03-07 14:43 7th Sub. (Lime) H.B. 542
Chris H. Wilson proposes the following substitute bill:
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Economic Development Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Jon Hawkins
Senate Sponsor: Chris H. Wilson
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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 Office of Homeless Services regarding certain legislative
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appropriations;
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▸ amends provisions of the Governor's Office of Economic Opportunity (office);
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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;
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▸ creates the Office of Housing within the office;
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▸ directs the executive director of the office to coordinate with various departments and
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officials in order to consolidate certain state housing programs from the Housing and
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Community Development Division within the office by July 1, 2026;
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▸ removes the sunset date on the Utah Housing Corporation;
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▸ makes technical and conforming changes; and
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▸ provides intent language regarding the transfer of funding from the Utah Board of Higher
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Education - Administration fund to the Utah Board of Higher Education Nucleus
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Institute upon passage of this bill and H.B. 530, Utah Innovation Lab Modifications.
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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
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Economic Opportunity - Economic Prosperity to the funds or accounts of the Utah Board of
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Higher Education - Administration.
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This bill appropriates $1,900,000 in operating and capital budgets for fiscal year 2026, all of
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which is from the General Fund.
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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 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 413
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35A-8-2203 (Effective 07/01/25), as last amended by Laws of Utah 2022, Chapters 118,
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406
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36-12-23 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 506
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36-29-109 (Effective 07/01/25), as enacted by Laws of Utah 2022, Chapter 458
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53B-34-101 (Effective 07/01/25), as renumbered and amended by Laws of Utah 2022,
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Chapter 362
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53B-34-102 (Effective 07/01/25), as renumbered and amended by Laws of Utah 2022,
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Chapter 362
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53B-34-111 (Effective 07/01/25), as enacted by Laws of Utah 2024, Chapter 482
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63H-8-302 (Effective 07/01/25), as last amended by Laws of Utah 2015, Chapter 164
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and renumbered and amended by Laws of Utah 2015, Chapter 226
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63I-1-263 (Effective 07/01/25), as last amended by Laws of Utah 2024, Third Special
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Session, Chapter 4
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63N-1a-102 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-301 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-303 (Effective 07/01/25), as last amended by Laws of Utah 2022, Chapter 362
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63N-1a-304 (Effective 07/01/25), as renumbered and amended by Laws of Utah 2021,
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Chapter 282
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63N-1a-305 (Effective 07/01/25), as renumbered and amended by Laws of Utah 2021,
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Chapter 282
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63N-1a-306 (Effective 07/01/25), as last amended by Laws of Utah 2022, Chapter 362
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63N-1a-401 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-2-103 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 438
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63N-2-104.3 (Effective 07/01/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-2-107 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-16-302 (Effective 07/01/25), as enacted by Laws of Utah 2024, Chapter 157
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72-1-203 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 517
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72-1-303 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 498
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ENACTS:
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35A-16-103 (Effective 07/01/25), Utah Code Annotated 1953
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63N-1a-303.2 (Effective 07/01/25), Utah Code Annotated 1953
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63N-22-101 (Effective 05/07/25), Utah Code Annotated 1953
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RENUMBERS AND AMENDS:
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72-19-101 (Effective 07/01/25), (Renumbered from 63N-17-102, as last amended
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by Laws of Utah 2024, Chapter 159)
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72-19-201 (Effective 07/01/25), (Renumbered from 63N-17-201, as last amended
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by Laws of Utah 2024, Chapter 159)
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72-19-202 (Effective 07/01/25), (Renumbered from 63N-17-202, as last amended
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by Laws of Utah 2024, Chapter 159)
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72-19-203 (Effective 07/01/25), (Renumbered from 63N-17-203, as last amended
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by Laws of Utah 2024, Chapter 159)
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72-19-301 (Effective 07/01/25), (Renumbered from 63N-17-301, as last amended
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by Laws of Utah 2024, Chapter 159)
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72-19-302 (Effective 07/01/25), (Renumbered from 63N-17-302, as enacted by
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Laws of Utah 2021, Chapter 282)
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72-19-401 (Effective 07/01/25), (Renumbered from 63N-17-401, as enacted by
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Laws of Utah 2024, Chapter 159)
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REPEALS:
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63N-1a-201 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1a-202 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-1b-102 (Effective 07/01/25), as last amended by Laws of Utah 2022, Chapter 118
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63N-1b-401 (Effective 07/01/25), as renumbered and amended by Laws of Utah 2022,
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Chapter 362
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63N-1b-402 (Effective 07/01/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-1b-403 (Effective 07/01/25), as last amended by Laws of Utah 2023, Chapter 499
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63N-1b-404 (Effective 07/01/25), as last amended by Laws of Utah 2024, Chapter 159
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63N-3-204 (Effective 07/01/25), 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 (Effective 07/01/25). 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 (Effective 07/01/25). 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 35A-16-103 is enacted to read:
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35A-16-103 (Effective 07/01/25). Applicability.
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The provisions of this chapter governing funding for the provision of homeless services
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do not apply to money the Legislature appropriates for a direct award grant governed by Title
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63G, Chapter 6b, State Grants.
