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H.B. 318

             1     

COMMUNITY AND ECONOMIC DEVELOPMENT

             2     
RESTRUCTURING

             3     
2005 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Craig W. Buttars

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill restructures the Department of Community and Economic Development by
             10      transferring the responsibility for economic development and tourism at the state level
             11      to a new entity within the governor's office, the Governor's Office of Economic
             12      Development.
             13      Highlighted Provisions:
             14          This bill:
             15          .    restructures the Department of Community and Economic Development by
             16      transferring the responsibilities of the Division of Business and Economic
             17      Development and the Division of Travel Development to a newly created
             18      Governor's Office of Economic Development;
             19          .    transfers from the current Department of Community and Economic Development
             20      to the Governor's Office of Economic Development the duty and responsibility to
             21      administer the following established programs:
             22              .    the Enterprise Zone Act;
             23              .    Targeted Business Income Tax Credits within an Enterprise Zone;
             24              .    Centers of Excellence;
             25              .    Shared Foreign Sales Corporations;
             26              .    the Industrial Assistance Fund;
             27              .    the Recycling Market Development Zone Act;


             28              .    the Utah Venture Capital Enhancement Act;
             29              .    Aerospace and Aviation Development Zones;
             30              .    the Tourism Performance Marketing Fund;
             31              .    the Waste Tire Recycling Industry Assistance Loan Program;
             32              .    the Utah Pioneers Communities Program; and
             33              .    the Rural Development Act;
             34          .    provides for management and administration of the Governor's Office of Economic
             35      Development by a director appointed by the governor with compensation being set
             36      by the governor within the salary range fixed by the Legislature in Title 67, Chapter
             37      22, State Officer Compensation, and provides the director with authority similar to
             38      that of the executive director of the current Department of Community and
             39      Economic Development in matters related to economic development and tourism,
             40      including establishing the office in any fashion considered appropriate by the
             41      director;
             42          .    renames the Department of Community and Economic Development as the
             43      Department of Community and Culture, and provides the department with
             44      responsibility for community and cultural development within the state and the
             45      coordination of state and local programs related to community and cultural
             46      development;
             47          .    changes the Board of Business and Economic Development to an advisory board
             48      while renaming the Board of Travel Development to the Board of Tourism
             49      Development and keeping it an advisory board;
             50          .    removes the rulemaking authority of entities absorbed into the Governor's Office of
             51      Economic Development;
             52          .    repeals the position of the Director of the Division of Business and Economic
             53      Development, the Fusion/Energy Technology Act, and the Community Economic
             54      Development Project Fund and distribution process for fund moneys;
             55          .    eliminates the Tourism Marketing Performance Fund Committee and the Utah
             56      Tourism Industry Coalition which nominated members to the Tourism Marketing
             57      Performance Fund Committee;
             58          .    transfers to the Governor's Office of Economic Development all the powers and


             59      limitations of a municipality;
             60          .    transfers to the Governor's Office of Economic Development oversight over special
             61      service district guaranteed bonds;
             62          .    transfers to the director of the Governor's Office of Economic Development
             63      membership on the Hazardous Waste Facilities Authority and the State Council on
             64      Workforce Services;
             65          .    provides a representative from the Governor's Office of Economic Development to
             66      serve on the Resource Development Coordinating Committee;
             67          .    transfers to the director in the Governor's Office of Economic Development
             68      authority to appear before the Public Service Commission regarding the economic
             69      impact of any matter;
             70          .    transfers to the Governor's Office of Economic Development oversight over the
             71      Economic Incentive Restricted Account;
             72          .    transfers to the Governor's Office of Economic Development the responsibility to
             73      provide staff to the Utah Technology Industry Council and its steering committee;
             74          .    provides that employees of the Department of Community and Culture and the
             75      Governor's Office of Economic Development whose positions are designated as
             76      schedule AM are not considered "state employees" by the Department of Human
             77      Resource Management and are exempt from classified service and career service
             78      provisions;
             79          .    transfers to the Governor's Office of Economic Development responsibility for input
             80      on road-building programs in scenic centers of the state;
             81          .    transfers to the Governor's Office of Economic Development membership on the
             82      Utah State Scenic Byway Committee;
             83          .    provides that the Department of Transportation may consult with the Governor's
             84      Office of Economic Development in erecting, administering, and maintaining
             85      informational signs on the interstate or primary road system;
             86          .    makes employing unit names available to the Governor's Office of Economic
             87      Development;
             88          .    transfers to the Governor's Office of Economic Development authority to give input
             89      to the Transportation Commission in selecting license plate slogans for the state;


             90          .    transfers to the Governor's Office of Economic Development the responsibility to
             91      serve as managing partner for the website known as Business.utah.gov;
             92          .    provides that the executive director of the Department of Community and Culture
             93      shall designate three qualified interim successors in case of emergency;
             94          .    makes conforming changes to boards and programs throughout the Utah Code
             95      which refer to the Department of Community and Economic Development or its
             96      executive director by replacing those references with the new titles and designations
             97      of entities and positions created in this bill; and
             98          .    makes technical changes.
             99      Monies Appropriated in this Bill:
             100          None
             101      Other Special Clauses:
             102          This bill takes effect on July 1, 2005.
             103      Utah Code Sections Affected:
             104      AMENDS:
             105          9-1-102, as enacted by Chapter 241, Laws of Utah 1992
             106          9-1-201, as last amended by Chapter 231, Laws of Utah 2002
             107          9-4-304, as last amended by Chapter 176, Laws of Utah 2002
             108          9-4-801, as last amended by Chapter 22, Laws of Utah 2004
             109          9-4-904, as last amended by Chapter 176, Laws of Utah 2002
             110          9-9-104.6, as enacted by Chapter 55, Laws of Utah 2003
             111          10-9-307, as last amended by Chapter 202, Laws of Utah 2004
             112          11-17-1.5, as last amended by Chapter 73, Laws of Utah 2001
             113          11-17-18, as enacted by Chapter 206, Laws of Utah 1986
             114          17-27-307, as last amended by Chapter 202, Laws of Utah 2004
             115          17A-2-1318, as renumbered and amended by Chapter 186, Laws of Utah 1990
             116          19-3-301, as last amended by Chapter 107, Laws of Utah 2001
             117          19-6-807, as last amended by Chapter 256, Laws of Utah 2002
             118          19-6-824, as last amended by Chapter 256, Laws of Utah 2002
             119          19-9-104, as renumbered and amended by Chapter 184, Laws of Utah 2003
             120          35A-1-206, as last amended by Chapter 1, Laws of Utah 1998


             121          35A-3-103, as last amended by Chapter 18, Laws of Utah 2004
             122          35A-3-203, as last amended by Chapter 13, Laws of Utah 2003
             123          35A-3-205, as last amended by Chapter 13, Laws of Utah 2003
             124          35A-3-309, as last amended by Chapters 18 and 29, Laws of Utah 2004
             125          35A-4-312, as last amended by Chapter 135, Laws of Utah 2003
             126          41-1a-405, as renumbered and amended by Chapter 1, Laws of Utah 1992
             127          46-4-503, as last amended by Chapters 90 and 120, Laws of Utah 2004
             128          53B-18-1002, as enacted by Chapter 23, Laws of Utah 2004
             129          59-7-610, as last amended by Chapter 198, Laws of Utah 2003
             130          59-10-108.7, as last amended by Chapter 198, Laws of Utah 2003
             131          59-21-2, as last amended by Chapter 24, Laws of Utah 2003
             132          63-5b-102, as last amended by Chapters 14 and 159, Laws of Utah 2002
             133          63-38d-502, as last amended by Chapter 18, Laws of Utah 2004
             134          63-49a-1, as enacted by Chapter 255, Laws of Utah 1994
             135          63-49a-2, as enacted by Chapter 255, Laws of Utah 1994
             136          63-49a-3, as last amended by Chapter 31, Laws of Utah 1995
             137          63-51-10, as enacted by Chapter 242, Laws of Utah 1981
             138          63A-9-801, as last amended by Chapter 209, Laws of Utah 2003
             139          63B-5-201, as last amended by Chapter 73, Laws of Utah 2001
             140          63D-1a-203, as enacted by Chapter 209, Laws of Utah 2003
             141          67-19-6.7, as last amended by Chapters 82 and 375, Laws of Utah 1997
             142          67-19-12, as last amended by Chapter 16, Laws of Utah 2003
             143          67-19-15, as last amended by Chapter 213, Laws of Utah 1997
             144          67-19c-101, as last amended by Chapters 82 and 375, Laws of Utah 1997
             145          67-22-2, as last amended by Chapters 156 and 306, Laws of Utah 2004
             146          72-1-209, as renumbered and amended by Chapter 270, Laws of Utah 1998
             147          72-4-302, as enacted by Chapter 172, Laws of Utah 2004
             148          72-7-504, as last amended by Chapter 166, Laws of Utah 2003
             149          73-10c-3, as last amended by Chapter 243, Laws of Utah 1996
             150      ENACTS:
             151          63-38f-201, Utah Code Annotated 1953


             152          63-38f-703, Utah Code Annotated 1953
             153      RENUMBERS AND AMENDS:
             154          63-38f-101, (Renumbered from 9-2-201, as renumbered and amended by Chapter 241,
             155      Laws of Utah 1992)
             156          63-38f-102, (Renumbered from 9-2-102, as enacted by Chapter 241, Laws of Utah
             157      1992)
             158          63-38f-202, (Renumbered from 9-1-204, as last amended by Chapter 176, Laws of Utah
             159      2002)
             160          63-38f-203, (Renumbered from 9-1-205, as last amended by Chapter 352, Laws of Utah
             161      2004)
             162          63-38f-204, (Renumbered from 9-1-206, as renumbered and amended by Chapter 241,
             163      Laws of Utah 1992)
             164          63-38f-205, (Renumbered from 9-1-207, as enacted by Chapter 29, Laws of Utah 1993)
             165          63-38f-301, (Renumbered from 9-2-202, as renumbered and amended by Chapter 241,
             166      Laws of Utah 1992)
             167          63-38f-302, (Renumbered from 9-2-203, as last amended by Chapter 176, Laws of Utah
             168      2002)
             169          63-38f-303, (Renumbered from 9-2-204, as last amended by Chapter 50, Laws of Utah
             170      2000)
             171          63-38f-304, (Renumbered from 9-2-205, as last amended by Chapter 50, Laws of Utah
             172      2000)
             173          63-38f-401, (Renumbered from 9-2-401, as renumbered and amended by Chapter 241,
             174      Laws of Utah 1992)
             175          63-38f-402, (Renumbered from 9-2-402, as last amended by Chapter 292, Laws of Utah
             176      1996)
             177          63-38f-403, (Renumbered from 9-2-403, as last amended by Chapter 292, Laws of Utah
             178      1996)
             179          63-38f-404, (Renumbered from 9-2-404, as last amended by Chapter 302, Laws of Utah
             180      2004)
             181          63-38f-405, (Renumbered from 9-2-405, as last amended by Chapter 292, Laws of Utah
             182      1996)


             183          63-38f-406, (Renumbered from 9-2-406, as last amended by Chapter 292, Laws of Utah
             184      1996)
             185          63-38f-407, (Renumbered from 9-2-407, as renumbered and amended by Chapter 241,
             186      Laws of Utah 1992)
             187          63-38f-408, (Renumbered from 9-2-408, as renumbered and amended by Chapter 241,
             188      Laws of Utah 1992)
             189          63-38f-409, (Renumbered from 9-2-409, as renumbered and amended by Chapter 241,
             190      Laws of Utah 1992)
             191          63-38f-410, (Renumbered from 9-2-410, as renumbered and amended by Chapter 241,
             192      Laws of Utah 1992)
             193          63-38f-411, (Renumbered from 9-2-411, as last amended by Chapter 292, Laws of Utah
             194      1996)
             195          63-38f-412, (Renumbered from 9-2-412, as last amended by Chapter 170, Laws of Utah
             196      1999)
             197          63-38f-413, (Renumbered from 9-2-413, as last amended by Chapter 155, Laws of Utah
             198      2001)
             199          63-38f-414, (Renumbered from 9-2-414, as last amended by Chapter 292, Laws of Utah
             200      1996)
             201          63-38f-415, (Renumbered from 9-2-415, as enacted by Chapter 275, Laws of Utah
             202      1998)
             203          63-38f-416, (Renumbered from 9-2-416, as enacted by Chapter 302, Laws of Utah
             204      2004)
             205          63-38f-501, (Renumbered from 9-2-1801, as enacted by Chapter 155, Laws of Utah
             206      2001)
             207          63-38f-502, (Renumbered from 9-2-1802, as enacted by Chapter 155, Laws of Utah
             208      2001)
             209          63-38f-503, (Renumbered from 9-2-1803, as last amended by Chapter 198, Laws of
             210      Utah 2003)
             211          63-38f-601, (Renumbered from 9-2-501, as renumbered and amended by Chapter 241,
             212      Laws of Utah 1992)
             213          63-38f-602, (Renumbered from 9-2-502, as renumbered and amended by Chapter 241,


             214      Laws of Utah 1992)
             215          63-38f-603, (Renumbered from 9-2-503, as last amended by Chapter 16, Laws of Utah
             216      2003)
             217          63-38f-604, (Renumbered from 9-2-504, as last amended by Chapter 82, Laws of Utah
             218      1997)
             219          63-38f-605, (Renumbered from 9-2-505, as renumbered and amended by Chapter 241,
             220      Laws of Utah 1992)
             221          63-38f-606, (Renumbered from 9-2-506, as last amended by Chapter 16, Laws of Utah
             222      2003)
             223          63-38f-607, (Renumbered from 9-2-507, as renumbered and amended by Chapter 241,
             224      Laws of Utah 1992)
             225          63-38f-701, (Renumbered from 9-2-601, as renumbered and amended by Chapter 241,
             226      Laws of Utah 1992)
             227          63-38f-702, (Renumbered from 9-2-602, as renumbered and amended by Chapter 241,
             228      Laws of Utah 1992)
             229          63-38f-704, (Renumbered from 9-2-603, as renumbered and amended by Chapter 241,
             230      Laws of Utah 1992)
             231          63-38f-801, (Renumbered from 9-2-901, as renumbered and amended by Chapter 241,
             232      Laws of Utah 1992)
             233          63-38f-802, (Renumbered from 9-2-902, as renumbered and amended by Chapter 241,
             234      Laws of Utah 1992)
             235          63-38f-901, (Renumbered from 9-2-1201, as renumbered and amended by Chapter 241,
             236      Laws of Utah 1992)
             237          63-38f-902, (Renumbered from 9-2-1202, as last amended by Chapter 182, Laws of
             238      Utah 2004)
             239          63-38f-903, (Renumbered from 9-2-1203, as last amended by Chapter 182, Laws of
             240      Utah 2004)
             241          63-38f-904, (Renumbered from 9-2-1204, as last amended by Chapter 182, Laws of
             242      Utah 2004)
             243          63-38f-905, (Renumbered from 9-2-1205, as last amended by Chapter 182, Laws of
             244      Utah 2004)


             245          63-38f-906, (Renumbered from 9-2-1205.1, as enacted by Chapter 14, Laws of Utah
             246      2003)
             247          63-38f-907, (Renumbered from 9-2-1205.5, as last amended by Chapter 182, Laws of
             248      Utah 2004)
             249          63-38f-908, (Renumbered from 9-2-1205.8, as enacted by Chapter 182, Laws of Utah
             250      2004)
             251          63-38f-909, (Renumbered from 9-2-1207, as last amended by Chapter 14, Laws of Utah
             252      2003)
             253          63-38f-1001, (Renumbered from 9-2-1401, as enacted by Chapter 153, Laws of Utah
             254      1992)
             255          63-38f-1002, (Renumbered from 9-2-1402, as enacted by Chapter 153, Laws of Utah
             256      1992)
             257          63-38f-1003, (Renumbered from 9-2-1403, as enacted by Chapter 153, Laws of Utah
             258      1992)
             259          63-38f-1101, (Renumbered from 9-2-1601, as enacted by Chapter 236, Laws of Utah
             260      1996)
             261          63-38f-1102, (Renumbered from 9-2-1602, as enacted by Chapter 236, Laws of Utah
             262      1996)
             263          63-38f-1103, (Renumbered from 9-2-1603, as last amended by Chapter 65, Laws of
             264      Utah 2002)
             265          63-38f-1104, (Renumbered from 9-2-1604, as enacted by Chapter 236, Laws of Utah
             266      1996)
             267          63-38f-1105, (Renumbered from 9-2-1605, as enacted by Chapter 236, Laws of Utah
             268      1996)
             269          63-38f-1106, (Renumbered from 9-2-1606, as enacted by Chapter 236, Laws of Utah
             270      1996)
             271          63-38f-1107, (Renumbered from 9-2-1607, as enacted by Chapter 236, Laws of Utah
             272      1996)
             273          63-38f-1108, (Renumbered from 9-2-1608, as enacted by Chapter 236, Laws of Utah
             274      1996)
             275          63-38f-1109, (Renumbered from 9-2-1609, as enacted by Chapter 236, Laws of Utah


             276      1996)
             277          63-38f-1110, (Renumbered from 9-2-1610, as last amended by Chapter 1, Laws of Utah
             278      2000)
             279          63-38f-1111, (Renumbered from 9-2-1611, as enacted by Chapter 236, Laws of Utah
             280      1996)
             281          63-38f-1112, (Renumbered from 9-2-1612, as enacted by Chapter 236, Laws of Utah
             282      1996)
             283          63-38f-1201, (Renumbered from 9-2-1901, as enacted by Chapter 291, Laws of Utah
             284      2003)
             285          63-38f-1202, (Renumbered from 9-2-1902, as last amended by Chapter 4, Laws of Utah
             286      2003, Second Special Session)
             287          63-38f-1203, (Renumbered from 9-2-1903, as last amended by Chapter 4, Laws of Utah
             288      2003, Second Special Session)
             289          63-38f-1204, (Renumbered from 9-2-1904, as enacted by Chapter 291, Laws of Utah
             290      2003)
             291          63-38f-1205, (Renumbered from 9-2-1905, as last amended by Chapter 4, Laws of Utah
             292      2003, Second Special Session)
             293          63-38f-1206, (Renumbered from 9-2-1906, as last amended by Chapter 4, Laws of Utah
             294      2003, Second Special Session)
             295          63-38f-1207, (Renumbered from 9-2-1907, as enacted by Chapter 291, Laws of Utah
             296      2003)
             297          63-38f-1208, (Renumbered from 9-2-1908, as enacted by Chapter 291, Laws of Utah
             298      2003)
             299          63-38f-1209, (Renumbered from 9-2-1909, as last amended by Chapter 4, Laws of Utah
             300      2003, Second Special Session)
             301          63-38f-1210, (Renumbered from 9-2-1910, as enacted by Chapter 291, Laws of Utah
             302      2003)
             303          63-38f-1211, (Renumbered from 9-2-1911, as enacted by Chapter 291, Laws of Utah
             304      2003)
             305          63-38f-1212, (Renumbered from 9-2-1912, as last amended by Chapter 4, Laws of Utah
             306      2003, Second Special Session)


             307          63-38f-1213, (Renumbered from 9-2-1913, as last amended by Chapter 4, Laws of Utah
             308      2003, Second Special Session)
             309          63-38f-1214, (Renumbered from 9-2-1914, as last amended by Chapter 4, Laws of Utah
             310      2003, Second Special Session)
             311          63-38f-1215, (Renumbered from 9-2-1915, as enacted by Chapter 291, Laws of Utah
             312      2003)
             313          63-38f-1216, (Renumbered from 9-2-1916, as enacted by Chapter 291, Laws of Utah
             314      2003)
             315          63-38f-1217, (Renumbered from 9-2-1917, as enacted by Chapter 291, Laws of Utah
             316      2003)
             317          63-38f-1218, (Renumbered from 9-2-1918, as enacted by Chapter 291, Laws of Utah
             318      2003)
             319          63-38f-1219, (Renumbered from 9-2-1919, as enacted by Chapter 291, Laws of Utah
             320      2003)
             321          63-38f-1220, (Renumbered from 9-2-1920, as enacted by Chapter 291, Laws of Utah
             322      2003)
             323          63-38f-1221, (Renumbered from 9-2-1921, as enacted by Chapter 291, Laws of Utah
             324      2003)
             325          63-38f-1222, (Renumbered from 9-2-1922, as enacted by Chapter 291, Laws of Utah
             326      2003)
             327          63-38f-1223, (Renumbered from 9-2-1923, as last amended by Chapter 92, Laws of
             328      Utah 2004)
             329          63-38f-1224, (Renumbered from 9-2-1924, as enacted by Chapter 291, Laws of Utah
             330      2003)
             331          63-38f-1301, (Renumbered from 9-2-2001, as enacted by Chapter 247, Laws of Utah
             332      2003)
             333          63-38f-1302, (Renumbered from 9-2-2002, as enacted by Chapter 247, Laws of Utah
             334      2003)
             335          63-38f-1303, (Renumbered from 9-2-2003, as enacted by Chapter 247, Laws of Utah
             336      2003)
             337          63-38f-1304, (Renumbered from 9-2-2004, as enacted by Chapter 247, Laws of Utah


             338      2003)
             339          63-38f-1305, (Renumbered from 9-2-2005, as enacted by Chapter 247, Laws of Utah
             340      2003)
             341          63-38f-1306, (Renumbered from 9-2-2006, as enacted by Chapter 247, Laws of Utah
             342      2003)
             343          63-38f-1307, (Renumbered from 9-2-2007, as enacted by Chapter 247, Laws of Utah
             344      2003)
             345          63-38f-1308, (Renumbered from 9-2-2008, as enacted by Chapter 247, Laws of Utah
             346      2003)
             347          63-38f-1309, (Renumbered from 9-2-2009, as enacted by Chapter 247, Laws of Utah
             348      2003)
             349          63-38f-1401, (Renumbered from 9-2-1701, as enacted by Chapter 301, Laws of Utah
             350      1997)
             351          63-38f-1402, (Renumbered from 9-2-1702, as last amended by Chapter 159, Laws of
             352      Utah 2001)
             353          63-38f-1403, (Renumbered from 9-2-1703, as last amended by Chapter 159, Laws of
             354      Utah 2001)
             355          63-38f-1404, (Renumbered from 9-2-1703.5, as last amended by Chapters 16 and 83,
             356      Laws of Utah 2003)
             357          63-38f-1405, (Renumbered from 9-2-1704, as last amended by Chapter 159, Laws of
             358      Utah 2001)
             359          63-38f-1406, (Renumbered from 9-3-201, as last amended by Chapter 109, Laws of
             360      Utah 1994)
             361          63-38f-1407, (Renumbered from 9-3-202, as last amended by Chapter 176, Laws of
             362      Utah 2002)
             363          63-38f-1408, (Renumbered from 9-3-203, as last amended by Chapter 109, Laws of
             364      Utah 1994)
             365          63-38f-1409, (Renumbered from 9-3-204, as last amended by Chapter 207, Laws of
             366      Utah 2002)
             367          63-38f-1410, (Renumbered from 9-3-206, as last amended by Chapter 109, Laws of
             368      Utah 1994)


             369          63-38f-1501, (Renumbered from 9-8-901, as last amended by Chapter 92, Laws of Utah
             370      1996)
             371          63-38f-1502, (Renumbered from 9-8-902, as last amended by Chapter 92, Laws of Utah
             372      1996)
             373          63-38f-1503, (Renumbered from 9-8-903, as last amended by Chapters 92 and 243,
             374      Laws of Utah 1996)
             375          63-38f-1504, (Renumbered from 9-8-904, as last amended by Chapter 92, Laws of Utah
             376      1996)
             377          63-38f-1505, (Renumbered from 9-8-905, as last amended by Chapter 92, Laws of Utah
             378      1996)
             379          63-38f-1601, (Renumbered from 9-16-101, as enacted by Chapter 73, Laws of Utah
             380      2004)
             381          63-38f-1602, (Renumbered from 9-16-102, as enacted by Chapter 73, Laws of Utah
             382      2004)
             383          63-38f-1603, (Renumbered from 9-16-103, as enacted by Chapter 73, Laws of Utah
             384      2004)
             385          63-38f-1604, (Renumbered from 9-16-104, as enacted by Chapter 73, Laws of Utah
             386      2004)
             387          63-38f-1605, (Renumbered from 9-16-105, as enacted by Chapter 73, Laws of Utah
             388      2004)
             389          63-38f-1606, (Renumbered from 9-16-106, as enacted by Chapter 73, Laws of Utah
             390      2004)
             391      REPEALS:
             392          9-2-206, as renumbered and amended by Chapter 241, Laws of Utah 1992
             393          9-2-801, as renumbered and amended by Chapter 241, Laws of Utah 1992
             394          9-2-809, as last amended by Chapter 10, Laws of Utah 1994
             395          9-2-1501, as last amended by Chapter 95, Laws of Utah 2000
             396          9-2-1502, as last amended by Chapter 95, Laws of Utah 2000
             397          9-2-1503, as enacted by Chapter 301, Laws of Utah 1996
             398          9-2-1504, as last amended by Chapter 95, Laws of Utah 2000
             399          9-2-1505, as last amended by Chapter 95, Laws of Utah 2000


             400          9-2-1506, as last amended by Chapter 95, Laws of Utah 2000
             401          9-2-1507, as enacted by Chapter 301, Laws of Utah 1996
             402          9-2-1705, as last amended by Chapter 159, Laws of Utah 2001
             403          9-2-1706, as enacted by Chapter 159, Laws of Utah 2001
             404      Uncodified Material Affected:
             405      ENACTS UNCODIFIED MATERIAL
             406     
             407      Be it enacted by the Legislature of the state of Utah:
             408          Section 1. Section 9-1-102 is amended to read:
             409           9-1-102. Definitions.
             410          As used in this title:
             411          (1) "Department" means the Department of Community and [Economic Development]
             412      Culture.
             413          (2) "Executive director" means the executive director of the Department of Community
             414      and [Economic Development] Culture.
             415          Section 2. Section 9-1-201 is amended to read:
             416     
Part 2. Department of Community and Culture

             417           9-1-201. Department of Community and Culture -- Creation -- Powers and
             418      duties.
             419          (1) There is created the Department of Community and [Economic Development]
             420      Culture.
             421          (2) The department shall:
             422          (a) be responsible for community and [economic] cultural development within the
             423      state;
             424          (b) perform [economic] community and cultural development planning for the state;
             425          (c) coordinate the program plans of the various divisions within the department;
             426          (d) administer and coordinate all state or federal grant programs which are, or become,
             427      available for community and [economic] cultural development;
             428          (e) administer any other programs over which the department is given administrative
             429      supervision by the governor;
             430          (f) annually submit a report to the governor and the Legislature; and


             431          (g) perform any other duties as provided by the Legislature.
             432          (3) The department may solicit and accept contributions of moneys, services, and
             433      facilities from any other sources, public or private, but may not use these funds for publicizing
             434      the exclusive interest of the donor.
             435          (4) Moneys received pursuant to Subsection (3) shall be deposited in the General Fund
             436      as restricted revenues of the department.
             437          Section 3. Section 9-4-304 is amended to read:
             438           9-4-304. Permanent Community Impact Fund Board created -- Members --
             439      Terms -- Chair -- Expenses.
             440          (1) There is created within the Department of Community and [Economic
             441      Development] Culture the Permanent Community Impact Fund Board composed of 11
             442      members as follows:
             443          (a) the chair of the Board of Water Resources or the chair's designee;
             444          (b) the chair of the Water Quality Board or the chair's designee;
             445          (c) the director of the department or the director's designee;
             446          (d) the chair of the State Board of Education or the chair's designee;
             447          (e) the chair of the State Board of Regents or the chair's designee;
             448          (f) the state treasurer;
             449          (g) the chair of the Transportation Commission or the chair's designee;
             450          (h) a locally elected official who resides in Carbon, Emery, Grand, or San Juan County;
             451          (i) a locally elected official who resides in Juab, Millard, Sanpete, Sevier, Piute, or
             452      Wayne County;
             453          (j) a locally elected official who resides in Duchesne, Daggett, or Uintah County; and
             454          (k) a locally elected official who resides in Beaver, Iron, Washington, Garfield, or
             455      Kane County.
             456          (2) (a) The members specified under Subsections (1)(h) through [(1)](k) shall be:
             457          (i) nominated by the Board of Directors of the Southeastern Association of
             458      Governments, Central Utah Association of Governments, Uintah Basin Association of
             459      Governments, and Southwestern Association of Governments, respectively; and
             460          (ii) appointed by the governor with the consent of the Senate.
             461          (iii) Except as required by Subsection (2)(a)(iv), as terms of current board members


             462      expire, the governor shall appoint each new member or reappointed member to a four-year
             463      term.
             464          (iv) Notwithstanding the requirements of Subsection (2)(a)(iii), the governor shall, at
             465      the time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             466      board members are staggered so that approximately half of the board is appointed every two
             467      years.
             468          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
             469      appointed for the unexpired term.
             470          (3) The terms of office for the members of the impact board specified under
             471      Subsections (1)(a) through [(1)](g) shall run concurrently with the terms of office for the
             472      councils, boards, committees, commission, departments, or offices from which the members
             473      come.
             474          (4) The executive director of the department, or the executive director's designee, shall
             475      be the chair of the impact board.
             476          (5) (a) (i) Members who are not government employees shall receive no compensation
             477      or benefits for their services, but may receive per diem and expenses incurred in the
             478      performance of the member's official duties at the rates established by the Division of Finance
             479      under Sections 63A-3-106 and 63A-3-107 .
             480          (ii) Members may decline to receive per diem and expenses for their service.
             481          (b) (i) State government officer and employee members who do not receive salary, per
             482      diem, or expenses from their agency for their service may receive per diem and expenses
             483      incurred in the performance of their official duties from the board at the rates established by the
             484      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             485          (ii) State government officer and employee members may decline to receive per diem
             486      and expenses for their service.
             487          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             488      from the entity that they represent for their service may receive per diem and expenses incurred
             489      in the performance of their official duties from the committee at the rates established by the
             490      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             491          (ii) Higher education members may decline to receive per diem and expenses for their
             492      service.


             493          (d) (i) Local government members who do not receive salary, per diem, or expenses
             494      from the entity that they represent for their service may receive per diem and expenses incurred
             495      in the performance of their official duties at the rates established by the Division of Finance
             496      under Sections 63A-3-106 and 63A-3-107 .
             497          (ii) Local government members may decline to receive per diem and expenses for their
             498      service.
             499          Section 4. Section 9-4-801 is amended to read:
             500           9-4-801. Creation.
             501          (1) There is created the Homeless Coordinating Committee.
             502          (2) (a) The committee shall consist of the state planning coordinator, the state
             503      superintendent of public instruction, the chair of the board of trustees of the Utah Housing
             504      Corporation, and the executive directors of the Department of Human Services, the Department
             505      of Corrections, the Department of Community and [Economic Development] Culture, the
             506      Department of Workforce Services, and the Department of Health, or their designees.
             507          (b) The governor shall appoint the chair from among these members.
             508          (3) The governor may also appoint as members of the committee representatives of
             509      local governments, local housing authorities, local law enforcement agencies, and of federal
             510      and private agencies and organizations concerned with the homeless, mentally ill, elderly,
             511      single-parent families, substance abusers, and persons with a disability.
             512          (4) (a) Except as required by Subsection (4)(b), as terms of current committee members
             513      expire, the governor shall appoint each new member or reappointed member to a four-year
             514      term.
             515          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             516      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             517      committee members are staggered so that approximately half of the committee is appointed
             518      every two years.
             519          (c) A person appointed under this Subsection (4) may not be appointed to serve more
             520      than three consecutive terms.
             521          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             522      appointed for the unexpired term.
             523          (6) (a) (i) Members who are not government employees shall receive no compensation


             524      or benefits for their services, but may receive per diem and expenses incurred in the
             525      performance of the member's official duties at the rates established by the Division of Finance
             526      under Sections 63A-3-106 and 63A-3-107 .
             527          (ii) Members may decline to receive per diem and expenses for their service.
             528          (b) (i) State government officer and employee members who do not receive salary, per
             529      diem, or expenses from their agency for their service may receive per diem and expenses
             530      incurred in the performance of their official duties from the committee at the rates established
             531      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             532          (ii) State government officer and employee members may decline to receive per diem
             533      and expenses for their service.
             534          (c) (i) Local government members who do not receive salary, per diem, or expenses
             535      from the entity that they represent for their service may receive per diem and expenses incurred
             536      in the performance of their official duties at the rates established by the Division of Finance
             537      under Sections 63A-3-106 and 63A-3-107 .
             538          (ii) Local government members may decline to receive per diem and expenses for their
             539      service.
             540          Section 5. Section 9-4-904 is amended to read:
             541           9-4-904. Creation -- Trustees -- Terms -- Vacancies -- Chair -- Powers -- Quorum
             542      -- Per diem and expenses.
             543          (1) (a) There is created an independent body politic and corporate, constituting a public
             544      corporation, known as the "Utah Housing Corporation."
             545          (b) The corporation may also be known and do business as the:
             546          (i) Utah Housing Finance Association; and
             547          (ii) Utah Housing Finance Agency in connection with any contract entered into when
             548      that was the corporation's legal name.
             549          (c) Any other entity may not use the names described in Subsections (1)(a) and (b)
             550      without the express approval of the corporation.
             551          (2) The corporation shall be governed by a board of trustees composed of the following
             552      nine trustees:
             553          (a) three ex officio trustees who shall be:
             554          (i) the executive director of the Department of Community and [Economic


             555      Development] Culture;
             556          (ii) the commissioner of the Department of Financial Institutions or his designee; and
             557          (iii) the state treasurer or his designee; and
             558          (b) six public trustees, being private citizens of the state, as follows:
             559          (i) two people representing the mortgage lending industry;
             560          (ii) two people representing the home building and real estate industry; and
             561          (iii) two people representing the public at large.
             562          (3) The governor shall:
             563          (a) appoint the six public trustees of the corporation with the consent of the Senate; and
             564          (b) ensure that:
             565          (i) the six public trustees are from different counties and are residents of Utah; and
             566          (ii) not more than three of the public trustees belong to the same political party.
             567          (4) (a) Except as required by Subsection (4)(b), the six public trustees shall be
             568      appointed to terms of office of four years each.
             569          (b) Notwithstanding the requirements of Subsection (4)(a), the governor shall, at the
             570      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             571      corporation trustees are staggered so that approximately half of the board is appointed every
             572      two years.
             573          (5) (a) Any of the six public trustees of the corporation may be removed from office for
             574      cause either by the governor or by an affirmative vote of any six trustees of the corporation.
             575          (b) When a vacancy occurs in the board of trustees for any reason, the replacement
             576      shall be appointed for the unexpired term.
             577          (c) Each public trustee shall hold office for the term of his appointment and until his
             578      successor has been appointed and qualified.
             579          (d) Any public trustee is eligible for reappointment but may not serve more than two
             580      full consecutive terms.
             581          (6) (a) The governor shall select the chair of the corporation.
             582          (b) The trustees shall elect from among their number a vice chair and other officers
             583      they may determine.
             584          (7) (a) Five trustees of the corporation constitute a quorum for transaction of business.
             585      An affirmative vote of at least five trustees is necessary for any action to be taken by the


             586      corporation.
             587          (b) A vacancy in the board of trustees may not impair the right of a quorum to exercise
             588      all rights and perform all duties of the corporation.
             589          (8) (a) (i) Trustees who are not government employees may not receive compensation
             590      or benefits for their services, but may receive a reasonable per diem and reimbursement
             591      expenses incurred in the performance of the trustee's official duties at the rates established by
             592      the board of trustees.
             593          (ii) Trustees may decline to receive per diem and expenses for their service.
             594          (b) (i) State government officer and employee trustees who do not receive salary, per
             595      diem, or expenses from their agency for their service may receive per diem and expenses
             596      incurred in the performance of their official duties from the corporation at the rates established
             597      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             598          (ii) State government officer and employee trustees may decline to receive per diem
             599      and expenses for their service.
             600          Section 6. Section 9-9-104.6 is amended to read:
             601           9-9-104.6. Participation of state agencies in meetings with tribal leaders.
             602          (1) For at least three of the joint meetings described in Subsection 9-9-104.5 (2)(a), the
             603      division shall coordinate with representatives of tribal governments and the entities listed in
             604      Subsection (2) to provide for the broadest participation possible in the joint meetings.
             605          (2) The following may participate in all meetings described in Subsection (1):
             606          (a) the chairs of the Native American Legislative Liaison Committee created in Section
             607      36-22-1 ;
             608          (b) the governor or the governor's designee;
             609          (c) a representative appointed by the chief administrative officer of the following:
             610          (i) the Department of Health;
             611          (ii) the Department of Human Services;
             612          (iii) the Department of Workforce Services;
             613          (iv) the State Office of Education; and
             614          (v) the State Board of Regents.
             615          (3) (a) The chief administrative officer of the agencies listed in Subsection (3)(b) shall:
             616          (i) designate [by no later than July 1, 2003] the name of a contact person for that


             617      agency that can assist in coordinating the efforts of state and tribal governments in meeting the
             618      needs of the Native Americans residing in the state; and
             619          (ii) notify the division:
             620          (A) who is the designated contact person described in Subsection (3)(a)(i); and
             621          (B) of any change in who is the designated contact person described in Subsection
             622      (3)(a)(i).
             623          (b) This Subsection (3) applies to the:
             624          (i) Department of Agriculture and Food;
             625          (ii) Department of Community and [Economic Development] Culture;
             626          (iii) Department of Corrections;
             627          (iv) Department of Environmental Quality;
             628          (v) Department of Natural Resources;
             629          (vi) Department of Public Safety;
             630          (vii) Department of Transportation;
             631          (viii) Office of the Attorney General; and
             632          (ix) State Tax Commission.
             633          (c) At the request of the division, a contact person listed in Subsection (3)(b) may
             634      participate in a meeting described in Subsection (1).
             635          (4) (a) Salaries and expenses of a legislator participating in accordance with this
             636      section in a meeting described in Subsection (1) shall be paid in accordance with Section
             637      36-2-2 and Joint Rule 15.03.
             638          (b) A state government officer or employee may receive per diem and expenses at the
             639      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 for
             640      participating in a meeting described in Subsection (1) if the officer or employee:
             641          (i) participates in the meeting in accordance with this section; and
             642          (ii) does not receive salary, per diem, or expenses from the officer's or employee's
             643      agency for participating in the meeting.
             644          (c) A state government officer or employee that participates in a meeting described in
             645      Subsection (1) may decline to receive per diem and expenses for participating in the meeting.
             646          Section 7. Section 10-9-307 is amended to read:
             647           10-9-307. Plans for moderate income housing.


