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HB 62
COMMUNITY ECONOMIC DEVELOPMENT
PROJECT FUND
1996 GENERAL SESSION
STATE OF UTAH
Sponsor: Kelly C. Atkinson
AN ACT RELATING TO COMMUNITY AND ECONOMIC DEVELOPMENT; CREATING
THE COMMUNITY ECONOMIC DEVELOPMENT PROJECT FUND; CREATING
DEFINITIONS; PROVIDING ADMINISTRATION FOR THE FUND; ESTABLISHING
FUNDING DISTRIBUTION CRITERIA FOR GRANTS AND LOANS; DESIGNATING
ENTITIES AUTHORIZED TO RECEIVE FUNDS; ESTABLISHING APPLICATION
PROCEDURES; APPROPRIATING $250,000 FOR FISCAL YEAR 1996-97 TO THE
COMMUNITY ECONOMIC DEVELOPMENT PROJECT FUND; AND PROVIDING FOR
ANNUAL ACCOUNTING.
This act affects sections of Utah Code Annotated 1953 as follows:
ENACTS:
9-2-1501 , Utah Code Annotated 1953
9-2-1502 , Utah Code Annotated 1953
9-2-1503 , Utah Code Annotated 1953
9-2-1504 , Utah Code Annotated 1953
9-2-1505 , Utah Code Annotated 1953
9-2-1506 , Utah Code Annotated 1953
9-2-1507 , Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1.
Section
9-2-1501
is enacted to read:
9-2-1501. Title.
This part is known as the "Community Economic Development Project Fund."
Section 2.
Section
9-2-1502
is enacted to read:
9-2-1502. Definitions.
As used in this part:
(1) "Administrator" means the Department of Community and Economic Development.
(2) "Board" means the Board of Business and Economic Development.
(3) "Fund" means the Community Economic Development Project Fund created in Section
9-2-1503
.
(4) "Rural" means those communities located in the areas of the state defined by the board
in Title 9, Chapter 12, Industrial Assistance Fund, as economically disadvantaged rural targeted
areas.
Section 3.
Section
9-2-1503
is enacted to read:
9-2-1503. Community Economic Development Project Fund created -- Administration.
(1) (a) There is created a restricted account in the General Fund entitled the "Community
Economic Development Project Fund." The fund shall be administered by the administrator with
advice from the board. The administrator may hire appropriate support staff. The cost of
administering the fund shall be paid from monies in the fund.
(b) The administrator shall be the trustee of the fund.
(c) The board shall advise the administrator on relevant operational aspects of any grant or
loan programs established under the authority of this chapter and recommend specific projects to the
administrator that the board considers should receive grant or loan moneys.
(2) The moneys in the fund shall be invested by the state treasurer according to the
procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that all
interest or other earnings derived from the fund moneys shall be deposited in the fund.
Section 4.
Section
9-2-1504
is enacted to read:
9-2-1504. Distribution of fund moneys.
(1) The administrator shall:
(a) establish criteria and procedures for the grant and loan process as provided in Title 63,
Chapter 46a, Utah Administrative Rulemaking Act;
(b) determine the order in which projects will be funded;
(c) make grants and loans from the fund to any of the entities authorized by Subsection (3).
(2) Two percent of the fund moneys may be used by the executive director for purposes
- 2 -
consistent with this chapter, including the payment of reasonable loan processing fees, but may be
used to offset department or board administrative expenses.
(3) Fund moneys remaining after distribution as provided in Subsection (2) shall be
distributed as follows, with at least 50% to be distributed to rural areas of the state either by grant
or loan:
(a) at least 50% of the moneys remaining in the fund shall be distributed as loans to be
repaid to the fund by the entity receiving them, with at least 50% of those loans distributed to
communities meeting the requirements for enterprise zones in Section 9-2-404
;
(b) moneys not distributed as loans under Subsection (a) shall be distributed as grants with:
(i) fifty percent distributed to communities meeting the requirements for enterprise zones
in Section 9-2-404
; and
(ii) fifty percent distributed to communities not meeting the requirements for enterprise
zones in Section 9-2-404
.
Section 5.
Section
9-2-1505
is enacted to read:
9-2-1505. Entities authorized to receive fund moneys.
The administrator, with advice of the board, may make grants or loans to:
(1) local governments; and
(2) regional or statewide nonprofit economic development organizations.
Section 6.
Section
9-2-1506
is enacted to read:
9-2-1506. Application process and priorities.
(1) (a) At least once in each calendar year that moneys are available from the fund for use
by the administrator, the administrator shall provide notice of a grant and loan application period to
interested entities.
(b) The administrator shall accept applications for at least 90 days.
(2) The administrator shall give preference to applications that demonstrate:
(a) substantial leverage with other sources of financing;
(b) substantial contributions to total project costs, including allied contributions from other
sources, such as professional, craft and trade services, and community organizations.
- 3 -
(c) substantial local government project contributions in the form of infrastructure
improvements or other assistance;
(d) projects that encourage ownership, management, and other project-related opportunities;
(e) projects that demonstrate a strong probability of serving the original target group or
income level for a period of at least 15 years;
(f) projects where the applicant has demonstrated the ability, stability, and resources to
complete the project;
(g) projects that appear to serve the greatest need of the target group;
(h) projects that demonstrate economic development benefits for the state; and
(i) projects that allow integration into a local government economic development plan.
Section 7.
Section
9-2-1507
is enacted to read:
9-2-1507. Annual accounting.
(1) The administrator shall monitor the activities of recipients of grants and loans issued
under this part on an annual basis to ensure compliance with the terms and conditions imposed on
the recipient by the administrator or by this part.
(2) The entities receiving grants or loans shall provide the administrator with an annual
accounting of how they have spent the loans or grants provided under this part.
Section 8. Appropriation.
There is appropriated from the General Fund for fiscal year 1996-97, $250,000 to the
Community Economic Development Project Fund created in Section 9-2-1503
.
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