02-26 11:59 1st Sub. (Buff) H.B. 542
Jon Hawkins proposes the following substitute bill:
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Economic Development Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jon Hawkins
Senate Sponsor:
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LONG TITLE
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General Description:
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This bill amends provisions of the Governor's Office of Economic Opportunity.
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Highlighted Provisions:
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This bill:
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▸ amends and defines terms;
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▸ amends provisions of the Governor's Office of Economic Opportunity;
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▸ repeals the Unified Economic Opportunity Commission and associated committees and
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subcommittees;
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▸ renumbers and amends the Utah Broadband Center and Access Act; and
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▸ makes technical and conforming changes.
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Money Appropriated in this Bill:
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This bill transfers money from the funds or accounts of the Governor's Office of Economic
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Opportunity - Economic Prosperity to the funds or accounts of the Utah Board of Higher
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Education - Administration.
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Other Special Clauses:
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This bill provides a special effective date.
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Utah Code Sections Affected:
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AMENDS:
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11-59-203, as last amended by Laws of Utah 2024, Chapter 413
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35A-8-2203, as last amended by Laws of Utah 2022, Chapters 118, 406
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36-12-23, as last amended by Laws of Utah 2024, Chapter 506
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36-29-109, as enacted by Laws of Utah 2022, Chapter 458
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53B-34-101, as renumbered and amended by Laws of Utah 2022, Chapter 362
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53B-34-102, as renumbered and amended by Laws of Utah 2022, Chapter 362
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53B-34-111, as enacted by Laws of Utah 2024, Chapter 482
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63I-1-263, as last amended by Laws of Utah 2024, Third Special Session, Chapter 4
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63N-1a-102, as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-301, as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-303, as last amended by Laws of Utah 2022, Chapter 362
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63N-1a-304, as renumbered and amended by Laws of Utah 2021, Chapter 282
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63N-1a-305, as renumbered and amended by Laws of Utah 2021, Chapter 282
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63N-1a-306, as last amended by Laws of Utah 2022, Chapter 362
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63N-1a-401, as last amended by Laws of Utah 2024, Chapter 159
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63N-2-103, as last amended by Laws of Utah 2024, Chapter 438
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63N-2-104.3, as last amended by Laws of Utah 2023, Chapter 499
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63N-2-107, as last amended by Laws of Utah 2024, Chapter 159
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63N-16-302, as enacted by Laws of Utah 2024, Chapter 157
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72-1-203, as last amended by Laws of Utah 2024, Chapter 517
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72-1-303, as last amended by Laws of Utah 2024, Chapter 498
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RENUMBERS AND AMENDS:
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72-19-101, (Renumbered from 63N-17-102, as last amended by Laws of Utah 2024,
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Chapter 159)
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72-19-201, (Renumbered from 63N-17-201, as last amended by Laws of Utah 2024,
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Chapter 159)
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72-19-202, (Renumbered from 63N-17-202, as last amended by Laws of Utah 2024,
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Chapter 159)
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72-19-203, (Renumbered from 63N-17-203, as last amended by Laws of Utah 2024,
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Chapter 159)
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72-19-301, (Renumbered from 63N-17-301, as last amended by Laws of Utah 2024,
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Chapter 159)
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72-19-302, (Renumbered from 63N-17-302, as enacted by Laws of Utah 2021,
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Chapter 282)
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72-19-401, (Renumbered from 63N-17-401, as enacted by Laws of Utah 2024,
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Chapter 159)
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REPEALS:
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63N-1a-201, as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-202, as last amended by Laws of Utah 2024, Chapter 159
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63N-1b-102, as last amended by Laws of Utah 2022, Chapter 118
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63N-1b-401, as renumbered and amended by Laws of Utah 2022, Chapter 362
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63N-1b-402, as last amended by Laws of Utah 2023, Chapter 499
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63N-1b-403, as last amended by Laws of Utah 2023, Chapter 499
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63N-1b-404, as last amended by Laws of Utah 2024, Chapter 159
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63N-3-204, as last amended by Laws of Utah 2022, Chapter 362
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Be it enacted by the Legislature of the state of Utah:
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Section 1. Section 11-59-203 is amended to read:
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11-59-203 . Authority duties and responsibilities.
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(1) As the authority plans, manages, and implements the development of the point of the
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mountain state land, the authority shall pursue development strategies and objectives
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designed to:
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(a) maximize the creation of high-quality jobs and encourage and facilitate a highly
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trained workforce;
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(b) ensure strategic residential and commercial growth;
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(c) promote a high quality of life for residents on and surrounding the point of the
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mountain state land, including strategic planning to facilitate:
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(i) jobs close to where people live;
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(ii) vibrant urban centers;
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(iii) housing types that incorporate affordability factors and match workforce needs;
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(iv) parks, connected trails, and open space, including the preservation of natural
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lands to the extent practicable and consistent with the overall development plan;
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and
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(v) preserving and enhancing recreational opportunities;
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(d) complement the development on land in the vicinity of the point of the mountain
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state land;
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(e) improve air quality and minimize resource use;
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(f) accommodate and incorporate the planning, funding, and development of an
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enhanced and expanded future transit and transportation infrastructure and other
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investments, including:
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(i) the acquisition of rights-of-way and property necessary to ensure transit access to
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the point of the mountain state land; and
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(ii) a world class mass transit infrastructure, to service the point of the mountain state
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land and to enhance mobility and protect the environment; and
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(g) if appropriate, exercise its land use authority to increase the supply of housing in the
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state.
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(2) In planning the development of the point of the mountain state land, the authority shall:
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(a) consult with applicable governmental planning agencies, including:
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(i) relevant metropolitan planning organizations; and
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(ii) Draper City and Salt Lake County planning and governing bodies;[ and]
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[(iii) in regards to the factors described in Subsections (1)(c)(i) and (iii), the Unified
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Economic Opportunity Commission created in Section 63N-1a-201;]
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(b) research and explore the feasibility of attracting a nationally recognized research
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center; and
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(c) research and explore the appropriateness of including labor training centers and a
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higher education presence on the point of the mountain state land.
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Section 2. Section 35A-8-2203 is amended to read:
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35A-8-2203 . Duties of the commission.
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(1) The commission shall:
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[(a) serve as a subcommittee of the Unified Economic Opportunity Commission and
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assist the Unified Economic Opportunity Commission in performing the Unified
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Economic Opportunity Commission's duties under Section 63N-1a-202;]
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[(b)] (a) increase public and government awareness and understanding of the housing
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affordability needs of the state and how those needs may be most effectively and
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efficiently met, through empirical study and investigation;
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[(c)] (b) identify and recommend implementation of specific strategies, policies,
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procedures, and programs to address the housing affordability needs of the state;
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[(d)] (c) facilitate the communication and coordination of public and private entities that
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are involved in developing, financing, providing, advocating for, and administering
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affordable housing in the state;
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[(e)] (d) study, evaluate, and report on the status and effectiveness of policies,
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procedures, and programs that address housing affordability in the state;
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[(f)] (e) study and evaluate the policies, procedures, and programs implemented by other
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states that address housing affordability;
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[(g)] (f) provide a forum for public comment on issues related to housing affordability;
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[(h)] (g) provide recommendations to the [Unified Economic Opportunity Commission
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and the ]Legislature on strategies, policies, procedures, and programs to address the
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housing affordability needs of the state; and
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[(i)] (h) on or before December 31, 2022, approve the methodology developed by the
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division under Subsection 35A-8-803(1)(a)(ix).
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(2) To accomplish its duties, the commission may:
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(a) request and receive from a state or local government agency or institution summary
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information relating to housing affordability, including:
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(i) reports;
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(ii) audits;
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(iii) projections; and
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(iv) statistics; and
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(b) appoint one or more advisory groups to advise and assist the commission.
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(3)(a) A member of an advisory group described in Subsection (2)(b):
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(i) shall be appointed by the commission;
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(ii) may be:
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(A) a member of the commission; or
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(B) an individual from the private or public sector; and
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(iii) notwithstanding Section 35A-8-2202, may not receive reimbursement or pay for
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any work done in relation to the advisory group.
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(b) An advisory group described in Subsection (2)(b) shall report to the commission on
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the progress of the advisory group.
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Section 3. Section 36-12-23 is amended to read:
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36-12-23 . Legislative committees -- Staffing.
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(1) As used in this section:
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(a) "Chair" means a presiding officer or a co-presiding officer of a committee.
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(b) "Committee" means a standing committee, interim committee, subcommittee, special
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committee, authority, commission, council, task force, panel, or board in which
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legislative participation is required by statute or legislative rule.
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(c) "Legislative committee" means a committee:
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(i) formed by the Legislature to study or oversee subjects of legislative concern; and
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(ii) that is required by statute or legislative rule to have a chair who is a legislator.
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(d) "Legislator" means a member of either chamber of the Legislature.
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(e) "Professional legislative office" means the Office of Legislative Research and
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General Counsel, the Office of the Legislative Fiscal Analyst, the Office of the
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Legislative Auditor General, or similar office of the Legislature.
