1     
INDUSTRIAL ASSISTANCE ACCOUNT AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Jacob L. Anderegg

5     
House Sponsor: A. Cory Maloy

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions regarding the use of money from the Industrial Assistance
10     Account.
11     Highlighted Provisions:
12          This bill:
13          ▸     describes the requirements and post-performance requirements for an entity to
14     qualify for money from the Industrial Assistance Account related to holding an
15     annual conference or festival; 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          63N-3-109, as last amended by Laws of Utah 2019, Chapter 483
24     

25     Be it enacted by the Legislature of the state of Utah:
26          Section 1. Section 63N-3-109 is amended to read:
27          63N-3-109. Financial assistance to entities offering economic opportunities.
28          (1) Subject to the duties and powers of the board under Section 63N-1-402, the
29     administrator may provide money from the Industrial Assistance Account to an entity offering
30     an economic opportunity if that entity:
31          (a) applies to the administrator in a form approved by the administrator; and
32          (b) meets the qualifications of Subsection (2).
33          (2) As part of an application for receiving money under this section, an applicant shall:
34          (a) demonstrate to the satisfaction of the administrator the nature of the economic
35     opportunity and the related benefit to the economic well-being of the state by providing
36     evidence documenting the logical and compelling linkage, either direct or indirect, between the
37     expenditure of money necessitated by the economic opportunity and the likelihood that the
38     state's tax base, regions of the state's tax base, or specific components of the state's tax base
39     will not be reduced but will be maintained or enlarged;
40          (b) demonstrate how the funding request will act in concert with other state, federal, or
41     local agencies to achieve the economic benefit;
42          (c) demonstrate how the funding request will act in concert with free market principles;
43          (d) satisfy other criteria the administrator considers appropriate;
44          (e) if the applicant meets the requirements of Subsection (2)(f)(i):
45          (i) demonstrate that the funding request will be used primarily to reimburse [the] an
46     applicant for expenses related to a program of marketing and branding for an annual conference
47     [for the high tech sector] or festival with at least 10,000 attendees that is held on or after
48     January 1, 2019; and
49          (ii) demonstrate that [the] an annual conference or festival described in Subsection
50     (2)(f)(i) has met post-performance requirements designated by the administrator [regarding], in
51     coordination with the organizer of an annual conference or festival, which shall include metrics
52     and reporting requirements related to:
53          [(A) business leads generated by the conference;]
54          [(B) total attendance at the conference;]
55          [(C) the number of out-of-state attendees at the conference;]
56          [(D) the number of out-of-state businesses represented at the conference; and]
57          [(E) documentation of marketing and advertising money spent outside of the state for
58     the conference; and]
59          (A) attendance;
60          (B) revenue;
61          (C) expenses;
62          (D) economic impact to the state;
63          (E) sponsorships; and
64          (F) conference or festival objectives; and
65          (f) be either:
66          (i) an entity whose purpose is to exclusively or substantially promote, develop, or
67     maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
68     specific components of the state, including an entity [that is a nonprofit organization engaged
69     in publicizing, developing, and promoting the high tech sector in the state through activities
70     that include organizing and hosting] that hosts an annual conference [for the high tech sector]
71     or festival with at least 10,000 attendees; or
72          (ii) a company or individual that meets the requirements of Subsections (2)(a) through
73     (d) but does not otherwise qualify under Section 63N-3-105.
74          (3) Subject to the duties and powers of the board under Section 63N-1-402, the
75     administrator shall:
76          (a) make findings as to whether an applicant has satisfied each of the conditions
77     described in Subsection (2);
78          (b) establish benchmarks and timeframes in which progress toward the completion of
79     the agreed upon activity is to occur;
80          (c) monitor compliance by an applicant with any contract or agreement entered into by
81     the applicant and the state as provided by Section 63N-3-107; [and]
82          (d) make funding decisions based upon appropriate findings and compliance[.]; and
83          (e) in cooperation with each entity that has received money from the Industrial
84     Assistance Account in accordance with Subsection (2)(e), provide a written report on or before
85     October 1 of each year describing the total amount of money provided by the state for each
86     annual conference or festival during the year and the total cost from all sources of holding each
87     annual conference or festival during the year to the:
88          (i) office for inclusion in the office's annual report described in Section 63N-1-301; and
89          (ii) Economic Development and Workforce Services Interim Committee.