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S.B. 198






Chief Sponsor: Scott K. Jenkins

House Sponsor: Gage Froerer

             8      LONG TITLE
             9      General Description:
             10          This bill creates a State Small Business Credit Initiative Program Fund to be
             11      administered by the Division of Housing and Community Development.
             12      Highlighted Provisions:
             13          This bill:
             14          .    creates the State Small Business Credit Initiative Program Fund;
             15          .    provides for the fund to be administered by the director of the Division of Housing
             16      and Community Development within the Department of Community and Culture;
             17          .    provides that the director may make loans and loan guarantees from the fund for the
             18      Small Business Initiative created by the federal government to use federal money
             19      for programs that leverage private money to help finance small businesses and
             20      manufacturers that are creditworthy but not receiving the loans needed to expand
             21      and create jobs;
             22          .    provides for distribution of fund money; and
             23          .    provides for an annual accounting of fund money.
             24      Money Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None

             28      Utah Code Sections Affected:
             29      AMENDS:
             30          63J-1-602.1, as enacted by Laws of Utah 2010, Chapter 265
             31      ENACTS:
             32          9-4-1601, Utah Code Annotated 1953
             33          9-4-1602, Utah Code Annotated 1953
             34          9-4-1603, Utah Code Annotated 1953
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 9-4-1601 is enacted to read:
Part 16. State Small Business Credit Initiative Program Fund

             39          9-4-1601. Creation and administration.
             40          (1) There is created an enterprise fund known as the "State Small Business Credit
             41      Initiative Program Fund" administered by the director of the division or the director's designee.
             42          (2) The division is the administrator of the fund.
             43          (3) Revenues deposited into the fund shall consist of:
             44          (a) grants, pay backs, bonuses, entitlements, and other money received from the federal
             45      government to implement the State Small Business Credit Initiative; and
             46          (b) transfers, grants, gifts, bequests, or any money made available from any source to
             47      implement this part.
             48          (4) (a) The state treasurer shall invest the money in the fund according to the
             49      procedures and requirements of Title 51, Chapter 7, State Money Management Act.
             50          (b) All interest or other earnings derived from the fund money shall be deposited in the
             51      fund.
             52          (5) The division may use fund money for administration of the fund, but not to exceed
             53      4% of the annual receipts to the fund.
             54          Section 2. Section 9-4-1602 is enacted to read:
             55          9-4-1602. Distribution of fund money.
             56          (1) (a) The director shall make loans and loan guarantees from the fund for the Small
             57      Business Credit Initiative created under the federal government's Small Business Jobs Act of
             58      2010, to use federal money for programs that leverage private lending to help finance small

             59      businesses and manufacturers that are creditworthy but not receiving the loans needed to
             60      expand and create jobs.
             61          (b) In making loans and loan guarantees under this part, the director shall give due
             62      consideration to small businesses in underserved communities throughout the state that have
             63      been deeply impacted by recession and not seen a comparable resurgence in their economies.
             64          (2) The director shall distribute any federal money in the fund according to the
             65      procedures, conditions, and restrictions placed upon the use of the money by the federal
             66      government.
             67          (3) The director may, with the approval of the executive director of the department:
             68          (a) enact rules to establish procedures for the loan and loan guarantee process by
             69      following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
             70      Rulemaking Act; and
             71          (b) service or contract, under Title 63G, Chapter 6, Utah Procurement Code, for the
             72      servicing of loans made by the fund.
             73          Section 3. Section 9-4-1603 is enacted to read:
             74          9-4-1603. Annual accounting.
             75          (1) The director shall monitor the activities of recipients of the loans and loan
             76      guarantees issued under this part on a yearly basis to ensure compliance with the terms and
             77      conditions imposed on the recipient by the director under this part.
             78          (2) An entity receiving a loan or loan guarantee under this part shall provide the
             79      director with an annual accounting of how the money it received from the fund was spent.
             80          (3) The director shall submit an annual report to the Workforce Services and
             81      Community and Economic Development Interim Committee before December 1 of each year:
             82          (a) accounting for expenditures made from the fund; and
             83          (b) evaluating the effectiveness of the loan and loan guarantee program.
             84          Section 4. Section 63J-1-602.1 is amended to read:
             85           63J-1-602.1. List of nonlapsing accounts and funds -- General authority and Title
             86      1 through Title 30.
             87          (1) Appropriations made to the Legislature and its committees.
             88          (2) The Salinity Offset Fund created in Section 4-2-8.5 .
             89          (3) The Invasive Species Mitigation Account created in Section 4-2-8.7 .

             90          (4) The Rangeland Improvement Account created in Section 4-20-2 .
             91          (5) The State Small Business Credit Initiative Program Fund created in Section
             92      9-4-1601 .
             93          [(5)] (6) The Percent-for-Art Program created in Section 9-6-404 .
             94          [(6)] (7) The Centennial History Fund created in Section 9-8-604 .
             95          [(7)] (8) The Uintah Basin Revitalization Fund, as provided in Section 9-10-108 .
             96          [(8)] (9) The Navajo Revitalization Fund created in Section 9-11-104 .
             97          [(9)] (10) The LeRay McAllister Critical Land Conservation Program created in
             98      Section 11-38-301 .
             99          [(10)] (11) The Clean Fuels and Vehicle Technology Fund created in Section 19-1-403 .
             100          [(11)] (12) An appropriation made to the Division of Wildlife Resources for the
             101      appraisal and purchase of lands under the Pelican Management Act, as provided in Section
             102      23-21a-6 .
             103          [(12)] (13) Award money under the Crime Reduction Assistance Program, as provided
             104      under Section 24-1-19 .
             105          [(13)] (14) Funds collected from the emergency medical services grant program, as
             106      provided in Section 26-8a-207 .
             107          [(14)] (15) The Utah Health Care Workforce Financial Assistance Program created in
             108      Section 26-46-102 .

Legislative Review Note
    as of 2-16-11 9:29 AM

Office of Legislative Research and General Counsel

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