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7 LONG TITLE
8 General Description:
9 This bill modifies the Governor's Office of Economic Development chapter by
10 amending Industrial Assistance Fund 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:
23 Other Special Clauses:
24 This bill takes effect on July 1, 2012.
25 Utah Code Sections Affected:
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% [
37 (b) up to 25% may be used to take timely advantage of economic opportunities as they
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 [
43 Subsection (1), under the policy direction of the board[
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[
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) [
59 companies in rural [
60 in [
65 (3) (a) Twenty percent of the [
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) [
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.
Legislative Review Note
as of 1-31-12 1:48 PM