1     
STATE SMALL BUSINESS CREDIT INITIATIVE

2     
PROGRAM FUND AMENDMENTS

3     
2022 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Carol Spackman Moss

6     
Senate Sponsor: Ronald M. Winterton

7     

8     LONG TITLE
9     General Description:
10          This bill addresses the State Small Business Credit Initiative Program Fund.
11     Highlighted Provisions:
12          This bill:
13          ▸     transfers the administration of the State Small Business Credit Initiative Program
14     Fund from the Department of Workforce Services to the Governor's Office of
15     Economic Opportunity; and
16          ▸     makes technical changes.
17     Money Appropriated in this Bill:
18          None
19     Other Special Clauses:
20          This bill provides a special effective date.
21     Utah Code Sections Affected:
22     RENUMBERS AND AMENDS:
23          63N-3-801, (Renumbered from 35A-8-1201, as renumbered and amended by Laws of
24     Utah 2012, Chapter 212)
25          63N-3-802, (Renumbered from 35A-8-1202, as last amended by Laws of Utah 2012,
26     Chapter 347 and renumbered and amended by Laws of Utah 2012, Chapter 212)
27          63N-3-803, (Renumbered from 35A-8-1203, as last amended by Laws of Utah 2014,
28     Chapter 371)
29     

30     Be it enacted by the Legislature of the state of Utah:
31          Section 1. Section 63N-3-801, which is renumbered from Section 35A-8-1201 is
32     renumbered and amended to read:
33     
Part 8. State Small Business Credit Initiative Program Fund

34          [35A-8-1201].      63N-3-801. Creation and administration.
35          (1) There is created an enterprise fund known as the "State Small Business Credit
36     Initiative Program Fund" administered by the [director of the division or the director's
37     designee] office.
38          (2) The [division] executive director or the executive director's designee is the
39     administrator of the fund.
40          (3) Revenues deposited into the fund shall consist of:
41          (a) grants, pay backs, bonuses, entitlements, and other money received from the federal
42     government to implement the State Small Business Credit Initiative; and
43          (b) transfers, grants, gifts, bequests, and other money made available from any source
44     to implement this part.
45          (4) (a) The state treasurer shall invest the money in the fund according to the
46     procedures and requirements of Title 51, Chapter 7, State Money Management Act.
47          (b) Interest and other earnings derived from the fund money shall be deposited in the
48     fund.
49          (5) The [division] office may use fund money for administration of the fund, but not to
50     exceed 4% of the annual receipts to the fund.
51          Section 2. Section 63N-3-802, which is renumbered from Section 35A-8-1202 is
52     renumbered and amended to read:
53          [35A-8-1202].      63N-3-802. Distribution of fund money.
54          (1) (a) The [director] office shall make loans and loan guarantees from the fund for the
55     Small Business Credit Initiative created under the [federal government's] Small Business Jobs
56     Act of 2010, 12 U.S.C. Sec. 5701 et seq., as amended, to use federal money for programs that
57     leverage private lending to help finance small businesses and manufacturers that are
58     creditworthy but not receiving the loans needed to expand and create jobs.
59          (b) In making loans and loan guarantees under this part, the [director] office shall give
60     due consideration to small businesses in underserved communities throughout the state that
61     have been deeply impacted by recession and not seen a comparable resurgence in their
62     economies.
63          (2) The [director] office shall distribute federal money in the fund according to the
64     procedures, conditions, and restrictions placed upon the use of the money by the federal
65     government.
66          [(3) The director may, with the approval of the executive director of the department:]
67          (3) The office may:
68          (a) enact rules to establish procedures for the loan and loan guarantee process by
69     following the procedures and requirements of Title 63G, Chapter 3, Utah Administrative
70     Rulemaking Act; and
71          (b) service or contract, under Title 63G, Chapter 6a, Utah Procurement Code, for the
72     servicing of loans made by the fund.
73          Section 3. Section 63N-3-803, which is renumbered from Section 35A-8-1203 is
74     renumbered and amended to read:
75          [35A-8-1203].      63N-3-803. Annual accounting.
76          (1) The [director] office shall monitor the activities of recipients of the loans and loan
77     guarantees issued under this part on a yearly basis to ensure compliance with the terms and
78     conditions imposed on the recipient by the [director] office under this part.
79          (2) An entity receiving a loan or loan guarantee under this part shall provide the
80     [director] office with an annual accounting of how the money it received from the fund was
81     spent.
82          [(3) The director shall provide the following information to the department for
83     inclusion in the department's annual written report described in Section 35A-1-109:]
84          (3) The office shall include the following information in the office's annual written
85     report described in Section 63N-1a-306:
86          (a) an accounting of expenditures made from the fund; and
87          (b) an evaluation of the effectiveness of the loan and loan guarantee program.
88          Section 4. Effective date.
89          This bill takes effect on July 1, 2022.