This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 2, 2015 at 12:23 PM by bhansen.
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This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 2, 2015 at 12:29 PM by bhansen.
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Mon, Mar 2, 2015 at 12:41 PM by bhansen.
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This document includes House Committee Amendments incorporated into the bill on Thu, Mar 5, 2015 at 11:43 AM by jeyring.
1     
AMENDMENTS TO ECONOMIC DEVELOPMENT

2     
2015 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Brian E. Shiozawa

5     
House Sponsor: Rebecca P. Edwards

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Governor's Office of Economic
10     Development (GOED).
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies the definition of "high paying jobs";
14          ▸     requires that the executive director of GOED be appointed by the governor, with the
15     consent of the Senate;
16          ▸     modifies provisions related to GOED's administration of tax credit incentives,
17     including the provision of tax-increment financing;
18          ▸     modifies GOED's reporting of the credit incentives; and
19          ▸     makes technical changes.
20     Money Appropriated in this Bill:
21          None
22     Other Special Clauses:
23          This bill provides a special effective date.
23a      Ĥ→ This bill provides a coordination clause. ←Ĥ
24     Utah Code Sections Affected:
25     AMENDS:
26          63M-1-202, as renumbered and amended by Laws of Utah 2008, Chapter 382
27          63M-1-2402, as enacted by Laws of Utah 2008, Chapter 372
28          63M-1-2403, as last amended by Laws of Utah 2010, Chapters 104 and 164
29          63M-1-2404, as last amended by Laws of Utah 2013, Chapter 392
30          63M-1-2405, as last amended by Laws of Utah 2013, Chapter 392
31          63M-1-2406, as last amended by Laws of Utah 2014, Chapter 371
32          63M-1-2407, as last amended by Laws of Utah 2013, Chapter 310
33     REPEALS:
34          63M-1-2408, as last amended by Laws of Utah 2010, Chapters 164, 323, and 391
34a      Ĥ→ Utah Code Sections Affected by Coordination Clause:
34b          63M-1-2403, as last amended by Laws of Utah 2010, Chapters 104 and 164 ←Ĥ
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 63M-1-202 is amended to read:
38          63M-1-202. Director of office -- Appointment -- Removal -- Compensation.
39          (1) The office shall be administered, [directed, controlled,] organized, and managed by
40     [a] an executive director appointed by the governor, with the consent of the Senate.
41          (2) The executive director serves at the pleasure of the governor.
42          (3) The salary of the executive director shall be established by the governor within the
43     salary range fixed by the Legislature in Title 67, Chapter 22, State Officer Compensation.
44          Section 2. Section 63M-1-2402 is amended to read:
45          63M-1-2402. Findings.
46          [(1) The Legislature finds that:]
47          [(a) to foster and develop industry in Utah is a public purpose necessary to assure
48     adequate employment for, and the welfare of, Utah's citizens and the growth of the state's
49     economy;]
50          [(b) Utah loses prospective high paying jobs, new economic growth, and corresponding
51     incremental new state and local revenues to competing states because of a wide variety of
52     competing economic incentives offered by those states; and]
53          [(c) economic development initiatives and interests of state and local economic
54     development officials should be aligned and united in the creation of higher paying jobs that
55     will lift the wage levels of the communities in which those jobs will be created.]
56          [(2)] This part is enacted to:
57          (1) foster and develop industry in the state, to provide additional employment
58     opportunities for Utah's citizens, and to improve the state's economy;
59          [(a)] (2) address the loss of prospective high paying jobs, the loss of new economic
60     growth, and the corresponding loss of incremental new state and local revenues [by providing]
61     to competing states caused by economic incentives offered by those states;
62          (3) provide tax credits to attract new commercial projects and new jobs in economic
63     development zones in the state; and
64          [(b)] (4) provide a cooperative and unified working relationship between state and
65     local economic development efforts.
66          Section 3. Section 63M-1-2403 is amended to read:
67          63M-1-2403. Definitions.