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(2)(a) Except as provided in Subsections (3) and (4), a professional legislative office
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shall provide each legislative committee's staff support, regardless of whether statute
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or legislative rule directs another entity to provide the staff support.
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(b) Unless a legislative committee's enacting statute or legislative rule names a particular
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professional legislative office to provide the legislative committee's staff support, the
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professional legislative offices shall select, based on subject matter expertise, which
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professional legislative office will staff the legislative committee.
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(3)(a) Subject to Subsection (3)(b), the provisions of this section control over any
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conflicting provision of statute or legislative rule.
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(b)(i) If another provision of statute or legislative rule directs an entity other than a
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professional legislative office to provide a legislative committee's staff support,
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notwithstanding Subsection (2), a legislator who is a chair of the legislative
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committee may elect to have the other entity provide the legislative committee's
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staff support.
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(ii) If the legislative committee has more than one chair who is a legislator, the chairs
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who are legislators shall collectively make the election under Subsection (3)(b)(i).
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(iii) A chair or chairs who make an election under Subsection (3)(b)(i) may change
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the chair's or chairs' election no more than once each calendar year.
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(4) This section does not apply to:
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(a) the Point of the Mountain State Land Authority created in Section 11-59-201;
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(b) the Utah Broadband Center Advisory Commission created in Section 36-29-109;
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(c) the Blockchain and Digital Innovation Task Force created in Section 36-29-110;
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(d) the Public Safety Data Management Task Force created in Section 36-29-111;
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(e) the Constitutional Defense Council created in Section 63C-4a-202;
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[(f) the Women in the Economy Subcommittee created in Section 63N-1b-402;]
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[(g)] (f) the House Ethics Committee established under Legislative Joint Rule JR6-2-101;
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or
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[(h)] (g) the Senate Ethics Committee established under Legislative Joint Rule JR6-2-101.
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Section 4. Section 36-29-109 is amended to read:
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36-29-109 . Utah Broadband Center Advisory Commission.
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(1) As used in this section:
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(a) "Broadband infrastructure funds" means the funds available for broadband
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infrastructure pursuant to:
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(i) the Infrastructure Investment and Jobs Act, Pub. L. No. 115-58;
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(ii) legislative appropriations; and
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(iii) state and federal grants.
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(b) ["Center"] "Broadband center" means the Utah Broadband Center created in Section [
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63N-17-201] 72-19-201.
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(c) ["Commission" ] "Broadband commission" means the Utah Broadband Center
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Advisory Commission created in Subsection (2).
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(d) "Strategic plan" means the statewide digital connectivity plan described in Section [
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63N-17-203] 72-19-203.
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(2) There is created the Utah Broadband Center Advisory Commission consisting of the
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following nine voting members:
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(a) two members of the Senate, appointed by the president of the Senate;
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(b) two members of the House of Representatives, appointed by the speaker of the
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House of Representatives;
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(c) the executive director of the Governor's Office of Planning and Budget, or the
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executive director's designee;
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(d) the governor shall appoint four members who currently work in the public sector and
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who have professional experience in:
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(i) broadband or broadband infrastructure;
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(ii) applying for federal grants; or
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(iii) financing infrastructure.
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(3) In addition to the nine voting members, the director of the broadband center, or the
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director's designee, shall serve on the broadband commission in a nonvoting capacity.
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(4)(a) The president of the Senate shall designate one of the members described in
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Subsection (2)(a) to serve as cochair of the broadband commission.
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(b) The speaker of the House of Representatives shall designate one of the members
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described in Subsection (2)(b) to serve as cochair of the broadband commission.
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(5)(a) If a vacancy occurs in the membership of the broadband commission, the member
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shall be replaced in the same manner in which the original appointment was made.
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(b) A member shall serve until the member's successor is appointed and qualified.
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(6)(a) A majority of the members of the broadband commission constitutes a quorum.
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(b) The action of a majority of a quorum constitutes an action of the broadband
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commission.
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(7)(a) Salaries and expenses of the members of the broadband commission who are
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legislators shall be paid in accordance with:
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(i) Section 36-2-2;
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(ii) Legislative Joint Rules, Title 5, Chapter 2, Lodging, Meal, and Transportation
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Expenses; and
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(iii) Legislative Joint Rules, Title 5, Chapter 3, Legislator Compensation.
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(b) A member of the broadband commission who is not a legislator may not receive
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compensation for the member's work associated with the broadband commission but
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may receive per diem and reimbursement for travel expenses incurred as a member of
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the broadband commission at the rates established by the Division of Finance under:
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(i) Sections 63A-3-106 and 63A-3-107; and
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(ii) rules made by the Division of Finance in accordance with Sections 63A-3-106
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and 63A-3-107.
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(8) The broadband center shall provide staff support to the broadband commission.
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(9) The broadband commission shall:
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(a) make recommendations to the broadband center with respect to:
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(i) strategic plan development; and
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(ii) the application for and use of broadband infrastructure funds;
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(b) solicit input from relevant stakeholders, including:
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(i) public and private entities who may assist in developing and implementing the
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strategic plan; and
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(ii) public and private entities whom the strategic plan may impact;
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(c) provide recommendations for strategic plan development and implementation based
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on the input described in Subsection (9)(b);
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(d) review strategic plan drafts; and
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(e) recommend changes.
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(10) The broadband commission shall meet as needed.
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Section 5. Section 53B-34-101 is amended to read:
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53B-34-101 . Definitions.
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As used in this chapter:
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(1) "Apprenticeship program" means a program that:
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(a) combines paid on-the-job learning with formal classroom instruction to prepare
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students for careers; and
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(b) includes:
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(i) structured on-the-job learning for students under the supervision of a skilled
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employee;
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(ii) classroom instruction for students related to the on-the-job learning;
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(iii) ongoing student assessments using established competency and skills standards;
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and
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(iv) the student receiving an industry-recognized credential or degree upon
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completion of the program.
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(2) "Career and technical education region" means an economic service area created in
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Section 35A-2-101.
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(3) "GOEO" means the Governor's Office of Economic Opportunity created in Section
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63N-1a-301.
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[(3) "Commission" means the Unified Economic Opportunity Commission created in
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Section 63N-1a-201.]
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(4) "High quality professional learning" means the professional learning standards for
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teachers and principals described in Section 53G-11-303.
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(5) "Institution of higher education" means the University of Utah, Utah State University,
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Southern Utah University, Weber State University, Snow College, Utah Tech
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University, Utah Valley University, or Salt Lake Community College.
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(6) "Local education agency" means a school district, a charter school, or the Utah Schools
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for the Deaf and the Blind.
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(7) "Master plan" means the computer science education master plan described in Section
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53B-34-105.
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(8) "Participating employer" means an employer that:
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(a) partners with an educational institution on a curriculum for an apprenticeship
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program or work-based learning program; and
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(b) provides an apprenticeship or work-based learning program for students.
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(9) "State board" means the State Board of Education.
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(10) "Talent board" means the Talent, Education, and Industry Alignment Board created in
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Section 53B-34-102.
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(11) "Talent program" means the Talent Ready Utah Program created in Section
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53B-34-103.
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(12) "Targeted industry" means an industry or group of industries targeted by [the
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commission ] GOEO for economic development in the state.
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(13) "Technical college" means:
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(a) the same as that term is defined in Section 53B-1-101.5; and
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(b) a degree-granting institution acting in the degree-granting institution's technical
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education role described in Section 53B-2a-201.
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(14)(a) "Work-based learning program" means a program that combines structured and
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supervised learning activities with authentic work experiences and that is
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implemented through industry and education partnerships.
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(b) "Work-based learning program" includes the following objectives:
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(i) providing students an applied workplace experience using knowledge and skills
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attained in a program of study that includes an internship, externship, or work
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experience;
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(ii) providing an educational institution with objective input from a participating
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employer regarding the education requirements of the current workforce; and
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(iii) providing funding for programs that are associated with high-wage, in-demand,
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or emerging occupations.
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(15) "Workforce programs" means education or industry programs that facilitate training
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the state's workforce to meet industry demand.
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Section 6. Section 53B-34-102 is amended to read:
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53B-34-102 . Talent, Education, and Industry Alignment Board -- Creation --
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Membership -- Expenses -- Duties.
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(1) There is created the Talent, Education, and Industry Alignment Board composed of the
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following members:
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(a) the state superintendent of public instruction or the superintendent's designee;
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(b) the commissioner or the commissioner's designee;
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(c) the chair of the State Board of Education or the chair's designee;
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(d) the executive director of the Department of Workforce Services or the executive
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director's designee;
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(e) the executive director of the Governor's Office of Economic Opportunity or the
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executive director's designee;
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(f) the director of the Division of Professional Licensing or the director's designee;
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(g) the governor's education advisor or the advisor's designee;
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(h) one member of the Senate, appointed by the president of the Senate;
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(i) one member of the House of Representatives, appointed by the speaker of the House
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of Representatives;
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(j) the president of the Salt Lake Chamber or the president's designee;
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(k) six representatives of private industry chosen to represent targeted industries,
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appointed by [the commission] GOEO;
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(l) the lieutenant governor or the lieutenant governor's designee; and
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(m) any additional individuals appointed by [the commission] GOEO who represent:
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(i) one or more individual educational institutions; or
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(ii) education or industry professionals.
