Senator Ronald M. Winterton proposes the following substitute bill:


1     
ECONOMIC DEVELOPMENT MODIFICATIONS

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Stephen G. Handy

5     
Senate Sponsor: Ronald M. Winterton

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to economic development.
10     Highlighted Provisions:
11          This bill:
12          ▸     requires the Unified Economic Opportunity Commission, instead of the Business
13     and Economic Development Subcommittee, to identify targeted industries for
14     economic development in the state;
15          ▸     modifies provisions related to the issuance of economic development tax credits by
16     the Governor's Office of Economic Opportunity (GO Utah office), including by:
17               •     defining and modifying terms;
18               •     limiting tax credit eligibility to certain projects involving targeted industries,
19     located within rural areas or approved by the Unified Economic Opportunity
20     Commission;
21               •     repealing provisions allowing a local government entity or community
22     reinvestment agency to receive a tax credit;
23               •     allowing a local government entity to create an economic development zone for
24     the purpose of incentivizing projects within the local government entity's
25     boundaries;
26               •     allowing the GO Utah office to issue tax credits for projects that establish
27     remote work opportunities in the state;
28               •     requiring the GO Utah office to conduct an economic impact study to determine
29     a business entity's eligibility for a tax credit;
30               •     establishing requirements for the GO Utah office to enter into a written
31     agreement with a business entity, including factors for the GO Utah office to
32     consider in determining the duration and amount of tax credit;
33               •     modifying provisions related to the process for a business entity to claim a tax
34     credit; and
35               •     allowing the GO Utah office to make rules for purposes of administration; and
36          ▸     makes technical and conforming changes.
37     Money Appropriated in this Bill:
38          None
39     Other Special Clauses:
40          This bill provides a special effective date.
41     Utah Code Sections Affected:
42     AMENDS:
43          59-7-614.2, as last amended by Laws of Utah 2021, Chapter 282
44          63N-1a-102, as last amended by Laws of Utah 2021, Chapter 381 and renumbered and
45     amended by Laws of Utah 2021, Chapter 282
46          63N-1a-202, as enacted by Laws of Utah 2021, Chapter 282
47          63N-1a-301, as renumbered and amended by Laws of Utah 2021, Chapter 282
48          63N-2-102, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
49     amended by Laws of Utah 2015, Chapter 283
50          63N-2-103, as last amended by Laws of Utah 2021, Chapters 282 and 381
51          63N-2-104, as last amended by Laws of Utah 2021, Chapters 282, 381 and last
52     amended by Coordination Clause, Laws of Utah 2021, Chapter 282
53          63N-2-105, as last amended by Laws of Utah 2021, Chapters 282 and 381
54          63N-2-107, as last amended by Laws of Utah 2021, Chapters 282 and 382
55          63N-3-102, as last amended by Laws of Utah 2021, Chapter 282
56          63N-3-111, as last amended by Laws of Utah 2021, Chapters 282 and 382
57     ENACTS:
58          63N-2-104.1, Utah Code Annotated 1953
59          63N-2-104.2, Utah Code Annotated 1953
60          63N-2-104.3, Utah Code Annotated 1953
61          63N-2-110, Utah Code Annotated 1953
62     REPEALS:
63          63N-2-108, as last amended by Laws of Utah 2016, Chapter 350
64     

65     Be it enacted by the Legislature of the state of Utah:
66          Section 1. Section 59-7-614.2 is amended to read:
67          59-7-614.2. Refundable economic development tax credit.
68          (1) As used in this section:
69          (a) "Business entity" means a taxpayer that meets the definition of "business entity" as
70     defined in Section 63N-2-103.
71          [(b) "Community reinvestment agency" means the same as that term is defined in
72     Section 17C-1-102.]
73          [(c)] (b) "Incremental job" means the same as that term is defined in Section
74     63N-1a-102.
75          [(d) "Local government entity" means the same as that term is defined in Section
76     63N-2-103.]
77          [(e)] (c) "New state revenue" means the same as that term is defined in Section
78     63N-1a-102.
79          [(f)] (d) "Office" means the Governor's Office of Economic Opportunity.
80          (2) Subject to the other provisions of this section, a business entity[, local government
81     entity, or community reinvestment agency] may claim a refundable tax credit for economic
82     development.
83          (3) The tax credit under this section is the amount listed as the tax credit amount on the
84     tax credit certificate that the office issues to the business entity[, local government entity, or
85     community reinvestment agency] for the taxable year.
86          [(4) A community reinvestment agency may claim a tax credit under this section only if
87     a local government entity assigns the tax credit to the community reinvestment agency in
88     accordance with Section 63N-2-104.]
89          [(5) (a) In accordance with any rules prescribed by the commission under Subsection
90     (5)(b), the commission shall make a refund to the following that claim a tax credit under this
91     section:]
92          [(i) a local government entity;]
93          [(ii) a community reinvestment agency; or]
94          [(iii) a business entity if the amount of the tax credit exceeds the business entity's tax
95     liability for a taxable year.]
96          [(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
97     the commission may make rules providing procedures for making a refund to a business entity,
98     local government entity, or community reinvestment agency as required by Subsection (5)(a).]
99          (4) (a) In accordance with any rules prescribed by the commission under Subsection
100     (4)(b), the commission shall make a refund to a business entity that claims a tax credit under
101     this section if the amount of the tax credit exceeds the business entity's tax liability for a
102     taxable year.
103          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
104     commission may make rules providing procedures for making a refund to a business entity as
105     required by Subsection (4)(a).
106          [(6)] (5) (a) In accordance with Section 59-7-159, the Revenue and Taxation Interim
107     Committee shall study the tax credit allowed by this section and make recommendations
108     concerning whether the tax credit should be continued, modified, or repealed.
109          (b) Except as provided in Subsection [(6)] (5)(c), for purposes of the study required by
110     this Subsection [(6)] (5), the office shall provide the following information, if available to the
111     office, to the Revenue and Taxation Interim Committee by electronic means:
112          (i) the amount of tax credit that the office grants to each business entity[, local
113     government entity, or community reinvestment agency] for each calendar year;
114          (ii) the criteria that the office uses in granting a tax credit;
115          [(iii) (A) for a business entity, the new state revenue generated by the business entity
116     for the calendar year; or]
117          [(B) for a local government entity, regardless of whether the local government entity
118     assigns the tax credit in accordance with Section 63N-2-104, the new state revenue generated
119     as a result of a new commercial project within the local government entity for each calendar
120     year;]
121          (iii) the new state revenue generated by the business entity for the calendar year;
122          (iv) estimates for each of the next three calendar years of the following:
123          (A) the amount of tax credits that the office will grant;
124          (B) the amount of new state revenue that will be generated; and
125          (C) the number of new incremental jobs within the state that will be generated;
126          (v) the information contained in the office's latest report under Section 63N-2-106; and
127          (vi) any other information that the Revenue and Taxation Interim Committee requests.