68          As used in this part:
69          (1) "Business entity" means a person that enters into an agreement with the office to
70     initiate a new commercial project in Utah that will qualify the person to receive a tax credit
71     under Section 59-7-614.2 or 59-10-1107.
72          (2) "Community development and renewal agency" [is as] has the same meaning as
73     that term is defined in Section 17C-1-102.
74          (3) "Development zone" means an economic development zone created under Section
75     63M-1-2404.
76          (4) "High paying jobs" means:
77          (a) with respect to a business entity, the aggregate average annual gross wages, not
78     including healthcare or other paid or unpaid benefits, of newly created full-time employment
79     positions in a business entity that [compare favorably against] are at least 110% of the average
80     wage of a community in which the employment positions will exist;
81          (b) with respect to a county, the aggregate average annual gross wages, not including
82     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
83     a new commercial project within the county that [compare favorably against] are at least 110%
84     of the average wage of the county in which the employment positions will exist; or
85          (c) with respect to a city or town, the aggregate average annual gross wages, not
86     including healthcare or other paid or unpaid benefits of newly created full-time employment
87     positions in a new commercial project within the city or town that [compare favorably against]
88     are at least 110% of the average wages of the city or town in which the employment positions
89     will exist.
90          (5) "Local government entity" means a county, city, or town that enters into an
91     agreement with the office to have a new commercial project that:
92          (a) is initiated within the county's, city's, or town's boundaries; and
93          (b) qualifies the county, city, or town to receive a tax credit under Section 59-7-614.2.
94          (6) (a) "New commercial project" means an economic development opportunity that
95     involves new or expanded industrial, manufacturing, distribution, or business services in Utah.
96          (b) "New commercial project" does not include retail business.
97          (7) (a) "New incremental jobs" means Ĥ→ [full-time employment positions that are filled by
98     an employee working at least 30 hours per week for a period of at least six consecutive months
99     and that are:] full-time employment positions that are filled by employees who works at least 30
99a     hours per week and that are: ←Ĥ
100          [(a) not shifted from one jurisdiction in the state to another jurisdiction in the state;
101     and]
102          [(b)] (i) with respect to a business entity, created in addition to the baseline count of
103     employment positions that existed within the business entity before the new commercial
104     project;
105          (ii) with respect to a county, created as a result of a new commercial project with
106     respect to which the county or a community development and renewal agency seeks to claim a
107     tax credit under Section 59-7-614.2; or
108          (iii) with respect to a city or town, created as a result of a new commercial project with
109     respect to which the city, town, or a community development and renewal agency seeks to
110     claim a tax credit under Section 59-7-614.2.
110a      Ĥ→ (b) "New incremental jobs" may include full-time equivalent positions that are filled by
110b     more than one employee, if each employee who works less than 30 hours per week is provided
110c     benefits comparable to a full-time employee.
111          [(b)] (c) ←Ĥ "New incremental jobs" does not include jobs that are shifted from one
111a     jurisdiction
112     in the state to another jurisdiction in the state.
113          (8) "New state revenues" means:
114          (a) with respect to a business entity:
115          (i) incremental new state sales and use tax revenues that a business entity pays under
116     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
117     development zone;
118          (ii) incremental new state tax revenues[, if any,] that a business entity pays as a result
119     of a new commercial project in a development zone under:
120          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
121          (B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
122     Information;
123          (C) Title 59, Chapter 10, Part 2, Trusts and Estates;
124          (D) Title 59, Chapter 10, Part 4, Withholding of Tax; Ĥ→ [[] or []] [and] ←Ĥ
125          (E) a combination of Subsections (8)(a)(ii)(A) through (D);
126          (iii) incremental new state tax revenues paid as individual income taxes under Title 59,
127     Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
128     employees of a new or expanded industrial, manufacturing, distribution, or business service
129     within a new commercial project as evidenced by payroll records that indicate the amount of
130     employee income taxes withheld and transmitted to the State Tax Commission by the new or
131     expanded industrial, manufacturing, distribution, or business service within the new
132     commercial project; or
133          (iv) a combination of Subsections (8)(a)(i) through (iii); or
134          (b) with respect to a local government entity:
135          (i) incremental new state sales and use tax revenues that are collected under Title 59,
136     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
137     zone;
138          (ii) incremental new state tax revenues[, if any,] that are collected as a result of a new
139     commercial project in a development zone under:
140          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
141          (B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
142     Information;
143          (C) Title 59, Chapter 10, Part 2, Trusts and Estates;
144          (D) Title 59, Chapter 10, Part 4, Withholding of Tax; Ĥ→ [[] or []] [ and] ←Ĥ
145          (E) a combination of Subsections (8)(b)(ii)(A) through (D);
146          (iii) incremental new state tax revenues paid as individual income taxes under Title 59,
147     Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
148     employees of a new or expanded industrial, manufacturing, distribution, or business service
149     within a new commercial project as evidenced by payroll records that indicate the amount of
150     employee income taxes withheld and transmitted to the State Tax Commission by the new or
151     expanded industrial, manufacturing, distribution, or business service within the new
152     commercial project; or
153          (iv) a combination of Subsections (8)(b)(i) through (iii).
