Representative Carl R. Albrecht proposes the following substitute bill:


1     
ECONOMIC DEVELOPMENT AMENDMENTS

2     
2020 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Scott D. Sandall

5     
House Sponsor: Carl R. Albrecht

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to economic development.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms, including "rural county";
13          ▸     creates the Rural County Grant Program (grant program);
14          ▸     describes the requirements for a rural county to apply for a grant under the grant
15     program;
16          ▸     requires each rural county that seeks to participate in the grant program to create a
17     County Economic Development Advisory Board (CED board) and describes the
18     membership and duties of a CED board;
19          ▸     describes the requirements of the Governor's Rural Partnership Board and the Office
20     of Rural Development in administering the grant program;
21          ▸     moves the provisions of the Recycling Market Development Zone Act from the
22     Governor's Office of Economic Development (GOED) to the Department of
23     Environmental Quality;
24          ▸     repeals provisions of the Utah Science Technology and Research Governing
25     Authority Act;

26          ▸     creates the Rural Speculative Industrial Building Program within GOED;
27          ▸     modifies provisions related to certain GOED administered economic development
28     programs;
29          ▸     repeals provisions related to certain GOED administered economic development
30     programs, which has the effect of ending those programs; and
31          ▸     makes technical changes.
32     Money Appropriated in this Bill:
33          This bill appropriates in fiscal year 2020:
34          ▸     to the General Fund, as a one-time appropriation:
35               •     from Nonlapsing Balances -- USTAR -- Support Programs, $1,436,200;
36          ▸     to the General Fund, as a one-time appropriation:
37               •     from Nonlapsing Balances -- USTAR -- Grant Programs, $1,765,200;
38          ▸     to the Utah Science Technology and Research Governing Authority -- USTAR
39     Administration, as a one-time appropriation:
40               •     from the General Fund, ($1,512,500); and
41          ▸     to the General Fund Restricted -- Workforce Development Restricted Account, as a
42     one-time appropriation:
43               •     from the General Fund, ($11,931,000).
44          This bill appropriates in fiscal year 2021:
45          ▸     To the Utah Science Technology and Research Governing Authority -- USTAR
46     Administration, as an ongoing appropriation:
47               •     from the General Fund, ($1,788,400);
48          ▸     To the Utah Science Technology and Research Governing Authority -- Support
49     Programs, as an ongoing appropriation:
50               •     from the General Fund, ($31,600);
51          ▸     to the General Fund Restricted -- Workforce Development Restricted Account, as
52     an ongoing appropriation:
53               •     from the General Fund, ($14,636,900);
54          ▸     to the Governor's Office of Economic Development -- Rural County Grant Program,
55     as an ongoing appropriation:
56               •     from the General Fund, $4,600,000;

57          ▸     To the Governor's Office of Economic Development -- Rural County Grants
58     Program, as a one-time appropriation:
59               •     from the General Fund, $3,400,000;
60          ▸     To the Governor's Office of Economic Development -- Rural Coworking and
61     Innovation Center Grant Program, as an ongoing appropriation:
62               •     from the General Fund, $250,000;
63          ▸     To the Governor's Office of Economic Development -- Rural Coworking and
64     Innovation Center Grant Program, as a one-time appropriation:
65               •     from the General Fund, $2,000,000;
66          ▸     To the Governor's Office of Economic Development -- Business Development --
67     Rural Speculative Industrial Building Program, as an ongoing appropriation:
68               •     from the General Fund, $250,000;
69          ▸     To the Governor's Office of Economic Development -- Pass-through, as an ongoing
70     appropriation:
71               •     from the General Fund, ($385,600); and
72               •     from Dedicated Credits Revenue, ($16,100); and
73          ▸     to the Governor's Office of Economic Development -- SBIR/STTR Center, as an
74     ongoing appropriation:
75               •     from the General Fund, $385,600; and
76               •     from Dedicated Credits Revenue, $16,100.
77     Other Special Clauses:
78          This bill provides retrospective operation.
79          This bill provides a special effective date.
80          This bill provides coordination clauses.
81     Utah Code Sections Affected:
82     AMENDS:
83          53B-17-1101, as enacted by Laws of Utah 2018, Chapter 453
84          53B-18-1601, as enacted by Laws of Utah 2018, Chapter 453
85          59-7-610, as last amended by Laws of Utah 2019, Chapter 247
86          59-10-1007, as last amended by Laws of Utah 2019, Chapter 247
87          63A-3-110, as last amended by Laws of Utah 2019, Chapter 211

88          63A-5-305, as last amended by Laws of Utah 2016, Chapter 240
89          63C-10-103, as last amended by Laws of Utah 2018, Chapter 204
90          63I-1-263, as last amended by Laws of Utah 2019, Chapters 89, 246, 311, 414, 468,
91     469, 482 and last amended by Coordination Clause, Laws of Utah 2019, Chapter
92     246
93          63J-1-602.2, as last amended by Laws of Utah 2019, Chapters 136, 326, 468, and 469
94          63N-1-501, as renumbered and amended by Laws of Utah 2015, Chapter 283
95          63N-2-203, as last amended by Laws of Utah 2017, Chapter 252
96          63N-2-204, as last amended by Laws of Utah 2016, Chapter 11
97          63N-2-208, as renumbered and amended by Laws of Utah 2015, Chapter 283
98          63N-2-213, as last amended by Laws of Utah 2019, Chapter 247
99          63N-4-104, as renumbered and amended by Laws of Utah 2015, Chapter 283
100          67-19-15, as last amended by Laws of Utah 2018, Chapters 39 and 415
101     ENACTS:
102          17-54-101, Utah Code Annotated 1953
103          17-54-102, Utah Code Annotated 1953
104          17-54-103, Utah Code Annotated 1953
105          17-54-104, Utah Code Annotated 1953
106          63N-4-701, Utah Code Annotated 1953
107          63N-4-702, Utah Code Annotated 1953
108          63N-4-703, Utah Code Annotated 1953
109          63N-4-704, Utah Code Annotated 1953
110     RENUMBERS AND AMENDS:
111          19-13-101, (Renumbered from 63N-2-401, as renumbered and amended by Laws of
112     Utah 2015, Chapter 283)
113          19-13-102, (Renumbered from 63N-2-402, as last amended by Laws of Utah 2015,
114     Chapter 30 and renumbered and amended by Laws of Utah 2015, Chapter 283)
115          19-13-103, (Renumbered from 63N-2-403, as renumbered and amended by Laws of
116     Utah 2015, Chapter 283)
117          19-13-104, (Renumbered from 63N-2-404, as renumbered and amended by Laws of
118     Utah 2015, Chapter 283)

119          19-13-105, (Renumbered from 63N-2-405, as renumbered and amended by Laws of
120     Utah 2015, Chapter 283)
121          19-13-106, (Renumbered from 63N-2-406, as renumbered and amended by Laws of
122     Utah 2015, Chapter 283)
123          19-13-107, (Renumbered from 63N-2-407, as renumbered and amended by Laws of
124     Utah 2015, Chapter 283)
125          19-13-108, (Renumbered from 63N-2-408, as renumbered and amended by Laws of
126     Utah 2015, Chapter 283)
127          19-13-109, (Renumbered from 63N-2-409, as renumbered and amended by Laws of
128     Utah 2015, Chapter 283)
129          19-13-110, (Renumbered from 63N-2-410, as renumbered and amended by Laws of
130     Utah 2015, Chapter 283)
131          19-13-111, (Renumbered from 63N-2-411, as renumbered and amended by Laws of
132     Utah 2015, Chapter 283)
133     REPEALS:
134          13-1-14, as last amended by Laws of Utah 2019, Chapter 352
135          59-7-614.11, as enacted by Laws of Utah 2017, Chapter 252
136          59-10-1039, as enacted by Laws of Utah 2017, Chapter 252
137          63M-2-101, as last amended by Laws of Utah 2015, Chapter 283
138          63M-2-102, as last amended by Laws of Utah 2019, Chapter 352
139          63M-2-301, as last amended by Laws of Utah 2019, Chapters 246 and 352
140          63M-2-302, as last amended by Laws of Utah 2019, Chapter 352
141          63M-2-302.5, as last amended by Laws of Utah 2019, Chapter 352
142          63M-2-304, as last amended by Laws of Utah 2019, Chapter 352
143          63M-2-501, as enacted by Laws of Utah 2016, Chapter 240
144          63M-2-502, as last amended by Laws of Utah 2019, Chapter 352
145          63M-2-503, as last amended by Laws of Utah 2019, Chapter 352
146          63M-2-504, as last amended by Laws of Utah 2019, Chapter 352
147          63M-2-601, as enacted by Laws of Utah 2016, Chapter 240
148          63M-2-602, as last amended by Laws of Utah 2018, Chapter 453
149          63M-2-701, as enacted by Laws of Utah 2016, Chapter 240

150          63M-2-703, as last amended by Laws of Utah 2019, Chapter 352
151          63M-2-801, as enacted by Laws of Utah 2016, Chapter 240
152          63M-2-802, as last amended by Laws of Utah 2019, Chapter 352
153          63M-2-803, as last amended by Laws of Utah 2019, Chapter 352
154          63N-2-213.5, as enacted by Laws of Utah 2017, Chapter 252
155          63N-3-104, as last amended by Laws of Utah 2019, Chapter 499
156          63N-3-104.5, as last amended by Laws of Utah 2019, Chapter 499
157     Utah Code Sections Affected by Coordination Clause:
158          59-7-610, as last amended by Laws of Utah 2019, Chapter 247
159          59-10-1007, as last amended by Laws of Utah 2019, Chapter 247
160          63I-1-263, as last amended by Laws of Utah 2019, Chapters 89, 246, 311, 414, 468,
161     469, 482 and last amended by Coordination Clause, Laws of Utah 2019, Chapter
162     246
163     

164     Be it enacted by the Legislature of the state of Utah:
165          Section 1. Section 17-54-101 is enacted to read:
166     
CHAPTER 54. RURAL COUNTY GRANT PROGRAM

167          17-54-101. Title.
168          This chapter is known as the "Rural County Grant Program."
169          Section 2. Section 17-54-102 is enacted to read:
170          17-54-102. Definitions.
171          (1) "CED board" means a County Economic Development Advisory Board as
172     described in Section 17-54-104.
173          (2) "Grant" means a grant available under the Rural County Grant Program created in
174     Section 17-54-103.
175          (3) "Grant program" means the Rural County Grant Program created in Section
176     17-54-103.
177          (4) "Office of Rural Development" means the Office of Rural Development created
178     within the Governor's Office of Economic Development in Section 63N-4-102.
179          (5) "Rural county" means a county of the third, fourth, fifth, or sixth class.
180          (6) "Rural partnership board" means the Governor's Rural Partnership Board created in

