7 V. Lowry Snow
9 LONG TITLE
10 General Description:
11 This bill creates the Rural Employment Expansion Program within the Governor's
12 Office of Economic Development.
13 Highlighted Provisions:
14 This bill:
15 ▸ authorizes a rural employment expansion grant for the creation of new jobs in
16 counties of the fourth, fifth, or sixth class;
17 ▸ requires the Governor's Office of Economic Development to administer the grant;
18 ▸ describes the qualifications and process to receive a rural employment expansion
20 ▸ defines terms; and
21 ▸ provides a sunset date.
22 Money Appropriated in this Bill:
23 This bill appropriates in fiscal year 2019:
24 ▸ to the Governor's Office of Economic Development -- Rural Employment
25 Expansion Program as an ongoing appropriation:
26 • from the General Fund, $728,000.
27 Other Special Clauses:
29 Utah Code Sections Affected:
31 63I-1-263, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
32 and 470
33 63J-1-602.4, as last amended by Laws of Utah 2017, Chapters 253, 430, and 470
35 63N-4-401, Utah Code Annotated 1953
36 63N-4-402, Utah Code Annotated 1953
37 63N-4-403, Utah Code Annotated 1953
38 63N-4-404, Utah Code Annotated 1953
40 Be it enacted by the Legislature of the state of Utah:
41 Section 1. Section 63I-1-263 is amended to read:
42 63I-1-263. Repeal dates, Titles 63A to 63N.
43 (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
44 (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
45 (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
46 1, 2018.
47 (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
48 repealed November 30, 2019.
49 (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
51 (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
52 repealed July 1, 2021.
53 (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
55 (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
57 (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
59 (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
60 (11) On July 1, 2025:
61 (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
62 Development Coordinating Committee," is repealed;
63 (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
64 sites for the transplant of species to local government officials having jurisdiction over areas
65 that may be affected by a transplant.";
66 (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
67 Coordinating Committee" is repealed;
68 (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
69 Coordinating Committee created in Section 63J-4-501 and" is repealed;
70 (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
71 Coordinating Committee and" is repealed;
72 (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
74 (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
75 (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
76 word "and" is inserted immediately after the semicolon;
77 (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
78 (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
80 (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
81 renumbered accordingly.
82 (12) (a) Subsection 63J-1-602.4(15) is repealed July 1, 2022.
83 (b) When repealing Subsection 63J-1-602.4(15), the Office of Legislative Research and
84 General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
85 necessary changes to subsection numbering and cross references.
86 (13) The Crime Victim Reparations and Assistance Board, created in Section
87 63M-7-504, is repealed July 1, 2027.
88 (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
89 (15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
90 (16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
91 repealed January 1, 2021.
92 (b) Subject to Subsection (16)(c), Sections 59-7-610 and 59-10-1007 regarding tax
93 credits for certain persons in recycling market development zones, are repealed for taxable
94 years beginning on or after January 1, 2021.
95 (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
96 (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
97 59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
98 (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
99 the expenditure is made on or after January 1, 2021.
100 (d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
101 credit in accordance with Section 59-7-610 or 59-10-1007 if:
102 (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
103 (ii) (A) for the purchase price of machinery or equipment described in Section
104 59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
105 2020; or
106 (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
107 expenditure is made on or before December 31, 2020.
108 (17) Section 63N-2-512 is repealed on July 1, 2021.
109 (18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
110 January 1, 2021.
111 (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
112 calendar years beginning on or after January 1, 2021.
113 (c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
114 accordance with Section 59-9-107 if:
115 (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
116 31, 2020; and
117 (ii) the qualified equity investment that is the basis of the tax credit is certified under
118 Section 63N-2-603 on or before December 31, 2023.
119 (19) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
120 July 1, 2023.
122 Program, is repealed January 1, 2023.
124 July 1, 2018.
126 repealed July 1, 2018.
127 Section 2. Section 63J-1-602.4 is amended to read:
128 63J-1-602.4. List of nonlapsing funds and accounts -- Title 61 through Title 63N.
129 (1) Funds paid to the Division of Real Estate for the cost of a criminal background
130 check for a mortgage loan license, as provided in Section 61-2c-202.