154          [(9) "Office" means the Governor's Office of Economic Development.]
155          [(10)] (9) "Significant capital investment" means an amount of at least $10,000,000 to
156     purchase [a] capital [asset] or [a] fixed [asset] assets, which may include real property, personal
157     property, and other fixtures related to a new commercial project:
158          [(a) with the primary purpose of the investment to increase a business entity's rate at
159     which it produces goods based on output per unit of labor;]
160          [(b)] (a) that represents an expansion of existing [Utah] operations[; and] in the state;
161     or
162          [(c)] (b) that maintains or increases the business entity's existing [Utah] work force in
163     the state.
164          [(11)] (10) "Tax credit" means an economic development tax credit created by Section
165     59-7-614.2 or 59-10-1107.
166          [(12)] (11) "Tax credit amount" means the amount the office lists as a tax credit on a
167     tax credit certificate for a taxable year.
168          [(13)] (12) "Tax credit certificate" means a certificate issued by the office that:
169          (a) lists the name of the business entity, local government entity, or community
170     development and renewal agency to which the office authorizes a tax credit;
171          (b) lists the business entity's, local government entity's, or community development and
172     renewal agency's taxpayer identification number;
173          (c) lists the amount of tax credit that the office authorizes the business entity, local
174     government entity, or community development and renewal agency for the taxable year; and
175          (d) may include other information as determined by the office.
176          Section 4. Section 63M-1-2404 is amended to read:
177          63M-1-2404. Creation of economic development zones -- Tax credits --
178     Assignment of tax credit.
179          (1) The office, with advice from the board, may create an economic development zone
180     in the state [that satisfies all of] if the following requirements are satisfied:
181          (a) the area is zoned commercial, industrial, manufacturing, business park, research
182     park, or other appropriate business related use in a community-approved master plan;
183          (b) the request to create a development zone has [been forwarded to the office after]
184     first [being] been approved by an appropriate local government entity; and
185          (c) local incentives have been [committed] or will be committed to be provided within
186     the area.
187          (2) (a) [By following the procedures and requirements of] In accordance with Title
188     63G, Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules establishing
189     the [conditions that] requirements for a business entity or local government entity [shall meet]
190     to qualify for a tax credit for a new commercial project in a development zone under this part.
191          (b) The office shall ensure that the [conditions] requirements described in Subsection
192     (2)(a) include the following [requirements]:
193          (i) the new commercial project [must be] is within the development zone;
194          (ii) the new commercial project includes direct investment within the geographic
195     boundaries of the development zone;
196          (iii) the new commercial project brings new incremental jobs to Utah;
197          [(iv) the new commercial project includes significant capital investment, the creation of
198     high paying jobs, or significant purchases from Utah vendors and providers, or any
199     combination of these three economic factors;]
200          (iv) the new commercial project includes the creation of high paying jobs in the state,
201     significant capital investment in the state, or significant purchases from vendors and providers
202     in the state, or a combination of these three economic factors;
203          (v) the new commercial project generates new state revenues; and
204          (vi) [(A)] a business entity [or], a local government entity [qualifying for the tax
205     credit], or a community development and renewal agency to which a local government entity
206     assigns a tax credit under this section meets the requirements of Section 63M-1-2405[; or].