181     Section 63C-10-102.
182          Section 3. Section 17-54-103 is enacted to read:
183          17-54-103. Rural County Grant Program.
184          (1) There is created the Rural County Grant Program.
185          (2) The grant program shall be overseen by the rural partnership board and
186     administered by the Office of Rural Development.
187          (3) (a) In overseeing the grant program, the rural partnership board shall recommend
188     the awarding of grants to rural counties to address the economic development needs of rural
189     counties, in accordance with the provisions of this chapter, which needs may include:
190          (i) business recruitment, development, and expansion;
191          (ii) workforce training and development; and
192          (iii) infrastructure, industrial building development, and capital facilities improvements
193     for business development.
194          (b) After reviewing the recommendations of the rural partnership board, the executive
195     director of the Governor's Office of Economic Development shall award grants to rural
196     counties in accordance with the provisions of this chapter.
197          (4) Subject to appropriations from the Legislature and subject to the reporting and
198     other requirements of this chapter, grant money shall be distributed:
199          (a) equally between all rural counties that have created a CED board, in an amount up
200     to and including $200,000 annually per county; and
201          (b) for grant money that is available after $200,000 has been provided annually to each
202     eligible rural county, through the process described in Subsection (6).
203          (5) Beginning in 2021, a rural county may not receive an additional grant under this
204     chapter unless the rural county:
205          (a) demonstrates a funding match, which may include a funding match provided by any
206     combination of a community reinvestment agency, redevelopment agency, community
207     development and renewal agency, private-sector entity, nonprofit entity, federal matching
208     grant, county or municipality general fund match, or in-kind match, and that totals:
209          (i) a 10% match for a county of the sixth class;
210          (ii) a 20% match for a county of the fifth class;
211          (iii) a 30% match for a county of the fourth class; and

212          (iv) a 40% match for a county of the third class; and
213          (b) has complied with the reporting requirements required by the rural partnership
214     board and the reporting requirements described in Subsection (9) for all previous years that the
215     county has received a grant.
216          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
217     Office of Rural Development in collaboration with the rural partnership board shall make rules
218     establishing the eligibility and reporting criteria for a rural county to receive grant money under
219     Subsection (4)(b), including:
220          (a) the form and process for a county to submit an application to the rural partnership
221     board for a grant;
222          (b) the method of scoring and prioritizing grant program applications from rural
223     counties;
224          (c) the reporting, auditing, and post-performance requirements for a rural county that
225     receives grant money; and
226          (d) any deadlines that shall be met by a rural county when applying for a grant.
227          (7) In determining the award of grant money under Subsection (4)(b), the rural
228     partnership board may not recommend the awarding of more than $800,000 annually to a rural
229     county.
230          (8) In determining the recommended award of grant money under Subsection (4)(b),
231     the rural partnership board may prioritize applications that demonstrate any combination of the
232     following:
233          (a) that the county has or is actively pursuing the creation of an effective strategic
234     economic development plan;
235          (b) consistency with local economic development priorities;
236          (c) economic need;
237          (d) utilization of local financial or in-kind resources in combination with a grant;
238          (e) evidence that jobs will be created; and
239          (f) evidence that there will be a positive return on investment.
240          (9) On or before September 1 of each year, a county that has received a grant under this
241     chapter in the previous 12 months shall provide a written report to the rural partnership board
242     that describes:

243          (a) the amount of grant money the county has received;
244          (b) how grant money has been distributed by the county, including what companies or
245     entities have utilized grant money, how much grant money each company or entity has
246     received, and how each company or entity has used the money;
247          (c) an evaluation of the effectiveness of awarded grants in improving economic
248     development in the county, including the number of jobs created, infrastructure that has been
249     created, and capital improvements in the county;
250          (d) how much matching money has been utilized by the county and what entities have
251     provided the matching money; and
252          (e) any other reporting, auditing, or post-performance requirements established by the
253     Office of Rural Development in collaboration with the rural partnership board under
254     Subsection (6).
255          (10) The Office of Rural Development shall compile the reported information and
256     provide a written report to the Governor's Office of Economic Development for inclusion in the
257     Governor's Office of Economic Development's annual written report described in Section
258     63N-1-301.
259          Section 4. Section 17-54-104 is enacted to read:
260          17-54-104. County Economic Development Advisory Board.
261          (1) (a) Each rural county that seeks to obtain a grant under this chapter, shall create a
262     CED board composed of at least the following members appointed by the county legislative
263     body:
264          (i) a county representative;
265          (ii) a representative of a municipality in the county;
266          (iii) a workforce development representative;
267          (iv) a private-sector representative; and
268          (v) a member of the public who lives in the county.
269          (b) The county legislative body may also appoint additional members with experience
270     or expertise in economic development matters.
271          (c) In appointing members of the CED board, the county legislative body may consider
272     gender and socioeconomic diversity.
273          (2) Each CED board shall assist and advise the county legislative body on:

274          (a) applying for a grant under this chapter;
275          (b) what projects should be funded by grant money provided to a rural county under
276     this chapter; and
277          (c) preparing reporting requirements for grant money received by a rural county under
278     this chapter.
279          Section 5. Section 19-13-101, which is renumbered from Section 63N-2-401 is
280     renumbered and amended to read:
281     
CHAPTER 13. RECYCLING MARKET DEVELOPMENT ZONE ACT

282          [63N-2-401].      19-13-101. Title.
283          This part is known as the "Recycling Market Development Zone Act."
284          Section 6. Section 19-13-102, which is renumbered from Section 63N-2-402 is
285     renumbered and amended to read:
286          [63N-2-402].      19-13-102. Definitions.
287          As used in this part:
288          (1) "Composting" means the controlled decay of landscape waste or sewage sludge and
289     organic industrial waste, or a mixture of these, by the action of bacteria, fungi, molds, and other
290     organisms.
291          (2) "Postconsumer waste material" means any product generated by a business or
292     consumer that has served its intended end use, and that has been separated from solid waste for
293     the purposes of collection, recycling, and disposition and that does not include secondary waste
294     material.
295          (3) (a) "Recovered materials" means waste materials and by-products that have been
296     recovered or diverted from solid waste.
297          (b) "Recovered materials" does not include those materials and by-products generated
298     from, and commonly reused within, an original manufacturing process.
299          (4) (a) "Recycling" means the diversion of materials from the solid waste stream and
300     the beneficial use of the materials and includes a series of activities by which materials that
301     would become or otherwise remain waste are diverted from the waste stream for collection,
302     separation, and processing, and are used as raw materials or feedstocks in lieu of or in addition
303     to virgin materials in the manufacture of goods sold or distributed in commerce or the reuse of
304     the materials as substitutes for goods made from virgin materials.

305          (b) "Recycling" does not include burning municipal solid waste for energy recovery.
306          (5) "Recycling market development zone" or "zone" means an area designated by the
307     office as meeting the requirements of this part.
308          (6) (a) "Secondary waste material" means industrial by-products that go to disposal
309     facilities and waste generated after completion of a manufacturing process.
310          (b) "Secondary waste material" does not include internally generated scrap commonly
311     returned to industrial or manufacturing processes, such as home scrap and mill broke.
312          (7) "Tax incentive" means a nonrefundable tax credit available under Section 59-7-610
313     or 59-10-1007.
314          Section 7. Section 19-13-103, which is renumbered from Section 63N-2-403 is
315     renumbered and amended to read:
316          [63N-2-403].      19-13-103. Duties of the department.
317          The [office] department shall:
318          (1) facilitate recycling development zones through state support of county incentives
319     [which] that encourage development of manufacturing enterprises that use recycling materials
320     currently collected;
321          (2) evaluate an application from a county or municipality executive authority to be
322     designated as a recycling market development zone and determine if the county or municipality
323     qualifies for that designation;
324          (3) provide technical assistance to municipalities and counties in developing
325     applications for designation as a recycling market development zone;
326          (4) assist counties and municipalities designated as recycling market development
327     zones in obtaining assistance from the federal government and agencies of the state;
328          (5) assist a qualified business in obtaining the benefits of an incentive or inducement
329     program authorized by this part; and
330          (6) monitor the implementation and operation of this part and conduct a continuing
331     evaluation of the progress made in the recycling market development zone[; and].
332          [(7) include in the annual written report described in Section 63N-2-301, an evaluation
333     of the effectiveness of the program and recommendations for legislation.]
334          Section 8. Section 19-13-104, which is renumbered from Section 63N-2-404 is
335     renumbered and amended to read:

336          [63N-2-404].      19-13-104. Criteria for recycling market development zone --
337     Application process and fees.
338          (1) An area may be designated as a recycling market development zone only if:
339          (a) the county or municipality agrees to make a qualifying local contribution under
340     Section [63N-2-405] 19-13-105; and
341          (b) the county or municipality provides for postconsumer waste collection for recycling
342     within the county or municipality.
343          (2) The executive authority of any municipality or county desiring to be designated as a
344     recycling market development zone shall:
345          (a) obtain the written approval of the municipality or county's legislative body; and
346          (b) file an application with the [office] department demonstrating the county or
347     municipality meets the requirements of this part.
348          (3) The application shall be in a form prescribed by the [office] department, and shall
349     include:
350          (a) a plan developed by the county or municipality that identifies local contributions
351     meeting the requirements of Section [63N-2-405] 19-13-105;
352          (b) a county or municipality development plan that outlines:
353          (i) the specific investment or development reasonably expected to take place;
354          (ii) any commitments obtained from businesses to participate, and in what capacities
355     regarding recycling markets;
356          (iii) the county's or municipality's economic development plan and demonstration of
357     coordination between the zone and the county or municipality in overall development goals;
358          (iv) zoning requirements demonstrating that sufficient portions of the proposed zone
359     area are zoned as appropriate for the development of commercial, industrial, or manufacturing
360     businesses;
361          (v) the county's or municipality's long-term waste management plan and evidence that
362     the zone will be adequately served by the plan; and
363          (vi) the county or municipality postconsumer waste collection infrastructure;
364          (c) the county's or municipality's proposed means of assessing the effectiveness of the
365     development plan or other programs implemented within the zone;
366          (d) state whether within the zone either of the following will be established:

367          (i) commercial manufacturing or industrial processes that will produce end products
368     that consist of not less than 50% recovered materials, of which not less than 25% is
369     postconsumer waste material; or
370          (ii) commercial composting;
371          (e) any additional information required by the [office] department; and
372          (f) any additional information the county or municipality considers relevant to its
373     designation as a recycling market development zone.
374          (4) A county or municipality applying for designation as a recycling market
375     development zone shall pay to the [office] department an application fee determined under
376     Section 63J-1-504.
377          Section 9. Section 19-13-105, which is renumbered from Section 63N-2-405 is
378     renumbered and amended to read:
379          [63N-2-405].      19-13-105. Qualifying local contributions.
380          Qualifying local contributions to the recycling market development zone may vary
381     depending on available resources, and may include:
382          (1) simplified procedures for obtaining permits;
383          (2) dedication of available government grants;
384          (3) waiver of business license or permit fees;
385          (4) infrastructure improvements;
386          (5) private contributions;
387          (6) utility rate concessions;
388          (7) suspension or relaxation of locally originated zoning laws or general plans; and
389          (8) other proposed local contributions as the [office] department finds promote the
390     purposes of this part.
391          Section 10. Section 19-13-106, which is renumbered from Section 63N-2-406 is
392     renumbered and amended to read:
393          [63N-2-406].      19-13-106. Eligibility review.
394          (1) The [office] department shall:
395          (a) review and evaluate an application submitted under Section [63N-2-404]
396     19-13-104; and
397          (b) determine whether the municipality or county is eligible for designation as a

398     recycling market development zone.
399          (2) In designating recycling market development zones, the [office] department shall
400     consider:
401          (a) whether the current waste management practices and conditions of the county or
402     municipality are favorable to the development of postconsumer waste material markets;
403          (b) whether the creation of the zone is necessary to assist in attracting private sector
404     recycling investments to the area; and
405          (c) the amount of available landfill capacity to serve the zone.
406          Section 11. Section 19-13-107, which is renumbered from Section 63N-2-407 is
407     renumbered and amended to read:
408          [63N-2-407].      19-13-107. Quarterly consideration.
409          The [office] department shall take action quarterly on any application requesting
410     designation as a recycling market development zone.
411          Section 12. Section 19-13-108, which is renumbered from Section 63N-2-408 is
412     renumbered and amended to read:
413          [63N-2-408].      19-13-108. Duration of designation.
414          A recycling market development zone designation ends five years from the date the
415     [office] department designates the area as a recycling market development zone, at the end of
416     which the county or municipality may reapply for the designation.
417          Section 13. Section 19-13-109, which is renumbered from Section 63N-2-409 is
418     renumbered and amended to read:
419          [63N-2-409].      19-13-109. Revocation of designations.
420          (1) The [office] department may revoke the designation of a recycling market
421     development zone if no businesses utilize the tax incentives during any calendar year.
422          (2) Before revocation of the zone, the [office] department shall conduct a public
423     hearing within a reasonable distance of the zone to determine reasons for inactivity and explore
424     possible alternative actions.
425          Section 14. Section 19-13-110, which is renumbered from Section 63N-2-410 is
426     renumbered and amended to read:
427          [63N-2-410].      19-13-110. Recycling market development zone credit.
428          For a taxpayer within a recycling market development zone, there are allowed the

429     nonrefundable credits against tax as provided by Sections 59-7-610 and 59-10-1007.
430          Section 15. Section 19-13-111, which is renumbered from Section 63N-2-411 is
431     renumbered and amended to read:
432          [63N-2-411].      19-13-111. Annual report.
433          (1) A county or municipality designated as a recycling market development zone shall
434     report by no later than July 31 of each year to the [office] department regarding the economic
435     activity that has occurred in the zone following the designation.
436          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
437     [office] department may make rules providing for the form and content of the annual reports.
438          Section 16. Section 53B-17-1101 is amended to read:
439          53B-17-1101. Definitions.
440          As used in this part:
441          (1) "Researcher" means an individual who:
442          (a) on May 8, 2018, is employed, alone or as part of a research team, by the university;
443          (b) before May 8, 2018, received funding from USTAR for some or all of the
444     researcher's startup costs or salary;
445          (c) was recruited to become a member of the university's faculty; and
446          (d) after May 8, 2018, receives some or all of the researcher's start up costs or salary
447     from a legislative appropriation to the university for that purpose.
448          (2) "University" means the University of Utah.
449          (3) "USTAR" means the Utah Science Technology and Research Initiative [created in
450     Section 63M-2-301], which was repealed in 2020.
451          Section 17. Section 53B-18-1601 is amended to read:
452          53B-18-1601. Definitions.
453          As used in this part:
454          (1) "Researcher" means an individual who:
455          (a) on May 8, 2018, is employed, alone or as part of a research team, by the university;
456          (b) before May 8, 2018, received funding from USTAR for some or all of the
457     researcher's startup costs or salary;
458          (c) was recruited to become a member of the university's faculty; and
459          (d) after May 8, 2018, receives some or all of the researcher's start up costs or salary

460     from a legislative appropriation to the university for that purpose.
461          (2) "University" means Utah State University.
462          (3) "USTAR" means the Utah Science Technology and Research Initiative [created in
463     Section 63M-2-301], which was repealed in 2020.
464          Section 18. Section 59-7-610 is amended to read:
465          59-7-610. Recycling market development zones tax credits.
466          (1) Subject to other provisions of this section, a taxpayer that is a business operating in
467     a recycling market development zone as defined in Section [63N-2-402] 19-13-102 may claim
468     the following nonrefundable tax credits:
469          (a) a tax credit of 5% of the purchase price paid for machinery and equipment used
470     directly in:
471          (i) commercial composting; or
472          (ii) manufacturing facilities or plant units that:
473          (A) manufacture, process, compound, or produce recycled items of tangible personal
474     property for sale; or
475          (B) reduce or reuse postconsumer waste material; and
476          (b) a tax credit equal to the lesser of:
477          (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
478     inventory, and utilities made by the taxpayer for establishing and operating recycling or
479     composting technology in [Utah] the state; and
480          (ii) $2,000.
481          (2) (a) To claim a tax credit described in Subsection (1), the taxpayer shall receive
482     from the [Governor's Office of Economic Development] Department of Environmental Quality
483     a written certification, on a form approved by the commission, that includes:
484          (i) a statement that the taxpayer is operating a business within the boundaries of a
485     recycling market development zone;
486          (ii) for [claims] a claim of the tax credit described in Subsection (1)(a):
487          (A) the type of the machinery and equipment that the taxpayer purchased;
488          (B) the date that the taxpayer purchased the machinery and equipment;
489          (C) the purchase price for the machinery and equipment;
490          (D) the total purchase price for all machinery and equipment for which the taxpayer is

491     claiming a tax credit;
492          (E) a statement that the machinery and equipment are integral to the composting or
493     recycling process; and
494          (F) the amount of the taxpayer's tax credit; and
495          (iii) for [claims] a claim of the tax credit described in Subsection (1)(b):
496          (A) the type of net expenditure that the taxpayer made to a third party;
497          (B) the date that the taxpayer made the payment to a third party;
498          (C) the amount that the taxpayer paid to each third party;
499          (D) the total amount that the taxpayer paid to all third parties;
500          (E) a statement that the net expenditures support the establishment and operation of
501     recycling or composting technology in [Utah] the state; and
502          (F) the amount of the taxpayer's tax credit.
503          (b) (i) The [Governor's Office of Economic Development] Department of
504     Environmental Quality shall provide a taxpayer seeking to claim a tax credit under Subsection
505     (1) with a copy of the written certification.
506          (ii) The taxpayer shall retain a copy of the written certification for the same period of
507     time that a person is required to keep books and records under Section 59-1-1406.
508          (c) The [Governor's Office of Economic Development] Department of Environmental
509     Quality shall submit to the commission an electronic list that includes:
510          (i) the name and identifying information of each taxpayer to which the [office]
511     Department of Environmental Quality issues a written certification; and
512          (ii) for each taxpayer, the amount of each tax credit listed on the written certification.
513          (3) A taxpayer may not claim a tax credit under Subsection (1)(a), Subsection (1)(b), or
514     both that exceeds 40% of the taxpayer's state income tax liability as the tax liability is
515     calculated:
516          (a) for the taxable year in which the taxpayer made the purchases or payments;
517          (b) before any other tax credits the taxpayer may claim for the taxable year; and
518          (c) before the taxpayer [claiming] claims a tax credit authorized by this section.
519          (4) The commission shall make rules governing what information a taxpayer shall file
520     with the commission to verify the entitlement to and amount of a tax credit.
521          (5) Except as provided in Subsections (6) through (8), a taxpayer may carry forward, to

522     the next three taxable years, the amount of [the tax credit that exceeds the taxpayer's income
523     tax liability] a tax credit described in Subsection (1)(a) that the taxpayer does not use for the
524     taxable year.
525          (6) A taxpayer may not claim or carry forward a tax credit described in Subsection
526     (1)(a) in a taxable year during which the taxpayer claims or carries forward a tax credit under
527     Section 63N-2-213.
528          (7) A taxpayer may not claim [or carry forward] a tax credit described in Subsection
529     (1)(b) in a taxable year during which the taxpayer claims or carries forward a tax credit under
530     Section 63N-2-213.
531          (8) A taxpayer may not claim or carry forward a tax credit under this section for a
532     taxable year during which the taxpayer claims the targeted business income tax credit under
533     Section 59-7-624.
534          Section 19. Section 59-10-1007 is amended to read:
535          59-10-1007. Recycling market development zones tax credits.
536          (1) Subject to other provisions of this section, a claimant, estate, or trust in a recycling
537     market development zone as defined in Section [63N-2-402] 19-13-102 may claim the
538     following nonrefundable tax credits:
539          (a) a tax credit of 5% of the purchase price paid for machinery and equipment used
540     directly in:
541          (i) commercial composting; or
542          (ii) manufacturing facilities or plant units that:
543          (A) manufacture, process, compound, or produce recycled items of tangible personal
544     property for sale; or
545          (B) reduce or reuse postconsumer waste material; and
546          (b) a tax credit equal to the lesser of:
547          (i) 20% of net expenditures to third parties for rent, wages, supplies, tools, test
548     inventory, and utilities made by the claimant, estate, or trust for establishing and operating
549     recycling or composting technology in [Utah] the state; and
550          (ii) $2,000.
551          (2) (a) To claim a tax credit described in Subsection (1), the claimant, estate, or trust
552     shall receive from the [Governor's Office of Economic Development] Department of