             648          (1) The availability of moderate income housing is an issue of statewide concern. To
             649      this end:
             650          (a) cities should afford a reasonable opportunity for a variety of housing, including
             651      moderate income housing, to meet the needs of people desiring to live there; and
             652          (b) moderate income housing should be encouraged to allow persons with moderate
             653      incomes to benefit from and to fully participate in all aspects of neighborhood and community
             654      life.
             655          (2) As used in this section:
             656          (a) "Moderate income housing" means housing occupied or reserved for occupancy by
             657      households with a gross household income equal to or less than 80% of the median gross
             658      income for households of the same size in the county in which the city is located.
             659          (b) "Plan for moderate income housing" or "plan" means a written document adopted
             660      by a city legislative body that includes:
             661          (i) an estimate of the existing supply of moderate income housing located within the
             662      city;
             663          (ii) an estimate of the need for moderate income housing in the city for the next five
             664      years as revised biennially;
             665          (iii) a survey of total residential zoning;
             666          (iv) an evaluation of how existing zoning densities affect opportunities for moderate
             667      income housing; and
             668          (v) a description of the city's program to encourage an adequate supply of moderate
             669      income housing.
             670          (3) The legislative body of each city shall, as part of its general plan, adopt a plan for
             671      moderate income housing within that city.
             672          (4) A plan may provide moderate income housing by any means or combination of
             673      techniques which provide a realistic opportunity to meet estimated needs. The plan may include
             674      an analysis of why the means or techniques selected provide a realistic opportunity to meet the
             675      objectives of this section. [Such] The techniques may include:
             676          (a) rezoning for densities necessary to assure the economic viability of inclusionary
             677      developments, either through mandatory set asides or density bonuses;
             678          (b) infrastructure expansion and rehabilitation that will facilitate the construction of


             679      moderate income housing;
             680          (c) rehabilitation of existing uninhabitable housing stock;
             681          (d) consideration of waiving construction related fees generally imposed by the city;
             682          (e) utilization of state or federal funds or tax incentives to promote the construction of
             683      moderate income housing;
             684          (f) utilization of programs offered by the Utah Housing Corporation within that
             685      agency's funding capacity; and
             686          (g) utilization of affordable housing programs administered by the Department of
             687      Community and [Economic Development] Culture.
             688          (5) (a) After adoption of a plan for moderate income housing under Subsection (3), the
             689      legislative body of each city shall biennially:
             690          (i) review the plan and its implementation; and
             691          (ii) prepare a report setting forth the findings of the review.
             692          (b) Each report under Subsection (5)(a)(ii) shall include a description of:
             693          (i) efforts made by the city to reduce, mitigate, or eliminate local regulatory barriers to
             694      moderate income housing;
             695          (ii) actions taken by the city to encourage preservation of existing moderate income
             696      housing and development of new moderate income housing;
             697          (iii) progress made within the city to provide moderate income housing, as measured
             698      by permits issued for new units of moderate income housing; and
             699          (iv) efforts made by the city to coordinate moderate income housing plans and actions
             700      with neighboring municipalities.
             701          (c) The legislative body of each city shall send a copy of the report under Subsection
             702      (5)(a)(ii) to the Department of Community and [Economic Development] Culture and the
             703      association of governments in which the city is located.
             704          (6) In a civil action seeking enforcement or claiming a violation of this section, a
             705      plaintiff may not recover damages but may be awarded injunctive or other equitable relief only.
             706          Section 8. Section 11-17-1.5 is amended to read:
             707           11-17-1.5. Purpose of chapter.
             708          (1) (a) The purposes of this chapter are to stimulate the economic growth of the state,
             709      to promote employment and achieve greater industrial development in the state, to maintain or


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


             741      nature of their relationship with companies in which they invest, tend to concentrate their
             742      investments within a relatively close geographical area to their headquarters location.
             743          (g) It is found and declared that investors in economic development or new venture
             744      investment funds require for the overall security of their investments reasonable diversification
             745      of investment portfolios and that, in the course of this diversification, investments are often
             746      syndicated or jointly made among several financial institutions or funds. It is expressly found
             747      and declared that an economic development or new venture investment fund must from time to
             748      time for its optimal profitability and efficiency (which are important for the security and profit
             749      of bond purchasers providing funds therefor) cooperate with others who may be located outside
             750      [the state] of Utah or the county or municipality where the fund is headquartered in the making
             751      of investments and that the fund must be free in the interests of reciprocal relationships with
             752      other financial institutions and diversification of risks to invest from time to time in enterprises
             753      that are located outside of Utah or the counties or municipalities. It is specifically found that
             754      such activity by a locally managed fund, funded in whole or in part with the proceeds of bonds
             755      sold under this chapter, is within the public purposes of the state and any county or
             756      municipality offering the bonds, provided that the fund locates within [the state of] Utah or the
             757      county or municipality its headquarters where its actual investment decisions and management
             758      functions occur and limits the aggregate amount of its investments in companies located
             759      outside of Utah to an amount that in the aggregate does not exceed the aggregate amount of
             760      investments made by institutions and funds located outside of Utah in Utah companies, that the
             761      locally managed fund has sponsored or in which it has invested and that it has brought to the
             762      attention of investors outside of Utah.
             763          Section 9. Section 11-17-18 is amended to read:
             764           11-17-18. Powers of Governor's Office of Economic Development.
             765          For purposes of this chapter and for the purposes of the Utah Interlocal Cooperation
             766      Act, the [Division of Business and Economic Development, a division of the Department of
             767      Community and Economic Development] Governor's Office of Economic Development, has
             768      all the powers set out in this chapter of, and is subject to the same limitations as, a municipality
             769      as though the [division] office were defined as a municipality for purposes of this chapter, but
             770      it shall have such powers with respect to economic development or new venture investment
             771      fund projects only. It is not authorized to exercise such powers in any manner which will


             772      create general obligations of the state [of Utah] or any agency, department, division, or political
             773      subdivision thereof. [For purposes of this chapter, its governing body is deemed to be the
             774      Board of Business and Economic Development of the Division of Business and Economic
             775      Development.]
             776          Section 10. Section 17-27-307 is amended to read:
             777           17-27-307. Plans for moderate income housing.
             778          (1) The availability of moderate income housing is an issue of statewide concern. To
             779      this end:
             780          (a) counties should afford a reasonable opportunity for a variety of housing, including
             781      moderate income housing, to meet the needs of people desiring to live there; and
             782          (b) moderate income housing should be located in all areas of a community to allow
             783      persons with moderate incomes to benefit from and to fully participate in all aspects of
             784      neighborhood and community life.
             785          (2) As used in this section:
             786          (a) "Moderate income housing" means housing occupied or reserved for occupancy by
             787      households with a gross household income equal to or less than 80% of the median gross
             788      income of the county statistical area for households of the same size.
             789          (b) "Plan for moderate income housing" or "plan" means a written document adopted
             790      by a county legislative body that includes, but is not limited to:
             791          (i) an estimate of the existing supply of moderate income housing located within the
             792      county;
             793          (ii) an estimate of the need for moderate income housing in that county for the next
             794      five years as revised biennially;
             795          (iii) a survey of total residential zoning;
             796          (iv) an evaluation of how existing zoning densities affect opportunities for moderate
             797      income housing; and
             798          (v) a description of the county's program to encourage an adequate supply of moderate
             799      income housing.
             800          (3) [Before December 31, 1998, each] Each county legislative body shall, as part of its
             801      general plan, adopt a plan for moderate income housing within the unincorporated areas of that
             802      county.


             803          (4) (a) A plan may provide for moderate income housing by any means or combination
             804      of techniques which provide a realistic opportunity to meet estimated needs.
             805          (b) The plan may include an analysis of why the means or techniques selected provide
             806      a realistic opportunity to meet the objectives of this section. [Such]
             807          (c) The techniques may include:
             808          [(a)] (i) rezoning for densities necessary to assure the economic viability of
             809      inclusionary developments, either through mandatory set asides or density bonuses;
             810          [(b)] (ii) infrastructure expansion and rehabilitation that will facilitate the construction
             811      of moderate income housing;
             812          [(c)] (iii) rehabilitation of existing uninhabitable housing stock;
             813          [(d)] (iv) consideration of waiving construction related fees generally imposed by the
             814      county;
             815          [(e)] (v) utilization of state or federal funds or tax incentives to promote the
             816      construction of moderate income housing;
             817          [(f)] (vi) utilization of programs offered by the Utah Housing Corporation within that
             818      agency's funding capacity; and
             819          [(g)] (vii) utilization of affordable housing programs administered by the Department
             820      of Community and [Economic Development] Culture.
             821          (5) (a) After adoption of a plan for moderate income housing under Subsection (3), the
             822      legislative body of each county with a population over 25,000 shall biennially:
             823          (i) review the plan and its implementation; and
             824          (ii) prepare a report setting forth the findings of the review.
             825          (b) Each report under Subsection (5)(a)(ii) shall include a description of:
             826          (i) efforts made by the county to reduce, mitigate, or eliminate local regulatory barriers
             827      to moderate income housing;
             828          (ii) actions taken by the county to encourage preservation of existing moderate income
             829      housing and development of new moderate income housing;
             830          (iii) progress made within the county to provide moderate income housing, as
             831      measured by permits issued for new units of moderate income housing; and
             832          (iv) efforts made by the county to coordinate moderate income housing plans and
             833      actions with neighboring counties.


             834          (c) The legislative body of each county with a population over 25,000 shall send a copy
             835      of the report under Subsection (5)(a)(ii) to the Department of Community and [Economic
             836      Development] Culture and the association of governments in which the county is located.
             837          (6) In a civil action seeking enforcement or claiming a violation of this section, a
             838      plaintiff may not recover damages but may be awarded injunctive or other equitable relief only.
             839          Section 11. Section 17A-2-1318 is amended to read:
             840           17A-2-1318. Guaranteed bonds.
             841          (1) Guaranteed bonds may be issued in addition to and in excess of the 12% limitation
             842      provided for in Section 17A-2-1317 , but only upon the conditions provided for in Subsections
             843      (2) and (3).
             844          (2) There shall have been filed with and approved by the [Department of Community
             845      and] Governor's Office of Economic Development the following:
             846          (a) a report to the service district proposing to issue the guaranteed bonds from
             847      qualified registered architects or engineers or other persons qualified by experience as may be
             848      appropriate to the project involved, setting forth:
             849          (i) the estimated or, if available, the actual cost of acquisition, construction, and
             850      equipment of the project financed or to be financed including a description of the project;
             851          (ii) the principal amount of guaranteed bonds to be issued, the date and amount of each
             852      stated maturity of them and, set forth separately, the same information with respect to any
             853      guaranteed bonds of the service district as may be outstanding, including as to such outstanding
             854      guaranteed bonds the rates of interest they bear;
             855          (iii) the amount and the estimated amount of the annual debt service for each year
             856      during the life of all guaranteed bonds issued and then intended to be issued to finance all or
             857      any part of the project; and
             858          (iv) the date or estimated date of the completion of the project;
             859          (b) a copy, certified by the recording officer of the governing authority of the service
             860      district of the proposed guarantee by one or more taxpayers owning property within the
             861      boundaries of the service district of debt service on the guaranteed bonds, together with an
             862      opinion of counsel to the effect that the guarantee, when executed, will be the legal and binding
             863      obligation of the taxpayer or taxpayers in accordance with its tenor and terms; and
             864          (c) evidence satisfactory to the [Department of Community and] Governor's Office of


             865      Economic Development from the taxpayer or taxpayers guaranteeing the bonds as to the
             866      financial ability of the taxpayer or taxpayers to perform under the guarantee.
             867          (3) If the [Department of Community and] Governor's Office of Economic
             868      Development [shall approve] approves the issuance of the guaranteed bonds, it shall indicate its
             869      approval upon a duplicate original of the proceedings and return the same to the service
             870      district. Upon the filing of this approval in the office of the county recorder in which the
             871      governing authority is located, the principal amount of guaranteed bonds may be issued, but
             872      only upon compliance with the election requirements of Section 17A-2-1322 .
             873          (4) If the principal amount of any guaranteed bonds which having once been issued,
             874      remain outstanding but by their terms no longer enjoy the benefit of the guarantee, shall be
             875      included in the determination of bonded indebtedness for the purpose of the 12% limitation
             876      contained in Section 17A-2-1317 . The service district shall on July 1st of each year file with
             877      the department of community affairs a report certifying:
             878          (a) the total amount of bonds and other debt then outstanding and subject to the 12%
             879      limitation of Section 17A-2-1317 ;
             880          (b) the total amount of guaranteed bonds then outstanding and not subject to such 12%
             881      limitation; and
             882          (c) the total amount of bonds which, during the preceding 12 months, were deemed by
             883      their terms to no longer enjoy the benefit of the guarantee.
             884          Section 12. Section 19-3-301 is amended to read:
             885           19-3-301. Restrictions on nuclear waste placement in state.
             886          (1) The placement, including transfer, storage, decay in storage, treatment, or disposal,
             887      within the exterior boundaries of Utah of high-level nuclear waste or greater than class C
             888      radioactive waste is prohibited.
             889          (2) Notwithstanding Subsection (1) the governor, after consultation with the county
             890      executive and county legislative body of the affected county and with concurrence of the
             891      Legislature, may specifically approve the placement as provided in this part, but only if:
             892          (a) (i) the federal Nuclear Regulatory Commission issues a license, pursuant to the
             893      Nuclear Waste Policy Act, 42 U.S.C.A. 10101 et seq., or the Atomic Energy Act, 42 U.S.C.A.
             894      2011 et seq., for the placement within the exterior boundaries of Utah of high-level nuclear
             895      waste or greater than class C radioactive waste; and


             896          (ii) the authority of the federal Nuclear Regulatory Commission to grant a license
             897      under Subsection (2)(a)(i) is clearly upheld by a final judgment of a court of competent
             898      jurisdiction; or
             899          (b) an agency of the federal government is transporting the waste, and all state and
             900      federal requirements to proceed with the transportation have been met.
             901          (3) The requirement for the approval of a final court of competent jurisdiction shall be
             902      met in all of the following categories, in order for a state license proceeding regarding waste to
             903      begin:
             904          (a) transfer or transportation, by rail, truck, or other mechanisms;
             905          (b) storage, including any temporary storage at a site away from the generating reactor;
             906          (c) decay in storage;
             907          (d) treatment; and
             908          (e) disposal.
             909          (4) (a) Upon satisfaction of the requirements of Subsection (2)(a), for each category
             910      listed in Subsection (3), or satisfaction of the requirements under Subsection (2)(b), the
             911      governor, with the concurrence of the attorney general, shall certify in writing to the executive
             912      director of the Department of Environmental Quality that all of the requirements have been
             913      met, and that any necessary state licensing processes may begin.
             914          (b) Separate certification under this Subsection (4) shall be given for each category in
             915      Subsection (3).
             916          (5) (a) The department shall make, by rule, a determination of the dollar amount of the
             917      health and economic costs expected to result from a reasonably foreseeable accidental release
             918      of waste involving a transfer facility or storage facility, or during transportation of waste,
             919      within the exterior boundaries of the state. The department may initiate rulemaking under this
             920      Subsection (5)(a) on or after March 15, 2001.
             921          (b) (i) The department shall also determine the dollar amount currently available to
             922      cover the costs as determined in Subsection (5)(a):
             923          (A) under nuclear industry self-insurance;
             924          (B) under federal insurance requirements; and
             925          (C) in federal monies.
             926          (ii) The department may not include any calculations of federal monies that may be


             927      appropriated in the future in determining the amount under Subsection (5)(b)(i).
             928          (c) The department shall use the information compiled under Subsections (5)(a) and (b)
             929      to determine the amount of unfunded potential liability in the event of a release of waste from a
             930      storage or transfer facility, or a release during the transportation of waste.
             931          (6) (a) State agencies may not, for the purpose of providing any goods, services, or
             932      municipal-type services to a storage facility or transfer facility, or to any organization engaged
             933      in the transportation of waste, enter into any contracts or any other agreements prior to:
             934          (i) the satisfaction of the conditions in Subsection (4); and
             935          (ii) the executive director of the department having certified that the requirements of
             936      Sections 19-3-304 through 19-3-308 have been met for the purposes of a license application
             937      proceeding for a storage facility or transfer facility.
             938          (b) Political subdivisions of the state may not enter into any contracts or any other
             939      agreements for the purpose of providing any goods, services, or municipal-type services to a
             940      storage facility or transfer facility, or to any organization engaged in the transportation of
             941      waste.
             942          (c) This Subsection (6) does not prohibit a state agency from exercising the regulatory
             943      authority granted to it by law.
             944          (7) (a) Notwithstanding any other provision of law, any political subdivision may not
             945      be formed pursuant to the laws of Utah for the purpose of providing any goods, services, or
             946      municipal-type services to a storage facility or transfer facility prior to the satisfaction of the
             947      conditions in Subsection (4). These political subdivisions include:
             948          (i) a cooperative;
             949          (ii) a special district authorized by Title 17A, Special Districts;
             950          (iii) a limited purpose local governmental entities authorized by Title 17, Counties;
             951          (iv) any joint power agreement authorized by Title 11, Cities, Counties, and Local
             952      Taxing Units; and
             953          (v) the formation of a municipality, or any authority of a municipality authorized by
             954      Title 10, Utah Municipal Code.
             955          (b) (i) Subsection (7)(a) shall be strictly interpreted. Any political subdivision
             956      authorized and formed under the laws of the state on or after March 15, 2001 which
             957      subsequently contracts to, or in any manner agrees to provide, or does provide goods, services,


             958      or municipal-type services to a storage facility or transfer facility is formed in violation of
             959      Subsection (7)(a).
             960          (ii) If the conditions of Subsection (7)(b)(i) apply, the persons who formed the political
             961      subdivision are considered to have knowingly violated a provision of this part, and the
             962      penalties of Section 19-3-312 apply.
             963          (8) (a) An organization may not be formed for the purpose of providing any goods,
             964      services, or municipal-type services to a storage facility or transfer facility prior to:
             965          (i) the satisfaction of the conditions in Subsection (4); and
             966          (ii) the executive director of the department having certified that the requirements of
             967      Sections 19-3-304 through 19-3-308 have been met.
             968          (b) A foreign organization may not be registered to do business in the state for the
             969      purpose of providing any goods, services, or municipal-type services to a storage facility or
             970      transfer facility prior to:
             971          (i) the satisfaction of the conditions in Subsection (4); and
             972          (ii) the executive director of the department having certified that the requirements of
             973      Sections 19-3-304 through 19-3-308 have been met.
             974          (c) The prohibitions of Subsections (8)(a) and (b) shall be strictly applied, and:
             975          (i) the formation of a new organization or registration of a foreign organization within
             976      the state, any of whose purposes are to provide goods, services, or municipal-type services to a
             977      storage facility or transfer facility may not be licensed or registered in the state, and the local or
             978      foreign organization is void and does not have authority to operate within the state;
             979          (ii) any organization which is formed or registered on or after March 15, 2001, and
             980      which subsequently contracts to, or in any manner agrees to provide, or does provide goods,
             981      services, or municipal-type services to a storage facility or transfer facility has been formed or
             982      registered in violation of Subsection (8)(a) or (b) respectively; and
             983          (iii) if the conditions of Subsection (8)(c)(ii) apply, the persons who formed the
             984      organization or the principals of the foreign organization, are considered to have knowingly
             985      violated a provision of this part, and are subject to the penalties in Section 19-3-312 .
             986          (9) (a) (i) Any contract or agreement to provide any goods, services, or municipal-type
             987      services to any organization engaging in, or attempting to engage in the placement of high-level
             988      nuclear waste or greater than class C radioactive waste at a storage facility or transfer facility


             989      within the state are declared to be against the greater public interest, health, and welfare of the
             990      state, by promoting an activity which has the great potential to cause extreme public harm.
             991          (ii) These contracts or agreements under Subsection (9)(a)(i), whether formal or
             992      informal, are declared to be void from inception, agreement, or execution as against public
             993      policy.
             994          (b) (i) Any contract or other agreement to provide goods, services, or municipal-type
             995      services to storage or transfer facilities may not be executed within the state.
             996          (ii) Any contract or other agreement, existing or executed on or after March 15, 2001,
             997      is considered void from the time of agreement or execution.
             998          (10) (a) All contracts and agreements under Subsection (10)(b) are assessed an annual
             999      transaction fee of 75% of the gross value of the contract to the party providing the goods,
             1000      services, or municipal-type services to the storage facility or transfer facility or transportation
             1001      entity. The fee shall be assessed per calendar year, and is payable on a prorated basis on or
             1002      before the last day of each month in accordance with rules established under Subsection
             1003      (10)(d), and as follows:
             1004          (i) 25% of the gross value of the contract to the department; and
             1005          (ii) 50% of the gross value of the contract to the Department of Community and
             1006      [Economic Development] Culture, to be used by the Utah Division of Indian Affairs as
             1007      provided in Subsection (11).
             1008          (b) Contracts and agreements subject to the fee under Subsection (10)(a) are those
             1009      contracts and agreements to provide goods, services, or municipal-type services to a storage or
             1010      transfer facility, or to any organization engaged in the transportation of high-level nuclear
             1011      waste or greater than class C radioactive waste to a transfer facility or storage facility, and
             1012      which:
             1013          (i) are in existence on March 15, 2001; or
             1014          (ii) become effective notwithstanding Subsection (9)(a).
             1015          (c) Any governmental agency which regulates the charges to consumers for services
             1016      provided by utilities or other organizations shall require the regulated utility or organization to
             1017      include the fees under Subsection (10)(a) in the rates charged to the purchaser of the goods,
             1018      services, or municipal-type services affected by Subsection (10)(b).
             1019          (d) (i) The department, in consultation with the State Tax Commission, shall establish


             1020      rules for the valuation of the contracts and assessment and collection of the fees, and other
             1021      rules as necessary to determine the amount of and collection of the fee under Subsection
             1022      (10)(a). The department may initiate rulemaking under this Subsection (10)(d)(i) on or after
             1023      March 15, 2001.
             1024          (ii) Persons and organizations holding contracts affected by Subsection (10)(b) shall
             1025      make a good faith estimate of the fee under Subsection (10)(a) for calender year 2001, and
             1026      remit that amount to the department on or before July 31, 2001.
             1027          (11) (a) The portion of the fees imposed under Subsection (10) which is to be paid to
             1028      the Department of Community and [Economic Development] Culture for use by the Utah
             1029      Division of Indian Affairs shall be used for establishment of a statewide community and
             1030      economic development program for the tribes of Native American people within the exterior
             1031      boundaries of the state who have by tribal procedure established a position rejecting siting of
             1032      any nuclear waste facility on their reservation lands.
             1033          (b) The program under Subsection (11)(a) shall include:
             1034          (i) educational services and facilities;
             1035          (ii) health care services and facilities;
             1036          (iii) programs of economic development;
             1037          (iv) utilities;
             1038          (v) sewer;
             1039          (vi) street lighting;
             1040          (vii) roads and other infrastructure; and
             1041          (viii) oversight and staff support for the program.
             1042          (12) It is the intent of the Legislature that this part does not prohibit or interfere with a
             1043      person's exercise of the rights under the First Amendment to the Constitution of the United
             1044      States or under Utah Constitution Article I, Sec. 15, by an organization attempting to site a
             1045      storage facility or transfer facility within the borders of the state for the placement of high-level
             1046      nuclear waste or greater than class C radioactive waste.
             1047          Section 13. Section 19-6-807 is amended to read:
             1048           19-6-807. Special revenue fund -- Creation -- Deposits.
             1049          (1) There is created a restricted special revenue fund entitled the "Waste Tire Recycling
             1050      Fund."


             1051          (2) The fund shall consist of:
             1052          (a) the proceeds of the fee imposed under Section 19-6-805 ;
             1053          (b) penalties collected under this part; and
             1054          (c) assets transferred to and loan repayments deposited in the fund pursuant to Section
             1055      19-6-824 .
             1056          (3) Money in the fund shall be used for:
             1057          (a) partial reimbursement of the costs of transporting, processing, recycling, or
             1058      disposing of waste tires as provided in this part;
             1059          (b) payment of administrative costs of local health departments as provided in Section
             1060      19-6-817 ;
             1061          (c) payment of costs incurred by the Division of Finance in accounting for and tracking
             1062      outstanding loans made under the Waste Tire Recycling Industrial Assistance Loan Program;
             1063      and
             1064          (d) payment of costs incurred by the [Department of Community and] Governor's
             1065      Office of Economic Development in collecting outstanding loans made under the Waste Tire
             1066      Recycling Industrial Assistance Loan Program.
             1067          (4) The Legislature may appropriate money from the fund to pay for costs of the
             1068      Department of Environmental Quality in administering and enforcing this part.
             1069          Section 14. Section 19-6-824 is amended to read:
             1070           19-6-824. Transfer of assets and liabilities from Waste Tire Recycling Industrial
             1071      Assistance Loan Fund to restricted special revenue fund -- Administration of outstanding
             1072      loans.
             1073          (1) The assets and liabilities of the Waste Tire Recycling Industrial Assistance Loan
             1074      Fund shall be transferred to the restricted special revenue fund.
             1075          (2) The Division of Finance shall account for and track any outstanding loans made
             1076      under the Waste Tire Recycling Industrial Assistance Loan Program.
             1077          (3) (a) The [Department of Community and] Governor's Office of Economic
             1078      Development shall administer the collection of any outstanding loans made under the Waste
             1079      Tire Recycling Industrial Assistance Loan Program.
             1080          (b) Any loan repayments shall be deposited in the fund.
             1081          Section 15. Section 19-9-104 is amended to read:


             1082           19-9-104. Creation of authority -- Members.
             1083          (1) (a) The authority comprises ten members. If the requirements of Section 19-9-103
             1084      are met, the governor shall, with the consent of the Senate, appoint six members of the
             1085      authority from the public-at-large.
             1086          (b) The remaining four members of the authority are:
             1087          (i) the executive director of the Department of Environmental Quality;
             1088          (ii) the [executive director] director of the [Department of Community and] Governor's
             1089      Office of Economic Development or the director's designee;
             1090          (iii) the executive director of the Department of Natural Resources; and
             1091          (iv) the executive director of the Department of Transportation.
             1092          (2) Public-at-large members, no more than three of whom shall be from the same
             1093      political party, shall be appointed to six-year terms of office, subject to removal by the
             1094      governor with or without cause.
             1095          (3) The governor shall name one public-at-large member as chairman of the authority
             1096      responsible for the call and conduct of authority meetings.
             1097          (4) The authority may elect other officers as necessary.
             1098          (5) Five members of the authority present at a properly noticed meeting constitute a
             1099      quorum for the transaction of official authority business.
             1100          (6) Public-at-large members are entitled to per diem and expenses for each day devoted
             1101      to authority business at the rates established by the director of the Division of Finance under
             1102      Sections 63A-3-106 and 63A-3-107 .
             1103          Section 16. Section 35A-1-206 is amended to read:
             1104           35A-1-206. State Council on Workforce Services -- Appointment -- Membership
             1105      -- Terms of members -- Compensation.
             1106          (1) There is created a State Council on Workforce Services that shall:
             1107          (a) perform the activities described in Subsection (8);
             1108          (b) advise on issues requested by the department and the Legislature; and
             1109          (c) make recommendations to the department regarding:
             1110          (i) the implementation of Chapters 2, 3, and 5; and
             1111          (ii) the coordination of apprenticeship training.
             1112          (2) (a) The council shall consist of the following voting members:


             1113          (i) each chair of a regional workforce services council appointed under Section
             1114      35A-2-103 ;
             1115          (ii) the superintendent of public instruction or the superintendent's designee;
             1116          (iii) the commissioner of higher education or the commissioner's designee; and
             1117          (iv) the following members appointed by the governor in consultation with the
             1118      executive director:
             1119          (A) four representatives of small employers as defined by rule by the department;
             1120          (B) four representatives of large employers as defined by rule by the department;
             1121          (C) four representatives of employees or employee organizations, including at least one
             1122      representative from nominees suggested by public employees organizations;
             1123          (D) two representatives of the clients served under this title including
             1124      community-based organizations;
             1125          (E) a representative of veterans in the state; and
             1126          (F) the executive director of the Utah State Office of Rehabilitation.
             1127          (b) The following shall serve as nonvoting ex officio members of the council:
             1128          (i) the executive director or the executive director's designee;
             1129          (ii) a legislator appointed by the governor from nominations of the speaker of the
             1130      House of Representatives and president of the Senate;
             1131          (iii) the executive director of the Department of Human Services;
             1132          (iv) the [executive director] director of the [Department of Community and] Governor's
             1133      Office of Economic Development or the director's designee; and
             1134          (v) the executive director of the Department of Health.
             1135          (3) (a) The governor shall appoint one nongovernmental member from the council to
             1136      be the chair.
             1137          (b) The chair shall serve at the pleasure of the governor.
             1138          (4) (a) A member appointed by the governor shall serve a term of four years and may
             1139      be reappointed to one additional term.
             1140          (b) A member shall continue to serve until the member's successor has been appointed
             1141      and qualified.
             1142          (c) Except as provided in Subsection (4)(d), as terms of council members expire, the
             1143      governor shall appoint each new member or reappointed member to a four-year term.


             1144          (d) Notwithstanding the requirements of Subsection (4)(c), the governor shall, at the
             1145      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             1146      council members are staggered so that approximately one half of the council is appointed every
             1147      two years.
             1148          (e) When a vacancy occurs in the membership for any reason, the replacement shall be
             1149      appointed for the unexpired term.
             1150          (5) A majority of the voting members constitutes a quorum for the transaction of
             1151      business.
             1152          (6) (a) (i) A public member may not receive compensation for the member's services,
             1153      but may receive per diem and expenses incurred in the performance of the member's official
             1154      duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             1155      63A-3-107 .
             1156          (ii) A public member may decline to receive per diem and expenses for the member's
             1157      service.
             1158          (b) (i) A state government member who does not receive salary, per diem, or expenses
             1159      from the state for the member's service may receive per diem and expenses incurred in the
             1160      performance of the member's official duties as a member at the rates established by the
             1161      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1162          (ii) A state government member who is a member because of the member's state
             1163      government position may not receive per diem or expenses for the member's service.
             1164          (iii) A state government member may decline to receive per diem and expenses for the
             1165      member's service.
             1166          (c) A legislator on the council shall receive compensation and expenses as provided by
             1167      law and legislative rule.
             1168          (d) A higher education member who does not receive salary, per diem, or expenses
             1169      from the entity that the member represents for the member's service may receive per diem and
             1170      expenses incurred in the performance of the member's official duties from the council at the
             1171      rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1172          (e) (i) A local government member who does not receive salary, per diem, or expenses
             1173      from the entity that the member represents for the member's service may receive per diem and
             1174      expenses incurred in the performance of the member's official duties at the rates established by


             1175      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1176          (ii) A local government member may decline to receive per diem and expenses for the
             1177      member's service.
             1178          (7) The department shall provide staff and administrative support to the council at the
             1179      direction of the executive director.
             1180          (8) The council shall:
             1181          (a) develop a state workforce services plan in accordance with Section 35A-1-207 ;
             1182          (b) review regional workforce services plans to certify consistency with state policy
             1183      guidelines;
             1184          (c) work cooperatively with regional councils on workforce services to oversee
             1185      regional workforce services area operations and to ensure that services are being delivered in
             1186      accordance with regional workforce services plans;
             1187          (d) oversee the department's provision of technical assistance to the regional workforce
             1188      services areas;
             1189          (e) evaluate program performance, customer satisfaction, and other indicators to
             1190      identify program strengths and weaknesses;
             1191          (f) based on the evaluation conducted under Subsection (8)(e) develop plans to
             1192      improve program outcomes;
             1193          (g) improve the understanding and visibility of state workforce services efforts through
             1194      external and internal marketing strategies;
             1195          (h) make an annual report of accomplishments to the governor and the Legislature
             1196      related to the activities of the department;
             1197          (i) issue other studies, reports, or documents the council considers advisable that are
             1198      not required under Subsection (8)(h);
             1199          (j) coordinate the planning and delivery of workforce development services with public
             1200      education, higher education, vocational rehabilitation, and human services; and
             1201          (k) perform other responsibilities within the scope of workforce services as requested
             1202      by:
             1203          (i) the Legislature;
             1204          (ii) the governor; or
             1205          (iii) the executive director.


             1206          Section 17. Section 35A-3-103 is amended to read:
             1207           35A-3-103. Division responsibilities.
             1208          The division shall:
             1209          (1) administer public assistance programs assigned by the Legislature and the
             1210      governor;
             1211          (2) determine eligibility in accordance with the requirements of this chapter for public
             1212      assistance programs assigned to it by the Legislature or the governor;
             1213          (3) cooperate with the federal government in the administration of public assistance
             1214      programs;
             1215          (4) administer the Utah state employment service in accordance with Section
             1216      35A-3-115 ;
             1217          (5) provide for the compilation of necessary or desirable information, statistics, and
             1218      reports;
             1219          (6) perform other duties and functions required by law;
             1220          (7) monitor the application of eligibility policy;
             1221          (8) develop personnel training programs for more effective and efficient operation of
             1222      all programs under the administration of the division;
             1223          (9) provide refugee resettlement services;
             1224          (10) provide child care assistance for children; and
             1225          (11) provide services and support that enable clients to qualify for affordable housing
             1226      in cooperation with:
             1227          (a) the Utah Housing Corporation;
             1228          (b) the Division of Housing and Community Development within the Department of
             1229      Community and [Economic Development] Culture; and
             1230          (c) local housing authorities.
             1231          Section 18. Section 35A-3-203 is amended to read:
             1232           35A-3-203. Functions and duties of office -- Annual report.
             1233          The office shall:
             1234          (1) assess critical child care needs throughout the state on an ongoing basis and focus
             1235      its activities on helping to meet the most critical needs;
             1236          (2) provide child care subsidy services for income-eligible children through age 12 and


             1237      for income-eligible children with disabilities through age 18;
             1238          (3) provide information:
             1239          (a) to employers for the development of options for child care in the work place; and
             1240          (b) for educating the public in obtaining quality child care;
             1241          (4) coordinate services for quality child care training and child care resource and
             1242      referral core services;
             1243          (5) apply for, accept, or expend gifts or donations from public or private sources;
             1244          (6) provide administrative support services to the committee;
             1245          (7) work collaboratively with the following for the delivery of quality child care and
             1246      early childhood programs, and school age programs throughout the state:
             1247          (a) the State Board of Education;
             1248          (b) the Department of Community and [Economic Development] Culture; and
             1249          (c) the Department of Health;
             1250          (8) research child care programs and public policy that will improve quality and
             1251      accessibility and that will further the purposes of the office and child care, early childhood
             1252      programs, and school age programs;
             1253          (9) provide planning and technical assistance for the development and implementation
             1254      of programs in communities that lack child care, early childhood programs, and school age
             1255      programs;
             1256          (10) provide organizational support for the establishment of nonprofit organizations
             1257      approved by the Child Care Advisory Committee, created in Section 35A-3-205 ; and
             1258          (11) provide a written report on the status of child care in Utah to the Legislature by
             1259      November 1 of each year through the Workforce Services and Community and Economic
             1260      Development Interim Committee.
             1261          Section 19. Section 35A-3-205 is amended to read:
             1262           35A-3-205. Creation of committee.
             1263          (1) There is created a Child Care Advisory Committee.
             1264          (2) The committee shall counsel and advise the office in fulfilling its statutory
             1265      obligations to include:
             1266          (a) a review of and recommendations on the office's annual budget;
             1267          (b) recommendations on how the office might best respond to child care needs


             1268      throughout the state; and
             1269          (c) recommendations on the use of new monies that come into the office, including
             1270      those for the Child Care Fund.
             1271          (3) The committee is composed of the following members, with special attention given
             1272      to insure diversity and representation from both urban and rural groups:
             1273          (a) one expert in early childhood development;
             1274          (b) one child care provider who operates a center;
             1275          (c) one child care provider who operates a family child care business;
             1276          (d) one parent who receives a child care subsidy from the office and is representative of
             1277      single-parent households with children through age 12;
             1278          (e) one representative of two-parent households with children through age 12 using
             1279      child care;
             1280          (f) one representative from the public at-large;
             1281          (g) one representative of the State Office of Education;
             1282          (h) one representative of the Department of Health;
             1283          (i) one representative of the Department of Human Services;
             1284          (j) one representative of the Department of Community and [Economic Development]
             1285      Culture;
             1286          (k) two representatives from the corporate community, one who is a recent "Family
             1287      Friendly" award winner and who received the award because of efforts in the child care arena;
             1288          (l) two representatives from the small business community;
             1289          (m) one representative from child care advocacy groups;
             1290          (n) one representative of children with disabilities;
             1291          (o) one representative from the state Head Start Association appointed by the
             1292      association;
             1293          (p) one representative from each child care provider association; and
             1294          (q) one representative of a child care resource and referral center appointed by the
             1295      organization representing child care resource and referral agencies.
             1296          (4) (a) The executive director shall appoint the members designated in Subsections
             1297      (3)(a) through (f) and (k) through (n).
             1298          (b) The head of the respective departments shall appoint the members referred to in


             1299      Subsections (3)(g) through (j).
             1300          (c) Each child care provider association shall appoint its respective member referred to
             1301      in Subsection (3)(p).
             1302          (5) (a) Except as required by Subsection (5)(b), as terms of current committee members
             1303      expire, the appointing authority shall appoint each new member or reappointed member to a
             1304      four-year term.
             1305          (b) Notwithstanding the requirements of Subsection (5)(a), the appointing authority
             1306      shall, at the time of appointment or reappointment, adjust the length of terms to ensure that the
             1307      terms of committee members are staggered so that approximately half of the committee is
             1308      appointed every two years.
             1309          (6) When a vacancy occurs in the membership for any reason, including missing three
             1310      consecutive meetings where the member has not been excused by the chair prior to or during
             1311      the meeting, the replacement shall be appointed for the unexpired term.
             1312          (7) A majority of the members constitutes a quorum for the transaction of business.
             1313          (8) (a) The executive director shall select a chair from the committee membership.
             1314          (b) A chair may serve no more than two one-year terms as chair.
             1315          (9) (a) Members who are not government employees may not receive compensation or
             1316      benefits for their services, but may receive per diem and expenses incurred in the performance
             1317      of the member's official duties at the rates established by the Division of Finance under
             1318      Sections 63A-3-106 and 63A-3-107 .
             1319          (b) State government officer and employee members who do not receive salary, per
             1320      diem, or expenses from their agency for their service may receive per diem and expenses
             1321      incurred in the performance of their official duties from the committee at the rates established
             1322      by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1323          (c) Members identified in Subsections (9)(a) and (b) may decline to receive per diem
             1324      and expenses for their service.
             1325          Section 20. Section 35A-3-309 is amended to read:
             1326           35A-3-309. Information regarding home ownership.
             1327          (1) The division shall provide information and service coordination to assist a client to
             1328      obtain affordable housing.
             1329          (2) The information and services may include:


             1330          (a) information from the Utah Housing Corporation and the Division of Housing and
             1331      Community Development within the Department of Community and [Economic Development]
             1332      Culture regarding special housing programs, including programs for first-time home buyers and
             1333      persons with low and moderate incomes and the eligibility requirements for those programs;
             1334          (b) referrals to programs operated by volunteers from the real estate industry that assist
             1335      clients in obtaining affordable housing, including information on home ownership, down
             1336      payments, closing costs, and credit requirements; and
             1337          (c) referrals to housing programs operated by municipalities, counties, local housing
             1338      authorities, and nonprofit housing organizations that assist individuals to obtain affordable
             1339      housing, including first-time home ownership.
             1340          Section 21. Section 35A-4-312 is amended to read:
             1341           35A-4-312. Records.
             1342          (1) (a) Each employing unit shall keep true and accurate work records containing any
             1343      information the department may prescribe by rule.
             1344          (b) The records shall be open to inspection and subject to being copied by the division
             1345      or its authorized representatives at a reasonable time and as often as may be necessary.
             1346          (c) The employing unit shall make the records available in the state for three years after
             1347      the calendar year in which the services were rendered.
             1348          (2) The division may require from an employing unit any sworn or unsworn reports
             1349      with respect to persons employed by it that the division considers necessary for the effective
             1350      administration of this chapter.
             1351          (3) Except as provided in this section or in Sections 35A-4-103 and 35A-4-106 ,
             1352      information obtained under this chapter or obtained from an individual may not be published or
             1353      open to public inspection in any manner revealing the employing unit's or individual's identity.
             1354          (4) (a) The information obtained by the division under this section may not be used in
             1355      court or admitted into evidence in an action or proceeding, except:
             1356          (i) in an action or proceeding arising out of this chapter;
             1357          (ii) in an action or proceeding by the Labor Commission to enforce the provisions of
             1358      Title 34, Chapter 23, Employment of Minors, Chapter 28, Payment of Wages, Chapter 40, Utah
             1359      Minimum Wage Act, or Title 34A, Utah Labor Code, [or Chapters 23, 28, and 40 of Title 34,
             1360      Labor in General,] provided the Labor Commission enters into a written agreement with the


             1361      division under Subsection (6)(b); or
             1362          (iii) under the terms of a court order obtained under Subsection 63-2-202 (7) and
             1363      Section 63-2-207 of the Government Records Access and Management Act.
             1364          (b) The information obtained by the division under this section shall be disclosed to:
             1365          (i) a party to an unemployment insurance hearing before an administrative law judge of
             1366      the department or a review by the Workforce Appeals Board to the extent necessary for the
             1367      proper presentation of the party's case; or
             1368          (ii) an employer, upon request in writing for any information concerning claims for
             1369      benefits with respect to the employer's former employees.
             1370          (5) The information obtained by the division under this section may be disclosed to:
             1371          (a) an employee of the department in the performance of the employee's duties in
             1372      administering this chapter or other programs of the department;
             1373          (b) an employee of the Labor Commission for the purpose of carrying out the programs
             1374      administered by the Labor Commission;
             1375          (c) an employee of the governor's office and other state governmental agencies
             1376      administratively responsible for statewide economic development, to the extent necessary for
             1377      economic development policy analysis and formulation;
             1378          (d) an employee of other governmental agencies that are specifically identified and
             1379      authorized by federal or state law to receive the information for the purposes stated in the law
             1380      authorizing the employee of the agency to receive the information;
             1381          (e) an employee of a governmental agency or workers' compensation insurer to the
             1382      extent the information will aid in the detection or avoidance of duplicate, inconsistent, or
             1383      fraudulent claims against a workers' compensation program, public assistance funds, or the
             1384      recovery of overpayments of workers' compensation or public assistance funds;
             1385          (f) an employee of a law enforcement agency to the extent the disclosure is necessary
             1386      to avoid a significant risk to public safety or in aid of a felony criminal investigation;
             1387          (g) an employee of the State Tax Commission or the Internal Revenue Service for the
             1388      purposes of audit verification or simplification, state or federal tax compliance, verification of
             1389      Standard Industry Codes, and statistics;
             1390          (h) an employee or contractor of the department or an educational institution, or other
             1391      governmental entity engaged in workforce investment and development activities under the


             1392      Workforce Investment Act of 1998 for the purpose of coordinating services with the
             1393      department, evaluating the effectiveness of those activities, and measuring performance;
             1394          (i) an employee of the [Department of Community and] Governor's Office of
             1395      Economic Development, for the purpose of periodically publishing in the Directory of Business
             1396      and Industry, the name, address, telephone number, number of employees by range, Standard
             1397      Industrial Code, and type of ownership of Utah employers;
             1398          (j) the public for any purpose following a written waiver by all interested parties of
             1399      their rights to nondisclosure; or
             1400          (k) an individual whose wage data has been submitted to the department by an
             1401      employer, so long as no information other than the individual's wage data and the identity of
             1402      the party who submitted the information is provided to the individual.
             1403          (6) Disclosure of private information under Subsection (4)(a)(ii) or Subsection (5),
             1404      with the exception of Subsections (5)(a) and (f), shall be made only if:
             1405          (a) the division determines that the disclosure will not have a negative effect on the
             1406      willingness of employers to report wage and employment information or on the willingness of
             1407      individuals to file claims for unemployment benefits; and
             1408          (b) the agency enters into a written agreement with the division in accordance with
             1409      rules made by the department.
             1410          (7) (a) The employees of a division of the department other than the Division of
             1411      Workforce Information and Payment Services or an agency receiving private information from
             1412      the division under this chapter are subject to the same requirements of privacy and
             1413      confidentiality and to the same penalties for misuse or improper disclosure of the information
             1414      as employees of the division.
             1415          (b) Use of private information obtained from the department by a person, or for a
             1416      purpose other than one authorized in Subsection (4) or (5) violates Subsection 76-8-1301 (4).
             1417          Section 22. Section 41-1a-405 is amended to read:
             1418           41-1a-405. License plate slogan -- Purpose -- Selection.
             1419          (1) The slogan required by Section 41-1a-402 shall be a brief slogan designed to
             1420      promote the recreational, scenic, historic, or tourist attractions of the state.
             1421          (2) (a) The slogan shall be selected by the commission pursuant to its procedures.
             1422          (b) The commission in selecting the slogan shall consult with all interested state


             1423      agencies including:
             1424          (i) the Utah Highway Patrol;
             1425          [(ii) the Division of Travel Development;]
             1426          [(iii)] (ii) the [Department of Community and] Governor's Office of Economic
             1427      Development; and
             1428          (iv) the Division of Parks and Recreation.
             1429          Section 23. Section 46-4-503 is amended to read:
             1430           46-4-503. Government products and services provided electronically.
             1431          (1) Notwithstanding Section 46-4-501 , a state governmental agency that administers
             1432      one or more of the following transactions shall allow those transactions to be conducted
             1433      electronically:
             1434          (a) an application for or renewal of a professional or occupational license issued under
             1435      Title 58, Occupations and Professions;
             1436          (b) the renewal of a drivers license;
             1437          (c) an application for a hunting or fishing license;
             1438          (d) the filing of:
             1439          (i) a return under Title 59, Chapter 10, Individual Income Tax Act or 12, Sales and Use
             1440      Tax Act;
             1441          (ii) a court document, as defined by the Judicial Council; or
             1442          (iii) a document under Title 70A, Uniform Commercial Code;
             1443          (e) a registration for:
             1444          (i) a product; or
             1445          (ii) a brand;
             1446          (f) a renewal of a registration of a motor vehicle;
             1447          (g) a registration under:
             1448          (i) Title 16, Corporations;
             1449          (ii) Title 42, Names; or
             1450          (iii) Title 48, Partnership; or
             1451          (h) submission of an application for benefits:
             1452          (i) under Title 35A, Chapter 3, Employment Support Act;
             1453          (ii) under Title 35A, Chapter 4, Employment Security Act; or


             1454          (iii) related to accident and health insurance.
             1455          (2) The state system of public education, in coordination with the Utah Education
             1456      Network, shall make reasonable progress toward making the following services available
             1457      electronically:
             1458          (a) secure access by parents and students to student grades and progress reports;
             1459          (b) e-mail communications with:
             1460          (i) teachers;
             1461          (ii) parent-teacher associations; and
             1462          (iii) school administrators;
             1463          (c) access to school calendars and schedules; and
             1464          (d) teaching resources that may include:
             1465          (i) teaching plans;
             1466          (ii) curriculum guides; and
             1467          (iii) media resources.
             1468          (3) A state governmental agency shall:
             1469          (a) in carrying out the requirements of this section, take reasonable steps to ensure the
             1470      security and privacy of records that are private or controlled as defined by Title 63, Chapter 2,
             1471      Government Records Access and Management Act;
             1472          (b) in addition to those transactions listed in Subsections (1) and (2), determine any
             1473      additional services that may be made available to the public through electronic means; and
             1474          (c) as part of the agency's information technology plan required by Section
             1475      63D-1a-303 , report on the progress of compliance with Subsections (1) through (3).
             1476          (4) Notwithstanding the other provisions of this part, a state governmental agency is
             1477      not required by this part to conduct a transaction electronically if:
             1478          (a) conducting the transaction electronically is not required by federal law; and
             1479          (b) conducting the transaction electronically is:
             1480          (i) impractical;
             1481          (ii) unreasonable; or
             1482          (iii) not permitted by laws pertaining to privacy or security.
             1483          (5) (a) For purposes of this Subsection (5), "one-stop shop" means the consolidation of
             1484      access to diverse services and agencies at one location including virtual colocation.