207          [(B) a community development and renewal agency to which a local government entity
208     assigns a tax credit under this section meets the requirements of Section 63M-1-2405.]
209          (3) (a) [Subject to the other provisions of this Subsection (3), the office, with advice
210     from] The office, after consultation with the board, may enter into [an] a written agreement
211     with a business entity or local government entity authorizing a tax credit to the business entity
212     or local government entity if the business entity or local government entity meets the [standards
213     established under Subsection (2)] requirements described in this section.
214           (b) (i) With respect to [one] a new commercial project, the office may authorize a tax
215     credit to a business entity or a local government entity, but not both.
216          (ii) In determining whether to authorize a tax credit with respect to [one] a new
217     commercial project to a business entity or a local government entity, the office shall authorize
218     the tax credit in a manner that the office determines will result in providing the most effective
219     incentive for the new commercial project.
220          (c) (i) [The] Except as provided in Subsection (3)(c)(ii), the office may not authorize or
221     commit to authorize a tax credit [if that tax credit] that exceeds:
222          (A) 50% of the new state revenues from the new commercial project in any given year;
223     or
224          (B) 30% of the new state revenues from the new commercial project over the lesser of
225     the life of a new commercial project or 20 years[, whichever is less].
226          Ŝ→ [(ii)] ←Ŝ [Notwithstanding Subsection (3)(c)(i), the] Ŝ→ [The office may authorize or
226a     commit to
227     authorize a tax credit not exceeding 60% of new state revenues from the new commercial
228     project in any given year, if the eligible business entity] ←Ŝ [creates a significant number of high
229     paying jobs and] Ŝ→ [makes capital expenditures in the state of at least $1,000,000,000.]
229a      (ii) If the eligible business entity makes capital expenditures in the state of $1,500,000,000 or
229b     more associated with a new commercial project, the office may:
229c     (A) authorize or commit to authorize a tax credit not exceeding 60% of new state revenues
229d     over the lesser of the life of the project or 20 years, if the other requirements of this part are
229e     met;
229f     (B) establish the year that state revenues and incremental jobs baseline data are measured for
229g     purposes of an incentive under this Subsection (3)(c)(ii); and
229h     (C) offer an incentive under this Subsection (3)(c)(ii) or modify an existing incentive previously
229i     granted under Subsection (3)(c)(i) that is based on the baseline measurements described in
229j     Subsection (3)(c)(ii)(B), except that the incentive may not authorize or commit to authorize a
229k     tax credit of more than 60% of new state revenues in any one year. ←Ŝ
230          (d) (i) A local government entity may by resolution assign a tax credit [that] authorized
231     by the office [authorizes to the local government entity] to a community development and
232     renewal agency.
233          (ii) The local government entity shall provide a copy of the resolution described in
234     Subsection (3)(d)(i) to the office.
235          (iii) If a local government entity assigns a tax credit to a community development and
236     renewal agency[: (A)], the written agreement described in [this section] Subsection (3)(a) shall:
237          [(I)] (A) be [among] between the office, the local government entity, and the
238     community development and renewal agency; [and]
239          [(II)] (B) establish[: (Aa)] the obligations of the local government entity and the
240     community development and renewal agency; and
241          [(Bb)] (C) establish the extent to which any of the local government entity's obligations
242     are transferred to the community development and renewal agency[;].
243          (iv) If a local government entity assigns a tax credit to a community development and
244     renewal agency:
245          [(B)] (A) the community development and renewal agency shall retain records as
246     described in Subsection (4)(d); and
247          [(C)] (B) a tax credit certificate issued in accordance with Section 63M-1-2406 shall
248     list the community development and renewal agency as the [name of the] named applicant.