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Section 4. Section 36-12-23 is amended to read:
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36-12-23 (Effective 07/01/25). 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 5. Section 36-29-109 is amended to read:
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36-29-109 (Effective 07/01/25). 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 6. Section 53B-34-101 is amended to read:
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53B-34-101 (Effective 07/01/25). 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 7. Section 53B-34-102 is amended to read:
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53B-34-102 (Effective 07/01/25). Talent, Education, and Industry Alignment
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Board -- Creation -- Membership -- Expenses -- Duties.
346
(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
399
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 8. Section 53B-34-111 is amended to read:
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403
53B-34-111 (Effective 07/01/25). Youth apprenticeship governance study.
404
(1) As used in this section:
405
(a) "Apprenticeship" means the same as the term is defined in Section 35A-6-102.
406
(b) "Study" means the study created in Subsection (2).
407
(2) There is created a study to design a framework and system for maximizing efficiencies
408
and expanding youth apprenticeship opportunities for students.
409
(3) The study shall be conducted collaboratively by the following entities:
410
(a) the [Governor's Office] governor's office;
411
(b) the State Board of Education;
412
(c) the Department of Workforce Services;
413
(d) the Talent Ready Utah Program; and
414
(e) relevant participating employers as determined by the entities described in
415
Subsections (3)(a) through (d).
416
(4) The study shall examine framework and system design recommendations regarding:
417
(a) ways to increase youth apprenticeship offerings;
418
(b) increasing student and employer participation in youth apprenticeships;
419
(c) formalizing roles and streamlining use of existing infrastructure described in:
420
(i) Title 35A, Chapter 6, Apprenticeship Act;
421
(ii) Title 53B, Chapter 34, Talent, Education, and Industry Alignment, including the
422
role of the state apprenticeship intermediary described in Section 53B-34-103; and
423
(iii) Section 53G-7-902;
424
(d) aligning youth apprenticeship efforts to meet the definition of youth apprenticeship
425
defined in Section 35A-6-102;
426
(e) identifying metrics to assess the success of youth apprenticeship programs;
427
(f) opportunities to leverage secondary and post-secondary educational programs in
428
conjunction with youth apprenticeships, including:
429
(i) career and technical education;
430
(ii) concurrent enrollment; and
431
(iii) stackable credentials; and
432
(g) the creation of career competencies to prepare a qualified workforce.
433
(5) The staff of the Talent Ready Utah Program shall staff the study.
434
(6) No later than May 1, 2025, the entities described in [Subsections (3)(a) through (e)]
435
Subsection (3) shall report the recommendations described in Subsection (4) to[:]
436
[(a)] the talent board[; and] .
- 13 - 7th Sub. (Lime) H.B. 542 03-07 14:43
437
[(b) the Unified Economic Opportunity Commission.]
438
Section 9. Section 63H-8-302 is amended to read:
439
63H-8-302 (Effective 07/01/25). Corporation -- Additional powers.
440
(1) To accomplish the declared purposes of this chapter, the corporation has the following
441
powers:
442
(a) to purchase mortgage loans originated by mortgage lenders or local public bodies
443
made for the purpose of financing the construction, development, rehabilitation,
444
refinancing, or purchase of residential housing for low and moderate income persons;
445
(b) to make mortgage loans and to provide financial assistance to housing sponsors for
446
the purpose of financing the construction, development, rehabilitation, refinancing, or
447
purchase of residential housing for low and moderate income persons;
448
(c) to make mortgage loans and provide financial assistance to housing sponsors for the
449
purpose of financing the operations of a housing development that are necessary or
450
desirable to enable the housing development to remain available as residential
451
housing for low and moderate income persons, whether or not the housing
452
development has been financed by the corporation;
453
(d) to provide financial assistance to any housing authority created under Title 35A,
454
Chapter 8, Part 4, Housing Authorities, which housing authorities may enter into
455
commitments for and accept loans for a housing project as defined in Section
456
35A-8-401; and
457
(e) to make mortgage loans and to provide financial assistance to low and moderate
458
income persons for the construction, rehabilitation, refinancing, or purchase of
459
residential housing.
460
(2) The corporation may issue bonds to purchase loans under Subsection (1)(a) only after a
461
determination by the corporation that the loans are not otherwise available upon
462
reasonably equivalent terms and conditions from private lenders.
463
(3) Loans for owner-occupied housing made under Subsection (1)(a) may not include a
464
penalty for prepayment.
465
(4) The corporation shall make rules or adopt policies and procedures to govern the
466
activities authorized under this section, including:
467
(a) procedures for the submission of requests or the invitation of proposals for the
468
purchase and sale of mortgage loans and the making of mortgage loans;
469
(b) rates, fees, charges, and other terms and conditions of originating or servicing
470
mortgage loans in order to protect against a realization of an excessive financial
- 14 - 03-07 14:43 7th Sub. (Lime) H.B. 542
471
return or benefit by the originator or servicer;
472
(c) the type and amount of collateral, payment bonds, performance bonds, or other
473
security to be provided for construction loans made by the corporation;
474
(d) the nature and amounts of fees to be charged by the corporation to provide for
475
expenses and reserves of the corporation;
476
(e) procedures allowing the corporation to prohibit persons who fail to comply with the
477
rules of the corporation with respect to the operations of a program of the corporation
478
from participating, either directly or indirectly, in the programs of the corporation;
479
(f) the terms and conditions under which the corporation may purchase and make
480
mortgage loans under each program of the corporation;
481
(g) the terms and conditions under which the corporation may provide financial
482
assistance under each program of the corporation;
483
(h) the terms and conditions under which the corporation may guarantee mortgage loans
484
under each program of the corporation; and
485
(i) any other matters related to the duties or exercise of powers under this section.
