V. Lowry Snow
8 LONG TITLE
9 General Description:
10 This bill creates the Rural Employment Expansion Program within the Governor's
11 Office of Economic Development.
12 Highlighted Provisions:
13 This bill:
14 ▸ authorizes a rural employment expansion grant for the creation of new jobs in
15 counties of the fourth, fifth, or sixth class;
16 ▸ requires the Governor's Office of Economic Development to administer the grant;
17 ▸ describes the qualifications and process to receive a rural employment expansion
19 ▸ defines terms; and
20 ▸ provides a sunset date.
21 Money Appropriated in this Bill:
22 This bill appropriates in fiscal year 2019:
23 ▸ to the Governor's Office of Economic Development -- Rural Employment
24 Expansion Program as an ongoing appropriation:
25 • from the General Fund, $728,000.
26 Other Special Clauses:
28 Utah Code Sections Affected:
30 63I-1-263, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
31 and 470
32 63J-1-602.4, as last amended by Laws of Utah 2017, Chapters 253, 430, and 470
34 63N-4-401, Utah Code Annotated 1953
35 63N-4-402, Utah Code Annotated 1953
36 63N-4-403, Utah Code Annotated 1953
37 63N-4-404, Utah Code Annotated 1953
39 Be it enacted by the Legislature of the state of Utah:
40 Section 1. Section 63I-1-263 is amended to read:
41 63I-1-263. Repeal dates, Titles 63A to 63N.
42 (1) Subsection 63A-5-104(4)(h) is repealed on July 1, 2024.
43 (2) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
44 (3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
45 1, 2018.
46 (4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
47 repealed November 30, 2019.
48 (5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
50 (6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
51 repealed July 1, 2021.
52 (7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
54 (8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
56 (9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
58 (10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
59 (11) On July 1, 2025:
60 (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
61 Development Coordinating Committee," is repealed;
62 (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
63 sites for the transplant of species to local government officials having jurisdiction over areas
64 that may be affected by a transplant.";
65 (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
66 Coordinating Committee" is repealed;
67 (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
68 Coordinating Committee created in Section 63J-4-501 and" is repealed;
69 (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
70 Coordinating Committee and" is repealed;
71 (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
73 (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
74 (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
75 word "and" is inserted immediately after the semicolon;
76 (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
77 (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
79 (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
80 renumbered accordingly.
81 (12) (a) Subsection 63J-1-602.4(15) is repealed July 1, 2022.
82 (b) When repealing Subsection 63J-1-602.4(15), the Office of Legislative Research and
83 General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
84 necessary changes to subsection numbering and cross references.
85 (13) The Crime Victim Reparations and Assistance Board, created in Section
86 63M-7-504, is repealed July 1, 2027.
87 (14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
88 (15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
89 (16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
90 repealed January 1, 2021.
91 (b) Subject to Subsection (16)(c), Sections 59-7-610 and 59-10-1007 regarding tax
92 credits for certain persons in recycling market development zones, are repealed for taxable
93 years beginning on or after January 1, 2021.
94 (c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:
95 (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
96 59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or
97 (ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
98 the expenditure is made on or after January 1, 2021.
99 (d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
100 credit in accordance with Section 59-7-610 or 59-10-1007 if:
101 (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and
102 (ii) (A) for the purchase price of machinery or equipment described in Section
103 59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
104 2020; or
105 (B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), the
106 expenditure is made on or before December 31, 2020.
107 (17) Section 63N-2-512 is repealed on July 1, 2021.
108 (18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
109 January 1, 2021.
110 (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
111 calendar years beginning on or after January 1, 2021.
112 (c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
113 accordance with Section 59-9-107 if:
114 (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
115 31, 2020; and
116 (ii) the qualified equity investment that is the basis of the tax credit is certified under
117 Section 63N-2-603 on or before December 31, 2023.
118 (19) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
119 July 1, 2023.
121 Program, is repealed January 1, 2023.
123 July 1, 2018.
125 repealed July 1, 2018.
126 Section 2. Section 63J-1-602.4 is amended to read:
127 63J-1-602.4. List of nonlapsing funds and accounts -- Title 61 through Title 63N.
128 (1) Funds paid to the Division of Real Estate for the cost of a criminal background
129 check for a mortgage loan license, as provided in Section 61-2c-202.
