Senator Curtis S. Bramble proposes the following substitute bill:


1     
UTAH RURAL JOBS ACT AMENDMENTS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Nelson T. Abbott

5     
Senate Sponsor: Curtis S. Bramble

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the Utah Rural Jobs Act.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     authorizes additional nonrefundable tax credits related to investments in eligible
14     small businesses located in specified counties;
15          ▸     requires each eligible small business that receives a growth investment to submit a
16     document that directs and authorizes the State Tax Commission to disclose to the
17     GO Utah office the eligible small business's returns;
18          ▸     addresses the method for allocating new annual jobs at an eligible small business
19     that receives a growth investment from more than one rural investment company;
20          ▸     establishes a deadline for each rural investment company to exit the program; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides retrospective operation.

26     Utah Code Sections Affected:
27     AMENDS:
28          59-7-621, as last amended by Laws of Utah 2021, Chapter 282
29          59-10-1038, as last amended by Laws of Utah 2021, Chapter 282
30          63N-4-302, as last amended by Laws of Utah 2020, Chapter 354
31          63N-4-303, as enacted by Laws of Utah 2017, Chapter 274
32          63N-4-305, as enacted by Laws of Utah 2017, Chapter 274
33          63N-4-307, as enacted by Laws of Utah 2017, Chapter 274
34          63N-4-309, as enacted by Laws of Utah 2017, Chapter 274
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 59-7-621 is amended to read:
38          59-7-621. Nonrefundable rural job creation tax credit.
39          (1) As used in this section, "office" means the Governor's Office of Economic
40     Opportunity created in Section 63N-1a-301.
41          (2) Subject to the other provisions of this section, a taxpayer may claim a
42     nonrefundable tax credit for rural job creation as provided in this section.
43          (3) The tax credit under this section is the amount listed as the tax credit amount on a
44     tax credit certificate that the office issues under Title 63N, Chapter 4, Part 3, Utah Rural Jobs
45     Act, to the taxpayer for the taxable year.
46          [(4) A taxpayer may carry forward a tax credit under this section for the next seven
47     taxable years if the amount of the tax credit exceeds the taxpayer's tax liability under this
48     chapter for the taxable year in which the taxpayer claims the tax credit.]
49          (4) If the amount of a tax credit under this section exceeds the taxpayer's tax liability
50     under this chapter for the taxable year in which the taxpayer claims the tax credit, the taxpayer
51     may carry forward the tax credit for:
52          (a) the next seven taxable years, if the credit-eligible contribution as defined in Section
53     63N-4-302 is made before November 1, 2022; or
54          (b) the next four taxable years, if the credit-eligible contribution as defined in Section
55     63N-4-302 is made on or after November 1, 2022.
56          Section 2. Section 59-10-1038 is amended to read:

57          59-10-1038. Nonrefundable rural job creation tax credit.
58          (1) As used in this section, "office" means the Governor's Office of Economic
59     Opportunity created in Section 63N-1a-301.
60          (2) Subject to the other provisions of this section, a taxpayer may claim a
61     nonrefundable tax credit for rural job creation as provided in this section.
62          (3) The tax credit under this section is the amount listed as the tax credit amount on a
63     tax credit certificate that the office issues under Title 63N, Chapter 4, Part 3, Utah Rural Jobs
64     Act, to the taxpayer for the taxable year.
65          [(4) A taxpayer may carry forward a tax credit under this section for the next seven
66     taxable years if the amount of the tax credit exceeds the taxpayer's tax liability under this
67     chapter for the taxable year in which the taxpayer claims the tax credit.]
68          (4) If the amount of a tax credit under this section exceeds the taxpayer's tax liability
69     under this chapter for the taxable year in which the taxpayer claims the tax credit, the taxpayer
70     may carry forward the tax credit for:
71          (a) the next seven taxable years, if the credit-eligible contribution as defined in Section
72     63N-4-302 is made before November 1, 2022; or
73          (b) the next four taxable years, if the credit-eligible contribution as defined in Section
74     63N-4-302 is made on or after November 1, 2022.
75          Section 3. Section 63N-4-302 is amended to read:
76          63N-4-302. Definitions.
77          As used in this part:
78          (1) (a) "Affiliate" means a person that directly, or indirectly through one or more
79     intermediaries, controls, is controlled by, or is under common control with another person.
80          (b) For the purposes of this part, a person controls another person if the person holds,
81     directly or indirectly, the majority voting or ownership interest in the controlled person or has
82     control over the day-to-day operations of the controlled person by contract or by law.
83          (2) "Claimant" means a resident or nonresident person that has state taxable income.
84          (3) "Closing date" means the date on which a rural investment company [has collected]
85     collects:
86          (a) all of the investments described in Subsection 63N-4-303(7) related to phase one
87     investment authority; or