486
(5)(a)(i) The trustees of the corporation shall elect the directors, trustees, and
487
members, if any, of each subsidiary.
488
(ii) Service by a trustee of the corporation in any of these capacities does not
489
constitute a conflict of interest for any purpose.
490
(iii) The corporation may delegate any of its powers and duties under this chapter to
491
any subsidiary.
492
(iv) Subsidiaries shall constitute legal entities separate and distinct from each other,
493
the corporation, and the state.
494
(b) A note, bond, and other obligation of a subsidiary shall contain on its face a
495
statement to the effect that:
496
(i) the subsidiary is obligated to pay the note, bond, or other obligation solely from
497
the revenues or other funds of the subsidiary;
498
(ii) neither the corporation, nor the state, nor any of its political subdivisions is
499
obligated to pay the note, bond, or other obligation; and
500
(iii) neither the faith and credit nor the taxing power of the state or its political
501
subdivisions is pledged to the payment of principal, the redemption price of, or the
502
interest on, the note, bond, or other obligation.
503
(c) Upon dissolution of a subsidiary of the corporation, any assets shall revert to the
504
corporation or to a successor to the corporation or, failing this succession, to the state.
- 15 - 7th Sub. (Lime) H.B. 542 03-07 14:43
505
(6)(a) The corporation may, with the approval of the state treasurer:
506
(i) enter into interest rate contracts that its trustees determine are necessary,
507
convenient, or appropriate for the control or management of debt or for the cost of
508
servicing debt; and
509
(ii) use corporation funds to satisfy its payment obligations under those contracts.
510
(b) An interest rate contract may contain payment, security, default, termination,
511
remedy, and other terms and conditions that the trustees consider appropriate.
512
(c) An interest rate contract and funds used in connection with an interest rate contract
513
may not be considered a deposit or investment.
514
(7) The corporation shall coordinate with the commissioner of the Governor's Office of
515
Economic Opportunity in fulfilling the corporation's duties.
516
Section 10. Section 63I-1-263 is amended to read:
517
63I-1-263 (Effective 07/01/25). Repeal dates: Titles 63A to 63O.
518
(1) Subsection 63A-5b-405(5), regarding prioritizing and allocating capital improvement
519
funding, is repealed July 1, 2024.
520
(2) Title 63C, Chapter 4a, Constitutional and Federalism Defense Act, is repealed July 1,
521
2028.
522
(3) Title 63C, Chapter 6, Utah Seismic Safety Commission, is repealed January 1, 2025.
523
(4) Title 63C, Chapter 18, Behavioral Health Crisis Response Committee, is repealed
524
December 31, 2026.
525
(5) Title 63C, Chapter 23, Education and Mental Health Coordinating Committee, is
526
repealed December 31, 2024.
527
(6) Title 63C, Chapter 25, State Finance Review Commission, is repealed July 1, 2027.
528
(7) Title 63C, Chapter 27, Cybersecurity Commission, is repealed July 1, 2032.
529
(8) Title 63C, Chapter 28, Ethnic Studies Commission, is repealed July 1, 2026.
530
(9) Title 63C, Chapter 31, State Employee Benefits Advisory Commission, is repealed July
531
1, 2028.
532
(10) Section 63G-6a-805, Purchase from community rehabilitation programs, is repealed
533
July 1, 2026.
534
(11) Title 63G, Chapter 21, Agreements to Provide State Services, is repealed July 1, 2028.
535
(12) Title 63H, Chapter 4, Heber Valley Historic Railroad Authority, is repealed July 1,
536
2029.
537
[(13) Title 63H, Chapter 8, Utah Housing Corporation Act, is repealed July 1, 2026.]
538
[(14)] (13) Subsection 63J-1-602.2(16), related to the Communication Habits to reduce
- 16 - 03-07 14:43 7th Sub. (Lime) H.B. 542
539
Adolescent Threats (CHAT) Pilot Program, is repealed July 1, 2029.
540
[(15)] (14) Subsection 63J-1-602.2(26), regarding the Utah Seismic Safety Commission, is
541
repealed January 1, 2025.
542
[(16)] (15) Section 63L-11-204, Canyon resource management plan, is repealed July 1, 2025.
543
[(17)] (16) Title 63L, Chapter 11, Part 4, Resource Development Coordinating Committee,
544
is repealed July 1, 2027.
545
[(18)] (17) Title 63M, Chapter 7, Part 7, Domestic Violence Offender Treatment Board, is
546
repealed July 1, 2027.
547
[(19)] (18) Section 63M-7-902, Creation -- Membership -- Terms -- Vacancies -- Expenses,
548
is repealed July 1, 2029.
549
[(20)] (19) Title 63M, Chapter 11, Utah Commission on Aging, is repealed July 1, 2026.
550
(20) Section 63N-1a-302.2, Coordination of future Office of Housing, is repealed July 1,
551
2026.