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(2) The talent board shall select a chair and vice chair from among the members of the
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talent board.
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(3) The talent board shall meet at least quarterly.
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(4) Attendance of a majority of the members of the talent board constitutes a quorum for
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the transaction of official talent board business.
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(5) Formal action by the talent board requires the majority vote of a quorum.
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(6) A member of the talent board:
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(a) may not receive compensation or benefits for the member's service; and
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(b) who is not a legislator may receive per diem and travel expenses in accordance with:
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(i) Section 63A-3-106;
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(ii) Section 63A-3-107; and
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(iii) rules made by the Division of Finance pursuant to Sections 63A-3-106 and
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63A-3-107.
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(7) The talent board shall:
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(a)(i) review and develop metrics to measure the progress, performance,
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effectiveness, and scope of any state operation, activity, program, or service that
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primarily involves employment training or placement; and
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(ii) ensure that the metrics described in Subsection (7)(a) are consistent and
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comparable for each state operation, activity, program, or service that primarily
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involves employment training or placement;
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(b) make recommendations to the board and [the commission] GOEO regarding how to
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better align training and education in the state with industry demand;
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(c) make recommendations to the board and [the commission] GOEO regarding how to
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better align technical education with current and future workforce needs;
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(d) coordinate with the talent program to meet the responsibilities described in [
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Subsection 53B-34-103(4)] Section 53B-34-103;
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(e) develop a computer science education master plan in accordance with Section
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53B-34-105;
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(f) coordinate with the talent program to meet the responsibilities described in Section
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53B-34-107; and
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(g) administer the Utah Works Program in accordance with Section 53B-34-108.
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(8) Nothing in this section prohibits an individual who, on June 30, 2022, is a member of a
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subcommittee within the Governor's Office of Economic Opportunity known as the
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Talent, Education, and Industry Alignment Subcommittee from serving as a member of
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the talent board.
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Section 7. Section 53B-34-111 is amended to read:
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53B-34-111 . Youth apprenticeship governance study.
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(1) As used in this section:
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(a) "Apprenticeship" means the same as the term is defined in Section 35A-6-102.
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(b) "Study" means the study created in Subsection (2).
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(2) There is created a study to design a framework and system for maximizing efficiencies
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and expanding youth apprenticeship opportunities for students.
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(3) The study shall be conducted collaboratively by the following entities:
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(a) the [Governor's Office] governor's office;
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(b) the State Board of Education;
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(c) the Department of Workforce Services;
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(d) the Talent Ready Utah Program; and
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(e) relevant participating employers as determined by the entities described in
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Subsections (3)(a) through (d).
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(4) The study shall examine framework and system design recommendations regarding:
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(a) ways to increase youth apprenticeship offerings;
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(b) increasing student and employer participation in youth apprenticeships;
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(c) formalizing roles and streamlining use of existing infrastructure described in:
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(i) Title 35A, Chapter 6, Apprenticeship Act;
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(ii) Title 53B, Chapter 34, Talent, Education, and Industry Alignment, including the
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role of the state apprenticeship intermediary described in Section 53B-34-103; and
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(iii) Section 53G-7-902;
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(d) aligning youth apprenticeship efforts to meet the definition of youth apprenticeship
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defined in Section 35A-6-102;
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(e) identifying metrics to assess the success of youth apprenticeship programs;
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(f) opportunities to leverage secondary and post-secondary educational programs in
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conjunction with youth apprenticeships, including:
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(i) career and technical education;
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(ii) concurrent enrollment; and
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(iii) stackable credentials; and
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(g) the creation of career competencies to prepare a qualified workforce.
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(5) The staff of the Talent Ready Utah Program shall staff the study.
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(6) No later than May 1, 2025, the entities described in [Subsections (3)(a) through (e)]
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Subsection (3) shall report the recommendations described in Subsection (4) to[:]
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[(a)] the talent board[; and] .
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[(b) the Unified Economic Opportunity Commission.]
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Section 8. Section 63I-1-263 is amended to read:
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63I-1-263 . Repeal dates: Titles 63A to 63O.
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(1) Subsection 63A-5b-405(5), regarding prioritizing and allocating capital improvement
411
funding, is repealed July 1, 2024.
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(2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
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2028.
414
(3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1, 2025.
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(4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
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December 31, 2026.
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(5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
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repealed December 31, 2024.
419
(6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
420
(7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
421
(8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
422
(9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July
423
1, 2028.
424
(10) Section 63G-6a-805, Purchase from community rehabilitation programs, is repealed
425
July 1, 2026.
426
(11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1, 2028.
427
(12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
428
2029.
429
(13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.
430
(14) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
431
Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
432
(15) Subsection 63J-1-602.2(26), regarding the Utah Seismic Safety Commission, is
433
repealed January 1, 2025.
434
(16) Section 63L-11-204, Canyon resource management plan, is repealed July 1, 2025.
435
(17) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee, is
436
repealed July 1, 2027.
- 13 - 1st Sub. (Buff) H.B. 542 02-26 11:59
437
(18) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
438
repealed July 1, 2027.
439
(19) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses, is
440
repealed July 1, 2029.
441
(20) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
442
[(21) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is repealed
443
January 1, 2030.]
444
[(22)] (21) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
445
[(23)] (22) Subsection 63N-2-511(1)(b), regarding the Board of Tourism Development, is
446
repealed July 1, 2025.
447
[(24)] (23) Section 63N-2-512, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
448
[(25)] (24) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
449
repealed July 1, 2027.
450
[(26)] (25) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
451
repealed July 1, 2025.
452
[(27)] (26) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
453
July 1, 2028.
454
[(28)] (27) Section 63N-4-804, which creates the Rural Opportunity Advisory Committee, is
455
repealed July 1, 2027.
456
[(29)] (28) Subsection 63N-4-805(5)(b), regarding the Rural Employment Expansion
457
Program, is repealed July 1, 2028.
458
[(30)] (29) Subsection 63N-7-101(1), regarding the Board of Tourism Development, is
459
repealed July 1, 2025.
460
[(31)] (30) Subsection 63N-7-102(3)(c), regarding a requirement for the Utah Office of
461
Tourism to receive approval from the Board of Tourism Development, is repealed July
462
1, 2025.
463
[(32)] (31) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1,
464
2025.
465
Section 9. Section 63N-1a-102 is amended to read:
466
63N-1a-102 . Definitions.
467
As used in this title:
468
(1) "Baseline jobs" means the number of full-time employee positions that existed within a
469
business entity in the state before the date on which a project related to the business
470
entity is approved by the office or by the GOEO board.
- 14 - 02-26 11:59 1st Sub. (Buff) H.B. 542
471
(2) "Baseline state revenue" means the amount of state tax revenue collected from a
472
business entity or the employees of a business entity during the year before the date on
473
which a project related to the business entity is approved by the office or by the GOEO
474
board.
475
[(3) "Commission" means the Unified Economic Opportunity Commission created in
476
Section 63N-1a-201.]
477
[(4)] (3) "Economic opportunity agency" includes:
478
(a) the Department of Workforce Services;
479
(b) the Department of Cultural and Community Engagement;
480
(c) the Department of Commerce;
481
(d) the Department of Natural Resources;
482
(e) the Office of Energy Development;
483
(f) the State Board of Education;
484
(g) institutions of higher education;
485
(h) the Utah Multicultural Commission;
486
(i) the World Trade Center Utah;
487
(j) local government entities;
488
(k) associations of governments;
489
(l) the Utah League of Cities and Towns;
490
(m) the Utah Association of Counties;
491
(n) the Economic Development Corporation of Utah;
492
(o) the Small Business Administration;
493
(p) chambers of commerce;
494
(q) industry associations;
495
(r) small business development centers; and
496
(s) other entities identified by the commission or the executive director.
497
[(5)] (4) "Executive director" means the executive director of the office.
498
[(6)] (5) "Full-time employee" means an employment position that is filled by an employee
499
who works at least 30 hours per week and:
500
(a) may include an employment position filled by more than one employee, if each
501
employee who works less than 30 hours per week is provided benefits comparable to
502
a full-time employee; and
503
(b) may not include an employment position that is shifted from one jurisdiction in the
504
state to another jurisdiction in the state.
- 15 - 1st Sub. (Buff) H.B. 542 02-26 11:59
505
[(7)] (6) "GOEO board" means the Board of Economic Opportunity created in Section
506
63N-1a-401.
507
[(8)] (7) "High paying job" means a newly created full-time employee position where the
508
aggregate average annual gross wage of the employment position, not including health
509
care or other paid or unpaid benefits, is:
510
(a) at least 110% of the average wage of the county in which the employment position
511
exists; or
512
(b) for an employment position related to a project described in Chapter 2, Part 1,
513
Economic Development Tax Increment Financing, and that is located within the
514
boundary of a county of the third, fourth, fifth, or sixth class, or located within a
515
municipality in a county of the second class and where the municipality has a
516
population of 10,000 or less:
517
(i) at least 100% of the average wage of the county in which the employment position
518
exists; or
519
(ii) an amount determined by rule made by the office in accordance with Title 63G,
520
Chapter 3, Utah Administrative Rulemaking Act, if the office determines the
521
project is in a county experiencing economic distress.
