11-17-1.5 - Purpose of chapter.
11-17-1.5. Purpose of chapter.
(1) (a) The purposes of this chapter are to stimulate the economic growth of the state, topromote employment and achieve greater industrial development in the state, to maintain orenlarge domestic or foreign markets for Utah industrial products, to authorize municipalities andcounties in the state to facilitate capital formation, finance, acquire, own, lease, or sell projectsfor the purpose of reducing, abating, or preventing pollution and to protect and promote thehealth, welfare, and safety of the citizens of the state and to improve local health and the generalwelfare by inducing corporations, persons, or entities engaged in health care services, includinghospitals, nursing homes, extended care facilities, facilities for the care of persons with a physicalor mental disability, and administrative and support facilities, to locate, relocate, modernize, orexpand in this state and to assist in the formation of investment capital with respect thereto.
(b) The Legislature declares that the acquisition or financing, or both, of projects underthe Utah Industrial Facilities and Development Act and the issuance of bonds under it constitutesa proper public purpose.
(2) (a) It is declared that the policy of the state is to encourage the development of freeenterprise and entrepreneurship for the purpose of the expansion of employment opportunitiesand economic development.
(b) It is declared that there exists in the state an inadequate amount of locally managed,pooled venture capital in the private sector available to invest in early stage businesses havinghigh growth potential and that can provide jobs for Utah citizens.
(c) It is found that venture capital is required for healthy economic development ofsectors of the economy having high growth and employment potential.
(d) It is further found that the public economic development purposes of the state and itscounties and municipalities can be fostered by the sale of industrial revenue bonds for thepurpose of providing funding for locally managed, pooled new venture and economicdevelopment funds in accordance with the provisions of this chapter.
(e) It is declared that in order to assure adequate investment of private capital for theseuses, cooperation between private enterprise and state and local government is necessary and inthe public interest and that the facilitation of capital accumulation is the appropriate activity ofthe counties and municipalities of this state and also of the Governor's Office of EconomicDevelopment.
(f) It is found that venture capital funds historically, because of the more intensive natureof their relationship with companies in which they invest, tend to concentrate their investmentswithin a relatively close geographical area to their headquarters location.
(g) It is found and declared that investors in economic development or new ventureinvestment funds require for the overall security of their investments reasonable diversificationof investment portfolios and that, in the course of this diversification, investments are oftensyndicated or jointly made among several financial institutions or funds. It is expressly foundand declared that an economic development or new venture investment fund shall from time totime for its optimal profitability and efficiency (which are important for the security and profit ofbond purchasers providing funds therefor) cooperate with others who may be located outside ofUtah or the county or municipality where the fund is headquartered in the making of investmentsand that the fund shall be free in the interests of reciprocal relationships with other financialinstitutions and diversification of risks to invest from time to time in enterprises that are locatedoutside of Utah or the counties or municipalities. It is specifically found that such activity by a
locally managed fund, funded in whole or in part with the proceeds of bonds sold under thischapter, is within the public purposes of the state and any county or municipality offering thebonds, provided that the fund locates within Utah or the county or municipality its headquarterswhere its actual investment decisions and management functions occur and limits the aggregateamount of its investments in companies located outside of Utah to an amount that in theaggregate does not exceed the aggregate amount of investments made by institutions and fundslocated outside of Utah in Utah companies, that the locally managed fund has sponsored or inwhich it has invested and that it has brought to the attention of investors outside of Utah.
Amended by Chapter 378, 2010 General Session