2006 Utah Code - 63-38f-904 — Loans, grants, and assistance -- Repayment -- Earned credits.

     63-38f-904.   Loans, grants, and assistance -- Repayment -- Earned credits.
     (1) (a) A company that qualifies under Section 63-38f-905 may receive loans, grants, or other financial assistance from the fund for expenses related to establishment, relocation, or development of industry in Utah.
     (b) A company creating an economic impediment that qualifies under Section 63-38f-907 may in accordance with this part receive loans, grants, or other financial assistance from the fund for the expenses of the company creating an economic impediment related to:
     (i) relocation to a rural area in Utah of the company creating an economic impediment; and
     (ii) the siting of a replacement company.
     (c) An entity offering an economic opportunity that qualifies under Section 63-38f-908 may:
     (i) receive loans, grants, or other financial assistance from the fund for expenses related to the establishment, relocation, retention, or development of industry in the state; and
     (ii) include infrastructure or other economic development precursor activities that act as a catalyst and stimulus for economic activity likely to lead to the maintenance or enlargement of the state's tax base.
     (2) (a) Subject to Subsection (2)(b), the administrator has authority to determine the structure, amount, and nature of any loan, grant, or other financial assistance from the fund.
     (b) Loans made under Subsection (2)(a) shall be structured so the intended repayment or return to the state, including cash or credit, equals at least the amount of the assistance together with an annual interest charge as negotiated by the administrator.
     (c) Payments resulting from grants awarded from the fund shall be made only after the administrator has determined that the company has satisfied the conditions upon which the payment or earned credit was based.
     (3) (a) (i) Except as provided in Subsection (3)(b), the administrator may provide for a system of earned credits that may be used to support grant payments or in lieu of cash repayment of a fund loan obligation.
     (ii) The value of the credits described in Subsection (3)(a)(i) shall be based on factors determined by the administrator, including:
     (A) the number of Utah jobs created;
     (B) the increased economic activity in Utah; or
     (C) other events and activities that occur as a result of the fund assistance.
     (b) (i) The administrator shall provide for a system of credits to be used to support grant payments or in lieu of cash repayment of a fund loan when loans are made to a company creating an economic impediment.
     (ii) The value of the credits described in Subsection (3)(b)(i) shall be based on factors determined by the administrator, including:
     (A) the number of Utah jobs created;
     (B) the increased economic activity in Utah; or
     (C) other events and activities that occur as a result of the fund assistance.
     (4) (a) A cash loan repayment or other cash recovery from a company receiving assistance under this section, including interest, shall be deposited into the fund.
     (b) The administrator and the Division of Finance shall determine the manner of recognizing and accounting for the earned credits used in lieu of loan repayments or to support

grant payments as provided in Subsection (3).
     (5) (a) At the end of each fiscal year, after the transfer of surplus General Fund revenues has been made to the General Fund Budget Reserve Account as provided in Section 63-38-2.5, any additional unrestricted, undesignated General Fund balance shall be earmarked to the Industrial Assistance Fund in an amount equal to any credit that has accrued under this part.
     (b) These credit amounts may not be used for purposes of the fund as provided in this part until appropriated by the Legislature.

Renumbered and Amended by Chapter 148, 2005 General Session