522
[(9)] (8)(a) "Incremental job" means a full-time employment position in the state that:
523
(i) did not exist within a business entity in the state before the beginning of a project
524
related to the business entity; and
525
(ii) is created in addition to the number of baseline jobs that existed within a business
526
entity.
527
(b) "Incremental job" includes a full-time employment position where the employee is
528
hired:
529
(i) directly by a business entity; or
530
(ii) by a professional employer organization, as defined in Section 31A-40-102, on
531
behalf of a business entity.
532
[(10)] (9) "New state revenue" means the state revenue collected from a business entity or a
533
business entity's employees during a calendar year minus the baseline state revenue
534
calculation.
535
[(11)] (10) "Office" or "GOEO" means the Governor's Office of Economic Opportunity.
536
[(12)] (11) "State revenue" means state tax liability paid by a business entity or a business
537
entity's employees under any combination of the following provisions:
538
(a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
- 16 - 02-26 11:59 1st Sub. (Buff) H.B. 542
539
(b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
540
Information;
541
(c) Title 59, Chapter 10, Part 2, Trusts and Estates;
542
(d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
543
(e) Title 59, Chapter 12, Sales and Use Tax Act.
544
[(13)] (12) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.
545
[(14)] (13) "Statewide economic development strategy" means the economic development
546
strategy developed by the [commission in accordance with Section 63N-1a-202] office in
547
accordance with Section 63N-1a-301.
548
[(15) "Talent board" means the Talent, Education, and Industry Alignment Board created in
549
Section 53B-34-102.]
550
[(16)] (14) "Targeted industry" means an industry or group of industries targeted by the [
551
commission under Section 63N-1a-202] office under Section 63N-1a-301, for economic
552
development in the state.
553
Section 10. Section 63N-1a-301 is amended to read:
554
63N-1a-301 . Creation of office -- Responsibilities.
555
(1) There is created the Governor's Office of Economic Opportunity.
556
(2) The office is:
557
(a) responsible for creating and implementing the statewide economic development
558
strategy [developed by the commission; and] that:
559
(i) unifies and coordinates economic development efforts in the state;
560
(ii) includes key performance indicators for long-term progress toward the state
561
strategic goals;
562
(iii) establishes reporting and accountability processes for the key performance
563
indicators; and
564
(iv) ensures the success of statewide economic development; and
565
(b) the industrial and business promotion authority of the state.
566
(3) The office shall:
567
(a) consistent with the statewide economic development strategy, coordinate and align
568
into a single effort the activities of the economic opportunity agencies in the field of
569
economic development;
570
(b) provide support and direction to economic opportunity agencies in establishing
571
goals, metrics, and activities that align with the statewide economic development
572
strategy;
- 17 - 1st Sub. (Buff) H.B. 542 02-26 11:59
573
(c) administer and coordinate state and federal economic development grant programs;
574
(d) promote and encourage the economic, commercial, financial, industrial, agricultural,
575
and civic welfare of the state;
576
(e) develop the statewide economic development strategy consistent with the state water
577
policy described in Section 73-1-21, including the state's commitment to appropriate:
578
(i) conservation;
579
(ii) efficient and optimal use of water resources;
580
(iii) infrastructure development and improvement;
581
(iv) optimal agricultural use;
582
(v) water quality;
583
(vi) reasonable access to recreational activities;
584
(vii) effective wastewater treatment; and
585
(viii) protecting and restoring health ecosystems;
586
(f) at least once every five years, identify which industry or groups of industries shall be
587
targeted for economic development in the state;
588
[(e)] (g) promote and encourage the employment of workers in the state and the purchase
589
of goods and services produced in the state by local businesses;
590
[(f)] (h) act to create, develop, attract, and retain business, industry, and commerce in the
591
state:
592
(i) in accordance with the statewide economic development [plan and commission
593
directives] strategy; and
594
(ii) subject to the restrictions in Section 11-41-103;
595
[(g)] (i) act to enhance the state's economy;
596
(j) analyze the state's projected long-term population and economic growth and plan for
597
the anticipated impacts of the projected growth in a manner that improves quality of
598
life and is consistent with the statewide economic development strategy and state
599
strategic goals;
600
[(h)] (k) act to assist strategic industries that are likely to drive future economic growth;
601
[(i)] (l) assist communities in the state in developing economic development capacity and
602
coordination with other communities;
603
(m) develop strategies and plans to ensure comprehensive economic development efforts
604
are targeted to the unique needs of rural areas of the state;
605
[(j)] (n) identify areas of education and workforce development in the state that can be
606
improved to support economic and business development;
- 18 - 02-26 11:59 1st Sub. (Buff) H.B. 542
607
[(k)] (o) [consistent with direction from the commission, ]develop core strategic
608
priorities for the office, which may include:
609
(i) enhancing statewide access to entrepreneurship opportunities and small business
610
support;
611
(ii) focusing industry recruitment and expansion of targeted industries;
612
(iii) ensuring that in awarding competitive economic development incentives the
613
office accurately measures the benefits and costs of the incentives; and
614
(iv) assisting communities with technical support to aid those communities in
615
improving economic development opportunities;
616
[(l)] (p) submit an annual written report as described in Section 63N-1a-306; and
617
[(m)] (q) perform other duties as provided by the Legislature.
618
(4) To perform the office's duties under this title, the office may:
619
(a) enter into a contract or agreement with, or make a grant to, a public or private entity,
620
including a municipality, if the contract or agreement is not in violation of state
621
statute or other applicable law;
622
(b) except as provided in Subsection (4)(c), receive and expend funds from a public or
623
private source for any lawful purpose that is in the state's best interest; and
624
(c) solicit and accept a contribution of money, services, or facilities from a public or
625
private donor, but may not use the contribution for publicizing the exclusive interest
626
of the donor.
627
(5) Money received under Subsection (4)(c) shall be deposited into the General Fund as
628
dedicated credits of the office.
629
[(6)(a) The office shall:]
630
[(i) obtain the advice of the GOEO board before implementing a change to a policy,
631
priority, or objective under which the office operates; and]
632
[(ii) provide periodic updates to the commission regarding the office's efforts under
633
Subsections (3)(a) and (b).]
634
[(b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
635
money or services related to the assistance, retention, or recruitment of business,
636
industry, or commerce in the state.]
637
Section 11. Section 63N-1a-303 is amended to read:
638
63N-1a-303 . Powers and duties of executive director.
639
(1) Unless otherwise expressly provided by statute, the executive director may organize the
640
office in any appropriate manner, including the appointment of deputy directors of the
- 19 - 1st Sub. (Buff) H.B. 542 02-26 11:59
641
office.
642
(2) The executive director may consolidate personnel and service functions for efficiency
643
and economy in the office.
644
(3) The executive director, with the approval of the governor:
645
(a) may, by following the procedures and requirements of Title 63J, Chapter 5, Federal
646
Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
647
(b) may enter into a lawful contract or agreement with another state, a chamber of
648
commerce organization, a service club, or a private entity; and
649
(c) shall annually prepare and submit to the governor a budget of the office's financial
650
requirements.
651
(4) With the governor's approval, if a federal program requires the expenditure of state
652
funds as a condition for the state to participate in a fund, property, or service, the
653
executive director may expend necessary funds from money provided by the Legislature
654
for the use of the office.
655
(5) The executive director shall coordinate with the executive directors of the Department
656
of Workforce Services and the Governor's Office of Planning and Budget to review data
657
and metrics to be reported to the Legislature as described in [Subsection
658
63N-1a-306(2)(b)] Section 63N-1a-306.
659
(6) Unless otherwise provided in this title, the executive director may make rules in
660
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as
661
necessary for the administration of programs established under state law.
662
Section 12. Section 63N-1a-304 is amended to read:
663
63N-1a-304 . Executive director and the Public Service Commission.
664
(1) The executive director or the executive director's designee shall:
665
(a) become generally informed of significant rate cases and policy proceedings before
666
the Public Service Commission; and
667
(b) monitor and study the potential economic development impact of [these] the
668
proceedings.
669
(2) In the discretion of the executive director or the executive director's designee, the office
670
may appear in a proceeding before the Public Service Commission to testify, advise, or
671
to present argument regarding the economic development impact of a matter that is the
672
subject of the proceeding.
673
Section 13. Section 63N-1a-305 is amended to read:
674
63N-1a-305 . Incentive review process.
- 20 - 02-26 11:59 1st Sub. (Buff) H.B. 542
675
[The Legislature intends that the] The office [will] shall develop an [incentives] incentive
676
review process under the direction of the speaker of the House of Representatives and the
677
president of the Senate.
678
Section 14. Section 63N-1a-306 is amended to read:
679
63N-1a-306 . Annual report -- Content -- Format.