128          (c) (i) In providing the information described in Subsection [(6)] (5)(b), the office shall
129     redact information that identifies a recipient of a tax credit under this section.
130          (ii) If, notwithstanding the redactions made under Subsection [(6)] (5)(c)(i), reporting
131     the information described in Subsection [(6)] (5)(b) might disclose the identity of a recipient of
132     a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to
133     provide the information described in Subsection [(6)] (5)(b) in the aggregate for all business
134     entities [and agencies] that receive the tax credit under this section.
135          (d) The Revenue and Taxation Interim Committee shall ensure that the
136     recommendations described in Subsection [(6)] (5)(a) include an evaluation of:
137          (i) the cost of the tax credit to the state;
138          (ii) the purpose and effectiveness of the tax credit; and
139          (iii) the extent to which the state benefits from the tax credit.
140          Section 2. Section 63N-1a-102 is amended to read:
141          63N-1a-102. Definitions.
142          As used in this title:
143          (1) "Baseline jobs" means the number of full-time employee positions that existed
144     within a business entity in the state before the date on which a project related to the business
145     entity is approved by the office or by the GO Utah board.
146          (2) "Baseline state revenue" means the amount of state tax revenue collected from a
147     business entity or the employees of a business entity during the year before the date on which a
148     project related to the business entity is approved by the office or by the GO Utah board.
149          (3) "Commission" means the Unified Economic Opportunity Commission created in
150     Section 63N-1a-201.
151          (4) "Economic opportunity agency" includes:
152          (a) the Department of Workforce Services;
153          (b) the Department of Cultural and Community Engagement;
154          (c) the Department of Commerce;
155          (d) the Department of Natural Resources;
156          (e) the Office of Energy Development;
157          (f) the State Board of Education;
158          (g) institutions of higher education;
159          (h) the Utah Multicultural Commission;
160          (i) the World Trade Center Utah;
161          (j) local government entities;
162          (k) associations of governments;
163          (l) the Utah League of Cities and Towns;
164          (m) the Utah Association of Counties;
165          (n) the Economic Development Corporation of Utah;
166          (o) the Small Business Administration;
167          (p) chambers of commerce;
168          (q) industry associations;
169          (r) small business development centers; and
170          (s) other entities identified by the commission or the executive director.
171          (5) "Executive director" means the executive director of the office.
172          (6) "Full-time employee" means an employment position that is filled by an employee
173     who works at least 30 hours per week and:
174          (a) may include an employment position filled by more than one employee, if each
175     employee who works less than 30 hours per week is provided benefits comparable to a
176     full-time employee; and
177          (b) may not include an employment position that is shifted from one jurisdiction in the
178     state to another jurisdiction in the state.
179          (7) "GO Utah board" means the Business and Economic Development Subcommittee
180     created in Section 63N-1b-202.
181          (8) "High paying job" means a newly created full-time employee position where the
182     aggregate average annual gross wage of the employment position, not including health care or
183     other paid or unpaid benefits, is:
184          (a) at least 110% of the average wage of the county in which the employment position
185     exists; or
186          (b) for an employment position related to a project described in Chapter 2, Part 1,
187     Economic Development Tax Increment Financing, and that is located within the boundary of a
188     county of the third, fourth, fifth, or sixth class, or located within a municipality in a county of
189     the second class and where the municipality has a population of 10,000 or less:
190          (i) at least 100% of the average wage of the county in which the employment position
191     exists; or
192          (ii) an amount determined by rule made by the office in accordance with Title 63G,
193     Chapter 3, Utah Administrative Rulemaking Act, if the office determines the project is in a
194     county experiencing economic distress.
195          (9) (a) "Incremental job" means a full-time employment position in the state that:
196          (i) did not exist within a business entity in the state before the beginning of a project
197     related to the business entity; and
198          (ii) is created in addition to the number of baseline jobs that existed within a business
199     entity.
200          (b) "Incremental job" includes a full-time employment position where the employee is
201     hired:
202          (i) directly by a business entity; or
203          (ii) by a professional employer organization, as defined in Section 31A-40-102, on
204     behalf of a business entity.
205          (10) "New state revenue" means the state revenue collected from a business entity or a
206     business entity's employees during a calendar year minus the baseline state revenue calculation.
207          (11) "Office" or "GO Utah office" means the Governor's Office of Economic
208     Opportunity.
209          (12) "State revenue" means state tax liability paid by a business entity or a business
210     entity's employees under any combination of the following provisions:
211          (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
212          (b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
213     Information;
214          (c) Title 59, Chapter 10, Part 2, Trusts and Estates;
215          (d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
216          (e) Title 59, Chapter 12, Sales and Use Tax Act.
217          (13) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.
218          (14) "Statewide economic development strategy" means the economic development
219     strategy developed by the commission in accordance with Section 63N-1a-202.
220          (15) "Targeted industry" means an industry or group of industries targeted by the
221     commission under Section 63N-1a-202, for economic development in the state.
222          Section 3. Section 63N-1a-202 is amended to read:
223          63N-1a-202. Commission duties.