553     Environmental Quality a written certification, on a form approved by the commission, that
554     includes:
555          (i) a statement that the claimant, estate, or trust is operating within the boundaries of a
556     recycling market development zone;
557          (ii) for [claims] a claim of the tax credit described in Subsection (1)(a):
558          (A) the type of the machinery and equipment that the claimant, estate, or trust
559     purchased;
560          (B) the date that the claimant, estate, or trust purchased the machinery and equipment;
561          (C) the purchase price for the machinery and equipment;
562          (D) the total purchase price for all machinery and equipment for which the claimant,
563     estate, or trust is claiming a tax credit;
564          (E) the amount of the claimant's, estate's, or trust's tax credit; and
565          (F) a statement that the machinery and equipment are integral to the composting or
566     recycling process; and
567          (iii) for [claims] a claim of the tax credit described in Subsection (1)(b):
568          (A) the type of net expenditure that the claimant, estate, or trust made to a third party;
569          (B) the date that the claimant, estate, or trust made the payment to a third party;
570          (C) the amount that the claimant, estate, or trust paid to each third party;
571          (D) the total amount that the claimant, estate, or trust paid to all third parties;
572          (E) a statement that the net expenditures support the establishment and operation of
573     recycling or composting technology in [Utah] the state; and
574          (F) the amount of the claimant's, estate's, or trust's tax credit.
575          (b) (i) The [Governor's Office of Economic Development] Department of
576     Environmental Quality shall provide a claimant, estate, or trust seeking to claim a tax credit
577     under Subsection (1) with a copy of the written certification.
578          (ii) The claimant, estate, or trust shall retain a copy of the written certification for the
579     same period of time that a person is required to keep books and records under Section
580     59-1-1406.
581          (c) The [Governor's Office of Economic Development] Department of Environmental
582     Quality shall submit to the commission an electronic list that includes:
583          (i) the name and identifying information of each claimant, estate, or trust to which the

584     [office] Department of Environmental Quality issues a written certification; and
585          (ii) for each claimant, estate, or trust, the amount of each tax credit listed on the written
586     certification.
587          (3) A claimant, estate, or trust may not claim a tax credit under Subsection (1)(a),
588     Subsection (1)(b), or both that exceeds 40% of the claimant's, estate's, or trust's state income
589     tax liability as the tax liability is calculated:
590          (a) for the taxable year in which the claimant, estate, or trust made the purchases or
591     payments;
592          (b) before any other tax credits the claimant, estate, or trust may claim for the taxable
593     year; and
594          (c) before the claimant, estate, or trust [claiming] claims a tax credit authorized by this
595     section.
596          (4) The commission shall make rules governing what information a claimant, estate, or
597     trust shall file with the commission to verify the entitlement to and amount of a tax credit.
598          (5) Except as provided in Subsections (6) through (8), a claimant, estate, or trust may
599     carry forward, to the next three taxable years, the amount of [the tax credit that exceeds the
600     taxpayer's income tax liability] a tax credit described in Subsection (1)(a) that the claimant,
601     estate, or trust does not use for the taxable year.
602          (6) A claimant, estate, or trust may not claim or carry forward a tax credit described in
603     Subsection (1)(a) in a taxable year during which the claimant, estate, or trust claims or carries
604     forward a tax credit under Section 63N-2-213.
605          (7) A claimant, estate, or trust may not claim a tax credit described in Subsection (1)(b)
606     in a taxable year during which the claimant, estate, or trust claims or carries forward a tax
607     credit under Section 63N-2-213.
608          (8) A claimant, estate, or trust may not claim or carry forward a tax credit [available]
609     under this section for a taxable year during which the claimant, estate, or trust claims the
610     targeted business income tax credit under Section 59-10-1112.
611          Section 20. Section 63A-3-110 is amended to read:
612          63A-3-110. Personal use expenditures for state officers and employees.
613          (1) As used in this section:
614          (a) "Employee" means a person who is not an elected or appointed officer and who is

615     employed on a full- or part-time basis by a governmental entity.
616          (b) "Governmental entity" means:
617          (i) an executive branch agency of the state, the offices of the governor, lieutenant
618     governor, state auditor, attorney general, and state treasurer, the State Board of Education, and
619     the State Board of Regents;
620          (ii) the Office of the Legislative Auditor General, the Office of the Legislative Fiscal
621     Analyst, the Office of Legislative Research and General Counsel, the Legislature, and
622     legislative committees;
623          (iii) courts, the Judicial Council, the Administrative Office of the Courts, and similar
624     administrative units in the judicial branch; or
625          (iv) independent state entities created under Title 63H, Independent State Entities[; or].
626          [(v) the Utah Science Technology and Research Governing Authority created under
627     Section 63M-2-301.]
628          (c) "Officer" means a person who is elected or appointed to an office or position within
629     a governmental entity.
630          (d) (i) "Personal use expenditure" means an expenditure made without the authority of
631     law that:
632          (A) is not directly related to the performance of an activity as a state officer or
633     employee;
634          (B) primarily furthers a personal interest of a state officer or employee or a state
635     officer's or employee's family, friend, or associate; and
636          (C) would constitute taxable income under federal law.
637          (ii) "Personal use expenditure" does not include:
638          (A) a de minimis or incidental expenditure; or
639          (B) a state vehicle or a monthly stipend for a vehicle that an officer or employee uses to
640     travel to and from the officer or employee's official duties, including a minimal allowance for a
641     detour as provided by the state.
642          (e) "Public funds" means the same as that term is defined in Section 51-7-3.
643          (2) A state officer or employee may not:
644          (a) use public funds for a personal use expenditure; or
645          (b) incur indebtedness or liability on behalf of, or payable by, a governmental entity for

646     a personal use expenditure.
647          (3) If the Division of Finance or the responsible governmental entity determines that a
648     state officer or employee has intentionally made a personal use expenditure in violation of
649     Subsection (2), the governmental entity shall:
650          (a) require the state officer or employee to deposit the amount of the personal use
651     expenditure into the fund or account from which:
652          (i) the personal use expenditure was disbursed; or
653          (ii) payment for the indebtedness or liability for a personal use expenditure was
654     disbursed;
655          (b) require the state officer or employee to remit an administrative penalty in an
656     amount equal to 50% of the personal use expenditure to the Division of Finance; and
657          (c) deposit the money received under Subsection (3)(b) into the General Fund.
658          (4) (a) Any state officer or employee who has been found by a governmental entity to
659     have made a personal use expenditure in violation of Subsection (2) may appeal the finding of
660     the governmental entity.
661          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
662     Division of Finance shall make rules regarding an appeal process for an appeal made under
663     Subsection (4)(a), including the designation of an appeal authority.
664          (5) (a) Subject to Subsection (5)(b), the Division of Finance may withhold all or a
665     portion of the wages of a state officer or employee who has violated Subsection (2) until the
666     requirements of Subsection (3) have been met.
667          (b) If the state officer or employee has requested an appeal under Subsection (4), the
668     Division of Finance may only withhold the wages of the officer or employee after the appeal
669     authority described in Subsection (4)(b) has confirmed that the officer or employee violated
670     Subsection (2).
671          (6) Nothing in this chapter immunizes a state officer or employee from or precludes
672     any criminal prosecution or civil or employment action for an unlawful personal use
673     expenditure.
674          (7) A state officer or employee who is convicted of misusing public money or public
675     property under Section 76-8-402 may not disburse public funds or access public accounts.
676          Section 21. Section 63A-5-305 is amended to read:

677          63A-5-305. Leasing by higher education institutions.
678          (1) The Board of Regents shall establish written policies and procedures governing
679     leasing by higher education institutions.
680          (2) Except as provided in [Sections] Section 53B-2a-113 [and 63M-2-602], a higher
681     education institution shall comply with the procedures and requirements of the Board of
682     Regents' policies before signing or renewing a lease.
683          Section 22. Section 63C-10-103 is amended to read:
684          63C-10-103. Duties.
685          (1) The board shall:
686          (a) serve as an advisory board to:
687          (i) the governor on rural economic and planning issues; and
688          (ii) the Governor's Office of Economic Development on rural economic development
689     issues;
690          (b) prepare an annual strategic plan that:
691          (i) identifies rural economic development, planning, and leadership training challenges,
692     opportunities, priorities, and objectives; and
693          (ii) includes a work plan for accomplishing the objectives referred to in Subsection
694     (1)(b)(i);
695          (c) identify local, regional, and statewide rural economic development and planning
696     priorities;
697          (d) study and take input on issues relating to local, regional, and statewide rural
698     economic development, including challenges, opportunities, best practices, policy, planning,
699     and collaboration;
700          (e) advocate for rural needs, programs, policies, opportunities, and other issues relating
701     to rural economic development and planning;
702          (f) oversee the Rural County Grant Program created in Section 17-54-103; and
703          [(f) review projects in enterprise zones proposed by nonprofit corporations
704     headquartered in enterprise zones as described in Subsection 63N-2-213.5(6);]
705          [(g) review applications for cash awards, grants, loans, or other financial assistance
706     under:]
707          [(i) the Rural Fast Track Program described in Section 63N-3-104; and]

708          [(ii) the Business Expansion and Retention Initiative described in Section
709     63N-3-104.5; and]
710          [(h)] (g) no later than October 1 of each year, submit to the governor, the Legislature,
711     and the Economic Development and Workforce Services Interim Committee an annual report,
712     in accordance with Section 68-3-14, that provides:
713          (i) an overview of the rural economy in the state;
714          (ii) a summary of current issues and policy matters relating to rural economic
715     development; and
716          (iii) a statement of the board's initiatives, programs, and economic development
717     priorities.
718          (2) The board may engage in activities necessary to fulfill the board's duties, including:
719          (a) propose or support rural economic development legislation; and
720          (b) create one or more subcommittees.
721          Section 23. Section 63I-1-263 is amended to read:
722          63I-1-263. Repeal dates, Titles 63A to 63N.
723          (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
724          (a) Subsection 63A-1-201(1) is repealed;
725          (b) Subsection 63A-1-202(2)(c), the language that states "using criteria established by
726     the board" is repealed;
727          (c) Section 63A-1-203 is repealed;
728          (d) Subsections 63A-1-204(1) and (2), the language that states "After consultation with
729     the board, and" is repealed; and
730          (e) Subsection 63A-1-204(1)(b), the language that states "using the standards provided
731     in Subsection 63A-1-203(3)(c)" is repealed.
732          (2) Subsection 63A-5-228(2)(h), relating to prioritizing and allocating capital
733     improvement funding, is repealed [on] July 1, 2024.
734          (3) Section 63A-5-603, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
735          (4) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
736     1, 2028.
737          (5) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
738     2025.