             1485          (b) State agencies that provide services or offer direct assistance to the business
             1486      community shall participate in the establishment, maintenance, and enhancement of an
             1487      integrated Utah business web portal known as Business.utah.gov. The purpose of the business
             1488      web portal is to provide "one-stop shop" assistance to businesses.
             1489          (c) State agencies shall partner with other governmental and nonprofit agencies whose
             1490      primary mission is to provide services or offer direct assistance to the business community in
             1491      Utah in fulfilling the requirements of this section.
             1492          (d) The following state [agencies] entities shall comply with the provisions of this
             1493      Subsection (5):
             1494          (i) [Department of Community and] Governor's Office of Economic Development,
             1495      which shall serve as the managing partner for the website;
             1496          (ii) Department of Workforce Services;
             1497          (iii) Department of Commerce;
             1498          (iv) Tax Commission;
             1499          (v) Department of Administrative Services - Division of Purchasing and General
             1500      Services, including other state agencies operating under a grant of authority from the division
             1501      to procure goods and services in excess of $5,000;
             1502          (vi) Department of Agriculture;
             1503          (vii) Department of Natural Resources; and
             1504          (viii) other state agencies that provide services or offer direct assistance to the business
             1505      sector.
             1506          (e) The business services available on the business web portal may include:
             1507          (i) business life cycle information;
             1508          (ii) business searches;
             1509          (iii) employment needs and opportunities;
             1510          (iv) motor vehicle registration;
             1511          (v) permit applications and renewal;
             1512          (vi) tax information;
             1513          (vii) government procurement bid notifications;
             1514          (viii) general business information;
             1515          (ix) business directories; and


             1516          (x) business news.
             1517          Section 24. Section 53B-18-1002 is amended to read:
             1518           53B-18-1002. Establishment of the center -- Purpose -- Duties and
             1519      responsibilities.
             1520          (1) There is established the Mormon Pioneer Heritage Center in connection with Utah
             1521      State University.
             1522          (2) The purpose of the center is to coordinate interdepartmental research and extension
             1523      efforts in recreation, heritage tourism, and agricultural extension service and to enter into
             1524      cooperative contracts with the United States Departments of Agriculture and Interior, state,
             1525      county, and city officers, public and private organizations, and individuals to enhance Mormon
             1526      pioneer heritage.
             1527          (3) The center has the following duties and responsibilities:
             1528          (a) to support U.S. Congressional findings that the landscape, architecture, traditions,
             1529      products, and events in the counties convey the heritage of pioneer settlements and their role in
             1530      agricultural development;
             1531          (b) to coordinate with extension agents in the counties to assist in the enhancement of
             1532      heritage businesses and the creation of heritage products;
             1533          (c) to foster a close working relationship with all levels of government, the private
             1534      sector, residents, business interests, and local communities;
             1535          (d) to support U.S. Congressional findings that the historical, cultural, and natural
             1536      heritage legacies of Mormon colonization and settlement are nationally significant;
             1537          (e) to encourage research and studies relative to the variety of heritage resources along
             1538      the 250-mile Highway 89 corridor from Fairview to Kanab, Utah, and Highways 12 and 24, the
             1539      All American Road, to the extent those resources demonstrate:
             1540          (i) the colonization of the western United States; and
             1541          (ii) the expansion of the United States as a major world power;
             1542          (f) to demonstrate that the great relocation to the western United States was facilitated
             1543      by:
             1544          (i) the 1,400 mile trek from Illinois to the Great Salt Lake by the Mormon Pioneers;
             1545      and
             1546          (ii) the subsequent colonization effort in Nevada, Utah, the southeast corner of Idaho,


             1547      the southwest corner of Wyoming, large areas of southeastern Oregon, much of southern
             1548      California, and areas along the eastern border of California; and
             1549          (g) to assist in interpretive efforts that demonstrate how the Boulder Loop, Capitol
             1550      Reef National Park, Zion National Park, Bryce Canyon National Park, and the Highway 89 area
             1551      convey the compelling story of how early settlers:
             1552          (i) interacted with Native Americans; and
             1553          (ii) established towns and cities in a harsh, yet spectacular, natural environment.
             1554          (4) The center, in collaboration with the U.S. Department of Interior, the National Park
             1555      Service, the U.S. Department of Agriculture, the U.S. Forest Service, the Utah Department of
             1556      Community and [Economic Development] Culture, the Utah Division of State History, and the
             1557      alliance and its intergovernmental local partners, shall:
             1558          (a) assist in empowering communities in the counties to conserve, preserve, and
             1559      enhance the heritage of the communities while strengthening future economic opportunities;
             1560          (b) help conserve, interpret, and develop the historical, cultural, natural, and
             1561      recreational resources within the counties; and
             1562          (c) expand, foster, and develop heritage businesses and products relating to the cultural
             1563      heritage of the counties.
             1564          (5) The center, in collaboration with the U.S. Department of the Interior, the National
             1565      Park Service, and with funding from the alliance, shall develop a heritage management plan.
             1566          Section 25. Section 59-7-610 is amended to read:
             1567           59-7-610. Recycling market development zones tax credit.
             1568          (1) For taxable years beginning on or after January 1, 1996, a business operating in a
             1569      recycling market development zone as defined in Section [ 9-2-1602 ] 63-38f-1102 may claim a
             1570      tax credit as provided in this section.
             1571          (a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price
             1572      paid for machinery and equipment used directly in:
             1573          (A) commercial composting; or
             1574          (B) manufacturing facilities or plant units that:
             1575          (I) manufacture, process, compound, or produce recycled items of tangible personal
             1576      property for sale; or
             1577          (II) reduce or reuse postconsumer waste material.


             1578          (ii) The [Department of Community and] Governor's Office of Economic Development
             1579      shall certify that the machinery and equipment described in Subsection (1)(a)(i) are integral to
             1580      the composting or recycling process:
             1581          (A) on a form provided by the commission; and
             1582          (B) before a taxpayer is allowed a tax credit under this section.
             1583          (iii) The [Department of Community and] Governor's Office of Economic
             1584      Development shall provide a taxpayer seeking to claim a tax credit under this section with a
             1585      copy of the form described in Subsection (1)(a)(ii).
             1586          (iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the form
             1587      received under Subsection (1)(a)(iii).
             1588          (b) There shall be allowed a nonrefundable tax credit equal to 20% of net expenditures
             1589      up to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made
             1590      by the taxpayer for establishing and operating recycling or composting technology in Utah,
             1591      with an annual maximum tax credit of $2,000.
             1592          (2) The total nonrefundable tax credit allowed under this section may not exceed 40%
             1593      of the Utah income tax liability of the taxpayer prior to any tax credits in the taxable year of
             1594      purchase prior to claiming the tax credit authorized by this section.
             1595          (3) (a) Any tax credit not used for the taxable year in which the purchase price on
             1596      composting or recycling machinery and equipment was paid may be carried over for credit
             1597      against the business' income taxes in the three succeeding taxable years until the total tax credit
             1598      amount is used.
             1599          (b) Tax credits not claimed by a business on the business' state income tax return
             1600      within three years are forfeited.
             1601          (4) The commission shall make rules governing what information shall be filed with
             1602      the commission to verify the entitlement to and amount of a tax credit.
             1603          (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after
             1604      January 1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection
             1605      (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
             1606      Section [ 9-2-413 ] 63-38f-413 .
             1607          (b) For a taxable year other than a taxable year during which the taxpayer may not
             1608      claim or carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim


             1609      or carry forward a tax credit described in Subsection (1)(a):
             1610          (i) if the taxpayer may claim or carry forward the tax credit in accordance with
             1611      Subsections (1) and (2); and
             1612          (ii) subject to Subsections (3) and (4).
             1613          (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January
             1614      1, 2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year
             1615      during which the taxpayer claims or carries forward a tax credit under Section [ 9-2-413 ]
             1616      63-38f-413 .
             1617          (7) A taxpayer may not claim or carry forward a tax credit available under this section
             1618      for a taxable year during which the taxpayer has claimed the targeted business income tax
             1619      credit available under Section [ 9-2-1803 ] 63-38f-503 .
             1620          Section 26. Section 59-10-108.7 is amended to read:
             1621           59-10-108.7. Recycling market development zones tax credit.
             1622          (1) For taxable years beginning on or after January 1, 1996, an individual in a recycling
             1623      market development zone as defined in Section [ 9-2-1602 ] 63-38f-1102 may claim a tax credit
             1624      as provided in this section.
             1625          (a) (i) There shall be allowed a nonrefundable tax credit of 5% of the purchase price
             1626      paid for machinery and equipment used directly in:
             1627          (A) commercial composting; or
             1628          (B) manufacturing facilities or plant units that:
             1629          (I) manufacture, process, compound, or produce recycled items of tangible personal
             1630      property for sale; or
             1631          (II) reduce or reuse postconsumer waste material.
             1632          (ii) The [Department of Community and] Governor's Office of Economic Development
             1633      shall certify that the machinery and equipment described in Subsection (1)(a)(i) are integral to
             1634      the composting or recycling process:
             1635          (A) on a form provided by the commission; and
             1636          (B) before a taxpayer is allowed a tax credit under this section.
             1637          (iii) The [Department of Community and] Governor's Office of Economic
             1638      Development shall provide a taxpayer seeking to claim a tax credit under this section with a
             1639      copy of the form described in Subsection (1)(a)(ii).


             1640          (iv) The taxpayer described in Subsection (1)(a)(iii) shall retain a copy of the form
             1641      received under Subsection (1)(a)(iii).
             1642          (b) There shall be allowed a nonrefundable tax credit equal to 20% of net expenditures
             1643      up to $10,000 to third parties for rent, wages, supplies, tools, test inventory, and utilities made
             1644      by the taxpayer for establishing and operating recycling or composting technology in Utah,
             1645      with an annual maximum tax credit of $2,000.
             1646          (2) The total nonrefundable tax credit allowed under this section may not exceed 40%
             1647      of the Utah income tax liability of the taxpayer prior to any tax credits in the taxable year of
             1648      purchase prior to claiming the tax credit authorized by this section.
             1649          (3) (a) Any tax credit not used for the taxable year in which the purchase price on
             1650      composting or recycling machinery and equipment was paid may be carried over for credit
             1651      against the individual's income taxes in the three succeeding taxable years until the total tax
             1652      credit amount is used.
             1653          (b) Tax credits not claimed by an individual on the individual's state income tax return
             1654      within three years are forfeited.
             1655          (4) The commission shall make rules governing what information shall be filed with
             1656      the commission to verify the entitlement to and amount of a tax credit.
             1657          (5) (a) Notwithstanding Subsection (1)(a), for taxable years beginning on or after
             1658      January 1, 2001, a taxpayer may not claim or carry forward a tax credit described in Subsection
             1659      (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
             1660      Section [ 9-2-413 ] 63-38f-413 .
             1661          (b) For a taxable year other than a taxable year during which the taxpayer may not
             1662      claim or carry forward a tax credit in accordance with Subsection (5)(a), a taxpayer may claim
             1663      or carry forward a tax credit described in Subsection (1)(a):
             1664          (i) if the taxpayer may claim or carry forward the tax credit in accordance with
             1665      Subsections (1) and (2); and
             1666          (ii) subject to Subsections (3) and (4).
             1667          (6) Notwithstanding Subsection (1)(b), for taxable years beginning on or after January
             1668      1, 2001, a taxpayer may not claim a tax credit described in Subsection (1)(b) in a taxable year
             1669      during which the taxpayer claims or carries forward a tax credit under Section [ 9-2-413 ]
             1670      63-38f-413 .


             1671          (7) A taxpayer may not claim or carry forward a tax credit available under this section
             1672      for a taxable year during which the taxpayer has claimed the targeted business income tax
             1673      credit available under Section [ 9-2-1803 ] 63-38f-503 .
             1674          Section 27. Section 59-21-2 is amended to read:
             1675           59-21-2. Definitions -- Mineral Bonus Account created -- Contents -- Use of
             1676      Mineral Bonus Account money -- Mineral Lease Account created -- Contents --
             1677      Appropriation of monies from Mineral Lease Account.
             1678          (1) As used in this section:
             1679          (a) "Acquired lands" is as defined in Section 53C-3-201 .
             1680          (b) "Acquired mineral interests" is as defined in Section 53C-3-201 .
             1681          (2) (a) The Mineral Bonus Account is created within the General Fund.
             1682          (b) The Mineral Bonus Account consists of federal mineral lease bonus payments
             1683      deposited pursuant to Subsection 59-21-1 (3).
             1684          (c) The Legislature shall make appropriations from the Mineral Bonus Account in
             1685      accordance with Section 35 of the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 191.
             1686          (d) The state treasurer shall:
             1687          (i) invest the money in the Mineral Bonus Account by following the procedures and
             1688      requirements of Title 51, Chapter 7, State Money Management Act; and
             1689          (ii) deposit all interest or other earnings derived from the account into the Mineral
             1690      Bonus Account.
             1691          (3) (a) The Mineral Lease Account is created within the General Fund.
             1692          (b) The Mineral Lease Account consists of:
             1693          (i) federal mineral lease money deposited pursuant to Subsection 59-21-1 (1); and
             1694          (ii) rentals and royalties from the lease of the following deposited pursuant to Section
             1695      53C-3-202 :
             1696          (A) minerals on acquired lands; or
             1697          (B) acquired mineral interests.
             1698          (c) The Legislature shall make appropriations from the Mineral Lease Account as
             1699      provided in Subsection 59-21-1 (1) and this Subsection (3).
             1700          (d) The Legislature shall annually appropriate 32.5% of all deposits made to the
             1701      Mineral Lease Account to the Permanent Community Impact Fund established by Section


             1702      9-4-303 .
             1703          (e) The Legislature shall annually appropriate 2.25% of all deposits made to the
             1704      Mineral Lease Account to the State Board of Education, to be used for education research and
             1705      experimentation in the use of staff and facilities designed to improve the quality of education in
             1706      Utah.
             1707          (f) The Legislature shall annually appropriate 2.25% of all deposits made to the
             1708      Mineral Lease Account to the Utah Geological Survey, to be used for activities carried on by
             1709      the survey having as a purpose the development and exploitation of natural resources in the
             1710      state.
             1711          (g) The Legislature shall annually appropriate 2.25% of all deposits made to the
             1712      Mineral Lease Account to the Water Research Laboratory at Utah State University, to be used
             1713      for activities carried on by the laboratory having as a purpose the development and exploitation
             1714      of water resources in the state.
             1715          (h) (i) The Legislature shall annually appropriate to the Department of Transportation
             1716      40% of all deposits made to the Mineral Lease Account to be distributed as provided in
             1717      Subsection (3)(h)(ii) to:
             1718          (A) counties;
             1719          (B) special service districts established:
             1720          (I) by counties;
             1721          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             1722          (III) for the purpose of constructing, repairing, or maintaining roads; or
             1723          (C) special service districts established:
             1724          (I) by counties;
             1725          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             1726          (III) for other purposes authorized by statute.
             1727          (ii) The Department of Transportation shall allocate the funds specified in Subsection
             1728      (3)(h)(i):
             1729          (A) in amounts proportionate to the amount of mineral lease money generated by each
             1730      county; and
             1731          (B) to a county or special service district established by a county under Title 17A,
             1732      Chapter 2, Part 13, Utah Special Service District Act, as determined by the county legislative


             1733      body.
             1734          (i) (i) The Legislature shall annually appropriate 5% of all deposits made to the
             1735      Mineral Lease Account to the Department of Community and [Economic Development]
             1736      Culture to be distributed to:
             1737          (A) special service districts established:
             1738          (I) by counties;
             1739          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             1740          (III) for the purpose of constructing, repairing, or maintaining roads; or
             1741          (B) special service districts established:
             1742          (I) by counties;
             1743          (II) under Title 17A, Chapter 2, Part 13, Utah Special Service District Act; and
             1744          (III) for other purposes authorized by statute.
             1745          (ii) The Department of Community and [Economic Development] Culture may
             1746      distribute the amounts described in Subsection (3)(i)(i) only to special service districts
             1747      established under Title 17A, Chapter 2, Part 13, Utah Special Service District Act, by counties:
             1748          (A) of the third, fourth, fifth, or sixth class;
             1749          (B) in which 4.5% or less of the mineral lease moneys within the state are generated;
             1750      and
             1751          (C) that are significantly socially or economically impacted as provided in Subsection
             1752      (3)(i)(iii) by the development of:
             1753          (I) minerals under the Mineral Lands Leasing Act, 30 U.S.C. Sec. 181 et seq.;
             1754          (II) minerals on acquired lands; or
             1755          (III) acquired mineral interests.
             1756          (iii) The significant social or economic impact required under Subsection (3)(i)(ii)(C)
             1757      shall be as a result of:
             1758          (A) the transportation within the county of hydrocarbons, including solid hydrocarbons
             1759      as defined in Section 59-5-101 ;
             1760          (B) the employment of persons residing within the county in hydrocarbon extraction,
             1761      including the extraction of solid hydrocarbons as defined in Section 59-5-101 ; or
             1762          (C) a combination of Subsections (3)(i)(iii)(A) and (B).
             1763          (iv) For purposes of distributing the appropriations under this Subsection (3)(i) to


             1764      special service districts established by counties under Title 17A, Chapter 2, Part 13, Utah
             1765      Special Service District Act, the Department of Community and [Economic Development]
             1766      Culture shall:
             1767          (A) (I) allocate 50% of the appropriations equally among the counties meeting the
             1768      requirements of Subsections (3)(i)(ii) and (iii); and
             1769          (II) allocate 50% of the appropriations based on the ratio that the population of each
             1770      county meeting the requirements of Subsections (3)(i)(ii) and (iii) bears to the total population
             1771      of all of the counties meeting the requirements of Subsections (3)(i)(ii) and (iii); and
             1772          (B) after making the allocations described in Subsection (3)(i)(iv)(A), distribute the
             1773      allocated revenues to special service districts established by the counties under Title 17A,
             1774      Chapter 2, Part 13, Utah Special Service District Act, as determined by the executive director
             1775      of the Department of Community and [Economic Development] Culture after consulting with
             1776      the county legislative bodies of the counties meeting the requirements of Subsections (3)(i)(ii)
             1777      and (iii).
             1778          (v) The executive director of the Department of Community and [Economic
             1779      Development] Culture:
             1780          (A) shall determine whether a county meets the requirements of Subsections (3)(i)(ii)
             1781      and (iii);
             1782          (B) shall distribute the appropriations under Subsection (3)(i)(i) to special service
             1783      districts established by counties under Title 17A, Chapter 2, Part 13, Utah Special Service
             1784      District Act, that meet the requirements of Subsections (3)(i)(ii) and (iii); and
             1785          (C) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             1786      may make rules:
             1787          (I) providing a procedure for making the distributions under this Subsection (3)(i) to
             1788      special service districts; and
             1789          (II) defining the term "population" for purposes of Subsection (3)(i)(iv).
             1790          (j) (i) The Legislature shall annually make the following appropriations from the
             1791      Mineral Lease Account:
             1792          (A) an amount equal to 52 cents multiplied by the number of acres of school or
             1793      institutional trust lands, lands owned by the Division of Parks and Recreation, and lands owned
             1794      by the Division of Wildlife Resources that are not under an in lieu of taxes contract, to each


             1795      county in which those lands are located;
             1796          (B) to each county in which school or institutional trust lands are transferred to the
             1797      federal government after December 31, 1992, an amount equal to the number of transferred
             1798      acres in the county multiplied by a payment per acre equal to the difference between 52 cents
             1799      per acre and the per acre payment made to that county in the most recent payment under the
             1800      federal payment in lieu of taxes program, 31 U.S.C. Sec. 6901 et seq., unless the federal
             1801      payment was equal to or exceeded the 52 cents per acre, in which case a payment under this
             1802      Subsection (3)(j)(i)(B) may not be made for the transferred lands;
             1803          (C) to each county in which federal lands, which are entitlement lands under the federal
             1804      in lieu of taxes program, are transferred to the school or institutional trust, an amount equal to
             1805      the number of transferred acres in the county multiplied by a payment per acre equal to the
             1806      difference between the most recent per acre payment made under the federal payment in lieu of
             1807      taxes program and 52 cents per acre, unless the federal payment was equal to or less than 52
             1808      cents per acre, in which case a payment under this Subsection (3)(j)(i)(C) may not be made for
             1809      the transferred land; and
             1810          (D) to a county of the fifth or sixth class, an amount equal to the product of:
             1811          (I) $1,000; and
             1812          (II) the number of residences described in Subsection (3)(j)(iv) that are located within
             1813      the county.
             1814          (ii) A county receiving money under Subsection (3)(j)(i) may, as determined by the
             1815      county legislative body, distribute the money or a portion of the money to:
             1816          (A) special service districts established by the county under Title 17A, Chapter 2, Part
             1817      13, Utah Special Service District Act;
             1818          (B) school districts; or
             1819          (C) public institutions of higher education.
             1820          (iii) (A) Beginning in fiscal year 1994-95 and in each year after fiscal year 1994-95, the
             1821      Division of Finance shall increase or decrease the amounts per acre provided for in Subsections
             1822      (3)(j)(i)(A) through (C) by the average annual change in the Consumer Price Index for all urban
             1823      consumers published by the Department of Labor.
             1824          (B) For fiscal years beginning on or after fiscal year 2001-02, the Division of Finance
             1825      shall increase or decrease the amount described in Subsection (3)(j)(i)(D)(I) by the average


             1826      annual change in the Consumer Price Index for all urban consumers published by the
             1827      Department of Labor.
             1828          (iv) Residences for purposes of Subsection (3)(j)(i)(D)(II) are residences that are:
             1829          (A) owned by:
             1830          (I) the Division of Parks and Recreation; or
             1831          (II) the Division of Wildlife Resources;
             1832          (B) located on lands that are owned by:
             1833          (I) the Division of Parks and Recreation; or
             1834          (II) the Division of Wildlife Resources; and
             1835          (C) are not subject to taxation under:
             1836          (I) Chapter 2, Property Tax Act; or
             1837          (II) Chapter 4, Privilege Tax.
             1838          (k) The Legislature shall annually appropriate to the Permanent Community Impact
             1839      Fund all deposits remaining in the Mineral Lease Account after making the appropriations
             1840      provided for in Subsections (3)(d) through (j).
             1841          (4) (a) Each agency, board, institution of higher education, and political subdivision
             1842      receiving money under this chapter shall provide the Legislature, through the Office of the
             1843      Legislative Fiscal Analyst, with a complete accounting of the use of that money on an annual
             1844      basis.
             1845          (b) The accounting required under Subsection (4)(a) shall:
             1846          (i) include actual expenditures for the prior fiscal year, budgeted expenditures for the
             1847      current fiscal year, and planned expenditures for the following fiscal year; and
             1848          (ii) be reviewed by the Economic Development and Human Resources Appropriation
             1849      Subcommittee as part of its normal budgetary process under Title 63, Chapter 38, Budgetary
             1850      Procedures Act.
             1851          Section 28. Section 63-5b-102 is amended to read:
             1852           63-5b-102. Definitions.
             1853          (1) (a) "Absent" means:
             1854          (i) not physically present or not able to be communicated with for 48 hours; or
             1855          (ii) for local government officers, as defined by local ordinances.
             1856          (b) "Absent" does not include a person who can be communicated with via telephone,


             1857      radio, or telecommunications.
             1858          (2) "Attack" means a nuclear, conventional, biological, or chemical warfare action
             1859      against the United States of America or this state.
             1860          (3) "Department" means the Department of Administrative Services, the Department of
             1861      Agriculture and Food, the Alcoholic Beverage Control Commission, the Department of
             1862      Commerce, the Department of Community and [Economic Development] Culture, the
             1863      Department of Corrections, the Department of Environmental Quality, the Department of
             1864      Financial Institutions, the Department of Health, the Department of Human Resource
             1865      Management, the Department of Workforce Services, the Labor Commission, the National
             1866      Guard, the Department of Insurance, the Department of Natural Resources, the Department of
             1867      Public Safety, the Public Service Commission, the Department of Human Services, the State
             1868      Tax Commission, the Department of Transportation, any other major administrative
             1869      subdivisions of state government, the State Board of Education, the State Board of Regents, the
             1870      Utah Housing Corporation, the Utah Technology Finance Corporation, the Workers'
             1871      Compensation Fund, the State Retirement Board, and each institution of higher education
             1872      within the system of higher education.
             1873          (4) "Disaster" means a situation causing, or threatening to cause, widespread damage,
             1874      social disruption, or injury or loss of life or property resulting from attack, internal disturbance,
             1875      natural phenomenon, or technological hazard.
             1876          (5) "Division" means the Division of Emergency Services and Homeland Security
             1877      established in Title 53, Chapter 2, Part 1, Emergency Services and Homeland Security Act.
             1878          (6) "Emergency interim successor" means a person designated by this chapter to
             1879      exercise the powers and discharge the duties of an office when the person legally exercising the
             1880      powers and duties of the office is unavailable.
             1881          (7) "Executive director" means the person with ultimate responsibility for managing
             1882      and overseeing the operations of each department, however denominated.
             1883          (8) "Internal disturbance" means a riot, prison break, disruptive terrorism, or strike.
             1884          (9) "Natural phenomenon" means any earthquake, tornado, storm, flood, landslide,
             1885      avalanche, forest or range fire, drought, epidemic, or other catastrophic event.
             1886          (10) (a) "Office" includes all state and local offices, the powers and duties of which are
             1887      defined by constitution, statutes, charters, optional plans, ordinances, articles, or by-laws.


             1888          (b) "Office" does not include the office of governor or the legislative or judicial offices.
             1889          (11) "Place of governance" means the physical location where the powers of an office
             1890      are being exercised.
             1891          (12) "Political subdivision" includes counties, cities, towns, townships, districts,
             1892      authorities, and other public corporations and entities whether organized and existing under
             1893      charter or general law.
             1894          (13) "Political subdivision officer" means a person holding an office in a political
             1895      subdivision.
             1896          (14) "State officer" means the attorney general, the state treasurer, the state auditor, and
             1897      the executive director of each department.
             1898          (15) "Technological hazard" means any hazardous materials accident, mine accident,
             1899      train derailment, air crash, radiation incident, pollution, structural fire, or explosion.
             1900          (16) "Unavailable" means:
             1901          (a) absent from the place of governance during a disaster that seriously disrupts normal
             1902      governmental operations, whether or not that absence or inability would give rise to a vacancy
             1903      under existing constitutional or statutory provisions; or
             1904          (b) as otherwise defined by local ordinance.
             1905          Section 29. Section 63-38d-502 is amended to read:
             1906           63-38d-502. Membership -- Terms -- Chair -- Expenses.
             1907          (1) The Resource Development Coordinating Committee shall consist of the following
             1908      25 members:
             1909          (a) the state science advisor;
             1910          (b) a representative from the Department of Agriculture and Food appointed by the
             1911      executive director;
             1912          (c) a representative from the Department of Community and [Economic Development]
             1913      Culture appointed by the executive director;
             1914          (d) a representative from the Department of Environmental Quality appointed by the
             1915      executive director;
             1916          (e) a representative from the Department of Natural Resources appointed by the
             1917      executive director;
             1918          (f) a representative from the Department of Transportation appointed by the executive


             1919      director;
             1920          (g) a representative from the [Division of Business and] Governor's Office of
             1921      Economic Development appointed by the director;
             1922          (h) a representative from the Division of Housing and Community Development
             1923      appointed by the director;
             1924          (i) a representative from the Division of State History appointed by the director;
             1925          (j) a representative from the Division of Air Quality appointed by the director;
             1926          (k) a representative from the Division of Drinking Water appointed by the director;
             1927          (l) a representative from the Division of Environmental Response and Remediation
             1928      appointed by the director;
             1929          (m) a representative from the Division of Radiation appointed by the director;
             1930          (n) a representative from the Division of Solid and Hazardous Waste appointed by the
             1931      director;
             1932          (o) a representative from the Division of Water Quality appointed by the director;
             1933          (p) a representative from the Division of Oil, Gas, and Mining appointed by the
             1934      director;
             1935          (q) a representative from the Division of Parks and Recreation appointed by the
             1936      director;
             1937          (r) a representative from the Division of Forestry, Fire and State Lands appointed by
             1938      the director;
             1939          (s) a representative from the Utah Geological Survey appointed by the director;
             1940          (t) a representative from the Division of Water Resources appointed by the director;
             1941          (u) a representative from the Division of Water Rights appointed by the director;
             1942          (v) a representative from the Division of Wildlife Resources appointed by the director;
             1943          (w) a representative from the School and Institutional Trust Lands Administration
             1944      appointed by the director;
             1945          (x) a representative from the Division of Facilities Construction and Management
             1946      appointed by the director; and
             1947          (y) a representative from the Division of Emergency Services and Homeland Security
             1948      appointed by the director.
             1949          (2) (a) As particular issues require, the committee may, by majority vote of the


             1950      members present, and with the concurrence of the state planning coordinator, appoint
             1951      additional temporary members to serve as ex officio voting members.
             1952          (b) Those ex officio members may discuss and vote on the issue or issues for which
             1953      they were appointed.
             1954          (3) A chair shall be selected by a majority vote of committee members with the
             1955      concurrence of the state planning coordinator.
             1956          (4) (a) (i) Members who are not government employees shall receive no compensation
             1957      or benefits for their services, but may receive per diem and expenses incurred in the
             1958      performance of the member's official duties at the rates established by the Division of Finance
             1959      under Sections 63A-3-106 and 63A-3-107 .
             1960          (ii) Members may decline to receive per diem and expenses for their service.
             1961          (b) (i) State government officer and employee members who do not receive salary, per
             1962      diem, or expenses from their agency for their service may receive per diem and expenses
             1963      incurred in the performance of their official duties from the council at the rates established by
             1964      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             1965          (ii) State government officer and employee members may decline to receive per diem
             1966      and expenses for their service.
             1967          Section 30. Section 63-38f-101 , which is renumbered from Section 9-2-201 is
             1968      renumbered and amended to read:
             1969     
CHAPTER 38f. GOVERNOR'S OFFICE OF ECONOMIC DEVELOPMENT

             1970     
Part 1. General Provisions

             1971           [9-2-201].     63-38f-101. Title.
             1972          This [part] chapter is known as the "[Business and] Governor's Office of Economic
             1973      Development [Act]."
             1974          Section 31. Section 63-38f-102 , which is renumbered from Section 9-2-102 is
             1975      renumbered and amended to read:
             1976           [9-2-102].     63-38f-102. Definitions.
             1977          As used in this chapter:
             1978          (1) "Board" means the Board of Business and Economic Development.
             1979          (2) "Director" means the director of the [division] office.
             1980          (3) ["Division"] "Office" means the [Division of Business and] Governor's Office of


             1981      Economic Development.
             1982          Section 32. Section 63-38f-201 is enacted to read:
             1983          63-38f-201. Creation of office.
             1984          (1) There is created the Governor's Office of Economic Development.
             1985          (2) The office shall:
             1986          (a) be responsible for economic development within the state;
             1987          (b) perform economic development planning for the state;
             1988          (c) administer and coordinate all state or federal grant programs which are, or become
             1989      available, for economic development;
             1990          (d) administer any other programs over which the office is given administrative
             1991      supervision by the governor;
             1992          (e) annually submit a report to the Legislature by October 1; and
             1993          (f) perform any other duties as provided by the Legislature.
             1994          (3) The office may solicit and accept contributions of moneys, services, and facilities
             1995      from any other source, public or private, but may not use the moneys for publicizing the
             1996      exclusive interest of the donor.
             1997          (4) Moneys received under Subsection (3) shall be deposited in the General Fund as
             1998      dedicated credits of the office.
             1999          Section 33. Section 63-38f-202 , which is renumbered from Section 9-1-204 is
             2000      renumbered and amended to read:
             2001           [9-1-204].     63-38f-202. Director of office -- Appointment -- Removal --
             2002      Compensation.
             2003          (1) The [department] office shall be administered, directed, controlled, organized, and
             2004      managed by [an executive] a director appointed by the governor [with the consent of the
             2005      Senate].
             2006          (2) The [executive] director [shall serve] serves at the pleasure of the governor [and is
             2007      subject to removal by the governor with or without cause].
             2008          (3) The salary of the [executive] director shall be established by the governor within
             2009      the salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
             2010          Section 34. Section 63-38f-203 , which is renumbered from Section 9-1-205 is
             2011      renumbered and amended to read:


             2012           [9-1-205].     63-38f-203. Powers and duties of director.
             2013          (1) The [executive] director, with the approval of the governor, may:
             2014          (a) by following the procedures and requirements of Title 63, Chapter 38e, Federal
             2015      Funds Procedures, seek federal grants, loans, or participation in federal programs;
             2016          (b) enter into lawful contracts or agreements with other states, any chamber of
             2017      commerce organization, and any service club; and
             2018          (c) annually prepare and submit to the governor a budget of the [department's] office's
             2019      financial requirements.
             2020          (2) If any federal program requires the expenditure of state funds as a condition to
             2021      participation by the state in any fund, property, or service, with the governor's approval, the
             2022      [executive] director shall expend whatever funds are necessary out of the money provided by
             2023      the Legislature for the use of the [department] office.
             2024          Section 35. Section 63-38f-204 , which is renumbered from Section 9-1-206 is
             2025      renumbered and amended to read:
             2026           [9-1-206].     63-38f-204. Organization of office -- Jurisdiction of director.
             2027          [(1) The chief administrative officer of each division within the department shall be a
             2028      director appointed by the executive director.]
             2029          [(a) Each division director shall serve at the pleasure of the executive director and may
             2030      be removed by the executive director after consultation with the respective board.]
             2031          [(b) Each director shall receive compensation as provided in Title 67, Chapter 19, Utah
             2032      State Personnel Management Act.]
             2033          [(2)] (1) Unless otherwise expressly provided by statute, the [executive] director may
             2034      organize the [department] office in any fashion [he considers] considered appropriate,
             2035      including the appointment of deputy directors of the [department to act as division directors or
             2036      as supervisors over two or more divisions] office.
             2037          [(3) The executive director shall have administrative jurisdiction over each division
             2038      director for the purpose of implementing the policy promulgated by the policy-making board of
             2039      each division.]
             2040          (2) The [executive] director may make consolidations of personnel and service
             2041      functions [in the respective divisions] to effectuate efficiency and economy within the
             2042      [department] office.


             2043          Section 36. Section 63-38f-205 , which is renumbered from Section 9-1-207 is
             2044      renumbered and amended to read:
             2045           [9-1-207].     63-38f-205. Interface with Public Service Commission.
             2046          (1) The [executive] director or [his] the director's designee shall:
             2047          (a) become generally informed of significant rate cases and policy proceedings before
             2048      the Public Service Commission; and
             2049          (b) monitor and study the potential economic development impact of these proceedings
             2050      before the Public Service Commission.
             2051          (2) In the discretion of the [executive] director or [his] the director's designee, the
             2052      [department] office may appear in any proceeding before the Public Service Commission to
             2053      testify, advise, or present argument regarding the economic development impact of any matter
             2054      that is the subject of the proceeding.
             2055          Section 37. Section 63-38f-301 , which is renumbered from Section 9-2-202 is
             2056      renumbered and amended to read:
             2057           [9-2-202].     63-38f-301. Board of Business and Economic Development.
             2058          [(1)] There is created within the [department] office the Board of Business and
             2059      Economic Development which shall advise the [division] office.
             2060          [(2) The board shall assume all of the functions, powers, duties, rights, and
             2061      responsibilities of the Utah State Industrial Promotion Commission together with all functions,
             2062      powers, duties, rights, and responsibilities granted to the board by this part, except for those
             2063      that are administrative in nature which the division shall assume.]
             2064          Section 38. Section 63-38f-302 , which is renumbered from Section 9-2-203 is
             2065      renumbered and amended to read:
             2066           [9-2-203].     63-38f-302. Members -- Meetings -- Expenses.
             2067          (1) (a) The board shall consist of 15 members appointed by the governor to four-year
             2068      terms of office with the consent of the Senate.
             2069          (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
             2070      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             2071      board members are staggered so that approximately half of the board is appointed every two
             2072      years.
             2073          (c) The members may not serve more than two full consecutive terms except where the


             2074      governor determines that an additional term is in the best interest of the state.
             2075          (2) Not more than eight members of the board may be from one political party.
             2076          (3) The members shall be representative of all areas of the state.
             2077          (4) When a vacancy occurs in the membership for any reason, the replacement shall be
             2078      appointed for the unexpired term.
             2079          (5) Eight members of the board constitute a quorum for conducting board business and
             2080      exercising board power.
             2081          (6) The governor shall select one of the board members as its chair.
             2082          (7) (a) Members shall receive no compensation or benefits for their services, but may
             2083      receive per diem and expenses incurred in the performance of the member's official duties at
             2084      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2085          (b) Members may decline to receive per diem and expenses for their service.
             2086          Section 39. Section 63-38f-303 , which is renumbered from Section 9-2-204 is
             2087      renumbered and amended to read:
             2088           [9-2-204].     63-38f-303. Board duties and powers.
             2089          (1) The board shall:
             2090          (a) promote and encourage the economic, commercial, financial, industrial,
             2091      agricultural, and civic welfare of the state;
             2092          (b) do all lawful acts for the development, attraction, and retention of businesses,
             2093      industries, and commerce within the state;
             2094          (c) promote and encourage the expansion and retention of businesses, industries, and
             2095      commerce located in the state;
             2096          (d) support the efforts of local government and regional nonprofit economic
             2097      development organizations to encourage expansion or retention of businesses, industries, and
             2098      commerce located in the state;
             2099          (e) do other acts not specifically enumerated in this [part] chapter, if the acts are for the
             2100      betterment of the economy of the state;
             2101          (f) work in conjunction with companies and individuals located or doing business
             2102      within the state to secure favorable rates, fares, tolls, charges, and classification for
             2103      transportation of persons or property by:
             2104          (i) railroad;


             2105          (ii) motor carrier; or
             2106          (iii) other common carriers;
             2107          (g) recommend policies, priorities, and objectives to the [division] office regarding the
             2108      assistance, retention, or recruitment of business, industries, and commerce in the state; and
             2109          (h) [ensure that] recommend how any money or program administered by the
             2110      [department] office or its divisions for the assistance, retention, or recruitment of businesses,
             2111      industries, and commerce in the state shall be administered, so that the money or program is
             2112      equitably available to all areas of the state unless federal or state law requires or authorizes the
             2113      geographic location of a recipient of the money or program to be considered in the distribution
             2114      of the money or administration of the program.
             2115          (2) The board may[: (a)], in furtherance of the authority granted under Subsection
             2116      (1)(f), appear as a party litigant on behalf of individuals or companies located or doing business
             2117      within the state in proceedings before regulatory commissions of the state, other states, or the
             2118      federal government having jurisdiction over such matters[; and].
             2119          [(b) make, amend, or revoke rules for the conduct of its business not inconsistent with
             2120      this part and in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.]
             2121          Section 40. Section 63-38f-304 , which is renumbered from Section 9-2-205 is
             2122      renumbered and amended to read:
             2123           [9-2-205].     63-38f-304. Governor's Office of Economic Development -- Powers
             2124      and duties of office -- Consulting with board on funds or services provided by office.
             2125          (1) For the purposes of this section:
             2126          (a) "National recruitment" means the recruitment to the state of business, industry, or
             2127      commerce if, at the time of the recruitment, the business, industry, or commerce is principally
             2128      located in the United States.
             2129          (b) "Private entity" means a private person, corporation, company, or organization.
             2130          [(2) There is created within the department the Division of Business and Economic
             2131      Development under the administration and general supervision of the executive director or a
             2132      designee of the executive director.]
             2133          [(3)] (2) (a) The [division] office shall obtain the advice [and concurrence] of the board
             2134      prior to an imposition of or change to a policy, priority, or objective[, or rule] under which the
             2135      [division] office operates.


