1     
BUSINESS INCENTIVES AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: Val L. Peterson

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Industrial Assistance Account.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies a sunset provision that is unnecessary if this bill passes;
13          ▸     modifies the application requirements and post-performance requirements for an
14     entity to receive a grant from the Industrial Assistance Account related to hosting a
15     high-tech sector conference; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          None
21     Utah Code Sections Affected:
22     AMENDS:
23          63I-2-263, as last amended by Laws of Utah 2018, Chapters 38, 95, 382, and 469
24          63N-3-109, as last amended by Laws of Utah 2018, Chapter 428
25     

26     Be it enacted by the Legislature of the state of Utah:
27          Section 1. Section 63I-2-263 is amended to read:
28          63I-2-263. Repeal dates, Title 63A to Title 63N.
29          (1) On July 1, 2020:
30          (a) Subsection 63A-3-403(5)(a)(i) is repealed; and
31          (b) in Subsection 63A-3-403(5)(a)(ii), the language that states "appointed on or after
32     May 8, 2018," is repealed.
33          (2) Title 63C, Chapter 19, Higher Education Strategic Planning Commission is
34     repealed July 1, 2020.
35          (3) Section 63H-7a-303 is repealed on July 1, 2022.
36          (4) On July 1, 2019:
37          (a) in Subsection 63J-1-206(2)(c)(i), the language that states " Subsection(2)(c)(ii) and"
38     is repealed; and
39          (b) Subsection 63J-1-206(2)(c)(ii) is repealed.
40          (5) Section 63J-4-708 is repealed January 1, 2023.
41          [(6) Subsection 63N-3-109(2)(f)(i)(B) is repealed July 1, 2020.]
42          [(7)] (6) Section 63N-3-110 is repealed July 1, 2020.
43          Section 2. Section 63N-3-109 is amended to read:
44          63N-3-109. Financial assistance to entities offering economic opportunities.
45          (1) Subject to the duties and powers of the board under Section 63N-1-402, the
46     administrator may provide money from the Industrial Assistance Account to an entity offering
47     an economic opportunity if that entity:
48          (a) applies to the administrator in a form approved by the administrator; and
49          (b) meets the qualifications of Subsection (2).
50          (2) [The] As part of an application for receiving money under this section, an applicant
51     shall:
52          (a) demonstrate to the satisfaction of the administrator the nature of the economic
53     opportunity and the related benefit to the economic well-being of the state by providing
54     evidence documenting the logical and compelling linkage, either direct or indirect, between the
55     expenditure of money necessitated by the economic opportunity and the likelihood that the
56     state's tax base, regions of the state's tax base, or specific components of the state's tax base
57     will not be reduced but will be maintained or enlarged;
58          (b) demonstrate how the funding request will act in concert with other state, federal, or
59     local agencies to achieve the economic benefit;
60          (c) demonstrate how the funding request will act in concert with free market principles;
61          [(d) in the case of an economic opportunity that includes the retention of jobs,
62     demonstrate how the potential relocation of jobs outside the state is related to a merger,
63     acquisition, consolidation, or similar business reason other than the applicant simply requesting
64     state assistance to remain in the state;]
65          [(e)] (d) satisfy other criteria the administrator considers appropriate;
66          [(f)] (e) if the applicant meets the requirements of Subsection [(2)(g)(i)(C)] (2)(f)(i):
67          (i) demonstrate that the funding request will be used primarily to reimburse the
68     applicant for expenses related to a program of [out-of-state advertising,] marketing[,] and
69     branding for an annual conference for the high tech sector with at least 10,000 attendees that is
70     held on or after January 1, 2019; and
71          (ii) [subject to Subsection (3)(c),] demonstrate that the annual conference described in
72     Subsection (2)(f)(i) met post-performance requirements designated by the administrator
73     regarding:
74          [(A) economic impact on the state;]
75          [(B) new tax revenue to the state; and]
76          [(C) attendance of out-of-state business prospects; and]
77          (A) business leads generated by the conference;
78          (B) total attendance at the conference;
79          (C) the number of out-of-state attendees at the conference;
80          (D) the number of out-of-state businesses represented at the conference; and
81          (E) documentation of marketing and advertising money spent outside of the state for
82     the conference; and
83          [(g)] (f) be either:
84          (i) an entity whose purpose is to exclusively or substantially promote, develop, or
85     maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
86     specific components of the state, including[: (A) an entity that is a sports development
87     organization under contract with the state for sports development and sporting event attraction
88     and related activities that provide an economic impact or promotional value to the state; (B) an
89     entity that implements technology innovation in public schools, including whole-school
90     one-to-one mobile device technology deployment for the purpose of incubating technology
91     solutions related to economic and workforce development; or (C)] an entity that is a nonprofit
92     organization engaged in publicizing, developing, and promoting the high tech sector in the state
93     through activities that include organizing and hosting an annual conference for the high tech
94     sector with at least 10,000 attendees; or
95          (ii) a company or individual that meets the requirements of Subsections (2)(a) through
96     [(f)] (d) but does not otherwise qualify under Section 63N-3-105.
97          (3) Subject to the duties and powers of the board under Section 63N-1-402, the
98     administrator shall:
99          (a) make findings as to whether an applicant has satisfied each of the conditions [set
100     forth] described in Subsection (2);
101          (b) establish benchmarks and timeframes in which progress toward the completion of
102     the agreed upon activity is to occur;
103          [(c) (i) if an applicant that meets the requirements of Subsection (2)(g)(i)(C) has not
104     received funding under this section in a previous year:]
105          [(A) require that the annual conference described in Subsection (2)(f)(i) be attended by
106     at least 100 out-of-state business prospects; and]
107          [(B) establish additional requirements as described in Subsection (2)(f)(ii); and]
108          [(ii) if an applicant that meets the requirements of Subsection (2)(g)(i)(C) received
109     funding under this section in a previous year, require that the annual conference described in
110     Subsection (2)(f)(i):]
111          [(A) have an economic impact on the state of at least 125% of the economic impact of
112     the annual conference in the previous year;]
113          [(B) generate new tax revenue to the state that is at least 125% of the new tax revenue
114     generated by the the annual conference in the previous year; and]
115          [(C) have attendance by out-of-state business prospects that is at least 125% of the
116     attendance by out-of-state business prospects at the annual conference in the previous year;]
117          [(d)] (c) monitor compliance by an applicant with any contract or agreement entered
118     into by the applicant and the state as provided by Section 63N-3-107; and
119          [(e)] (d) make funding decisions based upon appropriate findings and compliance.