88          (b) all of the investments described in Subsection 63N-4-303(7) related to phase two
89     investment authority.
90          (4) (a) "Credit-eligible contribution" means an investment of cash by a claimant in a
91     rural investment company that is or will be eligible for a tax credit as evidenced by notification
92     issued by the office under Subsection 63N-4-303(5)(c).
93          (b) The investment shall purchase an equity interest in the rural investment company or
94     purchase, at par value or premium, a debt instrument issued by the rural investment company
95     that has a maturity date at least five years after the closing date.
96          (5) "Eligible small business" means a business that at the time of an initial growth
97     investment in the business by a rural investment company:
98          (a) has fewer than 150 employees;
99          (b) has less than $10,000,000 in net income for the preceding taxable year;
100          (c) maintains the business's principal business operations in the state; and
101          (d) is engaged in an industry related to:
102          (i) aerospace;
103          (ii) defense;
104          (iii) energy and natural resources;
105          (iv) financial services;
106          (v) life sciences;
107          (vi) outdoor products;
108          (vii) software development;
109          (viii) information technology;
110          (ix) manufacturing; or
111          (x) agribusiness.
112          (6) (a) "Excess return" means the difference between:
113          (i) the present value of all growth investments made by a rural investment company on
114     the day the rural investment company applies to exit the program under Section 63N-4-309,
115     including the present value of all distributions and gains from the growth investments; and
116          (ii) the sum of the amount of the original growth investment and an amount equal to
117     any projected increase in the equity holder's federal or state tax liability, including penalties and
118     interest, related to the equity holder's ownership, management, or operation of the rural

119     investment company.
120          (b) If the amount calculated in Subsection (6)(a) is less than zero, the excess return is
121     equal to zero.
122          (7) "Federally licensed rural business investment company" means a person licensed as
123     a rural business investment company under 7 U.S.C. Sec. 2009cc.
124          (8) "Federally licensed small business investment company" means a person licensed
125     as a small business investment company under 15 U.S.C. Sec. 681.
126          (9) (a) "Full-time employee" means an employee that throughout the year works at
127     least 30 hours per week or meets the customary practices accepted by that industry as full time.
128          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
129     office may make rules that establish additional hour or other criteria to determine what
130     constitutes a full-time employee.
131          (10) (a) "Growth investment" means any capital or equity investment in an eligible
132     small business or any loan made from the investment authority to an eligible small business
133     with a stated maturity at least one year after the date of issuance.
134          (b) "Growth investment" does not include, with respect to phase two investment
135     authority:
136          (i) a secured loan or a revolving line of credit to an eligible small business, unless the
137     eligible small business sought and was denied similar financing from a commercial bank, as
138     established by an affidavit from the president or chief executive officer of the eligible small
139     business; or
140          (ii) any portion of an investment, including any amount reinvested, in an eligible small
141     business that, when added to existing investments in the eligible small business from all rural
142     investment companies under phase two investment authority, exceeds $15,000,000.
143          (11) (a) "High wage" means a wage that is at least 100% of the county average wage.
144          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
145     office may make rules that establish additional criteria to determine what constitutes a high
146     wage.
147          (12) "Investment authority" means the minimum amount of investment a rural
148     investment company must make in eligible small businesses in order for credit-eligible
149     contributions to the rural investment company to qualify for a rural job creation tax credit