130 (2) Funds paid to the Division of Real Estate for the cost of a criminal background
131 check for principal broker, associate broker, and sales agent licenses, as provided in Section
133 (3) Certain funds donated to the Department of Human Services, as provided in
134 Section 62A-1-111.
135 (4) Appropriations from the National Professional Men's Basketball Team Support of
136 Women and Children Issues Restricted Account created in Section 62A-1-202.
137 (5) Certain funds donated to the Division of Child and Family Services, as provided in
138 Section 62A-4a-110.
139 (6) Appropriations from the Choose Life Adoption Support Restricted Account created
140 in Section 62A-4a-608.
141 (7) Appropriations to the Division of Services for People with Disabilities, as provided
142 in Section 62A-5-102.
143 (8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
144 underground storage tanks under Section 63A-9-401.
145 (9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
146 provided in Section 63C-6-104.
147 (10) Funds appropriated or collected for publishing the Office of Administrative Rules'
148 publications, as provided in Section 63G-3-402.
149 (11) The Immigration Act Restricted Account created in Section 63G-12-103.
150 (12) Money received by the military installation development authority, as provided in
151 Section 63H-1-504.
152 (13) Appropriations from the Computer Aided Dispatch Restricted Account created in
153 Section 63H-7a-303.
154 (14) Appropriations from the Unified Statewide 911 Emergency Service Account
155 created in Section 63H-7a-304.
156 (15) Appropriations from the Utah Statewide Radio System Restricted Account created
157 in Section 63H-7a-403.
158 (16) The Employability to Careers Program Restricted Account created in Section
160 (17) Appropriations to the Utah Science Technology and Research Initiative created in
161 Section 63M-2-301.
162 (18) Appropriations to fund the Governor's Office of Economic Development's
163 Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
164 (19) Funds collected for directing and administering the C-PACE district created in
165 Section 11-42a-302.
166 (20) Appropriations to fund the Governor's Office of Economic Development's Rural
167 Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
168 Employment Expansion Program.
171 Athletic Commission, as provided under Section 63N-10-301.
172 Section 3. Section 63N-4-401 is enacted to read:
174 63N-4-401. Title.
175 This part is known as the "Rural Employment Expansion Program."
176 Section 4. Section 63N-4-402 is enacted to read:
177 63N-4-402. Definitions.
178 As used in this part:
179 (1) (a) "Business entity" means a sole proprietorship, partnership, association, joint
180 venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
181 a business.
182 (b) "Business entity" does not include a business primarily engaged in the following:
183 (i) construction;
184 (ii) staffing;
185 (iii) retail trade; or
186 (iv) public utility activities.
187 (2) "Immediate family member" means a spouse, child, parent, sibling, grandparent, or
189 (3) "New full-time employee position" means a position that has been newly created in
190 addition to the highest baseline count of employment positions that existed within a business
191 entity during the previous taxable year and is filled by an employee working at least 30 hours
192 per week:
193 (a) in a county of the fourth, fifth, or sixth class;
194 (b) for a period of at least 12 consecutive months;
195 (c) in a position that does not primarily involve:
196 (i) construction;
197 (ii) retail trade; or
198 (iii) public utility activities;
199 (d) where the annual gross wage of the position, not including healthcare or other paid
200 or unpaid benefits, is at least 125% of the average wage of the county in which the position
201 exists; and
202 (e) who is not an immediate family member of an owner or officer of the business
204 (4) (a) "Owner or officer" means an individual who owns an ownership interest in an
205 entity or holds a position where the person has authority to manage, direct, control, or make
206 decisions for:
207 (i) the entity or a portion of the entity; or
208 (ii) an employee, agent, or independent contractor of the entity.
209 (b) "Owner or officer" includes:
210 (i) a member of a board of directors or other governing body of an entity; or
211 (ii) a partner in any type of partnership.
212 (5) "Rural employment expansion grant" means a grant available under this part.
213 Section 5. Section 63N-4-403 is enacted to read:
214 63N-4-403. Duties of the office.
215 (1) The office shall:
216 (a) review a business entity's application for a rural employment expansion grant under
217 this part in the order in which the application is received by the office;
218 (b) ensure that a rural employment expansion grant is only awarded to a business entity
219 that meets the requirements of this part; and
220 (c) as part of the annual written report described in Section 63N-1-301, prepare an
221 annual evaluation that provides:
222 (i) the identity of each business entity that was provided a rural employment expansion
223 grant by the office during the year of the annual report;
224 (ii) the total amount awarded in rural employment expansion grants for each county;
226 (iii) an evaluation of the effectiveness of the rural employment expansion grant in
227 bringing significant new employment to rural communities.