224          (1) The commission shall:
225          (a) develop, coordinate, and lead a comprehensive statewide economic development
226     strategy that:
227          (i) unifies and coordinates economic development efforts in the state;
228          (ii) includes key performance indicators for long-term progress toward the state
229     strategic goals;
230          (iii) establishes reporting and accountability processes for the key performance
231     indicators; and
232          (iv) ensures the success of the statewide economic development strategy is shared
233     among the urban and rural areas of the state;
234          (b) receive feedback, input, and reports from economic opportunity agencies regarding
235     programs related to the statewide economic development strategy;
236          (c) develop the statewide economic strategy in view of the state water policy described
237     in Section 73-1-21, including the state's commitment to appropriate conservation, efficient and
238     optimal use of water resources, infrastructure development and improvement, optimal
239     agricultural use, water quality, reasonable access to recreational activities, effective wastewater
240     treatment, and protecting and restoring healthy ecosystems;
241          (d) direct and facilitate changes to or recommend elimination of economic
242     development programs to ensure alignment with the mission and vision described in Section
243     63N-1a-103;
244          (e) at least once every five years, identify [industry clusters on which the commission
245     recommends the state focus recruiting and expansion efforts] which industries or groups of
246     industries shall be targeted for economic development in the state;
247          (f) establish strategies for the recruitment and retention of targeted [industry clusters]
248     industries while respecting the different needs of rural and urban areas throughout the state;
249          (g) establish strategies for supporting entrepreneurship and small business development
250     in the state;
251          (h) analyze the state's projected long-term population and economic growth and plan
252     for the anticipated impacts of the projected growth in a manner that improves quality of life
253     and is consistent with the statewide economic development strategy and state strategic goals;
254          (i) identify gaps and potential solutions related to improving infrastructure, especially
255     as related to the state's projected long-term population growth;
256          (j) support the development of a prepared workforce that can support [critical
257     industries and industry clusters] targeted industries identified by the commission;
258          (k) coordinate and develop strategies that assist education providers and industry to
259     cooperate in supporting students in developing market relevant skills to meet industry needs;
260          (l) develop strategies and plans to ensure comprehensive economic development efforts
261     are targeted to the unique needs of rural areas of the state;
262          (m) study the unique needs of multicultural communities throughout the state and
263     develop household-level plans to ensure residents of the state can participate in economic
264     opportunities in the state;
265          (n) ensure the commission's efforts are, to the extent practicable, data-driven and
266     evidence-based;
267          (o) support an integrated international trade strategy for the state;
268          (p) facilitate coordination among public, private, and nonprofit economic opportunity
269     agencies; and
270          (q) in performing the commission's duties, consider the recommendations of the
271     subcommittees described in Chapter 1b, Commission Subcommittees.
272          (2) The commission shall provide a report to the office for inclusion in the office's
273     annual written report described in Section 63N-1a-306, that includes:
274          (a) the statewide economic development strategy;
275          (b) a description of how the commission fulfilled the commission's statutory purposes
276     and duties during the year, including any relevant findings;
277          (c) the key performance indicators included in the statewide economic development
278     strategy, including data showing the extent to which the indicators are being met; and
279          (d) any legislative recommendations.
280          Section 4. Section 63N-1a-301 is amended to read:
281          63N-1a-301. Creation of office -- Responsibilities.
282          (1) There is created the Governor's Office of Economic Opportunity.
283          (2) The office is:
284          (a) responsible for implementing the statewide economic development strategy
285     developed by the commission; and
286          (b) the industrial and business promotion authority of the state.
287          (3) The office shall:
288          (a) consistent with the statewide economic development strategy, coordinate and align
289     into a single effort the activities of the economic opportunity agencies in the field of economic
290     development;
291          (b) provide support and direction to economic opportunity agencies in establishing
292     goals, metrics, and activities that align with the statewide economic development strategy;
293          (c) administer and coordinate state and federal economic development grant programs;
294          (d) promote and encourage the economic, commercial, financial, industrial,
295     agricultural, and civic welfare of the state;
296          (e) promote and encourage the employment of workers in the state and the purchase of
297     goods and services produced in the state by local businesses;
298          (f) act to create, develop, attract, and retain business, industry, and commerce in the
299     state, in accordance with the statewide economic development plan and commission directives;
300          (g) act to enhance the state's economy;
301          (h) act to assist strategic industries that are likely to drive future economic growth;
302          (i) assist communities in the state in developing economic development capacity and
303     coordination with other communities;
304          (j) identify areas of education and workforce development in the state that can be
305     improved to support economic and business development;
306          (k) consistent with direction from the commission, develop core strategic priorities for
307     the office, which may include:
308          (i) enhancing statewide access to entrepreneurship opportunities and small business
309     support;
310          (ii) focusing industry recruitment and expansion [on strategically chosen clusters] of
311     targeted industries;
312          (iii) ensuring that in awarding competitive economic development incentives the office
313     accurately measures the benefits and costs of the incentives; and
314          (iv) assisting communities with technical support to aid those communities in
315     improving economic development opportunities;
316          (l) submit an annual written report as described in Section 63N-1a-306; and
317          (m) perform other duties as provided by the Legislature.
318          (4) In order to perform its duties under this title, the office may:
319          (a) enter into a contract or agreement with, or make a grant to, a public or private
320     entity, including a municipality, if the contract or agreement is not in violation of state statute
321     or other applicable law;
322          (b) except as provided in Subsection (4)(c), receive and expend funds from a public or
323     private source for any lawful purpose that is in the state's best interest; and
324          (c) solicit and accept a contribution of money, services, or facilities from a public or
325     private donor, but may not use the contribution for publicizing the exclusive interest of the
326     donor.
327          (5) Money received under Subsection (4)(c) shall be deposited [in] into the General
328     Fund as dedicated credits of the office.
329          (6) (a) The office shall:
330          (i) obtain the advice of the GO Utah board before implementing a change to a policy,
331     priority, or objective under which the office operates; and
332          (ii) provide periodic updates to the commission regarding the office's efforts under
333     Subsections (3)(a) and (b).
334          (b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
335     money or services related to the assistance, retention, or recruitment of business, industry, or
336     commerce in the state.
337          Section 5. Section 63N-2-102 is amended to read:
338          63N-2-102. Purpose.
339          This part is enacted to:
340          (1) foster and develop [industry] targeted industries in the state, to [provide additional
341     employment opportunities for Utah's citizens] stimulate community-focused economic growth,
342     and to [improve] diversify and catalyze the state's economy;
343          [(2) address the loss of prospective high paying jobs, the loss of new economic growth,
344     and the corresponding loss of incremental new state and local revenues to competing states
345     caused by economic incentives offered by those states;]
346          (2) create high paying employment opportunities in the state;
347          (3) provide tax credits to attract new commercial projects and new jobs in economic
348     development zones in the state; and
349          (4) provide a cooperative and unified working relationship between state and local
350     economic development efforts.
351          Section 6. Section 63N-2-103 is amended to read:
352          63N-2-103. Definitions.
