Chief Sponsor: John R. Westwood

Senate Sponsor: Ann Millner


8     Committee Note:
9          The Economic Development and Workforce Services Interim Committee recommended
10     this bill.
11     General Description:
12          This bill modifies economic development programs under the Governor's Office of
13     Economic Development (GOED) by amending the Utah Business Resource Centers
14     Act.
15     Highlighted Provisions:
16          This bill:
17          ▸     repeals the Utah Business Assistance Advisory Board;
18          ▸     allows GOED to convene an advisory group as needed to make recommendations
19     for business resource center improvements;
20          ▸     provides certain rulemaking authority to GOED; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:

28          63N-3-304, as renumbered and amended by Laws of Utah 2015, Chapter 283
29          63N-3-305, as renumbered and amended by Laws of Utah 2015, Chapter 283
30          63N-3-306, as renumbered and amended by Laws of Utah 2015, Chapter 283
31          63N-3-307, as renumbered and amended by Laws of Utah 2015, Chapter 283

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 63N-3-304 is amended to read:
35          63N-3-304. Establishment and administration of business resource centers --
36     Components.
37          (1) The office shall establish business resource centers in at least four different
38     geographical regions of the state where host institutions are located and the host institutions
39     agree to enter into a business resource center partnership with the office.
40          (2) The office, in partnership with a host institution, shall provide methodology and
41     oversight for a business resource center.
42          (3) A host institution shall contribute 50% of a business resource center's operating
43     costs through cash or in-kind contributions, unless otherwise provided under Subsection
44     63N-3-307[(7)](4).
45          (4) The office shall [work with the Utah Business Assistance Advisory Board
46     established under Section 63N-3-306, hereafter referred to in this part as "the board," to]
47     provide operational oversight and coordination of the business resource centers established
48     under this part.
49          (5) (a) A business resource center shall work with state agencies in creating methods to
50     coordinate functions and measure the impact of the efforts provided by the state agencies and
51     the center.
52          (b) The host institution, state, local and federal governmental entities,
53     quasi-governmental entities, and private entities may:
54          (i) participate in the activities offered by or through a business resource center; and
55          (ii) provide personnel or other appropriate links to the center.
56          (c) (i) Other entities that are not initially involved in the establishment of a business
57     resource center and that are capable of providing supportive services to Utah businesses may
58     apply to the center to become a provider of services at the center.

59          (ii) Entities identified in Subsections (5)(a) and (b) shall provide the [board] office
60     with a service plan, to include funding, which would be made available or supplied to cover the
61     expenses of their services offered at a business resource center.
62          [(iii) The board shall review each application made under Subsection (5)(c)(i) and
63     make a recommendation for approval by the office as a precondition for providing the service
64     being offered.]
65          (6) A business resource center may:
66          (a) partner with the office, other host institutions, and other entities to develop and
67     establish web-based access to virtual business resource center services over the Internet to
68     assist in establishing and growing businesses in the state, particularly in those situations where
69     traveling to a business resource center site is not practical;
70          (b) develop a data base and software for:
71          (i) tracking clients and their progress; and
72          (ii) tracking responses and services provided by state agencies and evaluating their
73     effectiveness; and
74          (c) develop outreach programs and services targeted to business clients in rural areas of
75     the state.
76          (7) The office shall include in the annual written report described in Section
77     63N-1-301, a report on measured performance of economic development programs offered by
78     or through established business resource centers.
79          Section 2. Section 63N-3-305 is amended to read:
80          63N-3-305. Duties and responsibilities of a Business Resource Center.
81          (1) A business resource center shall:
82          (a) have a director;
83          (b) be the organization responsible for identifying, tracking, coordinating, and
84     measuring output of assisted business clients in its region;
85          (c) develop programs to aid business clients in finding [the] needed resources [they
86     need];
87          (d) recruit state-funded agencies to locate and establish their programs in the business
88     center's region;
89          (e) initiate and encourage business education programs, including programs in