             2136          (b) Subsection [(3)] (2)(a) does not apply to the routine administration by the
             2137      [department or division of] office of funds or services related to assistance, retention, or
             2138      recruitment of business, industry, or commerce in this state.
             2139          [(4)] (3) The [division] office shall:
             2140          (a) be the industrial promotion authority of the state;
             2141          (b) promote and encourage the economic, commercial, financial, industrial,
             2142      agricultural, and civic welfare of the state;
             2143          (c) do all lawful acts to create, develop, attract, and retain business, industry, and
             2144      commerce within the state; and
             2145          (d) do other acts that enhance the economy of the state.
             2146          [(5)] (4) The [division] office may[, subject to Subsection (6) and the approval of the
             2147      board]:
             2148          (a) enter into contracts or agreements with, or make grants to, public or private entities,
             2149      including municipalities, in the furtherance of its duties where the contracts or agreements are
             2150      not in violation of the Constitution or statutes of the state; and
             2151          (b) receive and expend funds available from any source, public or private, in any
             2152      manner and for any lawful purpose in the best interest of the state in the discharge of their
             2153      obligations under this part.
             2154          [(6) (a) Beginning on May 3, 1999, the department or division may enter into or renew
             2155      a contract or agreement with or make a grant to a private entity under which the private entity
             2156      engages in national recruitment only if the sole activity of the private entity is national
             2157      recruitment.]
             2158          [(b) In determining whether a private entity engages in activity other than national
             2159      recruitment, the department or division shall consider all activities of the private entity
             2160      regardless of whether the activities are funded by the department or division.]
             2161          [(7)] (5) The [executive director and the] director or the director's designee shall
             2162      consult with the board at each meeting of the board regarding the administration by the
             2163      [department or the division] office of funds or services related to assistance, retention, or
             2164      recruitment of business, industry, or commerce in the state.
             2165          Section 41. Section 63-38f-401 , which is renumbered from Section 9-2-401 is
             2166      renumbered and amended to read:


             2167     
Part 4. Enterprise Zone Act

             2168           [9-2-401].     63-38f-401. Title.
             2169          This part is known as the "Enterprise Zone Act."
             2170          Section 42. Section 63-38f-402 , which is renumbered from Section 9-2-402 is
             2171      renumbered and amended to read:
             2172           [9-2-402].     63-38f-402. Definitions.
             2173      As used in this part:
             2174          (1) "County applicant" means the governing authority of a county that meets the
             2175      requirements for designation as an enterprise zone under Section [ 9-2-404 ] 63-38f-404 .
             2176          (2) "Municipal applicant" means the governing authority of a city or town that meets
             2177      the requirements for designation as an enterprise zone under Section [ 9-2-404 ] 63-38f-404 .
             2178          (3) "Tax incentives" or "tax benefits" means the tax credits available under Section
             2179      [ 9-2-413 ] 63-38f-413 .
             2180          Section 43. Section 63-38f-403 , which is renumbered from Section 9-2-403 is
             2181      renumbered and amended to read:
             2182           [9-2-403].     63-38f-403. Powers of the office.
             2183          The [department] office shall:
             2184          (1) monitor the implementation and operation of this part and conduct a continuing
             2185      evaluation of the progress made in the enterprise zones;
             2186          (2) evaluate an application from a county applicant or a municipal applicant to be
             2187      designated an enterprise zone and determine if the applicant qualifies for that designation;
             2188          (3) provide technical assistance to county applicants and municipal applicants in
             2189      developing applications for designation as enterprise zones;
             2190          (4) assist county applicants and municipal applicants designated as enterprise zones in
             2191      obtaining assistance from the federal government and agencies of the state;
             2192          (5) assist a qualified business in obtaining the benefits of an incentive or inducement
             2193      program authorized by this part; and
             2194          (6) prepare an annual evaluation based, in part, on data provided by the State Tax
             2195      Commission:
             2196          (a) evaluating the effectiveness of the program and any suggestions for legislation; and
             2197          (b) that is available upon request to the governor and to the Revenue and Taxation


             2198      Interim Committee of the Legislature [on or before] by November 1 of each year.
             2199          Section 44. Section 63-38f-404 , which is renumbered from Section 9-2-404 is
             2200      renumbered and amended to read:
             2201           [9-2-404].     63-38f-404. Criteria for designation of enterprise zones --
             2202      Application.
             2203          (1) A county applicant seeking designation as an enterprise zone shall file an
             2204      application with the [department] office that, in addition to complying with other requirements
             2205      of this part:
             2206          (a) verifies that the entire county is not located in a metropolitan statistical area that is
             2207      entirely located within Utah, except that this requirement does not apply to a third, fourth, fifth,
             2208      or sixth class county as classified under Section 17-50-501 ;
             2209          (b) verifies that the county has a population of 50,000 or less; and
             2210          (c) provides clear evidence of the need for development in the county.
             2211          (2) A municipal applicant seeking designation as an enterprise zone shall file an
             2212      application with the [department] office that, in addition to complying with other requirements
             2213      of this part:
             2214          (a) verifies that the municipality is a city of the fifth class or a town;
             2215          (b) verifies that the municipality is within a county that has a population of 50,000 or
             2216      less; and
             2217          (c) provides clear evidence of the need for development in the municipality.
             2218          (3) An application filed under Subsection (1) or (2) shall be in a form and in
             2219      accordance with procedures approved by the [department] office, and shall include the
             2220      following information:
             2221          (a) a plan developed by the county applicant or municipal applicant that identifies local
             2222      contributions meeting the requirements of Section [ 9-2-405 ] 63-38f-405 ;
             2223          (b) the county applicant or municipal applicant has a development plan that outlines:
             2224          (i) the types of investment and development within the zone that the county applicant
             2225      or municipal applicant expects to take place if the incentives specified in this part are provided;
             2226          (ii) the specific investment or development reasonably expected to take place;
             2227          (iii) any commitments obtained from businesses;
             2228          (iv) the projected number of jobs that will be created and the anticipated wage level of


             2229      those jobs;
             2230          (v) any proposed emphasis on the type of jobs created, including any affirmative action
             2231      plans; and
             2232          (vi) a copy of the county applicant's or municipal applicant's economic development
             2233      plan to demonstrate coordination between the zone and overall county or municipal goals;
             2234          (c) the county applicant's or municipal applicant's proposed means of assessing the
             2235      effectiveness of the development plan or other programs to be implemented within the zone
             2236      once they have been implemented;
             2237          (d) any additional information required by the [department] office; and
             2238          (e) any additional information the county applicant or municipal applicant considers
             2239      relevant to its designation as an enterprise zone.
             2240          Section 45. Section 63-38f-405 , which is renumbered from Section 9-2-405 is
             2241      renumbered and amended to read:
             2242           [9-2-405].     63-38f-405. Qualifying local contributions.
             2243          (1) An area may be designated as an enterprise zone only if the county applicant or
             2244      municipal applicant agrees to make a qualifying local contribution.
             2245          (2) The qualifying local contribution may vary depending on available resources, and
             2246      may include such elements as:
             2247          (a) simplified procedures for obtaining permits;
             2248          (b) dedication of available government grants;
             2249          (c) dedication of training funds;
             2250          (d) waiver of business license fees;
             2251          (e) infrastructure improvements;
             2252          (f) private contributions;
             2253          (g) utility rate concessions;
             2254          (h) small business incubator programs; or
             2255          (i) management assistance programs.
             2256          Section 46. Section 63-38f-406 , which is renumbered from Section 9-2-406 is
             2257      renumbered and amended to read:
             2258           [9-2-406].     63-38f-406. Eligibility review.
             2259          (1) (a) The [department] office shall review and evaluate the applications submitted


             2260      under Section [ 9-2-404 ] 63-38f-404 and shall determine whether each county applicant or
             2261      municipal applicant is eligible for designation as an enterprise zone.
             2262          (b) In determining whether a county applicant or municipal applicant is eligible, if
             2263      unemployment, income, population, or other necessary data are not available for the county
             2264      applicant or municipal applicant from the federal departments of labor or commerce or a state
             2265      agency, the [department] office may rely upon other data submitted by the applicant, if the
             2266      [department] office determines that it is statistically reliable or accurate.
             2267          (2) (a) The [department] office shall designate enterprise zones.
             2268          (b) The [department] office shall consider and evaluate an application using the
             2269      following criteria:
             2270          [(a)] (i) the pervasiveness of poverty, unemployment, and general distress in the
             2271      proposed zone;
             2272          [(b)] (ii) the extent of chronic abandonment, deterioration, or reduction in value of
             2273      commercial, industrial, or residential structures in the proposed zone, and the extent of property
             2274      tax arrearages in the proposed zone;
             2275          [(c)] (iii) the potential for new investment and economic development in the proposed
             2276      zone;
             2277          [(d)] (iv) the county applicant's or municipal applicant's proposed use of other state and
             2278      federal development funds or programs to increase the probability of new investment and
             2279      development occurring;
             2280          [(e)] (v) the extent to which the projected development in the zone will provide
             2281      employment to residents of the county and particularly individuals who are unemployed or who
             2282      are economically disadvantaged;
             2283          [(f)] (vi) the degree to which the county applicant's or municipal applicant's application
             2284      promotes innovative solutions to economic development problems and demonstrates local
             2285      initiative; and
             2286          [(g)] (vii) other relevant factors that the [department] office specifies in its
             2287      recommendation.    
             2288          Section 47. Section 63-38f-407 , which is renumbered from Section 9-2-407 is
             2289      renumbered and amended to read:
             2290           [9-2-407].     63-38f-407. Quarterly consideration.


             2291          The [department] office shall consider designating enterprise zones quarterly.
             2292          Section 48. Section 63-38f-408 , which is renumbered from Section 9-2-408 is
             2293      renumbered and amended to read:
             2294           [9-2-408].     63-38f-408. Duration of designation.
             2295          Each enterprise zone has a duration of five years, at the end of which the county may
             2296      reapply for the designation.
             2297          Section 49. Section 63-38f-409 , which is renumbered from Section 9-2-409 is
             2298      renumbered and amended to read:
             2299           [9-2-409].     63-38f-409. Contingent designations.
             2300          (1) The [department] office may accept applications for, and may at any time grant, a
             2301      contingent designation of any county as an enterprise zone for purposes of seeking a
             2302      designation of the county as a federally designated zone.
             2303          (2) This designation does not entitle a business operating in that county to the tax
             2304      incentives under this part.
             2305          Section 50. Section 63-38f-410 , which is renumbered from Section 9-2-410 is
             2306      renumbered and amended to read:
             2307           [9-2-410].     63-38f-410. Revocation of designations.
             2308          (1) The [department] office may revoke the designation of an enterprise zone, if no
             2309      businesses utilize the tax incentives during any calendar year.
             2310          (2) Prior to that action, the [department] office shall conduct a public hearing to
             2311      determine reasons for inactivity and explore possible alternative actions.
             2312          Section 51. Section 63-38f-411 , which is renumbered from Section 9-2-411 is
             2313      renumbered and amended to read:
             2314           [9-2-411].     63-38f-411. Disqualifying transfers.
             2315          Except in counties of the first or second class, tax incentives provided by this part are
             2316      not available to companies that close or permanently curtail operations in another part of the
             2317      state in connection with a transfer of any part of its business operations to an enterprise zone, if
             2318      the closure or permanent curtailment is reasonably expected to diminish employment in that
             2319      part of the state.
             2320          Section 52. Section 63-38f-412 , which is renumbered from Section 9-2-412 is
             2321      renumbered and amended to read:


             2322           [9-2-412].     63-38f-412. Businesses qualifying for tax incentives.
             2323          The tax incentives described in this part are available only to a business firm for which
             2324      at least 51% of the employees employed at facilities of the firm located in the enterprise zone
             2325      are individuals who, at the time of employment, reside in the county in which the enterprise
             2326      zone is located.
             2327          Section 53. Section 63-38f-413 , which is renumbered from Section 9-2-413 is
             2328      renumbered and amended to read:
             2329           [9-2-413].     63-38f-413. State tax credits.
             2330          (1) Subject to the limitations of Subsections (2) through (4), the following state tax
             2331      credits against individual income taxes or corporate franchise and income taxes are applicable
             2332      in an enterprise zone:
             2333          (a) a tax credit of $750 may be claimed by a business for each new full-time position
             2334      filled for not less than six months during a given tax year;
             2335          (b) an additional $500 tax credit may be claimed if the new position pays at least 125%
             2336      of:
             2337          (i) the county average monthly nonagricultural payroll wage for the respective industry
             2338      as determined by the Department of Workforce Services; or
             2339          (ii) if the county average monthly nonagricultural payroll wage is not available for the
             2340      respective industry, the total average monthly nonagricultural payroll wage in the respective
             2341      county where the enterprise zone is located;
             2342          (c) an additional credit of $750 may be claimed if the new position is in a business that
             2343      adds value to agricultural commodities through manufacturing or processing;
             2344          (d) an additional credit of $200 may be claimed for two consecutive years for each new
             2345      employee who is insured under an employer-sponsored health insurance program if the
             2346      employer pays at least 50% of the premium cost for two consecutive years;
             2347          (e) a credit of 50% of the value of a cash contribution to a private nonprofit
             2348      corporation, except that the credit claimed may not exceed $100,000:
             2349          (i) that is exempt from federal income taxation under Section 501(c)(3), Internal
             2350      Revenue Code;
             2351          (ii) whose primary purpose is community and economic development; and
             2352          (iii) that has been accredited by the board of directors of the Utah Rural Development


             2353      Council;
             2354          (f) a credit of 25% of the first $200,000 spent on rehabilitating a building in the
             2355      enterprise zone that has been vacant for two years or more; and
             2356          (g) an annual investment tax credit of 10% of the first $250,000 in investment, and 5%
             2357      of the next $1,000,000 qualifying investment in plant, equipment, or other depreciable
             2358      property.
             2359          (2) (a) Subject to the limitations of Subsection (2)(b), a business claiming a credit
             2360      under Subsections (1)(a) through (d) may claim a credit for 30 full-time employee positions or
             2361      less in each of its taxable years.
             2362          (b) A business that received a credit for its full-time employee positions under
             2363      Subsections (1)(a) through (d) may claim an additional credit for a full-time employee position
             2364      under Subsections (1)(a) through (d) if:
             2365          (i) the business creates a new full-time employee position;
             2366          (ii) the total number of full-time employee positions at the business is greater than the
             2367      number of full-time employee positions previously claimed by the business under Subsections
             2368      (1)(a) through (d); and
             2369          (iii) the total number of credits the business has claimed for its current taxable year,
             2370      including the new full-time employee position for which the business is claiming a credit, is
             2371      less than or equal to 30.
             2372          (c) A business existing in an enterprise zone on the date of its designation shall
             2373      calculate the number of full-time positions based on the average number of employees reported
             2374      to the Department of Workforce Services.
             2375          (d) Construction jobs are not eligible for the tax credit under Subsections (1)(a)
             2376      through (d).
             2377          (3) If the amount of a tax credit under this section exceeds a business entity's tax
             2378      liability under this chapter for a taxable year, the amount of the credit exceeding the liability
             2379      may be carried forward for a period that does not exceed the next three taxable years.
             2380          (4) (a) If a business entity is located in a county that met the requirements of
             2381      Subsections [ 9-2-404 (1)(b) and (c)] 63-38f-404 (1)(b) and (c) but did not qualify as an
             2382      enterprise zone prior to January 1, 1998, because the county was located in a metropolitan
             2383      statistical area in more than one state, the business entity:


             2384          (i) shall qualify for tax credits for a taxable year beginning on or after January 1, 1997,
             2385      but beginning before December 31, 1997;
             2386          (ii) may claim a tax credit as described in Subsection (4)(a) in a taxable year beginning
             2387      on or after January 1, 1997, but beginning before December 31, 1997; and
             2388          (iii) may qualify for tax credits for any taxable year beginning on or after January 1,
             2389      1998, if the county is designated as an enterprise zone in accordance with this part.
             2390          (b) If a business entity claims a tax credit under Subsection (4)(a)(ii), the business
             2391      entity:
             2392          (i) may claim the tax credit by filing for the taxable year beginning on or after January
             2393      1, 1997, but beginning before December 31, 1997:
             2394          (A) an individual income tax return;
             2395          (B) an amended individual income tax return;
             2396          (C) a corporate franchise and income tax return; or
             2397          (D) an amended corporate franchise and income tax return; and
             2398          (ii) may carry forward the tax credit to a taxable year beginning on or after January 1,
             2399      1998, in accordance with Subsection (3).
             2400          (5) The tax credits under Subsections (1)(a) through (g) may not be claimed by a
             2401      business engaged in retail trade or by a public utilities business.
             2402          (6) A business may not claim or carry forward a tax credit available under this part for
             2403      a taxable year during which the business has claimed the targeted business income tax credit
             2404      available under Section [ 9-2-1803 ] 63-38f-503 .
             2405          Section 54. Section 63-38f-414 , which is renumbered from Section 9-2-414 is
             2406      renumbered and amended to read:
             2407           [9-2-414].     63-38f-414. Annual report.
             2408          (1) Each county applicant or municipal applicant designated as an enterprise zone shall
             2409      annually report to the [department] office regarding the economic activity that has occurred in
             2410      the zone following the designation.
             2411          (2) This information shall include:
             2412          (a) the number of jobs created in the zone[,];
             2413          (b) the number of economically disadvantaged individuals receiving public job training
             2414      assistance in the zone[,];


             2415          (c) the average wage level of the jobs created[,];
             2416          (d) descriptions of any affirmative action programs undertaken by the county applicant
             2417      or municipal applicant in connection with the enterprise zone[,];
             2418          (e) the amount of the county applicant's or municipal applicant's local contribution[,];
             2419      and
             2420          (f) the number of businesses qualifying for, or directly benefiting from, the local
             2421      contribution.
             2422          Section 55. Section 63-38f-415 , which is renumbered from Section 9-2-415 is
             2423      renumbered and amended to read:
             2424           [9-2-415].     63-38f-415. Indian tribes -- Application.
             2425          (1) For purposes of this section:
             2426          (a) "Indian reservation" is as defined in Section 9-9-210 .
             2427          (b) "Indian tribe" is as defined in Subsection 9-9-402 (4).
             2428          (c) "Tribal applicant" means the governing authority of a tribe that meets the
             2429      requirements for designation as an enterprise zone under Subsection (3).
             2430          (2) Indian tribes may apply for designation of an area within an Indian reservation as an
             2431      enterprise zone.
             2432          (3) The tribal applicant shall follow the application procedure for a municipal applicant
             2433      in this part except for the population requirement in Subsections [ 9-2-404 (2)(a) and (b)]
             2434      63-38f-404 (2)(a) and (b).
             2435          Section 56. Section 63-38f-416 , which is renumbered from Section 9-2-416 is
             2436      renumbered and amended to read:
             2437           [9-2-416].     63-38f-416. Technology-based service contracts within enterprise
             2438      zones.
             2439          (1) For purposes of this section:
             2440          (a) "Smart site enterprise" means a technology-based entity located within an enterprise
             2441      zone that is eligible to receive financial support under the [department's] office's smart site
             2442      program.
             2443          (b) "Smart site program" means a program of the [department] office dedicated to the
             2444      development of technology-based industry in rural Utah in which services that might otherwise
             2445      be performed by state agencies are outsourced to a smart site enterprise.


             2446          (c) "State agency" means the:
             2447          (i) Department of Commerce;
             2448          (ii) Department of Workforce Services;
             2449          (iii) Department of Transportation;
             2450          (iv) Department of Health;
             2451          (v) Department of Administrative Services;
             2452          (vi) Department of Public Safety;
             2453          (vii) Utah State Tax Commission; and
             2454          (viii) [Department of Community and] Governor's Office of Economic Development.
             2455          (d) "Technology-based contract" means a contract between a state agency and a smart
             2456      site enterprise for the smart site enterprise to provide the following services:
             2457          (i) software development and computer programming;
             2458          (ii) website design;
             2459          (iii) systems integration;
             2460          (iv) AutoCad/GIS mapping;
             2461          (v) help desk support, customer relationship management, and telephone or Internet
             2462      surveys;
             2463          (vi) computer graphics, animation, or illustration;
             2464          (vii) medical billing, coding, transcription, and related medical informatics services;
             2465          (viii) data entry, data conversion, and imaging;
             2466          (ix) information technology training and e-learning;
             2467          (x) network development, management, service, and support;
             2468          (xi) telecommunications technologies;
             2469          (xii) database development and applications;
             2470          (xiii) multimedia and digital technologies, including DVD;
             2471          (xiv) technical writing;
             2472          (xv) insurance and benefits administration;
             2473          (xvi) data warehousing and storage or web hosting;
             2474          (xvii) billing services; and
             2475          (xviii) information technology consulting.
             2476          (2) The [department] office has the following responsibilities for the smart site


             2477      program authorized under this section:
             2478          (a) to provide market incentives identified in Subsection (4) to eligible state agencies
             2479      and provide technical assistance as appropriate;
             2480          (b) to administer funding and initiate interagency transfers consistent with the
             2481      provisions of this section;
             2482          (c) to provide state agencies with a listing of smart site enterprises; and
             2483          (d) to designate a smart site program director and notify state agencies of the
             2484      designation[; and].
             2485          [(e) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2486      make rules necessary to administer this section.]
             2487          (3) A state agency has the following responsibilities if participating in the smart site
             2488      program offered under this section:
             2489          (a) to enter into a memorandum of understanding with the [department] office
             2490      indicating the steps the agency shall take to encourage smart site enterprises to submit bids for
             2491      technology-based contracts; and
             2492          (b) to submit to the [department] office by no later than July 30, an accounting of all
             2493      technology-based contracts awarded to smart site enterprises by the agency in the prior fiscal
             2494      year.
             2495          (4) (a) A state agency is eligible for an interagency transfer from the [department]
             2496      office for up to 10% of all technology-based contracts awarded to a smart site enterprise under
             2497      the [department's] office's smart site program.
             2498          (b) The [department] office shall determine the amount of the interagency transfer as
             2499      follows:
             2500          (i) if the total number of requests for interagency transfers under the program does not
             2501      exceed the legislative appropriation for the fiscal year, each eligible agency shall receive a full
             2502      10% transfer; or
             2503          (ii) if the total number of requests for interagency transfers under the program exceeds
             2504      the appropriation for the fiscal year, the [department] office shall prorate the amount of each
             2505      transfer based on the respective percentage of all technology-based contracts submitted to the
             2506      [department] office by all eligible state agencies.
             2507          (c) (i) After determining the amount of each agency's interagency transfer as required


             2508      under Subsection (4)(b), the [department] office shall transfer the amount to each agency's
             2509      budget.
             2510          (ii) The [department] office shall make the transfer no later than August 15 to
             2511      supplement the agency's budget for the fiscal year beginning just prior to the interagency
             2512      transfer.
             2513          (iii) An agency may use the interagency transfer it receives under this Subsection (4)(c)
             2514      for any purpose related to the agency's mission or its duties and responsibilities, including the
             2515      payment of incentives and award bonuses for participating in the smart site program.
             2516          (d) Funding for the interagency transfer under Subsection (4)(c) shall come from the
             2517      prior fiscal year appropriation to the [department] office.
             2518          (e) The appropriation to fund this section is nonlapsing to provide for the distribution
             2519      process outlined in this Subsection (4).
             2520          Section 57. Section 63-38f-501 , which is renumbered from Section 9-2-1801 is
             2521      renumbered and amended to read:
             2522     
Part 5. Targeted Business Income Tax Credits Within an Enterprise Zone

             2523           [9-2-1801].     63-38f-501. Definitions.
             2524          [(1)] As used in this part:
             2525          [(a)] (1) "Allocated cap amount" means the total amount of the targeted business
             2526      income tax credit that a business applicant is allowed to claim for a taxable year that represents
             2527      a pro rata share of the total amount of $300,000 for each fiscal year allowed under Subsection
             2528      [ 9-2-1803 ] 63-38f-503 (2).
             2529          [(b)] (2) "Business applicant" means a business that meets the criteria established in
             2530      Section [ 9-2-1802 ] 63-38f-502 .
             2531          [(c)] (3) "Community investment project" means a project that includes one or more of
             2532      the following criteria in addition to the normal operations of the business applicant:
             2533          [(i)] (a) substantial new employment;
             2534          [(ii)] (b) new capital development; or
             2535          [(iii)] (c) a combination of both Subsections [(1)(c)(i) and (ii)] (3)(a) and (b).
             2536          [(d)] (4) "Community investment project period" means the total number of years that
             2537      the [department] office determines a business applicant is eligible for a targeted business
             2538      income tax credit for each community investment project.


             2539          [(e)] (5) "Enterprise zone" means an area within a county or municipality that has been
             2540      designated as an enterprise zone by the [department] office under Part 4, Enterprise [Zones]
             2541      Zone Act.
             2542          [(f)] (6) "Local zone administrator" means a person:
             2543          [(i)] (a) designated by the governing authority of the county or municipal applicant as
             2544      the local zone administrator in an enterprise zone application; and
             2545          [(ii)] (b) approved by the [department] office as the local zone administrator.
             2546          [(g)] (7) "Targeted business income tax credit " means an income tax credit available
             2547      under Section [ 9-2-1803 ] 63-38f-503 .
             2548          [(h)] (8) "Targeted business income tax credit eligibility form" means a document
             2549      provided annually to the business applicant by the [department] office that complies with the
             2550      requirements of Subsection [ 9-2-1803 ] 63-38f-503 (8).
             2551          [(2) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             2552      for purposes of Subsection (1), the department shall make rules:]
             2553          [(a) to define what constitutes:]
             2554          [(i) substantial new employment;]
             2555          [(ii) new capital development; and]
             2556          [(iii) a project; and]
             2557          [(b) to establish a formula for determining the allocated cap amount for each business
             2558      applicant.]
             2559          Section 58. Section 63-38f-502 , which is renumbered from Section 9-2-1802 is
             2560      renumbered and amended to read:
             2561           [9-2-1802].     63-38f-502. Application for targeted business income tax credits.
             2562          (1) (a) For taxable years beginning on or after January 1, 2002, a business applicant
             2563      may elect to claim a targeted business income tax credit available under Section [ 9-2-1803 ]
             2564      63-38f-503 if the business applicant:
             2565          (i) is located in:
             2566          (A) an enterprise zone; and
             2567          (B) a county with:
             2568          (I) a population of less than 25,000; and
             2569          (II) an unemployment rate that for six months or more of each calendar year is at least


             2570      one percentage point higher than the state average;
             2571          (ii) meets the requirements of Section [ 9-2-412 ] 63-38f-412 ;
             2572          (iii) provides:
             2573          (A) a community investment project within the enterprise zone; and
             2574          (B) a portion of the community investment project during each taxable year for which
             2575      the business applicant claims the targeted business tax incentive; and
             2576          (iv) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, is
             2577      not engaged in the following, as defined by the State Tax Commission by rule:
             2578          (A) construction;
             2579          (B) retail trade; or
             2580          (C) public utility activities.
             2581          (b) For a taxable year for which a business applicant claims a targeted business income
             2582      tax credit available under this part, the business applicant may not claim or carry forward a tax
             2583      credit available under Section [ 9-2-413 ] 63-38f-413 , 59-7-610 , or 59-10-108.7 .
             2584          (2) (a) A business applicant seeking to claim a targeted business income tax credit
             2585      under this part shall file an application as provided in Subsection (2)(b) with the local zone
             2586      administrator by no later than June 1 of the year in which the business applicant is seeking to
             2587      claim a targeted business income tax credit.
             2588          (b) The application described in Subsection (2)(a) shall include:
             2589          (i) any documentation required by the local zone administrator to demonstrate that the
             2590      business applicant meets the requirements of Subsection (1);
             2591          (ii) a plan developed by the business applicant that outlines:
             2592          (A) if the community investment project includes substantial new employment, the
             2593      projected number and anticipated wage level of the jobs that the business applicant plans to
             2594      create as the basis for qualifying for a targeted business income tax credit;
             2595          (B) if the community investment project includes new capital development, a
             2596      description of the capital development the business applicant plans to make as the basis for
             2597      qualifying for a targeted business income tax credit; and
             2598          (C) a description of how the business applicant's plan coordinates with:
             2599          (I) the goals of the enterprise zone in which the business applicant is providing a
             2600      community investment project; and


             2601          (II) the overall economic development goals of the county or municipality in which the
             2602      business applicant is providing a community investment project; and
             2603          (iii) any additional information required by the local zone administrator.
             2604          (3) (a) The local zone administrator shall:
             2605          (i) evaluate an application filed under Subsection (2); and
             2606          (ii) determine whether the business applicant is eligible for a targeted business income
             2607      tax credit.
             2608          (b) If the local zone administrator determines that the business applicant is eligible for
             2609      a targeted business income tax credit, the local zone administrator shall:
             2610          (i) certify that the business applicant is eligible for the targeted business income tax
             2611      credit;
             2612          (ii) structure the targeted business income tax credit for the business applicant in
             2613      accordance with Section [ 9-2-1803 ] 63-38f-503 ; and
             2614          (iii) monitor a business applicant to ensure compliance with this section.
             2615          (4) A local zone administrator shall report to the [department] office by no later than
             2616      June 30 of each year:
             2617          (a) (i) any application approved by the local zone administrator during the last fiscal
             2618      year; and
             2619          (ii) the information established in Subsections [ 9-2-1803 (4)(a) through (d)]
             2620      63-38f-503 (4)(a) through (d) for each new business applicant; and
             2621          (b) (i) the status of any existing business applicants that the local zone administrator
             2622      monitors; and
             2623          (ii) any information required by the [department] office to determine the status of an
             2624      existing business applicant.
             2625          (5) (a) By July 15 of each year, the department shall notify the local zone administrator
             2626      of the allocated cap amount that each business applicant that the local zone administrator
             2627      monitors is eligible to claim.
             2628          (b) By September 15 of each year, the local zone administrator shall notify, in writing,
             2629      each business applicant that the local zone administrator monitors of the allocated cap amount
             2630      determined by the [department] office under Subsection (5)(a) that the business applicant is
             2631      eligible to claim for a taxable year.


             2632          Section 59. Section 63-38f-503 , which is renumbered from Section 9-2-1803 is
             2633      renumbered and amended to read:
             2634           [9-2-1803].     63-38f-503. Targeted business income tax credit structure -- Duties
             2635      of the local zone administrator -- Duties of the State Tax Commission.
             2636          (1) For taxable years beginning on or after January 1, 2002, a business applicant that is
             2637      certified under Subsection [ 9-2-1802 ] 63-38f-502 (3) and issued a targeted business tax credit
             2638      eligibility form by the department under Subsection (8) may claim a refundable income tax
             2639      credit:
             2640          (a) against the business applicant's tax liability under:
             2641          (i) Title 59, Chapter 10, Individual Income Tax Act; or
             2642          (ii) Title 59, Chapter 7, Corporate Franchise and Income Taxes; and
             2643          (b) subject to requirements and limitations provided by this part.
             2644          (2) The total amount of the targeted business income tax credits allowed under this part
             2645      for all business applicants may not exceed $300,000 in any fiscal year.
             2646          (3) (a) A targeted business income tax credit allowed under this part for each
             2647      community investment project provided by a business applicant may not:
             2648          (i) be claimed by a business applicant for more than seven consecutive taxable years
             2649      from the date the business applicant first qualifies for a targeted business income tax credit on
             2650      the basis of a community investment project;
             2651          (ii) be carried forward or carried back;
             2652          (iii) exceed $100,000 in total amount for the community investment project period
             2653      during which the business applicant is eligible to claim a targeted business income tax credit;
             2654      or
             2655          (iv) exceed in any year that the targeted business income tax credit is claimed the lesser
             2656      of:
             2657          (A) 50% of the maximum amount allowed by the local zone administrator; or
             2658          (B) the allocated cap amount determined by the [department] office under Subsection
             2659      [ 9-2-1802 ] 63-38f-502 (5).
             2660          (b) A business applicant may apply to the local zone administrator to claim a targeted
             2661      business income tax credit allowed under this part for each community investment project
             2662      provided by the business applicant as the basis for its eligibility for a targeted business income


             2663      tax credit.
             2664          (4) Subject to other provisions of this section, the local zone administrator shall
             2665      establish for each business applicant that qualifies for a targeted business income tax credit:
             2666          (a) criteria for maintaining eligibility for the targeted business income tax credit that
             2667      are reasonably related to the community investment project that is the basis for the business
             2668      applicant's targeted business income tax credit;
             2669          (b) the maximum amount of the targeted business income tax credit the business
             2670      applicant is allowed for the community investment project period;
             2671          (c) the time period over which the total amount of the targeted business income tax
             2672      credit may be claimed;
             2673          (d) the maximum amount of the targeted business income tax credit that the business
             2674      applicant will be allowed to claim each year; and
             2675          (e) requirements for a business applicant to report to the local zone administrator
             2676      specifying:
             2677          (i) the frequency of the business applicant's reports to the local zone administrator,
             2678      which shall be made at least quarterly; and
             2679          (ii) the information needed by the local zone administrator to monitor the business
             2680      applicant's compliance with this Subsection (4) or Section [ 9-2-1802 ] 63-38f-502 that shall be
             2681      included in the report.
             2682          (5) In accordance with Subsection (4)(e), a business applicant allowed a targeted
             2683      business income tax credit under this part shall report to the local zone administrator.
             2684          (6) The amount of a targeted business income tax credit that a business applicant is
             2685      allowed to claim for a taxable year shall be reduced by 25% for each quarter in which the
             2686      [department] office or the local zone administrator determines that the business applicant has
             2687      failed to comply with a requirement of Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
             2688          (7) The [department] office or local zone administrator may audit a business applicant
             2689      to ensure:
             2690          (a) eligibility for a targeted business income tax credit; or
             2691          (b) compliance with Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
             2692          (8) The department shall issue a targeted business income tax credit eligibility form in
             2693      a form jointly developed by the State Tax Commission and the [department] office no later


             2694      than 30 days after the last day of the business applicant's taxable year showing:
             2695          (a) the maximum amount of the targeted business income tax credit that the business
             2696      applicant is eligible for that taxable year;
             2697          (b) any reductions in the maximum amount of the targeted business income tax credit
             2698      because of failure to comply with a requirement of Subsection (3) or Section [ 9-2-1802 ]
             2699      63-38f-502 ;
             2700          (c) the allocated cap amount that the business applicant may claim for that taxable
             2701      year; and
             2702          (d) the actual amount of the targeted business income tax credit that the business
             2703      applicant may claim for that taxable year.
             2704          (9) (a) A business applicant shall retain the targeted business income tax credit
             2705      eligibility form provided by the [department] office under this Subsection (9).
             2706          (b) The State Tax Commission may audit a business applicant to ensure:
             2707          (i) eligibility for a targeted business income tax credit; or
             2708          (ii) compliance with Subsection (3) or Section [ 9-2-1802 ] 63-38f-502 .
             2709          Section 60. Section 63-38f-601 , which is renumbered from Section 9-2-501 is
             2710      renumbered and amended to read:
             2711     
Part 6. State Advisory Council on Science and Technology

             2712           [9-2-501].     63-38f-601. Purpose.
             2713          The purpose of this part is to establish an advisory council on science and technology to
             2714      assist in the development of programs, communication, and use of science and technology in
             2715      governmental organizations in the state [of Utah].
             2716          Section 61. Section 63-38f-602 , which is renumbered from Section 9-2-502 is
             2717      renumbered and amended to read:
             2718           [9-2-502].     63-38f-602. Definition of terms.
             2719          As used in this part:
             2720          (1) "Adviser" means the state science adviser appointed under this part.
             2721          (2) "Council" means the State Advisory Council on Science and Technology created
             2722      under this part.
             2723          (3) "Director" means the governor's director for economic development.
             2724          Section 62. Section 63-38f-603 , which is renumbered from Section 9-2-503 is


             2725      renumbered and amended to read:
             2726           [9-2-503].     63-38f-603. Creation.
             2727          There is created the State Advisory Council on Science and Technology within the
             2728      [Division of Business and] Governor's Office of Economic Development, which shall perform
             2729      the functions and duties provided in this part.
             2730          Section 63. Section 63-38f-604 , which is renumbered from Section 9-2-504 is
             2731      renumbered and amended to read:
             2732           [9-2-504].     63-38f-604. Members -- Appointment -- Terms -- Qualifications --
             2733      Vacancies -- Chair and vice chair -- Executive secretary -- Executive committee --
             2734      Quorum -- Expenses.
             2735          (1) The council comprises the following nonvoting members or their designees:
             2736          (a) the adviser;
             2737          (b) the executive director of the Department of Natural Resources;
             2738          (c) the executive director of the Department of Community and Economic
             2739      Development;
             2740          (d) the executive director of the Department of Health;
             2741          (e) the executive director of the Department of Environmental Quality;
             2742          (f) the commissioner of agriculture and food;
             2743          (g) the commissioner of higher education;
             2744          (h) the state planning coordinator; and
             2745          (i) the executive director of the Department of Transportation.
             2746          (2) The governor may appoint other voting members, not to exceed 12.
             2747          (3) (a) Except as required by Subsection (b), as terms of current council members
             2748      expire, the governor shall appoint each new member or reappointed member to a four-year
             2749      term.
             2750          (b) Notwithstanding the requirements of Subsection (a), the governor shall, at the time
             2751      of appointment or reappointment, adjust the length of terms to ensure that the terms of council
             2752      members are staggered so that approximately half of the council is appointed every two years.
             2753          (4) The governor shall consider all institutions of higher education in the state in the
             2754      appointment of council members.
             2755          (5) The voting members of the council shall be experienced or knowledgeable in the


             2756      application of science and technology to business, industry, or public problems and have
             2757      demonstrated their interest in and ability to contribute to the accomplishment of the purposes of
             2758      this part.
             2759          (6) When a vacancy occurs in the membership for any reason, the replacement shall be
             2760      appointed for the unexpired term.
             2761          (7) (a) Each year the council shall select from its membership a chair and a vice chair.
             2762          (b) The chair and vice chair shall hold office for one year or until a successor is
             2763      appointed and qualified.
             2764          (8) The adviser [shall serve] serves as executive secretary of the council.
             2765          (9) An executive committee shall be established consisting of the chair, vice chair, and
             2766      the adviser.
             2767          (10) (a) In order to conduct business matters of the council at regularly convened
             2768      meetings, a quorum consisting of a simple majority of the total voting membership of the
             2769      council is required.
             2770          (b) All matters of business affecting public policy require not less than a simple
             2771      majority of affirmative votes of the total membership.
             2772          (11) (a) (i) Members who are not government employees shall receive no
             2773      compensation or benefits for their services, but may receive per diem and expenses incurred in
             2774      the performance of the member's official duties at the rates established by the Division of
             2775      Finance under Sections 63A-3-106 and 63A-3-107 .
             2776          (ii) Members may decline to receive per diem and expenses for their service.
             2777          (b) (i) State government officer and employee members who do not receive salary, per
             2778      diem, or expenses from their agency for their service may receive per diem and expenses
             2779      incurred in the performance of their official duties from the council at the rates established by
             2780      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             2781          (ii) State government officer and employee members may decline to receive per diem
             2782      and expenses for their service.
             2783          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             2784      from the entity that they represent for their service may receive per diem and expenses incurred
             2785      in the performance of their official duties from the committee at the rates established by the
             2786      Division of Finance under Sections 63A-3-106 and 63A-3-107 .


