1     
COVID-19 ECONOMIC RECOVERY PROGRAM

2     
2020 FIFTH SPECIAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Robert M. Spendlove

5     
Senate Sponsor: Daniel Hemmert

6     

7     LONG TITLE
8     General Description:
9          This bill creates economic recovery programs in response to COVID-19.
10     Highlighted Provisions:
11          This bill:
12          ▸     creates grant programs (the grant programs) for:
13               •     certain entities eligible to receive funding from county Botanical, Cultural,
14     Recreational, and Zoological Organizations or Facilities sales tax revenue and
15     their for-profit equivalents if the entity provides activities to encourage travel
16     and tourism in the state to benefit communities or artists affected by COVID-19;
17               •     institutions of higher education to provide education to employees displaced by
18     COVID-19;
19               •     business entities with revenue declines due to COVID-19 if the business entity
20     provides a financial incentive to customers; and
21               •     business entities to purchase supplies and materials to follow COVID-19 public
22     health guidelines on safely returning employees to work;
23          ▸     creates a public outreach and education program to encourage compliance with
24     COVID-19 health guidelines and receipt of medical care;
25          ▸     grants rulemaking authority to the Division of Arts and Museums and the
26     Governor's Office of Economic Development to administer the grant programs;
27          ▸     requires the Division of Arts and Museums, the Governor's Office of Economic

28     Development, and the Division of Finance to report information about the grant programs to
29     certain members of the Legislature;
30          ▸     creates a subtraction from state income for funds received from the grant programs
31     for state income tax purposes;
32          ▸     provides for the repealer of the grant programs and the public outreach and
33     education program; and
34          ▸     makes technical changes.
35     Money Appropriated in this Bill:
36          This bill appropriates in fiscal year 2021:
37          ▸     To Department of Administrative Services -- Finance Mandated, as a one-time
38     appropriation:
39               •     from Federal Funds -- Coronavirus Relief Fund, $62,000,000.
40     Other Special Clauses:
41          This bill provides a special effective date.
42          This bill provides retrospective operation.
43     Utah Code Sections Affected:
44     AMENDS:
45          59-7-106, as last amended by Laws of Utah 2019, Chapter 412
46          59-10-114, as last amended by Laws of Utah 2019, Chapter 412
47          63I-2-259, as last amended by Laws of Utah 2020, Chapters 46 and 354
48          63I-2-263 (Effective 10/15/20), as last amended by Laws of Utah 2020, Chapters 116,
49     230, 231, 286, 322, 325, 354, 365, 368, 375, 405, 430, 433, 446 and last amended
50     by Coordination Clause, Laws of Utah 2020, Chapter 231
51          63N-12-508 (Effective 07/01/20), as last amended by Laws of Utah 2020, Chapters 340
52     and 365
53          63N-12-508 (Superseded 07/01/20), as last amended by Laws of Utah 2020, Chapter
54     340
55     ENACTS:
56          9-6-901, Utah Code Annotated 1953
57          9-6-902, Utah Code Annotated 1953
58          9-6-903, Utah Code Annotated 1953

59          9-6-904, Utah Code Annotated 1953
60          63A-3-111, Utah Code Annotated 1953
61          63I-2-209, Utah Code Annotated 1953
62          63N-15-101, Utah Code Annotated 1953
63          63N-15-102, Utah Code Annotated 1953
64          63N-15-103, Utah Code Annotated 1953
65          63N-15-201, Utah Code Annotated 1953
66          63N-15-202, Utah Code Annotated 1953
67          63N-15-301, Utah Code Annotated 1953
68          63N-15-302, Utah Code Annotated 1953
69          63N-15-401, Utah Code Annotated 1953
70     

71     Be it enacted by the Legislature of the state of Utah:
72          Section 1. Section 9-6-901 is enacted to read:
73     
Part 9. COVID-19 Cultural Assistance Grant Program

74          9-6-901. Definitions.
75          As used in this part:
76          (1) "COVID-19" means:
77          (a) severe acute respiratory syndrome coronavirus 2; or
78          (b) the disease caused by severe acute respiratory syndrome coronavirus 2.
79          (2) "Legislative committee" means:
80          (a) the president of the Senate;
81          (b) the speaker of the House of Representatives;
82          (c) the minority leader of the Senate; and
83          (d) the minority leader of the House of Representatives.
84          (3) "Qualified organization" means:
85          (a) an entity that is eligible to receive funding from the tax authorized under Title 59,
86     Chapter 12, Part 7, County Option Funding for Botanical, Cultural, Recreational, and
87     Zoological Organizations or Facilities, regardless of whether the entity receives any funding; or
88          (b) a for-profit equivalent of an entity described in Subsection (3)(a).
89          Section 2. Section 9-6-902 is enacted to read:

90          9-6-902. COVID-19 Cultural Assistance Grant Program -- Eligibility -- Grant
91     limit.
92          (1) There is established a grant program known as COVID-19 Cultural Assistance
93     Grant Program that is administered by the division in accordance with this part.
94          (2) To be eligible to apply for a grant under this part, a qualified organization:
95          (a) shall offer or propose to offer, on or before December 30, 2020, a cultural, artistic,
96     botanical, recreational, or zoological activity in this state that:
97          (i) promotes travel and tourism in this state; and
98          (ii) in aggregate has a cost that is estimated to equal or exceed 50% of the grant amount
99     that the qualified organization requests;
100          (b) shall describe to the division how receipt of grant funds will benefit the
101     communities or artists in this state affected by COVID-19;
102          (c) shall have an average three-year operational expenditure of $5,000,000 or more per
103     year; and
104          (d) may not receive grant funds under Title 63N, Chapter 15, Part 2, COVID-19
105     Impacted Business Grant Program.
106          (3) The amount of a grant that the division awards to a qualified organization under
107     this part may not exceed two times the net cost of the cultural, artistic, botanical, recreational,
108     or zoological activity that the qualified organization offers or proposes to offer.
109          Section 3. Section 9-6-903 is enacted to read:
110          9-6-903. Duties of the division.
111          (1) As soon as is practicable but on or before July 31, 2020, the division shall:
112          (a) establish an application process by which a qualified organization may apply for a
113     grant under this part, which application shall include:
114          (i) a declaration, signed under penalty of perjury, that the application is complete, true,
115     and correct and any estimates about the net costs to provide the cultural, artistic, botanical,
116     recreational, or zoological activity are made in good faith;
117          (ii) an acknowledgment that the qualified organization is subject to audit; and
118          (iii) a plan for providing the activity described in Subsection 9-6-902(2)(a);
119          (b) establish a method for the office, in consultation with the Governor's Office of
120     Economic Development for recreational applicants, to determine which applicants are eligible