552
[(21) Title 63N, Chapter 1b, Part 4, Women in the Economy Subcommittee, is repealed
553
January 1, 2030.]
554
[(22)] (21) Title 63N, Chapter 2, Part 2, Enterprise Zone Act, is repealed July 1, 2028.
555
[(23)] (22) Subsection 63N-2-511(1)(b), regarding the Board of Tourism Development, is
556
repealed July 1, 2025.
557
[(24)] (23) Section 63N-2-512, Hotel Impact Mitigation Fund, is repealed July 1, 2028.
558
[(25)] (24) Title 63N, Chapter 3, Part 9, Strategic Innovation Grant Pilot Program, is
559
repealed July 1, 2027.
560
[(26)] (25) Title 63N, Chapter 3, Part 11, Manufacturing Modernization Grant Program, is
561
repealed July 1, 2025.
562
[(27)] (26) Title 63N, Chapter 4, Part 4, Rural Employment Expansion Program, is repealed
563
July 1, 2028.
564
[(28)] (27) Section 63N-4-804, which creates the Rural Opportunity Advisory Committee, is
565
repealed July 1, 2027.
566
[(29)] (28) Subsection 63N-4-805(5)(b), regarding the Rural Employment Expansion
567
Program, is repealed July 1, 2028.
568
[(30)] (29) Subsection 63N-7-101(1), regarding the Board of Tourism Development, is
569
repealed July 1, 2025.
570
[(31)] (30) Subsection 63N-7-102(3)(c), regarding a requirement for the Utah Office of
571
Tourism to receive approval from the Board of Tourism Development, is repealed July
572
1, 2025.
- 17 - 7th Sub. (Lime) H.B. 542 03-07 14:43
573
[(32)] (31) Title 63N, Chapter 7, Part 2, Board of Tourism Development, is repealed July 1,
574
2025.
575
Section 11. Section 63N-1a-102 is amended to read:
576
63N-1a-102 (Effective 07/01/25). Definitions.
577
As used in this title:
578
(1) "Baseline jobs" means the number of full-time employee positions that existed within a
579
business entity in the state before the date on which a project related to the business
580
entity is approved by the office or by the GOEO board.
581
(2) "Baseline state revenue" means the amount of state tax revenue collected from a
582
business entity or the employees of a business entity during the year before the date on
583
which a project related to the business entity is approved by the office or by the GOEO
584
board.
585
[(3) "Commission" means the Unified Economic Opportunity Commission created in
586
Section 63N-1a-201.]
587
[(4)] (3) "Economic opportunity agency" includes:
588
(a) the Department of Workforce Services;
589
(b) the Department of Cultural and Community Engagement;
590
(c) the Department of Commerce;
591
(d) the Department of Natural Resources;
592
(e) the Office of Energy Development;
593
(f) the State Board of Education;
594
(g) institutions of higher education;
595
(h) the Utah Multicultural Commission;
596
(i) the World Trade Center Utah;
597
(j) local government entities;
598
(k) associations of governments;
599
(l) the Utah League of Cities and Towns;
600
(m) the Utah Association of Counties;
601
(n) the Economic Development Corporation of Utah;
602
(o) the Small Business Administration;
603
(p) chambers of commerce;
604
(q) industry associations;
605
(r) small business development centers; and
606
(s) other entities identified by the commission or the executive director.
- 18 - 03-07 14:43 7th Sub. (Lime) H.B. 542
607
[(5)] (4) "Executive director" means the executive director of the office.
608
[(6)] (5) "Full-time employee" means an employment position that is filled by an employee
609
who works at least 30 hours per week and:
610
(a) may include an employment position filled by more than one employee, if each
611
employee who works less than 30 hours per week is provided benefits comparable to
612
a full-time employee; and
613
(b) may not include an employment position that is shifted from one jurisdiction in the
614
state to another jurisdiction in the state.
615
[(7)] (6) "GOEO board" means the Board of Economic Opportunity created in Section
616
63N-1a-401.
617
[(8)] (7) "High paying job" means a newly created full-time employee position where the
618
aggregate average annual gross wage of the employment position, not including health
619
care or other paid or unpaid benefits, is:
620
(a) at least 110% of the average wage of the county in which the employment position
621
exists; or
622
(b) for an employment position related to a project described in Chapter 2, Part 1,
623
Economic Development Tax Increment Financing, and that is located within the
624
boundary of a county of the third, fourth, fifth, or sixth class, or located within a
625
municipality in a county of the second class and where the municipality has a
626
population of 10,000 or less:
627
(i) at least 100% of the average wage of the county in which the employment position
628
exists; or
629
(ii) an amount determined by rule made by the office in accordance with Title 63G,
630
Chapter 3, Utah Administrative Rulemaking Act, if the office determines the
631
project is in a county experiencing economic distress.
632
[(9)] (8)(a) "Incremental job" means a full-time employment position in the state that:
633
(i) did not exist within a business entity in the state before the beginning of a project
634
related to the business entity; and
635
(ii) is created in addition to the number of baseline jobs that existed within a business
636
entity.
637
(b) "Incremental job" includes a full-time employment position where the employee is
638
hired:
639
(i) directly by a business entity; or
640
(ii) by a professional employer organization, as defined in Section 31A-40-102, on
- 19 - 7th Sub. (Lime) H.B. 542 03-07 14:43
641
behalf of a business entity.