680
(1) The office shall prepare and submit to the governor and the Legislature, by October 1 of
681
each year, an annual written report of the operations, activities, programs, and services
682
of the office, including the divisions, sections, boards, commissions, councils, and
683
committees established under this title, for the preceding fiscal year.
684
(2) For each operation, activity, program, or service provided by the office, the annual
685
report shall include:
686
(a) a description of the operation, activity, program, or service;
687
(b) data and metrics:
688
(i) selected and used by the office to measure progress, performance, effectiveness,
689
and scope of the operation, activity, program, or service, including summary data;
690
and
691
(ii) that are consistent and comparable for each state operation, activity, program, or
692
service that primarily involves employment training or placement as determined
693
by the executive directors of the office, the Department of Workforce Services,
694
and the Governor's Office of Planning and Budget;
695
(c) budget data, including the amount and source of funding, expenses, and allocation of
696
full-time employees for the operation, activity, program, or service;
697
(d) historical data from previous years for comparison with data reported under
698
Subsections (2)(b) and (c);
699
(e) goals, challenges, and achievements related to the operation, activity, program, or
700
service;
701
(f) relevant federal and state statutory references and requirements;
702
(g) contact information of officials knowledgeable and responsible for each operation,
703
activity, program, or service; and
704
(h) other information determined by the office that:
705
(i) may be needed, useful, or of historical significance; or
706
(ii) promotes accountability and transparency for each operation, activity, program,
707
or service with the public and elected officials.
708
(3) The annual report shall be designed to provide clear, accurate, and accessible
- 21 - 1st Sub. (Buff) H.B. 542 02-26 11:59
709
information to the public, the governor, and the Legislature.
710
(4) The office shall:
711
(a) submit the annual report in accordance with Section 68-3-14; and
712
(b) make the annual report, and previous annual reports, accessible to the public by
713
placing a link to the reports on the office's website[; and] .
714
[(c) provide the data and metrics described in Subsection (2)(b) to the talent board.]
715
Section 15. Section 63N-1a-401 is amended to read:
716
63N-1a-401 . Creation of Board of Economic Opportunity.
717
(1)(a) There is created within the office the Board of Economic Opportunity, consisting
718
of nine members appointed by the [chair of the commission] executive director of the
719
office, in consultation with the [executive director] governor, to four-year terms of
720
office with the advice and consent of the Senate in accordance with Title 63G,
721
Chapter 24, Part 2, Vacancies.
722
(b) The nine members described in Subsection (1)(a) shall include:
723
(i) one member associated with the state's rural communities;
724
(ii) one member associated with direct entrepreneurship in the state;
725
(iii) one member associated with higher education in the state;
726
(iv) five members, other than the members described in Subsections (1)(b)(i) through
727
(iii), that are associated with a targeted industry; and
728
(v) one at-large member.
729
(c) Notwithstanding the requirements of Subsection (1)(a), the [chair of the commission]
730
executive director shall, at the time of appointment or reappointment, adjust the
731
length of terms to ensure that the terms of board members are staggered so that
732
approximately half of the board is appointed every two years.
733
(d) The members may not serve more than two full consecutive terms except when the [
734
chair of the commission] executive director determines that an additional term is in
735
the best interest of the state.
736
(2) When a vacancy occurs in the membership for any reason, the replacement shall be
737
appointed for the unexpired term in accordance with Title 63G, Chapter 24, Part 2,
738
Vacancies.
739
(3) A majority of board members, not including a vacancy, constitutes a quorum for
740
conducting board business and exercising board power.
741
(4) [The chair of the commission ] The executive director shall select one board member as
742
the board's chair and one member as the board's vice chair.
- 22 - 02-26 11:59 1st Sub. (Buff) H.B. 542
743
(5) A member may not receive compensation or benefits for the member's service, but may
744
receive per diem and travel expenses in accordance with:
745
(a) Section 63A-3-106;
746
(b) Section 63A-3-107; and
747
(c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
748
(6) A member shall comply with the conflict of interest provisions described in Title 63G,
749
Chapter 24, Part 3, Conflicts of Interest.
750
Section 16. Section 63N-2-103 is amended to read:
751
63N-2-103 . Definitions.
752
As used in this part:
753
(1)(a) "Business entity" means a person that enters into a written agreement with the
754
office to initiate a new commercial project in Utah that will qualify the person to
755
receive a tax credit under Section 59-7-614.2 or 59-10-1107.
756
(b) With respect to a tax credit authorized by the office in accordance with Subsection
757
63N-2-104.3(2), "business entity" includes a nonprofit entity.
758
(2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
759
industrial, manufacturing, business park, research park, or other appropriate business
760
related use in a general plan that contemplates future growth.
761
(3) "Development zone" means an economic development zone created under Section
762
63N-2-104.
763
(4) "Local government entity" means a county, city, or town.
764
(5) "New commercial project" means an economic development opportunity that:
765
(a) involves a targeted industry; or
766
(b) is located within:
767
(i) a county of the third, fourth, fifth, or sixth class; or
768
(ii) a municipality that has a population of 10,000 or less and the municipality is
769
located within a county of the second class[; or] .
770
[(c) involves an economic development opportunity that the commission determines to
771
be eligible for a tax credit under this part.]
772
(6) "Remote work opportunity" means a new commercial project that:
773
(a) does not require a physical office in the state where employees associated with the
774
new commercial project are required to work; and
775
(b) requires employees associated with the new commercial project to:
776
(i) work remotely from a location within the state; and
- 23 - 1st Sub. (Buff) H.B. 542 02-26 11:59
777
(ii) maintain residency in the state.
778
(7) "Significant capital investment" means an investment in capital or fixed assets, which
779
may include real property, personal property, and other fixtures related to a new
780
commercial project that represents an expansion of existing operations in the state or
781
that increases the business entity's existing workforce in the state.
782
(8) "Tax credit" means an economic development tax credit created by Section 59-7-614.2
783
or 59-10-1107.
784
(9) "Tax credit amount" means the amount the office lists as a tax credit on a tax credit
785
certificate for a taxable year.
786
(10) "Tax credit certificate" means a certificate issued by the office that:
787
(a) lists the name of the business entity to which the office authorizes a tax credit;
788
(b) lists the business entity's taxpayer identification number;
789
(c) lists the amount of tax credit that the office authorizes the business entity for the
790
taxable year; and
791
(d) may include other information as determined by the office.
792
(11) "Written agreement" means a written agreement entered into between the office and a
793
business entity under Section 63N-2-104.2.
794
Section 17. Section 63N-2-104.3 is amended to read:
795
63N-2-104.3 . Limitations on tax credit amount.
796
(1) Except as provided in Subsection (2)(a), for a new commercial project that is located
797
within the boundary of a county of the first or second class, the office may not authorize
798
a tax credit that exceeds:
799
(a) 50% of the new state revenues from the new commercial project in any given year; or
800
(b) 30% of the new state revenues from the new commercial project over a period of up
801
to 20 years[; or] .
802
[(c) 35% of the new state revenues from the new commercial project over a period of up
803
to 20 years, if:]
804
[(i) the new commercial project brings 2,500 or more new incremental jobs to the
805
state;]
806
[(ii) the amount of capital expenditures associated with the new commercial project is
807
$1,000,000,000 or more; and]
808
[(iii) the commission approves the tax credit.]
809
(2) If the office authorizes a tax credit for a new commercial project located within the
810
boundary of:
- 24 - 02-26 11:59 1st Sub. (Buff) H.B. 542
811
(a) a municipality with a population of 10,000 or less located within a county of the
812
second class and that is experiencing economic hardship as determined by the office,
813
the office may authorize a tax credit of up to 50% of new state revenues from the new
814
commercial project over a period of up to 20 years;
815
(b) a county of the third class, the office may authorize a tax credit of up to 50% of new
816
state revenues from the new commercial project over a period of up to 20 years; and
817
(c) a county of the fourth, fifth, or sixth class, the office may authorize a tax credit of
818
50% of new state revenues from the new commercial project over a period of up to
819
20 years.
820
Section 18. Section 63N-2-107 is amended to read:
821
63N-2-107 . Reports of new state revenue, partial rebates, and tax credits.
822
(1) Before October 1 of each year, the office shall submit a report to the Governor's Office
823
of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of
824
Finance identifying:
825
(a)(i) the total estimated amount of new state revenue created from new commercial
826
projects;
827
(ii) the estimated amount of new state revenue from new commercial projects that
828
will be generated from:
829
(A) sales tax;
830
(B) income tax; and
831
(C) corporate franchise and income tax; and
832
(iii) the minimum number of new incremental jobs and high paying jobs that will be
833
created before any tax credit is awarded; and
834
(b) the total estimated amount of tax credits that the office projects that business entities
835
will qualify to claim under this part.
836
(2) By the first business day of each month, the office shall submit a report to the
837
Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst,
838
and the Division of Finance identifying:
839
(a) each new written agreement that the office entered into since the last report;
840
(b) the estimated amount of new state revenue that will be generated under each written
841
agreement described in Subsection (2)(a);
842
(c) the estimated maximum amount of tax credits that a business entity could qualify for
843
under each written agreement described in Subsection (2)(a); and
844
(d) the minimum number of new incremental jobs and high paying jobs that will be
- 25 - 1st Sub. (Buff) H.B. 542 02-26 11:59
845
created before any tax credit is awarded.