121     to receive a grant;
122          (c) establish a formula to award grant funds; and
123          (d) report the information described in Subsections (1)(a) through (c) to the director of
124     the Division of Finance.
125          (2) The division shall:
126          (a) participate in the presentation that the director of the Division of Finance provides
127     to the legislative committee under Section 63A-3-111; and
128          (b) consider any recommendations for adjustments to the grant program from the
129     legislative committee.
130          (3) Subject to appropriation, beginning on August 5, 2020, the division shall:
131          (a) collect applications for grant funds from qualified organizations;
132          (b) determine, in consultation with the Governor's Office of Economic Development
133     for recreational applicants, which applicants meet the eligibility requirements for receiving a
134     grant; and
135          (c) award the grant funds:
136          (i) (A) after an initial application period that ends on or before August 31, 2020; and
137          (B) if funds remain after the initial application period, on a rolling basis until the
138     earlier of funds being exhausted or December 30, 2020; and
139          (ii) in accordance with the process established under Subsection (1) and the limit
140     described in Subsection 9-6-902(3).
141          (4) The division shall encourage any qualified organization that receives grant funds to
142     commit to following best practices to protect the health and safety of the qualified
143     organization's employees and customers.
144          (5) (a) The division may audit a qualified organization's reported net cost to provide a
145     cultural, artistic, botanical, recreational, or zoological activity.
146          (b) The division may recapture grant funds if, after audit, the division determines that:
147          (i) if a qualified organization made representations about the qualified organization's
148     actual net cost to provide the cultural, artistic, botanical, recreational, or zoological activity, the
149     representations are not complete, true, and correct; or
150          (ii) if a qualified organization made representations about the qualified organization's
151     estimated net cost to provide the cultural, artistic, botanical, recreational, or zoological activity,

152     the representations are not made in good faith.
153          (c) (i) A qualified organization that is subject to recapture shall pay to the Division of
154     Finance a penalty equal to the amount of the grant recaptured multiplied by the applicable
155     income tax rate in Section 59-7-104 or 59-10-104.
156          (ii) The Division of Finance shall deposit the penalty into the Education Fund.
157          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
158     division may make rules to administer the grant program.
159          Section 4. Section 9-6-904 is enacted to read:
160          9-6-904. Reporting.
161          (1) The division shall report the following information to the Economic Development
162     and Workforce Services Interim Committee:
163          (a) the number of applications submitted under the grant program;
164          (b) the number of grants awarded under the grant program;
165          (c) the aggregate amount of grant funds awarded under the grant program; and
166          (d) any other information the division considers relevant to evaluating the success of
167     the grant program.
168          (2) The division shall submit the report described in Subsection (1) in electronic format
169     on or before October 1, 2020, and provide an update in electronic format on or before June 30,
170     2021.
171          Section 5. Section 59-7-106 is amended to read:
172          59-7-106. Subtractions from unadjusted income.
173          (1) In computing adjusted income, the following amounts shall be subtracted from
174     unadjusted income:
175          (a) the foreign dividend gross-up included in gross income for federal income tax
176     purposes under Section 78, Internal Revenue Code;
177          (b) subject to Subsection (2), the net capital loss, as defined for federal purposes, if the
178     taxpayer elects to deduct the net capital loss on the return filed under this chapter for the
179     taxable year for which the net capital loss is incurred;
180          (c) the decrease in salary expense deduction for federal income tax purposes due to
181     claiming the federal work opportunity credit under Section 51, Internal Revenue Code;
182          (d) the decrease in qualified research and basic research expense deduction for federal

183     income tax purposes due to claiming the federal credit for increasing research activities under
184     Section 41, Internal Revenue Code;
185          (e) the decrease in qualified clinical testing expense deduction for federal income tax
186     purposes due to claiming the federal credit for clinical testing expenses for certain drugs for
187     rare diseases or conditions under Section 45C, Internal Revenue Code;
188          (f) any decrease in any expense deduction for federal income tax purposes due to
189     claiming any other federal credit;
190          (g) the safe harbor lease adjustment required under Subsections 59-7-111(1)(b) and
191     (2)(b);
192          (h) any income on the federal corporation income tax return that has been previously
193     taxed by Utah;
194          (i) an amount included in federal taxable income that is due to a refund of a tax,
195     including a franchise tax, an income tax, a corporate stock and business tax, or an occupation
196     tax:
197          (i) if that tax is imposed for the privilege of:
198          (A) doing business; or
199          (B) exercising a corporate franchise;
200          (ii) if that tax is paid by the corporation to:
201          (A) Utah;
202          (B) another state of the United States;
203          (C) a foreign country;
204          (D) a United States possession; or
205          (E) the Commonwealth of Puerto Rico; and
206          (iii) to the extent that tax was added to unadjusted income under Section 59-7-105;
207          (j) a charitable contribution, to the extent the charitable contribution is allowed as a
208     subtraction under Section 59-7-109;
209          (k) subject to Subsection (3), 50% of a dividend considered to be received or received
210     from a subsidiary that:
211          (i) is a member of the unitary group;
212          (ii) is organized or incorporated outside of the United States; and
213          (iii) is not included in a combined report under Section 59-7-402 or 59-7-403;

214          (l) subject to Subsection (4) and Section 59-7-401, 50% of the adjusted income of a
215     foreign operating company;
216          (m) the amount of gain or loss that is included in unadjusted income but not recognized
217     for federal purposes on stock sold or exchanged by a member of a selling consolidated group as
218     defined in Section 338, Internal Revenue Code, if an election has been made in accordance
219     with Section 338(h)(10), Internal Revenue Code;
220          (n) the amount of gain or loss that is included in unadjusted income but not recognized
221     for federal purposes on stock sold, exchanged, or distributed by a corporation in accordance
222     with Section 336(e), Internal Revenue Code, if an election under Section 336(e), Internal
223     Revenue Code, has been made for federal purposes;
224          (o) subject to Subsection (5), an adjustment to the following due to a difference
225     between basis for federal purposes and basis as computed under Section 59-7-107:
226          (i) an amortization expense;
227          (ii) a depreciation expense;
228          (iii) a gain;
229          (iv) a loss; or
230          (v) an item similar to Subsections (1)(o)(i) through (iv);
231          (p) an interest expense that is not deducted on a federal corporation income tax return
232     under Section 265(b) or 291(e), Internal Revenue Code;
233          (q) 100% of dividends received from a subsidiary that is an insurance company if that
234     subsidiary that is an insurance company is:
235          (i) exempt from this chapter under Subsection 59-7-102(1)(c); and
236          (ii) under common ownership;
237          (r) subject to Subsection 59-7-105(10), for a corporation that is an account owner as
238     defined in Section 53B-8a-102, the amount of a qualified investment as defined in Section
239     53B-8a-102.5:
240          (i) that the corporation or a person other than the corporation makes into an account
241     owned by the corporation during the taxable year;
242          (ii) to the extent that neither the corporation nor the person other than the corporation
243     described in Subsection (1)(r)(i) deducts the qualified investment on a federal income tax
244     return; and

