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.
Amended by Chapter 278, 2010 General Session