Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 390 First Substitute (2018GS)

Sponsor

Rep. Albrecht, C.

Final action

Governor Signed 3/20/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• authorizes a rural employment expansion grant for the creation of new jobs in counties of the fourth, fifth, or sixth class;
• requires the Governor's Office of Economic Development to administer the grant;
• describes the qualifications and process to receive a rural employment expansion grant;
• defines terms; and
• provides a sunset date.

Every vote on this bill

Bill text

RURAL ECONOMIC DEVELOPMENT INCENTIVES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Carl R. Albrecht
Senate Sponsor: 
Don L. Ipson
Cosponsor:
V. Lowry Snow
LONG TITLE
General Description:
This bill creates the Rural Employment Expansion Program within the Governor's
Office of Economic Development.
Highlighted Provisions:
This bill:
▸ authorizes a rural employment expansion grant for the creation of new jobs in
counties of the fourth, fifth, or sixth class;
▸ requires the Governor's Office of Economic Development to administer the grant;
▸ describes the qualifications and process to receive a rural employment expansion
grant;
▸ defines terms; and
▸ provides a sunset date.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2019:
▸ to the Governor's Office of Economic Development -- Rural Employment
Expansion Program as an ongoing appropriation:
• from the General Fund, $728,000.
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63I-1-263
, as last amended by Laws of Utah 2017, Chapters 23, 47, 95, 166, 205, 469,
and 470
63J-1-602.4
, as last amended by Laws of Utah 2017, Chapters 253, 430, and 470
ENACTS:
63N-4-401
, Utah Code Annotated 1953
63N-4-402
, Utah Code Annotated 1953
63N-4-403
, Utah Code Annotated 1953
63N-4-404
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63I-1-263
 is amended to read:
63I-1-263.
Repeal dates, Titles 63A to 63N.
(1) Subsection 
63A-5-104
(4)(h) is repealed on July 1, 2024.
(2) Section 
63A-5-603
, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
(3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July
1, 2018.
(4) Title 63C, Chapter 4b, Commission for the Stewardship of Public Lands, is
repealed November 30, 2019.
(5) Title 63C, Chapter 16, Prison Development Commission Act, is repealed July 1,
2020.
(6) Title 63C, Chapter 17, Point of the Mountain Development Commission Act, is
repealed July 1, 2021.
(7) Title 63C, Chapter 18, Mental Health Crisis Line Commission, is repealed July 1,
2018.
(8) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1,
2023.
(9) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
2020.
(10) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
(11) On July 1, 2025:
(a) in Subsection 
17-27a-404
(3)(c)(ii), the language that states "the Resource
Development Coordinating Committee," is repealed;
(b) Subsection 
23-14-21
(2)(c) is amended to read "(c) provide notification of proposed
sites for the transplant of species to local government officials having jurisdiction over areas
that may be affected by a transplant.";
(c) in Subsection 
23-14-21
(3), the language that states "and the Resource Development
Coordinating Committee" is repealed;
(d) in Subsection 
23-21-2.3
(1), the language that states "the Resource Development
Coordinating Committee created in Section 
63J-4-501
 and" is repealed;
(e) in Subsection 
23-21-2.3
(2), the language that states "the Resource Development
Coordinating Committee and" is repealed;
(f) Subsection 
63J-4-102
(1) is repealed and the remaining subsections are renumbered
accordingly;
(g) Subsections 
63J-4-401
(5)(a) and (c) are repealed;
(h) Subsection 
63J-4-401
(5)(b) is renumbered to Subsection 
63J-4-401
(5)(a) and the
word "and" is inserted immediately after the semicolon;
(i) Subsection 
63J-4-401
(5)(d) is renumbered to Subsection 
63J-4-401
(5)(b);
(j) Sections 
63J-4-501
, 
63J-4-502
, 
63J-4-503
, 
63J-4-504
, and 
63J-4-505
 are repealed;
and
(k) Subsection 
63J-4-603
(1)(e)(iv) is repealed and the remaining subsections are
renumbered accordingly.
(12) (a) Subsection 
63J-1-602.4
(15) is repealed July 1, 2022.
(b) When repealing Subsection 
63J-1-602.4
(15), the Office of Legislative Research and
General Counsel shall, in addition to the office's authority under Subsection 
36-12-12
(3), make
necessary changes to subsection numbering and cross references.
(13) The Crime Victim Reparations and Assistance Board, created in Section
63M-7-504
, is repealed July 1, 2027.
