State Codes and Statutes
Statutes > Utah > Title-63m > Chapter-01 > 63m-1-120663M-1-1206. Board duties and powers.
(1) The board shall:
(a) establish criteria and procedures for the allocation and issuance of contingent taxcredits to designated investors by means of certificates issued by the board, provided that acontingent tax credit may not be issued unless the Utah fund of funds:
(i) first agrees to treat the amount of the tax credit redeemed by the state as a loan fromthe state to the Utah fund of funds; and
(ii) agrees to repay the loan upon terms and conditions established by the board;
(b) establish criteria and procedures for assessing the likelihood of future certificateredemptions by designated investors, including:
(i) criteria and procedures for evaluating the value of investments made by the Utah fundof funds; and
(ii) the returns from the Utah fund of funds;
(c) establish criteria and procedures for registering and redeeming contingent tax creditsby designated investors holding certificates issued by the board;
(d) establish a target rate of return or range of returns on venture capital investments ofthe Utah fund of funds;
(e) establish criteria and procedures governing commitments obtained by the board fromdesignated purchasers including:
(i) entering into commitments with designated purchasers; and
(ii) drawing on commitments to redeem certificates from designated investors;
(f) have power to:
(i) expend funds;
(ii) invest funds;
(iii) issue debt and borrow funds;
(iv) enter into contracts;
(v) insure against loss; and
(vi) perform any other act necessary to carry out its purpose; and
(g) make, amend, and repeal rules for the conduct of its affairs, consistent with this partand in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(2) (a) All rules made by the board under Subsection (1)(g) are subject to review by theLegislative Management Committee:
(i) whenever made, modified, or repealed; and
(ii) in each even-numbered year.
(b) Subsection (2)(a) does not preclude the legislative Administrative Rules ReviewCommittee from reviewing and taking appropriate action on any rule made, amended, or repealedby the board.
(3) (a) The criteria and procedures established by the board for the allocation andissuance of contingent tax credits shall:
(i) include the contingencies that must be met for a certificate and its related tax creditsto be:
(A) issued by the board;
(B) transferred by a designated investor; and
(C) redeemed by a designated investor in order to receive a contingent tax credit; and
(ii) tie the contingencies for redemption of certificates to:
(A) the targeted rates of return and scheduled redemptions of equity interests purchasedby designated investors in the Utah fund of funds; and
(B) the scheduled principal and interest payments payable to designated investors thathave made loans or other debt obligations to the Utah fund of funds.
(b) The board may not issue contingent tax credits under this part prior to July 1, 2004.
(4) (a) The board may charge a placement fee to the Utah fund of funds for the issuanceof a certificate and related contingent tax credit to a designated investor.
(b) The fee shall:
(i) be charged only to pay for reasonable and necessary costs of the board; and
(ii) not exceed .5% of the private investment of the designated investor.
(5) The board's criteria and procedures for redeeming certificates:
(a) shall give priority to the redemption amount from the available funds in theredemption reserve; and
(b) to the extent there are insufficient funds in the redemption reserve to redeemcertificates, shall grant the board the option to redeem certificates:
(i) by certifying a contingent tax credit to the designated investor; or
(ii) by making demand on designated purchasers consistent with the requirements ofSection 63M-1-1221.
(6) (a) The board shall, in consultation with the corporation, publish an annual report ofthe activities conducted by the Utah fund of funds, and submit the report to the governor and theEconomic Development and Revenue Appropriations Subcommittee.
(b) The annual report shall:
(i) include a copy of the audit of the Utah fund of funds and a valuation of the assets ofthe Utah fund of funds;
(ii) review the progress of the investment fund allocation manager in implementing itsinvestment plan; and
(iii) describe any redemption or transfer of a certificate issued under this part.
(c) The annual report may not identify any specific designated investor who hasredeemed or transferred a certificate.
(d) (i) Beginning July 1, 2006, and thereafter every two years, the board shall publish aprogress report which shall evaluate the progress of the state in accomplishing the purposesstated in Section 63M-1-1202.
(ii) The board shall give a copy of the report to the Legislature.
Amended by Chapter 323, 2010 General Session
