newly created Governor's
                  Office of Economic Development; and
                      (2) reallocate any appropriations contained in the remaining line items listed under the
                  heading "Department of Community and Economic Development" to the Department of
                  Community and Culture.
                      Section 176. Coordinating H.B. 318 with S.B. 1.
                      If this H.B. 318 and S.B. 1, Supplemental Appropriations Act, both pass, it is the intent of
                  the Legislature that the Division of Finance:
                      (1) reallocate any appropriations contained in the line items entitled "Department of
                  Community and Economic Development - Business and Travel Development" and "Department
                  of Community and Economic Development - Incentive Funds" to the newly created Governor's
                  Office of Economic Development; and
                      (2) reallocate any appropriations contained in the remaining line items listed under the
                  heading "Department of Community and Economic Development" to the Department of
                  Community and Culture.
                      Section 177. Coordinating H.B. 318 with S.B. 3.


                      If this H.B. 318 and S.B. 3, Supplemental Appropriations Act II, both pass, it is the intent
                  of the Legislature that the Division of Finance:
                      (1) reallocate any appropriations contained in the line items entitled "Department of
                  Community and Economic Development - Business and Travel Development" and "Department
                  of Community and Economic Development - Incentive Funds" to the newly created Governor's
                  Office of Economic Development; and
                      (2) reallocate any appropriations contained in the remaining line items listed under the
                  heading "Department of Community and Economic Development" to the Department of
                  Community and Culture.
                      Section 178. Coordinating H.B. 318 with S.B. 57.
                      If this H.B. 318 and S.B. 57, Use of State Sales and Use Tax Revenues for Business
                  Development in Disadvantaged Rural Communities, both pass, it is the intent of the Legislature
                  that the Office of Legislative Research and General Counsel, in preparing the Utah Code
                  database for publication, shall make the following changes:
                      (1) Part 21 in S.B. 57 shall be renumbered in Title 63, Chapter 38f to be consistent with
                  the renumbering done in H.B.318, to include the renumbering of sections within the part and
                  references to renumbered sections within the part.
                      (2) In Section 9-2-2102 , the references to "Section 9-2-202 " shall be changed to Section
                  63-38f-301 .
                      (3) (a) Subsection 9-2-2104 (1)(c) shall read: "(c) If the board awards a loan to an
                  eligible county in accordance with this section, the loan shall be subject to interest as provided by
                  the procedures and methods referred to in Subsection (6).
                      (b) Subsection 9-2-2104 (2)(b)(v) shall read:
                      "(v) establish that the community within which the project area is located is a
                  disadvantaged community on the basis of one or more of the following factors:
                      (A) median income per capita within the community;
                      (B) median property tax revenues generated within the community;
                      (C) median sales and use tax revenues generated within the community; or


                      (D) unemployment rates within the community;".
                      (c) Subsection 9-2-2104 (4)(c)(iii) shall read: "(iii) in accordance with procedures
                  established for prioritizing which projects may be awarded a grant or loan by the board under this
                  section;"; and Subsections (4)(c)(iii)(A) and (B) shall be deleted.
                      (d) In Subsections 9-2-2104 (4)(c)(ii) and 9-2-2104 (4)(d), the term "executive director"
                  shall be replaced with "director".
                      (e) In Subsection 9-2-2104 (5)(b), an "or" shall be inserted at the end of Subsection (iii),
                  the "or" deleted at the end of Subsection (iv), and Subsection (v) deleted in its entirety.
                      (f) Subsection 9-2-2104 (6) shall read:
                      "(6) The office shall establish procedures:
                      (a) for prioritizing which projects may be awarded a grant or loan by the board under this
                  section; and
                      (b) for loans awarded in accordance with this section:
                      (i) the methods of calculating interest applicable to the loans; and
                      (ii) procedures for:
                      (A) applying interest to the loans; and
                      (B) paying interest on the loans.".
                      (4) (a) In Subsection 9-2-2105 (1) and (2)(b), the term "executive director" shall be
                  replaced with "director".
                      (b) In Subsection 9-2-2105 (3)(c), the numeral "(i)" shall be deleted and Subsection (ii)
                  shall be deleted in its entirety.
                      (5) In Subsection 63-65-4 (1)(b)(v), the reference to Section 9-2-2103 shall be changed to
                  reflect the renumbering of the section in Title 63, Chapter 38f.
                      Section 179. Coordinating H.B. 318 with S.B. 141.
                      If this H.B. 318 and S.B. 141, Military Installation Partnerships, both pass, it is the intent
                  of the Legislature that the Office of Legislative Research and General Counsel, in preparing the
                  Utah Code database for publication, shall make the following changes:
                      (1) Part 23 in S.B. 141 shall be renumbered in Title 63, Chapter 38f, to be consistent


                  with the renumbering done in H.B. 318;
                      (2) in Section 9-2-2301 , the terms "department" shall be replaced with "office" and
                  "executive director" be replaced with "director"; and
                      (3) in Section 2. Appropriation, in S.B. 141 the term "Department of Community and
                  Economic Development" shall be replaced with "Governor's Office of Economic Development".


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