Chief Sponsor: Rebecca P. Edwards

Senate Sponsor: Lincoln Fillmore


9     Committee Note:
10          The Economic Development and Workforce Services Interim Committee recommended
11     this bill.
12     General Description:
13          This bill modifies economic development incentives administered by the Governor's
14     Office of Economic Development.
15     Highlighted Provisions:
16          This bill:
17          ▸     defines terms;
18          ▸     allows for the state to pay certain outstanding financial commitments;
19          ▸     enacts provisions for the state to pay a partial rebate to a business entity for a
20     portion of new state revenue generated by a business entity's new commercial
21     project for an agreement initially entered into before May 5, 2008;
22          ▸     creates the Economic Incentive Restricted Account as a restricted account in the
23     General Fund; and
24          ▸     provides procedures for the applications and payment of a partial rebate.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:

28          None
29     Utah Code Sections Affected:
30     ENACTS:
31          63N-2-109, Utah Code Annotated 1953

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 63N-2-109 is enacted to read:
35          63N-2-109. Transition clause -- Renegotiation of agreements -- Payment of partial
36     rebates.
37          (1) As used in this section:
38          (a) "Account" means the Economic Incentive Restricted Account created in Subsection
39     (2).
40          (b) "Partial rebate" means an agreement between the office and a business entity under
41     which the state agrees to pay back to the business entity a portion of new state revenue
42     generated by a business entity's new commercial project.
43          (2) (a) There is created a restricted account in the General Fund known as the
44     Economic Incentive Restricted Account.
45          (b) The account shall consist of money transferred into the account by the Division of
46     Finance from the General Fund as provided in this section.
47          (c) The Division of Finance shall make payments from the account as required by this
48     section.
49          (3) The Division of Finance shall make partial rebate payments due under an
50     agreement initially entered into by the office before May 5, 2008, as provided in this section.
51          (4) (a) Each business entity seeking a partial rebate shall follow the procedures and
52     requirements of this Subsection (4) to obtain a partial rebate.
53          (b) Within 90 days of the end of each calendar year, a business entity seeking a partial
54     rebate shall:
55          (i) provide the office with documentation of the new state revenue that the business
56     entity generated during the preceding calendar year;
57          (ii) provide the office with a document that expressly directs and authorizes the State
58     Tax Commission to disclose to the office the business entity's returns and other information

59     that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103,
60     Internal Revenue Code; and
61          (iii) ensure that the documentation includes:
62          (A) the types of taxes and corresponding amounts of taxes paid directly to the State
63     Tax Commission; and
64          (B) the sales taxes paid to Utah vendors and suppliers that were indirectly paid to the
65     State Tax Commission.
66          (c) The office shall:
67          (i) audit or review the documentation for accuracy;
68          (ii) based on the office's analysis of the documentation, determine the amount of a
69     partial rebate that the business entity earned under the agreement; and
70          (iii) submit to the Division of Finance:
71          (A) a request for payment of a partial rebate to the business entity;
72          (B) the name and address of the payee; and
73          (C) any other information requested by the Division of Finance.
74          (5) Upon receipt of a request for payment of a partial rebate from the office, the
75     Division of Finance shall:
76          (a) transfer from the General Fund to the restricted account the amount contained in the
77     request for payment of a partial rebate after reducing the amount transferred by any
78     unencumbered balances in the restricted account; and
79          (b) notwithstanding Subsections 51-5-3(23)(b) and 63J-1-104(3)(c), after receiving a
80     request for payment of a partial rebate and making the transfer required by Subsection (5)(a),
81     pay the partial rebate from the account.

Legislative Review Note
Office of Legislative Research and General Counsel