353          As used in this part:
354          [(1) "Authority" means:]
355          [(a) the Utah Inland Port Authority, created in Section 11-58-201; or]
356          [(b) the Military Installation Development Authority, created in Section 63H-1-201.]
357          [(2) "Authority project area" means a project area of:]
358          [(a) the Utah Inland Port Authority, created in Section 11-58-201; or]
359          [(b) the Military Installation Development Authority, created in Section 63H-1-201.]
360          [(3)] (1) (a) "Business entity" means a person that enters into [an] a written agreement
361     with the office to initiate a new commercial project in Utah that will qualify the person to
362     receive a tax credit under Section 59-7-614.2 or 59-10-1107.
363          (b) With respect to a tax credit authorized by the office in accordance with Subsection
364     [63N-2-104(3)(c)(ii)] 63N-2-104.3(2), "business entity" includes a nonprofit entity.
365          (2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
366     industrial, manufacturing, business park, research park, or other appropriate business related
367     use in a general plan that contemplates future growth.
368          [(4) "Community reinvestment agency" has the same meaning as that term is defined in
369     Section 17C-1-102.]
370          [(5)] (3) "Development zone" means an economic development zone created under
371     Section 63N-2-104.
372          [(6) "Local government entity" means a county, city, town, or authority that enters into
373     an agreement with the office to have a new commercial project that:]
374          [(a) is located within:]
375          [(i) the boundary of the county, city, or town; or]
376          [(ii) an authority project area; and]
377          [(b) qualifies the county, city, town, or authority to receive a tax credit under Section
378     59-7-614.2.]
379          [(7) (a) "New commercial project" means an economic development opportunity that:]
380          [(i) involves new or expanded industrial, manufacturing, distribution, or business
381     services in the state; and]
382          [(ii) advances the statewide economic development strategy.]
383          [(b) "New commercial project" includes an economic development opportunity that
384     involves new or expanded agricultural or mining business services in Utah if the new
385     commercial project is located within a:]
386          [(i) county of the third, fourth, fifth, or sixth class; or]
387          [(ii) municipality that has a population of 10,000 or less and the municipality is in a
388     county of the second class.]
389          [(c) "New commercial project" does not include retail business.]
390          (4) "Local government entity" means a county, city, town, or metro township.
391          (5) "New commercial project" means an economic development opportunity that:
392          (a) involves a targeted industry;
393          (b) is located within:
394          (i) a county of the third, fourth, fifth, or sixth class; or
395          (ii) a municipality that has a population of 10,000 or less and the municipality is
396     located within a county of the second class; or
397          (c) involves an economic development opportunity that the commission determines to
398     be eligible for a tax credit under this part.
399          (6) "Remote work opportunity" means a new commercial project that:
400          (a) does not require a physical office in the state where employees associated with the
401     new commercial project are required to work; and
402          (b) requires employees associated with the new commercial project to:
403          (i) work remotely from a location within the state; and
404          (ii) maintain residency in the state.
405          [(8)] (7) "Significant capital investment" means an investment in capital or fixed assets
406     [in the following amounts], which may include real property, personal property, and other
407     fixtures related to a new commercial project that represents an expansion of existing operations
408     in the state or that increases the business entity's existing workforce in the state[:].
409          [(a) except as described in Subsection (8)(b), an amount of at least $10,000,000 for a
410     new commercial project located within the boundary of a county of the first or second class;]
411          [(b) an amount of at least $500,000 for a new commercial project located within the
412     boundary of a county of the third or fourth class, or located within a municipality in a county of
413     the second class and where the municipality has a population of 10,000 or less;]
414          [(c) an amount of at least $250,000 for a new commercial project located within the
415     boundary of a county of the fifth or sixth class; or]
416          [(d) an amount determined by rule made by the office in accordance with Title 63G,
417     Chapter 3, Utah Administrative Rulemaking Act.]
418          [(9)] (8) "Tax credit" means an economic development tax credit created by Section
419     59-7-614.2 or 59-10-1107.
420          [(10)] (9) "Tax credit amount" means the amount the office lists as a tax credit on a tax
421     credit certificate for a taxable year.
422          [(11)] (10) "Tax credit certificate" means a certificate issued by the office that:
423          (a) lists the name of the business entity[, local government entity, or community
424     development and renewal agency] to which the office authorizes a tax credit;
425          (b) lists the business entity's[, local government entity's, or community development
426     and renewal agency's] taxpayer identification number;
427          (c) lists the amount of tax credit that the office authorizes the business entity[, local
428     government entity, or community development and renewal agency] for the taxable year; and
429          (d) may include other information as determined by the office.
430          (11) "Written agreement" means a written agreement entered into between the office
431     and a business entity under Section 63N-2-104.2.
432          Section 7. Section 63N-2-104 is amended to read:
433          63N-2-104. Creation of economic development zones.
434          (1) The office may create an economic development zone in the state if the following
435     requirements are satisfied:
436          [(a) the area is zoned agricultural, commercial, industrial, manufacturing, business
437     park, research park, or other appropriate business related use in a community-approved master
438     plan that contemplates future growth;]
439          [(b) the request to create a development zone has first been approved by an appropriate
440     local government entity; and]
441          (a) the area is located within a commercial or industrial zone;
442          (b) the local government entity having jurisdiction over the area supports the creation
443     of the development zone; and
444          (c) the local government entity described in Subsection (1)(b) provides or commits to
445     provide local incentives [have been or will be committed to be provided] within the area in
446     accordance with the [community's] local government entity's approved incentive policy [and
447     application process].
448          (2) A local government entity may, for the purpose of incentivizing new commercial
449     projects within the local government entity's boundaries, create an economic development zone
450     if the following requirements are satisfied:
451          (a) the area is located:
452          (i) within a commercial or industrial zone; and
453          (ii) within the geographic boundaries of the local government entity;
454          (b) the local government entity adopts a long-term plan that addresses the following
455     planning elements within the area:
456          (i) transportation and infrastructure;
457          (ii) workforce development; and
458          (iii) housing needs; and
459          (c) the office approves the local government entity's request to create the development
460     zone.
461          [(2) (a) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
462     the office shall make rules establishing the requirements for a business entity or local
463     government entity to qualify for a tax credit for a new commercial project in a development
464     zone under this part.]
