This document includes Senate Committee Amendments incorporated into the bill on Wed, Jan 31, 2018 at 10:08 AM by lpoole.
1     
OFFICE OF ECONOMIC DEVELOPMENT AMENDMENTS

2     
2018 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Carl R. Albrecht

5     
Senate Sponsor: Ralph Okerlund

6     

7     LONG TITLE
8     Committee Note:
9          The Economic Development and Workforce Services Interim Committee recommended
10     this bill.
11     General Description:
12          This bill modifies provisions related to the Governor's Office of Economic
13     Development (GOED) and the Department of Workforce Services (DWS).
14     Highlighted Provisions:
15          This bill:
16          ▸     moves and renumbers provisions related to private activity bonds from GOED to
17     DWS;
18          ▸     repeals provisions related to the State Advisory Council on Science and
19     Technology, the Utah Broadband Outreach Center, the Technology
20     Commercialization and Innovation Program, and the Health System Reform Act;
21          ▸     modifies GOED's duties regarding certain targeted industries;
22          ▸     modifies GOED's duties regarding broadband economic development and mapping;
23     and
24          ▸     makes technical changes.
25     Money Appropriated in this Bill:
26          None
27     Other Special Clauses:

28          This bill provides a special effective date.
29     Utah Code Sections Affected:
30     AMENDS:
31          63I-1-263, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
32     and 470
33          63N-3-111, as renumbered and amended by Laws of Utah 2015, Chapter 283
34     ENACTS:
35          63N-3-501, Utah Code Annotated 1953
36     RENUMBERS AND AMENDS:
37          35A-8-2101, (Renumbered from 63N-5-101, as renumbered and amended by Laws of
38     Utah 2015, Chapter 283)
39          35A-8-2102, (Renumbered from 63N-5-102, as renumbered and amended by Laws of
40     Utah 2015, Chapter 283)
41          35A-8-2103, (Renumbered from 63N-5-103, as renumbered and amended by Laws of
42     Utah 2015, Chapter 283)
43          35A-8-2104, (Renumbered from 63N-5-104, as renumbered and amended by Laws of
44     Utah 2015, Chapter 283)
45          35A-8-2105, (Renumbered from 63N-5-105, as renumbered and amended by Laws of
46     Utah 2015, Chapter 283)
47          35A-8-2106, (Renumbered from 63N-5-106, as renumbered and amended by Laws of
48     Utah 2015, Chapter 283)
49          35A-8-2107, (Renumbered from 63N-5-107, as renumbered and amended by Laws of
50     Utah 2015, Chapter 283)
51          35A-8-2108, (Renumbered from 63N-5-108, as renumbered and amended by Laws of
52     Utah 2015, Chapter 283)
53          35A-8-2109, (Renumbered from 63N-5-109, as renumbered and amended by Laws of
54     Utah 2015, Chapter 283)
55          35A-8-2110, (Renumbered from 63N-5-110, as enacted by Laws of Utah 2015, Chapter
56     283)
57     REPEALS:
58          63N-2-412, as renumbered and amended by Laws of Utah 2015, Chapter 283

59          63N-11-101, as renumbered and amended by Laws of Utah 2015, Chapter 283
60          63N-11-102, as renumbered and amended by Laws of Utah 2015, Chapter 283
61          63N-11-103, as renumbered and amended by Laws of Utah 2015, Chapter 283
62          63N-11-104, as last amended by Laws of Utah 2017, Chapter 292
63          63N-11-105, as renumbered and amended by Laws of Utah 2015, Chapter 283
64          63N-11-106, as last amended by Laws of Utah 2017, Chapter 18
65          63N-12-101, as renumbered and amended by Laws of Utah 2015, Chapter 283
66          63N-12-102, as renumbered and amended by Laws of Utah 2015, Chapter 283
67          63N-12-103, as renumbered and amended by Laws of Utah 2015, Chapter 283
68          63N-12-104, as renumbered and amended by Laws of Utah 2015, Chapter 283
69          63N-12-105, as renumbered and amended by Laws of Utah 2015, Chapter 283
70          63N-12-106, as renumbered and amended by Laws of Utah 2015, Chapter 283
71          63N-12-107, as renumbered and amended by Laws of Utah 2015, Chapter 283
72          63N-12-108, as renumbered and amended by Laws of Utah 2015, Chapter 283
73          63N-12-301, as enacted by Laws of Utah 2015, Chapter 278
74          63N-12-302, as enacted by Laws of Utah 2015, Chapter 278
75          63N-12-303, as enacted by Laws of Utah 2015, Chapter 278
76          63N-12-304, as enacted by Laws of Utah 2015, Chapter 278
77          63N-12-305, as enacted by Laws of Utah 2015, Chapter 278
78     