642
[(10)] (9) "New state revenue" means the state revenue collected from a business entity or a
643
business entity's employees during a calendar year minus the baseline state revenue
644
calculation.
645
[(11)] (10) "Office" or "GOEO" means the Governor's Office of Economic Opportunity.
646
[(12)] (11) "State revenue" means state tax liability paid by a business entity or a business
647
entity's employees under any combination of the following provisions:
648
(a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
649
(b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
650
Information;
651
(c) Title 59, Chapter 10, Part 2, Trusts and Estates;
652
(d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
653
(e) Title 59, Chapter 12, Sales and Use Tax Act.
654
[(13)] (12) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.
655
[(14)] (13) "Statewide economic development strategy" means the economic development
656
strategy developed by the [commission in accordance with Section 63N-1a-202] office in
657
accordance with Section 63N-1a-301.
658
[(15) "Talent board" means the Talent, Education, and Industry Alignment Board created in
659
Section 53B-34-102.]
660
[(16)] (14) "Targeted industry" means an industry or group of industries targeted by the [
661
commission under Section 63N-1a-202] office under Section 63N-1a-301, for economic
662
development in the state.
663
Section 12. Section 63N-1a-301 is amended to read:
664
63N-1a-301 (Effective 07/01/25). Creation of office -- Responsibilities.
665
(1) There is created the Governor's Office of Economic Opportunity.
666
(2) The office is:
667
(a) responsible for creating and implementing the statewide economic development
668
strategy [developed by the commission; and] that:
669
(i) unifies and coordinates economic development efforts in the state;
670
(ii) includes key performance indicators for long-term progress toward the state
671
strategic goals;
672
(iii) establishes reporting and accountability processes for the key performance
673
indicators; and
674
(iv) ensures the success of statewide economic development; and
- 20 - 03-07 14:43 7th Sub. (Lime) H.B. 542
675
(b) the industrial and business promotion authority of the state.
676
(3) The office shall:
677
(a) consistent with the statewide economic development strategy, coordinate and align
678
into a single effort the activities of the economic opportunity agencies in the field of
679
economic development;
680
(b) provide support and direction to economic opportunity agencies in establishing
681
goals, metrics, and activities that align with the statewide economic development
682
strategy;
683
(c) administer and coordinate state and federal economic development grant programs;
684
(d) promote and encourage the economic, commercial, financial, industrial, agricultural,
685
and civic welfare of the state;
686
(e) develop the statewide economic development strategy consistent with the state water
687
policy described in Section 73-1-21, including the state's commitment to appropriate:
688
(i) conservation;
689
(ii) efficient and optimal use of water resources;
690
(iii) infrastructure development and improvement;
691
(iv) optimal agricultural use;
692
(v) water quality;
693
(vi) reasonable access to recreational activities;
694
(vii) effective wastewater treatment; and
695
(viii) protecting and restoring health ecosystems;
696
(f) at least once every five years, identify which industry or groups of industries shall be
697
targeted for economic development in the state;
698
[(e)] (g) promote and encourage the employment of workers in the state and the purchase
699
of goods and services produced in the state by local businesses;
700
[(f)] (h) act to create, develop, attract, and retain business, industry, and commerce in the
701
state:
702
(i) in accordance with the statewide economic development [plan and commission
703
directives] strategy; and
704
(ii) subject to the restrictions in Section 11-41-103;
705
[(g)] (i) act to enhance the state's economy;
706
(j) analyze the state's projected long-term population and economic growth and plan for
707
the anticipated impacts of the projected growth in a manner that improves quality of
708
life and is consistent with the statewide economic development strategy and state
- 21 - 7th Sub. (Lime) H.B. 542 03-07 14:43
709
strategic goals;
710
[(h)] (k) act to assist strategic industries that are likely to drive future economic growth;
711
[(i)] (l) assist communities in the state in developing economic development capacity and
712
coordination with other communities;
713
(m) develop strategies and plans to ensure comprehensive economic development efforts
714
are targeted to the unique needs of rural areas of the state;
715
[(j)] (n) identify areas of education and workforce development in the state that can be
716
improved to support economic and business development;
717
[(k)] (o) [consistent with direction from the commission, ]develop core strategic
718
priorities for the office, which may include:
719
(i) enhancing statewide access to entrepreneurship opportunities and small business
720
support;
721
(ii) focusing industry recruitment and expansion of targeted industries;
722
(iii) ensuring that in awarding competitive economic development incentives the
723
office accurately measures the benefits and costs of the incentives; and
724
(iv) assisting communities with technical support to aid those communities in
725
improving economic development opportunities;
726
[(l)] (p) submit an annual written report as described in Section 63N-1a-306; and
727
[(m)] (q) perform other duties as provided by the Legislature.
728
(4) To perform the office's duties under this title, the office may:
729
(a) enter into a contract or agreement with, or make a grant to, a public or private entity,
730
including a municipality, if the contract or agreement is not in violation of state
731
statute or other applicable law;
732
(b) except as provided in Subsection (4)(c), receive and expend funds from a public or
733
private source for any lawful purpose that is in the state's best interest; and
734
(c) solicit and accept a contribution of money, services, or facilities from a public or
735
private donor, but may not use the contribution for publicizing the exclusive interest
736
of the donor.