             2787          (ii) Higher education members may decline to receive per diem and expenses for their
             2788      service.
             2789          Section 64. Section 63-38f-605 , which is renumbered from Section 9-2-505 is
             2790      renumbered and amended to read:
             2791           [9-2-505].     63-38f-605. Duties and powers.
             2792          (1) The council shall:
             2793          (a) encourage the use of science and technology in the administration of state and local
             2794      government;
             2795          (b) develop programs whereby state agencies and the several public and private
             2796      institutions of higher education and technical colleges within the state may assist business and
             2797      industry in the utilization of science and technology;
             2798          (c) further communication between agencies of federal, state, and local government
             2799      who wish to utilize science and technology;
             2800          (d) develop programs of cooperation on matters of science and technology between:
             2801          (i) state and local government agencies;
             2802          (ii) the several public and private institutions of higher education and technical
             2803      colleges within the state; and
             2804          (iii) business and industry within the state; or
             2805          (iv) between any combination of these;
             2806          (e) provide a means whereby government, business, industry, and higher education
             2807      may be represented in the formulation and implementation of state policies and programs on
             2808      matters of science and technology;
             2809          (f) review, catalog, and compile the research and development uses by the state
             2810      universities of the revenue derived from mineral lease funds on state and federal lands;
             2811          (g) provide to the Legislature an annual report on the expenditure and utilization of
             2812      these mineral lease funds;
             2813          (h) make recommendations to the Legislature on the further uses of these mineral lease
             2814      funds in order to stimulate research and development directed toward the more effective
             2815      utilization of the state's natural resources; and
             2816          (i) prepare and lodge an annual report with the governor and with the Legislature.
             2817          (2) The council may:


             2818          (a) in accordance with Title 63, Chapter 40, Federal Assistance Management Program,
             2819      apply for, receive, and disburse funds, contributions, or grants from whatever source for the
             2820      purposes set forth in this part;
             2821          (b) employ, compensate, and prescribe the duties and powers of those individuals,
             2822      subject to the provisions of this part relating to the adviser, necessary to execute the duties and
             2823      powers of the council; and
             2824          (c) enter into contracts for the purposes of this part.
             2825          Section 65. Section 63-38f-606 , which is renumbered from Section 9-2-506 is
             2826      renumbered and amended to read:
             2827           [9-2-506].     63-38f-606. Adviser -- Duties and powers.
             2828          (1) The adviser shall be appointed by the governor.
             2829          (2) The adviser shall be experienced or knowledgeable in the application of science
             2830      and technology to business, industry, or public problems and shall have demonstrated [his]
             2831      interest in or ability to contribute to the accomplishment of the purposes of this part.
             2832          (3) The adviser shall be compensated pursuant to the wage and salary classification
             2833      plan for appointed officers of the state [of Utah] currently in effect.
             2834          (4) (a) The adviser shall have those duties and powers the council assigns.
             2835          (b) The adviser, [subject to the supervision] with the advice of the council, may enter
             2836      into contracts and agreements and may incur expenses necessary to fulfill the purposes of this
             2837      part.
             2838          (5) The [council] adviser shall be administratively responsible to the director of the
             2839      [Division of Business and Economic Development] office.
             2840          Section 66. Section 63-38f-607 , which is renumbered from Section 9-2-507 is
             2841      renumbered and amended to read:
             2842           [9-2-507].     63-38f-607. Request for information.
             2843          All departments, divisions, boards, commissions, agencies, institutions, and all other
             2844      instrumentalities of the state shall, upon request of the council, provide the council with any
             2845      information that these instrumentalities have concerning research in science and technology.
             2846          Section 67. Section 63-38f-701 , which is renumbered from Section 9-2-601 is
             2847      renumbered and amended to read:
             2848     
Part 7. Centers of Excellence


             2849           [9-2-601].     63-38f-701. Purpose.
             2850          (1) (a) The Legislature recognizes that the growth of new industry and expansion of
             2851      existing industry requires a strong technology base, new ideas, concepts, innovations, and
             2852      prototypes.
             2853          (b) These generally come from strong research colleges and universities.
             2854          (c) Technical research in Utah's colleges and universities should be enhanced and
             2855      expanded, particularly in those areas targeted by the state for economic development.
             2856          (d) Most states are enhancing their research base by direct funding, usually on a
             2857      matching basis.
             2858          (e) The purpose of this part is to catalyze and enhance the growth of these technologies
             2859      by encouraging interdisciplinary research activities in targeted areas.
             2860          (f) The Legislature recognizes that one source of funding is in matching state funds
             2861      with federal funds and industrial support to provide the needed new technologies.
             2862          (2) The Legislature recommends that the governor consider the allocation of economic
             2863      development funds for Centers of Excellence to be matched by industry and federal grants on at
             2864      least a two-for-one basis.
             2865          (3) (a) The Legislature recommends that [such] the funds be allocated on a competitive
             2866      basis to the various colleges and universities in the state.
             2867          (b) The funds made available should be used to support interdisciplinary research in
             2868      specialized Centers of Excellence in technologies that are considered to have potential for
             2869      economic development in this state.
             2870          Section 68. Section 63-38f-702 , which is renumbered from Section 9-2-602 is
             2871      renumbered and amended to read:
             2872           [9-2-602].     63-38f-702. Title.
             2873          [(1)] This part is known as the "Centers of Excellence Act."
             2874          [(2) As used in this part, "Centers of Excellence" means university-based,
             2875      industry-supported, cooperative research and development programs.]
             2876          Section 69. Section 63-38f-703 is enacted to read:
             2877          63-38f-703. Definitions.
             2878          As used in this part, "centers of excellence" means university-based,
             2879      industry-supported, cooperative research and development programs.


             2880          Section 70. Section 63-38f-704 , which is renumbered from Section 9-2-603 is
             2881      renumbered and amended to read:
             2882           [9-2-603].     63-38f-704. Administration -- Grants.
             2883          (1) This part shall be administered by the [Division of Business and] Governor's Office
             2884      of Economic Development.
             2885          (2) The [department] office may award grants to the various colleges and universities
             2886      in the state for the purposes of this part.
             2887          (3) (a) [Recommendations for funding] Funding allocations shall be made by the
             2888      [division] office with the advice of the State Advisory Council for Science and Technology[,
             2889      with the approval of] and the board.
             2890          (b) Each proposal shall receive the best available outside review.
             2891          (4) (a) In considering each proposal, the [division] office shall weigh technical merit,
             2892      the level of matching funds from private and federal sources, and the potential for job creation
             2893      and economic development.
             2894          (b) Proposals or consortia that combine and coordinate related research at two or more
             2895      colleges and universities shall be encouraged.
             2896          (5) The State Advisory Council on Science and Technology shall review the activities
             2897      and progress of individual centers on a regular basis and assist the [division] office in preparing
             2898      an annual report on the accomplishments and direction of the Centers of Excellence Program.
             2899          Section 71. Section 63-38f-801 , which is renumbered from Section 9-2-901 is
             2900      renumbered and amended to read:
             2901     
Part 8. Shared Foreign Sales Corporations

             2902           [9-2-901].     63-38f-801. Creation of shared foreign sales corporations.
             2903          The [department] office may create one or more shared foreign sales corporations,
             2904      qualifying as such under Section 927(g), Internal Revenue Code of 1986, and may name
             2905      directors or managers of these corporations at its discretion.
             2906          Section 72. Section 63-38f-802 , which is renumbered from Section 9-2-902 is
             2907      renumbered and amended to read:
             2908           [9-2-902].     63-38f-802. Management fees.
             2909          (1) All expenses incurred in establishing and maintaining shared foreign sales
             2910      corporations shall be initially paid for by the [department] office but shall be reimbursed to the


             2911      [department] office by the participants in each shared foreign sales corporation created under
             2912      Section [ 9-2-901 ] 63-38f-801 on a pro rata basis determined by the [department] office.
             2913          (2) The [department] office may charge the participants management fees that are
             2914      reasonable to maintain and manage each of the shared foreign sales corporations.
             2915          (3) All monies obtained by the [department] office in excess of [department] office
             2916      expenditures in connection with the management of shared foreign sales corporations may be
             2917      used at the discretion of the [department] office for the [department's] office's other activities in
             2918      promoting exporting.
             2919          (4) The fees collected and the expenditures made shall be reported to the Legislature
             2920      each year.
             2921          Section 73. Section 63-38f-901 , which is renumbered from Section 9-2-1201 is
             2922      renumbered and amended to read:
             2923     
Part 9. Industrial Assistance Fund

             2924           [9-2-1201].     63-38f-901. Purpose statement.
             2925          The Legislature finds and declares that the fostering and development of industry in
             2926      Utah is a state public purpose necessary to assure the welfare of its citizens, the growth of its
             2927      economy, and adequate employment for its citizens.
             2928          Section 74. Section 63-38f-902 , which is renumbered from Section 9-2-1202 is
             2929      renumbered and amended to read:
             2930           [9-2-1202].     63-38f-902. Definitions.
             2931          As used in this part:
             2932          (1) "Administrator" means the [executive] director [of the Department of Community
             2933      and Economic Development] or the [executive] director's designee.
             2934          (2) "Board" means the Board of Business and Economic Development.
             2935          (3) "Company creating an economic impediment" means a company that discourages
             2936      economic development within a reasonable radius of its location because of:
             2937          (a) odors;
             2938          (b) noise;
             2939          (c) pollution;
             2940          (d) health hazards; or
             2941          (e) other activities similar to those described in Subsections (3)(a) through (d).


             2942          (4) "Economic opportunities" means unique business situations or community
             2943      circumstances which lend themselves to the furtherance of the economic interests of the state
             2944      by providing a catalyst or stimulus to the growth or retention, or both, of commerce and
             2945      industry in the state.
             2946          (5) "Economically disadvantaged rural area" means a geographic area designated by the
             2947      [board] administrator under Section [ 9-2-1207 ] 63-38f-909 .
             2948          (6) "Fund" means the restricted account known as the Industrial Assistance Fund
             2949      created in Section [ 9-2-1203 ] 63-38f-903 .
             2950          (7) "Replacement company" means a company locating its business or part of its
             2951      business in a location vacated by a company creating an economic impediment.
             2952          (8) "Targeted industry" means an industry or group of industries targeted by the
             2953      administrator with the advice of the board, under Section [ 9-2-1207 ] 63-38f-909 , for economic
             2954      development in the state.
             2955          Section 75. Section 63-38f-903 , which is renumbered from Section 9-2-1203 is
             2956      renumbered and amended to read:
             2957           [9-2-1203].     63-38f-903. Industrial Assistance Fund created.
             2958          (1) There is created within the General Fund a restricted account known as the
             2959      Industrial Assistance Fund of which:
             2960          (a) up to 50% shall be used in economically disadvantaged rural areas; and
             2961          (b) up to 20% may be used to take timely advantage of economic opportunities as they
             2962      arise.
             2963          (2) The fund shall be administered by the administrator [under the policy direction of]
             2964      with advice from the board.
             2965          (3) The administrator may hire appropriate support staff.
             2966          (4) The cost of administering the fund shall be paid from monies in the fund.
             2967          (5) Interest accrued from investment of monies in the fund shall remain in the fund.
             2968          Section 76. Section 63-38f-904 , which is renumbered from Section 9-2-1204 is
             2969      renumbered and amended to read:
             2970           [9-2-1204].     63-38f-904. Loans, grants, and assistance -- Repayment -- Earned
             2971      credits.
             2972          (1) (a) A company that qualifies under Section [ 9-2-1205 ] 63-38f-905 may receive


             2973      loans, grants, or other financial assistance from the fund for expenses related to establishment,
             2974      relocation, or development of industry in Utah.
             2975          (b) A company creating an economic impediment that qualifies under Section
             2976      [ 9-2-1205.5 ] 63-38f-907 may in accordance with this part receive loans, grants, or other
             2977      financial assistance from the fund for the expenses of the company creating an economic
             2978      impediment related to:
             2979          (i) relocation to a rural area in Utah of the company creating an economic impediment;
             2980      and
             2981          (ii) the siting of a replacement company.
             2982          (c) An entity offering an economic opportunity that qualifies under Section
             2983      [ 9-2-1205.8 ] 63-38f-908 may:
             2984          (i) receive loans, grants, or other financial assistance from the fund for expenses related
             2985      to the establishment, relocation, retention, or development of industry in the state; and
             2986          (ii) include infrastructure or other economic development precursor activities that act
             2987      as a catalyst and stimulus for economic activity likely to lead to the maintenance or
             2988      enlargement of the state's tax base.
             2989          (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the
             2990      structure, amount, and nature of any loan, grant, or other financial assistance from the fund.
             2991          (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment
             2992      or return to the state, including cash or credit, equals at least the amount of the assistance
             2993      together with an annual interest charge as negotiated by the administrator.
             2994          (c) Payments resulting from grants awarded from the fund shall be made only after the
             2995      administrator has determined that the company has satisfied the conditions upon which the
             2996      payment or earned credit was based.
             2997          (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a
             2998      system of earned credits that may be used to support grant payments or in lieu of cash
             2999      repayment of a fund loan obligation.
             3000          (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors
             3001      determined by the administrator, including:
             3002          (A) the number of Utah jobs created;
             3003          (B) the increased economic activity in Utah; or


             3004          (C) other events and activities that occur as a result of the fund assistance.
             3005          (b) (i) The administrator shall provide for a system of credits to be used to support
             3006      grant payments or in lieu of cash repayment of a fund loan when loans are made to a company
             3007      creating an economic impediment.
             3008          (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors
             3009      determined by the administrator, including:
             3010          (A) the number of Utah jobs created;
             3011          (B) the increased economic activity in Utah; or
             3012          (C) other events and activities that occur as a result of the fund assistance.
             3013          (4) (a) A cash loan repayment or other cash recovery from a company receiving
             3014      assistance under this section, including interest, shall be deposited into the fund.
             3015          (b) The administrator and the Division of Finance shall determine the manner of
             3016      recognizing and accounting for the earned credits used in lieu of loan repayments or to support
             3017      grant payments as provided in Subsection (3).
             3018          (5) (a) At the end of each fiscal year, after the transfer of surplus General Fund
             3019      revenues has been made to the General Fund Budget Reserve Account as provided in Section
             3020      63-38-2.5 , any additional unrestricted, undesignated General Fund balance shall be earmarked
             3021      to the Industrial Assistance Fund in an amount equal to any credit that has accrued under this
             3022      part.
             3023          (b) These credit amounts may not be used for purposes of the fund as provided in this
             3024      part until appropriated by the Legislature.
             3025          Section 77. Section 63-38f-905 , which is renumbered from Section 9-2-1205 is
             3026      renumbered and amended to read:
             3027           [9-2-1205].     63-38f-905. Qualification for assistance.
             3028          (1) Except as provided in Section [ 9-2-1205.5 ] 63-38f-907 or Section [ 9-2-1205.8 ]
             3029      63-38f-908 , the administrator shall determine which industries, companies, and individuals
             3030      qualify to receive monies from the fund. Except as provided by Subsection (2), to qualify for
             3031      financial assistance from the fund, an applicant shall:
             3032          (a) demonstrate to the satisfaction of the administrator that the applicant will expend
             3033      funds in Utah with employees, vendors, subcontractors, or other businesses in an amount
             3034      proportional with monies provided from the fund at a minimum ratio of 2 to 1 per year or other


             3035      more stringent requirements as established from time to time by the board for a minimum
             3036      period of five years beginning with the date the loan or grant was approved;
             3037          (b) demonstrate to the satisfaction of the administrator the applicant's ability to sustain
             3038      economic activity in the state sufficient to repay, by means of cash or appropriate credits, the
             3039      loan provided by the fund; and
             3040          (c) satisfy other criteria the administrator considers appropriate.
             3041          (2) (a) The administrator may exempt an applicant from the requirements of Subsection
             3042      (1)(a) or [(1)](b) if:
             3043          (i) the financial assistance is provided to an applicant for the purpose of locating all or
             3044      any portion of its operations to an economically disadvantaged rural area;
             3045          (ii) the applicant is part of a targeted industry;
             3046          (iii) the applicant is a quasi-public corporation organized under Title 16, Chapter 6a,
             3047      Utah Revised Nonprofit Corporation Act, or Title 63E, Chapter 2, Independent Corporations
             3048      Act, and its operations, as demonstrated to the satisfaction of the administrator, will provide
             3049      significant economic stimulus to the growth of commerce and industry in the state; or
             3050          (iv) the applicant is an entity offering an economic opportunity under Section
             3051      [ 9-2-1205.8 ] 63-38f-908 .
             3052          (b) The administrator may not exempt the applicant from the requirement under
             3053      Subsection [ 9-2-1204 ] 63-38f-904 (2)(b) that the loan be structured so that the repayment or
             3054      return to the state equals at least the amount of the assistance together with an annual interest
             3055      charge.
             3056          (3) The administrator shall:
             3057          (a) for applicants not described in Subsection (2)(a):
             3058          (i) make findings as to whether or not each applicant has satisfied each of the
             3059      conditions set forth in Subsection (1); and
             3060          (ii) monitor the continued compliance by each applicant with each of the conditions set
             3061      forth in Subsection (1) for five years;
             3062          (b) for applicants described in Subsection (2)(a), make findings as to whether the
             3063      economic activities of each applicant has resulted in the creation of new jobs on a per capita
             3064      basis in the economically disadvantaged rural area or targeted industry in which the applicant is
             3065      located;


             3066          (c) monitor the compliance by each applicant with the provisions of any contract or
             3067      agreement entered into between the applicant and the state as provided in Section [ 9-2-1205.1 ]
             3068      63-38f-906 ; and
             3069          (d) make funding decisions based upon appropriate findings and compliance.
             3070          Section 78. Section 63-38f-906 , which is renumbered from Section 9-2-1205.1 is
             3071      renumbered and amended to read:
             3072           [9-2-1205.1].     63-38f-906. Agreements.
             3073          The administrator shall enter into agreements with each successful applicant that have
             3074      specific terms and conditions for each loan or assistance, including:
             3075          (1) repayment schedules;
             3076          (2) interest rates;
             3077          (3) specific economic activity required to qualify for the loan or assistance or for
             3078      repayment credits;
             3079          (4) collateral or security, if any; and
             3080          (5) other terms and conditions considered appropriate by the administrator.
             3081          Section 79. Section 63-38f-907 , which is renumbered from Section 9-2-1205.5 is
             3082      renumbered and amended to read:
             3083           [9-2-1205.5].     63-38f-907. Financial assistance to companies that create
             3084      economic impediments.
             3085          (1) (a) The administrator may provide monies from the fund to a company creating an
             3086      economic impediment if that company:
             3087          (i) applies to the administrator;
             3088          (ii) relocates to a rural area in Utah; and
             3089          (iii) meets the qualifications of Subsection (1)(b).
             3090          (b) Except as provided by Subsection (2), to qualify for financial assistance from the
             3091      fund, a company creating an economic impediment shall:
             3092          (i) demonstrate to the satisfaction of the administrator that the company creating an
             3093      economic impediment, its replacement company, or in the aggregate the company creating the
             3094      economic impediment and its replacement company:
             3095          (A) will expend funds in Utah with employees, vendors, subcontractors, or other
             3096      businesses in an amount proportional with monies provided from the fund at a minimum ratio


             3097      of 2 to 1 per year or other more stringent requirements as established from time to time by the
             3098      board for a minimum period of five years beginning with the date the loan or grant was
             3099      approved; and
             3100          (B) can sustain economic activity in the state sufficient to repay, by means of cash or
             3101      appropriate credits, the loan provided by the fund; and
             3102          (ii) satisfy other criteria the administrator considers appropriate.
             3103          (2) (a) The administrator may exempt a company creating an economic impediment
             3104      from the requirements of Subsection (1)(b)(i)(A) if:
             3105          (i) the financial assistance is provided to a company creating an economic impediment
             3106      for the purpose of locating all or any portion of its operations to an economically disadvantaged
             3107      rural area; or
             3108          (ii) its replacement company is part of a targeted industry.
             3109          (b) The administrator may not exempt a company creating an economic impediment
             3110      from the requirement under Subsection [ 9-2-1204 ] 63-38f-904 (2)(b) that the loan be structured
             3111      so that the repayment or return to the state equals at least the amount of the assistance together
             3112      with an annual interest charge.
             3113          (3) The administrator shall:
             3114          (a) make findings as to whether or not a company creating an economic impediment,
             3115      its replacement company, or both, have satisfied each of the conditions set forth in Subsection
             3116      (1);
             3117          (b) monitor the compliance by a company creating an economic impediment, its
             3118      replacement company, or both, with:
             3119          (i) each of the conditions set forth in Subsection (1); and
             3120          (ii) any contract or agreement under Section [ 9-2-1205.1 ] 63-38f-906 entered into
             3121      between:
             3122          (A) the company creating an economic impediment; and
             3123          (B) the state; and
             3124          (c) make funding decisions based upon appropriate findings and compliance.
             3125          Section 80. Section 63-38f-908 , which is renumbered from Section 9-2-1205.8 is
             3126      renumbered and amended to read:
             3127           [9-2-1205.8].     63-38f-908. Financial assistance to entities offering economic


             3128      opportunities.
             3129          (1) Subject to the duties and powers of the board under Section [ 9-2-204 ] 63-38f-303 ,
             3130      the administrator may provide monies from the fund to an entity offering an economic
             3131      opportunity if that entity:
             3132          (a) applies to the administrator; and
             3133          (b) meets the qualifications of Subsection (2).
             3134          (2) The applicant shall:
             3135          (a) demonstrate to the satisfaction of the administrator the nature of the economic
             3136      opportunity and the related benefit to the economic well-being of the state by providing
             3137      evidence documenting the logical and compelling linkage, either direct or indirect, between the
             3138      expenditure of monies necessitated by the economic opportunity and the likelihood that the
             3139      state's tax base will be maintained or enlarged;
             3140          (b) demonstrate how the funding request will act in concert with other state, federal, or
             3141      local agencies to achieve the economic benefit;
             3142          (c) demonstrate how the funding request will act in concert with free market principles;
             3143          (d) satisfy other criteria the administrator considers appropriate; and
             3144          (e) be either:
             3145          (i) an entity whose purpose is to exclusively or substantially promote, develop, or
             3146      maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
             3147      specific components of the state; or
             3148          (ii) a company or individual that does not otherwise qualify under Section [ 9-2-1205 ]
             3149      63-38f-905 .
             3150          (3) Subject to the duties and powers of the board under Section [ 9-2-204 ] 63-38f-303 ,
             3151      the administrator shall:
             3152          (a) make findings as to whether an applicant has satisfied each of the conditions set
             3153      forth in Subsection (2);
             3154          (b) establish benchmarks and timeframes in which progress toward the completion of
             3155      the agreed upon activity is to occur;
             3156          (c) monitor compliance by an applicant with any contract or agreement entered into by
             3157      the applicant and the state as provided by Section [ 9-2-1205.1 ] 63-38f-906 ; and
             3158          (d) make funding decisions based upon appropriate findings and compliance.


             3159          Section 81. Section 63-38f-909 , which is renumbered from Section 9-2-1207 is
             3160      renumbered and amended to read:
             3161           [9-2-1207].     63-38f-909. Annual policy considerations.
             3162          (1) The administrator, with the advice of the board, shall determine annually which
             3163      industries or groups of industries shall be targeted industries as defined in Section [ 9-2-1202 ]
             3164      63-38f-902 .
             3165          (2) In designating an economically disadvantaged rural area, the administrator, with the
             3166      advice of the board, shall consider the average agricultural and nonagricultural wage, personal
             3167      income, unemployment, and employment in the area.
             3168          (3) In evaluating the economic impact of applications for assistance, the administrator,
             3169      with the advice of the board, shall use an econometric cost-benefit model or models adopted by
             3170      the Governor's Office of Planning and Budget.
             3171          (4) The administrator, with the advice of the board, may establish:
             3172          (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
             3173      return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
             3174      Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
             3175      such as the rate of unemployment; and
             3176          (b) minimum applicant expense ratios, as long as they are at least equal to those
             3177      required under Subsection [ 9-2-1205 ] 63-38f-905 (1)(a) or [ 9-2-1205.5 ] 63-38f-907 (1)(b)(i)(A).
             3178          Section 82. Section 63-38f-1001 , which is renumbered from Section 9-2-1401 is
             3179      renumbered and amended to read:
             3180     
Part 10. Biotechnology Regulation

             3181           [9-2-1401].     63-38f-1001. Definitions.
             3182          As used in this part, "biotechnology" is:
             3183          (1) the modification of living organisms by recombinant DNA techniques; and
             3184          (2) a means to accomplish, through genetic engineering, the same kinds of
             3185      modifications accomplished through traditional genetic techniques such as crossbreeding.
             3186          Section 83. Section 63-38f-1002 , which is renumbered from Section 9-2-1402 is
             3187      renumbered and amended to read:
             3188           [9-2-1402].     63-38f-1002. Confidential information.
             3189          (1) A state agency having access under federal law to biotechnology trade secrets and


             3190      related confidential information shall manage the trade secrets and related confidential records
             3191      as protected records under Title 63, Chapter 2, Government Records Access and Management
             3192      Act.
             3193          (2) The records described in this section may be disclosed under the balancing
             3194      provisions of Title 63, Chapter 2, Government Records Access and Management Act, when a
             3195      determination is made that disclosure is essential for the protection of the public's health or
             3196      environment.
             3197          Section 84. Section 63-38f-1003 , which is renumbered from Section 9-2-1403 is
             3198      renumbered and amended to read:
             3199           [9-2-1403].     63-38f-1003. Preemption of local regulation.
             3200          (1) A county, city, town, or other political subdivision may not regulate the
             3201      technological processes relating to the development and use of biotechnologically created
             3202      materials and organisms.
             3203          (2) This preemption does not affect the powers of a county, city, town, or other
             3204      political subdivision, including [but not limited to] the power to regulate land use, business,
             3205      industry, construction, and public utilities, to protect the public health or environment, or to
             3206      provide fire protection and other public safety services.
             3207          Section 85. Section 63-38f-1101 , which is renumbered from Section 9-2-1601 is
             3208      renumbered and amended to read:
             3209     
Part 11. Recycling Market Development Zone Act

             3210           [9-2-1601].     63-38f-1101. Title.
             3211          This part is known as the "Recycling Market Development Zone Act."
             3212          Section 86. Section 63-38f-1102 , which is renumbered from Section 9-2-1602 is
             3213      renumbered and amended to read:
             3214           [9-2-1602].     63-38f-1102. Definitions.
             3215          As used in this part:
             3216          (1) "Composting" means the controlled decay of landscape waste or sewage sludge and
             3217      organic industrial waste, or a mixture of these, by the action of bacteria, fungi, molds, and other
             3218      organisms.
             3219          (2) "Postconsumer waste material" means any product generated by a business or
             3220      consumer that has served its intended end use, and that has been separated from solid waste for


             3221      the purposes of collection, recycling, and disposition and that does not include secondary waste
             3222      material.
             3223          (3) (a) "Recovered materials" means waste materials and by-products that have been
             3224      recovered or diverted from solid waste.
             3225          (b) "Recovered materials" does not include those materials and by-products generated
             3226      from, and commonly reused within, an original manufacturing process.
             3227          (4) (a) "Recycling" means the diversion of materials from the solid waste stream and
             3228      the beneficial use of the materials and includes a series of activities by which materials that
             3229      would become or otherwise remain waste are diverted from the waste stream for collection,
             3230      separation, and processing, and are used as raw materials or feedstocks in lieu of or in addition
             3231      to virgin materials in the manufacture of goods sold or distributed in commerce or the reuse of
             3232      the materials as substitutes for goods made from virgin materials.
             3233          (b) "Recycling" does not include burning municipal solid waste for energy recovery.
             3234          (5) "Recycling market development zone" or "zone" means an area designated by the
             3235      [department] office as meeting the requirements of this part.
             3236          (6) (a) "Secondary waste material" means industrial by-products that go to disposal
             3237      facilities and waste generated after completion of a manufacturing process.
             3238          (b) "Secondary waste material" does not include internally generated scrap commonly
             3239      returned to industrial or manufacturing processes, such as home scrap and mill broke.
             3240          (7) "State tax incentives," "tax incentives," or "tax benefits" means the tax credits
             3241      available under Sections 59-7-608 and 59-10-108.7 .
             3242          Section 87. Section 63-38f-1103 , which is renumbered from Section 9-2-1603 is
             3243      renumbered and amended to read:
             3244           [9-2-1603].     63-38f-1103. Duties of the office.
             3245          The [department] office shall:
             3246          (1) facilitate recycling development zones through state support of county incentives
             3247      which encourage development of manufacturing enterprises that use recycling materials
             3248      currently collected;
             3249          (2) evaluate an application from a county or municipality executive authority to be
             3250      designated as a recycling market development zone and determine if the county or municipality
             3251      qualifies for that designation;


             3252          (3) provide technical assistance to municipalities and counties in developing
             3253      applications for designation as a recycling market development zone;
             3254          (4) assist counties and municipalities designated as recycling market development
             3255      zones in obtaining assistance from the federal government and agencies of the state;
             3256          (5) assist any qualified business in obtaining the benefits of any incentive or
             3257      inducement program authorized by this part;
             3258          (6) monitor the implementation and operation of this part and conduct a continuing
             3259      evaluation of the progress made in the recycling market development zone; and
             3260          (7) submit an annual written report evaluating the effectiveness of the program and
             3261      providing recommendations for legislation to the Workforce Services and Economic
             3262      Development Interim Committee and Natural Resources, Agriculture, and Environment Interim
             3263      Committee not later than November 1 of each year.
             3264          Section 88. Section 63-38f-1104 , which is renumbered from Section 9-2-1604 is
             3265      renumbered and amended to read:
             3266           [9-2-1604].     63-38f-1104. Criteria for recycling market development zone --
             3267      Application process and fees.
             3268          (1) An area may be designated as a recycling market development zone only if:
             3269          (a) the county or municipality agrees to make a qualifying local contribution under
             3270      Section [ 9-2-1605 ] 63-38f-1105 ; and
             3271          (b) the county or municipality provides for postconsumer waste collection for recycling
             3272      within the county or municipality.
             3273          (2) The executive authority of any municipality or county desiring to be designated as a
             3274      recycling market development zone shall:
             3275          (a) obtain the written approval of the municipality or county's legislative body; and
             3276          (b) file an application with the [department] office demonstrating the county or
             3277      municipality meets the requirements of this part.
             3278          (3) The application shall be in a form prescribed by the [department] office, and shall
             3279      include:
             3280          (a) a plan developed by the county or municipality that identifies local contributions
             3281      meeting the requirements of Section [ 9-2-1605 ] 63-38f-1105 ;
             3282          (b) a county or municipality development plan that outlines:


             3283          (i) the specific investment or development reasonably expected to take place;
             3284          (ii) any commitments obtained from businesses to participate, and in what capacities
             3285      regarding recycling markets;
             3286          (iii) the county's or municipality's economic development plan and demonstration of
             3287      coordination between the zone and the county or municipality in overall development goals;
             3288          (iv) zoning requirements demonstrating that sufficient portions of the proposed zone
             3289      area are zoned as appropriate for the development of commercial, industrial, or manufacturing
             3290      businesses;
             3291          (v) the county's or municipality's long-term waste management plan and evidence that
             3292      the zone will be adequately served by the plan; and
             3293          (vi) the county or municipality postconsumer waste collection infrastructure;
             3294          (c) the county's or municipality's proposed means of assessing the effectiveness of the
             3295      development plan or other programs implemented within the zone;
             3296          (d) state whether within the zone either of the following will be established:
             3297          (i) commercial manufacturing or industrial processes that will produce end products
             3298      that consist of not less than 50% recovered materials, of which not less than 25% is
             3299      postconsumer waste material; or
             3300          (ii) commercial composting;
             3301          (e) any additional information required by the [department] office; and
             3302          (f) any additional information the county or municipality considers relevant to its
             3303      designation as a recycling market development zone.
             3304          (4) A county or municipality applying for designation as a recycling market
             3305      development zone shall pay to the [department] office an application fee determined under
             3306      Section 63-38-3.2 .
             3307          Section 89. Section 63-38f-1105 , which is renumbered from Section 9-2-1605 is
             3308      renumbered and amended to read:
             3309           [9-2-1605].     63-38f-1105. Qualifying local contributions.
             3310          Qualifying local contributions to the recycling market development zone may vary
             3311      depending on available resources, and may include:
             3312          (1) simplified procedures for obtaining permits;
             3313          (2) dedication of available government grants;


             3314          (3) waiver of business license or permit fees;
             3315          (4) infrastructure improvements;
             3316          (5) private contributions;
             3317          (6) utility rate concessions;
             3318          (7) suspension or relaxation of locally originated zoning laws or general plans; and
             3319          (8) other proposed local contributions as the [department] office finds promote the
             3320      purposes of this part.
             3321          Section 90. Section 63-38f-1106 , which is renumbered from Section 9-2-1606 is
             3322      renumbered and amended to read:
             3323           [9-2-1606].     63-38f-1106. Eligibility review.
             3324          (1) The [department] office shall:
             3325          (a) review and evaluate an application submitted under Section [ 9-2-1604 ]
             3326      63-38f-1104 ; and
             3327          (b) determine whether the municipality or county is eligible for designation as a
             3328      recycling market development zone.
             3329          (2) In designating recycling market development zones, the [department] office shall
             3330      consider:
             3331          (a) whether the current waste management practices and conditions of the county or
             3332      municipality are favorable to the development of postconsumer waste material markets;
             3333          (b) whether the creation of the zone is necessary to assist in attracting private sector
             3334      recycling investments to the area; and
             3335          (c) the amount of available landfill capacity to serve the zone.
             3336          Section 91. Section 63-38f-1107 , which is renumbered from Section 9-2-1607 is
             3337      renumbered and amended to read:
             3338           [9-2-1607].     63-38f-1107. Quarterly consideration.
             3339          The [department] office shall take action quarterly on any application requesting
             3340      designation as a recycling market development zone.
             3341          Section 92. Section 63-38f-1108 , which is renumbered from Section 9-2-1608 is
             3342      renumbered and amended to read:
             3343           [9-2-1608].     63-38f-1108. Duration of designation.
             3344          A recycling market development zone designation ends five years from the date the


             3345      [department] office designates the area as a recycling market development zone, at the end of
             3346      which the county or municipality may reapply for the designation.
             3347          Section 93. Section 63-38f-1109 , which is renumbered from Section 9-2-1609 is
             3348      renumbered and amended to read:
             3349           [9-2-1609].     63-38f-1109. Revocation of designations.
             3350          (1) The [department] office may revoke the designation of a recycling market
             3351      development zone if no businesses utilize the tax incentives during any calendar year.
             3352          (2) Before revocation of the zone, the [department] office shall conduct a public
             3353      hearing within a reasonable distance of the zone to determine reasons for inactivity and explore
             3354      possible alternative actions.
             3355          Section 94. Section 63-38f-1110 , which is renumbered from Section 9-2-1610 is
             3356      renumbered and amended to read:
             3357           [9-2-1610].     63-38f-1110. Recycling market development zones credit.
             3358          For a taxpayer within a recycling market development zone, there are allowed the
             3359      credits against tax as provided by Sections 59-7-610 and 59-10-108.7 .
             3360          Section 95. Section 63-38f-1111 , which is renumbered from Section 9-2-1611 is
             3361      renumbered and amended to read:
             3362           [9-2-1611].     63-38f-1111. Annual report -- Rulemaking.
             3363          (1) A county or municipality designated as a recycling market development zone shall
             3364      report by no later than July 31 of each year to the [department] office regarding the economic
             3365      activity that has occurred in the zone following the designation.
             3366          (2) [In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             3367      the department may make rules providing for] The office shall prescribe the form[,] and
             3368      content[, and submittal] of the annual reports.
             3369          Section 96. Section 63-38f-1112 , which is renumbered from Section 9-2-1612 is
             3370      renumbered and amended to read:
             3371           [9-2-1612].     63-38f-1112. Centers of excellence.
             3372          In accordance with Part 6, the [department] office may award grants to the Centers of
             3373      Excellence, as defined by Section [ 9-2-602 ] 63-38f-703 , to fund development of new
             3374      technology for recycling if the program funded is a cooperative effort between the Centers of
             3375      Excellence and one or more recycling market development zones created under this part.


             3376          Section 97. Section 63-38f-1201 , which is renumbered from Section 9-2-1901 is
             3377      renumbered and amended to read:
             3378     
Part 12. Utah Venture Capital Enhancement Act

             3379           [9-2-1901].     63-38f-1201. Title.
             3380          This part is known as the "Utah Venture Capital Enhancement Act."
             3381          Section 98. Section 63-38f-1202 , which is renumbered from Section 9-2-1902 is
             3382      renumbered and amended to read:
             3383           [9-2-1902].     63-38f-1202. Findings -- Purpose.
             3384          (1) The Legislature finds that:
             3385          (a) fundamental changes have occurred in national and international financial markets
             3386      and in the state's financial markets;
             3387          (b) a critical shortage of seed and venture capital resources exists in the state, and that
             3388      shortage is impairing the growth of commerce in the state;
             3389          (c) a need exists to increase the availability of venture equity capital for emerging,
             3390      expanding, and restructuring enterprises in Utah, including enterprises in the life sciences,
             3391      advanced manufacturing, and information technology;
             3392          (d) increased venture equity capital investments in emerging, expanding, and
             3393      restructuring enterprises in Utah will:
             3394          (i) create new jobs in the state; and
             3395          (ii) help to diversify the state's economic base; and
             3396          (e) a well-trained work force is critical for the maintenance and development of Utah's
             3397      economy.
             3398          (2) This part is enacted to:
             3399          (a) mobilize private investment in a broad variety of venture capital partnerships in
             3400      diversified industries and locales;
             3401          (b) retain the private-sector culture of focusing on rate of return in the investing
             3402      process;
             3403          (c) secure the services of the best managers in the venture capital industry, regardless
             3404      of location;
             3405          (d) facilitate the organization of the Utah fund of funds to seek private investments and
             3406      to serve as a catalyst in those investments by offering state incentives for private persons to


             3407      make investments in the Utah fund of funds;
             3408          (e) enhance the venture capital culture and infrastructure in the state so as to increase
             3409      venture capital investment within the state and to promote venture capital investing within the
             3410      state; and
             3411          (f) accomplish the purposes referred to in Subsections (2)(a) through (e) in a manner
             3412      that would maximize the direct economic impact for the state.
             3413          Section 99. Section 63-38f-1203 , which is renumbered from Section 9-2-1903 is
             3414      renumbered and amended to read:
             3415           [9-2-1903].     63-38f-1203. Definitions.
             3416          As used in this part:
             3417          (1) "Board" means the Utah Capital Investment Board.
             3418          (2) "Certificate" means a contract between the board and a designated investor under
             3419      which a contingent tax credit is available and issued to the designated investor.
             3420          (3) "Commitment" means a written commitment by a designated purchaser to purchase
             3421      from the board certificates presented to the board for redemption by a designated investor.
             3422      Each commitment shall state the dollar amount of contingent tax credits that the designated
             3423      purchaser has committed to purchase from the board.
             3424          (4) "Contingent tax credit" means a contingent tax credit issued under this part that is
             3425      available against tax liabilities imposed by Title 59, Chapter 7, Corporate Franchise and
             3426      Income Taxes, and Chapter 10, Individual Income Tax Act, if there are insufficient funds in the
             3427      redemption reserve and the board has not exercised other options for redemption under
             3428      Subsection [ 9-2-1920 ] 63-38f-1220 (3)(b).
             3429          (5) "Corporation" means the Utah Capital Investment Corporation created under
             3430      Section [ 9-2-1907 ] 63-38f-1207 .
             3431          (6) "Designated investor" means:
             3432          (a) a person who purchases an equity interest in the Utah fund of funds; or
             3433          (b) a transferee of a certificate or contingent tax credit.
             3434          (7) "Designated purchaser" means:
             3435          (a) a person who enters into a written undertaking with the board to purchase a
             3436      commitment; or
             3437          (b) a transferee who assumes the obligations to make the purchase described in the


             3438      commitment.
             3439          (8) "Person" means an individual, partnership, limited liability company, corporation,
             3440      association, organization, business trust, estate, trust, or any other legal or commercial entity.
             3441          (9) "Redemption reserve" means the reserve established by the corporation to facilitate
             3442      the cash redemption of certificates.
             3443          (10) "Utah fund of funds" means a limited partnership or limited liability company
             3444      established under Section [ 9-2-1913 ] 63-38f-1213 in which a designated investor purchases an
             3445      equity interest.
             3446          Section 100. Section 63-38f-1204 , which is renumbered from Section 9-2-1904 is
             3447      renumbered and amended to read:
             3448           [9-2-1904].     63-38f-1204. Utah Capital Investment Board.
             3449          (1) There is created within the [department] office the Utah Capital Investment Board
             3450      to exercise the powers conferred by this part.
             3451          (2) The purpose of the board is to mobilize venture equity capital for investment in a
             3452      manner that will result in a significant potential to create jobs and to diversify and stabilize the
             3453      economy of the state.
             3454          (3) In the exercise of its powers and duties, the board is considered to be performing an
             3455      essential public purpose.
             3456          Section 101. Section 63-38f-1205 , which is renumbered from Section 9-2-1905 is
             3457      renumbered and amended to read:
             3458           [9-2-1905].     63-38f-1205. Board members -- Meetings -- Expenses.
             3459          (1) (a) The board shall consist of five members.
             3460          (b) Of the five members:
             3461          (i) one shall be the state treasurer;
             3462          (ii) one shall be the director or the director's designee; and
             3463          (iii) three shall be appointed by the governor and confirmed by the Senate.
             3464          (c) The three members appointed by the governor shall serve four-year staggered terms
             3465      with the initial terms of the first three members to be four years for one member, three years for
             3466      one member, and two years for one member.
             3467          (2) When a vacancy occurs in the membership of the board for any reason, the vacancy
             3468      shall be:


             3469          (a) filled in the same manner as the appointment of the original member; and
             3470          (b) for the unexpired term of the board member being replaced.
             3471          (3) Appointed members of the board may not serve more than two full consecutive
             3472      terms except where the governor determines that an additional term is in the best interest of the
             3473      state.
             3474          (4) Three members of the board constitute a quorum for conducting business and
             3475      exercising board power, provided that a minimum of three affirmative votes is required for
             3476      board action and at least one of the affirmative votes is cast by either the director or the
             3477      director's designee or the state treasurer.
             3478          (5) (a) Members of the board may not receive compensation or benefits for their
             3479      services, but may receive per diem and expenses incurred in the performance of the members'
             3480      official duties at rates established by the Division of Finance under Sections 63A-3-106 and
             3481      63A-3-107 .
             3482          (b) Members of the board may decline to receive per diem and expenses for their
             3483      services.
             3484          (6) Members of the board shall be selected on the basis of demonstrated expertise and
             3485      competence in:
             3486          (a) the supervision of investment managers;
             3487          (b) the fiduciary management of investment funds; or
             3488          (c) the management and administration of tax credit allocation programs.
             3489          (7) The board and its members are considered to be a governmental entity with all of
             3490      the rights, privileges, and immunities of a governmental entity of the state, including all of the
             3491      rights and benefits conferred under Title 63, Chapter [30, Utah] 30d, Governmental Immunity
             3492      Act of Utah.
             3493          (8) Meetings of the board, except to the extent necessary to protect confidential
             3494      information with respect to investments in the Utah fund of funds, are subject to Title 52,
             3495      Chapter 4, Open and Public Meetings.
             3496          Section 102. Section 63-38f-1206 , which is renumbered from Section 9-2-1906 is
             3497      renumbered and amended to read:
             3498           [9-2-1906].     63-38f-1206. Board duties and powers.
             3499          (1) The board shall:


             3500          (a) establish criteria and procedures for the allocation and issuance of contingent tax
             3501      credits to designated investors by means of certificates issued by the board, provided that a
             3502      contingent tax credit may not be issued unless the Utah fund of funds:
             3503          (i) first agrees to treat the amount of the tax credit redeemed by the state as a loan from
             3504      the state to the Utah fund of funds; and
             3505          (ii) agrees to repay the loan upon terms and conditions established by the board;
             3506          (b) establish criteria and procedures for assessing the likelihood of future certificate
             3507      redemptions by designated investors, including:
             3508          (i) criteria and procedures for evaluating the value of investments made by the Utah
             3509      fund of funds; and
             3510          (ii) the returns from the Utah fund of funds;
             3511          (c) establish criteria and procedures for registering and redeeming contingent tax
             3512      credits by designated investors holding certificates issued by the board;
             3513          (d) establish a target rate of return or range of returns on venture capital investments of
             3514      the Utah fund of funds;
             3515          (e) establish criteria and procedures governing commitments obtained by the board
             3516      from designated purchasers including:
             3517          (i) entering into commitments with designated purchasers; and
             3518          (ii) drawing on commitments to redeem certificates from designated investors; and
             3519          (f) have power to:
             3520          (i) expend funds;
             3521          (ii) invest funds;
             3522          (iii) enter into contracts;
             3523          (iv) insure against loss; and
             3524          (v) perform any other act necessary to carry out its purpose[; and].
             3525          [(g) (i) make, amend, and revoke rules for the conduct of its affairs, consistent with this
             3526      part and in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act;]
             3527          [(ii) all rules made by the board under Subsection (1)(g)(i) are subject to review by the
             3528      Legislative Management Committee:]
             3529          [(A) whenever made, modified, or revoked; and]
             3530          [(B) in each even-numbered year; and]


             3531          [(iii) Subsection (1)(g)(ii) does not preclude the Legislature's Administrative Rules
             3532      Review Committee from reviewing and taking appropriate action on any rule made, amended,
             3533      or revoked by the board.]
             3534          (2) (a) The criteria and procedures established by the board for the allocation and
             3535      issuance of contingent tax credits shall:
             3536          (i) include the contingencies that must be met for a certificate and its related tax credits
             3537      to be:
             3538          (A) issued by the board;
             3539          (B) transferred by a designated investor; and
             3540          (C) redeemed by a designated investor in order to receive a contingent tax credit; and
             3541          (ii) tie the contingencies for redemption of certificates to the targeted rates of return
             3542      and scheduled redemptions of equity interests purchased by designated investors in the Utah
             3543      fund of funds.
             3544          (b) The board may not issue contingent tax credits under this part prior to July 1, 2004.
             3545          (3) (a) The board may charge a placement fee to the Utah fund of funds for the
             3546      issuance of a certificate and related contingent tax credit to a designated investor.
             3547          (b) The fee shall:
             3548          (i) be charged only to pay for reasonable and necessary costs of the board; and
             3549          (ii) not exceed .5% of the equity investment of the designated investor.
             3550          (4) The board's criteria and procedures for redeeming certificates:
             3551          (a) shall give priority to the redemption amount from the available funds in the
             3552      redemption reserve; and
             3553          (b) to the extent there are insufficient funds in the redemption reserve to redeem
             3554      certificates, shall grant the board the option to redeem certificates:
             3555          (i) by certifying a contingent tax credit to the designated investor; or
             3556          (ii) by making demand on designated purchasers consistent with the requirements of
             3557      Section [ 9-2-1921 ] 63-38f-1221 .
             3558          (5) (a) The board shall, in consultation with the corporation, publish an annual report
             3559      of the activities conducted by the Utah fund of funds, and present the report to the governor and
             3560      the Executive Appropriations Committee of the Legislature.
             3561          (b) The annual report shall:


             3562          (i) include a copy of the audit of the Utah fund of funds and a valuation of the assets of
             3563      the Utah fund of funds;
             3564          (ii) review the progress of the investment fund allocation manager in implementing its
             3565      investment plan; and
             3566          (iii) describe any redemption or transfer of a certificate issued under this part.
             3567          (c) The annual report may not identify any specific designated investor who has
             3568      redeemed or transferred a certificate.
             3569          (d) (i) Beginning July 1, [2005] 2006, and thereafter every two years, the board shall
             3570      publish a progress report which shall evaluate the progress of the state in accomplishing the
             3571      purposes stated in Section [ 9-2-1902 ] 63-38f-1202 .
             3572          (ii) The board shall give a copy of the report to the Legislature.
             3573          Section 103. Section 63-38f-1207 , which is renumbered from Section 9-2-1907 is
             3574      renumbered and amended to read:
             3575           [9-2-1907].     63-38f-1207. Utah Capital Investment Corporation -- Powers and
             3576      purposes.
             3577          (1) (a) There is created an independent quasi-public nonprofit corporation known as the
             3578      Utah Capital Investment Corporation.
             3579          (b) The corporation:
             3580          (i) may exercise all powers conferred on independent corporations under Section
             3581      63E-2-106 ;
             3582          (ii) is subject to the prohibited participation provisions of Section 63E-2-107 ; and
             3583          (iii) is subject to the other provisions of Title 63E, Chapter 2, Independent
             3584      Corporations Act, except as otherwise provided in this part.
             3585          (c) The corporation shall file with the Division of Corporations and Commercial Code:
             3586          (i) articles of incorporation; and
             3587          (ii) any amendment to its articles of incorporation.
             3588          (d) In addition to the articles of incorporation, the corporation may adopt bylaws and
             3589      operational policies that are consistent with this chapter.
             3590          (e) Except as otherwise provided in this part, this part does not exempt the corporation
             3591      from the requirements under state law which apply to other corporations organized under Title
             3592      63E, Chapter 2, Independent Corporations Act.