79     Be it enacted by the Legislature of the state of Utah:
80     
CHAPTER 8. PRIVATE ACTIVITY BONDS

81     
Part 21. Private Activity Bonds

82          Section 1. Section 35A-8-2101, which is renumbered from Section 63N-5-101 is
83     renumbered and amended to read:
84          [63N-5-101].      35A-8-2101. Title -- Purpose.
85          (1) This chapter is known as "Private Activity Bonds."
86          (2) [It is the intent of the Legislature to establish] This chapter establishes procedures
87     to [most] effectively and equitably allocate this state's private activity bond volume cap
88     authorized by the Internal Revenue Code of 1986 in order to maximize the social and economic
89     benefits to this state.

90          Section 2. Section 35A-8-2102, which is renumbered from Section 63N-5-102 is
91     renumbered and amended to read:
92          [63N-5-102].      35A-8-2102. Definitions.
93          As used in this part:
94          (1) "Allocated volume cap" means a volume cap for which:
95          (a) a certificate of allocation is in effect; or [for which]
96          (b) bonds have been issued.
97          (2) "Allotment accounts" means the various accounts created in Section [63N-5-106]
98     35A-8-2106.
99          (3) "Board of review" means the Private Activity Bond Review Board created in
100     Section [63N-5-103] 35A-8-2103.
101          (4) "Bond" means any obligation for which an allocation of volume cap is required by
102     the code.
103          (5) "Code" means the Internal Revenue Code of 1986, as amended, and any related
104     Internal Revenue Service regulations.
105          (6) "Form 8038" means the Department of the Treasury tax form 8038 (OMB No.
106     1545-0720) or any other federal tax form or other method of reporting required by the
107     Department of the Treasury under Section 149(e) of the code.
108          (7) "Issuing authority" means:
109          (a) any county, city, or town in the state;
110          (b) any not-for-profit corporation or joint agency, or other entity acting on behalf of
111     one or more counties, cities, towns, or any combination of these;
112          (c) the state; or
113          (d) any other entity authorized to issue bonds under state law.
114          (8) "State" means the state of Utah and any of its agencies, institutions, and divisions
115     authorized to issue bonds or certificates under state law.
116          (9) "Volume cap" means the private activity bond volume cap for the state as computed
117     under Section 146 of the code.
118          (10) "Year" means each calendar year.
119          Section 3. Section 35A-8-2103, which is renumbered from Section 63N-5-103 is
120     renumbered and amended to read:

121          [63N-5-103].      35A-8-2103. Private Activity Bond Review Board.
122          (1) There is created within the [office] department the Private Activity Bond Review
123     Board, composed of the following 11 members:
124          (a) (i) the executive director of the [office] department or the executive director's
125     designee;
126          [(ii) an employee of the office designated by the executive director;]
127          (ii) the executive director of the Governor's Office of Economic Development or the
128     executive director's designee;
129          (iii) the state treasurer or the state treasurer's designee;
130          (iv) the chair of the Board of Regents or the chair's designee; and
131          (v) Ŝ→ [
[] ←Ŝ the chair of the Utah Housing Corporation or the chair's Ŝ→ [] the director
131a     of the
132     division or the director's
] ←Ŝ designee; and
133          (b) six local government members who are:
134          (i) three elected or appointed county officials, nominated by the Utah Association of
135     Counties and appointed by the governor with the consent of the Senate; and
136          (ii) three elected or appointed municipal officials, nominated by the Utah League of
137     Cities and Towns and appointed by the governor with the consent of the Senate.
138          (2) (a) Except as required by Subsection (2)(b), the terms of office for the local
139     government members of the board of review shall be four-year terms.
140          (b) Notwithstanding the requirements of Subsection (2)(a), the governor shall, at the
141     time of appointment or reappointment, adjust the length of terms to ensure that the terms of
142     board of review members are staggered so that approximately half of the board of review is
143     appointed every two years.
144          (c) Members may be reappointed only once.
145          (3) (a) If a local government member ceases to be an elected or appointed official of
146     the city or county the member is appointed to represent, that membership on the board of
147     review terminates immediately and there shall be a vacancy in the membership.
148          (b) When a vacancy occurs in the membership for any reason, the replacement shall be
149     appointed within 30 days in the manner of the regular appointment for the unexpired term[, and
150     until his successor is appointed and qualified].
151          (4) (a) The chair of the board of review is the executive director of the [office]