737
(5) Money received under Subsection (4)(c) shall be deposited into the General Fund as
738
dedicated credits of the office.
739
[(6)(a) The office shall:]
740
[(i) obtain the advice of the GOEO board before implementing a change to a policy,
741
priority, or objective under which the office operates; and]
742
[(ii) provide periodic updates to the commission regarding the office's efforts under
- 22 - 03-07 14:43 7th Sub. (Lime) H.B. 542
743
Subsections (3)(a) and (b).]
744
[(b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
745
money or services related to the assistance, retention, or recruitment of business,
746
industry, or commerce in the state.]
747
Section 13. Section 63N-1a-303 is amended to read:
748
63N-1a-303 (Effective 07/01/25). Powers and duties of executive director.
749
(1) Unless otherwise expressly provided by statute, the executive director may organize the
750
office in any appropriate manner, including the appointment of deputy directors of the
751
office.
752
(2) The executive director may consolidate personnel and service functions for efficiency
753
and economy in the office.
754
(3) The executive director, with the approval of the governor:
755
(a) may, by following the procedures and requirements of Title 63J, Chapter 5, Federal
756
Funds Procedures Act, seek federal grants, loans, or participation in federal programs;
757
(b) may enter into a lawful contract or agreement with another state, a chamber of
758
commerce organization, a service club, or a private entity; and
759
(c) shall annually prepare and submit to the governor a budget of the office's financial
760
requirements.
761
(4) With the governor's approval, if a federal program requires the expenditure of state
762
funds as a condition for the state to participate in a fund, property, or service, the
763
executive director may expend necessary funds from money provided by the Legislature
764
for the use of the office.
765
(5) The executive director shall coordinate with the executive directors of the Department
766
of Workforce Services and the Governor's Office of Planning and Budget to review data
767
and metrics to be reported to the Legislature as described in [Subsection
768
63N-1a-306(2)(b)] Section 63N-1a-306.
769
(6) Unless otherwise provided in this title, the executive director may make rules in
770
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as
771
necessary for the administration of programs established under state law.
772
Section 14. Section 63N-1a-303.2 is enacted to read:
773
63N-1a-303.2 (Effective 07/01/25). Coordination of future Office of Housing.
774
(1) The executive director shall coordinate with the following in order to create a plan to
775
consolidate the state housing components of the Housing and Community Development
776
Division into the office by July 1, 2026:
- 23 - 7th Sub. (Lime) H.B. 542 03-07 14:43
777
(a) the governor, or the governor's designee;
778
(b) the president of the Senate, or the president's designee;
779
(c) the speaker of the House of Representatives, or the speaker's designee;
780
(d) the executive director of the Department of Workforce Services;
781
(e) the executive director of the Governor's Office of Planning and Budget; and
782
(f) the chairs of the Commission on Housing Affordability, created in Section
783
35A-8-2202.
784
(2) In coordinating with the individuals and entities described in Subsection (1), the
785
executive director shall provide a written report on the plan in Subsection (1), including
786
recommended statutory changes, by September 1, 2025, to:
787
(a) the Economic Development and Workforce Services Interim Committee;
788
(b) the Political Subdivisions Interim Committee;
789
(c) the Economic and Community Development Appropriations Subcommittee; and
790
(d) the Governor's Office of Planning and Budget.
791
(3) The executive director may hire a director for the Office of Housing and the director
792
may assist in the process described in Subsections (1) and (2).
793
Section 15. Section 63N-1a-304 is amended to read:
794
63N-1a-304 (Effective 07/01/25). Executive director and the Public Service
795
Commission.
796
(1) The executive director or the executive director's designee shall:
797
(a) become generally informed of significant rate cases and policy proceedings before
798
the Public Service Commission; and
799
(b) monitor and study the potential economic development impact of [these] the
800
proceedings.
801
(2) In the discretion of the executive director or the executive director's designee, the office
802
may appear in a proceeding before the Public Service Commission to testify, advise, or
803
to present argument regarding the economic development impact of a matter that is the
804
subject of the proceeding.
805
Section 16. Section 63N-1a-305 is amended to read:
806
63N-1a-305 (Effective 07/01/25). Incentive review process.
807
[The Legislature intends that the] The office [will] shall develop an [incentives] incentive
808
review process under the direction of the speaker of the House of Representatives and the
809
president of the Senate.
810
Section 17. Section 63N-1a-306 is amended to read:
- 24 - 03-07 14:43 7th Sub. (Lime) H.B. 542
811
63N-1a-306 (Effective 07/01/25). Annual report -- Content -- Format.
812
(1) The office shall prepare and submit to the governor and the Legislature, by October 1 of
813
each year, an annual written report of the operations, activities, programs, and services
814
of the office, including the divisions, sections, boards, commissions, councils, and
815
committees established under this title, for the preceding fiscal year.