465          [(b) The office shall ensure that the requirements described in Subsection (2)(a)
466     include the following:]
467          [(i) the new commercial project is within the development zone;]
468          [(ii) the new commercial project includes direct investment within the geographic
469     boundaries of the development zone;]
470          [(iii) the new commercial project brings new incremental jobs to Utah;]
471          [(iv) the new commercial project includes the creation of high paying jobs in the state,
472     significant capital investment in the state, or significant purchases from vendors, contractors, or
473     service providers in the state, or a combination of these three economic factors;]
474          [(v) the new commercial project generates new state revenues;]
475          [(vi) a business entity, a local government entity, or a community reinvestment agency
476     to which a local government entity assigns a tax credit under this section meets the
477     requirements of Section 63N-2-105; and]
478          [(vii) unless otherwise advisable in light of economic circumstances, the new
479     commercial project relates to the industry clusters identified by the commission under Section
480     63N-1a-202.]
481          [(3) (a) The office, after consultation with the GO Utah board, may enter into a written
482     agreement with a business entity or local government entity authorizing a tax credit to the
483     business entity or local government entity if the business entity or local government entity
484     meets the requirements described in this section.]
485          [(b) (i) With respect to a new commercial project, the office may authorize a tax credit
486     to a business entity or a local government entity, but not both.]
487          [(ii) In determining whether to authorize a tax credit with respect to a new commercial
488     project to a business entity or a local government entity, the office shall authorize the tax credit
489     in a manner that the office determines will result in providing the most effective incentive for
490     the new commercial project.]
491          [(c) (i) Except as provided in Subsection (3)(c)(ii)(A), for a new commercial project
492     that is located within the boundary of a county of the first or second class, the office may not
493     authorize or commit to authorize a tax credit that exceeds:]
494          [(A) 50% of the new state revenues from the new commercial project in any given
495     year; or]
496          [(B) 30% of the new state revenues from the new commercial project over the lesser of
497     the life of a new commercial project or 20 years.]
498          [(ii) If the office authorizes or commits to authorize a tax credit for a new commercial
499     project located within the boundary of:]
500          [(A) a municipality with a population of 10,000 or less located within a county of the
501     second class and that is experiencing economic hardship as determined by the office, the office
502     shall authorize a tax credit of up to 50% of new state revenues from the new commercial
503     project over the lesser of the life of the new commercial project or 20 years;]
504          [(B) a county of the third class, the office shall authorize a tax credit of up to 50% of
505     new state revenues from the new commercial project over the lesser of the life of the new
506     commercial project or 20 years; and]
507          [(C) a county of the fourth, fifth, or sixth class, the office shall authorize a tax credit of
508     50% of new state revenues from the new commercial project over the lesser of the life of the
509     new commercial project or 20 years.]
510          [(iii) Notwithstanding any other provisions of this section, the office may not authorize
511     a tax credit under this section for a new commercial project:]
512          [(A) to a business entity that has claimed a High Cost Infrastructure Development Tax
513     Credit described in Section 79-6-603 related to the same new commercial project; or]
514          [(B) in an amount more than the amount of the capital investment in the new
515     commercial project.]
516          [(d) (i) A local government entity may by resolution assign a tax credit authorized by
517     the office to a community reinvestment agency.]
518          [(ii) The local government entity shall provide a copy of the resolution described in
519     Subsection (3)(d)(i) to the office.]
520          [(iii) If a local government entity assigns a tax credit to a community reinvestment
521     agency, the written agreement described in Subsection (3)(a) shall:]
522          [(A) be between the office, the local government entity, and the community
523     reinvestment agency;]
524          [(B) establish the obligations of the local government entity and the community
525     reinvestment agency; and]
526          [(C) establish the extent to which any of the local government entity's obligations are
527     transferred to the community reinvestment agency.]
528          [(iv) If a local government entity assigns a tax credit to a community reinvestment
529     agency:]
530          [(A) the community reinvestment agency shall retain records as described in
531     Subsection (4)(d); and]
532          [(B) a tax credit certificate issued in accordance with Section 63N-2-105 shall list the
533     community reinvestment agency as the named applicant.]
534          [(4) The office shall ensure that the written agreement described in Subsection (3):]
535          [(a) specifies the requirements that the business entity or local government entity shall
536     meet to qualify for a tax credit under this part;]
537          [(b) specifies the maximum amount of tax credit that the business entity or local
538     government entity may be authorized for a taxable year and over the life of the new commercial
539     project;]
540          [(c) establishes the length of time the business entity or local government entity may
541     claim a tax credit;]
542          [(d) requires the business entity or local government entity to retain records supporting
543     a claim for a tax credit for at least four years after the business entity or local government entity
544     claims a tax credit under this part; and]
545          [(e) requires the business entity or local government entity to submit to audits for
546     verification of the tax credit claimed.]
547          [(5) The office may attribute an incremental job or a high paying job to a new
548     commercial project regardless of whether the job is performed in person, within the
549     development zone or remotely from elsewhere in the state.]
550          Section 8. Section 63N-2-104.1 is enacted to read:
551          63N-2-104.1. Eligibility for tax credit -- Economic impact study.
552          (1) The office shall certify a business entity's eligibility for a tax credit as provided in
553     this section.
554          (2) A business entity is eligible to receive a tax credit for a new commercial project if:
555          (a) the new commercial project:
556          (i) (A) is located and provides direct investment within the geographic boundaries of a
557     development zone; or
558          (B) creates a remote work opportunity;
559          (ii) includes the creation of high paying jobs in the state, significant capital investment
560     in the state, or significant purchases from vendors, contractors, or service providers in the state,
561     or a combination of these three economic factors; and
562          (iii) generates new state revenues; and
563          (b) the business entity has not claimed a High Cost Infrastructure Development Tax
564     Credit under Section 79-6-603 for the same new commercial project.
565          (3) The office shall conduct a study of the economic impacts associated with a new
566     commercial project to determine whether a business entity meets the requirements of
567     Subsection (2).
568          (4) In determining whether a new commercial project meets the requirements of
569     Subsection (2)(a)(ii), the office may attribute an incremental job or a high paying job to a new
570     commercial project regardless of whether the job is performed in person, within a development
571     zone, or remotely from elsewhere in the state.
572          Section 9. Section 63N-2-104.2 is enacted to read:
573          63N-2-104.2. Written Agreement -- Contents -- Grounds for amendment or
574     termination.