             3593          (2) The purposes of the corporation are to:
             3594          (a) organize the Utah fund of funds;
             3595          (b) select a venture capital investment fund allocation manager to make venture capital
             3596      fund investments by the Utah fund of funds;
             3597          (c) negotiate the terms of a contract with the venture capital investment fund allocation
             3598      manager;
             3599          (d) execute the contract with the selected venture capital investment fund manager on
             3600      behalf of the Utah fund of funds;
             3601          (e) receive funds paid by designated investors for the issuance of certificates by the
             3602      board for investment in the Utah fund of funds;
             3603          (f) receive investment returns from the Utah fund of funds; and
             3604          (g) establish the redemption reserve to be used by the corporation to redeem
             3605      certificates.
             3606          (3) The corporation may not:
             3607          (a) exercise governmental functions;
             3608          (b) have members;
             3609          (c) pledge the credit or taxing power of the state or any political subdivision of the
             3610      state; or
             3611          (d) make its debts payable out of any moneys except those of the corporation.
             3612          (4) The obligations of the corporation are not obligations of the state or any political
             3613      subdivision of the state within the meaning of any constitutional or statutory debt limitations,
             3614      but are obligations of the corporation payable solely and only from the corporation's funds.
             3615          (5) The corporation may:
             3616          (a) engage consultants and legal counsel;
             3617          (b) expend funds;
             3618          (c) invest funds;
             3619          (d) enter into contracts;
             3620          (e) insure against loss;
             3621          (f) hire employees; and
             3622          (g) perform any other act necessary to carry out its purposes.
             3623          Section 104. Section 63-38f-1208 , which is renumbered from Section 9-2-1908 is


             3624      renumbered and amended to read:
             3625           [9-2-1908].     63-38f-1208. Incorporator -- Appointment committee.
             3626          (1) To facilitate the organization of the corporation, the director or the director's
             3627      designee shall serve as the incorporator as provided in Section 16-6a-201 .
             3628          (2) To assist in the organization of the corporation, the Utah Board of Business and
             3629      Economic Development shall appoint three individuals to serve on an appointment committee.
             3630          (3) The appointment committee shall:
             3631          (a) elect the initial board of directors of the corporation;
             3632          (b) exercise due care to assure that persons elected to the initial board of directors have
             3633      the requisite financial experience necessary in order to carry out the duties of the corporation as
             3634      established in this part, including in areas related to:
             3635          (i) venture capital investment;
             3636          (ii) investment management; and
             3637          (iii) supervision of investment managers and investment funds; and
             3638          (c) terminate its existence upon the election of the initial board of directors of the
             3639      corporation.
             3640          (4) The [division] office shall assist the incorporator and the appointment committee in
             3641      any manner determined necessary and appropriate by the incorporator and appointment
             3642      committee in order to administer this section.
             3643          Section 105. Section 63-38f-1209 , which is renumbered from Section 9-2-1909 is
             3644      renumbered and amended to read:
             3645           [9-2-1909].     63-38f-1209. Board of directors.
             3646          (1) The initial board of directors of the corporation shall consist of five members.
             3647          (2) The persons elected to the initial board of directors by the appointment committee
             3648      shall include persons who have an expertise, as considered appropriate by the appointment
             3649      committee, in the areas of:
             3650          (a) the selection and supervision of investment managers;
             3651          (b) fiduciary management of investment funds; and
             3652          (c) other areas of expertise as considered appropriate by the appointment committee.
             3653          (3) After the election of the initial board of directors, vacancies in the board of
             3654      directors of the corporation shall be filled by election by the remaining directors of the


             3655      corporation.
             3656          (4) (a) Board members shall serve four-year terms, except that of the five initial
             3657      members:
             3658          (i) two shall serve four-year terms;
             3659          (ii) two shall serve three-year terms; and
             3660          (iii) one shall serve a two-year term.
             3661          (b) Board members shall serve until their successors are elected and qualified and may
             3662      serve successive terms.
             3663          (c) A majority of the board members may remove a board member for cause.
             3664          (d) (i) The board shall select a chair by majority vote.
             3665          (ii) The chair's term is for one year.
             3666          (5) Three members of the board are a quorum for the transaction of business.
             3667          (6) Members of the board of directors:
             3668          (a) are subject to any restrictions on conflicts of interest specified in the organizational
             3669      documents of the corporation; and
             3670          (b) may have no interest in any:
             3671          (i) venture capital investment fund allocation manager selected by the corporation
             3672      under this part; or
             3673          (ii) investments made by the Utah fund of funds.
             3674          (7) Directors of the corporation:
             3675          (a) shall be compensated for direct expenses and mileage; and
             3676          (b) may not receive a director's fee or salary for service as directors.
             3677          Section 106. Section 63-38f-1210 , which is renumbered from Section 9-2-1910 is
             3678      renumbered and amended to read:
             3679           [9-2-1910].     63-38f-1210. Investment manager.
             3680          (1) After incorporation, the corporation shall conduct a national solicitation for
             3681      investment plan proposals from qualified venture capital investment fund allocation managers
             3682      for the raising and investing of capital by the Utah fund of funds in accordance with the
             3683      requirements of this part.
             3684          (2) Any proposed investment plan shall address the applicant's:
             3685          (a) level of:


             3686          (i) experience; and
             3687          (ii) quality of management;
             3688          (b) investment philosophy and process;
             3689          (c) probability of success in fund-raising;
             3690          (d) prior investment fund results; and
             3691          (e) plan for achieving the purposes of this part.
             3692          (3) The selected venture capital investment fund allocation manager shall have
             3693      substantial, successful experience in the design, implementation, and management of seed and
             3694      venture capital investment programs and in capital formation.
             3695          (4) The corporation shall only select a venture capital investment fund allocation
             3696      manager:
             3697          (a) with demonstrated expertise in the management and fund allocation of investments
             3698      in venture capital funds; and
             3699          (b) considered best qualified to:
             3700          (i) invest the capital of the Utah fund of funds; and
             3701          (ii) generate the amount of capital required by this part.
             3702          Section 107. Section 63-38f-1211 , which is renumbered from Section 9-2-1911 is
             3703      renumbered and amended to read:
             3704           [9-2-1911].     63-38f-1211. Management fee -- Additional financial assistance.
             3705          (1) The corporation may charge a management fee on assets under management in the
             3706      Utah fund of funds.
             3707          (2) The fee shall:
             3708          (a) be in addition to any fee charged to the Utah fund of funds by the venture capital
             3709      investment fund allocation manager selected by the corporation; and
             3710          (b) be charged only to pay for reasonable and necessary costs of the corporation.
             3711          (3) The corporation may apply for and, when qualified, receive financial assistance
             3712      from the Industrial Assistance Fund under Title 9, Chapter 2, Part 12, Industrial Assistance
             3713      Fund, [and under rules made by the Board of Business and Economic Development in
             3714      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,] to help establish
             3715      the program authorized under this part.
             3716          Section 108. Section 63-38f-1212 , which is renumbered from Section 9-2-1912 is


             3717      renumbered and amended to read:
             3718           [9-2-1912].     63-38f-1212. Dissolution.
             3719          (1) Upon the dissolution of the Utah fund of funds, the corporation shall be liquidated
             3720      and dissolved.
             3721          (2) Upon dissolution or privatization of the corporation, any assets owned by the
             3722      corporation shall be distributed to one or more Utah nonprofit tax exempt organizations to be
             3723      designated by the Legislature for the purposes listed in Section [ 9-2-1902 ] 63-38f-1202 as
             3724      provided in Title 63E, Chapter 1, Independent Entities Act.
             3725          Section 109. Section 63-38f-1213 , which is renumbered from Section 9-2-1913 is
             3726      renumbered and amended to read:
             3727           [9-2-1913].     63-38f-1213. Organization of Utah fund of funds.
             3728          (1) The corporation shall organize the Utah fund of funds.
             3729          (2) The Utah fund of funds shall make investments in private seed and venture capital
             3730      partnerships or entities in a manner and for the following purposes:
             3731          (a) to encourage the availability of a wide variety of venture capital in the state;
             3732          (b) to strengthen the economy of the state;
             3733          (c) to help business in the state gain access to sources of capital;
             3734          (d) to help build a significant, permanent source of capital available to serve the needs
             3735      of businesses in the state; and
             3736          (e) to accomplish all these benefits in a way that minimizes the use of contingent tax
             3737      credits.
             3738          (3) The Utah fund of funds shall be organized:
             3739          (a) as a limited partnership or limited liability company under Utah law having the
             3740      corporation as the general partner or manager; and
             3741          (b) to provide for equity interests for designated investors which provide for a
             3742      designated scheduled rate of return and a scheduled redemption in accordance with rules made
             3743      by the board pursuant to Title 63, Chapter 46a, Utah Administrative Rulemaking Act.
             3744          (4) Public money may not be invested in the Utah fund of funds.
             3745          Section 110. Section 63-38f-1214 , which is renumbered from Section 9-2-1914 is
             3746      renumbered and amended to read:
             3747           [9-2-1914].     63-38f-1214. Compensation from the Utah fund of funds to the


             3748      corporation -- Redemption reserve.
             3749          (1) The corporation shall be compensated for its involvement in the Utah fund of funds
             3750      through the payment of the management fee described in Section [ 9-2-1911 ] 63-38f-1211 .
             3751          (2) (a) Any returns in excess of those payable to designated investors shall be deposited
             3752      in the redemption reserve and held by the corporation as a first priority reserve for the
             3753      redemption of certificates.
             3754          (b) Any returns received by the corporation from investment of amounts held in the
             3755      redemption reserve shall be added to the redemption reserve until it has reached a total of
             3756      $100,000,000.
             3757          (c) If at the end of any calendar year the redemption reserve exceeds the $100,000,000
             3758      limitation referred to in Subsection (2)(b), the excess shall be reinvested in the Utah fund of
             3759      funds.
             3760          (3) Funds held by the corporation in the redemption reserve shall be invested in
             3761      accordance with Title 51, Chapter 7, State Money Management Act.
             3762          Section 111. Section 63-38f-1215 , which is renumbered from Section 9-2-1915 is
             3763      renumbered and amended to read:
             3764           [9-2-1915].     63-38f-1215. Investments by Utah fund of funds.
             3765          (1) The Utah fund of funds shall invest funds:
             3766          (a) principally in high-quality venture capital funds managed by investment managers
             3767      who have:
             3768          (i) made a commitment to equity investments in businesses located within the state;
             3769      and
             3770          (ii) have committed to maintain a physical presence within the state;
             3771          (b) in private venture capital funds and not in direct investments in individual
             3772      businesses; and
             3773          (c) in venture capital funds with experienced managers or management teams with
             3774      demonstrated expertise and a successful history in the investment of venture capital funds.
             3775          (2) (a) The Utah fund of funds shall give priority to investments in private seed and
             3776      venture capital partnerships and entities that have demonstrated a commitment to the state as
             3777      evidenced by:
             3778          (i) the investments they have made in Utah-based entities;


             3779          (ii) the correspondent relationships they have established with Utah-based venture
             3780      capital funds; or
             3781          (iii) the commitment they have made to expand the reach of expertise within the state
             3782      by adding additional investment areas of expertise.
             3783          (b) The manager of the Utah fund of funds may waive the priorities under Subsection
             3784      (2)(a) only if necessary to achieve the targeted investment returns required to attract designated
             3785      investors.
             3786          (3) The Utah fund of funds may invest funds in a newly created venture capital fund
             3787      only if the managers or management team of the fund have the experience, expertise, and a
             3788      successful history in the investment of venture capital funds as described in Subsection (1)(c).
             3789          (4) (a) An investment or investments by the fund of funds in any venture capital fund
             3790      may comprise no more than 20% of the total committed capital in the venture capital fund.
             3791          (b) (i) No more than 50% of the funds invested by the fund of funds may be made with
             3792      venture capital entities with offices in the state established prior to July 1, 2002.
             3793          (ii) The restriction under Subsection (4)(b)(i) shall remain in place until three
             3794      additional venture capital entities open new offices in the state.
             3795          Section 112. Section 63-38f-1216 , which is renumbered from Section 9-2-1916 is
             3796      renumbered and amended to read:
             3797           [9-2-1916].     63-38f-1216. Powers of Utah fund of funds.
             3798          (1) The Utah fund of funds may:
             3799          (a) engage consultants and legal counsel;
             3800          (b) expend funds;
             3801          (c) invest funds;
             3802          (d) enter into contracts;
             3803          (e) insure against loss;
             3804          (f) hire employees;
             3805          (g) issue equity interests to designated investors that have purchased certificates from
             3806      the board; and
             3807          (h) perform any other act necessary to carry out its purposes.
             3808          (2) (a) The Utah fund of funds shall engage a venture capital investment fund
             3809      allocation manager.


             3810          (b) The compensation paid to the fund manager shall be in addition to the management
             3811      fee paid to the corporation under Section [ 9-2-1911 ] 63-38f-1211 .
             3812          (3) The Utah fund of funds may:
             3813          (a) issue debt and borrow the funds needed to accomplish its goals;
             3814          (b) not secure its debt with contingent tax credits issued by the board;
             3815          (c) open and manage bank and short-term investment accounts as considered necessary
             3816      by the venture capital investment fund allocation manager; and
             3817          (d) expend moneys to secure investment ratings for investments by designated
             3818      investors in the Utah fund of funds.
             3819          Section 113. Section 63-38f-1217 , which is renumbered from Section 9-2-1917 is
             3820      renumbered and amended to read:
             3821           [9-2-1917].     63-38f-1217. Annual audits.
             3822          (1) Each calendar year, an audit of the activities of the Utah fund of funds shall be
             3823      made as described in this section.
             3824          (2) (a) The audit shall be conducted by:
             3825          (i) the state auditor; or
             3826          (ii) an independent auditor engaged by the state auditor.
             3827          (b) An independent auditor used under Subsection (2)(a)(ii) must have no business,
             3828      contractual, or other connection to:
             3829          (i) the corporation; or
             3830          (ii) the Utah fund of funds.
             3831          (3) The corporation shall pay the costs associated with the annual audit.
             3832          (4) The annual audit report shall:
             3833          (a) be delivered to:
             3834          (i) the corporation; and
             3835          (ii) the board; and
             3836          (b) include a valuation of the assets owned by the Utah fund of funds as of the end of
             3837      the reporting year.
             3838          Section 114. Section 63-38f-1218 , which is renumbered from Section 9-2-1918 is
             3839      renumbered and amended to read:
             3840           [9-2-1918].     63-38f-1218. Certificates and contingent tax credits.


             3841          (1) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
             3842      board, in consultation with the State Tax Commission, shall make rules governing the form,
             3843      issuance, and redemption of certificates.
             3844          (2) The board's issuance of certificates and related contingent tax credits to designated
             3845      investors shall be subject to the following:
             3846          (a) the aggregate outstanding certificates may not exceed a total of $100,000,000 of
             3847      contingent tax credits;
             3848          (b) the certificates shall be issued contemporaneously with an investment in the Utah
             3849      fund of funds by a designated investor;
             3850          (c) contingent tax credits shall be issued in a manner that not more than $20,000,000 of
             3851      contingent tax credits may be initially redeemable in any fiscal year; and
             3852          (d) the credits are certifiable if there are insufficient funds in the redemption reserve to
             3853      make a cash redemption and the board does not exercise its other options under Subsection
             3854      [ 9-2-1920 ] 63-38f-1220 (3)(b).
             3855          (3) In determining the $100,000,000 maximum limit in Subsection (2)(a) and the
             3856      $20,000,000 limitation in Subsection (2)(c):
             3857          (a) the board shall use the cumulative amount of scheduled aggregate returns on
             3858      certificates issued by the board to designated investors;
             3859          (b) certificates and related contingent tax credits which have expired may not be
             3860      included; and
             3861          (c) certificates and related contingent tax credits which have been redeemed shall be
             3862      included only to the extent of tax credits actually allowed.
             3863          (4) Contingent tax credits are subject to the following:
             3864          (a) a contingent tax credit may not be redeemed except by a designated investor in
             3865      accordance with the terms of a certificate from the board;
             3866          (b) a contingent tax credit may not be redeemed prior to the time the Utah fund of
             3867      funds receives full payment from the designated investor for the certificate;
             3868          (c) a contingent tax credit shall be claimed for a tax year that begins during the
             3869      calendar year maturity date stated on the certificate;
             3870          (d) an investor who redeems a certificate and the related contingent tax credit shall
             3871      allocate the amount of the contingent tax credit to the taxpayers of the investor based on the


             3872      taxpayer's pro rata share of the investor's earnings; and
             3873          (e) any contingent tax credit in excess of the taxpayer's tax liability for the tax year may
             3874      be credited to the tax liability until the earlier of:
             3875          (i) the depletion of the contingent tax credit; or
             3876          (ii) a period not to exceed seven years.
             3877          (5) In calculating the amount of a contingent tax credit:
             3878          (a) a contingent tax credit shall be certified by the board only if the actual return to the
             3879      designated investor is less than the return that was targeted at the issuance of the certificate;
             3880          (b) the amount of the contingent tax credit may not exceed the difference between:
             3881          (i) the sum of:
             3882          (A) the initial equity investment of the designated investor in the Utah fund of funds;
             3883      and
             3884          (B) the scheduled aggregate return to the designated investor at rates of return
             3885      authorized by the board at the issuance of the certificate; and
             3886          (ii) the aggregate actual return received by the designated investor and any predecessor
             3887      in interest of the initial equity investment and interest on the initial equity investment; and
             3888          (c) the rates, whether fixed rates or variable rates, shall be determined by a formula
             3889      stipulated in the certificate.
             3890          (6) The board shall clearly indicate on the certificate:
             3891          (a) the targeted return on the invested capital;
             3892          (b) the amount of the initial equity investment;
             3893          (c) the calculation formula for determining the scheduled aggregate return on the initial
             3894      equity investment; and
             3895          (d) the calculation formula for determining the amount of the contingent tax credit that
             3896      may be claimed.
             3897          (7) Once moneys are invested by a designated investor, the certificate:
             3898          (a) shall be binding on the board; and
             3899          (b) may not be modified, terminated, or rescinded.
             3900          (8) Funds invested by a designated investor for a certificate shall be paid to the
             3901      corporation for placement in the Utah fund of funds.
             3902          (9) The State Tax Commission may, in accordance with Title 63, Chapter 46a, Utah


             3903      Administrative Rulemaking Act, and in consultation with the board, make rules to help
             3904      implement this section.
             3905          Section 115. Section 63-38f-1219 , which is renumbered from Section 9-2-1919 is
             3906      renumbered and amended to read:
             3907           [9-2-1919].     63-38f-1219. Transfer and registration of certificates.
             3908          (1) A certificate and the related contingent tax credit may be transferred by the
             3909      designated investor.
             3910          (2) The board, in conjunction with the State Tax Commission, shall develop:
             3911          (a) a system for registration of any certificate and related contingent tax credit issued or
             3912      transferred under this part; and
             3913          (b) a system that permits verification that:
             3914          (i) any contingent tax credit claimed upon a tax return is valid; and
             3915          (ii) any transfers of the certificate and related contingent tax credit are made in
             3916      accordance with the requirements of this part.
             3917          (3) A certificate or contingent tax credit issued or transferred under this part may not be
             3918      considered a security under Title 61, Chapter 1, Utah Uniform Securities Act.
             3919          Section 116. Section 63-38f-1220 , which is renumbered from Section 9-2-1920 is
             3920      renumbered and amended to read:
             3921           [9-2-1920].     63-38f-1220. Redemption of certificates.
             3922          (1) If a designated investor elects to redeem a certificate, the certificate shall be
             3923      presented to the board for redemption no later than June 30 of the calendar year maturity date
             3924      stated on the certificate.
             3925          (2) Upon presentment to the board, it shall determine and certify the amount of the
             3926      contingent tax credit that may be claimed by the designated investor based on:
             3927          (a) the limitations in Section [ 9-2-1918 ] 63-38f-1218 ; and
             3928          (b) rules made by the board in accordance with Title 63, Chapter 46a, Utah
             3929      Administrative Rulemaking Act.
             3930          (3) (a) If there are sufficient funds in the redemption reserve, the board shall direct the
             3931      corporation to make a cash redemption of the certificate.
             3932          (b) If there are insufficient funds in the redemption reserve, the board may elect to
             3933      redeem the certificate:


             3934          (i) by certifying a contingent tax credit to the designated investor; or
             3935          (ii) by making demand on designated purchasers to purchase certificates in accordance
             3936      with Section [ 9-2-1921 ] 63-38f-1221 .
             3937          (4) The board shall certify to the State Tax Commission the contingent tax credit which
             3938      can be claimed by the designated investor with respect to the redemption of the certificate.
             3939          Section 117. Section 63-38f-1221 , which is renumbered from Section 9-2-1921 is
             3940      renumbered and amended to read:
             3941           [9-2-1921].     63-38f-1221. Use of commitments to redeem certificates.
             3942          (1) The board may elect to draw on a commitment to redeem a certificate from a
             3943      designated investor.
             3944          (2) If the board makes an election under Subsection (1), it shall:
             3945          (a) inform the designated purchaser of the amount of the contingent tax credit that must
             3946      be purchased from the board;
             3947          (b) specify the date on which the purchase must be consummated; and
             3948          (c) use the funds delivered to the board by the designated purchaser to redeem the
             3949      certificate from the designated investor.
             3950          (3) The board has discretion in determining which commitment or commitments and
             3951      what portion of those commitments to use to redeem certificates.
             3952          (4) The contingent tax credits acquired by a designated purchaser under this section are
             3953      subject to Section [ 9-2-1918 ] 63-38f-1218 .
             3954          Section 118. Section 63-38f-1222 , which is renumbered from Section 9-2-1922 is
             3955      renumbered and amended to read:
             3956           [9-2-1922].     63-38f-1222. Powers and effectiveness.
             3957          (1) This part may not be construed as a restriction or limitation upon any power which
             3958      the board might otherwise have under any other law of this state and the provisions of this part
             3959      are cumulative to those powers.
             3960          (2) This part shall be construed to provide a complete, additional, and alternative
             3961      method for performing the duties authorized and shall be regarded as supplemental and
             3962      additional powers to those conferred by any other laws.
             3963          (3) The provisions of any contract entered into by the board or the Utah fund of funds
             3964      may not be compromised, diminished, invalidated, or affected by the:


             3965          (a) level, timing, or degree of success of the Utah fund of funds or the investment funds
             3966      in which the Utah fund of funds invests; or
             3967          (b) extent to which the investment funds are:
             3968          (i) invested in Utah venture capital projects; or
             3969          (ii) successful in accomplishing any economic development objectives.
             3970          Section 119. Section 63-38f-1223 , which is renumbered from Section 9-2-1923 is
             3971      renumbered and amended to read:
             3972           [9-2-1923].     63-38f-1223. Permissible investments.
             3973          Investments by designated investors in the Utah fund of funds are permissible
             3974      investments under applicable laws of the state for:
             3975          (1) state-chartered banks;
             3976          (2) state-chartered savings and loan associations;
             3977          (3) state-chartered credit unions;
             3978          (4) state-chartered industrial banks; and
             3979          (5) domestic insurance companies.
             3980          Section 120. Section 63-38f-1224 , which is renumbered from Section 9-2-1924 is
             3981      renumbered and amended to read:
             3982           [9-2-1924].     63-38f-1224. Exemption from certain statutes.
             3983          (1) Except as otherwise provided in this part, the corporation is exempt from statutes
             3984      governing state agencies, as provided in Section 63E-2-109 .
             3985          (2) The corporation shall be subject to:
             3986          (a) Title 52, Chapter 4, Open and Public Meetings [Act]; and
             3987          (b) Title 63, Chapter 2, Government Records Access and Management Act.
             3988          Section 121. Section 63-38f-1301 , which is renumbered from Section 9-2-2001 is
             3989      renumbered and amended to read:
             3990     
Part 13. Aerospace and Aviation Zone

             3991           [9-2-2001].     63-38f-1301. Purpose.
             3992          (1) The Legislature finds that:
             3993          (a) the fostering and development of industry in Utah is a state public purpose
             3994      necessary to assure the welfare of its citizens, the growth of its economy, and adequate
             3995      employment for its citizens; and


             3996          (b) Utah loses prospective high paying jobs, economic impacts, and corresponding
             3997      incremental new state revenues to competing states due to a wide variety of competing
             3998      economic development incentives offered by those states.
             3999          (2) This part is enacted to address the loss of new economic growth in Utah and the
             4000      corresponding loss of incremental new state revenues by providing tax increment financial
             4001      incentives to attract new commercial projects in development zones located on or contiguous to
             4002      airports in the state.
             4003          Section 122. Section 63-38f-1302 , which is renumbered from Section 9-2-2002 is
             4004      renumbered and amended to read:
             4005           [9-2-2002].     63-38f-1302. Definitions.
             4006          As used in this part:
             4007          [(2)] (1) "Development zone" means the Aerospace and Aviation Development Zone
             4008      created under Section [ 9-2-2003 ] 63-38f-1303 .
             4009          [(3)] (2) "Indirect state revenues" means the imputed use of a generally accepted
             4010      indirect economic multiplier as defined by a fiscal impact model approved by the Governor's
             4011      Office of Planning and Budget to quantify by estimate the indirect state tax revenues that are in
             4012      addition to direct state tax revenues.
             4013          [(4)] (3) "New state revenues" means incremental new state tax revenues that are
             4014      generated as a result of new economic commercial projects in a development zone, to include
             4015      the state's portion of sales taxes, and company and employee income taxes derived from the
             4016      projects, together with indirect state revenues generated by the projects, but not to include any
             4017      portion of sales taxes earmarked for local governments or other taxing jurisdictions eligible for
             4018      sales tax revenues.
             4019          [(1)] (4) ["Department"] "Office" means the [Department of Community and]
             4020      Governor's Office of Economic Development acting through its [executive] director.
             4021          (5) "Partial rebates" means returning a portion of the new state revenues generated by
             4022      new commercial projects to companies or individuals that have created new economic growth
             4023      within a development zone.
             4024          Section 123. Section 63-38f-1303 , which is renumbered from Section 9-2-2003 is
             4025      renumbered and amended to read:
             4026           [9-2-2003].     63-38f-1303. Creation of development zones.


             4027          The [department] office, with [approval by] advice from the board, may create an
             4028      Aerospace and Aviation Development Zone at or around any airport in the state that satisfies
             4029      the following requirements:
             4030          (1) the airport shall have an instrumental landing system;
             4031          (2) the airport shall have a manned air traffic control tower;
             4032          (3) the airport shall have land available for commercial development on, or contiguous
             4033      to, the airport; and
             4034          (4) Subsections (1) and (2) sunset on January 1, 2006, unless the Legislature
             4035      determines otherwise.
             4036          Section 124. Section 63-38f-1304 , which is renumbered from Section 9-2-2004 is
             4037      renumbered and amended to read:
             4038           [9-2-2004].     63-38f-1304. Development incentives.
             4039          (1) The [department] office, with [the approval of] advice from the board, may enter
             4040      into agreements providing for partial rebates of new state revenues generated by new
             4041      commercial projects to companies or individuals that create new economic growth within the
             4042      development zone.
             4043          (2) In no event may the partial rebates be in excess of 50% of the new state revenues in
             4044      any given year.
             4045          (3) (a) The partial rebates may not exceed 30% of the new state revenues generated
             4046      over the life of a new commercial project.
             4047          (b) For purposes of this part, the life of a new commercial project is limited to 20
             4048      years.
             4049          [(4) Partial rebates are subject to any other limitations adopted by board rule made in
             4050      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act.]
             4051          Section 125. Section 63-38f-1305 , which is renumbered from Section 9-2-2005 is
             4052      renumbered and amended to read:
             4053           [9-2-2005].     63-38f-1305. Qualifications for credits and rebates.
             4054          The [board] office shall set standards to qualify for partial rebates under this part,
             4055      subject to the following:
             4056          (1) no partial rebates may be paid prior to verification, by the [department] office, of
             4057      the new state revenues upon which the tax rebate is based;


             4058          (2) partial rebates can only be paid on projects that are within the development zone;
             4059          (3) partial rebates can only be paid on projects that bring new, incremental jobs to the
             4060      state;
             4061          (4) qualifying projects must involve direct investment within the geographic
             4062      boundaries of the development zone;
             4063          (5) only aerospace and aviation industry projects[, as defined by board rule made in
             4064      accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,] are eligible for
             4065      partial rebates; and
             4066          (6) in order to claim payments representing partial rebates of new state revenues, a
             4067      person must:
             4068          (a) enter into [a board] an office-approved agreement with the [department] office and
             4069      affirm by contractual agreement to keep supporting records for at least four years after final
             4070      payment of partial rebates under this part;
             4071          (b) submit to audits for verification of the amounts claimed; and
             4072          (c) comply with other conditions as are required by the [department] office.
             4073          Section 126. Section 63-38f-1306 , which is renumbered from Section 9-2-2006 is
             4074      renumbered and amended to read:
             4075           [9-2-2006].     63-38f-1306. Payment procedure.
             4076          Any payment of partial rebates of new state revenues shall be made in accordance with
             4077      procedures adopted by the [department and approved by] office with the advice of the board, to
             4078      include the following:
             4079          (1) within 90 days of the end of each calendar year, any company or individual that has
             4080      entered into an agreement with the [department] office under this part shall provide the
             4081      [department] office with documentation of the new state revenues it claims to have generated
             4082      during that calendar year, the documentation to include the types of taxes and corresponding
             4083      amounts of taxes paid directly to the Utah State Tax Commission, and sales taxes paid to Utah
             4084      vendors and suppliers that are indirectly paid to the Utah State Tax Commission;
             4085          (2) the [department] office shall audit or review the documentation, make a
             4086      determination of the amount of partial rebates earned under the agreement, and forward [a
             4087      board] an office-approved request for payment of that amount to the Division of Finance,
             4088      together with information regarding the name and address of the payee and any other


             4089      information reasonably requested by the [division] office; and
             4090          (3) the Division of Finance shall pay a partial rebate from the Economic Incentive
             4091      Restricted Account created in Section [ 9-2-2009 ] 63-38f-1309 upon receipt of documentation
             4092      and the [board] office-approved request from the [department] office under Subsection (2).
             4093          Section 127. Section 63-38f-1307 , which is renumbered from Section 9-2-2007 is
             4094      renumbered and amended to read:
             4095           [9-2-2007].     63-38f-1307. Office's authority.
             4096          (1) The [department] office, with [approval] the advice of the board and within the
             4097      limitations of this part, may determine:
             4098          (a) the structure and amount of any partial rebates offered under this part;
             4099          (b) the economic impacts and job creation necessary to qualify for the incentive; and
             4100          (c) the other terms and conditions of any agreement entered into under this part.
             4101          (2) In reviewing claims for partial rebates of new state revenues, the [department]
             4102      office may accept:
             4103          (a) as the amount of employee income taxes paid, the amount of employee income
             4104      taxes withheld and transmitted to the Utah State Tax Commission as evidenced by payroll
             4105      records rather than adjusting for the difference between taxes withheld and taxes actually paid
             4106      through filing by employees' annual income tax statements; and
             4107          (b) as the amount of company income taxes paid, the amount of corporate franchise
             4108      and income taxes estimated and transmitted to the Utah State Tax Commission as evidenced by
             4109      quarterly payment records rather than adjusting for the difference between estimated taxes paid
             4110      quarterly and taxes actually paid through the filing of the corporation's annual income tax
             4111      statement.
             4112          [(3) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             4113      the board may make, amend, and revoke rules regarding the development zone and partial
             4114      rebates offered within it, provided the rules are consistent with state and federal law.]
             4115          [(4) (a) The department shall make a report to the Legislature's Workforce and
             4116      Community and Economic Development Interim Committee on:]
             4117          [(i) the success of attracting new commercial projects to development zones under this
             4118      part and the corresponding increase in new, incremental jobs;]
             4119          [(ii) the period of time over which partial rebates of new state revenues shall be granted


             4120      under this part; and]
             4121          [(iii) the economic impact on the state related to generating new state revenues and
             4122      rebating a portion of those revenues under this part.]
             4123          [(b) The department shall make the reports prior to the 2005 General Session of the
             4124      Legislature to enable the committee to determine whether this part should be modified during
             4125      the 2005 General Session.]
             4126          Section 128. Section 63-38f-1308 , which is renumbered from Section 9-2-2008 is
             4127      renumbered and amended to read:
             4128           [9-2-2008].     63-38f-1308. Coordination with Industrial Assistance Fund.
             4129          Projects that qualify for partial rebates of new state revenues under this part and enter
             4130      into agreements with the [department] office under this part are ineligible to qualify for
             4131      additional financial assistance from the Industrial Assistance Fund under Section [ 9-2-1204 ]
             4132      63-38f-904 .
             4133          Section 129. Section 63-38f-1309 , which is renumbered from Section 9-2-2009 is
             4134      renumbered and amended to read:
             4135           [9-2-2009].     63-38f-1309. Establishment of the Economic Incentive Restricted
             4136      Account.
             4137          (1) There is created a restricted account in the General Fund known as the Economic
             4138      Incentive Restricted Account.
             4139          (2) The account shall be used to make payments as required under Section [ 9-2-2006 ]
             4140      63-38f-1306 .
             4141          (3) (a) The Division of Finance shall transfer from the General Fund the amount
             4142      estimated by the [department] office from new state revenues needed to make the partial
             4143      rebates as allowed in Section [ 9-2-2006 ] 63-38f-1306 .
             4144          (b) The amount transferred into the account shall be reduced by any unencumbered
             4145      balances in the account.
             4146          (4) Not withstanding Subsections 51-5-3 (23)(b) and 63-38-9 (4)(c), after receiving a
             4147      request for payment, in accordance with Subsection [ 9-2-2006 ] 63-38f-1306 (2), the Division of
             4148      Finance shall pay the partial rebates as allowed in Section [ 9-2-2006 ] 63-38f-1306 , from the
             4149      account.
             4150          (5) (a) Prior to the beginning of each fiscal year, the department shall notify the


             4151      Governor's Office of Planning and Budget, the Office of Legislative Fiscal Analyst, and the
             4152      Division of Finance of:
             4153          (i) the estimated amount of new state revenues created from economic growth in the
             4154      development zones, the estimate detailed by the amounts from:
             4155          (A) sales tax;
             4156          (B) income tax; and
             4157          (C) corporate franchise and income tax; and
             4158          (ii) the estimated amount partial rebates projected to be paid in the upcoming fiscal
             4159      year, the estimates detailed by the amounts from:
             4160          (A) sales tax;
             4161          (B) income tax; and
             4162          (C) corporate franchise and income tax.
             4163          (b) The [department] office shall update the estimates required by Subsections (5)(a)(i)
             4164      and (ii) within 30 days of the signing of each new agreement entered into under this part.
             4165          Section 130. Section 63-38f-1401 , which is renumbered from Section 9-2-1701 is
             4166      renumbered and amended to read:
             4167     
Part 14. Tourism Performance Marketing Fund

             4168           [9-2-1701].     63-38f-1401. Purpose.
             4169          The Legislature finds and declares that the development of travel and tourism in Utah is
             4170      a state public purpose necessary to assure the welfare of its citizens, the growth of its economy,
             4171      and adequate employment of its citizens.
             4172          Section 131. Section 63-38f-1402 , which is renumbered from Section 9-2-1702 is
             4173      renumbered and amended to read:
             4174           [9-2-1702].     63-38f-1402. Definitions.
             4175          As used in this part:
             4176          (1) ["Committee"] "Board" means the [Tourism Marketing Performance Fund
             4177      Committee as created in Section 9-2-1705 ] Board of Tourism Development created in Section
             4178      63-38f-1406 .
             4179          [(2) "Department" means the Department of Community and Economic Development.]
             4180          [(3) "Division" means the Division of Travel Development created in Section 9-3-204 .]
             4181          (2) "Director" means the director of the Governor's Office for Economic Development.