739          (6) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
740     2020.
741          (7) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
742     repealed July 1, 2021.
743          (8) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
744     2023.
745          (9) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
746     2025.
747          (10) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
748     2020.
749          (11) In relation to the State Fair Corporation Board of Directors, on January 1, 2025:
750          (a) Subsection 63H-6-104(2)(c), related to a Senate appointment, is repealed;
751          (b) Subsection 63H-6-104(2)(d), related to a House appointment, is repealed;
752          (c) in Subsection 63H-6-104(2)(e), the language that states ", of whom only one may
753     be a legislator, in accordance with Subsection (3)(e)," is repealed;
754          (d) Subsection 63H-6-104(3)(a)(i) is amended to read:
755          "(3)(a)(i) Except as provided in Subsection (3)(a)(ii), a board member appointed under
756     Subsection (2)(e) or (f) shall serve a term that expires on the December 1 four years after the
757     year that the board member was appointed.";
758          (e) in Subsections 63H-6-104(3)(a)(ii), (c)(ii), and (d), the language that states "the
759     president of the Senate, the speaker of the House, the governor," is repealed and replaced with
760     "the governor"; and
761          (f) Subsection 63H-6-104(3)(e), related to limits on the number of legislators, is
762     repealed.
763          (12) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
764          (13) Section 63M-7-212 is repealed [on] December 31, 2019.
765          (14) On July 1, 2025:
766          (a) in Subsection 17-27a-404(3)(c)(ii), the language that states "the Resource
767     Development Coordinating Committee," is repealed;
768          (b) Subsection 23-14-21(2)(c) is amended to read "(c) provide notification of proposed
769     sites for the transplant of species to local government officials having jurisdiction over areas

770     that may be affected by a transplant.";
771          (c) in Subsection 23-14-21(3), the language that states "and the Resource Development
772     Coordinating Committee" is repealed;
773          (d) in Subsection 23-21-2.3(1), the language that states "the Resource Development
774     Coordinating Committee created in Section 63J-4-501 and" is repealed;
775          (e) in Subsection 23-21-2.3(2), the language that states "the Resource Development
776     Coordinating Committee and" is repealed;
777          (f) Subsection 63J-4-102(1) is repealed and the remaining subsections are renumbered
778     accordingly;
779          (g) Subsections 63J-4-401(5)(a) and (c) are repealed;
780          (h) Subsection 63J-4-401(5)(b) is renumbered to Subsection 63J-4-401(5)(a) and the
781     word "and" is inserted immediately after the semicolon;
782          (i) Subsection 63J-4-401(5)(d) is renumbered to Subsection 63J-4-401(5)(b);
783          (j) Sections 63J-4-501, 63J-4-502, 63J-4-503, 63J-4-504, and 63J-4-505 are repealed;
784     and
785          (k) Subsection 63J-4-603(1)(e)(iv) is repealed and the remaining subsections are
786     renumbered accordingly.
787          (15) Subsection 63J-1-602.1(13), Nurse Home Visiting Restricted Account is repealed
788     July 1, 2026.
789          (16) Subsection 63J-1-602.2(4), referring to dedicated credits to the Utah Marriage
790     Commission, is repealed July 1, 2023.
791          (17) Subsection 63J-1-602.2(5), referring to the Trip Reduction Program, is repealed
792     July 1, 2022.
793          (18) (a) Subsection 63J-1-602.1[(53)](55), relating to the Utah Statewide Radio System
794     Restricted Account, is repealed July 1, 2022.
795          (b) When repealing Subsection 63J-1-602.1[(53)](55), the Office of Legislative
796     Research and General Counsel shall, in addition to the office's authority under Subsection
797     36-12-12(3), make necessary changes to subsection numbering and cross references.
798          (19) Subsection 63J-1-602.2[(23)](24), related to the Utah Seismic Safety
799     Commission, is repealed January 1, 2025.
800          (20) Subsection 63J-4-708(1), in relation to the Talent Ready Utah Board, on January

801     1, 2023, is amended to read:
802          "(1) On or before October 1, the board shall provide an annual written report to the
803     Social Services Appropriations Subcommittee and the Economic Development and Workforce
804     Services Interim Committee.".
805          (21) In relation to the Utah Substance Use and Mental Health Advisory Council, on
806     January 1, 2023:
807          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
808     repealed;
809          (b) Section 63M-7-305, the language that states "council" is replaced with
810     "commission";
811          (c) Subsection 63M-7-305(1) is repealed and replaced with:
812          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
813          (d) Subsection 63M-7-305(2) is repealed and replaced with:
814          "(2) The commission shall:
815          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
816     Drug-Related Offenses Reform Act; and
817          (b) coordinate the implementation of Section 77-18-1.1 and related provisions in
818     Subsections 77-18-1(5)(b)(iii) and (iv).".
819          (22) The Crime Victim Reparations and Assistance Board, created in Section
820     63M-7-504, is repealed July 1, 2027.
821          (23) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2021.
822          (24) Subsection 63N-1-301(4)(c), related to the Talent Ready Utah Board, is repealed
823     on January 1, 2023.
824          (25) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
825          [(26) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
826     repealed January 1, 2021.]
827          [(b) Subject to Subsection (26)(c), Sections 59-7-610 and 59-10-1007 regarding tax
828     credits for certain persons in recycling market development zones, are repealed for taxable
829     years beginning on or after January 1, 2021.]
830          [(c) A person may not claim a tax credit under Section 59-7-610 or 59-10-1007:]
831          [(i) for the purchase price of machinery or equipment described in Section 59-7-610 or

832     59-10-1007, if the machinery or equipment is purchased on or after January 1, 2021; or]
833          [(ii) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b), if
834     the expenditure is made on or after January 1, 2021.]
835          [(d) Notwithstanding Subsections (26)(b) and (c), a person may carry forward a tax
836     credit in accordance with Section 59-7-610 or 59-10-1007 if:]
837          [(i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007; and]
838          [(ii) (A) for the purchase price of machinery or equipment described in Section
839     59-7-610 or 59-10-1007, the machinery or equipment is purchased on or before December 31,
840     2020; or]
841          [(B) for an expenditure described in Subsection 59-7-610(1)(b) or 59-10-1007(1)(b),
842     the expenditure is made on or before December 31, 2020.]
843          [(27)] (26) Section 63N-2-512 is repealed [on] July 1, 2021.
844          [(28)] (27) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
845     January 1, 2021.
846          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
847     calendar years beginning on or after January 1, 2021.
848          (c) Notwithstanding Subsection [(28)] (27)(b), an entity may carry forward a tax credit
849     in accordance with Section 59-9-107 if:
850          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December
851     31, 2020; and
852          (ii) the qualified equity investment that is the basis of the tax credit is certified under
853     Section 63N-2-603 on or before December 31, 2023.
854          [(29)] (28) Subsections 63N-3-109(2)(e) and 63N-3-109(2)(f)(i) are repealed July 1,
855     2023.
856          [(30)] (29) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is
857     repealed July 1, 2023.
858          [(31)] (30) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant
859     Program, is repealed January 1, 2023.
860          [(32)] (31) In relation to the Pete Suazo Utah Athletic Commission, on January 1,
861     2021:
862          (a) Subsection 63N-10-201(2)(a) is amended to read:

863          "(2) (a) The governor shall appoint five commission members with the advice and
864     consent of the Senate.";
865          (b) Subsection 63N-10-201(2)(b), related to legislative appointments, is repealed;
866          (c) in Subsection 63N-10-201(3)(a), the language that states ", president, or speaker,
867     respectively," is repealed; and
868          (d) Subsection 63N-10-201(3)(d) is amended to read:
869          "(d) The governor may remove a commission member for any reason and replace the
870     commission member in accordance with this section.".
871          [(33)] (32) In relation to the Talent Ready Utah Board, on January 1, 2023:
872          (a) Subsection 9-22-102(16) is repealed;
873          (b) in Subsection 9-22-114(2), the language that states "Talent Ready Utah," is
874     repealed; and
875          (c) in Subsection 9-22-114(5), the language that states "representatives of Talent Ready
876     Utah," is repealed.
877          [(34)] (33) Title 63N, Chapter 12, Part 5, Talent Ready Utah Center, is repealed
878     January 1, 2023.
879          Section 24. Section 63J-1-602.2 is amended to read:
880          63J-1-602.2. List of nonlapsing appropriations to programs.
881          Appropriations made to the following programs are nonlapsing:
882          (1) The Legislature and its committees.
883          (2) The Percent-for-Art Program created in Section 9-6-404.
884          (3) The LeRay McAllister Critical Land Conservation Program created in Section
885     11-38-301.
886          (4) Dedicated credits accrued to the Utah Marriage Commission as provided under
887     Subsection 17-16-21(2)(d)(ii).
888          (5) The Trip Reduction Program created in Section 19-2a-104.
889          (6) The Division of Wildlife Resources for the appraisal and purchase of lands under
890     the Pelican Management Act, as provided in Section 23-21a-6.
891          (7) The primary care grant program created in Section 26-10b-102.
892          (8) Sanctions collected as dedicated credits from Medicaid provider under Subsection
893     26-18-3(7).

894          (9) The Utah Health Care Workforce Financial Assistance Program created in Section
895     26-46-102.
896          (10) The Rural Physician Loan Repayment Program created in Section 26-46a-103.
897          (11) The Opiate Overdose Outreach Pilot Program created in Section 26-55-107.
898          (12) Funds that the Department of Alcoholic Beverage Control retains in accordance
899     with Subsection 32B-2-301(7)(a) or (b).
900          (13) The General Assistance program administered by the Department of Workforce
901     Services, as provided in Section 35A-3-401.
902          (14) A new program or agency that is designated as nonlapsing under Section
903     36-24-101.
904          (15) The Utah National Guard, created in Title 39, Militia and Armories.
905          (16) The State Tax Commission under Section 41-1a-1201 for the:
906          (a) purchase and distribution of license plates and decals; and
907          (b) administration and enforcement of motor vehicle registration requirements.
908          (17) The Search and Rescue Financial Assistance Program, as provided in Section
909     53-2a-1102.
910          (18) The Motorcycle Rider Education Program, as provided in Section 53-3-905.
911          (19) The State Board of Regents for teacher preparation programs, as provided in
912     Section 53B-6-104.
913          (20) The Medical Education Program administered by the Medical Education Council,
914     as provided in Section 53B-24-202.
915          (21) The State Board of Education, as provided in Section 53F-2-205.
916          (22) The Division of Services for People with Disabilities, as provided in Section
917     62A-5-102.
918          (23) The Division of Fleet Operations for the purpose of upgrading underground
919     storage tanks under Section 63A-9-401.
920          (24) The Utah Seismic Safety Commission, as provided in Section 63C-6-104.
921          (25) Appropriations to the Department of Technology Services for technology
922     innovation as provided under Section 63F-4-202.
923          (26) The Office of Administrative Rules for publishing, as provided in Section
924     63G-3-402.