(14) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2027.
(15) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2018.
(16) (a) Title 63N, Chapter 2, Part 4, Recycling Market Development Zone Act, is
repealed January 1, 2021.
(b) Subject to Subsection (16)(c), Sections 
59-7-610
 and 
59-10-1007
 regarding tax
credits for certain persons in recycling market development zones, are repealed for taxable
years beginning on or after January 1, 2021.
(c) A person may not claim a tax credit under Section 
59-7-610
 or 
59-10-1007
:
(i) for the purchase price of machinery or equipment described in Section 
59-7-610
 or
59-10-1007
, if the machinery or equipment is purchased on or after January 1, 2021; or
(ii) for an expenditure described in Subsection 
59-7-610
(1)(b) or 
59-10-1007
(1)(b), if
the expenditure is made on or after January 1, 2021.
(d) Notwithstanding Subsections (16)(b) and (c), a person may carry forward a tax
credit in accordance with Section 
59-7-610
 or 
59-10-1007
 if:
(i) the person is entitled to a tax credit under Section 
59-7-610
 or 
59-10-1007
; and
(ii) (A) for the purchase price of machinery or equipment described in Section
59-7-610
 or 
59-10-1007
, the machinery or equipment is purchased on or before December 31,
2020; or
(B) for an expenditure described in Subsection 
59-7-610
(1)(b) or 
59-10-1007
(1)(b), the
expenditure is made on or before December 31, 2020.
(17) Section 
63N-2-512
 is repealed on July 1, 2021.
(18) (a) Title 63N, Chapter 2, Part 6, Utah Small Business Jobs Act, is repealed
January 1, 2021.
(b) Section 
59-9-107
 regarding tax credits against premium taxes is repealed for
calendar years beginning on or after January 1, 2021.
(c) Notwithstanding Subsection (18)(b), an entity may carry forward a tax credit in
accordance with Section 
59-9-107
 if:
(i) the person is entitled to a tax credit under Section 
59-9-107
 on or before December
31, 2020; and
(ii) the qualified equity investment that is the basis of the tax credit is certified under
Section 
63N-2-603
 on or before December 31, 2023.
(19) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
July 1, 2023.
[
(19)
] 
(20)
 Title 63N, Chapter 9, Part 2, Outdoor Recreational Infrastructure Grant
Program, is repealed January 1, 2023.
[
(20)
] 
(21)
 Title 63N, Chapter 12, Part 3, Utah Broadband Outreach Center, is repealed
July 1, 2018.
[
(21)
] 
(22)
 Title 63N, Chapter 12, Part 4, Career and Technical Education Board, is
repealed July 1, 2018.
Section 2. Section 
63J-1-602.4
 is amended to read:
63J-1-602.4.
List of nonlapsing funds and accounts -- Title 61 through Title 63N.
(1) Funds paid to the Division of Real Estate for the cost of a criminal background
check for a mortgage loan license, as provided in Section 
61-2c-202
.
(2) Funds paid to the Division of Real Estate for the cost of a criminal background
check for principal broker, associate broker, and sales agent licenses, as provided in Section
61-2f-204
.
(3) Certain funds donated to the Department of Human Services, as provided in
Section 
62A-1-111
.
(4) Appropriations from the National Professional Men's Basketball Team Support of
Women and Children Issues Restricted Account created in Section 
62A-1-202
.
(5) Certain funds donated to the Division of Child and Family Services, as provided in
Section 
62A-4a-110
.
(6) Appropriations from the Choose Life Adoption Support Restricted Account created
in Section 
62A-4a-608
.
(7) Appropriations to the Division of Services for People with Disabilities, as provided
in Section 
62A-5-102
.
(8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
underground storage tanks under Section 
63A-9-401
.
(9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
provided in Section 
63C-6-104
.
(10) Funds appropriated or collected for publishing the Office of Administrative Rules'
publications, as provided in Section 
63G-3-402
.
(11) The Immigration Act Restricted Account created in Section 
63G-12-103
.
(12) Money received by the military installation development authority, as provided in
Section 
63H-1-504
.
(13) Appropriations from the Computer Aided Dispatch Restricted Account created in
Section 
63H-7a-303
.
(14) Appropriations from the Unified Statewide 911 Emergency Service Account
created in Section 
63H-7a-304
.
(15) Appropriations from the Utah Statewide Radio System Restricted Account created
in Section 
63H-7a-403
.
(16) The Employability to Careers Program Restricted Account created in Section
63J-4-703
. 
(17) Appropriations to the Utah Science Technology and Research Initiative created in