245          (iii) to the extent the qualified investment does not exceed the maximum amount of the
246     qualified investment that may be subtracted from unadjusted income for a taxable year in
247     accordance with Subsection 53B-8a-106(1);
248          (s) for a corporation that makes a donation, as that term is defined in Section
249     53B-8a-201, to the Student Prosperity Savings Program created in Section 53B-8a-202, the
250     amount of the donation to the extent that the corporation did not deduct the donation on a
251     federal income tax return;
252          (t) for purposes of income included in a combined report under Part 4, Combined
253     Reporting, the entire amount of the dividends a member of a unitary group receives or is
254     considered to receive from a captive real estate investment trust;
255          (u) the increase in income for federal income tax purposes due to claiming a:
256          (i) qualified tax credit bond credit under Section 54A, Internal Revenue Code; or
257          (ii) qualified zone academy bond under Section 1397E, Internal Revenue Code;
258          (v) for a taxable year beginning on or after January 1, 2019, but beginning on or before
259     December 31, 2019, only:
260          (i) the amount of any FDIC premium paid or incurred by the taxpayer that is
261     disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
262     Revenue Code, on the taxpayer's 2018 federal income tax return; plus
263          (ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
264     disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
265     Revenue Code, for the taxable year; [and]
266          (w) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
267     premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income
268     tax purposes under Section 162(r), Internal Revenue Code, for the taxable year[.]; and
269          (x) for a taxable year beginning on or after January 1, 2020, but beginning on or before
270     December 31, 2020, the amount of any grant funds the taxpayer receives under Title 9, Chapter
271     6, Part 9, COVID-19 Cultural Assistance Grant Program, Subsection 63N-12-508(3), or Title
272     63N, Chapter 15, COVID-19 Economic Recovery Programs, to the extent that the grant funds
273     are included in unadjusted income.
274          (2) For purposes of Subsection (1)(b):
275          (a) the subtraction shall be made by claiming the subtraction on a return filed:

276          (i) under this chapter for the taxable year for which the net capital loss is incurred; and
277          (ii) by the due date of the return, including extensions; and
278          (b) a net capital loss for a taxable year shall be:
279          (i) subtracted for the taxable year for which the net capital loss is incurred; or
280          (ii) carried forward as provided in Sections 1212(a)(1)(B) and (C), Internal Revenue
281     Code.
282          (3) (a) For purposes of calculating the subtraction provided for in Subsection (1)(k), a
283     taxpayer shall first subtract from a dividend considered to be received or received an expense
284     directly attributable to that dividend.
285          (b) For purposes of Subsection (3)(a), the amount of an interest expense that is
286     considered to be directly attributable to a dividend is calculated by multiplying the interest
287     expense by a fraction:
288          (i) the numerator of which is the taxpayer's average investment in the dividend paying
289     subsidiaries; and
290          (ii) the denominator of which is the taxpayer's average total investment in assets.
291          (c) (i) For purposes of calculating the subtraction allowed by Subsection (1)(k), in
292     determining income apportionable to this state, a portion of the factors of a foreign subsidiary
293     that has dividends that are partially subtracted under Subsection (1)(k) shall be included in the
294     combined report factors as provided in this Subsection (3)(c).
295          (ii) For purposes of Subsection (3)(c)(i), the portion of the factors of a foreign
296     subsidiary that has dividends that are partially subtracted under Subsection (1)(k) that shall be
297     included in the combined report factors is calculated by multiplying each factor of the foreign
298     subsidiary by a fraction:
299          (A) not to exceed 100%; and
300          (B) (I) the numerator of which is the amount of the dividend paid by the foreign
301     subsidiary that is included in adjusted income; and
302          (II) the denominator of which is the current year earnings and profits of the foreign
303     subsidiary as determined under the Internal Revenue Code.
304          (4) (a) For purposes of Subsection (1)(l), a taxpayer may not make a subtraction under
305     Subsection (1)(l):
306          (i) if the taxpayer elects to file a worldwide combined report as provided in Section

307     59-7-403; or
308          (ii) for the following:
309          (A) income generated from intangible property; or
310          (B) a capital gain, dividend, interest, rent, royalty, or other similar item that is
311     generated from an asset held for investment and not from a regular business trading activity.
312          (b) In calculating the subtraction provided for in Subsection (1)(l), a foreign operating
313     company:
314          (i) may not subtract an amount provided for in Subsection (1)(k) or (l); and
315          (ii) prior to determining the subtraction under Subsection (1)(l), shall eliminate a
316     transaction that occurs between members of a unitary group.
317          (c) For purposes of the subtraction provided for in Subsection (1)(l), in determining
318     income apportionable to this state, the factors for a foreign operating company shall be
319     included in the combined report factors in the same percentages as the foreign operating
320     company's adjusted income is included in the combined adjusted income.
321          (d) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
322     commission may by rule define what constitutes:
323          (i) income generated from intangible property; or
324          (ii) a capital gain, dividend, interest, rent, royalty, or other similar item that is
325     generated from an asset held for investment and not from a regular business trading activity.
326          (5) (a) For purposes of the subtraction provided for in Subsection (1)(o), the amount of
327     a reduction in basis shall be allowed as an expense for the taxable year in which a federal tax
328     credit is claimed if:
329          (i) there is a reduction in federal basis for a federal tax credit; and
330          (ii) there is no corresponding tax credit allowed in this state.
331          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
332     commission may by rule define what constitutes an item similar to Subsections (1)(o)(i)
333     through (iv).
334          Section 6. Section 59-10-114 is amended to read:
335          59-10-114. Additions to and subtractions from adjusted gross income of an
336     individual.
337          (1) There shall be added to adjusted gross income of a resident or nonresident

338     individual:
339          (a) a lump sum distribution that the taxpayer does not include in adjusted gross income
340     on the taxpayer's federal individual income tax return for the taxable year;
341          (b) the amount of a child's income calculated under Subsection (4) that:
342          (i) a parent elects to report on the parent's federal individual income tax return for the
343     taxable year; and
344          (ii) the parent does not include in adjusted gross income on the parent's federal
345     individual income tax return for the taxable year;
346          (c) (i) a withdrawal from a medical care savings account and any penalty imposed for
347     the taxable year if:
348          (A) the resident or nonresident individual does not deduct the amounts on the resident
349     or nonresident individual's federal individual income tax return under Section 220, Internal
350     Revenue Code;
351          (B) the withdrawal is subject to Subsections 31A-32a-105(1) and (2); and
352          (C) the withdrawal is subtracted on, or used as the basis for claiming a tax credit on, a
353     return the resident or nonresident individual files under this chapter;
354          (ii) a disbursement required to be added to adjusted gross income in accordance with
355     Subsection 31A-32a-105(3); or
356          (iii) an amount required to be added to adjusted gross income in accordance with
357     Subsection 31A-32a-105(5)(c);
358          (d) the amount withdrawn under Title 53B, Chapter 8a, Utah Educational Savings Plan,
359     from the account of a resident or nonresident individual who is an account owner as defined in
360     Section 53B-8a-102, for the taxable year for which the amount is withdrawn, if that amount
361     withdrawn from the account of the resident or nonresident individual who is the account
362     owner:
363          (i) is not expended for:
364          (A) higher education costs as defined in Section 53B-8a-102.5; or
365          (B) a payment or distribution that qualifies as an exception to the additional tax for
366     distributions not used for educational expenses provided in Sections 529(c) and 530(d),
367     Internal Revenue Code; and
368          (ii) is:

369          (A) subtracted by the resident or nonresident individual:
370          (I) who is the account owner; and
371          (II) on the resident or nonresident individual's return filed under this chapter for a
372     taxable year beginning on or before December 31, 2007; or
373          (B) used as the basis for the resident or nonresident individual who is the account
374     owner to claim a tax credit under Section 59-10-1017;
375          (e) except as provided in Subsection (5), for bonds, notes, and other evidences of
376     indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other
377     evidences of indebtedness:
378          (i) issued by one or more of the following entities:
379          (A) a state other than this state;
380          (B) the District of Columbia;
381          (C) a political subdivision of a state other than this state; or
382          (D) an agency or instrumentality of an entity described in Subsections (1)(e)(i)(A)
383     through (C); and
384          (ii) to the extent the interest is not included in adjusted gross income on the taxpayer's
385     federal income tax return for the taxable year;
386          (f) subject to Subsection (2)(c), any distribution received by a resident beneficiary of a
387     resident trust of income that was taxed at the trust level for federal tax purposes, but was
388     subtracted from state taxable income of the trust pursuant to Subsection 59-10-202(2)(b);
389          (g) any distribution received by a resident beneficiary of a nonresident trust of
390     undistributed distributable net income realized by the trust on or after January 1, 2004, if that
391     undistributed distributable net income was taxed at the trust level for federal tax purposes, but
392     was not taxed at the trust level by any state, with undistributed distributable net income
393     considered to be distributed from the most recently accumulated undistributed distributable net
394     income; and
395          (h) any adoption expense:
396          (i) for which a resident or nonresident individual receives reimbursement from another
397     person; and
398          (ii) to the extent to which the resident or nonresident individual subtracts that adoption
399     expense:

400          (A) on a return filed under this chapter for a taxable year beginning on or before
401     December 31, 2007; or
402          (B) from federal taxable income on a federal individual income tax return.
403          (2) There shall be subtracted from adjusted gross income of a resident or nonresident
404     individual:
405          (a) the difference between:
406          (i) the interest or a dividend on an obligation or security of the United States or an
407     authority, commission, instrumentality, or possession of the United States, to the extent that
408     interest or dividend is:
409          (A) included in adjusted gross income for federal income tax purposes for the taxable
410     year; and
411          (B) exempt from state income taxes under the laws of the United States; and
412          (ii) any interest on indebtedness incurred or continued to purchase or carry the
413     obligation or security described in Subsection (2)(a)(i);
414          (b) for taxable years beginning on or after January 1, 2000, if the conditions of
415     Subsection (3)(a) are met, the amount of income derived by a Ute tribal member:
416          (i) during a time period that the Ute tribal member resides on homesteaded land
417     diminished from the Uintah and Ouray Reservation; and
418          (ii) from a source within the Uintah and Ouray Reservation;
419          (c) an amount received by a resident or nonresident individual or distribution received
420     by a resident or nonresident beneficiary of a resident trust:
421          (i) if that amount or distribution constitutes a refund of taxes imposed by:
422          (A) a state; or
423          (B) the District of Columbia; and
424          (ii) to the extent that amount or distribution is included in adjusted gross income for
425     that taxable year on the federal individual income tax return of the resident or nonresident
426     individual or resident or nonresident beneficiary of a resident trust;
427          (d) the amount of a railroad retirement benefit:
428          (i) paid:
429          (A) in accordance with The Railroad Retirement Act of 1974, 45 U.S.C. Sec. 231 et
430     seq.;

431          (B) to a resident or nonresident individual; and
432          (C) for the taxable year; and
433          (ii) to the extent that railroad retirement benefit is included in adjusted gross income on
434     that resident or nonresident individual's federal individual income tax return for that taxable
435     year;
436          (e) an amount:
437          (i) received by an enrolled member of an American Indian tribe; and
438          (ii) to the extent that the state is not authorized or permitted to impose a tax under this
439     part on that amount in accordance with:
440          (A) federal law;
441          (B) a treaty; or
442          (C) a final decision issued by a court of competent jurisdiction;
443          (f) an amount received:
444          (i) for the interest on a bond, note, or other obligation issued by an entity for which
445     state statute provides an exemption of interest on its bonds from state individual income tax;
446          (ii) by a resident or nonresident individual;
447          (iii) for the taxable year; and
448          (iv) to the extent the amount is included in adjusted gross income on the taxpayer's
449     federal income tax return for the taxable year;
450          (g) the amount of all income, including income apportioned to another state, of a
451     nonmilitary spouse of an active duty military member if:
452          (i) both the nonmilitary spouse and the active duty military member are nonresident
453     individuals;
454          (ii) the active duty military member is stationed in Utah;
455          (iii) the nonmilitary spouse is subject to the residency provisions of 50 U.S.C. Sec.
456     4001(a)(2); and
457          (iv) the income is included in adjusted gross income for federal income tax purposes
458     for the taxable year;
459          (h) for a taxable year beginning on or after January 1, 2019, but beginning on or before
460     December 31, 2019, only:
461          (i) the amount of any FDIC premium paid or incurred by the taxpayer that is

462     disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
463     Revenue Code, on the taxpayer's 2018 federal income tax return; plus
464          (ii) the amount of any FDIC premium paid or incurred by the taxpayer that is
465     disallowed as a deduction for federal income tax purposes under Section 162(r), Internal
466     Revenue Code, for the taxable year; [and]
467          (i) for a taxable year beginning on or after January 1, 2020, the amount of any FDIC
468     premium paid or incurred by the taxpayer that is disallowed as a deduction for federal income
469     tax purposes under Section 162(r), Internal Revenue Code, for the taxable year[.]; and
470          (j) for a taxable year beginning on or after January 1, 2020, but beginning on or before
471     December 31, 2020, the amount of any grant funds the resident or nonresident individual
472     receives under Title 9, Chapter 6, Part 9, COVID-19 Cultural Assistance Grant Program,
473     Subsection 63N-12-508(3), or Title 63N, Chapter 15, COVID-19 Economic Recovery
474     Programs, to the extent that the grant funds are included in adjusted gross income.
475          (3) (a) A subtraction for an amount described in Subsection (2)(b) is allowed only if:
476          (i) the taxpayer is a Ute tribal member; and
477          (ii) the governor and the Ute tribe execute and maintain an agreement meeting the
478     requirements of this Subsection (3).
479          (b) The agreement described in Subsection (3)(a):
480          (i) may not:
481          (A) authorize the state to impose a tax in addition to a tax imposed under this chapter;
482          (B) provide a subtraction under this section greater than or different from the
483     subtraction described in Subsection (2)(b); or
484          (C) affect the power of the state to establish rates of taxation; and
485          (ii) shall:
486          (A) provide for the implementation of the subtraction described in Subsection (2)(b);
487          (B) be in writing;
488          (C) be signed by:
489          (I) the governor; and
490          (II) the chair of the Business Committee of the Ute tribe;
491          (D) be conditioned on obtaining any approval required by federal law; and
492          (E) state the effective date of the agreement.

