Senator Ann Millner proposes the following substitute bill:


1     
MANUFACTURING MODERNIZATION GRANT PROGRAM

2     
2022 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Ann Millner

5     
House Sponsor: Jefferson Moss

6     

7     LONG TITLE
8     General Description:
9          This bill creates the Manufacturing Modernization Grant Program.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     creates the Manufacturing Modernization Grant Program within the Governor's
14     Office of Economic Opportunity;
15          ▸     provides rulemaking authority;
16          ▸     includes a sunset date;
17          ▸     creates reporting requirements; and
18          ▸     makes technical and conforming changes.
19     Money Appropriated in this Bill:
20          This bill appropriates in fiscal year 2023:
21          ▸     to Governor's Office of Economic Opportunity -- Business Development ---
22     Corporate Recruitment and Business Services, as a one-time appropriation:
23               •     from General Fund, One-time, $10,000,000.
24     Other Special Clauses:
25          None

26     Utah Code Sections Affected:
27     AMENDS:
28          63I-1-263, as last amended by Laws of Utah 2021, Chapters 70, 72, 84, 90, 171, 196,
29     260, 280, 282, 345, 382, 401, 421 and last amended by Coordination Clause, Laws
30     of Utah 2021, Chapter 382
31     ENACTS:
32          63N-3-801, Utah Code Annotated 1953
33          63N-3-802, Utah Code Annotated 1953
34     

35     Be it enacted by the Legislature of the state of Utah:
36          Section 1. Section 63I-1-263 is amended to read:
37          63I-1-263. Repeal dates, Titles 63A to 63N.
38          (1) In relation to the Utah Transparency Advisory Board, on January 1, 2025:
39          (a) Section 63A-16-102 is repealed;
40          (b) Section 63A-16-201 is repealed; and
41          (c) Section 63A-16-202 is repealed.
42          (2) Subsection 63A-5b-405(5), relating to prioritizing and allocating capital
43     improvement funding, is repealed July 1, 2024.
44          (3) Section 63A-5b-1003, State Facility Energy Efficiency Fund, is repealed July 1,
45     2023.
46          (4) Sections 63A-9-301 and 63A-9-302, related to the Motor Vehicle Review
47     Committee, are repealed July 1, 2023.
48          (5) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
49     1, 2028.
50          (6) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1,
51     2025.
52          (7) Title 63C, Chapter 12, Snake Valley Aquifer Advisory Council, is repealed July 1,
53     2024.
54          (8) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
55     repealed July 1, 2023.
56          (9) Title 63C, Chapter 18, Behavioral Health Crisis Response Commission, is repealed

57     July 1, 2023.
58          (10) Title 63C, Chapter 23, Education and Mental Health Coordinating Council, is
59     repealed July 1, 2026.
60          (11) Title 63A, Chapter 16, Part 7, Data Security Management Council, is repealed
61     July 1, 2025.
62          (12) Section 63G-6a-805, which creates the Purchasing from Persons with Disabilities
63     Advisory Board, is repealed July 1, 2026.
64          (13) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
65     2025.
66          (14) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
67     2024.
68          (15) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
69          (16) Subsection 63J-1-602.1(17), Nurse Home Visiting Restricted Account is repealed
70     July 1, 2026.
71          (17) (a) Subsection 63J-1-602.1(61), relating to the Utah Statewide Radio System
72     Restricted Account, is repealed July 1, 2022.
73          (b) When repealing Subsection 63J-1-602.1(61), the Office of Legislative Research and
74     General Counsel shall, in addition to the office's authority under Subsection 36-12-12(3), make
75     necessary changes to subsection numbering and cross references.
76          (18) Subsection 63J-1-602.2(5), referring to dedicated credits to the Utah Marriage
77     Commission, is repealed July 1, 2023.
78          (19) Subsection 63J-1-602.2(6), referring to the Trip Reduction Program, is repealed
79     July 1, 2022.
80          (20) Subsection 63J-1-602.2(24), related to the Utah Seismic Safety Commission, is
81     repealed January 1, 2025.
82          (21) Title 63J, Chapter 4, Part 5, Resource Development Coordinating Committee, is
83     repealed July 1, 2027.
84          (22) In relation to the advisory committee created in Subsection 63L-11-305(3), on July
85     1, 2022:
86          (a) Subsection 63L-11-305(1)(a), which defines "advisory committee," is repealed; and
87          (b) Subsection 63L-11-305(3), which creates the advisory committee, is repealed.

88          (23) In relation to the Utah Substance Use and Mental Health Advisory Council, on
89     January 1, 2023:
90          (a) Sections 63M-7-301, 63M-7-302, 63M-7-303, 63M-7-304, and 63M-7-306 are
91     repealed;
92          (b) Section 63M-7-305, the language that states "council" is replaced with
93     "commission";
94          (c) Subsection 63M-7-305(1) is repealed and replaced with:
95          "(1) "Commission" means the Commission on Criminal and Juvenile Justice."; and
96          (d) Subsection 63M-7-305(2) is repealed and replaced with:
97          "(2) The commission shall:
98          (a) provide ongoing oversight of the implementation, functions, and evaluation of the
99     Drug-Related Offenses Reform Act; and
100          (b) coordinate the implementation of Section 77-18-104 and related provisions in
101     Subsections 77-18-103(2)(c) and (d).".
102          (24) The Crime Victim Reparations and Assistance Board, created in Section
103     63M-7-504, is repealed July 1, 2027.
104          (25) Title 63M, Chapter 7, Part 6, Utah Council on Victims of Crime, is repealed July
105     1, 2022.
106          (26) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
107          (27) Title 63N, Chapter 1, Part 5, Governor's Economic Development Coordinating
108     Council, is repealed July 1, 2024.
109          (28) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
110          (29) Section 63N-2-512, related to the Hotel Impact Mitigation Fund, is repealed July
111     1, 2028.
112          (30) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
113     January 1, 2021.
114          (b) Section 59-9-107 regarding tax credits against premium taxes is repealed for
115     calendar years beginning on or after January 1, 2021.
116          (c) Notwithstanding Subsection(30)(b), an entity may carry forward a tax credit in
117     accordance with Section 59-9-107 if:
118          (i) the person is entitled to a tax credit under Section 59-9-107 on or before December