925          [(27) The Utah Science Technology and Research Initiative created in Section
926     63M-2-301.]
927          [(28)] (27) The Governor's Office of Economic Development to fund the Enterprise
928     Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
929          [(29)] (28) Appropriations to fund the Governor's Office of Economic Development's
930     Rural Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
931     Employment Expansion Program.
932          [(30)] (29) The Department of Human Resource Management user training program, as
933     provided in Section 67-19-6.
934          [(31)] (30) A public safety answering point's emergency telecommunications service
935     fund, as provided in Section 69-2-301.
936          [(32)] (31) The Traffic Noise Abatement Program created in Section 72-6-112.
937          [(33)] (32) The Judicial Council for compensation for special prosecutors, as provided
938     in Section 77-10a-19.
939          [(34)] (33) A state rehabilitative employment program, as provided in Section
940     78A-6-210.
941          [(35)] (34) The Utah Geological Survey, as provided in Section 79-3-401.
942          [(36)] (35) The Bonneville Shoreline Trail Program created under Section 79-5-503.
943          [(37)] (36) Adoption document access as provided in Sections 78B-6-141, 78B-6-144,
944     and 78B-6-144.5.
945          [(38)] (37) Indigent defense as provided in Title 78B, Chapter 22, Part 4, Utah Indigent
946     Defense Commission.
947          [(39)] (38) The program established by the Division of Facilities Construction and
948     Management under Subsection 63A-5-228(3) under which state agencies receive an
949     appropriation and pay lease payments for the use and occupancy of buildings owned by the
950     Division of Facilities Construction and Management.
951          Section 25. Section 63N-1-501 is amended to read:
952          63N-1-501. Governor's Economic Development Coordinating Council --
953     Membership -- Expenses.
954          (1) There is created in the office the Governor's Economic Development Coordinating
955     Council, consisting of the following 11 members:

956          (a) the executive director, who shall serve as chair of the council;
957          (b) the chair of the board or the chair's designee;
958          [(c) the chair of the Utah Science Technology and Research Governing Authority
959     created in Section 63M-2-301 or the chair's designee;]
960          [(d)] (c) the chair of the Governor's Rural Partnership Board created in Section
961     63C-10-102 or the chair's designee;
962          [(e)] (d) the chair of the board of directors of the Utah Capital Investment Corporation
963     created in Section 63N-6-301 or the chair's designee;
964          [(f)] (e) the chair of the Economic Development Corporation of Utah or its successor
965     organization or the chair's designee;
966          [(g)] (f) the chair of the World Trade Center Utah or its successor organization or the
967     chair's designee; and
968          [(h)] (g) [four] five members appointed by the governor, with the consent of the
969     Senate, who have expertise in business, economic development, entrepreneurship, or the
970     raising of venture or seed capital for research and business growth.
971          (2) (a) The [four] five members appointed by the governor may serve for no more than
972     two consecutive two-year terms.
973          (b) The governor shall appoint a replacement if a vacancy occurs from the membership
974     appointed under Subsection (1)[(h)](g).
975          (3) Six members of the council constitute a quorum for the purpose of conducting
976     council business and the action of a majority of a quorum constitutes the action of the council.
977          (4) A member may not receive compensation or benefits for the member's service on
978     the council, but may receive per diem and travel expenses in accordance with:
979          (a) Sections 63A-3-106 and 63A-3-107; and
980          (b) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
981          (5) The office shall provide office space and administrative staff support for the
982     council.
983          (6) The council, as a governmental entity, has all the rights, privileges, and immunities
984     of a governmental entity of the state and its meetings are subject to Title 52, Chapter 4, Open
985     and Public Meetings Act.
986          Section 26. Section 63N-2-203 is amended to read:

987          63N-2-203. Powers of the office.
988          The office shall:
989          (1) monitor the implementation and operation of this part and conduct a continuing
990     evaluation of the progress made in the enterprise zones;
991          (2) evaluate an application for designation as an enterprise zone from a county
992     applicant or a municipal applicant and determine if the applicant qualifies for that designation;
993          (3) provide technical assistance to county applicants and municipal applicants in
994     developing applications for designation as enterprise zones;
995          (4) assist county applicants and municipal applicants designated as enterprise zones in
996     obtaining assistance from the federal government and agencies of the state;
997          (5) assist a qualified business entity in obtaining the benefits of an incentive or
998     inducement program authorized by this part; and
999          (6) as part of the annual written report described in Section 63N-1-301, prepare an
1000     annual evaluation that provides:
1001          (a) based on data from the State Tax Commission, the total amount of tax credits
1002     claimed under this part;
1003          (b) the total amount awarded in tax credits for each development zone;
1004          (c) the number of new full-time employee positions reported to obtain tax credits in
1005     each development zone;
1006          (d) the amount of tax credits awarded for rehabilitating a building in each development
1007     zone;
1008          (e) the amount of tax credits awarded for investing in a plant, equipment, or other
1009     depreciable property in each development zone; and
1010          [(f) the list of approved projects under Section 63N-2-213.5 and the aggregate value of
1011     the tax credit certificates issued related to contributions to those approved projects; and]
1012          [(g)] (f) recommendations regarding the effectiveness of the program and any
1013     suggestions for legislation.
1014          Section 27. Section 63N-2-204 is amended to read:
1015          63N-2-204. Criteria for designation of enterprise zones -- Application.
1016          (1) A county applicant seeking designation as an enterprise zone shall file an
1017     application with the office that, in addition to complying with the other requirements of this

1018     part:
1019          (a) verifies that the county has a population of not more than 70,000; and
1020          (b) provides clear evidence of the need for development in the county.
1021          (2) A municipal applicant seeking designation as an enterprise zone shall file an
1022     application with the office that, in addition to complying with other requirements of this part:
1023          (a) verifies that the municipality has a population that does not exceed 20,000;
1024          (b) verifies that the municipality is within a county that has a population of not more
1025     than 70,000; and
1026          (c) provides clear evidence of the need for development in the municipality.
1027          (3) An application filed under Subsection (1) or (2) shall be in a form and in
1028     accordance with procedures approved by the office, and shall include the following
1029     information:
1030          (a) a plan developed by the county applicant or municipal applicant that identifies local
1031     contributions meeting the requirements of Section 63N-2-205;
1032          (b) the county applicant or municipal applicant has a development plan that outlines:
1033          (i) the types of investment and development within the zone that the county applicant
1034     or municipal applicant expects to take place if the incentives specified in this part are provided;
1035          (ii) the specific investment or development reasonably expected to take place;
1036          (iii) any commitments obtained from businesses;
1037          (iv) the projected number of jobs that will be created and the anticipated wage level of
1038     those jobs;
1039          (v) any proposed emphasis on the type of jobs created, including any affirmative action
1040     plans; and
1041          (vi) a copy of the county applicant's or municipal applicant's economic development
1042     plan to demonstrate coordination between the zone and overall county or municipal goals;
1043          (c) the county applicant's or municipal applicant's proposed means of assessing the
1044     effectiveness of the development plan or other programs within the zone once they have been
1045     implemented within the zone;
1046          (d) any additional information required by the office; and
1047          (e) any additional information the county applicant or municipal applicant considers
1048     relevant to its designation as an enterprise zone.

1049          (4) On or after January 1, 2021, no new enterprise zones shall be designated.
1050          Section 28. Section 63N-2-208 is amended to read:
1051          63N-2-208. Duration of designation.
1052          (1) Each enterprise zone has a duration of five years[, at the end of which the county
1053     may reapply for the designation].
1054          (2) On or after January 1, 2021, neither a municipality nor a county may reapply for an
1055     enterprise zone designation for an enterprise zone that has reached the end of the enterprise
1056     zone's five-year duration.
1057          Section 29. Section 63N-2-213 is amended to read:
1058          63N-2-213. State tax credits.
1059          (1) The office shall certify a business entity's eligibility for a tax credit described in this
1060     section.
1061          (2) A business entity seeking to receive a tax credit as provided in this section shall
1062     provide the office with:
1063          (a) an application for a tax credit certificate in a form approved by the office, including
1064     a certification, by an officer of the business entity, of a signature on the application; and
1065          (b) documentation that demonstrates the business entity has met the requirements to
1066     receive the tax credit.
1067          (3) If, after review of an application and documentation provided by a business entity
1068     as described in Subsection (2), the office determines that the application and documentation are
1069     inadequate to provide a reasonable justification for authorizing the tax credit, the office shall:
1070          (a) deny the tax credit; or
1071          (b) inform the business entity that the application or documentation was inadequate
1072     and ask the business entity to submit additional documentation.
1073          (4) If, after review of an application and documentation provided by a business entity
1074     as described in Subsection (2), the office determines that the application and documentation
1075     provide reasonable justification for authorizing a tax credit, the office shall:
1076          (a) determine the amount of the tax credit to be granted to the business entity;
1077          (b) issue a tax credit certificate to the business entity; and
1078          (c) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
1079          (5) A business entity may not claim a tax credit under this section unless the business

1080     entity has a tax credit certificate issued by the office.
1081          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1082     office shall make rules describing:
1083          (a) the form and content of an application for a tax credit under this section;
1084          (b) the documentation requirements for a business entity to receive a tax credit
1085     certificate under this section; and
1086          (c) administration of the program, including relevant timelines and deadlines.
1087          (7) Subject to the limitations of Subsections (8) through (10), and if the requirements
1088     of this part are met, the following nonrefundable tax credits against a tax under Title 59,
1089     Chapter 7, Corporate Franchise and Income Taxes, or Title 59, Chapter 10, Individual Income
1090     Tax Act, are applicable in an enterprise zone:
1091          (a) a tax credit of $750 may be claimed by a business entity for each new full-time
1092     employee position created within the enterprise zone;
1093          (b) an additional $500 tax credit may be claimed if the new full-time employee position
1094     created within the enterprise zone pays at least 125% of:
1095          (i) the county average monthly nonagricultural payroll wage for the respective industry
1096     as determined by the Department of Workforce Services; or
1097          (ii) if the county average monthly nonagricultural payroll wage is not available for the
1098     respective industry, the total average monthly nonagricultural payroll wage in the respective
1099     county where the enterprise zone is located;
1100          (c) an additional tax credit of $750 may be claimed if the new full-time employee
1101     position created within the enterprise zone is in a business entity that adds value to agricultural
1102     commodities through manufacturing or processing;
1103          (d) an additional tax credit of $200 may be claimed [for two consecutive years] for
1104     each new full-time employee position created within the enterprise zone that is filled by an
1105     employee who is insured under an employer-sponsored health insurance program if the
1106     employer pays at least 50% of the premium cost for the year for which the credit is claimed;
1107          (e) a tax credit of 25% of the first $200,000 spent on rehabilitating a building in the
1108     enterprise zone that has been vacant for two years or more, including that the building has had
1109     or contained no occupants, tenants, furniture, or personal property for two years or more, in the
1110     time period immediately before the rehabilitation; and