493          (c) (i) The governor shall report to the commission by no later than February 1 of each
494     year regarding whether or not an agreement meeting the requirements of this Subsection (3) is
495     in effect.
496          (ii) If an agreement meeting the requirements of this Subsection (3) is terminated, the
497     subtraction permitted under Subsection (2)(b) is not allowed for taxable years beginning on or
498     after the January 1 following the termination of the agreement.
499          (d) For purposes of Subsection (2)(b) and in accordance with Title 63G, Chapter 3,
500     Utah Administrative Rulemaking Act, the commission may make rules:
501          (i) for determining whether income is derived from a source within the Uintah and
502     Ouray Reservation; and
503          (ii) that are substantially similar to how adjusted gross income derived from Utah
504     sources is determined under Section 59-10-117.
505          (4) (a) For purposes of this Subsection (4), "Form 8814" means:
506          (i) the federal individual income tax Form 8814, Parents' Election To Report Child's
507     Interest and Dividends; or
508          (ii) (A) a form designated by the commission in accordance with Subsection
509     (4)(a)(ii)(B) as being substantially similar to 2000 Form 8814 if for purposes of federal
510     individual income taxes the information contained on 2000 Form 8814 is reported on a form
511     other than Form 8814; and
512          (B) for purposes of Subsection (4)(a)(ii)(A) and in accordance with Title 63G, Chapter
513     3, Utah Administrative Rulemaking Act, the commission may make rules designating a form as
514     being substantially similar to 2000 Form 8814 if for purposes of federal individual income
515     taxes the information contained on 2000 Form 8814 is reported on a form other than Form
516     8814.
517          (b) The amount of a child's income added to adjusted gross income under Subsection
518     (1)(b) is equal to the difference between:
519          (i) the lesser of:
520          (A) the base amount specified on Form 8814; and
521          (B) the sum of the following reported on Form 8814:
522          (I) the child's taxable interest;
523          (II) the child's ordinary dividends; and

524          (III) the child's capital gain distributions; and
525          (ii) the amount not taxed that is specified on Form 8814.
526          (5) Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences
527     of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not
528     be added to adjusted gross income of a resident or nonresident individual if, as annually
529     determined by the commission:
530          (a) for an entity described in Subsection (1)(e)(i)(A) or (B), the entity and all of the
531     political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on
532     income on any part of the bonds, notes, and other evidences of indebtedness of this state; or
533          (b) for an entity described in Subsection (1)(e)(i)(C) or (D), the following do not
534     impose a tax based on income on any part of the bonds, notes, and other evidences of
535     indebtedness of this state:
536          (i) the entity; or
537          (ii) (A) the state in which the entity is located; or
538          (B) the District of Columbia, if the entity is located within the District of Columbia.
539          Section 7. Section 63A-3-111 is enacted to read:
540          63A-3-111. COVID-19 economic recovery program reports.
541          (1) As used in this section:
542          (a) "COVID-19 economic recovery programs" means the programs created in:
543          (i) Title 9, Chapter 6, Part 9, COVID-19 Cultural Assistance Grant Program;
544          (ii) Subsection 63N-12-508(3); and
545          (iii) Title 63N, Chapter 15, COVID-19 Economic Recovery Programs.
546          (b) "Legislative committee" means:
547          (i) the president of the Senate;
548          (ii) the speaker of the House of Representatives;
549          (iii) the minority leader of the Senate; and
550          (iv) the minority leader of the House of Representatives.
551          (2) Upon receiving the reports required by Sections 9-6-903, 63N-15-202, and
552     63N-15-302 and Subsection 63N-12-508(3), the director, in conjunction with the Division of
553     Arts and Museums and the Governor's Office of Economic Development, shall present to the
554     legislative committee the COVID-19 economic recovery programs.

555          (3) The legislative committee may make recommendations for adjustments to the
556     COVID-19 economic recovery programs.
557          Section 8. Section 63I-2-209 is enacted to read:
558          63I-2-209. Repeal dates -- Title 9.
559          Title 9, Chapter 6, Part 9, COVID-19 Cultural Assistance Grant Program, is repealed
560     June 30, 2021.
561          Section 9. Section 63I-2-259 is amended to read:
562          63I-2-259. Repeal dates -- Title 59.
563          (1) In Section 59-2-926, the language that states "applicable" and "or 53F-2-301.5" is
564     repealed July 1, 2023.
565          (2) Subsection 59-7-106(1)(x) is repealed December 31, 2021.
566          [(2)] (3) Section 59-7-620 is repealed December 31, 2021.
567          (4) Subsection 59-10-114(2)(j) is repealed December 31, 2021.
568          Section 10. Section 63I-2-263 (Effective 10/15/20) is amended to read:
569          63I-2-263 (Effective 10/15/20). Repeal dates, Title 63A to Title 63N.
570          (1) On July 1, 2020:
571          (a) Subsection 63A-1-203(5)(a)(i) is repealed; and
572          (b) in Subsection 63A-1-203(5)(a)(ii), the language that states "appointed on or after
573     May 8, 2018," is repealed.
574          (2) Section 63A-3-111 is repealed June 30, 2021.
575          [(2)] (3) Title 63C, Chapter 19, Higher Education Strategic Planning Commission is
576     repealed July 1, 2021.
577          [(3)] (4) Title 63C, Chapter 21, Digital Wellness, Citizenship, and Safe Technology
578     Commission is repealed July 1, 2023.
579          [(4)] (5) The following sections regarding the World War II Memorial Commission are
580     repealed on July 1, 2022:
581          (a) Section 63G-1-801;
582          (b) Section 63G-1-802;
583          (c) Section 63G-1-803; and
584          (d) Section 63G-1-804.
585          [(5)] (6) Subsections 63G-6a-802(1)(d) and 63G-6a-802(3)(b)(iii), regarding a

586     procurement relating to a vice presidential debate, are repealed January 1, 2021.
587          [(6)] (7) In relation to the State Fair Park Committee, on January 1, 2021:
588          (a) Section 63H-6-104.5 is repealed; and
589          (b) Subsections 63H-6-104(8) and (9) are repealed.
590          [(7)] (8) Section 63H-7a-303 is repealed [on] July 1, 2024.
591          [(8)] (9) Subsection 63J-1-206(3)(c), relating to coronavirus, is repealed [on] July 1,
592     2021.
593          [(9)] (10) In relation to the Employability to Careers Program Board, on July 1, 2022:
594          (a) Subsection 63J-1-602.1 (57) is repealed;
595          (b) Subsection 63J-4-301(1)(h), related to the review of data and metrics, is repealed;
596     and
597          (c) Title 63J, Chapter 4, Part 7, Employability to Careers Program, is repealed.
598          [(10)] (11) Title 63M, Chapter 4, Part 8, Voluntary Home Energy Information Pilot
599     Program Act, is repealed January 1, 2022.
600          [(11)] (12) Sections 63M-7-213 and 63M-7-213.5 are repealed on January 1, 2023.
601          (13) Subsection 63N-12-508(3) is repealed December 31, 2021.
602          [(12)] (14) Title 63N, Chapter 13, Part 3, Facilitating Public-Private Partnerships Act,
603     is repealed January 1, 2024.
604          (15) Title 63N, Chapter 15, COVID-19 Economic Recovery Programs, is repealed
605     December 31, 2021.
606          Section 11. Section 63N-12-508 (Superseded 07/01/20) is amended to read:
607          63N-12-508 (Superseded 07/01/20). Utah Works.
608          (1) There is created within the center the Utah Works Program.
609          (2) The program, under the direction of the center and the talent ready board, shall
610     coordinate and partner with the entities described below to develop short-term pre-employment
611     training and short-term early employment training for student and workforce participants that
612     meet the needs of businesses that are creating jobs and economic growth in the state by:
613          (a) partnering with the office, the Department of Workforce Services, the Utah System
614     of Higher Education, and the Utah System of Technical Colleges;
615          (b) partnering with businesses that have significant hiring demands for primarily newly
616     created jobs in the state;

