S.B. 225
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8 LONG TITLE
9 General Description:
10 This bill modifies the Business Development for Disadvantaged Rural Communities
11 Act by repealing the Business Development for Disadvantaged Rural Communities
12 Restricted Account.
13 Highlighted Provisions:
14 This bill:
15 . repeals the Business Development for Disadvantaged Rural Communities Restricted
16 Account in the General Fund; and
17 . makes technical changes.
18 Money Appropriated in this Bill:
19 None
20 Other Special Clauses:
21 None
22 Utah Code Sections Affected:
23 AMENDS:
24 63B-1b-202 , as last amended by Laws of Utah 2013, Chapter 227
25 63M-1-2002 , as renumbered and amended by Laws of Utah 2008, Chapter 382
26 63M-1-2004 , as renumbered and amended by Laws of Utah 2008, Chapter 382
27 REPEALS:
28 63M-1-2003 , as last amended by Laws of Utah 2011, Chapter 303
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30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 63B-1b-202 is amended to read:
32 63B-1b-202. Custodial officer -- Powers and duties.
33 (1) (a) There is created within the Division of Finance an officer responsible for the
34 care, custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust
35 documents, and other evidences of indebtedness:
36 (i) owned or administered by the state or any of its agencies; and
37 (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.
38 (b) Notwithstanding Subsection (1)(a), the officer described in Subsection (1)(a) is not
39 responsible for the care, custody, safekeeping, collection, and accounting of a bond, note,
40 contract, trust document, or other evidence of indebtedness relating to the:
41 (i) Agriculture Resource Development Fund, created in Section 4-18-106 ;
42 (ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
43 (iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;
44 (iv) Olene Walker Housing Loan Fund, created in Section 35A-8-502 ; and
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48 (2) (a) Each authorizing agency shall deliver to this officer for the officer's care,
49 custody, safekeeping, collection, and accounting all bonds, notes, contracts, trust documents,
50 and other evidences of indebtedness:
51 (i) owned or administered by the state or any of its agencies; and
52 (ii) except as provided in Subsection (1)(b), relating to revolving loan funds.
53 (b) This officer shall:
54 (i) establish systems, programs, and facilities for the care, custody, safekeeping,
55 collection, and accounting for the bonds, notes, contracts, trust documents, and other evidences
56 of indebtedness submitted to the officer under this Subsection (2); and
57 (ii) shall make available updated reports to each authorizing agency as to the status of
58 loans under their authority.
59 (3) The officer described in Section 63B-1b-201 shall deliver to the officer described in
60 Subsection (1)(a) for the care, custody, safekeeping, collection, and accounting by the officer
61 described in Subsection (1)(a) of all bonds, notes, contracts, trust documents, and other
62 evidences of indebtedness closed as provided in Subsection 63B-1b-201 (2)(b).
63 Section 2. Section 63M-1-2002 is amended to read:
64 63M-1-2002. Definitions.
65 As used in this part:
66 (1) "Board" means the Board of Business and Economic Development created by
67 Section 63M-1-301 .
68 (2) "Business incubator expense" means an expense relating to funding a program that
69 is:
70 (a) designed to provide business support services and resources to one or more
71 business entities within a project area during the business entities' early stages of development;
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73 (b) determined to be a business incubator by the board.
74 (3) "Business rehabilitation expense" means an expense relating to the renovation or
75 rehabilitation of an existing building within a project area as determined by the board.
76 (4) "Debt service" means the payment of debt service on a bond issued to pay a:
77 (a) business rehabilitation expense relating to a project; or
78 (b) public infrastructure expense relating to a project.
79 (5) "Eligible county" means a county of the third, fourth, fifth, or sixth class.
80 (6) "Eligible expense" means an expense:
81 (a) incurred by an eligible county;
82 (b) relating to a project; and
83 (c) that is:
84 (i) a business incubator expense;
85 (ii) debt service; or
86 (iii) a public infrastructure expense.
87 (7) "Project" means an economic development project:
88 (a) as determined by the board; and
89 (b) for which an eligible county applies to the board in accordance with this part for a
90 loan or grant to assist the eligible county in paying an eligible expense.
91 (8) "Project area" means the geographic area within which a project is implemented by
92 an eligible county.
93 (9) "Public infrastructure expense" means an expense relating to a publicly owned
94 improvement located within a project area if:
95 (a) the expense is:
96 (i) incurred for:
97 (A) construction;
98 (B) demolition;
99 (C) design;
100 (D) engineering;
101 (E) an environmental impact study;
102 (F) environmental remediation; or
103 (G) rehabilitation; or
104 (ii) similar to an expense described in Subsection (9)(a)(i) as determined by the board;
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106 (b) the publicly owned improvement is:
107 (i) not a building as determined by the board; and
108 (ii) necessary to support a project as determined by the board.
109 (10) "Publicly owned improvement" means an improvement to real property if:
110 (a) the real property is owned by:
111 (i) the United States;
112 (ii) the state; or
113 (iii) a political subdivision:
114 (A) as defined in Section 17B-1-102 ; and
115 (B) of the state; and
116 (b) the improvement relates to:
117 (i) a sewage system including a system for collection, transport, storage, treatment,
118 dispersal, effluent use, or discharge;
119 (ii) a drainage or flood control system, including a system for collection, transport,
120 diversion, storage, detention, retention, dispersal, use, or discharge;
121 (iii) a water system including a system for production, collection, storage, treatment,
122 transport, delivery, connection, or dispersal;
123 (iv) a highway, street, or road system for vehicular use for travel, ingress, or egress;
124 (v) a rail transportation system;
125 (vi) a system for pedestrian use for travel, ingress, or egress;
126 (vii) a public utility system including a system for electricity, gas, or
127 telecommunications; or
128 (viii) a system or device that is similar to a system or device described in Subsections
129 (10)(b)(i) through (vii) as determined by the board.