575          (1) If the office determines that a business entity is eligible for a tax credit under
576     Section 63N-2-104.1, the office may enter into a written agreement with the business entity
577     that:
578          (a) establishes performance benchmarks for the business entity to claim a tax credit,
579     including any minimum wage requirements;
580          (b) specifies the maximum amount of tax credit that the business entity may be
581     authorized for a taxable year and over the life of the new commercial project, subject to the
582     limitations in Section 63N-2-104.3;
583          (c) establishes the length of time the business entity may claim a tax credit;
584          (d) requires the business entity to retain records supporting a claim for a tax credit for
585     at least four years after the business entity claims the tax credit;
586          (e) requires the business entity to submit to audits for verification of any tax credit
587     claimed; and
588          (f) requires the business entity, in order to claim a tax credit, to meet the requirements
589     of Section 63N-2-105.
590          (2) In establishing the terms of a written agreement, including the duration and amount
591     of tax credit that the business entity may be authorized to receive, the office shall:
592          (a) authorize the tax credit in a manner that provides the most effective incentive for
593     the new commercial project;
594          (b) consider the following factors:
595          (i) whether the new commercial project provides vital or specialized support to supply
596     chains;
597          (ii) whether the new commercial project provides an innovative product, technology, or
598     service;
599          (iii) the number and wages of new incremental jobs associated with the new
600     commercial project;
601          (iv) the amount of financial support provided by local government entities for the new
602     commercial project;
603          (v) the amount of capital expenditures associated with the new commercial project;
604          (vi) whether the new commercial project returns jobs transferred overseas;
605          (vii) the rate of unemployment in the county in which the new commercial project is
606     located;
607          (viii) whether the new commercial project creates a remote work opportunity;
608          (ix) whether the new commercial project is located in a development zone created by a
609     local government entity as described in Subsection 63N-2-104(2);
610          (x) whether the business entity commits to hiring Utah workers for the new
611     commercial project;
612          (xi) whether the business entity adopts a corporate citizenry plan or supports initiatives
613     in the state that advance education, gender equality, diversity and inclusion, work-life balance,
614     environmental or social good, or other similar causes;
615          (xii) whether the business entity's headquarters are located within the state;
616          (xiii) the likelihood of other business entities relocating to another state as a result of
617     the new commercial project;
618          (xiv) the necessity of the tax credit for the business entity's expansion in the state or
619     relocation from another state; and
620          (xv) the location and impact of the new commercial project on existing and planned
621     transportation facilities, existing and planned housing, including affordable housing, and public
622     infrastructure; and
623          (c) consult with the GO Utah board.
624          (3) (a) In determining the amount of tax credit that a business entity may be authorized
625     to receive under a written agreement, the office may:
626          (i) authorize a higher or optimized amount of tax credit for a new commercial project
627     located within a development zone created by a local government entity as described in
628     Subsection 63N-2-104(2); and
629          (ii) establish by rule made in accordance with Title 63G, Chapter 3, Utah
630     Administrative Rulemaking Act, a process by which the office closely approximates the
631     amount of taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for
632     a capital project.
633          (b) The office may apply a process described in Subsection (3)(a)(ii) to a business
634     entity only with respect to a new or amended written agreement that takes effect on or after
635     January 1, 2022.
636          (4) If the office identifies any of the following events after entering into a written
637     agreement with a business entity, the office and the business entity shall amend, or the office
638     may terminate, the written agreement:
639          (a) a change in the business entity's organization resulting from a merger with or
640     acquisition of another entity located in the state;
641          (b) a material increase in the business entity's retail operations that results in new state
642     revenue not subject to the incentive; or
643          (c) an increase in the business entity's operations that:
644          (i) is outside the scope of the written agreement or outside the boundaries of a
645     development zone; and
646          (ii) results in new state revenue not subject to the incentive.
647          Section 10. Section 63N-2-104.3 is enacted to read:
648          63N-2-104.3. Limitations on tax credit amount.
649          (1) Except as provided in Subsection (2)(a), for a new commercial project that is
650     located within the boundary of a county of the first or second class, the office may not
651     authorize a tax credit that exceeds:
652          (a) 50% of the new state revenues from the new commercial project in any given year;
653          (b) 30% of the new state revenues from the new commercial project over the lesser of
654     the life of a new commercial project or 20 years; or
655          (c) 35% of the new state revenues from the new commercial project over the lesser of
656     the life of a new commercial project or 20 years, if:
657          (i) the new commercial project brings 2,500 or more new incremental jobs to the state;
658          (ii) the amount of capital expenditures associated with the new commercial project is
659     $1,000,000,000 or more; and
660          (iii) the commission approves the tax credit.
661          (2) If the office authorizes a tax credit for a new commercial project located within the
662     boundary of:
663          (a) a municipality with a population of 10,000 or less located within a county of the
664     second class and that is experiencing economic hardship as determined by the office, the office
665     shall authorize a tax credit of up to 50% of new state revenues from the new commercial
666     project over the lesser of the life of the new commercial project or 20 years;
667          (b) a county of the third class, the office shall authorize a tax credit of up to 50% of
668     new state revenues from the new commercial project over the lesser of the life of the new
669     commercial project or 20 years; and
670          (c) a county of the fourth, fifth, or sixth class, the office shall authorize a tax credit of
671     50% of new state revenues from the new commercial project over the lesser of the life of the
672     new commercial project or 20 years.
673          Section 11. Section 63N-2-105 is amended to read:
674          63N-2-105. Requirements for claiming tax credit -- Application for tax credit
675     certificate -- Procedure.
676          [(1) The office shall certify a business entity's or local government entity's eligibility
677     for a tax credit as provided in this part.]
678          (1) A business entity may claim a tax credit under this part if the office:
679          (a) determines that the business entity is eligible for a tax credit under Section
680     63N-2-104.1;
681          (b) enters into a written agreement with the business entity in accordance with Section
682     63N-2-104.2; and
683          (c) issues a tax credit certificate to the business entity in accordance with this section.