1111          (f) an annual investment tax credit [of 10%] may be claimed in an amount equal to 5%
1112     of the first [$250,000 in investment, and 5% of the next $1,000,000] $750,000 qualifying
1113     investment in plant, equipment, or other depreciable property.
1114          (8) (a) Subject to the limitations of Subsection (8)(b), a business entity claiming a tax
1115     credit under Subsections (7)(a) through (d) may claim the tax credit for no more than 30
1116     full-time employee positions in a taxable year.
1117          (b) A business entity that received a tax credit for one or more new full-time employee
1118     positions under Subsections (7)(a) through (d) in a prior taxable year may claim a tax credit for
1119     a new full-time employee position in a subsequent taxable year under Subsections (7)(a)
1120     through (d) if:
1121          (i) the business entity has created a new full-time position within the enterprise zone;
1122     and
1123          (ii) the total number of [full-time] employee positions at the business entity at any
1124     point during the tax year for which the tax credit is being claimed is greater than the highest
1125     number of [full-time] employee positions that existed at the business entity in the previous
1126     [three] taxable [years] year.
1127          (c) Construction jobs are not eligible for the tax credits under Subsections (7)(a)
1128     through (d).
1129          (9) If the amount of a tax credit under this section exceeds a business entity's tax
1130     liability under this chapter for a taxable year, the business entity may carry forward the amount
1131     of the tax credit exceeding the liability for a period that does not exceed the next three taxable
1132     years.
1133          (10) Tax credits under Subsections (7)(a) through (f) may not be claimed by a business
1134     entity primarily engaged in retail trade or by a public utilities business.
1135          (11) A business entity that has no employees:
1136          (a) may not claim tax credits under Subsections (7)(a) through (d); and
1137          (b) may claim tax credits under Subsections (7)(e) through (f).
1138          (12) (a) A business entity may not claim or carry forward a tax credit available under
1139     this part for a taxable year during which the business entity has claimed the targeted business
1140     income tax credit available under Section 63N-2-304.
1141          (b) A business entity may not claim or carry forward a tax credit available under this

1142     section for a taxable year during which the business entity claims or carries forward a tax credit
1143     available under Section 59-7-610 or 59-10-1007.
1144          (13) (a) On or before November 30, 2018, and every three years after 2018, the
1145     Revenue and Taxation Interim Committee shall review the tax credits provided by this section
1146     and make recommendations concerning whether the tax credits should be continued, modified,
1147     or repealed.
1148          (b) In conducting the review required by Subsection (13)(a), the Revenue and Taxation
1149     Interim Committee shall:
1150          (i) schedule time on at least one committee agenda to conduct the review;
1151          (ii) invite state agencies, individuals, and organizations concerned with the credits
1152     under review to provide testimony;
1153          (iii) ensure that the recommendations described in this section include an evaluation of:
1154          (A) the cost of the tax credits to the state;
1155          (B) the purpose and effectiveness of the tax credits; and
1156          (C) the extent to which the state benefits from the tax credits; and
1157          (iv) undertake other review efforts as determined by the chairs of the Revenue and
1158     Taxation Interim Committee.
1159          Section 30. Section 63N-4-104 is amended to read:
1160          63N-4-104. Duties.
1161          (1) The Office of Rural Development shall:
1162          (a) provide staff support to the Governor's Rural Partnership Board in accordance with
1163     Subsection 63C-10-102(6);
1164          (b) facilitate within GOED the implementation of the strategic plan prepared under
1165     Subsection 63C-10-103(1)(b);
1166          (c) work to enhance the capacity of GOED to address rural economic development,
1167     planning, and leadership training challenges and opportunities by establishing partnerships and
1168     positive working relationships with appropriate public and private sector entities, individuals,
1169     and institutions;
1170          (d) work with the Governor's Rural Partnership Board to coordinate and focus
1171     available resources in ways that address the economic development, planning, and leadership
1172     training challenges and priorities in rural Utah; [and]

1173          (e) assist the Governor's Rural Partnership Board in administering the Rural County
1174     Grant Program created in Section 17-54-103, including, as described in Subsection
1175     17-54-103(10), compiling reported information regarding the program for inclusion in GOED's
1176     annual written report described in Section 63N-1-301; and
1177          [(e)] (f) in accordance with economic development and planning policies set by state
1178     government, coordinate relations between:
1179          (i) the state;
1180          (ii) rural governments;
1181          (iii) other public and private groups engaged in rural economic planning and
1182     development; and
1183          (iv) federal agencies.
1184          (2) (a) The Office of Rural Development may:
1185          (i) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
1186     make rules necessary to carry out its duties;
1187          (ii) accept gifts, grants, devises, and property, in cash or in kind, for the benefit of rural
1188     Utah citizens; and
1189          (iii) use those gifts, grants, devises, and property received under Subsection (2)(a)(ii)
1190     for the use and benefit of rural citizens within the state.
1191          (b) All resources received under Subsection (2)(a)(ii) shall be deposited in the General
1192     Fund as dedicated credits to be used as directed in Subsection (2)(a)(iii).
1193          Section 31. Section 63N-4-701 is enacted to read:
1194     
Part 7. Rural Speculative Industrial Building Program

1195          63N-4-701. Title.
1196          This part is known as the "Rural Speculative Industrial Building Program."
1197          Section 32. Section 63N-4-702 is enacted to read:
1198          63N-4-702. Definitions.
1199          As used in this part:
1200          (1) "Entity" means a county, city, or private company.
1201          (2) "Lease" means a legal contract entered into by the office and a lessor of a rural
1202     speculative industrial building before the construction of a rural speculative industrial building.
1203          (3) "Program" means the Rural Speculative Industrial Building Program created in

1204     Section 63N-4-703.
1205          (4) "Rural speculative industrial building" means an industrial facility that is
1206     constructed with the support of the program in a rural area and that does not have a private
1207     entity tenant at the time construction begins.
1208          (5) "Rural area" means any area in a county of the state, except for an area in Salt Lake,
1209     Utah, Davis, Weber, Washington, Cache, Tooele, or Summit counties.
1210          Section 33. Section 63N-4-703 is enacted to read:
1211          63N-4-703. Creation and purpose of the Rural Speculative Industrial Building
1212     Program.
1213          (1) There is created the Rural Speculative Industrial Building Program administered by
1214     the office.
1215          (2) In administering the program, the office shall encourage the construction of rural
1216     speculative industrial buildings by private developers in one or more rural areas to attract new
1217     or expanding businesses into rural areas.
1218          Section 34. Section 63N-4-704 is enacted to read:
1219          63N-4-704. Requirements for entering into a lease.
1220          (1) In accordance with the provisions of this part and in accordance with Title 63G,
1221     Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules establishing the
1222     eligibility and reporting criteria for an applicant to participate in the program as a lessor of a
1223     rural speculative industrial building, including:
1224          (a) the form and process of submitting an application to the office;
1225          (b) the eligibility requirements of an applicant;
1226          (c) the method and formula for determining lease terms between the office and a lessor
1227     of a rural speculative industrial building; and
1228          (d) the reporting requirements of participants in the program.
1229          (2) In determining whether to approve an application for participation in the program,
1230     the office may prioritize a project:
1231          (a) that will serve underprivileged or underserved communities, including communities
1232     with high unemployment or low median incomes;
1233          (b) where an applicant demonstrates comprehensive planning of the project, including
1234     a business case;

1235          (c) where the applicant, as determined by the office, is likely to have success in
1236     attracting a tenant to assume the office's lease of a rural speculative industrial building in a
1237     short amount of time; and
1238          (d) that maximizes economic development opportunities in accordance with the
1239     economic development needs or plans of a county or a municipality.
1240          (3) Subject to legislative appropriation, a lease may only be entered into by the office
1241     if:
1242          (a) the executive director, after consultation with the board, approves entering into the
1243     lease;
1244          (b) the local municipal entity supports the program through the provision of local
1245     incentives, reduced impact fees, or other monetary support for the rural speculative industrial
1246     building; and
1247          (c) the lease terms are not more than $100,000 per year with a maximum five-year
1248     lease term.
1249          (4) The office shall include in the annual written report described in Section
1250     63N-1-301:
1251          (a) an overview of each lease entered into under this program; and
1252          (b) the success of this program in attracting new or expanding businesses into rural
1253     areas.
1254          Section 35. Section 67-19-15 is amended to read:
1255          67-19-15. Career service -- Exempt positions -- Schedules for civil service
1256     positions -- Coverage of career service provisions.
1257          (1) Except as otherwise provided by law or by rules and regulations established for
1258     federally aided programs, the following positions are exempt from the career service provisions
1259     of this chapter and are designated under the following schedules:
1260          (a) schedule AA includes the governor, members of the Legislature, and all other
1261     elected state officers;
1262          (b) schedule AB includes appointed executives and board or commission executives
1263     enumerated in Section 67-22-2;
1264          (c) schedule AC includes all employees and officers in:
1265          (i) the office and at the residence of the governor;

1266          [(ii) the Utah Science Technology and Research Initiative (USTAR);]
1267          [(iii)] (ii) the Public Lands Policy Coordinating Council;
1268          [(iv)] (iii) the Office of the State Auditor; and
1269          [(v)] (iv) the Office of the State Treasurer;
1270          (d) schedule AD includes employees who:
1271          (i) are in a confidential relationship to an agency head or commissioner; and
1272          (ii) report directly to, and are supervised by, a department head, commissioner, or
1273     deputy director of an agency or its equivalent;
1274          (e) schedule AE includes each employee of the State Board of Education that the State
1275     Board of Education designates as exempt from the career service provisions of this chapter;
1276          (f) schedule AG includes employees in the Office of the Attorney General who are
1277     under their own career service pay plan under Sections 67-5-7 through 67-5-13;
1278          (g) schedule AH includes:
1279          (i) teaching staff of all state institutions; and
1280          (ii) employees of the Utah Schools for the Deaf and the Blind who are:
1281          (A) educational interpreters as classified by the department; or
1282          (B) educators as defined by Section 53E-8-102;
1283          (h) schedule AN includes employees of the Legislature;
1284          (i) schedule AO includes employees of the judiciary;
1285          (j) schedule AP includes all judges in the judiciary;
1286          (k) schedule AQ includes:
1287          (i) members of state and local boards and councils appointed by the governor and
1288     governing bodies of agencies;
1289          (ii) a water commissioner appointed under Section 73-5-1;
1290          (iii) other local officials serving in an ex officio capacity; and
1291          (iv) officers, faculty, and other employees of state universities and other state
1292     institutions of higher education;
1293          (l) schedule AR includes employees in positions that involve responsibility:
1294          (i) for determining policy;
1295          (ii) for determining the way in which a policy is carried out; or
1296          (iii) of a type not appropriate for career service, as determined by the agency head with