228 (2) The office may:
229 (a) authorize a rural employment expansion grant for a business entity under this part;
230 (b) audit a business entity to ensure:
231 (i) eligibility for a rural employment expansion grant; and
232 (ii) compliance with this part; and
233 (c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
234 in accordance with the provisions of this part, make rules regarding the:
235 (i) form and content of an application for a rural employment expansion grant;
236 (ii) documentation or other requirements for a business entity to receive a rural
237 employment expansion grant; and
238 (iii) administration of rural employment expansion grants, including an appeal process
239 and relevant timelines and deadlines.
240 Section 6. Section 63N-4-404 is enacted to read:
241 63N-4-404. Rural employment expansion grant application process.
242 (1) For a fiscal year beginning on or after July 1, 2018, a business entity seeking to
243 receive a rural employment expansion grant as provided in this part shall provide the office
244 with an application for a rural employment expansion grant in a form approved by the office
245 that includes:
246 (a) a certification, by an officer of the business entity, of each signature on the
248 (b) a document that specifies the projected number and anticipated wage level of the
249 new full-time employee positions that the business entity plans to create as the basis for
250 qualifying for a rural employment expansion grant; and
251 (c) any additional information required by the office.
252 (2) (a) If, after review of an application provided by a business entity as described in
253 Subsection (1), the office determines that the application is inadequate to provide a reasonable
254 justification for authorizing the rural employment expansion grant, the office shall:
255 (i) deny the application; or
256 (ii) inform the business entity that the application is inadequate and ask the business
257 entity to submit additional documentation.
258 (b) (i) If the office denies an application, the business entity may appeal the denial to
259 the office.
260 (ii) The office shall review any appeal within 10 business days and make a final
261 determination of the business entity's eligibility for a grant under this part.
262 (3) If, after review of an application provided by a business entity as described in
263 Subsection (1), the office determines that the application provides reasonable justification for
264 authorizing a rural employment expansion grant and if there are available funds for the grant,
265 the office shall enter into a written agreement with the business entity that:
266 (a) indicates the maximum rural employment expansion grant amount the business
267 entity is authorized to receive;
268 (b) includes a document signed by an officer of the business entity that expressly
269 directs and authorizes the State Tax Commission to disclose to the office the business entity's
270 tax returns and other information that would otherwise be subject to confidentiality under
271 Section 59-1-403 or Section 6103, Internal Revenue Code;
272 (c) describes the documentation required to demonstrate that the business entity has
273 created the new full-time employee positions described in the application provided under
274 Subsection (1); and
275 (d) specifies the deadlines to provide the documentation described in Subsection (3)(c).
276 (4) (a) Subject to available funds, the office may award a rural employment expansion
277 grant to a business entity as follows:
278 (i) $4,000 for each new full-time employee position in a county where the average
279 county wage is equal to or greater than the state average wage;
280 (ii) $5,000 for each new full-time employee position in a county where the average
281 county wage is between 85% and 99% of the state average wage; and
282 (iii) $6,000 for each new full-time employee position in a county where the average
283 county wage is less than 85% of the state average wage.
284 (b) A business entity may qualify for no more than $25,000 in rural employment
285 expansion grants in any fiscal year.
286 (5) (a) Subject to available funds, the office shall award a business entity a grant in the
287 amount allowed under this part if the business entity provides documentation to the office:
288 (i) in a form prescribed by the office under Subsection (3)(c);
289 (ii) before the deadline described in Subsection (3)(d); and
290 (iii) that demonstrates that the business applicant has created new full-time employee
292 (b) If a business entity does not provide the documentation described in Subsection
293 (3)(c) before the deadline described in Subsection (3)(d), the business entity is ineligible to
294 receive a rural employment expansion grant unless the business entity submits a new
295 application to be reviewed by the office in accordance with Subsection 63N-2-903(1)(a).
296 Section 7. Appropriation.
297 The following sums of money are appropriated for the fiscal year beginning July 1,
298 2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
299 fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
300 Act, the Legislature appropriates the following sums of money from the funds or accounts
301 indicated for the use and support of the government of the state of Utah.
302 To Governor's Office of Economic Development -- Rural Employment Expansion
304 From General Fund
305 Schedule of Programs:
306 Rural Employment Expansion Program $728,000
307 Under Section 63J-1-602, the Legislature intends that appropriations provided under
308 this section not lapse at the close of fiscal year 2019.