Section 
63M-2-301
.
(18) Appropriations to fund the Governor's Office of Economic Development's
Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
(19) Funds collected for directing and administering the C-PACE district created in
Section 
11-42a-302
.
(20) Appropriations to fund the Governor's Office of Economic Development's Rural
Employment Expansion Program, as described in Title 63N, Chapter 4, Part 4, Rural
Employment Expansion Program.
[
(20)
] 
(21)
 The Motion Picture Incentive Account created in Section 
63N-8-103
.
[
(21)
] 
(22)
 Certain money payable for commission expenses of the Pete Suazo Utah
Athletic Commission, as provided under Section 
63N-10-301
.
Section 3. Section 
63N-4-401
 is enacted to read:
Part 4. Rural Employment Expansion Program
 63N-4-401.
Title.
This part is known as the "Rural Employment Expansion Program."
Section 4. Section 
63N-4-402
 is enacted to read:
 63N-4-402.
Definitions.
As used in this part:
(1) (a) "Business entity" means a sole proprietorship, partnership, association, joint
venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
a business.
(b) "Business entity" does not include a business primarily engaged in the following:
(i) construction;
(ii) staffing;
(iii) retail trade; or
(iv) public utility activities.
(2) "Immediate family member" means a spouse, child, parent, sibling, grandparent, or
grandchild.
(3) "New full-time employee position" means a position that has been newly created in
addition to the highest baseline count of employment positions that existed within a business
entity during the previous taxable year and is filled by an employee working at least 30 hours
per week:
(a) in a county of the fourth, fifth, or sixth class;
(b) for a period of at least 12 consecutive months;
(c) in a position that does not primarily involve:
(i) construction;
(ii) retail trade; or
(iii) public utility activities;
(d) where the annual gross wage of the position, not including healthcare or other paid
or unpaid benefits, is at least 125% of the average wage of the county in which the position
exists; and
(e) who is not an immediate family member of an owner or officer of the business
entity.
(4) (a) "Owner or officer" means an individual who owns an ownership interest in an
entity or holds a position where the person has authority to manage, direct, control, or make
decisions for:
(i) the entity or a portion of the entity; or
(ii) an employee, agent, or independent contractor of the entity.
(b) "Owner or officer" includes:
(i) a member of a board of directors or other governing body of an entity; or
(ii) a partner in any type of partnership.
(5) "Rural employment expansion grant" means a grant available under this part.
Section 5. Section 
63N-4-403
 is enacted to read:
 63N-4-403.
Duties of the office.
(1) The office shall:
(a) review a business entity's application for a rural employment expansion grant under
this part in the order in which the application is received by the office;
(b) ensure that a rural employment expansion grant is only awarded to a business entity
that meets the requirements of this part; and
(c) as part of the annual written report described in Section 
63N-1-301
, prepare an
annual evaluation that provides:
(i) the identity of each business entity that was provided a rural employment expansion
grant by the office during the year of the annual report;
(ii) the total amount awarded in rural employment expansion grants for each county;
and
(iii) an evaluation of the effectiveness of the rural employment expansion grant in
bringing significant new employment to rural communities.
(2) The office may:
(a) authorize a rural employment expansion grant for a business entity under this part;
(b) audit a business entity to ensure:
(i) eligibility for a rural employment expansion grant; and
(ii) compliance with this part; and
(c) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and
in accordance with the provisions of this part, make rules regarding the:
(i) form and content of an application for a rural employment expansion grant;
(ii) documentation or other requirements for a business entity to receive a rural
employment expansion grant; and
(iii) administration of rural employment expansion grants, including an appeal process
and relevant timelines and deadlines.
Section 6. Section 
63N-4-404
 is enacted to read:
 63N-4-404.
Rural employment expansion grant application process.
(1) For a fiscal year beginning on or after July 1, 2018, a business entity seeking to
