Representative Carl R. Albrecht proposes the following substitute bill:




Chief Sponsor: Carl R. Albrecht

Senate Sponsor: Ralph Okerlund


8     General Description:
9          This bill creates a grant program in the Governor's Office of Economic Development
10     (GOED).
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms, including "coworking and innovation center";
14          ▸     creates the Rural Coworking and Innovation Center Grant Program in GOED;
15          ▸     describes the requirements and purposes of the grant program; and
16          ▸     creates the Rural Online Working Hubs Grant Advisory Committee to advise
17     GOED regarding the grant program.
18     Money Appropriated in this Bill:
19          This bill appropriates in fiscal year 2020:
20          ▸     to the Governor's Office of Economic Development -- Rural Coworking and
21     Innovation Center Grant Program, as an ongoing appropriation:
22               •     from the General Fund, $2,000,000.
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:

26     ENACTS:
27          63N-4-501, Utah Code Annotated 1953
28          63N-4-502, Utah Code Annotated 1953
29          63N-4-503, Utah Code Annotated 1953
30          63N-4-504, Utah Code Annotated 1953
31          63N-4-505, Utah Code Annotated 1953

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 63N-4-501 is enacted to read:
Part 5. Rural Coworking and Innovation Center Grant Program

36          63N-4-501. Title.
37          This part is known as the "Rural Coworking and Innovation Center Grant Program."
38          Section 2. Section 63N-4-502 is enacted to read:
39          63N-4-502. Definitions.
40          As used in this part:
41          (1) "Advisory committee" means the Rural Online Working Hubs Grant Advisory
42     Committee created in Section 63N-4-505.
43          (2) "Coworking and Innovation Center" means a facility designed to provide
44     individuals with the infrastructure and equipment to participate in the online workforce.
45          (3) "Entity" means a county, city, institution of higher education, or private company.
46          (4) "Grant" means a grant awarded as part of the Rural Coworking and Innovation
47     Center Grant Program created in Section 63N-4-503.
48          (5) "Grant program" means the Rural Coworking and Innovation Center Grant Program
49     created in Section 63N-4-503.
50          (6) "Rural area" means any area in any county in the state except Salt Lake, Utah,
51     Davis, Weber, Washington, Cache, Tooele, and Summit counties.
52          Section 3. Section 63N-4-503 is enacted to read:
53          63N-4-503. Creation and purpose of the Rural Coworking and Innovation Center
54     Grant Program.
55          (1) There is created the Rural Coworking and Innovation Center Grant Program
56     administered by the office.

57          (2) The office may seek to accomplish the following objectives in administering the
58     grant program:
59          (a) constructing or renovating a facility in one or more rural areas to create one or more
60     coworking and innovation centers;
61          (b) extending and improving utilities and broadband service connections to one or
62     more coworking and innovation centers in one or more rural areas; and
63          (c) purchasing equipment, furniture, and security systems as part of one or more
64     coworking and innovation centers in one or more rural areas.
65          Section 4. Section 63N-4-504 is enacted to read:
66          63N-4-504. Requirements for awarding a working hubs grant.
67          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
68     office shall make rules establishing the eligibility and reporting criteria for an entity to receive
69     a grant under this part, including:
70          (a) the form and process of submitting an application to the office for a grant;
71          (b) which entities are eligible to apply for a grant;
72          (c) the method and formula for determining grant amounts; and
73          (d) the reporting requirements of grant recipients.
74          (2) In determining the award of a grant, the office may prioritize projects:
75          (a) that will serve underprivileged or underserved communities, including communities
76     with high unemployment or low median incomes;
77          (b) where an applicant demonstrates comprehensive planning of the project but has
78     limited access to financial resources, including financial resources from local or county
79     government; and
80          (c) that maximize economic development opportunities in collaboration with the
81     economic development needs or plans of an educational institution, a county, and a
82     municipality.
83          (3) Subject to legislative appropriation, a grant may only be awarded by the executive
84     director after consultation with the advisory committee.
85          (4) A grant may only be awarded under this part:
86          (a) if the grant recipient agrees to provide any combination of funds, land, buildings, or
87     in-kind work in an amount equal to at least 25% of the grant;

88          (b) if the grant recipient agrees not to use grant money for the ongoing operation or
89     maintenance of a coworking and innovation center; and
90          (c) in an amount no more than $500,000 to a grant applicant.
91          Section 5. Section 63N-4-505 is enacted to read:
92          63N-4-505. Rural Online Working Hubs Grant Advisory Committee --
93     Membership -- Duties -- Expenses.
94          (1) There is created in the office the Rural Online Working Hubs Grant Advisory
95     Committee, composed of the following seven members:
96          (a) the executive director, or the executive director's designee;
97          (b) a member of the Senate, or a member of the House of Representatives, who
98     represents rural constituents, chosen by the president of the Senate;
99          (c) one member representing municipal government in a rural county, recommended by
100     the Utah League of Cities and Towns and appointed by the executive director;
101          (d) one member representing rural county government, recommended by the Utah
102     Association of Counties and appointed by the executive director;
103          (e) one member representing higher education, appointed by the executive director;
104          (f) one member representing the information technology sector, recommended by the
105     Utah Technology Council and appointed by the executive director; and
106          (g) one member representing the commercial real estate development community,
107     recommended by the Utah chapter of the Commercial Real Estate Development Association
108     and appointed by the executive director.
109          (2) The advisory committee shall advise and make recommendations to the office
110     regarding awarding grants under this part.
111          (3) (a) Except as required by Subsection (3)(b), as terms of advisory committee
112     members appointed by the executive director expire, the executive director shall appoint each
113     new member or reappointed member to a four-year term.
114          (b) Notwithstanding the requirements of Subsection (3)(a), the executive director shall,
115     at the time of appointment or reappointment, adjust the length of terms to ensure that the terms
116     of advisory committee members appointed by the executive director are staggered so that
117     approximately half of the appointed advisory committee members are appointed every two
118     years.

119          (4) The executive director, or the director's designee, shall serve as chair of the
120     advisory committee.
121          (5) The advisory committee shall elect annually a vice chair from the advisory
122     committee's members.
123          (6) When a vacancy occurs in the membership for any reason, the executive director
124     shall appoint the replacement for the unexpired term.
125          (7) A majority of the advisory committee constitutes a quorum for the purpose of
126     conducting advisory committee business and the action of a majority of a quorum constitutes
127     the action of the advisory committee.
128          (8) The office shall provide administrative staff support for the advisory committee.
129          (9) A member may not receive compensation or benefits for the member's service, but
130     a member, who is not a legislator, may receive per diem and travel expenses in accordance
131     with:
132          (a) Section 63A-3-106;
133          (b) Section 63A-3-107; and
134          (c) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
135     63A-3-107.
136          Section 6. Appropriation.
137          The following sums of money are appropriated for the fiscal year beginning July 1,
138     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
139     fiscal year 2020. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
140     Act, the Legislature appropriates the following sums of money from the funds or accounts
141     indicated for the use and support of the government of the state of Utah.
142     ITEM 1
143          To the Governor's Office of Economic Development -- Rural Coworking and      
144           Innovation Center Grant Program
145          From General Fund

146          Schedule of Programs:
147               Rural Coworking and Innovation Center Grant Program     $2,000,000