             4182          [(4)] (3) "Fund" means the restricted account known as the Tourism Marketing
             4183      Performance Fund created in Section [ 9-2-1703 ] 63-38f-1403 .
             4184          [(5)] (4) "Industry" means the following travel and tourism industry groups:
             4185          (a) retail/eating and drinking;
             4186          (b) services/hotels and lodging;
             4187          (c) services/automotive rental;
             4188          (d) services/amusement and recreation; and
             4189          (e) transportation.
             4190          (5) "Office" means the Governor's Office of Economic Development.
             4191          (6) "Tourism marketing" means an activity to develop, encourage, solicit, or promote
             4192      tourism within this state that attracts transient guests to the state, including:
             4193          (a) planning;
             4194          (b) product development; and
             4195          (c) advertising directed to out of state consumers that promotes leisure travel products
             4196      or attractions specific to Utah.
             4197          (7) "Tourism oriented sales and use taxes" means a state sales and use tax imposed
             4198      under Section 59-12-103 for amounts paid or charged for taxable items or services:
             4199          (a) described under Subsection 59-12-103 (1); and
             4200          (b) provided by a person described by the following SIC Codes of the 1987 Standard
             4201      Industrial Classification Manual of the federal Executive Office of the President, Office of
             4202      Management and Budget:
             4203          (i) SIC Codes 4011 through 4789;
             4204          (ii) SIC Codes 5812 and 5813;
             4205          (iii) SIC Codes 7011 through 7041;
             4206          (iv) SIC Codes 7513 through 7519; and
             4207          (v) SIC Codes 7812 through 7999.
             4208          [(8) "Utah Tourism Industry Coalition" means the private nonprofit corporation created
             4209      under Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, composed of
             4210      tourism-related businesses, organizations, and associations authorized to nominate committee
             4211      members under Section 9-2-1705 .]
             4212          Section 132. Section 63-38f-1403 , which is renumbered from Section 9-2-1703 is


             4213      renumbered and amended to read:
             4214           [9-2-1703].     63-38f-1403. Creation and administration of fund.
             4215          (1) (a) There is created within the General Fund a restricted account known as the
             4216      "Tourism Marketing Performance Fund."
             4217          (b) The fund shall be administered by the [department] office in accordance with
             4218      Section [ 9-2-1704 ] 63-38f-1405 .
             4219          (2) The fund shall be funded by appropriations made to the fund by the Legislature in
             4220      accordance with Section [ 9-2-1703.5 ] 63-38f-1404 .
             4221          (3) Any undistributed monies in the fund at the end of the fiscal year are nonlapsing
             4222      [except that any balance greater than $200,000 at the end of the fiscal year shall lapse to the
             4223      General Fund].
             4224          Section 133. Section 63-38f-1404 , which is renumbered from Section 9-2-1703.5 is
             4225      renumbered and amended to read:
             4226           [9-2-1703.5].     63-38f-1404. Appropriations to the fund.
             4227          (1) The Legislature shall appropriate $200,000 to the fund each fiscal year for which
             4228      the State Tax Commission finds that the industry growth for the prior fiscal year equals or
             4229      exceeds 4%[, except that:].
             4230          [(a) the growth factor requirement does not apply to the $2,000,000 appropriation to
             4231      the fund under Item 120 of S.B. 1, Appropriations Act, made for the fiscal year beginning July
             4232      1, 2002, only; and]
             4233          [(b) the growth factor requirement does not apply for the prior fiscal year beginning
             4234      July 1, 2001, and ending June 30, 2002, only, but the appropriation may be for less than
             4235      $200,000 for the affected fiscal year only.]
             4236          (2) To determine the prior fiscal year industry growth the State Tax Commission shall:
             4237          (a) calculate the tourism-oriented sales and use taxes for the fiscal year two years
             4238      preceding the fiscal year of appropriation;
             4239          (b) calculate the tourism-oriented sales and use taxes for the fiscal year three years
             4240      preceding the fiscal year of the appropriation; and
             4241          (c) determine whether the tourism-oriented sales and use taxes calculated in Subsection
             4242      (2)(a) increased from the tourism-oriented sales and use taxes calculated under Subsection
             4243      (2)(b).


             4244          (3) The State Tax Commission shall report its determination under Subsection (2) to
             4245      the Governor's Office of Planning and Budget by no later than September 30 of each year.
             4246          Section 134. Section 63-38f-1405 , which is renumbered from Section 9-2-1704 is
             4247      renumbered and amended to read:
             4248           [9-2-1704].     63-38f-1405. Distribution of fund monies -- Determination of
             4249      recipients.
             4250          The appropriation to the fund required by Section [ 9-2-1703.5 ] 63-38f-1404 shall be
             4251      distributed by the [department] office to the [division] program to be used to fund the tourism
             4252      marketing plan [developed in accordance with Section 9-2-1706 ].
             4253          Section 135. Section 63-38f-1406 , which is renumbered from Section 9-3-201 is
             4254      renumbered and amended to read:
             4255           [9-3-201].     63-38f-1406. Board of Tourism Development.
             4256          (1) There is created within the [department] office the Board of [Travel] Tourism
             4257      Development.
             4258          (2) The board shall advise the [division] office in the [division's] office's planning,
             4259      policies, and strategies and on trends and opportunities for [travel] tourism development that
             4260      may exist in the various areas of the state.
             4261          Section 136. Section 63-38f-1407 , which is renumbered from Section 9-3-202 is
             4262      renumbered and amended to read:
             4263           [9-3-202].     63-38f-1407. Members -- Meetings -- Expenses.
             4264          (1) (a) The board shall consist of nine members appointed by the governor to four-year
             4265      terms of office with the consent of the Senate.
             4266          (b) Notwithstanding the requirements of Subsection (1)(a), the governor shall, at the
             4267      time of appointment or reappointment, adjust the length of terms to ensure that the terms of
             4268      board members are staggered so that approximately half of the board is appointed every two
             4269      years.
             4270          (2) The members may not serve more than two full consecutive terms unless the
             4271      governor determines that an additional term is in the best interest of the state.
             4272          (3) Not more than five members of the board may be of the same political party.
             4273          (4) (a) The members shall be representative of:
             4274          (i) all areas of the state with six being appointed from separate geographical areas as


             4275      provided in Subsection (4)(b); and
             4276          (ii) a diverse mix of the travel and tourism related industries.
             4277          (b) The geographical representatives shall be appointed as follows:
             4278          (i) one member from Salt Lake, Tooele, or Morgan County;
             4279          (ii) one member from Davis, Weber, Box Elder, Cache, or Rich County;
             4280          (iii) one member from Utah, Summit, Juab, or Wasatch County;
             4281          (iv) one member from Carbon, Emery, Grand, Duchesne, Daggett, or Uintah County;
             4282          (v) one member from San Juan, Piute, Wayne, Garfield, or Kane County; and
             4283          (vi) one member from Washington, Iron, Beaver, Sanpete, Sevier, or Millard County.
             4284          (c) The travel and tourism industry representatives shall be appointed from among
             4285      active participants in the ownership or management of travel and tourism related businesses.
             4286          (5) When a vacancy occurs in the membership for any reason, the replacement shall be
             4287      appointed for the unexpired term from the same geographic area or industry representation as
             4288      the member whose office was vacated.
             4289          (6) Five members of the board constitutes a quorum for conducting board business and
             4290      exercising board powers.
             4291          (7) The governor shall select one of the board members as chair and one of the board
             4292      members as vice chair, each for a two-year term.
             4293          (8) (a) Members shall receive no compensation or benefits for their services, but may
             4294      receive per diem and expenses incurred in the performance of the member's official duties at
             4295      the rates established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4296          (b) Members may decline to receive per diem and expenses for their service.
             4297          (9) The board shall meet at least once each quarter at various locations throughout the
             4298      state.
             4299          (10) The board's office shall be in Salt Lake City.
             4300          Section 137. Section 63-38f-1408 , which is renumbered from Section 9-3-203 is
             4301      renumbered and amended to read:
             4302           [9-3-203].     63-38f-1408. Board duties.
             4303          (1) The board shall:
             4304          (a) review a program of information, advertising, and publicity relating to the
             4305      recreational, scenic, historic, highway, and tourist attractions of the state at large; and


             4306          (b) encourage and assist in the coordination of the activities of persons, firms,
             4307      associations, corporations, civic groups, and governmental agencies engaged in publicizing,
             4308      developing, and promoting the scenic attractions and tourist advantages of the state.
             4309          (2) The board may solicit and accept contributions of moneys, services, and facilities
             4310      from any other sources, public or private and shall use these funds for promoting the general
             4311      interest of the state in travel and tourism.
             4312          Section 138. Section 63-38f-1409 , which is renumbered from Section 9-3-204 is
             4313      renumbered and amended to read:
             4314           [9-3-204].     63-38f-1409. Powers and duties of office related to tourism
             4315      development plan -- Annual report and survey.
             4316          [(1) There is created within the department the Division of Travel Development under
             4317      the administration and general supervision of the director.]
             4318          [(2) The division shall be under the policy direction of the director.]
             4319          [(3)] (1) The [division] office shall:
             4320          (a) be the [travel] tourism development authority of the state;
             4321          (b) develop a [travel] tourism promotion program for the state;
             4322          (c) develop a plan to increase the economic contribution by tourists visiting the state;
             4323          (d) plan and conduct a program of information, advertising, and publicity relating to
             4324      the recreational, scenic, historic, highway, and tourist advantages and attractions of the state at
             4325      large; and
             4326          (e) encourage and assist in the coordination of the activities of persons, firms,
             4327      associations, corporations, travel regions, counties, and governmental agencies engaged in
             4328      publicizing, developing, and promoting the scenic attractions and tourist advantages of the
             4329      state[; and].
             4330          [(4)] (2) Any plan provided for under Subsection [(3)] (1) shall address, but not be
             4331      limited to, enhancing the state's image, promoting Utah as a year-round destination,
             4332      encouraging expenditures by visitors to the state, and expanding the markets where the state is
             4333      promoted.
             4334          [(5)] (3) The [division] office is encouraged to:
             4335          (a) conduct surveys on tourism promotion activities undertaken by cities and counties
             4336      within the state; and


             4337          (b) in collaboration with the cities and counties surveyed, make an annual report to the
             4338      Legislature on the economic benefit of those activities to the state and the cities and counties
             4339      surveyed by the [division] office.
             4340          Section 139. Section 63-38f-1410 , which is renumbered from Section 9-3-206 is
             4341      renumbered and amended to read:
             4342           [9-3-206].     63-38f-1410. Agreements with other governmental entities.
             4343          The [department, through the division,] office may enter into agreements with [other]
             4344      state or federal agencies to accept services, quarters, or facilities as a contribution in carrying
             4345      out the duties and functions of the [department] office.
             4346          Section 140. Section 63-38f-1501 , which is renumbered from Section 9-8-901 is
             4347      renumbered and amended to read:
             4348     
Part 15. Utah Pioneer Communities Program

             4349           [9-8-901].     63-38f-1501. Title.
             4350          This part shall be known as the "Utah Pioneer Communities Program Act."
             4351          Section 141. Section 63-38f-1502 , which is renumbered from Section 9-8-902 is
             4352      renumbered and amended to read:
             4353           [9-8-902].     63-38f-1502. Definitions.
             4354          As used in this part:
             4355          (1) "Advisory board" means the Utah Pioneer Communities Program Advisory Board
             4356      created in Section [ 9-8-903 ] 63-38f-1503 within the [department] office.
             4357          (2) "Community" means a city, county, town, or any combination of these.
             4358          (3) "Revitalization" means the process of engaging in activities to increase economic
             4359      activity while preserving and building upon a location's historically significant characteristics.
             4360          Section 142. Section 63-38f-1503 , which is renumbered from Section 9-8-903 is
             4361      renumbered and amended to read:
             4362           [9-8-903].     63-38f-1503. Advisory board.
             4363          (1) (a) There is created within the [department] office the Utah Pioneer Communities
             4364      Advisory Board.
             4365          (b) The Permanent Community Impact Fund Board created in Section 9-4-304 shall act
             4366      as the advisory board.
             4367          (2) The advisory board shall have the powers and duties described in Section [ 9-8-904 ]


             4368      63-38f-1504 and shall operate the Utah Pioneer Communities Program in accordance with
             4369      Section [ 9-8-905 ] 63-38f-1505 .
             4370          (3) The [executive] director shall designate an employee of the [department] office to
             4371      serve as a nonvoting secretary for the advisory board.
             4372          (4) (a) (i) Members who are not government employees shall receive no compensation
             4373      or benefits for their services, but may receive per diem and expenses incurred in the
             4374      performance of the member's official duties at the rates established by the Division of Finance
             4375      under Sections 63A-3-106 and 63A-3-107 .
             4376          (ii) Members may decline to receive per diem and expenses for their service.
             4377          (b) (i) State government officer and employee members who do not receive salary, per
             4378      diem, or expenses from their agency for their service may receive per diem and expenses
             4379      incurred in the performance of their official duties from the board at the rates established by the
             4380      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4381          (ii) State government officer and employee members may decline to receive per diem
             4382      and expenses for their service.
             4383          (c) (i) Higher education members who do not receive salary, per diem, or expenses
             4384      from the entity that they represent for their service may receive per diem and expenses incurred
             4385      in the performance of their official duties from the committee at the rates established by the
             4386      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             4387          (ii) Higher education members may decline to receive per diem and expenses for their
             4388      service.
             4389          (d) (i) Local government members who do not receive salary, per diem, or expenses
             4390      from the entity that they represent for their service may receive per diem and expenses incurred
             4391      in the performance of their official duties at the rates established by the Division of Finance
             4392      under Sections 63A-3-106 and 63A-3-107 .
             4393          (ii) Local government members may decline to receive per diem and expenses for their
             4394      service.
             4395          Section 143. Section 63-38f-1504 , which is renumbered from Section 9-8-904 is
             4396      renumbered and amended to read:
             4397           [9-8-904].     63-38f-1504. Advisory board duties.
             4398          (1) The advisory board shall:


             4399          (a) establish and administer a Utah Pioneer Communities Program to assist
             4400      communities in planning, managing, and implementing programs for the revitalization of
             4401      business districts and the preservation of their distinct history, heritage, and culture as a basis
             4402      for promoting stable, sustained economic growth through business expansion and tourism;
             4403          (b) select, upon application by the community, communities to participate in the Utah
             4404      Pioneer Communities Program;
             4405          (c) enter into contracts to obtain services related to community preservation and
             4406      tourism development;
             4407          (d) with help from interested communities, individuals, and organizations, develop a
             4408      plan describing the objectives of the Utah Pioneer Communities Program and the methods by
             4409      which the advisory board shall:
             4410          (i) coordinate the activities of that program with the private and public sector; and
             4411          (ii) solicit and use private sector funding to revitalize business districts and provide
             4412      services related to community preservation, tourism, and business development; and
             4413          (e) coordinate and consult with other state and local or public and private entities that
             4414      provide services to communities undertaking projects to provide services related to community
             4415      preservation, tourism, and business development.
             4416          (2) The advisory board shall provide training, technical assistance, and information on
             4417      services related to community preservation, tourism, and business development.
             4418          Section 144. Section 63-38f-1505 , which is renumbered from Section 9-8-905 is
             4419      renumbered and amended to read:
             4420           [9-8-905].     63-38f-1505. Criteria for participation -- Report.
             4421          (1) The advisory board shall develop objective criteria including the following:
             4422          (a) a three year commitment by the applicant to provide a project manager with a travel
             4423      and operating budget;
             4424          (b) evidence that both the business community and the local government support the
             4425      Utah Pioneer Communities Program approach philosophically and financially;
             4426          (c) capacity for economic change as a result of being a participant in the program;
             4427          (d) geographic location, population, and economic base diversity;
             4428          (e) evidence of past preservation efforts; and
             4429          (f) a population of less than 50,000.


             4430          (2) The advisory board shall provide to the governor and to the presiding officer of
             4431      each house of the Legislature an annual report on the effects of the Utah Pioneer Communities
             4432      Program.    
             4433          Section 145. Section 63-38f-1601 , which is renumbered from Section 9-16-101 is
             4434      renumbered and amended to read:
             4435     
Part 16. Rural Development Act

             4436           [9-16-101].     63-38f-1601. Title -- Definitions.
             4437          (1) This chapter is known as the "[Office of] Rural Development Act."
             4438          (2) As used in this chapter[,]:
             4439          (a) "Office" means the Governor's Office of [Rural] Economic Development.
             4440          (b) "Program" means the Rural Development Program.
             4441          Section 146. Section 63-38f-1602 , which is renumbered from Section 9-16-102 is
             4442      renumbered and amended to read:
             4443           [9-16-102].     63-38f-1602. Rural Development Program -- Supervision by office.
             4444          (1) There is created within the [department] office the [Office of] Rural Development
             4445      Program.
             4446          (2) The [office] program is under the administration and general supervision of the
             4447      [department] office.
             4448          Section 147. Section 63-38f-1603 , which is renumbered from Section 9-16-103 is
             4449      renumbered and amended to read:
             4450           [9-16-103].     63-38f-1603. Purpose of the program.
             4451          The [office shall] program is established to:
             4452          (1) foster and support economic development programs and activities for the benefit of
             4453      rural counties and communities;
             4454          (2) foster and support community, county, and resource management planning
             4455      programs and activities for the benefit of rural counties and communities;
             4456          (3) foster and support leadership training programs and activities for the benefit of:
             4457          (a) rural leaders in both the public and private sectors;
             4458          (b) economic development and planning personnel; and
             4459          (c) rural government officials;
             4460          (4) foster and support efforts to coordinate and focus the technical and other resources


             4461      of appropriate institutions of higher education, local governments, private sector interests,
             4462      associations, nonprofit organizations, federal agencies, and others, in ways that address the
             4463      economic development, planning, and leadership challenges and priorities of rural Utah as
             4464      identified in the strategic plan required under Subsection 63C-10-103 (2);
             4465          (5) work to enhance the capacity of the office to address rural economic development,
             4466      planning, and leadership training challenges and opportunities by establishing partnerships and
             4467      positive working relationships with appropriate public and private sector entities, individuals,
             4468      and institutions; and
             4469          (6) foster government-to-government collaboration and good working relations
             4470      between state and rural government regarding economic development and planning issues.
             4471          Section 148. Section 63-38f-1604 , which is renumbered from Section 9-16-104 is
             4472      renumbered and amended to read:
             4473           [9-16-104].     63-38f-1604. Duties.
             4474          (1) The [office] program shall:
             4475          (a) provide, in conjunction with the Rural Coordinating Committee, staff support to the
             4476      Governor's Rural Partnership board;
             4477          (b) facilitate within the department implementation of the strategic plan prepared under
             4478      Subsection 63C-10-103 (2);
             4479          (c) work to enhance the capacity of the office to address rural economic development,
             4480      planning, and leadership training challenges and opportunities by establishing partnerships and
             4481      positive working relationships with appropriate public and private sector entities, individuals,
             4482      and institutions;
             4483          (d) work with the Rural Coordinating Committee to coordinate and focus available
             4484      resources in ways that address the economic development, planning, and leadership training
             4485      challenges and priorities in rural Utah; and
             4486          (e) in accordance with economic development and planning policies set by state
             4487      government, coordinate relations between:
             4488          (i) the state;
             4489          (ii) rural governments;
             4490          (iii) other public and private groups engaged in rural economic planning and
             4491      development; and


             4492          (iv) federal agencies.
             4493          (2) (a) The [office] program may:
             4494          [(i) in accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             4495      make rules necessary to carry out the duties of the office;]
             4496          [(ii)] (i) accept gifts, grants, devises, and property, in cash or in kind, for the benefit of
             4497      rural Utah citizens; and
             4498          [(iii)] (ii) use those gifts, grants, devises, and property received under Subsection
             4499      (2)(a)[(ii)](i) for the use and benefit of rural citizens within the state.
             4500          (b) All resources received under Subsection (2)(a)[(ii)] (i) shall be deposited in the
             4501      General Fund as dedicated credits to be used as directed in Subsection (2)(a)[(iii)] (ii).
             4502          (c) All funding for the benefit of rural Utah as defined in this section is nonlapsing.
             4503          Section 149. Section 63-38f-1605 , which is renumbered from Section 9-16-105 is
             4504      renumbered and amended to read:
             4505           [9-16-105].     63-38f-1605. Program manager.
             4506          (1) The [executive] director of the [department] office shall appoint [the director of the
             4507      office] a manager for the program with the approval of the governor.
             4508          (2) The [office director] manager shall be a person knowledgeable in the field of rural
             4509      economic development and planning and experienced in administration.
             4510          (3) Upon change of the [executive] director [of the department], the [office director]
             4511      manager of the program may not be dismissed without cause for at least 180 days.
             4512          (4) The [office director] manager shall be a member of the Rural Coordinating
             4513      Committee's Steering Committee created in Subsection 63C-10-202 (3).
             4514          Section 150. Section 63-38f-1606 , which is renumbered from Section 9-16-106 is
             4515      renumbered and amended to read:
             4516           [9-16-106].     63-38f-1606. Annual report.
             4517          The office shall submit an annual report of [its] the program's operations and
             4518      recommendations to:
             4519          [(1) the department;]
             4520          [(2)] (1) the governor; and
             4521          [(3)] (2) the Rural Development Legislative Liaison Committee created in Section
             4522      36-25-102 .


             4523          Section 151. Section 63-49a-1 is amended to read:
             4524           63-49a-1. Acquisition of easements -- Restrictions -- Resale.
             4525          (1) (a) The [Department of Community and] Governor's Office of Economic
             4526      Development shall acquire, by purchase or condemnation, easements for the establishment,
             4527      maintenance, and operation of a restrictive use area for the operation of aircraft to and from
             4528      Hill Air Force Base because:
             4529          (i) Hill Air Force Base is a military installation of vital importance to security of the
             4530      United States of America and to the economic well-being of the citizens of Utah;
             4531          (ii) there are certain portions of land around the entire base that are being developed for
             4532      residential and other uses that are incompatible with current and future operations of the base
             4533      because of noise, health, safety, and accident reasons; and
             4534          (iii) it is the purpose of this chapter for the state to acquire those easements restricting
             4535      the use of those lands and the air space above them in order to assure the continued operation
             4536      of Hill Air Force Base as an active military base and to protect the health, safety, and economic
             4537      well-being of the citizens of Utah.
             4538          (b) The [Department of Community and] Governor's Office of Economic Development
             4539      may delegate its power to purchase or condemn easements under this subsection to other state
             4540      agencies if the department ensures that those agencies comply with the procedures and
             4541      requirements of this chapter.
             4542          (2) (a) The [Department of Community and] Governor's Office of Economic
             4543      Development shall ensure that the easements restrict the land from those uses identified in the
             4544      Hill Air Force Base AICUZ Land Use Compatibility Guidelines Study, as amended, dated
             4545      October, 1982, as not being acceptable.
             4546          (b) The [Department of Community and] Governor's Office of Economic Development
             4547      may allow certain other uses not prohibited by those guidelines if those uses are consistent with
             4548      the purpose of this chapter.
             4549          (c) Nothing in this chapter may be construed to authorize the [Department of
             4550      Community and] Governor's Office of Economic Development or any other state agency to:
             4551          (i) acquire any ownership interest in real property other than an easement restricting the
             4552      land from future uses inconsistent with the Hill Air Force Base AICUZ Land Use
             4553      Compatibility Guidelines Study, as amended, dated October 1982;


             4554          (ii) purchase businesses; or
             4555          (iii) require people to relocate or move from their property.
             4556          (d) To calculate the purchase price for the easements, the [Department of Community
             4557      and] Governor's Office of Economic Development shall subtract the market value of the real
             4558      property and its improvements after the acquisition of the easements from the market value of
             4559      the real property and its improvements before the acquisition of the easements.
             4560          (e) When the Hill Air Force Base runways have not been used for seven years to
             4561      accommodate the arrival and departure of airplanes, the [Department of Community and]
             4562      Governor's Office of Economic Development shall:
             4563          (i) notify by certified mail each current owner of the property to which each easement
             4564      is attached;
             4565          (ii) inform that owner that the owner may purchase the easement from the state for the
             4566      same price that the state paid for it originally or for the market value of the easement at the
             4567      time of the buyback, whichever is smaller; and
             4568          (iii) sell the easement to the owner of the property to which the easement is attached if
             4569      the owner tenders the purchase price.
             4570          (f) In addition to purchasing the easements required by this chapter, the [Department of
             4571      Community and] Governor's Office of Economic Development may provide reasonable
             4572      relocation expenses to all churches, businesses, and schools that, as of March 1, 1994, were
             4573      located either within the north Hill Air Force Base accident potential zone (APZ) identified in
             4574      Subsection 63-49a-2 (1)(a) or within the south Hill Air Force Base accident potential zone
             4575      (APZ) identified in Subsection 63-49a-2 (1)(b) if those churches, businesses, and schools can
             4576      reasonably demonstrate that expansion of the use would have been permitted before acquisition
             4577      of the easements but is now prohibited because of the easement.
             4578          (3) (a) The [Department of Community and] Governor's Office of Economic
             4579      Development may take action to enforce the provisions of this chapter.
             4580          (b) The attorney general shall represent the [Department of Community and]
             4581      Governor's Office of Economic Development in that action.
             4582          Section 152. Section 63-49a-2 is amended to read:
             4583           63-49a-2. Location of easements.
             4584          (1) The [Department of Community and] Governor's Office of Economic Development


             4585      or its designees may acquire easements on the land within the following boundaries:
             4586          (a) beginning on the north Hill Air Force Base accident potential zone (APZ) at a point
             4587      which is North 1,089,743.170 meters and East 459,346.946 meters based on the North zone,
             4588      State of Utah, NAD 83 coordinates and runs north to North 63 degrees 10 minutes 44 seconds,
             4589      East 457.109 meters, North 26 degrees 49 minutes 16 seconds, West 3,352.129 meters, South
             4590      63 degrees 10 minutes 44 seconds, West 914.217 meters, South 26 degrees 49 minutes 16
             4591      seconds, East 3,352.129 meters, North 63 degrees 10 minutes 44 seconds, East 457.109 meters
             4592      back to the point of beginning; and
             4593          (b) beginning on the south Hill Air Force Base APZ which is North 1,086,065.786
             4594      meters and East 461,206.222 meters based on the North zone, State of Utah, NAD 83
             4595      coordinates and runs South 63 degrees 10 minutes 44 seconds, West 457.109 meters, South 26
             4596      degrees 49 minutes 16 seconds, East 502.179 meters, South 0 degrees 20 minutes 35 seconds,
             4597      West 1,722.227 meters, South 89 degrees 39 minutes 25 seconds, East 883.743 meters, North
             4598      63 degrees 10 minutes 44 seconds, East 914.217 meters, North 26 degrees 49 minutes 16
             4599      seconds, West 2,437.912 meters, South 63 degrees 10 minutes 44 seconds, West 457.109
             4600      meters back to the point of beginning.
             4601          (2) The [Department of Community and] Governor's Office of Economic Development
             4602      or its designees may acquire easements on the following land that is located inside the 75 and
             4603      80 level day-night (LDN) noise contour as identified in the Hill Air Force Base AICUZ Land
             4604      Use Compatibility Guidelines Study, as amended, dated October, 1982:
             4605          (a) in the west half of Section 3, T4NR1W;
             4606          (b) in the east half of Section 4, T4NR1W;
             4607          (c) in the northeast quarter of Section 8, T4NR1W;
             4608          (d) within all of Section 9, T4NR1W;
             4609          (e) in the northwest quarter of Section 10, T4NR1W;
             4610          (f) within the southwest quarter of Section 19, T5NR1W;
             4611          (g) in the south half of Section 20, T5NR1W;
             4612          (h) within the southwest quarter of Section 28, T5NR1W; and
             4613          (i) within Section 29, T5NR1W.
             4614          Section 153. Section 63-49a-3 is amended to read:
             4615           63-49a-3. Certain improvements, alterations, and expansions prohibited.


             4616          (1) A person or entity may not begin to develop, or authorize development, on any land
             4617      identified in this chapter until [whichever of the following occurs first: (a) May 31, 1995; or
             4618      (b) the Department of Community and] the Governor's Office of Economic Development has
             4619      affirmatively authorized the development of the land because the development is consistent
             4620      with those uses identified in the Hill Air Force Base AICUZ Land Use Compatibility
             4621      Guidelines Study, as amended, dated October 1982.
             4622          (2) Nothing in this chapter prohibits any property owner from improving, altering, or
             4623      expanding any existing residential or commercial use of his property so long as the
             4624      improvement, alteration, or expansion does not materially increase the human density of that
             4625      present use.
             4626          Section 154. Section 63-51-10 is amended to read:
             4627           63-51-10. Financial impact statement -- Alleviation plan -- Filing required --
             4628      Contents -- Payments credited against tax -- Provisions neither exclusive nor mandatory.
             4629          (1) (a) [Any] A developer desiring to prepay ad valorem property taxes under Section
             4630      63-51-3 shall first prepare and file with the [Department of Community and] Governor's Office
             4631      of Economic Development and all units of local government likely to be affected with a
             4632      significant financial impact due to a natural resource or industrial facility a financial impact
             4633      statement together with a plan for alleviating these impacts.
             4634          (b) The impact statement and the alleviation plan shall be prepared in cooperation with
             4635      and after consultation with the [Department of Community and] Governor's Office of
             4636      Economic Development and the affected units of local government.
             4637          (c) The financial impact statement shall assess the projected financial impact on state
             4638      agencies and units of local government, including[, but not limited to,] the impact on
             4639      transportation systems, culinary water systems, waste treatment facilities, public safety,
             4640      schools, public health, housing, planning and zoning, and general government administration.
             4641          (d) The alleviation plan shall set out proposals for alleviating the impact and may
             4642      include payments to local units of government or direct expenditures by the developer to
             4643      alleviate the impact.
             4644          (e) The impact statement and the alleviation plan may be amended by the developer in
             4645      cooperation with and after consultation with the [Department of Community and] Governor's
             4646      Office of Economic Development and those units of local government affected by the


             4647      amendment.
             4648          (2) At least 90 days prior to commencement of construction of an industrial facility or
             4649      natural resources facility by a major developer, an impact statement and alleviation plan as
             4650      described in Subsection (1) shall be filed by the major developer whether or not the major
             4651      developer desires to prepay ad valorem property taxes.
             4652          (3) (a) Upon the filing of the financial impact statement and alleviation plan, a
             4653      developer may apply to the governing body of the affected unit of local government for
             4654      authorization to prepay a portion of the anticipated ad valorem property taxes to be expended
             4655      consistent with the alleviation plan.
             4656          (b) This authorization may provide that only a portion of the amounts so prepaid can be
             4657      applied against the ad valorem property taxes due in any given year.
             4658          (c) In addition to payments directly to the affected unit of local government, an affected
             4659      unit of local government may authorize a tax credit on anticipated ad valorem property taxes
             4660      for expenditures made by the developer to other persons so long as the expenditure is
             4661      consistent with the alleviation plan.
             4662          (4) (a) This chapter is designed to provide an additional mechanism for the alleviation
             4663      of impacts on units of local government and is not intended to discourage the use of other
             4664      mechanisms as may be available. [Moreover, nothing]
             4665          (b) Nothing in this chapter [shall require] requires a developer to prepay ad valorem
             4666      property taxes or to make any other expenditure not otherwise required by law.
             4667          Section 155. Section 63A-9-801 is amended to read:
             4668           63A-9-801. State surplus property program -- Definitions -- Administration.
             4669          (1) As used in this section:
             4670          (a) "Agency" means:
             4671          (i) the Utah Departments of Administrative Services, Agriculture, Alcoholic Beverage
             4672      Control, Commerce, Community and [Economic Development] Culture, Corrections,
             4673      Workforce Services, Health, Human Resource Management, Human Services, Insurance,
             4674      Natural Resources, Public Safety, and Transportation and the Labor Commission;
             4675          (ii) the Utah Offices of the Auditor, Attorney General, Court Administrator, Crime
             4676      Victim Reparations, Rehabilitation, and Treasurer;
             4677          (iii) the Public Service Commission and State Tax Commission;


             4678          (iv) the State Boards of Education, Pardons and Parole, and Regents;
             4679          (v) the Career Service Review Board;
             4680          (vi) other state agencies designated by the governor;
             4681          (vii) the legislative branch, the judicial branch, and the State Board of Regents; and
             4682          (viii) an institution of higher education, its president, and its board of trustees for
             4683      purposes of Section 63A-9-802 .
             4684          (b) "Division" means the Division of Fleet Operations.
             4685          (c) "Information technology equipment" means any equipment that is designed to
             4686      electronically manipulate, store, or transfer any form of data.
             4687          (d) "Inventory property" means property in the possession of the division that is
             4688      available for purchase by an agency or the public.
             4689          (e) "Judicial district" means the geographic districts established by Section 78-1-2.1 .
             4690          (f) (i) "Surplus property" means property purchased by, seized by, or donated to, an
             4691      agency that the agency wishes to dispose of.
             4692          (ii) "Surplus property" does not mean real property.
             4693          (g) "Transfer" means transfer of surplus property without cash consideration.
             4694          (2) (a) The division shall make rules establishing a state surplus property program that
             4695      meets the requirements of this chapter by following the procedures and requirements of Title
             4696      63, Chapter 46a, Utah Administrative Rulemaking Act.
             4697          (b) Those rules shall include:
             4698          (i) a requirement prohibiting the transfer of surplus property from one agency to
             4699      another agency without written approval from the division;
             4700          (ii) procedures and requirements governing division administration requirements that
             4701      an agency must follow;
             4702          (iii) requirements governing purchase priorities;
             4703          (iv) requirements governing accounting, reimbursement, and payment procedures;
             4704          (v) procedures for collecting bad debts;
             4705          (vi) requirements and procedures for disposing of firearms;
             4706          (vii) the elements of the rates or other charges assessed by the division for services and
             4707      handling;
             4708          (viii) procedures governing the timing and location of public sales of inventory


             4709      property; and
             4710          (ix) procedures governing the transfer of information technology equipment by state
             4711      agencies directly to public schools.
             4712          (c) The division shall report all transfers of information technology equipment by state
             4713      agencies to public schools to the Utah Technology Commission and to the Legislative Interim
             4714      Education Committee at the end of each fiscal year.
             4715          (3) In creating and administering the program, the division shall:
             4716          (a) when conditions, inventory, and demand permit:
             4717          (i) establish facilities to store inventory property at geographically dispersed locations
             4718      throughout the state; and
             4719          (ii) hold public sales of property at geographically dispersed locations throughout the
             4720      state;
             4721          (b) establish, after consultation with the agency requesting the sale of surplus property,
             4722      the price at which the surplus property shall be sold; and
             4723          (c) transfer proceeds arising from the sale of state surplus property to the agency
             4724      requesting the sale in accordance with Title 63, Chapter 38, Budgetary Procedures Act, less an
             4725      amount established by the division by rule to pay the costs of administering the surplus
             4726      property program.
             4727          (4) Unless specifically exempted from this chapter by explicit reference to this chapter,
             4728      each state agency shall dispose of and acquire surplus property only by participating in the
             4729      division's program.
             4730          Section 156. Section 63B-5-201 is amended to read:
             4731           63B-5-201. Legislative intent statements.
             4732          (1) If the United [State] States Department of Defense has not provided matching funds
             4733      to construct the National Guard Armory in Orem by December 31, 1997, the Division of
             4734      Facilities Construction and Management shall transfer any funds received from issuance of a
             4735      General Obligation Bond for benefit of the Orem Armory to the Provo Armory for capital
             4736      improvements.
             4737          (2) It is the intent of the Legislature that the University of Utah use institutional funds
             4738      to plan, design, and construct:
             4739          (a) the Health Science East parking structure under the supervision of the director of


             4740      the Division of Facilities Construction and Management unless supervisory authority is
             4741      delegated by the director;
             4742          (b) the Health Science Office Building under the supervision of the director of the
             4743      Division of Facilities Construction and Management unless supervisory authority is delegated
             4744      by the director; and
             4745          (c) the new Student Housing/Olympic Athletes Village under the supervision of the
             4746      director of the Division of Facilities Construction and Management unless supervisory
             4747      authority is delegated by the director.
             4748          (3) It is the intent of the Legislature that Utah State University use institutional funds to
             4749      plan, design, and construct a multipurpose facility under the supervision of the director of the
             4750      Division of Facilities Construction and Management unless supervisory authority is delegated
             4751      by the director.
             4752          (4) It is the intent of the Legislature that the Utah Geologic Survey use agency internal
             4753      funding to plan, design, and construct a sample library facility under the supervision of the
             4754      director of the Division of Facilities Construction and Management unless supervisory
             4755      authority is delegated by the director.
             4756          (5) (a) If legislation introduced in the 1996 General Session to fund the Wasatch State
             4757      Park Club House does not pass, the State Building Ownership Authority, under authority of
             4758      Title [63] 63B, Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or
             4759      execute obligations, or enter into or arrange for a lease purchase agreement in which
             4760      participation interests may be created, to provide up to $1,500,000 for the remodel and
             4761      expansion of the clubhouse at Wasatch Mountain State Park for the Division of Parks and
             4762      Recreation, together with additional amounts necessary to:
             4763          (i) pay costs of issuance;
             4764          (ii) pay capitalized interest; and
             4765          (iii) fund any debt service reserve requirements.
             4766          (b) The State Building Ownership Authority shall work cooperatively with the
             4767      Division of Parks and Recreation to seek out the most cost effective and prudent lease purchase
             4768      plan available.
             4769          (6) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4770      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute


             4771      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4772      interests may be created, to provide up to $835,300 for the construction of a liquor store in the
             4773      Snyderville area, together with additional amounts necessary to:
             4774          (i) pay costs of issuance;
             4775          (ii) pay capitalized interest; and
             4776          (iii) fund any debt service reserve requirements.
             4777          (b) The State Building Ownership Authority shall work cooperatively with the
             4778      Department of Alcoholic Beverage Control to seek out the most cost effective and prudent
             4779      lease purchase plan available.
             4780          (7) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4781      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
             4782      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4783      interests may be created, to provide up to $15,000,000 for the construction of the Huntsman
             4784      Cancer Institute, together with additional amounts necessary to:
             4785          (i) pay costs of issuance;
             4786          (ii) pay capitalized interest; and
             4787          (iii) fund any debt service reserve requirements.
             4788          (b) The State Building Ownership Authority shall work cooperatively with the
             4789      University of Utah to seek out the most cost effective and prudent lease purchase plan
             4790      available.
             4791          (c) It is the intent of the Legislature that the University of Utah lease land to the State
             4792      Building Ownership Authority for the construction of the Huntsman Cancer Institute facility.
             4793          (8) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4794      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
             4795      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4796      interests may be created, to provide up to $857,600 for the construction of an addition to the
             4797      Human Services facility in Vernal, Utah together with additional amounts necessary to:
             4798          (i) pay costs of issuance;
             4799          (ii) pay capitalized interest; and
             4800          (iii) fund any debt service reserve requirements.
             4801          (b) The State Building Ownership Authority shall work cooperatively with the


             4802      Department of Human Services to seek out the most cost effective and prudent lease purchase
             4803      plan available.
             4804          (9) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4805      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
             4806      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4807      interests may be created, to provide up to $3,470,200 for the construction of the Student
             4808      Services Center, at the College of Eastern Utah, together with additional amounts necessary to:
             4809          (i) pay costs of issuance;
             4810          (ii) pay capitalized interest; and
             4811          (iii) fund any debt service reserve requirements.
             4812          (b) The State Building Ownership Authority shall work cooperatively with the College
             4813      of Eastern Utah to seek out the most cost effective and prudent lease purchase plan available.
             4814          (10) (a) Notwithstanding anything to the contrary in Title 53B, Chapter 21, Revenue
             4815      Bonds, which prohibits the issuance of revenue bonds payable from legislative appropriations,
             4816      the State Board of Regents, on behalf of Dixie College, may issue, sell, and deliver revenue
             4817      bonds or other evidences of indebtedness of Dixie College to borrow money on the credit of
             4818      the income and revenues, including legislative appropriations, of Dixie College, to finance the
             4819      acquisition of the Dixie Center.
             4820          (b) (i) The bonds or other evidences of indebtedness authorized by this section shall be
             4821      issued in accordance with Title 53B, Chapter 21, Revenue Bonds, under terms and conditions
             4822      and in amounts that the board, by resolution, determines are reasonable and necessary and may
             4823      not exceed $6,000,000 together with additional amounts necessary to:
             4824          (A) pay cost of issuance;
             4825          (B) pay capitalized interest; and
             4826          (C) fund any debt service reserve requirements.
             4827          (ii) To the extent that future legislative appropriations will be required to provide for
             4828      payment of debt service in full, the board shall ensure that the revenue bonds are issued
             4829      containing a clause that provides for payment from future legislative appropriations that are
             4830      legally available for that purpose.
             4831          (11) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4832      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute


             4833      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4834      interests may be created, to provide up to $10,479,000 for the construction of a facility for the
             4835      Courts - Davis County Regional Expansion, together with additional amounts necessary to:
             4836          (i) pay costs of issuance;
             4837          (ii) pay capitalized interest; and
             4838          (iii) fund any debt service reserve requirements.
             4839          (b) The State Building Ownership Authority shall work cooperatively with the Office
             4840      of the Court Administrator to seek out the most cost effective and prudent lease purchase plan
             4841      available.
             4842          (12) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4843      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
             4844      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4845      interests may be created, to provide up to $4,200,000 for the purchase and remodel of the
             4846      Washington County Courthouse, together with additional amounts necessary to:
             4847          (i) pay costs of issuance;
             4848          (ii) pay capitalized interest; and
             4849          (iii) fund any debt service reserve requirements.
             4850          (b) The State Building Ownership Authority shall work cooperatively with the Office
             4851      of the Court Administrator to seek out the most cost effective and prudent lease purchase plan
             4852      available.
             4853          (13) (a) The State Building Ownership Authority, under authority of Title [63] 63B,
             4854      Chapter [9a,] 1, Part 3, State Building Ownership Authority Act, may issue or execute
             4855      obligations, or enter into or arrange for a lease purchase agreement in which participation
             4856      interests may be created, to provide up to $14,299,700 for the construction of a facility for the
             4857      State Library and the Division of Services for the Blind and Visually Impaired, together with
             4858      additional amounts necessary to:
             4859          (i) pay costs of issuance;
             4860          (ii) pay capitalized interest; and
             4861          (iii) fund any debt service reserve requirements.
             4862          (b) The State Building Ownership Authority shall work cooperatively with the Office
             4863      of Education and the [Department of Community and] Governor's Office of Economic


             4864      Development to seek out the most cost effective and prudent lease purchase plan available.
             4865          Section 157. Section 63D-1a-203 is amended to read:
             4866           63D-1a-203. Utah Technology Industry Council.
             4867          (1) As used in this section:
             4868          (a) "Council" means the Utah Technology Industry Council created by this section.
             4869          (b) "Technology industry business in this state" means a business that has as a primary
             4870      function the research, development, production, or marketing of technologies in technology
             4871      sectors including:
             4872          (i) aerospace;
             4873          (ii) biotechnology or other technologies related to life sciences;
             4874          (iii) information technologies or other technologies related to information technologies;
             4875      or
             4876          (iv) other key technology industries sectors as the technology industries develop.
             4877          (2) (a) There is created a Utah Technology Industry Council to act as a body that
             4878      recommends policy to the commission.
             4879          (b) Subject to the requirements of this section, the council:
             4880          (i) shall be organized by the steering committee created under Subsection (3); and
             4881          (ii) operate in accordance with the charter that:
             4882          (A) is initially adopted by the steering committee in accordance with Subsection (4);
             4883      and
             4884          (B) amended as provided in the charter.
             4885          (c) A member of the council shall receive no compensation or benefits for the
             4886      member's services including per diem or expenses incurred in the performance of the member's
             4887      official duties on the council.
             4888          (3) (a) The steering committee described in Subsection (2) shall consist of eight
             4889      members:
             4890          (i) the [executive] director of the [Department of Community and] Governor's Office
             4891      of Economic Development or the [executive] director's designee, provided that the designee is
             4892      a senior officer in the [department] office; and
             4893          (ii) seven members appointed as follows:
             4894          (A) the speaker of the House of Representatives shall appoint two members who are