617          (c) coordinating with the Department of Workforce Services, education agencies, and
618     employers to create effective recruitment initiatives to attract student and workforce
619     participants and business participants to the program;
620          (d) coordinating with the Utah System of Higher Education and the Utah System of
621     Technical Colleges to develop educational and training resources to provide student
622     participants in the program qualifications to be hired by business participants in the program;
623     and
624          (e) coordinating with the State Board of Education and local education agencies when
625     appropriate to develop educational and training resources to provide student participants in the
626     program qualifications to be hired by business participants in the program.
627          (3) (a) Subject to appropriation, beginning on August 5, 2020, the office, in
628     consultation with the talent ready board, may respond to the COVID-19 pandemic by directing
629     financial grants to institutions of higher education described in Section 53B-2-101 to offer
630     short-term programs to:
631          (i) provide training to furloughed, laid off, dislocated, underserved, or other
632     populations affected by COVID-19 to fill employment gaps in the state;
633          (ii) provide training and education related to industry needs; and
634          (iii) provide students with certificates or other recognition after completion of training.
635          (b) (i) As soon as is practicable but on or before July 31, 2020, the office shall report to
636     the director of the Division of Finance about the grant program under this Subsection (3),
637     including:
638          (A) the process by which the office shall determine which institutions of public
639     education shall receive financial grants; and
640          (B) the formula for awarding financial grants.
641          (ii) The office shall:
642          (A) participate in the presentation that the director of the Division of Finance provides
643     to the president of the Senate, the speaker of the House of Representatives, the minority leader
644     of the Senate, and the minority leader of the House of Representatives under Section
645     63A-3-111; and
646          (B) consider any recommendations for adjustments to the grant program from the
647     president of the Senate, the speaker of the House of Representatives, the minority leader of the

648     Senate, and the minority leader of the House of Representatives.
649          (c) To implement Subsection (3)(a), an institution of higher education that receives
650     grant funds:
651          (i) may use grant funds for:
652          (A) costs associated with developing a new program; or
653          (B) costs associated with expanding an existing program; and
654          (ii) shall demonstrate industry needs and opportunities for partnership with industry.
655          (d) (i) The office shall award grant funds:
656          (A) after an initial application period that ends on or before August 31, 2020; and
657          (B) if funds remain after the initial application period, on a rolling basis until the
658     earlier of funds being exhausted or November 30, 2020.
659          (ii) An institution of higher education that receives grant funds shall expend the grant
660     funds on or before December 1, 2020.
661          (e) The center shall conduct outreach, including education about career guidance,
662     training, and workforce programs, to the targeted populations.
663          [(3)] (4) The office, in consultation with the talent ready board, may, in accordance
664     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in accordance with the
665     provisions of this section, make rules regarding the development and administration of the
666     Utah Works Program.
667          [(4)] (5) The center shall report the following metrics to the office for inclusion in the
668     office's annual report described in Section 63N-1-301:
669          (a) the number of participants in the program;
670          (b) how program participants learned about or were referred to the program, including
671     the number of participants who learned about or were referred to the program by:
672          (i) the Department of Workforce Services;
673          (ii) marketing efforts of the center or talent ready board;
674          (iii) a school counselor; and
675          (iv) other methods;
676          (c) the number of participants who have completed training offered by the program;
677     and
678          (d) the number of participants who have been hired by a business participating in the

679     program.
680          Section 12. Section 63N-12-508 (Effective 07/01/20) is amended to read:
681          63N-12-508 (Effective 07/01/20). Utah Works.
682          (1) There is created within the center the Utah Works Program.
683          (2) The program, under the direction of the center and the talent ready board, shall
684     coordinate and partner with the entities described below to develop short-term pre-employment
685     training and short-term early employment training for student and workforce participants that
686     meet the needs of businesses that are creating jobs and economic growth in the state by:
687          (a) partnering with the office, the Department of Workforce Services, and the Utah
688     system of higher education;
689          (b) partnering with businesses that have significant hiring demands for primarily newly
690     created jobs in the state;
691          (c) coordinating with the Department of Workforce Services, education agencies, and
692     employers to create effective recruitment initiatives to attract student and workforce
693     participants and business participants to the program;
694          (d) coordinating with the Utah system of higher education to develop educational and
695     training resources to provide student participants in the program qualifications to be hired by
696     business participants in the program; and
697          (e) coordinating with the State Board of Education and local education agencies when
698     appropriate to develop educational and training resources to provide student participants in the
699     program qualifications to be hired by business participants in the program.
700          (3) (a) Subject to appropriation, beginning on August 5, 2020, the office, in
701     consultation with the talent ready board, may respond to the COVID-19 pandemic by directing
702     financial grants to institutions of higher education described in Section 53B-2-101 to offer
703     short-term programs to:
704          (i) provide training to furloughed, laid off, dislocated, underserved, or other
705     populations affected by COVID-19 to fill employment gaps in the state;
706          (ii) provide training and education related to industry needs; and
707          (iii) provide students with certificates or other recognition after completion of training.
708          (b) (i) As soon as is practicable but on or before July 31, 2020, the office shall report to
709     the director of the Division of Finance about the grant program under this Subsection (3),

710     including:
711          (A) the process by which the office shall determine which institutions of public
712     education shall receive financial grants; and
713          (B) the formula for awarding financial grants.
714          (ii) The office shall:
715          (A) participate in the presentation that the director of the Division of Finance provides
716     to the president of the Senate, the speaker of the House of Representatives, the minority leader
717     of the Senate, and the minority leader of the House of Representatives under Section
718     63A-3-111; and
719          (B) consider any recommendations for adjustments to the grant program from the
720     president of the Senate, the speaker of the House of Representatives, the minority leader of the
721     Senate, and the minority leader of the House of Representatives.
722          (c) To implement Subsection (3)(a), an institution of higher education that receives
723     grant funds:
724          (i) may use grant funds for:
725          (A) costs associated with developing a new program; or
726          (B) costs associated with expanding an existing program; and
727          (ii) shall demonstrate industry needs and opportunities for partnership with industry.
728          (d) (i) The office shall award grant funds:
729          (A) after an initial application period that ends on or before August 31, 2020; and
730          (B) if funds remain after the initial application period, on a rolling basis until the
731     earlier of funds being exhausted or November 30, 2020.
732          (ii) An institution of higher education that receives grant funds shall expend the grant
733     funds on or before December 1, 2020.
734          (e) The center shall conduct outreach, including education about career guidance,
735     training, and workforce programs, to the targeted populations.
736          [(3)] (4) The office, in consultation with the talent ready board, may, in accordance
737     with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in accordance with the
738     provisions of this section, make rules regarding the development and administration of the
739     Utah Works Program.
740          [(4)] (5) The center shall report the following metrics to the office for inclusion in the

741     office's annual report described in Section 63N-1-301:
742          (a) the number of participants in the program;
743          (b) how program participants learned about or were referred to the program, including
744     the number of participants who learned about or were referred to the program by:
745          (i) the Department of Workforce Services;
746          (ii) marketing efforts of the center or talent ready board;
747          (iii) a school counselor; and
748          (iv) other methods;
749          (c) the number of participants who have completed training offered by the program;
750     and
751          (d) the number of participants who have been hired by a business participating in the
752     program.
753          Section 13. Section 63N-15-101 is enacted to read:
754     
CHAPTER 15. COVID-19 ECONOMIC RECOVERY PROGRAMS

755     
Part 1. General Provisions.

756          63N-15-101. Title.
757          This chapter is known as "COVID-19 Economic Recovery Programs."
758          Section 14. Section 63N-15-102 is enacted to read:
759          63N-15-102. Definitions.
760          As used in this chapter:
761          (1) (a) "Business entity" means a business that:
762          (i) was in operation in this state on March 1, 2020;
763          (ii) has employees who report to a physical location in this state; and
764          (iii) (A) is properly registered with the Division of Corporations and Commercial
765     Code;
766          (B) is tax exempt under Section 501(c)(3), (6), or (19) of the Internal Revenue Code;
767          (C) is a Tribal business concern described in 15 U.S.C. Sec. 657a (b)(2)(C); or
768          (D) is an individual who operates under a sole proprietorship, operates as an
769     independent contractor, or is self-employed.
770          (b) "Business entity" does not include a marketplace that connects travelers with
771     private property owners offering accommodation for compensation.