846
(3) At the reasonable request of the Governor's Office of Planning and Budget, the Office
847
of the Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
848
additional information about the tax credit, new incremental jobs and high paying jobs,
849
costs, and economic benefits related to this part, if the information is part of a public
850
record as defined in Section 63G-2-103.
851
[(4) By October 1, the office shall submit to the Economic Development and Workforce
852
Services Interim Committee, the Business, Economic Development, and Labor
853
Appropriations Subcommittee, and the governor, a written report that provides an
854
overview of the implementation and efficacy of the statewide economic development
855
strategy, including an analysis of the extent to which the office's programs are aligned
856
with the prevailing economic conditions expected in the next fiscal year.]
857
Section 19. Section 63N-16-302 is amended to read:
858
63N-16-302 . Proactive regulatory relief efforts.
859
(1) As used in this section:
860
(a) "Regulatory framework" means a framework for determining the risk level to the
861
public if a law or regulation that inhibits the creation or success of new and existing
862
companies or industries were to be permanently removed or temporarily waived.
863
(b) "Risk level" means a level of risk categorized from low, medium, and high.
864
(2) The regulatory relief office may:
865
(a) review, at any time, any existing state laws or regulations that may unnecessarily
866
inhibit the creation or success of companies or industries other than the occupational
867
regulations of individuals reviewed by the Office of Professional Licensure Review
868
under Title 13, Chapter 1b, Office of Professional Licensure Review; and
869
(b) provide recommendations to the governor and the Legislature on modifying those
870
state laws and regulations described in Subsection (2)(a).
871
(3) The regulatory relief office shall:
872
(a) create a regulatory framework; and
873
(b) annually study the laws and regulations of at least two industries selected from:
874
(i) an industry targeted for economic development by the [Unified Economic
875
Opportunity Commission] office as described in Section [63N-1a-202] 63N-1a-302;
876
or
877
(ii) an industry designated by the General Regulatory Sandbox Program Advisory
878
Committee for study by the regulatory relief office.
- 26 - 02-26 11:59 1st Sub. (Buff) H.B. 542
879
(4) In undertaking the review described in Subsection [(3), ] (2), the regulatory relief office
880
shall:
881
(a) identify any law or regulation that the regulatory relief office determines inhibits the
882
creation or success of new and existing companies or industries;
883
(b) apply the regulatory framework to the identified law or regulation; and
884
(c) consider:
885
(i) the history of the identified regulation or law, including the reasons why the
886
regulation or law was originally enacted;
887
(ii) whether the identified regulation or law:
888
(A) creates an unnecessary barrier to industry for businesses; or
889
(B) imposes an unnecessary cost to businesses or consumers;
890
(iii) whether the penalty for violation of the regulation or law, if any, is proportional
891
to the potential harm; and
892
(iv) if there are potentially less burdensome alternatives to the existing regulation or
893
law and apply the regulatory framework to that alternative.
894
(5) The regulatory relief office shall submit as part of the report described in Section
895
63N-16-105:
896
(a) a detailed overview of the regulatory relief office's study of the laws and regulations
897
as described in this section, including the reasons why the laws and regulations of a
898
particular industry were selected for study and the strategy the office implemented to
899
study the laws and regulations of that industry; and
900
(b) recommended changes to a law or regulation identified by the regulatory relief office
901
in Subsection (4) that the regulatory relief office determines:
902
(i) is inhibiting the success of businesses, companies, or industries; and
903
(ii) would not present a high risk level to the public if the law or regulation were
904
permanently removed or temporarily waived.
905
Section 20. Section 72-1-203 is amended to read:
906
72-1-203 . Deputy director -- Appointment -- Qualifications -- Other assistants
907
and advisers -- Salaries.
908
(1) The executive director shall appoint the following deputy directors, who shall serve at
909
the discretion of the executive director:
910
(a) the deputy director of engineering and operation, who shall be a registered
911
professional engineer in the state, and who shall be the chief engineer of the
912
department; and
- 27 - 1st Sub. (Buff) H.B. 542 02-26 11:59
913
(b) the deputy director of planning and investment.
914
(2) As assigned by the executive director, the deputy directors described in Subsection (1)
915
may assist the executive director with the following departmental responsibilities:
916
(a) project development, including statewide standards for project design and
917
construction, right-of-way, materials, testing, structures, and construction;
918
(b) oversight of the management of the region offices described in Section 72-1-205;
919
(c) operations and traffic management;
920
(d) oversight of operations of motor carriers and ports;
921
(e) transportation systems safety;
922
(f) aeronautical operations;
923
(g) equipment for department engineering and maintenance functions;
924
(h) oversight and coordination of planning, including:
925
(i) development of statewide strategic initiatives for planning across all modes of
926
transportation;
927
(ii) coordination with metropolitan planning organizations and local governments;
928
(iii) coordination with a large public transit district, including planning, project
929
development, outreach, programming, environmental studies and impact
930
statements, construction, and impacts on public transit operations; and
931
(iv) corridor and area planning;
932
(i) asset management;
933
(j) programming and prioritization of transportation projects;
934
(k) fulfilling requirements for environmental studies and impact statements;
935
(l) resource investment, including identification, development, and oversight of
936
public-private partnership opportunities;
937
(m) data analytics services to the department;
938
(n) corridor preservation;
939
(o) employee development;
940
(p) maintenance planning;
941
(q) oversight and facilitation of the negotiations and integration of public transit
942
providers described in Section 17B-2a-827;
943
(r) oversight and supervision of any fixed guideway capital development project within
944
the boundaries of a large public transit district for which any state funds are
945
expended, including those responsibilities described in Subsections (2)(a), (h), (j),
946
(k), and (l), and the implementation and enforcement of any federal grant obligations
- 28 - 02-26 11:59 1st Sub. (Buff) H.B. 542
947
associated with fixed guideway capital development project funding; and
948
(s) other departmental responsibilities as determined by the executive director.
949
(3) The executive director shall ensure that the same deputy director does not oversee or
950
supervise both the fixed guideway capital development responsibilities described in
951
Subsection (2)(r) and the department's fixed guideway rail safety responsibilities,
952
including the responsibilities described in Section 72-1-214.
953
(4) The executive director shall ensure that the same deputy director does not oversee or
954
supervise both the authorization of a telecommunication provider to have longitudinal
955
access to state right-of-way as described in Section 72-7-108, and the operations and
956
duties of the Utah Broadband Center created in Section 72-19-201.
957
Section 21. Section 72-1-303 is amended to read:
958
72-1-303 . Duties of commission.
959
(1) The commission has the following duties:
960
(a) determining priorities and funding levels of projects and programs in the state
961
transportation systems and the capital development of new public transit facilities for
962
each fiscal year based on project lists compiled by the department and taking into
963
consideration the strategic initiatives described in Section 72-1-211;
964
(b) determining additions and deletions to state highways under Chapter 4, Designation
965
of State Highways Act;
966
(c) holding public meetings and otherwise providing for public input in transportation
967
matters;
968
(d) making policies and rules in accordance with Title 63G, Chapter 3, Utah
969
Administrative Rulemaking Act, necessary to perform the commission's duties
970
described under this section;
971
(e) in accordance with Section 63G-4-301, reviewing orders issued by the executive
972
director in adjudicative proceedings held in accordance with Title 63G, Chapter 4,
973
Administrative Procedures Act;
974
(f) advising the department on state transportation systems policy;
975
(g) approving settlement agreements of condemnation cases subject to Section
976
63G-10-401;
977
(h) in accordance with Section 17B-2a-807, appointing a commissioner to serve as a
978
nonvoting member or a voting member on the board of trustees of a public transit
979
district;
980
(i) in accordance with Section 17B-2a-808, reviewing, at least annually, the short-term
- 29 - 1st Sub. (Buff) H.B. 542 02-26 11:59
981
and long-range public transit plans;
982
(j) determining the priorities and funding levels of public transit innovation grants, as
983
defined in Section 72-2-401;[ and]
984
(k) approving grant awards administered by the Utah Broadband Center in accordance
985
with Section 17-19-301; and
986
[(k)] (l) reviewing administrative rules made, substantively amended, or repealed by the
987
department.
988
(2)(a) For projects prioritized with funding provided under Sections 72-2-124 and
989
72-2-125, the commission shall annually report to a committee designated by the
990
Legislative Management Committee:
991
(i) a prioritized list of the new transportation capacity projects in the state
992
transportation system and the funding levels available for those projects; and
993
(ii) the unfunded highway construction and maintenance needs within the state.
994
(b) The committee designated by the Legislative Management Committee under
995
Subsection (2)(a) shall:
996
(i) review the list reported by the Transportation Commission; and
997
(ii) make a recommendation to the Legislature on:
998
(A) the amount of additional funding to allocate to transportation; and
999
(B) the source of revenue for the additional funding allocation under Subsection
1000
(2)(b)(ii)(A).
