Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 146 Second Substitute (2018GS)

Sponsor

Sen. Anderegg, J.

Final action

Governor Signed 3/22/2018

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• modifies the allowable distribution of money from the Industrial Assistance Account;
• requires the Governor's Office of Economic Development to annually report on the grants provided through the Industrial Assistance Account;
• allows some nonprofit organizations engaged in publicizing, developing, and promoting the high tech sector to qualify for a grant from the Industrial Assistance Account;
• provides a sunset date; and
• makes technical changes.

Every vote on this bill

Bill text

TECHNOLOGY SUMMIT INCENTIVES
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jacob L. Anderegg
House Sponsor: 
 Brad R. Wilson
LONG TITLE
General Description:
This bill modifies provisions related to the Industrial Assistance Account.
Highlighted Provisions:
This bill:
▸ modifies the allowable distribution of money from the Industrial Assistance
Account;
▸ requires the Governor's Office of Economic Development to annually report on the
grants provided through the Industrial Assistance Account;
▸ allows some nonprofit organizations engaged in publicizing, developing, and
promoting the high tech sector to qualify for a grant from the Industrial Assistance
Account;
▸ provides a sunset date; and
▸ makes technical changes.
Money Appropriated in this Bill:
This bill appropriates in fiscal year 2019:
▸ to the Economic Development - Industrial Assistance Fund as an ongoing
appropriation:
• from the General Fund, $1,000,000.
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
63N-3-102
, as last amended by Laws of Utah 2016, Chapter 34
63N-3-103
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-3-109
, as renumbered and amended by Laws of Utah 2015, Chapter 283
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(4)(h) is repealed on July 1, 2024.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, State Facility Energy Efficiency Fund, is repealed July 1, 2023.
(3) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July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) Subsections 
63N-3-109
(2)(f) and 
63N-3-109
(2)(g)(i)(C) are 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 
63N-3-102
 is amended to read:
63N-3-102.
Definitions.
As used in this part:
(1) "Administrator" means the executive director or the executive director's designee.
(2) "Best available control technology" means a pollution control method that is
approved by the United States Environmental Protection Agency or the Department of
Environmental Quality to control a certain pollutant type to a specified degree.
(3) "Company creating an economic impediment" means a company that discourages
economic development within a reasonable radius of its location because of:
(a) odors;
(b) noise;
(c) pollution;
(d) health hazards; or
(e) other activities similar to those described in Subsections (3)(a) through (d).
(4) "Economic opportunities" means unique business situations or community
circumstances, including the development of recreation infrastructure 
and the promotion of the
high tech sector in the state
, which lend themselves to the furtherance of the economic interests
of the state by providing a catalyst or stimulus to the growth or retention, or both, of commerce
and industry in the state, including retention of companies whose relocation outside the state
would have a significant detrimental economic impact on the state as a whole, regions of the
state, or specific components of the state as determined by the board.
(5) "Economically disadvantaged rural area" means a geographic area designated by the
board under Section 
63N-3-111
.
(6) "Nonattainment area" means a part of the state where air quality is determined to
exceed the National Ambient Air Quality Standards, as defined in the Clean Air Act
Amendments of 1970, Pub. L. No. 91-604, Sec. 109, for fine particulate matter (PM 2.5).
(7) "Replacement company" means a company locating its business or part of its
business in a location vacated by a company creating an economic impediment.
(8) "Restricted Account" means the restricted account known as the Industrial
Assistance Account created in Section 
63N-3-103
.
(9) "Targeted industry" means an industry or group of industries targeted by the board
under Section 
63N-3-111
, for economic development in the state.
Section 3. Section 
63N-3-103
 is amended to read:
63N-3-103.
Industrial Assistance Account created -- Uses -- Administrator duties
-- Costs.
(1) There is created a restricted account within the General Fund known as the
"Industrial Assistance Account" of which 
annually
:
(a) up to 50% 
of the unencumbered money in the account
 may be used in economically
disadvantaged rural areas;
(b) up to [
25%
] 
the greater of $1,000,000 or 25% of the unencumbered money in the
account
 may be used to take timely advantage of economic opportunities as they arise; and
(c) up to 4% 
of the unencumbered money in the account