772          (2) "COVID-19" means:
773          (a) severe acute respiratory syndrome coronavirus 2; or
774          (b) the disease caused by severe acute respiratory syndrome coronavirus 2.
775          (3) (a) "COVID-19 expenses" means the costs incurred by a business entity:
776          (i) on or after March 1, 2020, but on or before December 30, 2020; and
777          (ii) to comply with COVID-19 public health guidelines on safely returning employees
778     to work.
779          (b) "COVID-19 expenses" includes:
780          (i) personal protection equipment for employees and customers;
781          (ii) cleaning and sanitizing supplies;
782          (iii) signage providing public health guidelines;
783          (iv) technology upgrades related to teleworking; and
784          (v) costs for office redesign to provide adequate separation between employees or
785     between employees and customers.
786          (4) "Legislative committee" means:
787          (a) the president of the Senate;
788          (b) the speaker of the House of Representatives;
789          (c) the minority leader of the Senate; and
790          (d) the minority leader of the House of Representatives.
791          (5) "Monthly revenue decline" means the amount of the business entity's revenue loss
792     in this state for the month calculated by subtracting the month's revenue from:
793          (a) for a business entity that began operating in this state before July 1, 2019, the
794     business entity's revenue for the same month in 2019; and
795          (b) for a business entity that began operating in this state on or after July 1, 2019, the
796     business entity's revenue in this state for February 2020.
797          (6) "Revenue decline" means the sum of the monthly revenue declines for the months
798     of March through June 2020.
799          (7) "Small business" means a business entity with 250 or fewer full-time equivalent
800     employees.
801          Section 15. Section 63N-15-103 is enacted to read:
802          63N-15-103. Reporting.

803          The office shall include in the office's 2020 and 2021 annual reports to the governor
804     and the Legislature under Section 63N-1-301 the following information about each of the grant
805     programs established under this chapter:
806          (1) the number of applications submitted under the grant program;
807          (2) the number of grants awarded under the grant program;
808          (3) the aggregate amount of grant funds awarded under the grant program; and
809          (4) any other information the office considers relevant to evaluating the success of the
810     grant program.
811          Section 16. Section 63N-15-201 is enacted to read:
812     
Part 2. COVID-19 Impacted Businesses Grant Program

813          63N-15-201. Creation of COVID-19 Impacted Businesses Grant Program --
814     Eligibility.
815          (1) There is established a grant program known as COVID-19 Impacted Businesses
816     Grant Program that is administered by the office in accordance with this part.
817          (2) To be eligible to apply for a grant under this part, a business entity:
818          (a) shall have experienced a revenue decline in this state due to the public health
819     emergency related to COVID-19;
820          (b) shall offer a financial incentive:
821          (i) for individuals or businesses to make purchases from the business entity; and
822          (ii) that in aggregate is estimated to equal or exceed 50% of the grant amount that the
823     business entity requests;
824          (c) shall describe to the office how receipt of grant funds will benefit the state
825     economy; and
826          (d) may not have received grant funds under Title 9, Chapter 6, Part 9, COVID-19
827     Cultural Assistance Grant Program.
828          (3) (a) The amount of a grant that the office awards to a business entity under this part
829     may not exceed the amount of the business entity's revenue decline.
830          (b) For applications received on or before August 31, 2020, the office shall award at
831     least 75% of the grant funds to small businesses that meet the eligibility requirements.
832          Section 17. Section 63N-15-202 is enacted to read:
833          63N-15-202. Duties of the office.

834          (1) As soon as is practicable but on or before July 31, 2020, the office shall:
835          (a) establish an application process by which a business entity may apply for a grant
836     under this part, which application shall include:
837          (i) a declaration, signed under penalty of perjury, that the application is complete, true,
838     and correct;
839          (ii) an acknowledgment that the business entity is subject to audit; and
840          (iii) a plan for providing the financial incentive described in Subsection
841     63N-15-201(2)(b);
842          (b) establish a method for the office to determine which applicants are eligible to
843     receive a grant;
844          (c) establish a formula to award grant funds; and
845          (d) report the information described in Subsections (1)(a) through (c) to the director of
846     the Division of Finance.
847          (2) The office shall:
848          (a) participate in the presentation that the director of the Division of Finance provides
849     to the legislative committee under Section 63A-3-111; and
850          (b) consider any recommendations for adjustments to the grant program from the
851     legislative committee.
852          (3) Subject to appropriation, beginning on August 5, 2020, the office shall:
853          (a) collect applications for grant funds from business entities;
854          (b) determine which applicants meet the eligibility requirements for receiving a grant;
855     and
856          (c) award the grant funds:
857          (i) (A) after an initial application period that ends on or before August 31, 2020; and
858          (B) if funds remain after the initial application period, on a rolling basis until the
859     earlier of funds being exhausted or December 30, 2020; and
860          (ii) in accordance with the process established under Subsection (1) and the limits
861     described in Subsection 63N-15-201(3).
862          (4) (a) The office may audit a business entity to ensure that a business entity
863     experienced the revenue decline reported in the application.
864          (b) The office may recapture grant funds if, after audit, the office determines that a

865     business entity made representations to the office about the business entity's revenue decline
866     that are not complete, true, and correct.
867          (c) (i) A business entity that is subject to recapture shall pay to the Division of Finance
868     a penalty equal to the amount of the grant recaptured multiplied by the applicable income tax
869     rate in Section 59-7-104 or 59-10-104.
870          (ii) The Division of Finance shall deposit the penalty into the Education Fund.
871          (5) The office shall encourage any business entity that receives grant funds to commit
872     to following best practices to protect the health and safety of the business entity's employees
873     and customers.
874          (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
875     office may make rules to administer the grant program.
876          (7) As part of any advertisement of the COVID-19 Impacted Businesses Grant
877     Program, the office:
878          (a) shall encourage economically disadvantaged business entities, including
879     minority-owned and woman-owned business entities, that meet the eligibility requirements to
880     apply for grant funds; and
881          (b) may feature any business entity that:
882          (i) shows evidence of a commitment to following best practices to protect the health
883     and safety of the business entity's employees and customers; and
884          (ii) consents to being featured.
885          Section 18. Section 63N-15-301 is enacted to read:
886     
Part 3. COVID-19 PPE Support Grant Program