             4895      present or former senior:
             4896          (I) officers of technology industry businesses in the state; or
             4897          (II) executive directors of technology industry associations in this state;
             4898          (B) the president of the Senate shall appoint two members who are present or former:
             4899          (I) senior officers of technology industry businesses in the state; or
             4900          (II) executive directors of technology industry associations in this state;
             4901          (C) the governor shall appoint two members who are present or former:
             4902          (I) senior officers in technology industry businesses in the state; or
             4903          (II) executive directors of technology industry associations in this state; and
             4904          (D) the chair of the steering committee shall appoint a representative of political
             4905      subdivisions of the state who is an elected official in any Utah municipality or county.
             4906          (b) (i) The members of the steering committee shall elect a chair of the steering
             4907      committee from the steering committee by a majority vote.
             4908          (ii) The chair of the steering committee shall act as chair of the council.
             4909          (c) (i) Except as required by Subsection (3)(c)(ii), a member of the steering committee
             4910      appointed under Subsection (3)(a)(ii) shall be appointed to a term of four years.
             4911          (ii) Notwithstanding the requirements of Subsection (3)(c)(i), at the time of initial
             4912      appointment of the steering committee, the members of the steering committee shall create a
             4913      random process to adjust the length of terms of the initial members of the steering committee to
             4914      ensure that the terms of members are staggered so that approximately half of the steering
             4915      committee is appointed every two years.
             4916          (d) The [Department of Community and] Governor's Office of Economic Development
             4917      shall provide staff to:
             4918          (i) the steering committee; and
             4919          (ii) the council.
             4920          (4) The steering committee appointed under Subsection (3) shall adopt a charter for the
             4921      council by no later than July 1, 2003 that specifies:
             4922          (a) the number, terms, and appointment of voting members of the council, except that
             4923      the voting members of the council shall be:
             4924          (i) present or former senior officers of technology industry businesses in the state;
             4925          (ii) present or former executive directors of technology associations in the state; or


             4926          (iii) representatives of:
             4927          (A) state or local government; or
             4928          (B) public or higher education;
             4929          (b) the number, terms, and appointment of nonvoting members of the council;
             4930          (c) the term of the chair of the council;
             4931          (d) the process to be followed in creating any subcommittees of the council;
             4932          (e) the quorum requirements for the council or for subcommittees of the council to take
             4933      action;
             4934          (f) the processes to be followed to call a meeting of the council or a subcommittee of
             4935      the council, except that:
             4936          (i) any meeting of the council or a subcommittee of the council is subject to Title 52,
             4937      Chapter 4, Open and Public Meetings;
             4938          (ii) members of the commission shall be provided notice of each meeting of the council
             4939      or of a subcommittee of the council; and
             4940          (iii) legislative members of the commission that attend a meeting of the council or a
             4941      subcommittee of the council:
             4942          (A) may not vote unless the legislator is a member of the council or the subcommittee;
             4943      and
             4944          (B) may receive a salary and expenses paid in accordance with Section 36-2-2 and
             4945      Legislative Joint Rule 15.03; and
             4946          (g) the process for amending the charter under which the council operates.
             4947          (5) The council may:
             4948          (a) conduct research or other studies to the extent that funding is available;
             4949          (b) review practices in the worldwide private and public sectors that could foster
             4950      technology business growth in the state;
             4951          (c) prepare an assessment of the current status of technology industries in the state
             4952      including:
             4953          (i) the needs of technology industries in the state; and
             4954          (ii) opportunities for future growth of technology industries in the state;
             4955          (d) develop a strategic plan as to:
             4956          (i) the future of technology industries in the state;


             4957          (ii) the future economic value technology industries can bring to the state; and
             4958          (iii) the future benefits technology industries can bring to the quality of life of the
             4959      citizens in the state;
             4960          (e) develop plans, including public and private sector initiatives, to meet any objectives
             4961      included in the strategic plan statement described in Subsection (5)(d), including proposals to
             4962      support the creation, retention, expansion, or attraction of technology industry businesses in the
             4963      state; and
             4964          (f) study other issues as directed by the commission related to economic development
             4965      of technology industries.
             4966          Section 158. Section 67-19-6.7 is amended to read:
             4967           67-19-6.7. Overtime policies for state employees.
             4968          (1) As used in this section:
             4969          (a) "Accrued overtime hours" means:
             4970          (i) for nonexempt employees, overtime hours earned during a fiscal year that, at the end
             4971      of the fiscal year, have not been paid and have not been taken as time off by the nonexempt
             4972      state employee who accrued them; and
             4973          (ii) for exempt employees, overtime hours earned during an overtime year.
             4974          (b) "Agreement" means the agreement authorized by the FLSA by which a nonexempt
             4975      employee elects the form of compensation he will receive for overtime.
             4976          (c) "Appointed official" means:
             4977          (i) each department executive director and deputy director, each division director, and
             4978      each member of a board or commission; and
             4979          (ii) any other person employed by a department who is appointed by, or whose
             4980      appointment is required by law to be approved by, the governor and who:
             4981          (A) is paid a salary by the state [of Utah]; and
             4982          (B) who exercises managerial, policy-making, or advisory responsibility.
             4983          (d) "Department" means the Department of Administrative Services, the Department of
             4984      Corrections, the Department of Financial Institutions, the Department of Alcoholic Beverage
             4985      Control, the Insurance Department, the Public Service Commission, the Labor Commission,
             4986      the Department of Agriculture and Food, the Department of Human Services, the State Board
             4987      of Education, the Department of Natural Resources, the Department of Transportation, the


             4988      Department of Commerce, the Department of Workforce Services, the State Tax Commission,
             4989      the Department of Community and [Economic Development] Culture, the Department of
             4990      Health, the National Guard, the Department of Environmental Quality, the Department of
             4991      Public Safety, the Department of Human Resource Management, the Commission on Criminal
             4992      and Juvenile Justice, all merit employees except attorneys in the Office of the Attorney
             4993      General, merit employees in the Office of the State Treasurer, and merit employees in the
             4994      Office of the State Auditor.
             4995          (e) "Elected official" means any person who is an employee of the state [of Utah]
             4996      because he was elected by the registered voters of Utah to a position in state government.
             4997          (f) "Exempt employee" means a state employee who is exempt as defined by the FLSA.
             4998          (g) "FLSA" means the Fair Labor Standards Act, 29 U.S.C. Section 201 et seq.
             4999      (1978).
             5000          (h) "Human Resource Management" means the Department of Human Resource
             5001      Management.
             5002          (i) "Nonexempt employee" means a state employee who is nonexempt as defined by
             5003      Human Resource Management applying FLSA requirements.
             5004          (j) "Overtime" means actual time worked in excess of the employee's defined work
             5005      period.
             5006          (k) "Overtime year" means the year determined by a department under Subsection
             5007      (4)(b) at the end of which an exempt employee's accrued overtime lapses.
             5008          (l) (i) "State employee" means every person employed by a department who is not an
             5009      appointed official or an elected official.
             5010          (ii) "State employee" does not mean:
             5011          (A) certificated employees of the State Board of Education; and
             5012          (B) employees of the Department of Community and [Economic Development] Culture
             5013      or the Governor's Office of Economic Development, whose positions are designated as
             5014      schedule AM exempt employees under Section 67-19-15 .
             5015          (m) "Uniform annual date" means the date when an exempt employee's accrued
             5016      overtime lapses.
             5017          (n) "Work period" means:
             5018          (i) for all nonexempt employees, except law enforcement and hospital employees, a


             5019      consecutive seven day 24 hour work period of 40 hours;
             5020          (ii) for all exempt employees, a 14 day, 80 hour payroll cycle; and
             5021          (iii) for nonexempt law enforcement and hospital employees, the period established by
             5022      each department by rule for those employees according to the requirements of the FLSA.
             5023          (2) Each department shall compensate each state employee who works overtime by
             5024      complying with the requirements of this section.
             5025          (3) (a) Each department shall negotiate and obtain a signed agreement from each
             5026      nonexempt employee.
             5027          (b) In the agreement, the nonexempt employee shall elect either to be compensated for
             5028      overtime by:
             5029          (i) taking time off work at the rate of one and one-half hour off for each overtime hour
             5030      worked; or
             5031          (ii) being paid for the overtime worked at the rate of one and one-half times the rate per
             5032      hour that the state employee receives for nonovertime work.
             5033          (c) Any nonexempt employee who elects to take time off under this Subsection (3)
             5034      shall be paid for any overtime worked in excess of the cap established by Human Resource
             5035      Management.
             5036          (d) Before working any overtime, each nonexempt employee shall obtain authorization
             5037      to work overtime from the employee's immediate supervisor.
             5038          (e) Each department shall:
             5039          (i) for employees who elect to be compensated with time off for overtime, allow
             5040      overtime earned during a fiscal year to be accumulated; and
             5041          (ii) for employees who elect to be paid for overtime worked, pay them for overtime
             5042      worked in the paycheck for the pay period in which the employee worked the overtime.
             5043          (f) If the department pays a nonexempt employee for overtime, the department shall
             5044      charge that payment to the department's budget.
             5045          (g) At the end of each fiscal year, the Division of Finance shall total all the accrued
             5046      overtime hours for nonexempt employees and charge that total against the appropriate fund or
             5047      subfund.
             5048          (4) (a) (i) Except as provided in Subsection (4)(a)(ii), each department shall
             5049      compensate exempt employees who work overtime by granting them time off at the rate of one


             5050      hour off for each hour of overtime worked.
             5051          (ii) The director of Human Resource Management may grant limited exceptions to this
             5052      requirement, where work circumstances dictate, by authorizing a department to pay employees
             5053      for overtime worked at the rate per hour that the employee receives for nonovertime work, if
             5054      the department has funds available.
             5055          (b) (i) Each department shall:
             5056          (A) establish in its written personnel policies a uniform annual date for each division
             5057      that is at the end of any pay period; and
             5058          (B) communicate the uniform annual date to its employees.
             5059          (ii) If any department fails to establish a uniform annual date as required by this
             5060      Subsection (4), the director of Human Resource Management, in conjunction with the director
             5061      of the Division of Finance, shall establish the date for that department.
             5062          (c) (i) Any overtime earned under this Subsection (4) is not an entitlement, is not a
             5063      benefit, and is not a vested right.
             5064          (ii) A court may not construe the overtime for exempt employees authorized by this
             5065      Subsection (4) as an entitlement, a benefit, or as a vested right.
             5066          (d) At the end of the overtime year, upon transfer to another department at any time,
             5067      and upon termination, retirement, or other situations where the employee will not return to
             5068      work before the end of the overtime year:
             5069          (i) any of an exempt employee's overtime that is more than the maximum established
             5070      by Human Resource Management rule lapses; and
             5071          (ii) unless authorized by the director of Human Resource Management under
             5072      Subsection (4)(a)(ii), a department may not compensate the exempt employee for that lapsed
             5073      overtime by paying the employee for the overtime or by granting the employee time off for the
             5074      lapsed overtime.
             5075          (e) Before working any overtime, each exempt employee shall obtain authorization to
             5076      work overtime from their immediate supervisor.
             5077          (f) If the department pays an exempt employee for overtime under authorization from
             5078      the director of the Department of Human Resource Management, the department shall charge
             5079      that payment to the department's budget in the pay period earned.
             5080          (5) Human Resource Management shall:


             5081          (a) ensure that the provisions of the FLSA and this section are implemented throughout
             5082      state government;
             5083          (b) determine, for each state employee, whether that employee is exempt, nonexempt,
             5084      law enforcement, or has some other status under the FLSA;
             5085          (c) in coordination with modifications to the systems operated by the Division of
             5086      Finance, make rules:
             5087          (i) establishing procedures for recording overtime worked that comply with FLSA
             5088      requirements;
             5089          (ii) establishing requirements governing overtime worked while traveling and
             5090      procedures for recording that overtime that comply with FLSA requirements;
             5091          (iii) establishing requirements governing overtime worked if the employee is "on call"
             5092      and procedures for recording that overtime that comply with FLSA requirements;
             5093          (iv) establishing requirements governing overtime worked while an employee is being
             5094      trained and procedures for recording that overtime that comply with FLSA requirements;
             5095          (v) subject to the FLSA, establishing the maximum number of hours that a nonexempt
             5096      employee may accrue before a department is required to pay the employee for the overtime
             5097      worked;
             5098          (vi) subject to the FLSA, establishing the maximum number of overtime hours for an
             5099      exempt employee that do not lapse; and
             5100          (vii) establishing procedures for adjudicating appeals of any FLSA determinations
             5101      made by Human Resource Management as required by this section;
             5102          (d) monitor departments for compliance with the FLSA; and
             5103          (e) recommend to the Legislature and the governor any statutory changes necessary
             5104      because of federal government action.
             5105          (6) In coordination with the procedures for recording overtime worked established in
             5106      rule by Human Resource Management, the Division of Finance shall modify its payroll and
             5107      personnel systems to accommodate those procedures.
             5108          (a) Notwithstanding the procedures and requirements of Title 63, Chapter 46b,
             5109      Administrative Procedures Act, Section 67-19-31 , and Section 67-19a-301 , any employee who
             5110      is aggrieved by the FLSA designation made by Human Resource Management as required by
             5111      this section may appeal that determination to the executive director of Human Resource


             5112      Management by following the procedures and requirements established in Human Resource
             5113      Management rule.
             5114          (b) Upon receipt of an appeal under this section, the director shall notify the executive
             5115      director of the employee's department that the appeal has been filed.
             5116          (c) If the employee is aggrieved by the decision of the executive director of Human
             5117      Resource Management, he shall appeal that determination to the Department of Labor, Wage
             5118      and Hour Division, according to the procedures and requirements of federal law.
             5119          Section 159. Section 67-19-12 is amended to read:
             5120           67-19-12. State pay plans -- Applicability of section -- Exemptions -- Duties of
             5121      director.
             5122          (1) (a) This section, and the rules adopted by the department to implement this section,
             5123      apply to each career and noncareer state employee not specifically exempted under Subsection
             5124      (2).
             5125          (b) If not exempted under Subsection (2), a state employee is considered to be in
             5126      classified service.
             5127          (2) The following state employees are exempt from this section:
             5128          (a) members of the Legislature and legislative employees;
             5129          (b) members of the judiciary and judicial employees;
             5130          (c) elected members of the executive branch and their direct staff who meet career
             5131      service exempt criteria as defined in Subsection 67-19-15 (1)(k);
             5132          (d) certificated employees of the State Board of Education;
             5133          (e) officers, faculty, and other employees of state institutions of higher education;
             5134          (f) employees in any position that is determined by statute to be exempt from this
             5135      Subsection (2);
             5136          (g) attorneys in the Office of the Attorney General;
             5137          (h) department heads and other persons appointed by the governor pursuant to statute;
             5138          (i) employees of the Department of Community and [Economic Development] Culture
             5139      whose positions are designated as executive/professional positions by the executive director of
             5140      the Department of Community and [Economic Development] Culture with the concurrence of
             5141      the director; [and]
             5142          (j) employees of the Governor's Office of Economic Development whose positions are


             5143      designated as executive/professional positions by the director of the office; and
             5144          [(j)] (k) employees of the Medical Education Council.
             5145          (3) (a) The director shall prepare, maintain, and revise a position classification plan for
             5146      each employee position not exempted under Subsection (2) to provide equal pay for equal
             5147      work.
             5148          (b) Classification of positions shall be based upon similarity of duties performed and
             5149      responsibilities assumed, so that the same job requirements and the same salary range may be
             5150      applied equitably to each position in the same class.
             5151          (c) The director shall allocate or reallocate the position of each employee in classified
             5152      service to one of the classes in the classification plan.
             5153          (d) (i) The department shall conduct periodic studies and desk audits to provide that the
             5154      classification plan remains reasonably current and reflects the duties and responsibilities
             5155      assigned to and performed by employees.
             5156          (ii) The director shall determine the schedule for studies and desk audits after
             5157      considering factors such as changes in duties and responsibilities of positions or agency
             5158      reorganizations.
             5159          (4) (a) With the approval of the governor, the director shall develop and adopt pay
             5160      plans for each position in classified service.
             5161          (b) The director shall design each pay plan to achieve, to the degree that funds permit,
             5162      comparability of state salary ranges to salary ranges used by private enterprise and other public
             5163      employment for similar work.
             5164          (c) The director shall adhere to the following in developing each pay plan:
             5165          (i) Each pay plan shall consist of sufficient salary ranges to permit adequate salary
             5166      differential among the various classes of positions in the classification plan.
             5167          (ii) The director shall assign each class of positions in the classification plan to a salary
             5168      range and shall set the width of the salary range to reflect the normal growth and productivity
             5169      potential of employees in that class. The width of the ranges need not be uniform for all
             5170      classes of positions in the plan, but each range shall contain merit steps in increments of 2.75%
             5171      salary increases.
             5172          (iii) The director shall issue rules for the administration of pay plans. The rules may
             5173      provide for exceptional performance increases and for a program of incentive awards for


             5174      cost-saving suggestions and other commendable acts of employees. The director shall issue
             5175      rules providing for salary adjustments.
             5176          (iv) Merit step increases shall be granted, if funds are available, to employees who
             5177      receive a rating of "successful" or higher in an annual evaluation of their productivity and
             5178      performance.
             5179          (v) By October 15 of each year, the director shall submit market comparability
             5180      adjustments to the director of the Governor's Office of Planning and Budget for consideration
             5181      to be included as part of the affected agency's base budgets.
             5182          (vi) By October 31 of each year, the director shall recommend a compensation package
             5183      to the governor.
             5184          (vii) Adjustments shall incorporate the results of a total compensation market survey of
             5185      salary ranges and benefits of a reasonable cross section of comparable benchmark positions in
             5186      private and public employment in the state. The survey may also study comparable unusual
             5187      positions requiring recruitment outside Utah in the surrounding western states. The director
             5188      may cooperate with other public and private employers in conducting the survey.
             5189          (viii) The director shall establish criteria to assure the adequacy and accuracy of the
             5190      survey and shall use methods and techniques similar to and consistent with those used in
             5191      private sector surveys. Except as provided under Section 67-19-12.3 , the survey shall include a
             5192      reasonable cross section of employers. The director may cooperate with or participate in any
             5193      survey conducted by other public and private employers.
             5194          (ix) The establishing of a salary range is a nondelegable activity subject to Subsection
             5195      67-19-8 (1) and is not appealable under the grievance procedures of Sections 67-19-30 through
             5196      67-19-32 , Title 67, Chapter 19a, Grievance and Appeal Procedures, or otherwise.
             5197          (x) The governor shall:
             5198          (A) consider salary adjustments recommended under Subsection (4)(c)(vi) in preparing
             5199      the executive budget and shall recommend the method of distributing the adjustments;
             5200          (B) submit compensation recommendations to the Legislature; and
             5201          (C) support the recommendation with schedules indicating the cost to individual
             5202      departments and the source of funds.
             5203          (xi) If funding is approved by the Legislature in a general appropriations act, the
             5204      adjustments take effect on the July 1 following the enactment.


             5205          (5) (a) The director shall regularly evaluate the total compensation program of state
             5206      employees in the classified service.
             5207          (b) The department shall determine if employee benefits are comparable to those
             5208      offered by other private and public employers using information from:
             5209          (i) the most recent edition of the Employee Benefits Survey Data conducted by the U.S.
             5210      Chamber of Commerce Research Center; or
             5211          (ii) the most recent edition of a nationally recognized benefits survey.
             5212          (6) (a) The director shall submit proposals for a state employee compensation plan to
             5213      the governor by October 31 of each year, setting forth findings and recommendations affecting
             5214      state employee compensation.
             5215          (b) The governor shall consider the director's proposals in preparing budget
             5216      recommendations for the Legislature.
             5217          (c) The governor's budget proposals to the Legislature shall include a specific
             5218      recommendation on state employee compensation.
             5219          Section 160. Section 67-19-15 is amended to read:
             5220           67-19-15. Career service -- Exempt positions -- Schedules for civil service
             5221      positions -- Coverage of career service provisions.
             5222          (1) Except as otherwise provided by law or by rules and regulations established for
             5223      federally aided programs, the following positions are exempt from the career service provisions
             5224      of this chapter:
             5225          (a) the governor, members of the Legislature, and all other elected state officers,
             5226      designated as Schedule AA;
             5227          (b) the agency heads enumerated in Section 67-22-2 , and commissioners designated as
             5228      Schedule AB;
             5229          (c) all employees and officers in the office and at the residence of the governor,
             5230      designated as Schedule AC;
             5231          (d) employees who are in a confidential relationship to an agency head or
             5232      commissioner and who report directly to, and are supervised by, a department head,
             5233      commissioner, or deputy director of an agency or its equivalent, designated as Schedule AD;
             5234          (e) unskilled employees in positions requiring little or no specialized skill or training,
             5235      designated as Schedule AE;


             5236          (f) part-time professional noncareer persons who are paid for any form of medical and
             5237      other professional service and who are not engaged in the performance of administrative duties,
             5238      designated as Schedule AF;
             5239          (g) attorneys in the attorney general's office who are under their own career service pay
             5240      plan, designated as Schedule AG;
             5241          (h) teaching staff of all state institutions and patients and inmates employed in state
             5242      institutions, designated as Schedule AH;
             5243          (i) persons appointed to a position vacated by an employee who has a right to return
             5244      under federal or state law or policy, designated as Schedule AI;
             5245          (j) noncareer employees compensated for their services on a seasonal or contractual
             5246      basis who are hired for limited periods of less than nine consecutive months or who are
             5247      employed on less than 1/2 time basis, designated as Schedule AJ;
             5248          (k) those employees in a personal and confidential relationship to elected officials,
             5249      designated as Schedule AK;
             5250          (l) employees appointed to perform work of a limited duration not exceeding two years
             5251      or to perform work with time-limited funding, designated as Schedule AL;
             5252          (m) employees of the Department of Community and [Economic Development]
             5253      Culture whose positions are designated as executive/professional positions by the executive
             5254      director of the Department of Community and [Economic Development] Culture with the
             5255      concurrence of the director, and employees of the Governor's Office of Economic Development
             5256      whose positions are designated as executive/professional positions by the director of the office,
             5257      designated as Schedule AM;
             5258          (n) employees of the Legislature, designated as Schedule AN;
             5259          (o) employees of the judiciary, designated as Schedule AO;
             5260          (p) all judges in the judiciary, designated as Schedule AP;
             5261          (q) members of state and local boards and councils appointed by the governor and
             5262      governing bodies of agencies, other local officials serving in an ex officio capacity, officers,
             5263      faculty, and other employees of state universities and other state institutions of higher
             5264      education, designated as Schedule AQ;
             5265          (r) employees who make statewide policy, designated as Schedule AR; and
             5266          (s) any other employee whose appointment is required by statute to be career service


             5267      exempt, designated as Schedule AS.
             5268          (2) The civil service shall consist of two schedules as follows:
             5269          (a) (i) Schedule A is the schedule consisting of positions exempted by Subsection (1).
             5270          (ii) Removal from any appointive position under Schedule A, unless otherwise
             5271      regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
             5272          (b) Schedule B is the competitive career service schedule, consisting of all positions
             5273      filled through competitive selection procedures as defined by the director.
             5274          (3) (a) The director, after consultation with the heads of concerned executive branch
             5275      departments and agencies and with the approval of the governor, shall allocate positions to the
             5276      appropriate schedules under this section.
             5277          (b) Agency heads shall make requests and obtain approval from the director before
             5278      changing the schedule assignment and tenure rights of any position.
             5279          (c) Unless the director's decision is reversed by the governor, when the director denies
             5280      an agency's request, the director's decision is final.
             5281          (4) (a) Compensation for employees of the Legislature shall be established by the
             5282      directors of the legislative offices in accordance with Section 36-12-7 .
             5283          (b) Compensation for employees of the judiciary shall be established by the state court
             5284      administrator in accordance with Section 78-3-24 .
             5285          (c) Compensation for officers, faculty, and other employees of state universities and
             5286      institutions of higher education shall be established as provided in Title 53B, Chapters 1,
             5287      Governance, Powers, Rights and Responsibilities, and 2, Institutions of Higher Education.
             5288          (d) Unless otherwise provided by law, compensation for all other Schedule A
             5289      employees shall be established by their appointing authorities, within ranges approved by, and
             5290      after consultation with the director of the Department of Human Resources.
             5291          (5) All employees of the Office of State Auditor, the Office of State Treasurer, the
             5292      Office of the Attorney General, excluding attorneys who are under their own career service
             5293      system, and employees who are not exempt under this section are covered by the career service
             5294      provisions of this chapter.
             5295          Section 161. Section 67-19c-101 is amended to read:
             5296           67-19c-101. Department award program.
             5297          (1) As used in this section:


             5298          (a) "Department" means the Department of Administrative Services, the Department of
             5299      Agriculture and Food, the Department of Alcoholic Beverage Control, the Department of
             5300      Commerce, the Department of Community and [Economic Development] Culture, the
             5301      Department of Corrections, the Department of Workforce Services, the Department of
             5302      Environmental Quality, the Department of Financial Institutions, the Department of Health, the
             5303      Department of Human Resource Management, the Department of Human Services, the
             5304      Insurance Department, the National Guard, the Department of Natural Resources, the
             5305      Department of Public Safety, the Public Service Commission, the Labor Commission, the State
             5306      Board of Education, the State Board of Regents, the State Tax Commission, and the
             5307      Department of Transportation.
             5308          (b) "Department head" means the individual or body of individuals in whom the
             5309      ultimate legal authority of the department is vested by law.
             5310          (2) There is created a department awards program to award an outstanding employee in
             5311      each department of state government.
             5312          (3) (a) By April 1 of each year, each department head shall solicit nominations for
             5313      outstanding employee of the year for his department from the employees in his department.
             5314          (b) By July 1 of each year, the department head shall:
             5315          (i) select a person from the department to receive the outstanding employee of the year
             5316      award using the criteria established in Subsection (3)(c); and
             5317          (ii) announce the recipient of the award to his employees.
             5318          (c) Department heads shall make the award to a person who demonstrates:
             5319          (i) extraordinary competence in performing his function;
             5320          (ii) creativity in identifying problems and devising workable, cost-effective solutions to
             5321      them;
             5322          (iii) excellent relationships with the public and other employees;
             5323          (iv) a commitment to serving the public as the client; and
             5324          (v) a commitment to economy and efficiency in government.
             5325          (4) (a) The Department of Human Resource Management shall divide any
             5326      appropriation for outstanding department employee awards that it receives from the Legislature
             5327      equally among the departments.
             5328          (b) If the department receives monies from the Department of Human Resource


             5329      Management or if the department budget allows, the department head shall provide the
             5330      employee with a bonus, a plaque, or some other suitable acknowledgement of the award.
             5331          (5) (a) The department head may name the award after an exemplary present or former
             5332      employee of the department.
             5333          (b) A department head may not name the award for himself or for any relative as
             5334      defined in Section 52-3-1 .
             5335          (c) Any awards or award programs existing in any department as of May 3, 1993, shall
             5336      be modified to conform to the requirements of this section.
             5337          Section 162. Section 67-22-2 is amended to read:
             5338           67-22-2. Compensation -- Other state officers.
             5339          (1) The governor shall establish salaries for the following state officers within the
             5340      following salary ranges fixed by the Legislature:
             5341              State Officer                 Salary Range
             5342          Commissioner of Agriculture and Food     $65,200 - $88,400
             5343          Commissioner of Insurance             $65,200 - $88,400
             5344          Commissioner of the Labor Commission     $65,200 - $88,400
             5345          Director, Alcoholic Beverage Control
             5346              Commission                 $65,200 - $88,400
             5347          Commissioner, Department of
             5348              Financial Institutions             $65,200 - $88,400
             5349          Members, Board of Pardons and Parole     $65,200 - $88,400
             5350          Executive Director, Department
             5351              of Commerce                 $65,200 - $88,400
             5352          Executive Director, Commission on
             5353              Criminal and Juvenile Justice     $65,200 - $88,400
             5354          Adjutant General                 $65,200 - $88,400
             5355          Chair, Tax Commission             $70,600 - $95,200
             5356          Commissioners, Tax Commission         $70,600 - $95,200
             5357          Executive Director, Department of
             5358              Community and [Economic]
             5359              [Development] Culture         [$70,600 - $95,200] $65,200 - $88,400


             5360          Executive Director, Tax Commission     $70,600 - $95,200
             5361          Chair, Public Service Commission         $70,600 - $95,200
             5362          Commissioners, Public Service
             5363              Commission                 $70,600 - $95,200
             5364          Executive Director, Department
             5365              of Corrections                 $76,800 - $103,600
             5366          Commissioner, Department of Public Safety     $76,800 - $103,600
             5367          Executive Director, Department of
             5368              Natural Resources             $76,800 - $103,600
             5369          Director, Governor's Office of Planning
             5370              and Budget                 $76,800 - $103,600
             5371          Executive Director, Department of
             5372              Administrative Services         $76,800 - $103,600
             5373          Executive Director, Department of
             5374              Human Resource Management     $76,800 - $103,600
             5375          Executive Director, Department of
             5376              Environmental Quality         $76,800 - $103,600
             5377          Executive Director, Department of
             5378              Workforce Services             $83,600 - $112,900
             5379          Executive Director, Department of
             5380              Health                     $83,600 - $112,900
             5381          Executive Director, Department
             5382              of Human Services             $83,600 - $112,900
             5383          Executive Director, Department
             5384              of Transportation             $83,600 - $112,900
             5385          Chief Information Officer             $83,600 - $112,900
             5386          Director, Governor's Office
             5387              of Economic Development        $76,800 - $103,600
             5388          (2) (a) The Legislature fixes benefits for the state offices outlined in Subsection (1) as
             5389      follows:
             5390          (i) the option of participating in a state retirement system established by Title 49, Utah


             5391      State Retirement and Insurance Benefit Act, or in a deferred compensation plan administered
             5392      by the State Retirement Office in accordance with the Internal Revenue Code and its
             5393      accompanying rules and regulations;
             5394          (ii) health insurance;
             5395          (iii) dental insurance;
             5396          (iv) basic life insurance;
             5397          (v) unemployment compensation;
             5398          (vi) workers' compensation;
             5399          (vii) required employer contribution to Social Security;
             5400          (viii) long-term disability income insurance;
             5401          (ix) the same additional state-paid life insurance available to other noncareer service
             5402      employees;
             5403          (x) the same severance pay available to other noncareer service employees;
             5404          (xi) the same sick leave, converted sick leave, educational allowances, and holidays
             5405      granted to Schedule B state employees, and the same annual leave granted to Schedule B state
             5406      employees with more than ten years of state service;
             5407          (xii) the option to convert accumulated sick leave to cash or insurance benefits as
             5408      provided by law or rule upon resignation or retirement according to the same criteria and
             5409      procedures applied to Schedule B state employees;
             5410          (xiii) the option to purchase additional life insurance at group insurance rates according
             5411      to the same criteria and procedures applied to Schedule B state employees; and
             5412          (xiv) professional memberships if being a member of the professional organization is a
             5413      requirement of the position.
             5414          (b) Each department shall pay the cost of additional state-paid life insurance for its
             5415      executive director from its existing budget.
             5416          (3) The Legislature fixes the following additional benefits:
             5417          (a) for the executive director of the State Tax Commission a vehicle for official and
             5418      personal use;
             5419          (b) for the executive director of the Department of Transportation a vehicle for official
             5420      and personal use;
             5421          (c) for the executive director of the Department of Natural Resources a vehicle for


             5422      commute and official use;
             5423          (d) for the Commissioner of Public Safety:
             5424          (i) an accidental death insurance policy if POST certified; and
             5425          (ii) a public safety vehicle for official and personal use;
             5426          (e) for the executive director of the Department of Corrections:
             5427          (i) an accidental death insurance policy if POST certified; and
             5428          (ii) a public safety vehicle for official and personal use;
             5429          (f) for the Adjutant General a vehicle for official and personal use; and
             5430          (g) for each member of the Board of Pardons and Parole a vehicle for commute and
             5431      official use.
             5432          (4) (a) The governor has the discretion to establish a specific salary for each office
             5433      listed in Subsection (1), and, within that discretion, may provide salary increases within the
             5434      range fixed by the Legislature.
             5435          (b) The governor shall apply the same overtime regulations applicable to other FLSA
             5436      exempt positions.
             5437          (c) The governor may develop standards and criteria for reviewing the performance of
             5438      the state officers listed in Subsection (1).
             5439          (5) Salaries for other Schedule A employees, as defined in Section 67-19-15 , which are
             5440      not provided for in this chapter, or in Title 67, Chapter 8, Utah Executive and Judicial Salary
             5441      Act, shall be established as provided in Section 67-19-15 .
             5442          Section 163. Section 72-1-209 is amended to read:
             5443           72-1-209. Department to cooperate in programs relating to scenic centers.
             5444          The department shall cooperate in planning and promoting road-building programs into
             5445      the scenic centers of the state and in providing camping grounds and facilities in scenic centers
             5446      for tourists with:
             5447          (1) the [Department of Community and] Governor's Office of Economic Development;
             5448          [(2) the Division of Travel Development;]
             5449          [(3)] (2) other states;
             5450          [(4)] (3) all national, state, and local planning and zoning agencies and boards;
             5451          [(5)] (4) municipal and county officials; and
             5452          [(6)] (5) other agencies.


             5453          Section 164. Section 72-4-302 is amended to read:
             5454           72-4-302. Utah State Scenic Byway Committee -- Creation -- Membership --
             5455      Meetings -- Expenses.
             5456          (1) There is created the Utah State Scenic Byway Committee.
             5457          (2) The committee shall consist of the following members:
             5458          (a) a representative from each of the following [agencies] entities appointed by each
             5459      respective [agency] entity:
             5460          (i) the [Division of Travel] Governor's Office of Economic Development;
             5461          (ii) the Utah Department of Transportation;
             5462          (iii) the Utah Association of Governments;
             5463          (iv) the Division of State Parks and Recreation;
             5464          (v) the Federal Highway Administration;
             5465          (vi) the National Park Service;
             5466          (vii) the National Forest Service;
             5467          (viii) the Bureau of Land Management; and
             5468          (ix) the Utah Travel Regions Association;
             5469          (b) two local government tourism representatives selected by the state [agencies]
             5470      entities identified in Subsection (2)(a); and
             5471          (c) a representative from the private sector selected by the state [agencies] entities
             5472      identified in Subsection (2)(a).
             5473          (3) (a) The representative from the [Division of Travel] Governor's Office of Economic
             5474      Development shall chair the committee.
             5475          (b) The members appointed under Subsections (2)(a)(v), (vi), (vii), and (viii) serve as
             5476      nonvoting, ex officio members of the committee.
             5477          (4) The [Division of Travel] Governor's Office of Economic Development and the
             5478      department shall provide staff support to the committee.
             5479          (5) (a) The chair may call a meeting of the committee only with the concurrence of the
             5480      department.
             5481          (b) A majority of the voting members of the committee constitute a quorum.
             5482          (c) Action by a majority vote of a quorum of the committee constitutes action by the
             5483      committee.


             5484          (6) (a) (i) Members who are not state government employees shall receive no
             5485      compensation or benefits for their services, but may receive per diem and expenses incurred in
             5486      the performance of the member's official duties at the rates established by the Division of
             5487      Finance under Sections 63A-3-106 and 63A-3-107 .
             5488          (ii) Members may decline to receive per diem and expenses for their service.
             5489          (b) (i) State government officer and employee members who do not receive salary, per
             5490      diem, or expenses from their agency for their service may receive per diem and expenses
             5491      incurred in the performance of their official duties at the rates established by the Division of
             5492      Finance under Sections 63A-3-106 and 63A-3-107 .
             5493          (ii) State government officer and employee members may decline to receive per diem
             5494      and expenses for their service.
             5495          (c) (i) Local government members who do not receive salary, per diem, or expenses
             5496      from the entity that they represent for their service may receive per diem and expenses incurred
             5497      in the performance of their official duties at the rates established by the Division of Finance
             5498      under Sections 63A-3-106 and 63A-3-107 .
             5499          (ii) Local government members may decline to receive per diem and expenses for their
             5500      service.
             5501          Section 165. Section 72-7-504 is amended to read:
             5502           72-7-504. Advertising prohibited near interstate or primary system -- Exceptions
             5503      -- Logo advertising -- Department rules.
             5504          (1) Outdoor advertising that is capable of being read or comprehended from any place
             5505      on the main-traveled way of an interstate or primary system may not be erected or maintained,
             5506      except:
             5507          (a) directional and other official signs and notices authorized or required by law,
             5508      including signs and notices pertaining to natural wonders and scenic and historic attractions,
             5509      informational or directional signs regarding utility service, emergency telephone signs, buried
             5510      or underground utility markers, and above ground utility closure signs;
             5511          (b) signs advertising the sale or lease of property upon which they are located;
             5512          (c) signs advertising activities conducted on the property where they are located,
             5513      including signs on the premises of a public assembly facility as provided in Section 72-7-504.5 ;
             5514          (d) signs located in a commercial or industrial zone;


             5515          (e) signs located in unzoned industrial or commercial areas as determined from actual
             5516      land uses; and
             5517          (f) logo advertising under Subsection (2).
             5518          (2) (a) The department may itself or by contract erect, administer, and maintain
             5519      informational signs on the main-traveled way of an interstate or primary system for the display
             5520      of logo advertising and information of interest to the traveling public if:
             5521          (i) the department complies with Title 63, Chapter 56, Utah Procurement Code, in the
             5522      lease or other contract agreement with a private party for the sign or sign space; and
             5523          (ii) the private party for the lease of the sign or sign space pays an amount set by the
             5524      department to be paid to the department or the party under contract with the department under
             5525      this Subsection (2).
             5526          (b) The amount shall be sufficient to cover the costs of erecting, administering, and
             5527      maintaining the signs or sign spaces.
             5528          (c) The department may consult the [Division of Travel] Governor's Office of
             5529      Economic Development in carrying out this Subsection (2).
             5530          (3) (a) Revenue generated under Subsection (2) shall be:
             5531          (i) applied first to cover department costs under Subsection (2); and
             5532          (ii) deposited in the Transportation Fund.
             5533          (b) Revenue in excess of costs under Subsection (2)(a) shall be deposited in the
             5534      General Fund as a dedicated credit for use by the [Division of Travel] Governor's Office of
             5535      Economic Development no later than the following fiscal year.
             5536          (4) Outdoor advertising under Subsections (1)(a), (d), (e), and (f) shall conform to the
             5537      rules made by the department under Sections 72-7-506 and 72-7-507 .
             5538          Section 166. Section 73-10c-3 is amended to read:
             5539           73-10c-3. Water Development Coordinating Council created -- Purpose --
             5540      Members.
             5541          (1) (a) There is created within the Department of Natural Resources a Water
             5542      Development Coordinating Council. The council comprises:
             5543          (i) the director of the Division of Water Resources;
             5544          (ii) the executive secretary of the Water Quality Board;
             5545          (iii) the executive secretary of the Drinking Water Board;


             5546          (iv) the executive director of the Department of Community and [Economic
             5547      Development] Culture or [his] the executive director's designee; and
             5548          (v) the state treasurer or [his] the treasurer's designee.
             5549          (b) The council shall choose a chair and vice chair from among its own members.
             5550          (c) (i) State government officer and employee members who do not receive salary, per
             5551      diem, or expenses from their agency for their service may receive per diem and expenses
             5552      incurred in the performance of their official duties from the council at the rates established by
             5553      the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             5554          (ii) State government officer and employee members may decline to receive per diem
             5555      and expenses for their service.
             5556          (2) The purposes of the council are to:
             5557          (a) coordinate the use and application of the funds available to the state to give
             5558      financial assistance to political subdivisions of this state so as to promote the conservation,
             5559      development, treatment, restoration, and protection of the waters of this state;
             5560          (b) promote the coordination of the financial assistance programs administered by the
             5561      state and the use of the financing alternative most economically advantageous to the state and
             5562      its political subdivisions;
             5563          (c) promote the consideration by the Board of Water Resources, Drinking Water
             5564      Board, and Water Quality Board of regional solutions to the water and wastewater needs of
             5565      individual political subdivisions of this state; and
             5566          (d) assess the adequacy and needs of the state and its political subdivisions with respect
             5567      to water-related infrastructures and advise the governor and the Legislature on those funding
             5568      needs.
             5569          Section 167. Repealer.
             5570          This bill repeals:
             5571          Section 9-2-206, Director of division.
             5572          Section 9-2-801, Short title.
             5573          Section 9-2-809, State's share in moneys from technology and applications.
             5574          Section 9-2-1501, Title -- Purpose.
             5575          Section 9-2-1502, Definitions.
             5576          Section 9-2-1503, Community Economic Development Project Fund created --


             5577      Administration.
             5578          Section 9-2-1504, Distribution of fund moneys.
             5579          Section 9-2-1505, Entities authorized to receive fund moneys.
             5580          Section 9-2-1506, Application process and priorities.
             5581          Section 9-2-1507, Annual accounting.
             5582          Section 9-2-1705, Creation of Tourism Marketing Performance Fund Committee --
             5583      Members -- Appointment -- Qualifications --Terms -- Quorum -- Per diem and expenses
             5584      -- Staff.
             5585          Section 9-2-1706, Duties of Tourism Marketing Performance Fund Committee.
             5586          Section 168. Study on the implementation of the restructuring of the Department
             5587      of Community and Economic Development.
             5588          (1) The Legislature's Workforce Services and Community and Economic Development
             5589      Interim Committee shall monitor and study the implementation and consequences of the
             5590      restructuring of the Department of Community and Economic Development into the Governor's
             5591      Office of Economic Development and the Department of Community and Culture as required
             5592      in this H.B. 318.
             5593          (2) The committee shall conduct its study to determine what modifications, if any, may
             5594      be needed in the office, or the department, or both to further enhance the state's economic
             5595      development and community and culture programs and policies.
             5596          (3) The committee shall complete the study required by Subsection (1) and present its
             5597      findings, including any proposed legislation, to the Legislative Management Committee by
             5598      November 30, 2005.
             5599          Section 169. Effective date.
             5600          This bill takes effect on July 1, 2005.




Legislative Review Note
    as of 2-18-05 10:26 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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