684          (2) A business entity [or local government entity] seeking to receive a tax credit [as
685     provided in this part] shall provide the office with:
686          (a) an application for a tax credit certificate, including a certification, by an officer of
687     the business entity, of any signature on the application;
688          (b) [(i) for a business entity,] documentation of the new state revenues from the
689     business entity's new commercial project that were paid during a calendar year; [or]
690          [(ii) for a local government entity, documentation of the new state revenues from the
691     new commercial project within the area of the local government entity that were paid during a
692     calendar year;]
693          (c) known or expected detriments to the state or existing businesses in the state;
694          [(d) if a local government entity seeks to assign the tax credit to a community
695     reinvestment agency as described in Section 63N-2-104, a statement providing the name and
696     taxpayer identification number of the community reinvestment agency to which the local
697     government entity seeks to assign the tax credit;]
698          [(e) (i) with respect to a business entity that seeks to claim a tax credit:]
699          [(A)] (d) a document that expressly directs and authorizes the State Tax Commission to
700     disclose to the office the business entity's returns and other information that would otherwise
701     be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code;
702     [and]
703          [(B)] (e) a document that expressly directs and authorizes the Department of
704     Workforce Services to disclose to the office the business entity's unemployment insurance
705     contribution reports that would otherwise be subject to confidentiality under Section
706     35A-4-312; and
707          (f) documentation that the business entity has satisfied the performance benchmarks
708     outlined in the written agreement.
709          [(ii) with respect to a local government entity that seeks to claim the tax credit:]
710          [(A) a document that expressly directs and authorizes the State Tax Commission to
711     disclose to the office the local government entity's returns and other information that would
712     otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal
713     Revenue Code; and]
714          [(B) if the new state revenues collected as a result of a new commercial project are
715     attributable in whole or in part to a new or expanded industrial, manufacturing mining,
716     agricultural, distribution, or business service within a new commercial project within the area
717     of the local government entity, a document signed by an authorized representative of the new
718     or expanded industrial, manufacturing, mining, agricultural, distribution, or business service
719     that:]
720          [(I) expressly directs and authorizes the State Tax Commission to disclose to the office
721     the returns of the new or expanded industrial, manufacturing, distribution, or business service
722     and other information that would otherwise be subject to confidentiality under Section
723     59-1-403 or Section 6103, Internal Revenue Code; and]
724          [(II) lists the taxpayer identification number of the new or expanded industrial,
725     manufacturing, mining, agricultural, distribution, or business service; or]
726          [(iii) with respect to a local government entity that seeks to assign the tax credit to a
727     community reinvestment agency:]
728          [(A) a document signed by the members of the governing body of the community
729     reinvestment agency that expressly directs and authorizes the State Tax Commission to
730     disclose to the office the returns of the community reinvestment agency and other information
731     that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103,
732     Internal Revenue Code; and]
733          [(B) if the new state revenues collected as a result of a new commercial project are
734     attributable in whole or in part to a new or expanded industrial, manufacturing, mining,
735     agricultural, distribution, or business service within a new commercial project within the
736     community reinvestment agency, a document signed by an authorized representative of the new
737     or expanded industrial, manufacturing, mining, agricultural, distribution, or business service
738     that:]
739          [(I) expressly directs and authorizes the State Tax Commission to disclose to the office
740     the returns of the new or expanded industrial, manufacturing, mining, agricultural, distribution,
741     or business service and other information that would otherwise be subject to confidentiality
742     under Section 59-1-403 or Section 6103, Internal Revenue Code; and]
743          [(II) lists the taxpayer identification number of the new or expanded industrial,
744     manufacturing, mining, agricultural, distribution, or business service; and]
745          [(f) for a business entity only, documentation that the business entity has satisfied the
746     performance benchmarks outlined in the written agreement described in Subsection
747     63N-2-104(3)(a), and as defined by rule made in accordance with Title 63G, Chapter 3, Utah
748     Administrative Rulemaking Act, including the creation of new:]
749          [(i) incremental jobs;]
750          [(ii) high paying jobs; and]
751          [(iii) state revenue.]
752          (3) (a) (i) The office shall submit the [documents] document described in Subsection
753     [(2)(e)] (2)(d) to the State Tax Commission.
754          [(b)] (ii) Upon receipt of [a] the document described in Subsection [(2)(e)] (2)(d), the
755     State Tax Commission shall provide the office with the returns and other information requested
756     by the office that the State Tax Commission is directed or authorized to provide to the office in
757     accordance with Subsection [(2)(e)] (2)(d).
758          (b) (i) The office shall submit the document described in Subsection (2)(e) to the
759     Department of Workforce Services.
760          (ii) Upon receipt of the document described in Subsection (2)(e), the Department of
761     Workforce Services shall provide the office with the information that the Department of
762     Workforce Services is directed or authorized to provide to the office in accordance with
763     Subsection (2)(e).
764          (4) If the returns and other information provided under Subsections (2) and (3) provide
765     the office with a reasonable justification for authorizing or continuing a tax credit, the office
766     shall:
767          (a) determine the amount of the tax credit to be granted to the business entity,
768     consistent with the terms of the written agreement;
769          (b) issue a tax credit certificate to the business entity; and
770          (c) provide a digital record of the tax credit certificate to the State Tax Commission.
771          [(4) If, with respect to an agreement described in Subsection 63N-2-104(3)(a) between
772     the office and a business entity, the office identifies one of the following events, the office and
773     the business entity shall amend or the office may terminate the agreement:]
774          [(a) a change in the business entity's organization resulting from a merger with or
775     acquisition of another entity located in the state;]
776          [(b) a material increase in the business entity's retail operations that results in new state
777     revenue not subject to the incentive; or]
778          [(c) an increase in the business entity's operations that:]
779          [(i) is outside the scope of the agreement or outside the boundaries of a development
780     zone; and]
781          [(ii) results in new state revenue not subject to the incentive.]
782          [(5) If, after review of the returns and other information provided by the State Tax
783     Commission, or after review of the ongoing performance of the business entity or local
784     government entity, the office determines that the returns and other information are inadequate
785     to provide a reasonable justification for authorizing or continuing a tax credit, the office shall:]
786          [(a) (i) deny the tax credit; or]
787          [(ii) terminate the agreement described in Subsection 63N-2-104(3)(a) for failure to
788     meet the performance standards established in the agreement; or]
789          [(b) inform the business entity or local government entity that the returns or other
790     information were inadequate and ask the business entity or local government entity to submit
791     new documentation.]