150     under Section 59-7-621 or 59-10-1038.
151          (13) (a) "New annual jobs" means the difference between:
152          (i) (A) the monthly average of full-time employees that are paid a high wage at an
153     eligible small business for the preceding calendar year; or
154          (B) if the preceding calendar year contains the initial growth investment, the monthly
155     average of full-time employees that are paid a high wage at an eligible small business for the
156     months including and after the initial growth investment and before the end of the preceding
157     calendar year; and
158          (ii) the number of full-time employees that are paid a high wage at the eligible small
159     business on the date of the initial growth investment.
160          (b) If the amount calculated in Subsection (13)(a) is less than zero, the new annual jobs
161     amount is equal to zero.
162          (14) "Phase one investment authority" means investment authority the office grants a
163     rural investment company based on an application submitted under Subsection
164     63N-4-303(1)(b)(i).
165          (15) "Phase two investment authority" means investment authority the office grants a
166     rural investment company based on an application submitted under Subsection
167     63N-4-303(1)(b)(ii).
168          [(14)] (16) (a) "Principal business operations" means the location where at least 60% of
169     a business's employees work or where employees that are paid at least 60% of a business's
170     payroll work.
171          (b) For the purposes of this part, an out-of-state business that agrees to relocate
172     employees to this state to establish the business's principal business operations in this state
173     using the proceeds of a growth investment is considered to have the business's principal
174     business operations in this state if the business satisfies the requirements of Subsection [(14)]
175     (16)(a) within 180 days after receiving the growth investment, unless the office agrees to a later
176     date.
177          [(15)] (17) "Program" means the provisions of this part applicable to a rural investment
178     company.
179          [(16)] (18) "Rural county" means:
180          (a) with respect to phase one investment authority, any county in this state except Salt

181     Lake, Utah, Davis, Weber, Washington, Cache, Tooele, and Summit counties[.]; or
182          (b) with respect to phase two investment authority, any county in this state except Salt
183     Lake, Utah, Davis, and Weber counties.
184          [(17)] (19) "Rural investment company" means a person approved by the office under
185     Section 63N-4-303.
186          [(18)] (20) (a) "State reimbursement amount" means the difference between:
187          (i) 50% of the rural investment company's credit-eligible capital contributions; and
188          (ii) the product of:
189          (A) the total sum of new annual jobs reported to the [state in the rural investment
190     company's exit report described in Section 63N-4-309] office; and
191          (B) $20,000 with respect to phase one investment authority, or $15,000 with respect to
192     phase two investment authority.
193          (b) If the amount calculated in Subsection [(18)] (20)(a) is less than zero, the state
194     reimbursement amount is equal to zero.
195          [(19)] (21) "Tax credit" means a rural job creation tax credit created by Section
196     59-7-621 or 59-10-1038.
197          [(20)] (22) "Tax credit certificate" means a certificate issued by the office that:
198          (a) lists the name of the person to which the office authorizes a tax credit;
199          (b) lists the person's taxpayer identification number;
200          (c) lists the amount of tax credit that the office authorizes the person to claim for the
201     taxable year; and
202          (d) may include other information as determined by the office.
203          Section 4. Section 63N-4-303 is amended to read:
204          63N-4-303. Application, approval, and allocations.
205          (1) (a) A person seeking approval as a rural investment company shall submit an
206     application to the office.
207          (b) (i) [The] For the investment authority described in Subsection (6)(a)(i), the office
208     shall begin accepting applications on November 1, 2017.
209          (ii) For the investment authority described in Subsection (6)(a)(ii), the office shall
210     begin accepting applications on November 1, 2022.
211          (2) An application submitted under Subsection (1) shall be in a form and in accordance

212     with procedures prescribed by the office, and shall include the following:
213          (a) the total investment authority sought by the applicant, which may not exceed
214     $42,000,000;
215          (b) a copy of the applicant's or an affiliate of the applicant's license as a federally
216     licensed rural business investment company or as a federally licensed small business
217     investment company;
218          (c) evidence that before the date the application is submitted, the applicant or affiliates
219     of the applicant have invested at least $50,000,000 in nonpublic companies located in counties
220     in the United States with fewer than 50,000 inhabitants;
221          (d) a signed affidavit from each claimant that commits to make a credit-eligible capital
222     contribution to the applicant, stating the amount of that commitment; and
223          (e) the sum of all credit-eligible capital contribution commitments described in
224     Subsection (2)(d), which must equal 58% of the total investment authority sought by the
225     applicant.
226          (3) The office shall:
227          (a) review and evaluate the applications submitted under this section within 30 days of
228     receipt in the order in which the applications are received; and
229          (b) consider applications received on the same day to have been received
230     simultaneously.
231          (4) (a) If, after review and evaluation of an application, the office determines that the
232     application does not meet the requirements of Subsection (2), the office shall:
233          (i) deny the application; or
234          (ii) (A) notify the applicant that the application was inadequate and allow the applicant
235     to provide additional information to the office to complete, clarify, or cure defects identified by
236     the office in the application; and
237          (B) inform the applicant that the additional information described in Subsection
238     (4)(a)(ii)(A) must be received by the office within five days of the notice in order to be
239     considered.
240          (b) If an applicant submits additional information to the office in accordance with
241     Subsection (4)(a)(ii), the office shall:
242          (i) consider the application to have been received on the date it was originally received