119     31, 2020; and
120          (ii) the qualified equity investment that is the basis of the tax credit is certified under
121     Section 63N-2-603 on or before December 31, 2023.
122          (31) Title 63N, Chapter 3, Part 8, Manufacturing Modernization Grant Program, is
123     repealed July 1, 2025.
124          [(31)] (32) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is
125     repealed July 1, 2023.
126          [(32)] (33) Title 63N, Chapter 7, Part 1, Board of Tourism Development, is repealed
127     July 1, 2025.
128          [(33)] (34) Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant
129     Program, is repealed January 1, 2028.
130          Section 2. Section 63N-3-801 is enacted to read:
131     
Part 8. Manufacturing Modernization Grant Program

132          63N-3-801. Definitions.
133          As used in this part:
134          (1) "Grant" means a grant awarded under Section 63N-3-802.
135          (2) "Program" means the Manufacturing Modernization Grant Program created in
136     Section 63N-3-802.
137          (3) "Targeted industry" means an industry or group of industries targeted by the GO
138     Utah board under Section 63N-3-111 for economic development in the state.
139          Section 3. Section 63N-3-802 is enacted to read:
140          63N-3-802. Manufacturing Modernization Grant Program -- Creation -- Purpose
141     -- Requirements -- Rulemaking -- Report.
142          (1) (a) There is created the Manufacturing Modernization Grant Program to be
143     administered by the office.
144          (b) The purpose of the program is to award grants to establish, relocate, retain, or
145     develop manufacturing industry in the state and lessen dependence on manufacturing overseas.
146          (2) (a) An entity that submits a proposal for a grant to the office shall include details in
147     the proposal regarding:
148          (i) how the entity plans to use the grant to fulfill the purpose described in Subsection
149     (1)(b);

150          (ii) any plan to use funding sources in addition to a grant for the proposal; and
151          (iii) any existing or planned partnerships between the entity and another individual or
152     entity to implement the proposal.
153          (b) In evaluating a proposal for a grant, the office shall consider:
154          (i) the likelihood the proposal will accomplish the purpose described in Subsection
155     (1)(b);
156          (ii) the extent to which any additional funding sources or existing or planned
157     partnerships will benefit the proposal; and
158          (iii) the viability and sustainability of the proposal.
159          (c) In determining a grant award, the office:
160          (i) shall consult with the GO Utah board; and
161          (ii) may prioritize a targeted industry or an entity with fewer than 250 employees.
162          (3) Before receiving the grant, a grant recipient shall enter into a written agreement
163     with the office that specifies:
164          (a) the grant amount;
165          (b) the time period and structure for distribution of the grant, including any terms and
166     conditions the recipient is required to meet to receive a distribution; and
167          (c) the expenses for which the recipient may use the grant, including:
168          (i) to acquire manufacturing equipment;
169          (ii) production, design, or engineering costs;
170          (iii) specialized employee training;
171          (iv) technology upgrades; or
172          (v) to provide a grant to another individual or entity for the expenses described in
173     Subsections (3)(c)(i) through (iv) or to otherwise fulfill the recipient's proposal.
174          (4) Subject to Subsection (2), the office may, in accordance with Title 63G, Chapter 3,
175     Utah Administrative Rulemaking Act, make rules to establish:
176          (a) the form and process for submitting a proposal to the office for a grant;
177          (b) which entities are eligible to apply for a grant;
178          (c) the method and formula for determining a grant amount; and
179          (d) the reporting requirements for a grant recipient.
180          (5) On or before November 30 of each year, the office shall provide a written report to

181     the Economic Development and Workforce Services Interim Committee regarding:
182          (a) each grant awarded; and
183          (b) the economic impact of each grant.
184          Section 4. Appropriation.
185          The following sums of money are appropriated for the fiscal year beginning July 1,
186     2022, and ending July 1, 2023. These are additions to amounts previously appropriated for
187     fiscal year 2023. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
188     Act, the Legislature appropriates the following sums of money from the funds or accounts
189     indicated for the use and support of the government of the state of Utah.
190     ITEM 1
191          To Governor's Office of Economic Opportunity -- Business Development
192               From General Fund, One-time
$10,000,000

193               Schedule of Programs:
194                    Corporate Recruitment and Business Services     $10,000,000
195          The Legislature intends that:
196          (1) the appropriations under this item be used to award grants under Title 63N, Chapter
197     3, Part 8, Manufacturing Modernization Grant Program; and
198          (2) under Section 63J-1-603, the appropriations under this item not lapse at the close of
199     fiscal year 2023 or 2024 and the use of any nonlapsing funds is limited to the purpose
200     described in Subsection (1) of this item.