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132 Section 3. Section 63M-1-2004 is amended to read:
133 63M-1-2004. Board authority to award a grant or loan to an eligible county --
134 Interest on a loan -- Eligible county proposal process -- Process for awarding a grant or
135 loan.
136 (1) (a) Subject to the provisions of, and funds made available for, this section,
137 beginning on July 1, 2005, through June 30, 2015, the board may make an award to an eligible
138 county[
139 expense relating to a project[
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145 (b) The total amount of grants and loans that the board may award in accordance with
146 this section relating to one project is $75,000.
147 (c) If the board awards a loan to an eligible county in accordance with this section, the
148 loan shall be subject to interest as provided by the procedures and methods referred to in
149 Subsection (6).
150 (2) (a) Before the board may award an eligible county a grant or loan in accordance
151 with this section, the eligible county shall submit a written proposal to the board in accordance
152 with Subsection (2)(b).
153 (b) The proposal described in Subsection (2)(a) shall:
154 (i) describe the project area;
155 (ii) describe the characteristics of the project including a description of how the project
156 will be implemented;
157 (iii) provide an economic development plan for the project including a description of
158 any eligible expenses that will be incurred as part of implementing the project;
159 (iv) describe the characteristics of the community within which the project area is
160 located;
161 (v) establish that the community within which the project area is located is a
162 disadvantaged community on the basis of one or more of the following factors:
163 (A) median income per capita within the community;
164 (B) median property tax revenues generated within the community;
165 (C) median sales and use tax revenues generated within the community; or
166 (D) unemployment rates within the community;
167 (vi) demonstrate that there is a need for the project in the community within which the
168 project area is located;
169 (vii) describe the short-term and long-term benefits of the project to the community
170 within which the project area is located;
171 (viii) demonstrate that there is a need for assistance in paying eligible expenses relating
172 to the project;
173 (ix) indicate the amount of any revenues that will be pledged to match any funds the
174 board may award as a loan or grant under this section; and
175 (x) indicate whether there is support for the implementation of the project from:
176 (A) the community within which the project area is located; and
177 (B) any cities or towns within which the project area is located.
178 (3) At the request of the board, representatives from an eligible county shall appear
179 before the board to:
180 (a) present a proposal submitted to the board in accordance with Subsection (2)(b); and
181 (b) respond to any questions or issues raised by the board relating to eligibility to
182 receive a grant or loan under this section.
183 (4) The board shall:
184 (a) consider a proposal submitted to the board in accordance with Subsection (2);
185 (b) make written findings as to whether the proposal described in Subsection (4)(a)
186 meets the requirements of Subsection (2)(b);
187 (c) make written findings as to whether to award the eligible county that submitted the
188 proposal described in Subsection (4)(a) one or more grants or loans:
189 (i) on the basis of the factors established in Subsection (5);
190 (ii) in consultation with the director; and
191 (iii) in accordance with the procedures established for prioritizing which projects may
192 be awarded a grant or loan by the board under this section;
193 (d) if the board determines to award an eligible county a grant or loan in accordance
194 with this section, make written findings in consultation with the director specifying the:
195 (i) amount of the grant or loan;
196 (ii) time period for distributing the grant or loan;
197 (iii) terms and conditions that the eligible county shall meet to receive the grant or
198 loan;
199 (iv) structure of the grant or loan; and
200 (v) eligible expenses for which the eligible county may expend the grant or loan;
201 (e) if the board determines to award an eligible county a loan in accordance with this
202 section, make written findings stating:
203 (i) the method of calculating interest applicable to the loan; and
204 (ii) procedures for:
205 (A) applying interest to the loan; and
206 (B) paying interest on the loan; and
207 (f) provide the written findings required by Subsections (4)(b) through (e) to the
208 eligible county.
209 (5) For purposes of Subsection (4)(c), the board shall consider the following factors in
210 determining whether to award an eligible county one or more grants or loans authorized by this
211 part:
212 (a) whether the project is likely to result in economic development in the community
213 within which the project area is located;
214 (b) whether the community within which the project area is located is a disadvantaged
215 community on the basis of one or more of the following factors:
216 (i) median income per capita within the community;
217 (ii) median property tax revenues generated within the community;
218 (iii) median sales and use tax revenues generated within the community; or
219 (iv) unemployment rates within the community;
220 (c) whether there is a need for the project in the community within which the project
221 area is located;
222 (d) whether the project is likely to produce short-term and long-term benefits to the
223 community within which the project area is located;
224 (e) whether the project would be successfully implemented without the board awarding
225 a grant or a loan to the eligible county;
226 (f) whether any revenues will be pledged to match any funds the board may award as a
227 grant or loan under this section;
228 (g) whether there is support for the implementation of the project from:
229 (i) the community within which the project area is located; and
230 (ii) any cities or towns within which the project area is located; and
231 (h) any other factor as determined by the board.
232 (6) The office shall establish procedures:
233 (a) for prioritizing which projects may be awarded a grant or loan by the board under
234 this section; and
235 (b) for loans awarded in accordance with this section:
236 (i) the methods of calculating interest applicable to the loans; and
237 (ii) procedures for:
238 (A) applying interest to the loans; and
239 (B) paying interest on the loans.
240 Section 4. Repealer.
241 This bill repeals:
242 Section 63M-1-2003 , Creation of Business Development for Disadvantaged Rural
243 Communities Restricted Account -- Interest -- Costs of administering the restricted
244 account -- Deposit of certain money and interest into the General Fund.
Legislative Review Note
as of 2-20-14 8:20 AM