243     by the office; and
244          (ii) review and evaluate the additional information within 10 days of receiving the
245     additional information.
246          (5) If, after review and evaluation of an application submitted under this section and
247     any additional information submitted in accordance with Subsection (4)(a)(ii), the office
248     determines that the application meets the requirements of Subsection (2), the office shall:
249          (a) determine the amount of investment authority to award the applicant in accordance
250     with Subsection (6);
251          (b) provide to the applicant a written notice of approval as a rural investment company
252     specifying the amount of the applicant's investment authority; and
253          (c) notify each claimant whose affidavit was included in the application under
254     Subsection (2) that the claimant qualifies for a tax credit that will be issued in accordance with
255     Section 63N-4-304.
256          (6) (a) (i) [The] For the first application period described in Subsection (1)(b)(i), the
257     office may not approve more than $42,000,000 in total investment authority and not more than
258     $24,360,000 in total credit-eligible contributions under this part.
259          (ii) For the second application period described in Subsection (1)(b)(ii), the office may
260     not approve more than $42,000,000 in total investment authority and not more than
261     $24,360,000 in total credit-eligible contributions under this part.
262          (b) Subject to Subsection (6)(d), if an application is approved under Subsection (5), the
263     office shall approve the amount of investment authority requested on the application.
264          (c) (i) [The] During the first application period described in Subsection (1)(b)(i), the
265     office may continue to accept applications under this section until the amount of approved
266     investment authority reaches $42,000,000.
267          (ii) During the second application period described in Subsection (1)(b)(ii), the office
268     may continue to accept applications under this section until the amount of approved investment
269     authority reaches $42,000,000.
270          (d) If the office approves multiple applications received simultaneously under
271     Subsection (3) and the total amount of investment authority requested on those applications
272     exceeds the amount of investment authority remaining, the office shall proportionally reduce
273     the investment authority and credit-eligible capital contributions for each of these applications

274     as necessary to avoid exceeding the amount of investment authority and credit-eligible capital
275     contributions remaining.
276          (7) Within 65 days after the day on which a rural investment company receives
277     approval under Subsection (5)(b), the rural investment company shall:
278          (a) collect the total amount of committed credit-eligible capital contributions from each
279     claimant whose affidavit was included in the application under Subsection (2);
280          (b) collect one or more cash equity investments contributed by affiliates of the rural
281     investment company, including employees, officers, and directors of such affiliates, that equal
282     at least 10% of the rural investment company's investment authority;
283          (c) collect one or more cash investments that, when added to the amounts collected
284     under Subsections (7)(a) and (b), equal the rural investment company's investment authority;
285     and
286          (d) send sufficient documentation to the office to prove that the amounts described in
287     this Subsection (7) have been collected.
288          (8) If the rural investment company fails to fully comply with Subsection (7):
289          (a) the rural investment company's approval shall lapse and the corresponding
290     investment authority and credit-eligible capital contributions shall not count toward the limits
291     on the program size described in Subsection (6);
292          (b) if the office awards lapsed investment authority to a rural investment company, the
293     office shall first award lapsed investment authority pro rata to each rural investment company
294     that was awarded less than the requested investment authority under Subsection (6)(d), which a
295     rural investment company may allocate to the rural investment company's investors at the
296     company's discretion; and
297          (c) the office may award any remaining investment authority to new applicants.
298          Section 5. Section 63N-4-305 is amended to read:
299          63N-4-305. Revocation of tax credit certificates and exit.
300          (1) Except as provided in Subsection (2), the office shall revoke a tax credit certificate
301     issued under Section 63N-4-304 if the rural investment company in which the credit-eligible
302     capital contribution was made does any of the following before the rural investment company
303     exits the program in accordance with Section 63N-4-309:
304          (a) fails to invest 100% of the rural investment company's investment authority in