 may be used to promote
business and economic development in rural areas of the state with the Business Expansion and
Retention Initiative.
(2) The administrator shall administer:
(a) the restricted account created under Subsection (1), under the policy direction of the
board; and
(b) the Business Expansion and Retention Initiative for the rural areas of the state.
(3) The administrator may hire appropriate support staff to perform the duties required
under this section.
(4) The cost of administering the restricted account shall be paid from money in the
restricted account.
(5) Interest accrued from investment of money in the restricted account shall remain in
the restricted account.
(6) The office shall review the activities and progress of grant recipients under this
chapter on a regular basis and, as part of the office's annual written report described in Section
63N-1-301
, report on the economic impact of activities funded by the grants.
Section 4. Section 
63N-3-109
 is amended to read:
63N-3-109.
Financial assistance to entities offering economic opportunities.
(1) Subject to the duties and powers of the board under Section 
63N-1-402
, the
administrator may provide money from the Industrial Assistance Account to an entity offering
an economic opportunity if that entity:
(a) applies to the administrator; and
(b) meets the qualifications of Subsection (2).
(2) The applicant shall:
(a) demonstrate to the satisfaction of the administrator the nature of the economic
opportunity and the related benefit to the economic well-being of the state by providing
evidence documenting the logical and compelling linkage, either direct or indirect, between the
expenditure of money necessitated by the economic opportunity and the likelihood that the
state's tax base, regions of the state's tax base, or specific components of the state's tax base
will not be reduced but will be maintained or enlarged;
(b) demonstrate how the funding request will act in concert with other state, federal, or
local agencies to achieve the economic benefit;
(c) demonstrate how the funding request will act in concert with free market principles;
(d) in the case of an economic opportunity that includes the retention of jobs,
demonstrate how the potential relocation of jobs outside the state is related to a merger,
acquisition, consolidation, or similar business reason other than the applicant simply requesting
state assistance to remain in the state;
(e) satisfy other criteria the administrator considers appropriate; [
and
]
(f) if the applicant meets the requirements of Subsection (2)(g)(i)(C), demonstrate how
the funding request will be used primarily to fund a program of out-of-state advertising,
marketing, and branding for an annual conference for the high tech sector with at least 10,000
attendees; and
[
(f)
] 
(g)
 be either:
(i) an entity whose purpose is to exclusively or substantially promote, develop, or
maintain the economic welfare and prosperity of the state as a whole, regions of the state, or
specific components of the state, including:
(A) an entity that is a sports development organization under contract with the state for
sports development and sporting event attraction and related activities that provide an
economic impact or promotional value to the state; [
or
]
(B) an entity that implements technology innovation in public schools, including
whole-school one-to-one mobile device technology deployment for the purpose of incubating
technology solutions related to economic and workforce development[
.
]
; or
(C) an entity that is a nonprofit organization engaged in publicizing, developing, and
promoting the high tech sector in the state through activities that include organizing and
hosting an annual conference for the high tech sector with at least 10,000 attendees; or
(ii) a company or individual that 
meets the requirements of Subsections (2)(a) through
(f) but
 does not otherwise qualify under Section 
63N-3-105
.
(3) Subject to the duties and powers of the board under Section 
63N-1-402
, the
administrator shall:
(a) make findings as to whether an applicant has satisfied each of the conditions set
forth in Subsection (2);
(b) establish benchmarks and timeframes in which progress toward the completion of
the agreed upon activity is to occur;
(c) monitor compliance by an applicant with any contract or agreement entered into by
the applicant and the state as provided by Section 
63N-3-107
; and
(d) make funding decisions based upon appropriate findings and compliance.
Section 5. 
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 Economic Development -- Industrial Assistance Fund
From General Fund
$1,000,000
Schedule of Programs:
Industrial Assistance Fund $1,000,000
The Legislature intends that up to $1,000,000 of the appropriation to the Industrial
Assistance Fund be used by the Governor's Office of Economic Development to provide
money to an entity offering an economic opportunity under Subsection 
63N-3-109
(2)(f)(i)(C).
Legislative Review Note
Office of Legislative Research and General Counsel