63M-1-908 - Financial assistance to companies that create economic impediments.
63M-1-908. Financial assistance to companies that create economic impediments.
(1) (a) The administrator may provide money from the Industrial Assistance Account to acompany creating an economic impediment if that company:
(i) applies to the administrator;
(ii) relocates to a rural area in Utah; and
(iii) meets the qualifications of Subsection (1)(b).
(b) Except as provided by Subsection (2), to qualify for financial assistance from therestricted account, a company creating an economic impediment shall:
(i) demonstrate to the satisfaction of the administrator that the company creating aneconomic impediment, its replacement company, or in the aggregate the company creating theeconomic impediment and its replacement company:
(A) will expend funds in Utah with employees, vendors, subcontractors, or otherbusinesses in an amount proportional with money provided from the restricted account at aminimum ratio of 2 to 1 per year or other more stringent requirements as established from time totime by the board for a minimum period of five years beginning with the date the loan or grantwas approved; and
(B) can sustain economic activity in the state sufficient to repay, by means of cash orappropriate credits, the loan provided by the restricted account; and
(ii) satisfy other criteria the administrator considers appropriate.
(2) (a) The administrator may exempt a company creating an economic impediment fromthe requirements of Subsection (1)(b)(i)(A) if:
(i) the financial assistance is provided to a company creating an economic impedimentfor the purpose of locating all or any portion of its operations to an economically disadvantagedrural area; or
(ii) its replacement company is part of a targeted industry.
(b) The administrator may not exempt a company creating an economic impedimentfrom the requirement under Subsection 63M-1-905(2)(b) that the loan be structured so that therepayment or return to the state equals at least the amount of the assistance together with anannual interest charge.
(3) The administrator shall:
(a) make findings as to whether or not a company creating an economic impediment, itsreplacement company, or both, have satisfied each of the conditions set forth in Subsection (1);
(b) monitor the compliance by a company creating an economic impediment, itsreplacement company, or both, with:
(i) each of the conditions set forth in Subsection (1); and
(ii) any contract or agreement under Section 63M-1-907 entered into between:
(A) the company creating an economic impediment; and
(B) the state; and
(c) make funding decisions based upon appropriate findings and compliance.
(1) (a) The administrator may provide money from the Industrial Assistance Account to acompany creating an economic impediment if that company:
(i) applies to the administrator;
(ii) relocates to a rural area in Utah; and
(iii) meets the qualifications of Subsection (1)(b).
(b) Except as provided by Subsection (2), to qualify for financial assistance from therestricted account, a company creating an economic impediment shall:
(i) demonstrate to the satisfaction of the administrator that the company creating aneconomic impediment, its replacement company, or in the aggregate the company creating theeconomic impediment and its replacement company:
(A) will expend funds in Utah with employees, vendors, subcontractors, or otherbusinesses in an amount proportional with money provided from the restricted account at aminimum ratio of 2 to 1 per year or other more stringent requirements as established from time totime by the board for a minimum period of five years beginning with the date the loan or grantwas approved; and
(B) can sustain economic activity in the state sufficient to repay, by means of cash orappropriate credits, the loan provided by the restricted account; and
(ii) satisfy other criteria the administrator considers appropriate.
(2) (a) The administrator may exempt a company creating an economic impediment fromthe requirements of Subsection (1)(b)(i)(A) if:
(i) the financial assistance is provided to a company creating an economic impedimentfor the purpose of locating all or any portion of its operations to an economically disadvantagedrural area; or
(ii) its replacement company is part of a targeted industry.
(b) The administrator may not exempt a company creating an economic impedimentfrom the requirement under Subsection 63M-1-905(2)(b) that the loan be structured so that therepayment or return to the state equals at least the amount of the assistance together with anannual interest charge.
(3) The administrator shall:
(a) make findings as to whether or not a company creating an economic impediment, itsreplacement company, or both, have satisfied each of the conditions set forth in Subsection (1);
(b) monitor the compliance by a company creating an economic impediment, itsreplacement company, or both, with:
(i) each of the conditions set forth in Subsection (1); and
(ii) any contract or agreement under Section 63M-1-907 entered into between:
(A) the company creating an economic impediment; and
(B) the state; and
(c) make funding decisions based upon appropriate findings and compliance.
Amended by Chapter 278, 2010 General Session