305     growth investments in this state within three years of the closing date;
306          (b) fails to maintain growth investments in this state equal to 100% of the rural
307     investment company's investment authority until the seventh anniversary of the closing date in
308     accordance with this section;
309          (c) makes a distribution or payment that results in the rural investment company having
310     less than 100% of the rural investment company's investment authority invested in growth
311     investments in this state or available for investment in growth investments and held in cash and
312     other marketable securities;
313          (d) (i) with respect to phase one investment authority, fails to maintain growth
314     investments equal to 70% of the rural investment company's investment authority in eligible
315     small businesses that maintain their principal business operations in a rural county; or
316          (ii) with respect to phase two investment authority, fails to maintain growth
317     investments equal to 100% of the rural investment company's investment authority in eligible
318     small businesses that maintain their principal business operations in a rural county;
319          (e) invests more than $5,000,000 from the investment authority in the same eligible
320     small business, including amounts invested in affiliates of the eligible small business, exclusive
321     of growth investments made with repaid or redeemed growth investments or interest or profits
322     realized on the repaid or redeemed growth investments; [or]
323          (f) makes a growth investment in an eligible small business that directly, or indirectly
324     through an affiliate:
325          (i) owns or has the right to acquire an ownership interest in the rural investment
326     company, an affiliate of the rural investment company, or an investor in the rural investment
327     company; or
328          (ii) makes a loan to or an investment in the rural investment company, an affiliate of
329     the rural investment company, or an investor in the rural investment company[.]; or
330          (g) fails to timely provide a document described in Subsection 63N-4-307(1)(d).
331          (2) (a) (i) For the purposes of Subsection (1), an investment is maintained even if the
332     investment is sold or repaid if the rural investment company reinvests an amount equal to the
333     capital returned or recovered by the fund from the original investment, exclusive of any profits
334     realized, in other growth investments in this state within 12 months of the receipt of such
335     capital.

336          (ii) Amounts received periodically by a rural investment company are treated as
337     continually invested in growth investments if the amounts are reinvested in one or more growth
338     investments by the end of the following calendar year.
339          (iii) A rural investment company is not required to reinvest capital returned from
340     growth investments after the sixth anniversary of the closing date and such growth investments
341     are considered as being held continuously by the rural investment company through the seventh
342     anniversary of the closing date.
343          (b) (i) Subsection [(1)(f)] (1)(g) does not apply to investments in publicly traded
344     securities by an eligible small business or an owner or affiliate of an eligible small business.
345          (ii) Under Subsection [(1)(f)] (1)(g), a rural investment company is not considered an
346     affiliate of a business concern solely as a result of the rural investment company's growth
347     investment.
348          (c) A growth investment in an eligible small business that is not located in a rural
349     county may count toward the requirements of Subsection (1)(d) if the office determines that the
350     eligible small business is located in an economically disadvantaged rural area as defined by
351     rules made by the office in accordance with Title 63G, Chapter 3, Utah Administrative
352     Rulemaking Act.
353          (3) (a) Before revoking one or more tax credit certificates under this section, the office
354     shall notify the rural investment company of the reasons for the pending revocation.
355          (b) If the rural investment company corrects any violation outlined in the notice to the
356     satisfaction of the office within 90 days after the day on which the notice was sent, the office
357     may not revoke the tax credit certificate.
358          (c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
359     office may make rules that establish criteria to determine what constitutes a correction under
360     Subsection (3)(b).
361          (4) If tax credit certificates are revoked under this section:
362          (a) (i) the rural investment company shall make a cash distribution to the office in an
363     amount equal to the sum of all tax credits awarded to persons that have made credit-eligible
364     contributions to the rural investment company; and
365          (ii) if the rural investment company is able to provide documentation to the office that
366     proves that a tax credit described in Subsection (4)(a)(i) has not been claimed, the amount

367     owed under Subsection (4)(a)(i) shall be reduced by the amount of the unclaimed tax credit;
368          (b) the rural investment company's investment authority and credit-eligible capital
369     contributions will not count toward the limits on the program size described in Subsection
370     63N-4-303(6);
371          (c) if the office awards lapsed investment authority to a rural investment company, the
372     office shall first award lapsed investment authority pro rata to each rural investment company
373     that was awarded less than the requested investment authority under Subsection
374     63N-4-303(6)(d), which a rural investment company may allocate to the rural investment
375     company's investors at the rural investment company's discretion; and
376          (d) the office may award any remaining investment authority to new applicants.
377          (5) The office may not revoke a tax credit certificate after a rural investment company
378     has exited the program in accordance with Section 63N-4-309.
379          Section 6. Section 63N-4-307 is amended to read:
380          63N-4-307. Reporting obligations -- Authorization to disclose tax information --
381     Credit for new annual jobs.
382          (1) A rural investment company shall submit an annual report to the office on or before
383     the last day of February for each [previous] preceding calendar year until the rural investment
384     company [has exited] exits the program in accordance with Section 63N-4-309. The annual
385     report shall provide documentation as to the rural investment company's growth investments
386     and include:
387          (a) a bank statement evidencing each growth investment;
388          (b) the name, location, and industry of each business concern receiving a growth
389     investment, including either the determination letter set forth in Section 63N-4-306 or evidence
390     that the business qualified as an eligible small business at the time the investment was made;
391          (c) the number of new annual jobs at each eligible small business for the preceding
392     calendar year, accompanied by a report from a third-party accounting firm attesting that the
393     number of new annual jobs was calculated in accordance with procedures approved by the
394     office; [and]
395          (d) unless provided in a previously submitted annual report, for each eligible small
396     business to which the rural investment company provided a growth investment during the
397     preceding calendar year, a document that expressly directs and authorizes the State Tax

