1     
ECONOMIC DEVELOPMENT GRANT AMENDMENTS

2     
2024 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Carl R. Albrecht

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies requirements for grant applications to the Governor's Office of
10     Economic Opportunity.
11     Highlighted Provisions:
12          This bill:
13          ▸     requires the Governor's Office of Economic Opportunity to consider each
14     application for grant funding on its individual merits, regardless of whether the
15     applicant has previously received a grant or award from the Governor's Office of
16     Economic Opportunity;
17          ▸     modifies the requirements for a rural employment expansion grant to specify that a
18     business entity applicant shall demonstrate that it has created new full-time
19     employee positions at 100% or greater of average county wages for the county
20     where the business entity is located; and
21          ▸     makes technical changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          None
26     Utah Code Sections Affected:
27     AMENDS:

28          63N-1a-301, as last amended by Laws of Utah 2022, Chapters 200, 307
29          63N-4-404, as last amended by Laws of Utah 2022, Chapter 362
30     

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 63N-1a-301 is amended to read:
33          63N-1a-301. Creation of office -- Responsibilities.
34          (1) There is created the Governor's Office of Economic Opportunity.
35          (2) The office is:
36          (a) responsible for implementing the statewide economic development strategy
37     developed by the commission; and
38          (b) the industrial and business promotion authority of the state.
39          (3) The office shall:
40          (a) consistent with the statewide economic development strategy, coordinate and align
41     into a single effort the activities of the economic opportunity agencies in the field of economic
42     development;
43          (b) provide support and direction to economic opportunity agencies in establishing
44     goals, metrics, and activities that align with the statewide economic development strategy;
45          (c) subject to Subsection (6), administer and coordinate state and federal economic
46     development grant programs;
47          (d) promote and encourage the economic, commercial, financial, industrial,
48     agricultural, and civic welfare of the state;
49          (e) promote and encourage the employment of workers in the state and the purchase of
50     goods and services produced in the state by local businesses;
51          (f) act to create, develop, attract, and retain business, industry, and commerce in the
52     state;
53          (i) in accordance with the statewide economic development plan and commission
54     directives; and
55          (ii) subject to the restrictions in Section 11-41-103;
56          (g) act to enhance the state's economy;
57          (h) act to assist strategic industries that are likely to drive future economic growth;
58          (i) assist communities in the state in developing economic development capacity and

59     coordination with other communities;
60          (j) identify areas of education and workforce development in the state that can be
61     improved to support economic and business development;
62          (k) consistent with direction from the commission, develop core strategic priorities for
63     the office, which may include:
64          (i) enhancing statewide access to entrepreneurship opportunities and small business
65     support;
66          (ii) focusing industry recruitment and expansion of targeted industries;
67          (iii) ensuring that in awarding competitive economic development incentives the office
68     accurately measures the benefits and costs of the incentives; and
69          (iv) assisting communities with technical support to aid those communities in
70     improving economic development opportunities;
71          (l) submit an annual written report as described in Section 63N-1a-306; and
72          (m) perform other duties as provided by the Legislature.
73          (4) In order to perform its duties under this title, the office may:
74          (a) enter into a contract or agreement with, or make a grant to, a public or private
75     entity, including a municipality, if the contract or agreement is not in violation of state statute
76     or other applicable law;
77          (b) except as provided in Subsection (4)(c), receive and expend funds from a public or
78     private source for any lawful purpose that is in the state's best interest; and
79          (c) solicit and accept a contribution of money, services, or facilities from a public or
80     private donor, but may not use the contribution for publicizing the exclusive interest of the
81     donor.
82          (5) Money received under Subsection (4)(c) shall be deposited into the General Fund as
83     dedicated credits of the office.
84          (6) The office shall consider each application for grant funding under this title on its
85     individual merits, regardless of whether the applicant has previously received a grant or award
86     from the office.
87          [(6)] (7) (a) The office shall:
88          (i) obtain the advice of the GO Utah board before implementing a change to a policy,
89     priority, or objective under which the office operates; and