249          (4) [Subject to Subsection (3), the] The office shall ensure that the written agreement
250     described in Subsection (3):
251          (a) [details] specifies the requirements that the business entity or local government
252     entity shall meet to qualify for a tax credit under this part;
253          (b) specifies the maximum amount of tax credit that the business entity or local
254     government entity may be authorized for a taxable year and over the life of the new commercial
255     project;
256          (c) establishes the length of time the business entity or local government entity may
257     claim a tax credit;
258          (d) requires the business entity or local government entity to retain records supporting a
259     claim for a tax credit for at least four years after the business entity or local government entity
260     claims a tax credit under this part; and
261          (e) requires the business entity or local government entity to submit to audits for
262     verification of the tax credit claimed.
263          Section 5. Section 63M-1-2405 is amended to read:
264          63M-1-2405. Qualifications for tax credit -- Procedure.
265          (1) The office shall certify a business entity's or local government entity's eligibility for
266     a tax credit as provided in this [section] part.
267          (2) A business entity or local government entity seeking to receive a tax credit as
268     provided in this part shall provide the office with:
269          (a) an application for a tax credit certificate, including a certification, by an officer of
270     the business entity, of any signature on the application;
271          (b) (i) for a business entity, documentation of the new state revenues from the business
272     entity's new commercial project that were paid during the preceding calendar year; or
273          (ii) for a local government entity, documentation of the new state revenues from the
274     new commercial project within the area of the local government entity that were paid during
275     the preceding calendar year;
276          (c) known or expected detriments to the state or existing businesses in the state;
277          (d) if a local government entity seeks to assign the tax credit to a community
278     development and renewal agency [in accordance with] as described in Section 63M-1-2404, a
279     statement providing the name and taxpayer identification number of the community
280     development and renewal agency to which the local government entity seeks to assign the tax
281     credit;
282          (e) (i) with respect to a business entity, a document that expressly directs and
283     authorizes the State Tax Commission to disclose to the office the business entity's returns and
284     other information that would otherwise be subject to confidentiality under Section 59-1-403 or
285     Section 6103, Internal Revenue Code[, to the office];
286          (ii) with respect to a local government entity that seeks to claim the tax credit:
287          (A) a document that expressly directs and authorizes the State Tax Commission to
288     disclose to the office the local government entity's returns and other information that would
289     otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal
290     Revenue Code[, to the office]; and
291          (B) if the new state revenues collected as a result of a new commercial project are
292     attributable in whole or in part to a new or expanded industrial, manufacturing, distribution, or
293     business service within a new commercial project within the area of the local government
294     entity, a document signed by an authorized representative of the new or expanded industrial,
295     manufacturing, distribution, or business service that:
296          (I) expressly directs and authorizes the State Tax Commission to disclose to the office
297     the returns of [that] the new or expanded industrial, manufacturing, distribution, or business
298     service and other information that would otherwise be subject to confidentiality under Section
299     59-1-403 or Section 6103, Internal Revenue Code[, to the office]; and
300          (II) lists the taxpayer identification number of [that] the new or expanded industrial,
301     manufacturing, distribution, or business service; or
302          (iii) with respect to a local government entity that seeks to assign the tax credit to a
303     community development and renewal agency:
304          (A) a document signed by the members of the governing body of the community
305     development and renewal agency that expressly directs and authorizes the State Tax
306     Commission to disclose to the office the returns of the community development and renewal
307     agency and other information that would otherwise be subject to confidentiality under Section
308     59-1-403 or Section 6103, Internal Revenue Code[, to the office]; and
309          (B) if the new state revenues collected as a result of a new commercial project are
310     attributable in whole or in part to a new or expanded industrial, manufacturing, distribution, or
311     business service within a new commercial project within the community development and
312     renewal agency, a document signed by an authorized representative of the new or expanded
313     industrial, manufacturing, distribution, or business service that:
314          (I) expressly directs and authorizes the State Tax Commission to disclose to the office
315     the returns of [that] the new or expanded industrial, manufacturing, distribution, or business
316     service and other information that would otherwise be subject to confidentiality under Section
317     59-1-403 or Section 6103, Internal Revenue Code[, to the office]; and
318          (II) lists the taxpayer identification number of [that] the new or expanded industrial,
319     manufacturing, distribution, or business service; and
320          (f) for a business entity only, documentation that the business entity has satisfied the
321     performance benchmarks outlined in the written agreement described in Subsection
322     63M-1-2404(3)(a), including:
323          (i) the creation of new incremental jobs that are also high paying jobs;
324          [(i)] (ii) significant capital investment;
325          [(ii) the creation of high paying jobs;]
326          (iii) significant purchases from Utah vendors and providers; or
327          (iv) [any] a combination of [Subsections (2)(f)(i), (ii), and (iii)] these benchmarks.