816
(2) For each operation, activity, program, or service provided by the office, the annual
817
report shall include:
818
(a) a description of the operation, activity, program, or service;
819
(b) data and metrics:
820
(i) selected and used by the office to measure progress, performance, effectiveness,
821
and scope of the operation, activity, program, or service, including summary data;
822
and
823
(ii) that are consistent and comparable for each state operation, activity, program, or
824
service that primarily involves employment training or placement as determined
825
by the executive directors of the office, the Department of Workforce Services,
826
and the Governor's Office of Planning and Budget;
827
(c) budget data, including the amount and source of funding, expenses, and allocation of
828
full-time employees for the operation, activity, program, or service;
829
(d) historical data from previous years for comparison with data reported under
830
Subsections (2)(b) and (c);
831
(e) goals, challenges, and achievements related to the operation, activity, program, or
832
service;
833
(f) relevant federal and state statutory references and requirements;
834
(g) contact information of officials knowledgeable and responsible for each operation,
835
activity, program, or service; and
836
(h) other information determined by the office that:
837
(i) may be needed, useful, or of historical significance; or
838
(ii) promotes accountability and transparency for each operation, activity, program,
839
or service with the public and elected officials.
840
(3) The annual report shall be designed to provide clear, accurate, and accessible
841
information to the public, the governor, and the Legislature.
842
(4) The office shall:
843
(a) submit the annual report in accordance with Section 68-3-14; and
844
(b) make the annual report, and previous annual reports, accessible to the public by
- 25 - 7th Sub. (Lime) H.B. 542 03-07 14:43
845
placing a link to the reports on the office's website[; and] .
846
[(c) provide the data and metrics described in Subsection (2)(b) to the talent board.]
847
Section 18. Section 63N-1a-401 is amended to read:
848
63N-1a-401 (Effective 07/01/25). Creation of Board of Economic Opportunity.
849
(1)(a) There is created within the office the Board of Economic Opportunity, consisting
850
of nine members appointed by the [chair of the commission] executive director of the
851
office, in consultation with the [executive director] governor, to four-year terms of
852
office with the advice and consent of the Senate in accordance with Title 63G,
853
Chapter 24, Part 2, Vacancies.
854
(b) The nine members described in Subsection (1)(a) shall include:
855
(i) one member associated with the state's rural communities;
856
(ii) one member associated with direct entrepreneurship in the state;
857
(iii) one member associated with higher education in the state;
858
(iv) five members, other than the members described in Subsections (1)(b)(i) through
859
(iii), that are associated with a targeted industry; and
860
(v) one at-large member.
861
(c) Notwithstanding the requirements of Subsection (1)(a), the [chair of the commission]
862
executive director shall, at the time of appointment or reappointment, adjust the
863
length of terms to ensure that the terms of board members are staggered so that
864
approximately half of the board is appointed every two years.
865
(d) The members may not serve more than two full consecutive terms except when the [
866
chair of the commission] executive director determines that an additional term is in
867
the best interest of the state.
868
(2) When a vacancy occurs in the membership for any reason, the replacement shall be
869
appointed for the unexpired term in accordance with Title 63G, Chapter 24, Part 2,
870
Vacancies.
871
(3) A majority of board members, not including a vacancy, constitutes a quorum for
872
conducting board business and exercising board power.
873
(4) [The chair of the commission ] The executive director shall select one board member as
874
the board's chair and one member as the board's vice chair.
875
(5) A member may not receive compensation or benefits for the member's service, but may
876
receive per diem and travel expenses in accordance with:
877
(a) Section 63A-3-106;
878
(b) Section 63A-3-107; and
- 26 - 03-07 14:43 7th Sub. (Lime) H.B. 542
879
(c) rules made by the Division of Finance under Sections 63A-3-106 and 63A-3-107.
880
(6) A member shall comply with the conflict of interest provisions described in Title 63G,
881
Chapter 24, Part 3, Conflicts of Interest.
882
Section 19. Section 63N-2-103 is amended to read:
883
63N-2-103 (Effective 07/01/25). Definitions.
884
As used in this part:
885
(1)(a) "Business entity" means a person that enters into a written agreement with the
886
office to initiate a new commercial project in Utah that will qualify the person to
887
receive a tax credit under Section 59-7-614.2 or 59-10-1107.
888
(b) With respect to a tax credit authorized by the office in accordance with Subsection
889
63N-2-104.3(2), "business entity" includes a nonprofit entity.
890
(2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
891
industrial, manufacturing, business park, research park, or other appropriate business
892
related use in a general plan that contemplates future growth.
893
(3) "Development zone" means an economic development zone created under Section
894
63N-2-104.
895
(4) "Local government entity" means a county, city, or town.
896
(5) "New commercial project" means an economic development opportunity that:
897
(a) involves a targeted industry; or
898
(b) is located within:
899
(i) a county of the third, fourth, fifth, or sixth class; or
900
(ii) a municipality that has a population of 10,000 or less and the municipality is
901
located within a county of the second class[; or] .
902
[(c) involves an economic development opportunity that the commission determines to
903
be eligible for a tax credit under this part.]
904
(6) "Remote work opportunity" means a new commercial project that:
905
(a) does not require a physical office in the state where employees associated with the
906
new commercial project are required to work; and
907
(b) requires employees associated with the new commercial project to:
908
(i) work remotely from a location within the state; and
909
(ii) maintain residency in the state.
910
(7) "Significant capital investment" means an investment in capital or fixed assets, which
911
may include real property, personal property, and other fixtures related to a new
912
commercial project that represents an expansion of existing operations in the state or
- 27 - 7th Sub. (Lime) H.B. 542 03-07 14:43
913
that increases the business entity's existing workforce in the state.