90     collaboration with public, private, and governmental and educational institutions; and
91          (f) work with the host institution in providing academic resources, including faculty
92     and student assistance.
93          (2) A business resource center shall collaborate with the host institution and state
94     agencies to:
95          (a) provide research, development, or training programs for new or existing businesses,
96     industries, or high technology business located in its region;
97          (b) assist in providing needs assessment relating to new or existing businesses,
98     industries, or high technology business in conjunction with other public or private economic
99     development programs or initiatives;
100          (c) assist in providing business incubator space or services, or both, if considered
101     feasible and practical, to clients based on criteria established by the office [in consultation with
102     the board];
103          (d) work with local business leaders and government officials to help them formulate
104     and implement sound, coordinated, and measurable economic development programs for their
105     communities; and
106          (e) work with local government and other entities in its region in developing and
107     certifying non-state funded satellite business resource centers.
108          Section 3. Section 63N-3-306 is amended to read:
109          63N-3-306. Advisory group.
110          [(1) There is created the Utah Business Assistance Advisory Board, composed of at
111     least 13 members appointed by the executive director of the office.]
112          [(2) (a) The executive director shall appoint:]
113          [(i) one member from three host institutions of business resource centers on a rotating
114     basis;]
115          [(ii) three members from urban areas in the state;]
116          [(iii) two members from rural areas in the state; and]
117          [(iv) one member from each host institution of a statewide business service provider.]
118          [(b) The executive director may appoint ex officio board members who are sponsors of
119     or partners with statewide business server providers.]
120          [(3) Each board member shall have a background or expertise in any one or all of the

121     following:]
122          [(a) state or local economic development;]
123          [(b) business networking, growth, or development;]
124          [(c) entrepreneurship;]
125          [(d) business management or administration; or]
126          [(e) the establishment of partnerships or collaborative efforts with state, local, and
127     federal agencies and institutions, as well as private entities.]
128          [(4) (a) The executive director shall appoint board members for four-year terms.]
129          [(b) The board shall, at the time of appointment or reappointment, adjust the length of
130     terms to ensure that the terms of these members are staggered so that approximately half of the
131     members are appointed every two years.]
132          [(c) When a vacancy occurs in the membership for any reason, the replacement shall be
133     appointed by the executive director for the unexpired term in the same manner as the vacated
134     member was chosen.]
135          [(5) The board shall elect one of its members as a chair of the board for a two-year
136     term.]
137          [(6) The board shall meet at the call of the chair, but at least quarterly.]
138          [(7) (a) A majority of the members of the board constitute a quorum.]
139          [(b) The action of a majority of a quorum constitutes the action of the board.]
140          [(8) A member may not receive compensation or benefits for the member's service, but
141     may receive per diem and travel expenses in accordance with:]
142          [(a) Section 63A-3-106;]
143          [(b) Section 63A-3-107; and]
144          [(c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.]
145          The office may convene an advisory group, as needed, to make recommendations
146     regarding:
147          (1) improvements to a Business Resource Center;
148          (2) the selection of a business-service provider; or
149          (3) the general status of a Business Resource Center's duties as described in Section
150     63N-3-305.
151          Section 4. Section 63N-3-307 is amended to read:

152          63N-3-307. Duties.
153          The [board] office shall:
154          (1) [assist the office in providing] administer grants to business resource centers and
155     provide operational oversight, coordination, and performance review [and provide advice and]
156     to improve the effectiveness of state-funded business assistance programs throughout the state
157     [as designated by the executive director];
158          [(2) make recommendations to the office on requirements for the requisite certification
159     of each business resource center and staff at each center by the executive director;]
160          [(3) make recommendations to the office for certification of the business plans the
161     board is required to review under Subsection 63N-3-304(5)(c)(iii);]
162          [(4) at the direction of the executive director:]
163          [(a) assist the office in providing operational oversight to and coordination of the
164     business resource centers established under this part; and]
165          [(b) work closely with the Governor's Office of Economic Development's Board of
166     Business and Economic Development;]
167          [(5) identify issues and make recommendations to the office regarding programs,
168     policies, and procedures that could be implemented by:]
169          [(a) business resource centers in fulfilling their duties and responsibilities under
170     Section 63N-3-305; and]
171          [(b) state-funded business service providers;]
172          [(6) make budget recommendations to the office]
173          (2) create a competitive budget allocation process regarding the operation and staffing
174     of business resource centers established under this part; and
175          [(7) recommend] (3) in accordance with Title 63G, Chapter 3, Utah Administrative
176     Rulemaking Act, make rules establishing:
177          (a) matching fund exceptions under Subsection 63N-3-304(3);
178          [(8) recommend certification of all non-state funded satellite business resource centers;
179     and]
180          (b) criteria for the approval, creation, and oversight of each business resource center
181     and its staff, including a non-state funded satellite business resource center;
182          [(9) establish] (c) metrics to report the performance of economic development output

183     in each region serviced by a business resource center[.]; and
184          (d) criteria for approving and overseeing business plans.

Legislative Review Note
Office of Legislative Research and General Counsel