328          (3) (a) The office shall submit the documents described in Subsection (2)(e) to the
329     State Tax Commission.
330          (b) Upon receipt of a document described in Subsection (2)(e), the State Tax
331     Commission shall provide the office with the returns and other information requested by the
332     office that the State Tax Commission is directed or authorized to provide to the office in
333     accordance with Subsection (2)(e).
334          (4) If, after review of the returns and other information provided by the State Tax
335     Commission, or after review of the ongoing performance of the business entity or local
336     government entity, the office determines that the returns and other information are inadequate
337     to provide a reasonable justification for authorizing or continuing a tax credit, the office shall:
338          (a) (i) deny the tax credit; or
339          (ii) terminate the agreement described in Subsection 63M-1-2404(3)(a) for failure to
340     meet the performance standards established in the agreement; or
341          (b) inform the business entity or local government entity that the returns or other
342     information were inadequate and ask the business entity or local government entity to submit
343     new documentation.
344          (5) If after review of the returns and other information provided by the State Tax
345     Commission, the office determines that the returns and other information provided by the
346     business entity or local government entity provide reasonable justification for authorizing a tax
347     credit, the office shall, based upon the returns and other information:
348          (a) determine the amount of the tax credit to be granted to the business entity, local
349     government entity, or if the local government entity assigns the tax credit [in accordance with]
350     as described in Section 63M-1-2404, to the community development and renewal agency to
351     which the local government entity assigns the tax credit;
352          (b) issue a tax credit certificate to the business entity, local government entity, or if the
353     local government entity assigns the tax credit [in accordance with] as described in Section
354     63M-1-2404, to the community development and renewal agency to which the local
355     government entity assigns the tax credit; and
356          (c) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
357          (6) A business entity, local government entity, or community development and renewal
358     agency may not claim a tax credit unless the business entity, local government entity, or
359     community development and renewal agency has a tax credit certificate issued by the office.
360          (7) (a) A business entity, local government entity, or community development and
361     renewal agency may claim a tax credit in the amount listed on the tax credit certificate on its
362     tax return.
363          (b) A business entity, local government entity, or community development and renewal
364     agency that claims a tax credit under this section shall retain the tax credit certificate in
365     accordance with Section 59-7-614.2 or 59-10-1107.
366          Section 6. Section 63M-1-2406 is amended to read:
367          63M-1-2406. Reports -- Posting monthly and annual reports -- Audit and study of
368     tax credits.
369          (1) The office shall include the following information in the annual written report
370     described in Section 63M-1-206:
371          (a) the office's success in attracting new commercial projects to development zones
372     under this part and the corresponding increase in new incremental jobs;
373          (b) how many new incremental jobs and high paying jobs are employees of a company
374     that received tax credits under this part, including the number of employees who work for a
375     third-party rather than directly for a company, receiving the tax credits under this part;
376          [(b)] (c) the estimated amount of tax credit commitments made by the office and the
377     period of time over which tax credits will be paid;
378          [(c)] (d) the economic impact on the state [related to generating] from new state
379     revenues and [providing] the provision of tax credits under this part;
380          [(d)] (e) the estimated costs and economic benefits of the tax credit commitments [that]
381     made by the office [made];
382          [(e)] (f) the actual costs and economic benefits of the tax credit commitments [that]
383     made by the office [made]; and
384          [(f)] (g) tax credit commitments [that] made by the office [made], with the associated
385     calculation.
