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H.B. 37 Enrolled





Chief Sponsor: David Clark

Senate Sponsor: Curtis S. Bramble

             7      LONG TITLE
             8      General Description:
             9          This bill provides for the establishment and administration of business resource centers
             10      by the Governor's Office of Economic Development.
             11      Highlighted Provisions:
             12          This bill:
             13          .    enacts the Utah Business Resource Centers Act;
             14          .    creates a partnership between the Governor's Office of Economic Development and
             15      state institutions of higher education to establish business resource centers;
             16          .    specifies that the primary functions of a business resource center are to coordinate
             17      economic development activities in a geographical area of the state and to measure
             18      economic impact;
             19          .    provides for the composition and administration of the business resource centers;                  
             20          .    provides duties and responsibilities for the centers; and
             21          .    creates the Utah Business Resource Centers Advisory Board.
             22      Monies Appropriated in this Bill:
             23          This bill appropriates:
             24          .    as an ongoing appropriation subject to future budget constraints, $125,000 from the
             25      General Fund for fiscal year 2008-09 to the Governor's Office of Economic
             26      Development.
             27      Other Special Clauses:
             28          This bill takes effect on July 1, 2008.
             29      Utah Code Sections Affected:

             30      ENACTS:
             31          63-38f-2401, Utah Code Annotated 1953
             32          63-38f-2402, Utah Code Annotated 1953
             33          63-38f-2403, Utah Code Annotated 1953
             34          63-38f-2404, Utah Code Annotated 1953
             35          63-38f-2405, Utah Code Annotated 1953
             36          63-38f-2406, Utah Code Annotated 1953
             37          63-38f-2407, Utah Code Annotated 1953
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 63-38f-2401 is enacted to read:
Part 24. Utah Business Resource Centers Act

             42          63-38f-2401. Title.
             43          This part is known as the "Utah Business Resource Centers Act."
             44          Section 2. Section 63-38f-2402 is enacted to read:
             45          63-38f-2402. Purpose.
             46          The Legislature recognizes that:
             47          (1) the development of and assistance to business in Utah is a state public purpose
             48      necessary to assure the growth of the state's economy and provide adequate employment
             49      opportunities for its citizens;
             50          (2) public colleges and universities in the state hereafter, referred to as "host
             51      institutions," have academic and physical resources that can enhance economic development
             52      within the state through a partnership with the Governor's Office of Economic Development;
             53          (3) state funded economic development agencies, hereafter referred to as "agencies"
             54      could broaden and improve services to business clients through better regional and statewide
             55      coordination;
             56          (4) coordination of business clients needs is best done in the regions where they are
             57      established;

             58          (5) this coordination needs to be done under the direction of one designated state
             59      agency;
             60          (6) an important tool in these coordination efforts will be the development of a data
             61      base to identify, track, and assign agencies to be accountable for clients;
             62          (7) agency accountability can be improved through client tracking and monitoring at the
             63      regional level;
             64          (8) the state has historically experienced a high business start-up rate and has
             65      experienced a commensurate failure rate partially due to lack of coordination and accountability
             66      by state agencies;
             67          (9) the state's economy will continue to improve as state agencies and resources
             68      become more responsive to private business by identifying them, focusing on their needs, and
             69      tracking their progress; and
             70          (10) the governor and the Legislature will benefit from an annual report measuring tax
             71      revenue increases, new job creation, and other economic impact as a result of tracking and
             72      measuring state agencies' performance in the various regions of the state.
             73          Section 3. Section 63-38f-2403 is enacted to read:
             74          63-38f-2403. Definitions.
             75          As used in this part, "business resource centers" means entities established by the
             76      Governor's Office of Economic Development in partnership with state public institutions of
             77      higher education as certified resource centers to provide private businesses with one-stop
             78      technical assistance and access to statewide resources and programs, and to identify, coordinate,
             79      track, and measure the impact of business resource programs provided by state agencies in the
             80      various regions of the state.
             81          Section 4. Section 63-38f-2404 is enacted to read:
             82          63-38f-2404. Establishment and administration of business resource centers --
             83      Components.
             84          (1) The Governor's Office of Economic Development, hereafter referred to in this part
             85      as "the office," shall establish business resource centers in at least four different geographical

             86      regions of the state where host institutions are located and the host institutions agree to enter
             87      into a business resource center partnership with the office.
             88          (2) The office, in partnership with a host institution, shall provide methodology and
             89      oversight for a business resource center.
             90          (3) A host institution shall contribute 50% of a business resource center's operating
             91      costs through cash or in-kind contributions, unless otherwise provided under Subsection
             92      63-38f-2407 (6).
             93          (4) The office shall work with the Utah Business Resource Centers Advisory Board
             94      established under Section 63-38f-2406 , hereafter referred to in this part as "the board," to
             95      provide operational oversight and coordination of the business resource centers established
             96      under this part.
             97          (5) (a) A business resource center shall work with state agencies in creating methods to
             98      coordinate functions and measure the impact of the efforts provided by the state agencies and
             99      the center.
             100          (b) The host institution, state, local and federal governmental entities,
             101      quasi-governmental entities, and private entities may:
             102          (i) participate in the activities offered by or through a business resource center; and
             103          (ii) provide personnel or other appropriate links to the center.
             104          (c) (i) Other entities that are not initially involved in the establishment of a business
             105      resource center and that are capable of providing supportive services to Utah businesses may
             106      apply to the center to become a provider of services at the center.
             107          (ii) Entities identified in Subsections (5)(a) and (b) shall provide the board with a
             108      service plan, to include funding, which would be made available or supplied to cover the
             109      expenses of their services offered at a business resource center.
             110          (iii) The board shall review each application made under Subsection (5)(c)(i) and make
             111      a recommendation for approval by the office as a precondition for providing the service being
             112      offered.
             113          (6) A business resource center may:

             114          (a) partner with the Governor's Office of Economic Development, other host
             115      institutions, and other entities to develop and establish web-based access to virtual business
             116      resource center services over the Internet to assist in establishing and growing businesses in the
             117      state, particularly in those situations where traveling to a business resource center site is not
             118      practical;
             119          (b) develop a data base and software for:
             120          (i) tracking clients and their progress; and
             121          (ii) tracking responses and services provided by state agencies and evaluating their
             122      effectiveness; and
             123          (c) develop outreach programs and services targeted to business clients in rural areas of
             124      the state.
             125          (7) The Governor's Office of Economic Development shall make a report by November
             126      1 of each year to the Workforce Services and Community and Economic Development and
             127      Business and Labor Interim Committees and the state board of regents on measured
             128      performance of economic development programs offered by or through established business
             129      resource centers.
             130          Section 5. Section 63-38f-2405 is enacted to read:
             131          63-38f-2405. Duties and responsibilities.
             132          (1) A business resource center shall:
             133          (a) have a director;
             134          (b) be the organization responsible for identifying, tracking, coordinating, and
             135      measuring output of assisted business clients in its region;
             136          (c) develop programs to aid business clients in finding the resources they need;
             137          (d) recruit state funded agencies to locate and establish their programs in the business
             138      center's region;
             139          (e) initiate and encourage business education programs, including programs in
             140      collaboration with public, private, and governmental and educational institutions; and
             141          (f) work with the host institution in providing academic resources, including faculty and

             142      student assistance.
             143          (2) A business resource center shall collaborate with the host institution and state
             144      agencies to:
             145          (a) provide research, development, or training programs for new or existing businesses,
             146      industries, or high technology business located in its region;
             147          (b) assist in providing needs assessment relating to new or existing businesses,
             148      industries, or high technology business in conjunction with other public or private economic
             149      development programs or initiatives;
             150          (c) assist in providing business incubator space or services, or both, if considered
             151      feasible and practical, to clients based on criteria established by the office in consultation with
             152      the board;
             153          (d) work with local business leaders and government officials to help them formulate
             154      and implement sound, coordinated, and measurable economic development programs for their
             155      communities; and
             156          (e) work with local government and other entities in its region in developing and
             157      certifying non-state funded satellite business resource centers.
             158          Section 6. Section 63-38f-2406 is enacted to read:
             159          63-38f-2406. Utah Business Resource Centers Advisory Board -- Creation --
             160      Membership -- Vacancies -- Chairs.
             161          (1) There is created the Utah Business Resource Centers Advisory Board, composed of
             162      at least nine members appointed by the executive director of the Governor's Office of Economic
             163      Development.
             164          (2) The executive director:
             165          (a) shall appoint one member from each host institution;
             166          (b) shall appoint three members from urban areas in the state; and
             167          (c) shall appoint two members from rural areas in the state.
             168          (3) Each board member shall have a background or expertise in any one or all of the
             169      following:

             170          (a) state or local economic development;
             171          (b) business networking, growth, or development;
             172          (c) entrepreneurship;
             173          (d) business management or administration; or
             174          (e) the establishment of partnerships or collaborative efforts with state, local, and
             175      federal agencies and institutions, as well as private entities.
             176          (4) (a) The executive director shall appoint board members for four-year terms.
             177          (b) The board shall, at the time of appointment or reappointment, adjust the length of
             178      terms to ensure that the terms of these members are staggered so that approximately half of the
             179      members are appointed every two years.
             180          (c) When a vacancy occurs in the membership for any reason, the replacement shall be
             181      appointed by the executive director for the unexpired term in the same manner as the vacated
             182      member was chosen.
             183          (5) The board shall elect one of its members as a chair of the board for a two-year term.
             184          (6) The board shall meet at the call of the chair, but at least quarterly.
             185          (7) (a) A majority of the members of the board constitute a quorum.
             186          (b) The action of a majority of a quorum constitutes the action of the board.
             187          (8) (a) A board member may not receive compensation or benefits for the member's
             188      service, but may receive per diem and expenses incurred in the performance of the member's
             189      official duties at the rates established by the Division of Finance under Sections 63A-3-106 and
             190      63A-3-107 .
             191          (b) A member may decline to receive per diem and expenses authorized under Section
             192      (8)(a).
             193          Section 7. Section 63-38f-2407 is enacted to read:
             194          63-38f-2407. Duties.
             195          The board shall:
             196          (1) make recommendations to the office on requirements for the requisite certification
             197      of each business resource center and staff at each center by the executive director;

             198          (2) make recommendations to the office for certification of the business plans the board
             199      is required to review under Subsection 63-38f-2404 (5)(c)(iii);
             200          (3) if requested by the executive director, assist the office in providing operational
             201      oversight to and coordination of the business resource centers established under this part;
             202          (4) identify issues and make recommendations to the office regarding programs,
             203      policies, and procedures that could be implemented by business resource centers in fulfilling
             204      their duties and responsibilities under Section 63-38f-2405 ;
             205          (5) make budget recommendations to the office regarding the operation and staffing of
             206      business resource centers established under this part;
             207          (6) recommend matching fund exceptions under Subsection 63-38f-2404 (3);
             208          (7) recommend certification of all non-state funded satellite business resource centers;
             209      and
             210          (8) establish metrics to report the performance of economic development output in each
             211      region serviced by a business resource center.
             212          Section 8. Appropriation.
             213          As an ongoing appropriation subject to future budget constraints, there is appropriated
             214      from the General Fund for fiscal year 2008-09, $125,000 to the Governor's Office of Economic
             215      Development.
             216          Section 9. Effective date.
             217          This bill takes effect on July 1, 2008.

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