63M-1-905 - Loans, grants, and assistance -- Repayment -- Earned credits.
63M-1-905. Loans, grants, and assistance -- Repayment -- Earned credits.
(1) (a) A company that qualifies under Section 63M-1-906 may receive loans, grants, orother financial assistance from the Industrial Assistance Account for expenses related toestablishment, relocation, or development of industry in Utah.
(b) A company creating an economic impediment that qualifies under Section63M-1-908 may in accordance with this part receive loans, grants, or other financial assistancefrom the restricted account for the expenses of the company creating an economic impedimentrelated to:
(i) relocation to a rural area in Utah of the company creating an economic impediment;and
(ii) the siting of a replacement company.
(c) An entity offering an economic opportunity that qualifies under Section 63M-1-909may:
(i) receive loans, grants, or other financial assistance from the restricted account forexpenses related to the establishment, relocation, retention, or development of industry in thestate; and
(ii) include infrastructure or other economic development precursor activities that act as acatalyst and stimulus for economic activity likely to lead to the maintenance or enlargement ofthe state's tax base.
(2) (a) Subject to Subsection (2)(b), the administrator has authority to determine thestructure, amount, and nature of any loan, grant, or other financial assistance from the restrictedaccount.
(b) Loans made under Subsection (2)(a) shall be structured so the intended repayment orreturn to the state, including cash or credit, equals at least the amount of the assistance togetherwith an annual interest charge as negotiated by the administrator.
(c) Payments resulting from grants awarded from the restricted account shall be madeonly after the administrator has determined that the company has satisfied the conditions uponwhich the payment or earned credit was based.
(3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for asystem of earned credits that may be used to support grant payments or in lieu of cash repaymentof a restricted account loan obligation.
(ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factorsdetermined by the administrator, including:
(A) the number of Utah jobs created;
(B) the increased economic activity in Utah; or
(C) other events and activities that occur as a result of the restricted account assistance.
(b) (i) The administrator shall provide for a system of credits to be used to support grantpayments or in lieu of cash repayment of a restricted account loan when loans are made to acompany creating an economic impediment.
(ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factorsdetermined by the administrator, including:
(A) the number of Utah jobs created;
(B) the increased economic activity in Utah; or
(C) other events and activities that occur as a result of the restricted account assistance.
(4) (a) A cash loan repayment or other cash recovery from a company receiving
assistance under this section, including interest, shall be deposited into the restricted account.
(b) The administrator and the Division of Finance shall determine the manner ofrecognizing and accounting for the earned credits used in lieu of loan repayments or to supportgrant payments as provided in Subsection (3).
(5) (a) (i) At the end of each fiscal year, the unrestricted, undesignated General Fundbalance after the transfers of surplus of General Fund revenues described in this Subsection (5)(a)shall be earmarked to the Industrial Assistance Account in an amount equal to any credit that hasaccrued under this part.
(ii) The earmark under Subsection (5)(a)(i) shall be capped at $50,000,000, at which timeno subsequent contributions may be made and any interest accrued above the $50,000,000 capshall be deposited into the General Fund.
(b) The earmark required by Subsection (5)(a) shall be made after the transfer of surplusGeneral Fund revenues is made:
(i) to the General Fund Budget Reserve Account as provided in Section 63J-1-312; and
(ii) beginning with the fiscal year ending June 30, 2007, as provided in Section63J-1-314.
(c) These credit amounts may not be used for purposes of the restricted account asprovided in this part until appropriated by the Legislature.
Amended by Chapter 245, 2010 General Session
Amended by Chapter 278, 2010 General Session