1297     the concurrence of the executive director;
1298          (m) schedule AS includes any other employee:
1299          (i) whose appointment is required by statute to be career service exempt;
1300          (ii) whose agency is not subject to this chapter; or
1301          (iii) whose agency has authority to make rules regarding the performance,
1302     compensation, and bonuses for its employees;
1303          (n) schedule AT includes employees of the Department of Technology Services,
1304     designated as executive/professional positions by the executive director of the Department of
1305     Technology Services with the concurrence of the executive director;
1306          (o) schedule AU includes patients and inmates employed in state institutions;
1307          (p) employees of the Department of Workforce Services, designated as schedule AW:
1308          (i) who are temporary employees that are federally funded and are required to work
1309     under federally qualified merit principles as certified by the director; or
1310          (ii) for whom substantially all of their work is repetitive, measurable, or transaction
1311     based, and who voluntarily apply for and are accepted by the Department of Workforce
1312     Services to work in a pay for performance program designed by the Department of Workforce
1313     Services with the concurrence of the executive director; and
1314          (q) for employees in positions that are temporary, seasonal, time limited, funding
1315     limited, or variable hour in nature, under schedule codes and parameters established by the
1316     department by administrative rule.
1317          (2) The civil service shall consist of two schedules as follows:
1318          (a) (i) Schedule A is the schedule consisting of positions under Subsection (1).
1319          (ii) Removal from any appointive position under schedule A, unless otherwise
1320     regulated by statute, is at the pleasure of the appointing officers without regard to tenure.
1321          (b) Schedule B is the competitive career service schedule, consisting of:
1322          (i) all positions filled through competitive selection procedures as defined by the
1323     executive director; or
1324          (ii) positions filled through a department approved on-the-job examination intended to
1325     appoint a qualified person with a disability, or a veteran in accordance with Title 71, Chapter
1326     10, Veterans Preference.
1327          (3) (a) The executive director, after consultation with the heads of concerned executive

1328     branch departments and agencies and with the approval of the governor, shall allocate positions
1329     to the appropriate schedules under this section.
1330          (b) Agency heads shall make requests and obtain approval from the executive director
1331     before changing the schedule assignment and tenure rights of any position.
1332          (c) Unless the executive director's decision is reversed by the governor, when the
1333     executive director denies an agency's request, the executive director's decision is final.
1334          (4) (a) Compensation for employees of the Legislature shall be established by the
1335     directors of the legislative offices in accordance with Section 36-12-7.
1336          (b) Compensation for employees of the judiciary shall be established by the state court
1337     administrator in accordance with Section 78A-2-107.
1338          (c) Compensation for officers, faculty, and other employees of state universities and
1339     institutions of higher education shall be established as provided in Title 53B, Chapter 1,
1340     Governance, Powers, Rights, and Responsibilities, and Title 53B, Chapter 2, Institutions of
1341     Higher Education.
1342          (d) Unless otherwise provided by law, compensation for all other schedule A
1343     employees shall be established by their appointing authorities, within ranges approved by, and
1344     after consultation with the executive director of the Department of Human Resource
1345     Management.
1346          (5) An employee who is in a position designated schedule AC and who holds career
1347     service status on June 30, 2010, shall retain the career service status if the employee:
1348          (a) remains in the position that the employee is in on June 30, 2010; and
1349          (b) does not elect to convert to career service exempt status in accordance with a rule
1350     made by the department.
1351          Section 36. Repealer.
1352          This bill repeals:
1353          Section 13-1-14, Workforce Development Restricted Account.
1354          Section 59-7-614.11, Nonrefundable nonprofit contribution tax credit.
1355          Section 59-10-1039, Nonrefundable nonprofit contribution tax credit.
1356          Section 63M-2-101, Title.
1357          Section 63M-2-102, Definitions.
1358          Section 63M-2-301, The Utah Science Technology and Research Initiative --

1359     Governing authority -- Program director.
1360          Section 63M-2-302, USTAR powers and duties.
1361          Section 63M-2-302.5, USTAR requirements.
1362          Section 63M-2-304, Background checks for employees.
1363          Section 63M-2-501, Title.
1364          Section 63M-2-502, Principal researchers -- Agreement requirements --
1365     Discontinuing funding.
1366          Section 63M-2-503, USTAR grant programs.
1367          Section 63M-2-504, Other USTAR support.
1368          Section 63M-2-601, Title.
1369          Section 63M-2-602, Lease agreement for a research building -- Requirements for
1370     lease agreement.
1371          Section 63M-2-701, Title.
1372          Section 63M-2-703, Reporting requirements for private entities.
1373          Section 63M-2-801, Title.
1374          Section 63M-2-802, USTAR annual report.
1375          Section 63M-2-803, Audit requirements.
1376          Section 63N-2-213.5, State tax credits for contributions to a nonprofit corporation.
1377          Section 63N-3-104, Rural Fast Track Program -- Creation -- Funding --
1378     Qualifications for program participation -- Awards -- Reports.
1379          Section 63N-3-104.5, Business Expansion and Retention Initiative -- Creation --
1380     Funding -- Qualifications for program participation -- Awards -- Reports.
1381          Section 37. Appropriation.
1382          Subsection 37(a). Appropriation for fiscal year 2020.
1383          The following sums of money are appropriated for the fiscal year beginning July 1,
1384     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
1385     fiscal year 2020.
1386          The Legislature authorizes the State Division of Finance to transfer the following
1387     amounts to the unrestricted General Fund, Education Fund, or Uniform School Fund, as
1388     indicated, from the restricted funds or accounts indicated. Expenditures and outlays from the
1389     General Fund, Education Fund, or Uniform School Fund must be authorized by an

1390     appropriation.
1391     ITEM 1
1392          To General Fund
1393               From Nonlapsing Balances -- USTAR -- Support Programs
$1,436,200

1394               Schedule of Programs:
1395                    General Fund, One-time                    $1,436,200
1396     ITEM 2
1397          To General Fund
1398               From Nonlapsing Balances -- USTAR -- Grant Programs
$1,765,200

1399               Schedule of Programs:
1400                    General Fund, One-time                    $1,765,200
1401          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1402     Legislature appropriates the following sums of money from the funds or accounts indicated for
1403     the use and support of the government of the state of Utah.
1404     ITEM 3
1405          To Utah Science Technology and Research Governing Authority -- USTAR     
1406           Administration
1407               From General Fund, One-time
($1,512,500)

1408               Schedule of Programs:
1409                    Administration                         ($330,300)
1410                    Project Management & Compliance               ($1,182,200)
1411     ITEM 4
1412          To General Fund Restricted -- Workforce Development Restricted Account
1413               From General Fund, One-time
($11,931,000)

1414               Schedule of Programs:
1415                    Workforce Development Restricted Account     ($11,931,000)
1416          Subsection 37(b). Appropriation for fiscal year 2021.
1417          The following sums of money are appropriated for the fiscal year beginning July 1,
1418     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
1419     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
1420     Act, the Legislature appropriates the following sums of money from the funds or accounts

1421     indicated for the use and support of the government of the state of Utah.
1422     ITEM 1
1423          To Utah Science Technology and Research Governing Authority -- USTAR     
1424           Administration
1425               From General Fund
($1,788,400)

1426               Schedule of Programs:
1427                    Administration                         ($606,200)
1428                    Project Management & Compliance               ($1,182,200)
1429     ITEM 2
1430          To Utah Science Technology and Research Governing Authority -- Support Programs
1431               From General Fund
($31,600)

1432               Schedule of Programs:
1433                    Regional Outreach                         ($13,100)
1434                    SBIR/STTR Assistance Center               ($7,900)
1435                    Incubation Programs                         ($10,600)
1436     ITEM 3
1437          To General Fund Restricted -- Workforce Development Restricted Account
1438               From General Fund
($14,636,900)

1439               Schedule of Programs:
1440                    Workforce Development Restricted Account     ($14,636,900)
1441     ITEM 4
1442          To Governor's Office of Economic Development -- Rural County Grant Program
1443               From General Fund
$4,600,000

1444               Schedule of Programs
1445                    Rural County Grant Program                    $4,600,000
1446     ITEM 5
1447          To Governor's Office of Economic Development -- Rural County Grant Program
1448               From General Fund, One-time
$3,400,000

1449               Schedule of Programs:
1450                    Rural County Grant Program                    $3,400,000
1451     ITEM 6

1452          To Governor's Office of Economic Development -- Rural Coworking and Innovation
1453           Center Grant Program
1454               From General Fund
$250,000

1455               Schedule of Programs:
1456                    Rural Coworking and Innovation Center Grant
1457                     Program                              $250,000
1458     ITEM 7
1459          To Governor's Office of Economic Development -- Rural Coworking and Innovation
1460           Center Grant Program
1461               From General Fund, One-time
$2,000,000

1462               Schedule of Programs:
1463                    Rural Coworking and Innovation Center Grant
1464                     Program                               $2,000,000
1465     ITEM 8
1466          To Governor's Office of Economic Development -- Business Development
1467               From General Fund
$250,000

1468               Schedule of Programs:
1469                    Rural Speculative Industrial Building Program     $250,000
1470     ITEM 9
1471          To Governor's Office of Economic Development -- Pass-through
1472               From General Fund
($385,600)

1473               From Dedicated Credits Revenue
($16,100)

1474               Schedule of Programs:
1475                    Pass-through                              ($401,700)
1476     ITEM 10
1477          To Governor's Office of Economic Development -- SBIR/STTR Center
1478               From General Fund
$385,600

1479               From Dedicated Credits Revenue
$16,100

1480               Schedule of Programs:
1481                    SBIR/STTR Center                         $401,700
1482          The Legislature intends that any remaining money in the Workforce Development

1483     Restricted Account and any remaining money in USTAR accounts that has not been
1484     specifically appropriated for other purposes in fiscal year 2021 be deposited into the General
1485     Fund.
1486          Section 38. Retrospective operation.
1487          The repeal of Sections 59-7-614.11, 59-10-1039, and 63N-2-213.5 in this bill have
1488     retrospective operation for a taxable year beginning on or after January 1, 2020.
1489          Section 39. Effective date.
1490          (1) Except as provided in Subsection (2), this bill takes effect on July 1, 2020.
1491          (2) Uncodified Subsection 37(a), Appropriation for Fiscal Year 2020, takes effect on
1492     May 12, 2020.
1493          Section 40. Coordinating S.B. 95 with H.B. 72 -- Substantive and technical
1494     amendments.
1495          If this S.B. 95 and S.B. 72, Revisor's Technical Corrections to Utah Code, both pass
1496     and become law, it is the intent of the Legislature that on July 1, 2020, the amendments to
1497     Sections 59-7-610 and 59-10-1007 in this bill supersede the amendments to Sections 59-7-610
1498     and 59-10-1007 in S.B. 72, when the Office of Legislative Research and General Counsel
1499     prepares the Utah Code database for publication.
1500          Section 41. Coordinating S.B. 95 with H.B. 179 -- Substantive and technical
1501     amendments.
1502          If this S.B. 95 and H.B. 179, Recycling Market Development Zone Tax Credit
1503     Amendments, both pass and become law, it is the intent of the Legislature that on July 1, 2020,
1504     the amendments to Section 63I-1-263 in this bill supersede the amendments to Section
1505     63I-1-263 in H.B. 179, when the Office of Legislative Research and General Counsel prepares
1506     the Utah Code database for publication.