398     Commission to disclose to the office the eligible small business's returns and other information
399     that would otherwise be subject to confidentiality under Section 59-1-403; and
400          [(d)] (e) any other information required by the office.
401          (2) For the annual report due in 2022, each rural investment company shall submit the
402     documents described in Subsection (1)(d) on or before July 1, 2022.
403          [(2)] (3) (a) Within 60 days of receipt of an annual report, the office shall provide
404     written confirmation to the rural investment company of the number of new annual jobs the
405     rural investment company has been credited with for the [previous] preceding calendar year.
406          (b) When granting credit for one or more new annual jobs at an eligible small business
407     that received or held a growth investment from more than one rural investment company during
408     the preceding calendar year, the office shall allocate credit for each new annual job between the
409     rural investment companies:
410          (i) in proportion to each rural investment company's share of the total growth
411     investments the eligible small business received during the calendar year; or
412          (ii) in accordance with any written agreement between the rural investment companies.
413          [(3)] (4) By the fifth business day after the third anniversary of the closing date, a rural
414     investment company shall submit a report to the office providing evidence that the rural
415     investment company is in compliance with the investment requirements of Section 63N-4-305.
416          (5) In accordance with rules made by the office, a rural investment company that
417     receives phase one investment authority and phase two investment authority shall submit an
418     annual report under this section that provides separate information related to the phase one
419     investment authority and the phase two investment authority.
420          (6) (a) The office shall submit the document described in Subsection (1)(d) to the State
421     Tax Commission.
422          (b) Upon receipt of a document described in Subsection (1)(d), the State Tax
423     Commission shall provide the office with the returns and other information the office requests
424     and that the State Tax Commission is directed and authorized to provide.
425          Section 7. Section 63N-4-309 is amended to read:
426          63N-4-309. Exit.
427          (1) (a) On or after the seventh anniversary of the closing date, [a] and on or before the
428     twelfth anniversary of the closing date, each rural investment company [may] shall apply to the

429     office to exit the program and no longer be subject to this part.
430          (b) A rural investment company that receives phase one investment authority and phase
431     two investment authority shall separately apply to exit the program in relation to the phase one
432     investment authority and the phase two investment authority.
433          (2) An application submitted under Subsection (1) shall be in a form and in accordance
434     with procedures prescribed by the office and shall include a calculation of the state
435     reimbursement amount.
436          (3) In evaluating the exit application, if no tax credit certificates have been revoked and
437     the rural investment company has not received a notice of revocation that has remained
438     uncorrected under Subsection 63N-4-305(3)(b), the rural investment company is eligible for
439     exit.
440          (4) (a) The office shall respond to the application within 30 days of receipt and include
441     confirmation of the state reimbursement amount.
442          (b) The office shall not unreasonably deny an application submitted under this section.
443          (c) If the office denies the application, the office shall provide the reasons for the
444     determination to the rural investment company.
445          (5) If a rural investment company fails to submit an exit application in accordance with
446     Subsection (1), the office shall:
447          (a) calculate the state reimbursement amount using the best available information; and
448          (b) provide the confirmation described in Subsection (4)(a) within 30 days of the
449     twelfth anniversary of the closing date.
450          [(5)] (6) Within 60 days after the day on which the confirmation of the state
451     reimbursement amount is received by the rural investment company, the rural investment
452     company shall make a cash distribution to the state in an amount equal to the lesser of:
453          (a) the state reimbursement amount; and
454          (b) the excess return.
455          [(6)] (7) The office shall notify the rural investment company once payments equal to
456     the amount described in Subsection (4) have been received.
457          [(7)] (8) Any amounts collected under this section shall be deposited into the General
458     Fund.
459          Section 8. Retrospective operation.

460          The changes to Sections 59-7-621 and 59-10-1038 have retrospective operation for a
461     taxable year beginning on or after January 1, 2022.