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S.B. 31 Enrolled





Chief Sponsor: Ralph Okerlund

House Sponsor: Christine F. Watkins

             6      Cosponsor:Daniel R. Liljenquist              7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends provisions of the Industrial Assistance Fund regarding the Rural Fast
             11      Track Program.
             12      Highlighted Provisions:
             13          This bill:
             14          .    provides that one of the purposes of the Rural Fast Track Program is to use the
             15      Business Expansion and Retention Initiative to further promote business and
             16      economic development in rural Utah; and
             17          .    provides for the Office of Rural Development to administer the Initiative.
             18      Money Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          63M-1-904, as last amended by Laws of Utah 2010, Chapter 278
             26      Be it enacted by the Legislature of the state of Utah:
             27          Section 1. Section 63M-1-904 is amended to read:
             28           63M-1-904. Rural Fast Track Program -- Creation -- Funding -- Qualifications
             29      for program participation -- Awards -- Reports.

             30          (1) (a) There is created the Rural Fast Track Program, hereafter referred to in this
             31      section as "the program."
             32          (b) The program is a funded component of the economically disadvantaged rural areas
             33      designation in Subsection 63M-1-903 (1)(a).
             34          (2) (a) The purpose of the program is to:
             35          (i) provide an efficient way for small companies in rural Utah to receive incentives for
             36      creating high paying jobs in the rural areas of the state; and
             37          (ii) use the Business Expansion and Retention Initiative to further promote business
             38      and economic development in rural Utah.
             39          (b) The Office of Rural Development shall administer the Business Expansion and
             40      Retention Initiative for the rural areas of the state.
             41          (3) (a) Twenty percent of the money in the Industrial Assistance Account at the
             42      beginning of each fiscal year shall be used to fund the program.
             43          (b) The 20% referred to in Subsection (3)(a) is not in addition to but is a part of the up
             44      to 50% designation for economically disadvantaged rural areas referred to in Subsection
             45      63M-1-903 (1)(a).
             46          (c) If any of the 20% allocation referred to in Subsection (3)(a) has not been used in the
             47      program by the end of the third quarter of each fiscal year, that money may be used for any
             48      other loan, grant, or assistance program offered through the Industrial Assistance Account
             49      during the fiscal year.
             50          (4) (a) To qualify for participation in the program a company shall:
             51          (i) complete and file with the office an application for participation in the program,
             52      signed by an officer of the company;
             53          (ii) be located and conduct its business operations in a county in the state that has:
             54          (A) a population of less than 30,000; and
             55          (B) an average household income of less than $60,000 as reflected in the most recently
             56      available data collected and reported by the United States Census Bureau;
             57          (iii) have been in business in the state for at least two years; and

             58          (iv) have at least two employees.
             59          (b) (i) Office staff shall verify an applicant's qualifications under Subsection (4)(a).
             60          (ii) The application must be approved by the administrator in order for a company to
             61      receive an incentive or other assistance under this section.
             62          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             63      administrator may make rules governing:
             64          (i) the content of the application form referred to in Subsection (4)(a)(i);
             65          (ii) who qualifies as an employee under Subsection (4)(a)(iv); and
             66          (iii) the verification procedure referred to in Subsection (4)(b).
             67          (5) (a) The administrator shall make incentive cash awards to small companies under
             68      this section based on the following criteria:
             69          (i) $1,000 for each new incremental job that pays over 110% of the county's average
             70      annual wage;
             71          (ii) $1,250 for each incremental job that pays over 115% of the county's average annual
             72      wage; and
             73          (iii) $1,500 for each incremental job that pays over 125% of the county's average
             74      annual wage.
             75          (b) The administrator shall make a cash award under Subsection (5)(a) when a new
             76      incremental job has been in place for at least 12 months.
             77          (c) The creation of a new incremental job by a company is based on the number of
             78      employees at the company during the previous 24 months.
             79          (d) (i) A small company may also apply for grants, loans, or other financial assistance
             80      under the program to help develop its business in rural Utah and may receive up to $50,000
             81      under the program if approved by the administrator.
             82          (ii) The board must approve a distribution that exceeds the $50,000 cap under
             83      Subsection (5)(d)(i).
             84          (6) The administrator shall make a quarterly report to the board of the awards made by
             85      the administrator under this section and an annual report to the Legislative Workforce Services

             86      and Community and Economic Development Interim Committee as to the awards and their
             87      impact on economic development in the state's rural areas.

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