131 (2) Funds paid to the Division of Real Estate for the cost of a criminal background
132 check for principal broker, associate broker, and sales agent licenses, as provided in Section
134 (3) Certain funds donated to the Department of Human Services, as provided in
135 Section 62A-1-111.
136 (4) Appropriations from the National Professional Men's Basketball Team Support of
137 Women and Children Issues Restricted Account created in Section 62A-1-202.
138 (5) Certain funds donated to the Division of Child and Family Services, as provided in
139 Section 62A-4a-110.
140 (6) Appropriations from the Choose Life Adoption Support Restricted Account created
141 in Section 62A-4a-608.
142 (7) Appropriations to the Division of Services for People with Disabilities, as provided
143 in Section 62A-5-102.
144 (8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
145 underground storage tanks under Section 63A-9-401.
146 (9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
147 provided in Section 63C-6-104.
148 (10) Funds appropriated or collected for publishing the Office of Administrative Rules'
149 publications, as provided in Section 63G-3-402.
150 (11) The Immigration Act Restricted Account created in Section 63G-12-103.
151 (12) Money received by the military installation development authority, as provided in
152 Section 63H-1-504.
153 (13) Appropriations from the Computer Aided Dispatch Restricted Account created in
154 Section 63H-7a-303.
155 (14) Appropriations from the Unified Statewide 911 Emergency Service Account
156 created in Section 63H-7a-304.
157 (15) Appropriations from the Utah Statewide Radio System Restricted Account created
158 in Section 63H-7a-403.
159 (16) The Employability to Careers Program Restricted Account created in Section
161 (17) Appropriations to the Utah Science Technology and Research Initiative created in
162 Section 63M-2-301.
163 (18) Appropriations to fund the Governor's Office of Economic Development's
164 Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
165 (19) Funds collected for directing and administering the C-PACE district created in
166 Section 11-42a-302.
167 (20) Appropriations to fund the Governor's Office of Economic Development's Rural
168 Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
169 Employment Expansion Program.
172 Athletic Commission, as provided under Section 63N-10-301.
173 Section 3. Section 63N-4-401 is enacted to read:
175 63N-4-401. Title.
176 This part is known as the "Rural Employment Expansion Program."
177 Section 4. Section 63N-4-402 is enacted to read:
178 63N-4-402. Definitions.
179 As used in this part:
180 (1) (a) "Business entity" means a sole proprietorship, partnership, association, joint
181 venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
182 a business.
183 (b) "Business entity" does not include a business primarily engaged in the following:
184 (i) construction;
185 (ii) staffing;
186 (iii) retail trade; or
187 (iv) public utility activities.
188 (2) "Immediate family member" means a spouse, child, parent, sibling, grandparent, or
190 (3) "New full-time employee position" means a position that has been newly created in
191 addition to the highest baseline count of employment positions that existed within a business
192 entity during the previous taxable year and is filled by an employee working at least 30 hours
193 per week:
194 (a) in a county of the fourth, fifth, or sixth class;
195 (b) for a period of at least 12 consecutive months;
196 (c) in a position that does not primarily involve:
197 (i) construction;
198 (ii) retail trade; or
199 (iii) public utility activities;
200 (d) where the annual gross wage of the position, not including healthcare or other paid
201 or unpaid benefits, is at least 125% of the average wage of the county in which the position
202 exists; and
203 (e) who is not an immediate family member of an owner or officer of the business
205 (4) (a) "Owner or officer" means an individual who owns an ownership interest in an
206 entity or holds a position where the person has authority to manage, direct, control, or make
207 decisions for:
208 (i) the entity or a portion of the entity; or
209 (ii) an employee, agent, or independent contractor of the entity.
210 (b) "Owner or officer" includes:
211 (i) a member of a board of directors or other governing body of an entity; or
212 (ii) a partner in any type of partnership.
213 (5) "Rural employment expansion grant" means a grant available under this part.
214 Section 5. Section 63N-4-403 is enacted to read:
215 63N-4-403. Duties of the office.
216 (1) The office shall:
217 (a) review a business entity's application for a rural employment expansion grant under
218 this part in the order in which the application is received by the office;
219 (b) ensure that a rural employment expansion grant is only awarded to a business entity
220 that meets the requirements of this part; and
221 (c) as part of the annual written report described in Section 63N-1-301, prepare an
222 annual evaluation that provides:
223 (i) the identity of each business entity that was provided a rural employment expansion
224 grant by the office during the year of the annual report;
225 (ii) the total amount awarded in rural employment expansion grants for each county;
227 (iii) an evaluation of the effectiveness of the rural employment expansion grant in
228 bringing significant new employment to rural communities.
