S.B. 10 Enrolled

1

INDUSTRIAL ASSISTANCE FUND
2 AMENDMENTS - RURAL FAST TRACK
3 PROGRAM
4 2007 GENERAL SESSION
5 STATE OF UTAH
6 Chief Sponsor: John W. Hickman
7 House Sponsor: Steven R. Mascaro
8 Cosponsors:Dan R. EastmanPeter C. Knudson 9
10 LONG TITLE
11 General Description:
12 This bill modifies provisions of the Industrial Assistance Fund by creating a Rural Fast
13 Track Program as a component of the fund to help provide an efficient way for small
14 companies in rural Utah to receive incentives for creating high paying jobs in the rural
15 areas of the state and to further promote business and economic development in rural
16 Utah.
17 Highlighted Provisions:
18 This bill:
19 . creates the Rural Fast Track Program as a funded component of the economically
20 disadvantaged rural areas designation within the Industrial Assistance Fund to
21 provide a financial incentive for small companies in rural Utah that create high
22 paying jobs;
23 . provides that 20% of the money in the Industrial Assistance Fund shall be used to
24 fund the program and for a reallocation of money not used in the program by the
25 end of the third quarter of any given fiscal year;
26 . provides for an application procedure, qualification criteria, and an approval
27 process;
28 . provides criteria on which awards are based for the creation of new incremental
29 high paying jobs in rural Utah; and

30 . provides for quarterly reports to the Board of Business and Economic Development
31 and annual reports to the Legislature on awards made under the program.
32 Monies Appropriated in this Bill:
33 None
34 Other Special Clauses:
35 None
36 Utah Code Sections Affected:
37 ENACTS:
38 63-38f-903.5, Utah Code Annotated 1953
39
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 63-38f-903.5 is enacted to read:
42 63-38f-903.5. Rural Fast Track Program -- Creation -- Funding -- Qualifications
43 for program participation -- Awards -- Reports.
44 (1) (a) There is created the Rural Fast Track Program, hereafter referred to in this
45 section as "the program."
46 (b) The program is a funded component of the economically disadvantaged rural areas
47 designation in Subsection 63-38f-903 (1)(a).
48 (2) The purpose of the program is to provide an efficient way for small companies in
49 rural Utah to receive incentives for creating high paying jobs in the rural areas of the state and
50 to further promote business and economic development in rural Utah.
51 (3) (a) Twenty percent of the money in the Industrial Assistance Fund at the beginning
52 of each fiscal year shall be used to fund the program.
53 (b) The 20% referred to in Subsection (3)(a) is not in addition to but is a part of the up
54 to 50% designation for economically disadvantaged rural areas referred to in Subsection
55 63-38f-903 (1)(a).
56 (c) If any of the 20% allocation referred to in Subsection (3)(a) has not been used in the
57 program by the end of the third quarter of each fiscal year, that money may be used for any

58 other loan, grant, or assistance program offered through the Industrial Assistance Fund during
59 the fiscal year.
60 (4) (a) To qualify for participation in the program a company shall:
61 (i) complete and file with the office an application for participation in the program,
62 signed by an officer of the company;
63 (ii) be located and conduct its business operations in a county in the state that has:
64 (A) a population of less than 30,000; and
65 (B) an average household income of less than $60,000 as reflected in the most recently
66 available data collected and reported by the United States Census Bureau;
67 (iii) have been in business in the state for at least two years; and
68 (iv) have at least two employees.
69 (b) (i) Office staff shall verify an applicant's qualifications under Subsection (4)(a).
70 (ii) The application must be approved by the administrator in order for a company to
71 receive an incentive or other assistance under this section.
72 (c) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
73 administrator may make rules governing:
74 (i) the content of the application form referred to in Subsection (4)(a)(i);
75 (ii) who qualifies as an employee under Subsection (4)(a)(iv); and
76 (iii) the verification procedure referred to in Subsection (4)(b).
77 (5) (a) The administrator shall make incentive cash awards to small companies under
78 this section based on the following criteria:
79 (i) $1,000 for each new incremental job that pays over 110% of the county's average
80 annual wage;
81 (ii) $1,250 for each incremental job that pays over 115% of the county's average annual
82 wage; and
83 (iii) $1,500 for each incremental job that pays over 125% of the county's average
84 annual wage.
85 (b) The administrator shall make a cash award under Subsection (5)(a) when a new

86 incremental job has been in place for at least 12 months.
87 (c) The creation of a new incremental job by a company is based on the number of
88 employees at the company during the previous 24 months.
89 (d) (i) A small company may also apply for grants, loans, or other financial assistance
90 under the program to help develop its business in rural Utah and may receive up to $50,000
91 under the program if approved by the administrator.
92 (ii) The board must approve a distribution that exceeds the $50,000 cap under
93 Subsection (5)(d)(i).
94 (6) The administrator shall make a quarterly report to the board of the awards made by
95 the administrator under this section and an annual report to the Legislative Workforce Services
96 and Community and Economic Development Interim Committee as to the awards and their
97 impact on economic development in the state's rural areas.