887          63N-15-301. Creation of COVID-19 PPE Support Grant Program -- Eligibility.
888          (1) There is established a grant program known as COVID-19 PPE Support Grant
889     Program that is administered by the office in accordance with this part.
890          (2) To be eligible to apply for a grant under this part, the business entity shall:
891          (a) (i) demonstrate that the business entity has incurred COVID-19 expenses; or
892          (ii) certify that the business entity will spend grant funds on COVID-19 expenses; and
893          (b) describe to the office the business entity's actual or anticipated cost to comply with
894     public health guidelines on safely returning employees to work.
895          (3) (a) The amount of a grant that the office awards to a business entity under this part

896     may not exceed the lesser of:
897          (i) the amount of the business entity's COVID-19 expenses; or
898          (ii) $100 per full-time equivalent employee.
899          (b) For applications received on or before August 31, 2020, the office shall award at
900     least 75% of grant funds to small businesses that meet the eligibility requirements.
901          Section 19. Section 63N-15-302 is enacted to read:
902          63N-15-302. Duties of the office.
903          (1) As soon as is practicable but on or before July 31, 2020, the office shall:
904          (a) establish an application process by which a business entity may apply for a grant
905     under this part, which application shall include:
906          (i) a declaration, signed under penalty of perjury, that the application is complete, true,
907     and correct and any estimates about COVID-19 expenses are made in good faith; and
908          (ii) an acknowledgment that the business entity is subject to audit;
909          (b) establish a method for the office to determine which applicants are eligible to
910     receive a grant;
911          (c) establish a formula to award grant funds;
912          (d) establish requirements for grant recipients to retain records of COVID-19 expenses;
913     and
914          (e) report the information described in Subsections (1)(a) through (d) to the director of
915     the Division of Finance.
916          (2) The office shall:
917          (a) participate in the presentation that the director of the Division of Finance provides
918     to the legislative committee under Section 63A-3-111; and
919          (b) consider any recommendations for adjustments to the grant program from the
920     legislative committee.
921          (3) Subject to appropriation, beginning on August 5, 2020, the office shall:
922          (a) collect applications for grant funds from business entities;
923          (b) determine which applicants meet the eligibility requirements for receiving a grant;
924     and
925          (c) award the grant funds:
926          (i) (A) after an initial application period that ends on or before August 31, 2020; and

927          (B) if funds remain after the initial application period, on a rolling basis until the
928     earlier of funds being exhausted or December 30, 2020; and
929          (ii) in accordance with the process established under Subsection (1) and the limits
930     described in Subsection 63N-15-301(3).
931          (4) (a) The office may audit a business entity to ensure that the business entity incurred
932     COVID-19 expenses reported or estimated in the application.
933          (b) The office may recapture grant funds if, after audit, the office determines that:
934          (i) if the business entity made representations about incurred COVID-19 expenses, the
935     representations are not complete, true, and correct; or
936          (ii) if the business entity made representations about estimated COVID-19 expenses,
937     the representations are not made in good faith.
938          (c) (i) A business entity that is subject to recapture shall pay to the Division of Finance
939     a penalty equal to the amount of the grant recaptured multiplied by the applicable income tax
940     rate in Section 59-7-104 or 59-10-104.
941          (ii) The Division of Finance shall deposit the penalty into the Education Fund.
942          (5) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
943     office may make rules to administer the grant program.
944          (6) As part of any advertisement of the COVID-19 PPE Support Grant Program, the
945     office shall encourage economically disadvantaged business entities, including minority-owned
946     and woman-owned business entities, that meet the eligibility requirements to apply for grant
947     funds.
948          Section 20. Section 63N-15-401 is enacted to read:
949     
Part 4. COVID-19 Outreach and Education Program

950          63N-15-401. COVID-19 Outreach and Education Program.
951          (1) The office shall develop and implement for the state a public outreach and
952     education program regarding health related to COVID-19.
953          (2) The outreach and education program shall:
954          (a) emphasize that, to keep themselves and others healthy, Utah residents should
955     follow recommended COVID-19 related health guidelines, including, when applicable:
956          (i) physical distancing;
957          (ii) mask wearing; and

958          (iii) increased hygiene practices;
959          (b) explain the precautions that Utah medical providers have taken to provide safe
960     medical care in light of the COVID-19 pandemic; and
961          (c) encourage Utah residents during the COVID-19 pandemic not to defer treatment
962     from medical providers, including:
963          (i) urgent care;
964          (ii) preventative care; and
965          (iii) vaccinations.
966          Section 21. Appropriation.
967          FY 2021 Appropriations. Operating and Capital Budgets.
968          The following sums of money are appropriated for the fiscal year beginning July 1,
969     2020, and ending June 30, 2021. These are additions to amounts previously appropriated for
970     fiscal year 2021. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
971     Act, the Legislature appropriates the following sums of money from the funds or accounts
972     indicated for the use and support of the government of the state of Utah.
973     ITEM 1
974          To Department of Administrative Services -- Finance Mandated
975               From Federal Funds -- Coronavirus Relief Fund, One-time
$62,000,000

976               Schedule of Programs:
977                    Emergency Disease Response          $62,000,000
978          The Legislature intends that the Division of Finance partner with state agencies and
979     institutions of higher education to implement the programs authorized in this bill as follows:
980     COVID-19 Cultural Assistance Grant Program, with the Division of Arts and Museums,
981     $9,000,000; COVID-19 Displaced Worker Grant Program: with the Utah System of Higher
982     Education, $4,462,500; the Department of Workforce Services, $75,000; and the Governor's
983     Office of Economic Development, $4,462,000; COVID-19 Impacted Businesses Grant
984     Program, with the Governor's Office of Economic Development, $25,000,000; COVID-19 PPE
985     Support Grant Program, with the Governor's Office of Economic Development, $5,000,000;
986     and COVID-19 Outreach and Education Program, with the Governor's Office of Economic
987     Development, $1,000,000.
988          The Legislature further intends that the Division of Finance use $1,000,000 to partner

989     with the Department of Heritage and Arts - Pass Through to provide for digital equipment and
990     basic needs assistance grants, including needs such as utilities, rent, transportation, and food
991     assistance, as identified by the Multicultural Subcommittee of the COVID-19 Task Force, and
992     for translation services related to providing information and guidance about COVID-19.
993          The Legislature further intends that the Division of Finance use $12,000,000 to partner
994     with the Governor's Office of Economic Development -- Office of Tourism to respond to the
995     COVID-19 health emergency through:
996          (1) state and regional marketing intended to increase tourism to national parks in the
997     state and the surrounding communities;
998          (2) transportation to and within national parks in the state to facilitate visitor access;
999     and
1000          (3) other marketing costs intended to stimulate tourism throughout the state.
1001          Section 22. Effective date.
1002          (1) Except as provided in Subsections (2) and (3), if approved by two-thirds of all the
1003     members elected to each house, this bill takes effect upon approval by the governor, or the day
1004     following the constitutional time limit of Utah Constitution, Article VII, Section 8, without the
1005     governor's signature, or in the case of a veto, the date of veto override.
1006          (2) Section 63N-12-508 (Effective 07/01/20) takes effect on July 1, 2020.
1007          (3) Section 63I-2-263 (Effective 10/15/20) takes effect on October 15, 2020.
1008          Section 23. Retrospective operation.
1009          The amendments to Sections 59-7-106 and 59-10-114 have retrospective operation for a
1010     taxable year beginning on or after January 1, 2020.