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H.B. 318 Enrolled





Chief Sponsor: Ronda Rudd Menlove

Senate Sponsor: Ralph Okerlund

             7      LONG TITLE
             8      General Description:
             9          This bill modifies the Governor's Office of Economic Development chapter by
             10      amending Industrial Assistance Account provisions.
             11      Highlighted Provisions:
             12          This bill:
             13          .    moves the funding and administration of the Business Expansion and Retention
             14      Initiative from the Rural Fast Track Program to the Industrial Assistance Account
             15      administered by the director of the Governor's Office of Economic Development;
             16          .    modifies the allocation of money in the Industrial Assistance Account;
             17          .    provides that up to 4% of the Industrial Assistance Account may be used to promote
             18      business and economic development in rural Utah with the Business Expansion and
             19      Retention Initiative; and
             20          .    makes technical changes.
             21      Money Appropriated in this Bill:
             22          None
             23      Other Special Clauses:
             24          This bill takes effect on July 1, 2012.
             25      Utah Code Sections Affected:
             26      AMENDS:
             27          63M-1-903, as last amended by Laws of Utah 2010, Chapters 245 and 278
             28          63M-1-904, as last amended by Laws of Utah 2011, Chapter 191

             30      Be it enacted by the Legislature of the state of Utah:
             31          Section 1. Section 63M-1-903 is amended to read:
             32           63M-1-903. Industrial Assistance Account created -- Uses -- Administrator duties
             33      -- Costs.
             34          (1) There is created a restricted account within the General Fund known as the
             35      "Industrial Assistance Account" of which:
             36          (a) up to 50% [shall] may be used in economically disadvantaged rural areas; [and]
             37          (b) up to 25% may be used to take timely advantage of economic opportunities as they
             38      arise[.]; and
             39          (c) up to 4% may be used to promote business and economic development in rural
             40      areas of the state with the Business Expansion and Retention Initiative.
             41          (2) The administrator shall administer:
             42          (a) the restricted account [shall be administered by the administrator] created under
             43      Subsection (1), under the policy direction of the board[.]; and
             44          (b) the Business Expansion and Retention Initiative for the rural areas of the state.
             45          (3) The administrator may hire appropriate support staff to perform the duties required
             46      under this section.
             47          (4) The cost of administering the restricted account shall be paid from money in the
             48      restricted account.
             49          (5) Interest accrued from investment of money in the restricted account shall remain in
             50      the restricted account.
             51          Section 2. Section 63M-1-904 is amended to read:
             52           63M-1-904. Rural Fast Track Program -- Creation -- Funding -- Qualifications
             53      for program participation -- Awards -- Reports.
             54          (1) (a) There is created the Rural Fast Track Program[, hereafter referred to in this
             55      section as "the program."].
             56          (b) The program is a funded component of the economically disadvantaged rural areas
             57      designation in Subsection 63M-1-903 (1)(a).

             58          (2) [(a)] The purpose of the program is to[: (i)] provide an efficient way for small
             59      companies in rural [Utah] areas of the state to receive incentives for creating high paying jobs
             60      in [the rural] those areas [of the state; and].
             61          [(ii) use the Business Expansion and Retention Initiative to further promote business
             62      and economic development in rural Utah.]
             63          [(b) The Office of Rural Development shall administer the Business Expansion and
             64      Retention Initiative for the rural areas of the state.]
             65          (3) (a) Twenty percent of the [money] unencumbered amount in the Industrial
             66      Assistance Account created in Subsection 63M-1-903 (1) at the beginning of each fiscal year
             67      shall be used to fund the program.
             68          (b) The 20% referred to in Subsection (3)(a) is not in addition to but is a part of the up
             69      to 50% designation for economically disadvantaged rural areas referred to in Subsection
             70      63M-1-903 (1)(a).
             71          (c) If any of the 20% allocation referred to in Subsection (3)(a) has not been used in the
             72      program by the end of the third quarter of each fiscal year, that money may be used for any
             73      other loan, grant, or assistance program offered through the Industrial Assistance Account
             74      during the fiscal year.
             75          (4) (a) To qualify for participation in the program a company shall:
             76          (i) complete and file with the office an application for participation in the program,
             77      signed by an officer of the company;
             78          (ii) be located and conduct its business operations in a county in the state that has:
             79          (A) a population of less than 30,000; and
             80          (B) an average household income of less than $60,000 as reflected in the most recently
             81      available data collected and reported by the United States Census Bureau;
             82          (iii) have been in business in the state for at least two years; and
             83          (iv) have at least two employees.
             84          (b) (i) [Office staff] The office shall verify an applicant's qualifications under
             85      Subsection (4)(a).

             86          (ii) The application must be approved by the administrator in order for a company to
             87      receive an incentive or other assistance under this section.
             88          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
             89      administrator may make rules governing:
             90          (i) the content of the application form referred to in Subsection (4)(a)(i);
             91          (ii) who qualifies as an employee under Subsection (4)(a)(iv); and
             92          (iii) the verification procedure referred to in Subsection (4)(b).
             93          (5) (a) The administrator shall make incentive cash awards to small companies under
             94      this section based on the following criteria:
             95          (i) $1,000 for each new incremental job that pays over 110% of the county's average
             96      annual wage;
             97          (ii) $1,250 for each incremental job that pays over 115% of the county's average annual
             98      wage; and
             99          (iii) $1,500 for each incremental job that pays over 125% of the county's average
             100      annual wage.
             101          (b) The administrator shall make a cash award under Subsection (5)(a) when a new
             102      incremental job has been in place for at least 12 months.
             103          (c) The creation of a new incremental job by a company is based on the number of
             104      employees at the company during the previous 24 months.
             105          (d) (i) A small company may also apply for grants, loans, or other financial assistance
             106      under the program to help develop its business in rural Utah and may receive up to $50,000
             107      under the program if approved by the administrator.
             108          (ii) The board must approve a distribution that exceeds the $50,000 cap under
             109      Subsection (5)(d)(i).
             110          (6) The administrator shall make a quarterly report to the board of the awards made by
             111      the administrator under this section and an annual report to the Legislative Workforce Services
             112      and Community and Economic Development Interim Committee as to the awards and their
             113      impact on economic development in the state's rural areas.

             114          Section 3. Effective date.
             115          This bill takes effect on July 1, 2012.

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