792          [(6) If after review of the returns and other information provided by the State Tax
793     Commission, the office determines that the returns and other information provided by the
794     business entity or local government entity provide reasonable justification for authorizing a tax
795     credit, the office shall, based upon the returns and other information:]
796          [(a) determine the amount of the tax credit to be granted to the business entity, local
797     government entity, or if the local government entity assigns the tax credit as described in
798     Section 63N-2-104, to the community reinvestment agency to which the local government
799     entity assigns the tax credit;]
800          [(b) issue a tax credit certificate to the business entity, local government entity, or if the
801     local government entity assigns the tax credit as described in Section 63N-2-104, to the
802     community reinvestment agency to which the local government entity assigns the tax credit;
803     and]
804          [(c) provide a digital record of the tax credit certificate to the State Tax Commission.]
805          [(7) (a) For purposes of determining the amount of a business entity's tax credit in
806     accordance with this section, the office may establish by rule made in accordance with Title
807     63G, Chapter 3, Utah Administrative Rulemaking Act, a process by which the office closely
808     approximates the amount of taxes the business entity paid under Title 59, Chapter 12, Sales and
809     Use Tax Act, for a capital project.]
810          [(b) The office may apply a process described in Subsection (7)(a) to a business entity
811     only with respect to a new agreement described in Subsection 63N-2-104(3)(a) that takes effect
812     on or after January 1, 2022.]
813          [(8) A business entity, local government entity, or community reinvestment agency
814     may not claim a tax credit unless the business entity, local government entity, or community
815     reinvestment agency has a tax credit certificate issued by the office.]
816          [(9)] (5) (a) A business entity[, local government entity, or community reinvestment
817     agency] may claim a tax credit in the amount listed on the tax credit certificate on its tax return.
818          (b) A business entity[, local government entity, or community reinvestment agency]
819     that claims a tax credit under this section shall retain the tax credit certificate in accordance
820     with Section 59-7-614.2 or 59-10-1107.
821          Section 12. Section 63N-2-107 is amended to read:
822          63N-2-107. Reports of new state revenues, partial rebates, and tax credits.
823          (1) Before October 1 of each year, the office shall submit a report to the Governor's
824     Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of
825     Finance identifying:
826          (a) (i) the total estimated amount of new state revenues created from new commercial
827     projects [in development zones];
828          (ii) the estimated amount of new state revenues from new commercial projects [in
829     development zones] that will be generated from:
830          (A) sales tax;
831          (B) income tax; and
832          (C) corporate franchise and income tax; and
833          (iii) the minimum number of new incremental jobs and high paying jobs that will be
834     created before any tax credit is awarded; and
835          (b) the total estimated amount of tax credits that the office projects that business
836     entities[, local government entities, or community reinvestment agencies] will qualify to claim
837     under this part.
838          (2) By the first business day of each month, the office shall submit a report to the
839     Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the
840     Division of Finance identifying:
841          (a) each new written agreement that the office entered into [by the office] since the last
842     report;
843          (b) the estimated amount of new state revenues that will be generated under each
844     written agreement described in Subsection (2)(a);
845          (c) the estimated maximum amount of tax credits that a business entity[, local
846     government entity, or community reinvestment agency] could qualify for under each written
847     agreement described in Subsection (2)(a); and
848          (d) the minimum number of new incremental jobs and high paying jobs that will be
849     created before any tax credit is awarded.
850          (3) At the reasonable request of the Governor's Office of Planning and Budget, the
851     Office of the Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
852     additional information about the tax credit, new incremental jobs and high paying jobs, costs,
853     and economic benefits related to this part, if the information is part of a public record as
854     defined in Section 63G-2-103.
855          (4) By June 30, the office shall submit to the Economic Development and Workforce
856     Services Interim Committee, the Business, Economic Development, and Labor Appropriations
857     Subcommittee, and the governor, a written report that provides an overview of the
858     implementation and efficacy of the statewide economic development strategy, including an
859     analysis of the extent to which the office's programs are aligned with the prevailing economic
860     conditions expected in the next fiscal year.
861          Section 13. Section 63N-2-110 is enacted to read:
862          63N-2-110. Rulemaking authority.
863          The office may make rules in accordance with Title 63G, Chapter 3, Utah
864     Administrative Rulemaking Act, as necessary to administer this part.
865          Section 14. Section 63N-3-102 is amended to read:
866          63N-3-102. Definitions.
867          As used in this part:
868          (1) "Administrator" means the executive director or the executive director's designee.
869          (2) "Economic opportunities" means unique business situations or community
870     circumstances, including the development of recreation infrastructure and the promotion of the
871     high tech sector in the state, which lend themselves to the furtherance of the economic interests
872     of the state by providing a catalyst or stimulus to the growth or retention, or both, of commerce
873     and industry in the state, including retention of companies whose relocation outside the state
874     would have a significant detrimental economic impact on the state as a whole, regions of the
875     state, or specific components of the state as determined by the GO Utah board.
876          (3) "Restricted Account" means the restricted account known as the Industrial
877     Assistance Account created in Section 63N-3-103.
878          [(4) "Targeted industry" means an industry or group of industries targeted by the GO
879     Utah board under Section 63N-3-111, for economic development in the state.]
880          [(5)] (4) "Talent development grant" means a grant awarded under Section 63N-3-112.
881          Section 15. Section 63N-3-111 is amended to read:
882          63N-3-111. Annual policy considerations.
883          [(1) (a) The GO Utah board shall determine annually which industries or groups of
884     industries shall be targeted industries as defined in Section 63N-3-102.]
885          [(b)] (1) (a) The office shall make recommendations to state and federal agencies, local
886     governments, the governor, and the Legislature regarding policies and initiatives that promote
887     the economic development of targeted industries.
888          [(c)] (b) The office may create one or more voluntary advisory committees that may
889     include public and private stakeholders to solicit input on policy guidance and best practices in
890     encouraging the economic development of targeted industries.
891          (2) In evaluating the economic impact of applications for assistance, the GO Utah
892     board shall use an econometric cost-benefit model.
893          (3) The GO Utah board may establish:
894          (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
895     return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
896     Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
897     such as the rate of unemployment; and
898          (b) minimum applicant expense ratios, as long as they are at least equal to those
899     required under Subsection 63N-3-105(1)(b).
900          Section 16. Repealer.
901          This bill repeals:
902          Section 63N-2-108, Expenditure of amounts received by a local government entity
903     or community reinvestment agency as a tax credit -- Commingling of tax credit amounts
904     with certain other amounts.
905          Section 17. Effective date.
906          This bill takes effect on May 4, 2022, except that the amendments to Section
907     59-7-614.2 in this bill take effect for a taxable year beginning on or after January 1, 2022.