1001
(3) The commission shall review and may approve plans for the construction of a highway
1002
facility over sovereign lakebed lands in accordance with Chapter 6, Part 3, Approval of
1003
Highway Facilities on Sovereign Lands Act.
1004
(4) One or more associations representing airport operators or pilots in the state shall
1005
annually report to the commission recommended airport improvement projects and any
1006
other information related to the associations' expertise and relevant to the commission's
1007
duties.
1008
Section 22. Section 72-19-101, which is renumbered from Section 63N-17-102 is renumbered
1009
and amended to read:
1010
CHAPTER 19. UTAH BROADBAND CENTER
1011
Part 1. General Provisions
1012
[63N-17-102] 72-19-101 . Definitions.
1013
As used in this chapter:
- 30 - 02-26 11:59 1st Sub. (Buff) H.B. 542
1014
(1) "Broadband center" means the Utah Broadband Center created in Section [63N-17-201]
1015
72-19-201.
1016
(2) "Broadband commission" means the Utah Broadband Center Advisory Commission
1017
created in Section 36-29-109.
1018
[(2)] (3) "Final proposal" means the submission provided by the state to the Assistant
1019
Secretary of Commerce for Communications and Information as part of the state's
1020
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(4).
1021
[(3)] (4) "Initial proposal" means the submission provided by the state to the Assistant
1022
Secretary of Commerce for Communications and Information as part of the state's
1023
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(3).
1024
[(4)] (5) "Letter of intent" means the submission provided by the state to the Assistant
1025
Secretary of Commerce for Communications and Information as part of the state's
1026
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(1)(B).
1027
[(5)] (6) "Public-private partnership" means an arrangement or agreement between a
1028
government entity and one or more private persons to fund and provide for a public need
1029
through the development or operation of a public project in which the private person or
1030
persons share with the government entity the responsibility or risk of developing,
1031
owning, maintaining, financing, or operating the project.
1032
[(6)] (7) "Subgrantee" means an entity that receives funds from the state under:
1033
(a) the Broadband Access Grant Program created in Section [63N-17-301] 72-19-301; or
1034
(b) the Broadband Equity Access and Deployment Grant Program created in Section [
1035
63N-17-401] 72-19-401.
1036
[(7)] (8) "State BEAD application" means a submission by the state for a grant under the
1037
federal Broadband Equity Access and Deployment Program established under 47 U.S.C.
1038
Sec. 1702(b), consisting of a letter of intent, initial proposal, and final proposal.
1039
Section 23. Section 72-19-201, which is renumbered from Section 63N-17-201 is renumbered
1040
and amended to read:
1041
Part 2. Utah Broadband Center
1042
[63N-17-201] 72-19-201 . Utah Broadband Center -- Creation -- Director --
1043
Duties.
1044
(1) There is created within the [office] department the Utah Broadband Center.
1045
(2) The executive director shall appoint a director of the broadband center to oversee the
1046
operations of the broadband center.
1047
(3) The broadband center shall:
- 31 - 1st Sub. (Buff) H.B. 542 02-26 11:59
1048
(a) ensure that publicly funded broadband projects continue to be publicly accessible and
1049
provide a public benefit;
1050
(b) develop the statewide digital connectivity plan described in Section [63N-17-203]
1051
72-19-203;
1052
(c) carry out the duties described in Section [63N-17-202] 72-19-202;
1053
(d) administer the Broadband Access Grant Program [in accordance with Part 3,
1054
Broadband Access Grant Program] created in Section 72-19-301; and
1055
(e) administer the Broadband Equity Access and Deployment Grant Program [in
1056
accordance with Part 4, Broadband Equity Access and Deployment Program] created
1057
in Section 72-19-301.
1058
[(f)] (4) The broadband center shall ensure efficiency with respect to:
1059
[(i)] (a) expenditure of funds; and
1060
[(ii)] (b) avoiding duplication of efforts.
1061
[(g)] (5) The broadband center shall consider administering broadband infrastructure funds
1062
in a manner that:
1063
[(i)] (a) efficiently maximizes the leverage of federal funding;
1064
[(ii)] (b) avoids the use of public funds for broadband facilities that duplicate existing
1065
broadband facilities that already meet or exceed federal standards; and
1066
[(iii)] (c) accounts for the benefits and costs to the state of existing facilities, equipment,
1067
and services of public and private broadband providers.
1068
Section 24. Section 72-19-202, which is renumbered from Section 63N-17-202 is renumbered
1069
and amended to read:
1070
[63N-17-202] 72-19-202 . Infrastructure and broadband coordination.
1071
(1) The broadband center shall partner with the Utah Geospatial Resource Center created in
1072
Section 63A-16-505 to collect and maintain a database and interactive map that displays
1073
economic development data statewide, including:
1074
(a) voluntarily submitted broadband availability, speeds, and other broadband data;
1075
(b) voluntarily submitted public utility data;
1076
(c) workforce data, including information regarding:
1077
(i) enterprise zones designated under Section 63N-2-206;
1078
(ii) public institutions of higher education; and
1079
(iii) APEX accelerators;
1080
(d) transportation data, which may include information regarding railway routes,
1081
commuter rail routes, airport locations, and major highways;
- 32 - 02-26 11:59 1st Sub. (Buff) H.B. 542
1082
(e) lifestyle data, which may include information regarding state parks, national parks
1083
and monuments, United States Forest Service boundaries, ski areas, golf courses, and
1084
hospitals; and
1085
(f) other relevant economic development data as determined by the office, including data
1086
provided by partner organizations.
1087
(2) The broadband center may:
1088
(a) make recommendations to state and federal agencies, local governments, the
1089
governor, and the Legislature regarding policies and initiatives that promote the
1090
development of broadband-related infrastructure in the state and help implement
1091
those policies and initiatives;
1092
(b) facilitate coordination between broadband providers and public and private entities;
1093
(c) collect and analyze data on broadband availability and usage in the state, including
1094
Internet speed, capacity, the number of unique visitors, and the availability of
1095
broadband infrastructure throughout the state;
1096
(d) create a voluntary broadband alliance, which shall include broadband providers and
1097
other public and private stakeholders, to solicit input on broadband-related policy
1098
guidance, best practices, and adoption strategies;
1099
(e) work with broadband providers, state and local governments, and other public and
1100
private stakeholders to facilitate and encourage the expansion and maintenance of
1101
broadband infrastructure throughout the state; and
1102
(f) in accordance with the requirements of Title 63J, Chapter 5, Federal Funds
1103
Procedures Act, and in accordance with federal requirements:
1104
(i) apply for federal grants;
1105
(ii) participate in federal programs; and
1106
(iii) administer federally funded broadband-related programs.
1107
Section 25. Section 72-19-203, which is renumbered from Section 63N-17-203 is renumbered
1108
and amended to read:
1109
[63N-17-203] 72-19-203 . Statewide digital connectivity plan.
1110
As used in this section:
1111
(1) ["Commission" ] "Broadband commission" means the Utah Broadband Center Advisory
1112
Commission created in Section 36-29-109.
1113
(2) "Strategic plan" means the statewide digital connectivity plan created in accordance
1114
with Subsections [(2) and ](3) and (4).
1115
(3) The broadband center shall develop the strategic plan.
- 33 - 1st Sub. (Buff) H.B. 542 02-26 11:59
1116
(4) The strategic plan shall include strategies to:
1117
(a) implement broadband connectivity statewide;
1118
(b) promote digital [equity] access throughout the state;
1119
(c) apply for federal infrastructure funds; and
1120
(d) apply for additional funds.
1121
(5) In developing the strategic plan, the broadband center shall work with the broadband
1122
commission.
1123
[(6) The broadband center shall provide the commission with quarterly status updates
1124
regarding:]
1125
[(a) implementation of the commission's recommendations;]
1126
[(b) the grant programs created in Sections 63N-17-301 and 63N-17-401, including:]
1127
[(i) applications received for grant funding;]
1128
[(ii) grant awards about to be made by the broadband center;]
1129
[(iii) grant awards made by the broadband center; and]
1130
[(iv) projects implemented with grant funding;]
1131
[(c) strategic plan development;]
1132
[(d) strategic plan implementation;]
1133
[(e) grants received in addition to those described in Subsection (6)(b);]
1134
[(f) projects funded in addition to those described in Subsection (6)(b); and]
1135
[(g) recommendations for legislation.]
1136
[(7)] (6) The broadband center shall submit the strategic plan to the broadband commission
1137
for the broadband commission's recommendation before finalizing the strategic plan.
1138
[(8)] (7) On or before October 1 of each year, the broadband center shall report to the
1139
broadband commission and the Public Utilities, Energy, and Technology Interim
1140
Committee regarding status updates.
1141
Section 26. Section 72-19-301, which is renumbered from Section 63N-17-301 is renumbered
1142
and amended to read:
1143
Part 3. Broadband Access Grant Program
1144
[63N-17-301] 72-19-301 . Creation of Broadband Access Grant Program.