152     department or the executive director's designee.
153          (b) The chair is nonvoting except in the case of a tie vote.
154          (5) Six members of the board of review constitute a quorum.
155          (6) Formal action by the board of review requires a majority vote of a quorum.
156          (7) A member may not receive compensation or benefits for the member's service, but
157     may receive per diem and travel expenses in accordance with:
158          (a) Section 63A-3-106;
159          (b) Section 63A-3-107; and
160          (c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
161          (8) The chair of the board of review serves as the state official designated under state
162     law to make certifications required to be made under Section 146 of the code including the
163     certification required by Section 149(e)(2)(F) of the code.
164          Section 4. Section 35A-8-2104, which is renumbered from Section 63N-5-104 is
165     renumbered and amended to read:
166          [63N-5-104].      35A-8-2104. Powers, functions, and duties of board of
167     review.
168          The board of review shall:
169          (1) make, subject to the limitations of the code, allocations of volume cap to issuing
170     authorities;
171          (2) determine the amount of volume cap to be allocated with respect to approved
172     applications;
173          (3) maintain a record of all applications filed by issuing authorities under Section
174     [63N-5-105] 35A-8-2105 and all certificates of allocation issued under Section [63N-5-107]
175     35A-8-2107;
176          (4) maintain a record of all bonds issued by issuing authorities during each year;
177          (5) determine the amount of volume cap to be treated as a carryforward under Section
178     146(f) of the code and allocate this carryforward to one or more qualified carryforward
179     purposes;
180          (6) make available upon reasonable request a certified copy of all or any part of the
181     records maintained by the board of review under this part or a summary of them, including
182     information relating to the volume cap for each year and any amounts available for allocation

183     under this part;
184          (7) [promulgate] make rules for the allocation of volume cap under this part; and
185          (8) charge reasonable fees for the performance of duties prescribed by this part,
186     including application, filing, and processing fees.
187          Section 5. Section 35A-8-2105, which is renumbered from Section 63N-5-105 is
188     renumbered and amended to read:
189          [63N-5-105].      35A-8-2105. Allocation of volume cap.
190          (1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed
191     by the board of review to the [various] allotment accounts as [set forth] described in Section
192     [63N-5-106] 35A-8-2106.
193          (b) The board of review may distribute up to 50% of each increase in the volume cap
194     for use in development that occurs in quality growth areas, depending upon the board's analysis
195     of the relative need for additional volume cap between development in quality growth areas
196     and the allotment accounts under Section [63N-5-106] 35A-8-2106.
197          (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the
198     board of review an application containing information required by the procedures and
199     processes of the board of review.
200          (3) (a) The board of review shall establish criteria for making allocations of volume
201     cap that are consistent with the purposes of the code and this part.
202          (b) In making an allocation of volume cap the board of review shall consider the
203     following:
204          (i) the principal amount of the bonds proposed to be issued;
205          (ii) the nature and the location of the project or the type of program;
206          (iii) the likelihood that the bonds will be sold and the timeframe of bond issuance;
207          (iv) whether the project or program could obtain adequate financing without an
208     allocation of volume cap;
209          (v) the degree to which an allocation of volume cap is required for the project or
210     program to proceed or continue;
211          (vi) the social, health, economic, and educational effects of the project or program on
212     the local community and state as a whole;
213          (vii) the anticipated economic development created or retained within the local