90          (ii) provide periodic updates to the commission regarding the office's efforts under
91     Subsections (3)(a) and (b).
92          (b) Subsection [(6)(a)(i)] (7)(a)(i) does not apply to the routine administration by the
93     office of money or services related to the assistance, retention, or recruitment of business,
94     industry, or commerce in the state.
95          Section 2. Section 63N-4-404 is amended to read:
96          63N-4-404. Grant application process.
97          (1) For a fiscal year beginning on or after July 1, 2018, a business entity seeking to
98     receive a grant shall provide the office with an application in a form approved by the office that
99     includes:
100          (a) a certification, by an officer of the business entity, of each signature on the
101     application;
102          (b) a document that specifies the projected number and anticipated wage level of the
103     new full-time employee positions that the business entity plans to create as the basis for
104     qualifying for a grant; and
105          (c) any additional information required by the office.
106          (2) (a) If, after review of an application provided by a business entity as described in
107     Subsection (1), the office determines that the application is inadequate to provide a reasonable
108     justification for authorizing the grant, the office shall:
109          (i) deny the application; or
110          (ii) inform the business entity that the application is inadequate and ask the business
111     entity to submit additional documentation.
112          (b) (i) If the office denies an application, the business entity may appeal the denial to
113     the office.
114          (ii) The office shall review any appeal within 10 business days and make a final
115     determination of the business entity's eligibility for a grant.
116          (3) If, after review of an application provided by a business entity as described in
117     Subsection (1), the office determines that the application provides reasonable justification for
118     authorizing a grant and if there are available funds for the grant, the office shall enter into a
119     written agreement with the business entity that:
120          (a) indicates the maximum grant amount the business entity is authorized to receive;

121          (b) includes a document signed by an officer of the business entity that expressly
122     directs and authorizes the State Tax Commission to disclose to the office the business entity's
123     tax returns and other information that would otherwise be subject to confidentiality under
124     Section 59-1-403 or Section 6103, Internal Revenue Code;
125          (c) describes the documentation required to demonstrate that the business entity has
126     created the new full-time employee positions described in the application provided under
127     Subsection (1); and
128          (d) specifies the deadlines to provide the documentation described in Subsection (3)(c).
129          (4) (a) Subject to available funds, the office may award a grant to a business entity as
130     follows:
131          (i) $4,000 for each new full-time employee position in a county where the average
132     county wage is equal to or greater than the state average wage;
133          (ii) $5,000 for each new full-time employee position in a county where the average
134     county wage is between 85% and 99% of the state average wage; and
135          (iii) $6,000 for each new full-time employee position in a county where the average
136     county wage is less than 85% of the state average wage.
137          (b) A business entity may qualify for no more than $250,000 in grants in any fiscal
138     year.
139          (5) (a) Subject to available funds, the office shall award a business entity a grant in the
140     amount allowed under this part if the business entity provides documentation to the office:
141          (i) in a form prescribed by the office under Subsection (3)(c);
142          (ii) before the deadline described in Subsection (3)(d); and
143          (iii) that demonstrates that the business applicant has created new full-time employee
144     positions at 100% or greater of average county wages for the county where the business entity
145     is located.
146          (b) If a business entity does not provide the documentation described in Subsection
147     (3)(c) before the deadline described in Subsection (3)(d), the business entity is ineligible to
148     receive a grant unless the business entity submits a new application to be reviewed by the
149     office in accordance with Subsection (1).
150          (6) Nothing in this part prevents a business entity that has received a grant from
151     concurrently applying for or receiving another grant or incentive administered by the office.

152          (7) If an applicant for a grant is a mining company or mining services company having
153     business operations within five miles of a rural county, the applicant shall be treated as if the
154     applicant were located within the adjacent rural county in determining whether the applicant
155     qualifies for the grant program.
156          Section 3. Effective date.
157          This bill takes effect on May 1, 2024.