receive a rural employment expansion grant as provided in this part shall provide the office
with an application for a rural employment expansion grant in a form approved by the office
that includes:
(a) a certification, by an officer of the business entity, of each signature on the
application;
(b) a document that specifies the projected number and anticipated wage level of the
new full-time employee positions that the business entity plans to create as the basis for
qualifying for a rural employment expansion grant; and
(c) any additional information required by the office.
(2) (a) If, after review of an application provided by a business entity as described in
Subsection (1), the office determines that the application is inadequate to provide a reasonable
justification for authorizing the rural employment expansion grant, the office shall:
(i) deny the application; or
(ii) inform the business entity that the application is inadequate and ask the business
entity to submit additional documentation.
(b) (i) If the office denies an application, the business entity may appeal the denial to
the office.
(ii) The office shall review any appeal within 10 business days and make a final
determination of the business entity's eligibility for a grant under this part.
(3) If, after review of an application provided by a business entity as described in
Subsection (1), the office determines that the application provides reasonable justification for
authorizing a rural employment expansion grant and if there are available funds for the grant,
the office shall enter into a written agreement with the business entity that:
(a) indicates the maximum rural employment expansion grant amount the business
entity is authorized to receive;
(b) includes a document signed by an officer of the business entity that expressly
directs and authorizes the State Tax Commission to disclose to the office the business entity's
tax returns and other information that would otherwise be subject to confidentiality under
Section 
59-1-403
 or Section 6103, Internal Revenue Code;
(c) describes the documentation required to demonstrate that the business entity has
created the new full-time employee positions described in the application provided under
Subsection (1); and
(d) specifies the deadlines to provide the documentation described in Subsection (3)(c).
(4) (a) Subject to available funds, the office may award a rural employment expansion
grant to a business entity as follows:
(i) $4,000 for each new full-time employee position in a county where the average
county wage is equal to or greater than the state average wage;
(ii) $5,000 for each new full-time employee position in a county where the average
county wage is between 85% and 99% of the state average wage; and
(iii) $6,000 for each new full-time employee position in a county where the average
county wage is less than 85% of the state average wage.
(b) A business entity may qualify for no more than $25,000 in rural employment
expansion grants in any fiscal year.
(5) (a) Subject to available funds, the office shall award a business entity a grant in the
amount allowed under this part if the business entity provides documentation to the office:
(i) in a form prescribed by the office under Subsection (3)(c);
(ii) before the deadline described in Subsection (3)(d); and
(iii) that demonstrates that the business applicant has created new full-time employee
positions.
(b) If a business entity does not provide the documentation described in Subsection
(3)(c) before the deadline described in Subsection (3)(d), the business entity is ineligible to
receive a rural employment expansion grant unless the business entity submits a new
application to be reviewed by the office in accordance with Subsection 
63N-2-903
(1)(a).
Section 7. 
Appropriation.
The following sums of money are appropriated for the fiscal year beginning July 1,
2018, and ending June 30, 2019. These are additions to amounts previously appropriated for
fiscal year 2019. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
Act, the Legislature appropriates the following sums of money from the funds or accounts
indicated for the use and support of the government of the state of Utah.
To Governor's Office of Economic Development -- Rural Employment Expansion
Program
From General Fund
$728,000
Schedule of Programs:
Rural Employment Expansion Program $728,000
Under Section 
63J-1-602
, the Legislature intends that appropriations provided under
this section not lapse at the close of fiscal year 2019.