214     community and the state as a whole;
215          (viii) the anticipated number of jobs, both temporary and permanent, created or
216     retained within the local community and the state as a whole;
217          (ix) if the project is a residential rental project, the degree to which the residential
218     rental project:
219          (A) targets lower income populations; and
220          (B) is accessible housing; and
221          (x) whether the project meets the principles of quality growth recommended by the
222     Quality Growth Commission created [under] in Section 11-38-201.
223          (4) The board of review shall provide evidence of an allocation of volume cap by
224     issuing a certificate in accordance with Section [63N-5-107] 35A-8-2107.
225          (5) (a) From January 1 to June 30 of each year, the board of review shall set aside at
226     least 50% of the Small Issue Bond Account that may only be allocated [only] to manufacturing
227     projects.
228          (b) From July 1 to August 15 of each year, the board of review shall set aside at least
229     50% of the Pool Account that may only be allocated [only] to manufacturing projects.
230          Section 6. Section 35A-8-2106, which is renumbered from Section 63N-5-106 is
231     renumbered and amended to read:
232          [63N-5-106].      35A-8-2106. Allotment accounts.
233          (1) There are created the following allotment accounts:
234          (a) the Single Family Housing Account, for which eligible issuing authorities are those
235     authorized under the code and state statute to issue qualified mortgage bonds under Section 143
236     of the code;
237          (b) the Student Loan Account, for which eligible issuing authorities are those
238     authorized under the code and state statute to issue qualified student loan bonds under Section
239     144(b) of the code;
240          (c) the Small Issue Bond Account, for which eligible issuing authorities are those
241     authorized under the code and state statute to issue:
242          (i) qualified small issue bonds under Section 144(a) of the code;
243          (ii) qualified exempt facility bonds for qualified residential rental projects under
244     Section 142(d) of the code; or

245          (iii) qualified redevelopment bonds under Section 144(c) of the code;
246          (d) the Exempt Facilities Account, for which eligible issuing authorities are those
247     authorized under the code and state statute to issue any bonds requiring an allocation of volume
248     cap other than for purposes described in Subsections (1)(a), (b), or (c);
249          (e) the Pool Account, for which eligible issuing authorities are those authorized under
250     the code and state statute to issue any bonds requiring an allocation of volume cap; and
251          (f) the Carryforward Account, for which eligible issuing authorities are those with
252     projects or programs qualifying under Section 146(f) of the code.
253          (2) (a) The volume cap shall be distributed to the [various] allotment accounts on
254     January 1 of each year on the following basis:
255          (i) 42% to the Single Family Housing Account;
256          (ii) 33% to the Student Loan Account;
257          (iii) 1% to the Exempt Facilities Account; and
258          (iv) 24% to the Small Issue Bond Account.
259          (b) From July 1 to September 30 of each year, the board of review may transfer any
260     unallocated volume cap from the Exempt Facilities Account or the Small Issue Bond Account
261     to the Pool Account.
262          (c) [The board of review, upon] Upon written notification by the issuing authorities
263     eligible for volume cap allocation from the Single Family Housing Account or the Student
264     Loan Account that all or a portion of volume cap distributed into that allotment account will
265     not be used, the board of review may transfer the unused volume cap between the Single
266     Family Housing Account and the Student Loan Account.
267          (d) From October 1 to the third Friday of December of each year, the board of review
268     shall transfer all unallocated volume cap into the Pool Account.
269          (e) On the third Saturday of December of each year, the board of review shall transfer
270     uncollected volume cap, or allocated volume cap for which bonds have not been issued prior to
271     the third Saturday of December, into the Carryforward Account.
272          (f) If the authority to issue bonds designated in any allotment account is rescinded by
273     amendment to the code, the board of review may transfer any unallocated volume cap from that
274     allotment account to any other allotment account.
275          Section 7. Section 35A-8-2107, which is renumbered from Section 63N-5-107 is