386          (2) [The] Each month, the office shall [monthly] post on its website and on a state
387     website:
388          (a) the new tax credit commitments [that] made by the office [made] during the
389     previous month; and
390          (b) the estimated costs and economic benefits of those tax credit commitments.
391          (3) (a) On or before November 1, 2014, and every [five] three years after November 1,
392     2014, the office shall:
393          (i) conduct an audit of the tax credits allowed under Section 63M-1-2405;
394          (ii) study the tax credits allowed under Section 63M-1-2405; and
395          (iii) make recommendations concerning whether the tax credits should be continued,
396     modified, or repealed.
397          (b) [An] The audit [under Subsection (3)(a)(i)] shall include an evaluation of:
398          (i) the cost of the tax credits;
399          (ii) the purposes and effectiveness of the tax credits; [and]
400          (iii) the extent to which the state benefits from the tax credits[.]; and
401          (iv) the state's return on investment under this part measured by new state revenues,
402     compared with the costs of tax credits provided and GOED's expenses in administering this
403     part.
404          Section 7. Section 63M-1-2407 is amended to read:
405          63M-1-2407. Reports of new state revenues, partial rebates, and tax credits.
406          (1) Before [December] October 1 of each year, the office shall submit a report to the
407     Governor's Office of Management and Budget, the Office of Legislative Fiscal Analyst, and the
408     Division of Finance identifying:
409          (a) (i) the total estimated amount of new state revenues created from new commercial
410     projects in [the] development zones; [and]
411          (ii) the estimated amount of new state revenues from new commercial projects in [the]
412     development zones that will be generated from:
413          (A) sales tax;
414          (B) income tax; and
415          (C) corporate franchise and income tax;
416          (b) (i) the total estimated amount of partial rebates as defined in Section 63M-1-2408
417     that the office projects will be required to be paid in the next fiscal year; and
418          (ii) the estimated amount of partial rebates as defined in Section 63M-1-2408 that are
419     attributable to:
420          (A) sales tax;
421          (B) income tax; and
422          (C) corporate franchise and income tax; and
423          (iii) the minimum number of new incremental jobs and high paying jobs that will be
424     created before any tax credit is awarded; and
425          (c) the total estimated amount of tax credits that the office projects that business
426     entities, local government entities, or community development and renewal agencies will
427     qualify to claim under this part.
428          (2) By the first business day of each month, the office shall submit a report to the
429     Governor's Office of Management and Budget, the Office of Legislative Fiscal Analyst, and the
430     Division of Finance identifying:
431          (a) each new agreement entered into by the office since the last report;
432          (b) the estimated amount of new state revenues that will be generated under each
433     agreement; [and]
434          (c) the estimated maximum amount of tax credits that a business entity, local
435     government entity, or community development and renewal agency could qualify for under
436     each agreement[.]; and
437          (d) the minimum number of new incremental jobs and high paying jobs that will be
438     created before any tax credit is awarded.
439          (3) At the reasonable request of the Governor's Office of Management and Budget, the
440     Office of Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
441     additional information about the tax credit, new incremental jobs and high paying jobs, costs,
442     and economic benefits related to this part, if the information is part of a public record as
443     defined in Section 63G-2-103.
444          Section 8. Repealer.
445          This bill repeals:
446          Section 63M-1-2408, Transition clause -- Renegotiation of agreements -- Payment
447     of partial rebates.
448          Section 9. Effective date.
449          This bill takes effect on September 1, 2015.
449a      Ĥ→ Section 10. Coordinating S.B. 179 with S.B. 18 -- Substantive and technical
449b     amendments.
449c     If this S.B. 179 and S.B. 18, Governor's Office of Economic Development Revisions, both pass
449d     and become law, it is the intent of the Legislature that the amendments to Section 63M-1-2403
449e     in this bill supersede the amendments to the newly renumbered Section 63N-2-103 in S.B. 18
449f     when the Office of Legislative Research and General Counsel prepares the Utah Code
449g     database for publication. ←Ĥ




Legislative Review Note
     as of 2-9-15 4:51 PM

Office of Legislative Research and General Counsel