1145
(1) As used in this part:
1146
(a) "Eligible applicant" means:
1147
(i) a telecommunications provider or an Internet service provider;
1148
(ii) a local government entity and one or more private entities, collectively, who are
1149
parties to a public-private partnership established for the purpose of expanding
- 34 - 02-26 11:59 1st Sub. (Buff) H.B. 542
1150
affordable broadband access in the state; or
1151
(iii) a tribal government.
1152
(b) "Underserved area" means an area of the state that is underserved in terms of the
1153
area's access to broadband service, as further defined by rule made by the department
1154
in coordination with the broadband center.
1155
(c) "Unserved area" means an area of the state that is unserved in terms of the area's
1156
access to broadband service, as further defined by rule made by the department in
1157
coordination with the broadband center.
1158
(2) There is established a grant program known as the Broadband Access Grant Program
1159
that is administered by the broadband center in accordance with this part.
1160
(3)(a) The broadband center may award a grant under this part to an eligible applicant
1161
that submits to the broadband center an application that includes a proposed project
1162
to extend broadband service to individuals and businesses in an unserved area or an
1163
underserved area by providing last-mile connections to end users.
1164
(b) Subsection (3)(a) does not prohibit the broadband center from awarding a grant for a
1165
proposed project that also includes middle-mile elements that are necessary for the
1166
last-mile connections.
1167
(4) In awarding grants under this part, the broadband center shall:
1168
(a) based on the following criteria and in the order provided, prioritize proposed projects:
1169
(i) located in unserved areas;
1170
(ii) located in underserved areas;
1171
(iii)(A) that the eligible applicant developed after meaningful engagement with the
1172
impacted community to identify the community's needs and innovative means
1173
of providing a public benefit that addresses the community's needs; and
1174
(B) that include, as a component of the proposed project, a long-term public
1175
benefit to the impacted community developed in response to the eligible
1176
applicant's engagement with the community;
1177
(iv) located in an economically distressed area of the state, as measured by indices of
1178
unemployment, poverty, or population loss;
1179
(v) that make the greatest investment in last-mile connections;
1180
(vi) that provide higher speed broadband access to end users; and
1181
(vii) for which the eligible applicant provides at least 25% of the money needed for
1182
the proposed project, with higher priority to proposed projects for which the
1183
eligible applicant provides a greater percentage of the money needed for the
- 35 - 1st Sub. (Buff) H.B. 542 02-26 11:59
1184
proposed project; and
1185
(b) consider the impact of available funding for the proposed project from other sources,
1186
including money from matching federal grant programs.
1187
(5) For a project that the eligible applicant cannot complete in a single fiscal year, the
1188
broadband center may distribute grant proceeds for the project over the course of the
1189
project's construction.
1190
(6)(a) Before awarding a grant under this part, the broadband center shall present the
1191
application described in Subsection (3) to the Transportation Commission for
1192
approval.
1193
(b) In awarding a grant under this part, the broadband center shall ensure that grant
1194
funds are not used by a subgrantee in a manner that causes competition among
1195
projects that are substantially supported by state funds or federal funds subgranted by
1196
the state[, as determine in accordance with rules made by the broadband center in
1197
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act].
1198
(7) As provided in and subject to the requirements of Title 63G, Chapter 2, Government
1199
Records Access and Management Act, a record submitted to the broadband center that
1200
contains a trade secret or confidential commercial information described in Subsection
1201
63G-2-305(2) is a protected record.
1202
Section 27. Section 72-19-302, which is renumbered from Section 63N-17-302 is renumbered
1203
and amended to read:
1204
[63N-17-302] 72-19-302 . Duties of the broadband center.
1205
(1) The broadband center shall:
1206
(a) establish an application process by which an eligible applicant may apply for a grant
1207
under this part, which application shall include:
1208
(i) a declaration, signed under penalty of perjury, that the application is complete,
1209
true, and correct; and
1210
(ii) an acknowledgment that the eligible applicant is subject to audit;
1211
(b) establish a method for the broadband center to determine which eligible applicants
1212
qualify to receive a grant;
1213
(c) establish a formula to award grant funds; and
1214
(d) report the information described in Subsections (1)(a) through (c) to the director of
1215
the Division of Finance.
1216
(2) Subject to appropriation, the broadband center shall:
1217
(a) collect applications for grant funds from eligible applicants;
- 36 - 02-26 11:59 1st Sub. (Buff) H.B. 542
1218
(b) determine which applicants qualify for receiving a grant; and
1219
(c) award the grant funds in accordance with the process established under Subsection (1)
1220
and in accordance with Section [63N-17-301] 72-19-301.
1221
(3) [In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1222
broadband center may make rules to administer the grant program] The department, in
1223
coordination with the broadband center, may make rules in accordance with Title 63G,
1224
Chapter 3, Utah Administrative Rulemaking Act, to administer the grant program.
1225
Section 28. Section 72-19-401, which is renumbered from Section 63N-17-401 is renumbered
1226
and amended to read:
1227
Part 4. Broadband Equity Access and Deployment Grant Program
1228
[63N-17-401] 72-19-401 . Creation of Broadband Equity Access and Deployment
1229
Grant Program.
1230
(1) There is established a grant program known as the Broadband Equity Access and
1231
Deployment Grant Program that is administered by the broadband center in accordance
1232
with:
1233
(a) this part; and
1234
(b) the requirements of the National Telecommunications and Information
1235
Administration's Broadband Equity Access and Deployment Program, 47 U.S.C. Sec.
1236
1702 et seq.
1237
(2) The broadband center shall:
1238
(a) prepare and submit the state's Broadband Equity Access and Deployment application,
1239
including the letter of intent, initial proposal, and final proposal to the National
1240
Telecommunications and Information Administration;
1241
(b) administer the Broadband Equity Access and Deployment Grant Program in
1242
accordance with this section and as approved by the National Telecommunications
1243
and Information Administration;
1244
(c) accept and process an application for subgranted funds; and
1245
[(d) report to the broadband commission quarterly on:]
1246
[(i) the progress of the broadband center's submission described in Subsection (2)(a);]
1247
[(ii) the administration of the program;]
1248
[(iii) applications received for subgranted funding;]
1249
[(iv) approved applications for subgranted funds; and]
1250
[(v) projects supported by subgranted funds;]
1251
[(e)] (d) ensure that a subgrantee complies with the state's final proposal to the National
- 37 - 1st Sub. (Buff) H.B. 542 02-26 11:59
1252
Telecommunications and Information Administration[; and] .
1253
[(f) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
1254
Rulemaking Act, necessary to administer this section.]
1255
(3) The department, in coordination with the broadband center, may make rules in
1256
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
1257
administer the grant program.
1258
[(3) The broadband commission shall give the broadband center recommendations during
1259
the quarterly reports described in Subsection (2)(d).]
1260
(4) The broadband center may approve an application for subgranted funds if:
1261
(a) the application meets the requirements of this section;
1262
(b) the application meets any rule made pursuant to this section;
1263
(c) the application meets the requirements of the National Telecommunications and
1264
Information Administration's Broadband Equity Access and Deployment Program, 47
1265
U.S.C. Sec. 1702 et seq.; and
1266
(d) the broadband center has informed the [broadband commission] Transportation
1267
Commission about the application[, as] described in Subsection [(2)(d)] (2)(c).
1268
(5) After the broadband center completes a competitive application process for subgranted
1269
funds but before the broadband center notifies the applicant of the award, the broadband
1270
center shall present to the [broadband commission] Transportation Commission on the
1271
subgrant award.
1272
Section 29. Repealer.
1273
This bill repeals:
1274
Section 63N-1a-201, Creation of commission.
1275
Section 63N-1a-202, Commission duties.
1276
Section 63N-1b-102, Subcommittees generally.
1277
Section 63N-1b-401, Definitions.
1278
Section 63N-1b-402, Women in the Economy Subcommittee created.
1279
Section 63N-1b-403, Purpose -- Powers and duties of the subcommittee.
1280
Section 63N-1b-404, Annual report.
1281
Section 63N-3-204, Administration -- Grants and loans.
1282
Section 30. FY 2026 Appropriations.
1283
The following sums of money are appropriated for the fiscal year beginning July 1,
1284
2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
1285
fiscal year 2026.
- 38 - 02-26 11:59 1st Sub. (Buff) H.B. 542
1286
Subsection 30(a). Operating and Capital Budgets
1287
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1288
Legislature appropriates the following sums of money from the funds or accounts indicated for
1289
the use and support of the government of the state of Utah.
1290
ITEM 1 To Governor's Office of Economic Opportunity - Economic Prosperity
1291
From General Fund (553,600)
1292
From Federal Funds (200,000)
1293
From Dedicated Credits Revenue (93,700)
1294
Schedule of Programs:
1295
Business Services (847,300)
1296
ITEM 2 To Utah Board of Higher Education - Administration
1297
From General Fund 553,600
1298
From Federal Funds 200,000
1299
From Dedicated Credits Revenue 93,700
1300
Schedule of Programs:
1301
Administration 847,300
1302
Section 31. Effective Date.
1303
This bill takes effect on July 1, 2025.
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