276     renumbered and amended to read:
277          [63N-5-107].      35A-8-2107. Certificates of allocation.
278          (1) (a) After an allocation of volume cap for a project or program is approved by the
279     board of review, the board of review shall issue a numbered certificate of allocation stating the
280     amount of the allocation, the allotment account for which the allocation is being made, and the
281     expiration date of the allocation.
282          (b) The certificates of allocation shall be mailed to the issuing authority within 10
283     working days of the date of approval.
284          (c) [No bonds] Bonds are not entitled to any allocation of the volume cap unless the
285     issuing authority received a certificate of allocation with respect to the bonds.
286          (d) (i) Certificates of allocation shall remain in effect for a period of 90 days from the
287     date of approval.
288          (ii) If bonds for which a certificate has been approved are not issued within the 90-day
289     period, the certificate of allocation is void and volume cap shall be returned to the applicable
290     allotment account for reallocation by the board of review.
291          (2) (a) An issuing authority receiving an allocation of volume cap from the
292     Carryforward Account shall receive a certificate of allocation similar to the certificates of
293     allocation described in Subsection (1) from the board of review stating the amount of allocation
294     from the Carryforward Account that has been allocated to the issuing authority and the
295     expiration of the allocation.
296          (b) (i) If in the judgment of the board of review an issuing authority or a person or
297     entity responsible for a project or program receiving an allocation from the Carryforward
298     Account does not proceed with diligence in providing for the issuance of the bonds with
299     respect to the project or program, and because of the lack of diligence the volume cap cannot
300     be used, the board of review may exclude from [its] the board of review's consideration for a
301     given period of time, determined by the board of review, an application of the issuing authority,
302     person, or entity.
303          (ii) The board of review may, at any time, review and modify [its] the board of review's
304     decisions relating to [this exclusion] the exclusion described in this Subsection (2)(b).
305          Section 8. Section 35A-8-2108, which is renumbered from Section 63N-5-108 is
306     renumbered and amended to read:

307          [63N-5-108].      35A-8-2108. Issuing authorities -- Limitations -- Duties.
308          (1) (a) [Any] Notwithstanding any law to the contrary [notwithstanding], an issuing
309     authority issuing bonds without a certificate of allocation issued under Section [63N-5-107]
310     35A-8-2107, or an issuing authority issuing bonds after the expiration of a certificate of
311     allocation, is not entitled to an allocation of the volume cap for those bonds.
312          (b) An issuing authority issuing bonds in excess of the amount set forth in the related
313     certificate of allocation is not entitled to an allocation of the volume cap for the excess.
314          (2) Each issuing authority shall:
315          (a) advise the board of review, within 15 days after the issuance of bonds, of the
316     principal amount of bonds issued under each certificate of allocation by delivering to the board
317     of review a copy of the Form 8038 that was delivered or shall be delivered to the Internal
318     Revenue Service in connection with the bonds, or, if no Form 8038 is required to be delivered
319     to the Internal Revenue Service, a completed copy of a Form 8038 prepared for the board of
320     review with respect to the bonds; and
321          (b) if all or a stated portion of the bonds for which a certificate of allocation was
322     received will not be issued, advise the board of review in writing, within 15 days of the earlier
323     of:
324          (i) the final decision not to issue all or a stated portion of the bonds; or
325          (ii) the expiration of the certificate of allocation.
326          (3) Failure by an issuing authority to notify the board of review under Subsection (2),
327     including failure to timely deliver a Form 8038, may, in the sole discretion of the board of
328     review, result in the [issuing authority being denied] board of review denying further
329     consideration of applications from the issuing authority.
330          Section 9. Section 35A-8-2109, which is renumbered from Section 63N-5-109 is
331     renumbered and amended to read:
332          [63N-5-109].      35A-8-2109. Procedures -- Adjudicative proceedings.
333          The board of review shall comply with the procedures and requirements of Title 63G,
334     Chapter 4, Administrative Procedures Act, in [its] the board of review's adjudicative
335     proceedings.
336          Section 10. Section 35A-8-2110, which is renumbered from Section 63N-5-110 is
337     renumbered and amended to read:

338          [63N-5-110].      35A-8-2110. Duties of the department.
339          (1) The [office] department is recognized as an issuing authority as defined in Section
340     [63N-5-102] 35A-8-2102, entitled to issue bonds from the Small Issue Bond Account created
341     in Subsection [63N-5-106(1)(c)] 35A-8-2106(1)(c) as a part of the state's private activity bond
342     volume cap authorized by the Internal Revenue Code and computed under Section 146, Internal
343     Revenue Code.
344          (2) To promote and encourage the issuance of bonds from the Small Issue Bond
345     Account for manufacturing projects, the [office] department may:
346          (a) develop campaigns and materials that inform qualified small manufacturing
347     businesses about the existence of the program and the application process;
348          (b) assist small businesses in applying for and qualifying for these bonds; and
349          (c) develop strategies to lower the cost to small businesses of applying for and
350     qualifying for these bonds, including making arrangements with financial advisors,
351     underwriters, bond counsel, and other professionals involved in the issuance process to provide
352     [their] services at a reduced rate when the [division] department can provide [them] such
353     service providers with a high volume of applicants or issues.
354          Section 11. Section 63I-1-263 is amended to read:
355          63I-1-263. Repeal dates, Titles 63A to 63N.
356          (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
357          (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
358          (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
359     1, 2018.
360          (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
361     repealed November 30, 2019.
362          (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
363     2020.
364          (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
365     repealed July 1, 2021.
366          (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
367     2018.
368          (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,

369     2023.
370          (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
371     2020.
372          (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
373          (11) On July 1, 2025:
374          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
375     Development Coordinating Committee," is repealed;
376          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
377     sites for the transplant of species to local government officials having jurisdiction over areas
378     that may be affected by a transplant.";
379          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
380     Coordinating Committee" is repealed;
381          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
382     Coordinating Committee created in Section 63J-4-501 and" is repealed;
383          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
384     Coordinating Committee and" is repealed;
385          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
386     accordingly;
387          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
388          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
389     word "and" is inserted immediately after the semicolon;
390          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
391          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
392     and
393          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
394     renumbered accordingly.
395          (12) (a) Subsection 63J-1-602.4(15) is repealed July 1, 2022.
396          (b) When repealing Subsection 63J-1-602.4(15), the Office of Legislative Research and
397     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
398     necessary changes to subsection numbering and cross references.
399          (13) The Crime Victim Reparations and Assistance Board, created in Section

400     63M-7-504, is repealed July 1, 2027.
401          (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
402          (15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
403          (16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
404     repealed January 1, 2021.
405          (b) Subject to Subsection (16)(c), Sections 59-7-610 and 59-10-1007 regarding tax
406     credits for certain persons in recycling market development zones, are repealed for taxable
407     years beginning on or after January 1, 2021.
408          (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
409          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
410     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
411          (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
412     the expenditure is made on or after January 1, 2021.
413          (d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
414     credit in accordance with Section 59-7-610 or 59-10-1007 if:
415          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
416          (ii) (A) for the purchase price of machinery or equipment described in Section
417     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
418     2020; or
419          (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
420     expenditure is made on or before December 31, 2020.
421          (17) Section 63N-2-512 is repealed on July 1, 2021.
422          (18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
423     January 1, 2021.
424          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
425     calendar years beginning on or after January 1, 2021.
426          (c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
427     accordance with Section 59-9-107 if:
428          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
429     31, 2020; and
430          (ii) the qualified equity investment that is the basis of the tax credit is certified under

431     Section 63N-2-603 on or before December 31, 2023.
432          (19) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant Program,
433     is repealed January 1, 2023.
434          [(20) Title 63N, Chapter 12, Part 3, Utah Broadband Outreach Center, is repealed July
435     1, 2018.]
436          [(21)] (20) Title 63N, Chapter 12, Part 4, Career and Technical Education Board, is
437     repealed July 1, 2018.
438          Section 12. Section 63N-3-111 is amended to read:
439          63N-3-111. Annual policy considerations.
440          (1) (a) The board shall determine annually which industries or groups of industries
441     shall be targeted industries as defined in Section 63N-3-102.
442          (b) The office shall make recommendations to state and federal agencies, local
443     governments, the governor, and the Legislature regarding policies and initiatives that promote
444     the economic development of targeted industries.
445          (c) The office may create one or more voluntary advisory committees that may include
446     public and private stakeholders to solicit input on policy guidance and best practices in
447     encouraging the economic development of targeted industries.
448          (2) In designating an economically disadvantaged rural area, the board shall consider
449     the average agricultural and nonagricultural wage, personal income, unemployment, and
450     employment in the area.
451          (3) In evaluating the economic impact of applications for assistance, the board shall use
452     an econometric cost-benefit model or models adopted by the Governor's Office of Management
453     and Budget.
454          (4) The board may establish:
455          (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
456     return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
457     Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
458     such as the rate of unemployment; and
459          (b) minimum applicant expense ratios, as long as they are at least equal to those
460     required under Subsection 63N-3-105(1)(a) or 63N-3-108(1)(b)(i)(A).
461          Section 13. Section 63N-3-501 is enacted to read:

462     
Part 5. Infrastructure and Broadband Coordination

463          63N-3-501. Infrastructure and broadband coordination.
464          (1) The office shall partner with the Automated Geographic Reference Center created
465     in Section 63F-1-506 to collect and maintain a database and interactive map that displays
466     economic development data statewide, including:
467          (a) voluntarily submitted broadband availability, speeds, and other broadband data;
468          (b) voluntarily submitted public utility data;
469          (c) workforce data, including information regarding:
470          (i) enterprise zones designated under Section 63N-2-206;
471          (ii) business resource centers;
472          (iii) public institutions of higher education; and
473          (iv) procurement technical assistance centers;
474          (d) transportation data, which may include information regarding railway routes,
475     commuter rail routes, airport locations, and major highways;
476          (e) lifestyle data, which may include information regarding state parks, national parks
477     and monuments, United States Forest Service boundaries, ski areas, golf courses, and hospitals;
478     and
479          (f) other relevant economic development data as determined by the office, including
480     data provided by partner organizations.
481          (2) The office may:
482          (a) make recommendations to state and federal agencies, local governments, the
483     governor, and the Legislature regarding policies and initiatives that promote the development
484     of broadband-related infrastructure in the state and help implement those policies and
485     initiatives;
486          (b) facilitate coordination between broadband providers and public and private entities;
487          (c) collect and analyze data on broadband availability and usage in the state, including
488     Internet speed, capacity, the number of unique visitors, and the availability of broadband
489     infrastructure throughout the state;
490          (d) create a voluntary broadband advisory committee, which Ŝ→ [
may] shall ←Ŝ include
490a     broadband
491     providers and other public and private stakeholders, to solicit input on broadband-related policy
492     guidance, best practices, and adoption strategies;

493          (e) work with broadband providers, state and local governments, and other public and
494     private stakeholders to facilitate and encourage the expansion and maintenance of broadband
495     infrastructure throughout the state; and
496          (f) in accordance with the requirements of Title 63J, Chapter 5, Federal Funds
497     Procedures Act, and in accordance with federal requirements:
498          (i) apply for federal grants;
499          (ii) participate in federal programs; and
500          (iii) administer federally funded broadband-related programs.
501          Section 14. Repealer.
502          This bill repeals:
503          Section 63N-2-412, Technology Commercialization and Innovation Program.
504          Section 63N-11-101, Title.
505          Section 63N-11-102, Definitions.
506          Section 63N-11-103, Duties related to health system reform.
507          Section 63N-11-104, Creation of Office of Consumer Health Services -- Duties.
508          Section 63N-11-105, Strategic plan for health system reform.
509          Section 63N-11-106, Reporting on federal health reform -- Prohibition of
510     individual mandate.
511          Section 63N-12-101, Title -- Purpose.
512          Section 63N-12-102, Definition of terms.
513          Section 63N-12-103, Creation.
514          Section 63N-12-104, Members -- Appointment -- Terms -- Qualifications --
515     Vacancies -- Chair and vice chair -- Executive secretary -- Executive committee --
516     Quorum -- Expenses.
517          Section 63N-12-105, Duties and powers.
518          Section 63N-12-106, Adviser -- Duties and powers.
519          Section 63N-12-107, Request for information.
520          Section 63N-12-108, Science education program.
521          Section 63N-12-301, Title.
522          Section 63N-12-302, Definitions.
523          Section 63N-12-303, Creation of center.

524          Section 63N-12-304, Center responsibilities.
525          Section 63N-12-305, Reporting.
526          Section 15. Effective date.
527          This bill takes effect on July 1, 2018.






Legislative Review Note
Office of Legislative Research and General Counsel