229 (2) The office may:
230 (a) authorize a rural employment expansion grant for a business entity under this part;
231 (b) audit a business entity to ensure:
232 (i) eligibility for a rural employment expansion grant; and
233 (ii) compliance with this part; and
234 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
235 in accordance with the provisions of this part, make rules regarding the:
236 (i) form and content of an application for a rural employment expansion grant;
237 (ii) documentation or other requirements for a business entity to receive a rural
238 employment expansion grant; and
239 (iii) administration of rural employment expansion grants, including an appeal process
240 and relevant timelines and deadlines.
241 Section 6. Section 63N-4-404 is enacted to read:
242 63N-4-404. Rural employment expansion grant application process.
243 (1) For a fiscal year beginning on or after July 1, 2018, a business entity seeking to
244 receive a rural employment expansion grant as provided in this part shall provide the office
245 with an application for a rural employment expansion grant in a form approved by the office
246 that includes:
247 (a) a certification, by an officer of the business entity, of each signature on the
249 (b) a document that specifies the projected number and anticipated wage level of the
250 new full-time employee positions that the business entity plans to create as the basis for
251 qualifying for a rural employment expansion grant; and
252 (c) any additional information required by the office.
253 (2) (a) If, after review of an application provided by a business entity as described in
254 Subsection (1), the office determines that the application is inadequate to provide a reasonable
255 justification for authorizing the rural employment expansion grant, the office shall:
256 (i) deny the application; or
257 (ii) inform the business entity that the application is inadequate and ask the business
258 entity to submit additional documentation.
259 (b) (i) If the office denies an application, the business entity may appeal the denial to
260 the office.
261 (ii) The office shall review any appeal within 10 business days and make a final
262 determination of the business entity's eligibility for a grant under this part.
263 (3) If, after review of an application provided by a business entity as described in
264 Subsection (1), the office determines that the application provides reasonable justification for
265 authorizing a rural employment expansion grant and if there are available funds for the grant,
266 the office shall enter into a written agreement with the business entity that:
267 (a) indicates the maximum rural employment expansion grant amount the business
268 entity is authorized to receive;
269 (b) includes a document signed by an officer of the business entity that expressly
270 directs and authorizes the State Tax Commission to disclose to the office the business entity's
271 tax returns and other information that would otherwise be subject to confidentiality under
272 Section 59-1-403 or Section 6103, Internal Revenue Code;
273 (c) describes the documentation required to demonstrate that the business entity has
274 created the new full-time employee positions described in the application provided under
275 Subsection (1); and
276 (d) specifies the deadlines to provide the documentation described in Subsection (3)(c).
277 (4) (a) Subject to available funds, the office may award a rural employment expansion
278 grant to a business entity as follows:
279 (i) $4,000 for each new full-time employee position in a county where the average
280 county wage is equal to or greater than the state average wage;
281 (ii) $5,000 for each new full-time employee position in a county where the average
282 county wage is between 85% and 99% of the state average wage; and
283 (iii) $6,000 for each new full-time employee position in a county where the average
284 county wage is less than 85% of the state average wage.
285 (b) A business entity may qualify for no more than $25,000 in rural employment
286 expansion grants in any fiscal year.
287 (5) (a) Subject to available funds, the office shall award a business entity a grant in the
288 amount allowed under this part if the business entity provides documentation to the office:
289 (i) in a form prescribed by the office under Subsection (3)(c);
290 (ii) before the deadline described in Subsection (3)(d); and
291 (iii) that demonstrates that the business applicant has created new full-time employee
293 (b) If a business entity does not provide the documentation described in Subsection
294 (3)(c) before the deadline described in Subsection (3)(d), the business entity is ineligible to
295 receive a rural employment expansion grant unless the business entity submits a new
296 application to be reviewed by the office in accordance with Subsection 63N-2-903(1)(a).
297 Section 7. Appropriation.
298 The following sums of money are appropriated for the fiscal year beginning July 1,
299 2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
300 fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
301 Act, the Legislature appropriates the following sums of money from the funds or accounts
302 indicated for the use and support of the government of the state of Utah.
303 To Governor's Office of Economic Development -- Rural Employment Expansion
305 From General Fund
306 Schedule of Programs:
307 Rural Employment Expansion Program $728,000
308 Under Section 63J-1-602, the Legislature intends that appropriations provided under
309 this section not lapse at the close of fiscal year 2019.