914
(8) "Tax credit" means an economic development tax credit created by Section 59-7-614.2
915
or 59-10-1107.
916
(9) "Tax credit amount" means the amount the office lists as a tax credit on a tax credit
917
certificate for a taxable year.
918
(10) "Tax credit certificate" means a certificate issued by the office that:
919
(a) lists the name of the business entity to which the office authorizes a tax credit;
920
(b) lists the business entity's taxpayer identification number;
921
(c) lists the amount of tax credit that the office authorizes the business entity for the
922
taxable year; and
923
(d) may include other information as determined by the office.
924
(11) "Written agreement" means a written agreement entered into between the office and a
925
business entity under Section 63N-2-104.2.
926
Section 20. Section 63N-2-104.3 is amended to read:
927
63N-2-104.3 (Effective 07/01/25). Limitations on tax credit amount.
928
(1) Except as provided in Subsection (2)(a), for a new commercial project that is located
929
within the boundary of a county of the first or second class, the office may not authorize
930
a tax credit that exceeds:
931
(a) 50% of the new state revenues from the new commercial project in any given year; or
932
(b) 30% of the new state revenues from the new commercial project over a period of up
933
to 20 years[; or] .
934
[(c) 35% of the new state revenues from the new commercial project over a period of up
935
to 20 years, if:]
936
[(i) the new commercial project brings 2,500 or more new incremental jobs to the
937
state;]
938
[(ii) the amount of capital expenditures associated with the new commercial project is
939
$1,000,000,000 or more; and]
940
[(iii) the commission approves the tax credit.]
941
(2) If the office authorizes a tax credit for a new commercial project located within the
942
boundary of:
943
(a) a municipality with a population of 10,000 or less located within a county of the
944
second class and that is experiencing economic hardship as determined by the office,
945
the office may authorize a tax credit of up to 50% of new state revenues from the new
946
commercial project over a period of up to 20 years;
- 28 - 03-07 14:43 7th Sub. (Lime) H.B. 542
947
(b) a county of the third class, the office may authorize a tax credit of up to 50% of new
948
state revenues from the new commercial project over a period of up to 20 years; and
949
(c) a county of the fourth, fifth, or sixth class, the office may authorize a tax credit of
950
50% of new state revenues from the new commercial project over a period of up to
951
20 years.
952
Section 21. Section 63N-2-107 is amended to read:
953
63N-2-107 (Effective 07/01/25). Reports of new state revenue, partial rebates,
954
and tax credits.
955
(1) Before October 1 of each year, the office shall submit a report to the Governor's Office
956
of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of
957
Finance identifying:
958
(a)(i) the total estimated amount of new state revenue created from new commercial
959
projects;
960
(ii) the estimated amount of new state revenue from new commercial projects that
961
will be generated from:
962
(A) sales tax;
963
(B) income tax; and
964
(C) corporate franchise and income tax; and
965
(iii) the minimum number of new incremental jobs and high paying jobs that will be
966
created before any tax credit is awarded; and
967
(b) the total estimated amount of tax credits that the office projects that business entities
968
will qualify to claim under this part.
969
(2) By the first business day of each month, the office shall submit a report to the
970
Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst,
971
and the Division of Finance identifying:
972
(a) each new written agreement that the office entered into since the last report;
973
(b) the estimated amount of new state revenue that will be generated under each written
974
agreement described in Subsection (2)(a);
975
(c) the estimated maximum amount of tax credits that a business entity could qualify for
976
under each written agreement described in Subsection (2)(a); and
977
(d) the minimum number of new incremental jobs and high paying jobs that will be
978
created before any tax credit is awarded.
979
(3) At the reasonable request of the Governor's Office of Planning and Budget, the Office
980
of the Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
- 29 - 7th Sub. (Lime) H.B. 542 03-07 14:43
981
additional information about the tax credit, new incremental jobs and high paying jobs,
982
costs, and economic benefits related to this part, if the information is part of a public
983
record as defined in Section 63G-2-103.
984
[(4) By October 1, the office shall submit to the Economic Development and Workforce
985
Services Interim Committee, the Business, Economic Development, and Labor
986
Appropriations Subcommittee, and the governor, a written report that provides an
987
overview of the implementation and efficacy of the statewide economic development
988
strategy, including an analysis of the extent to which the office's programs are aligned
989
with the prevailing economic conditions expected in the next fiscal year.]
990
Section 22. Section 63N-16-302 is amended to read:
991
63N-16-302 (Effective 07/01/25). Proactive regulatory relief efforts.
992
(1) As used in this section:
993
(a) "Regulatory framework" means a framework for determining the risk level to the
994
public if a law or regulation that inhibits the creation or success of new and existing
995
companies or industries were to be permanently removed or temporarily waived.
996
(b) "Risk level" means a level of risk categorized from low, medium, and high.
997
(2) The regulatory relief office may:
998
(a) review, at any time, any existing state laws or regulations that may unnecessarily
999
inhibit the creation or success of companies or industries other than the occupational
1000
regulations of individuals reviewed by the Office of Professional Licensure Review
1001
under Title 13, Chapter 1b, Office of Professional Licensure Review; and
1002
(b) provide recommendations to the governor and the Legislature on modifying those
1003
state laws and regulations described in Subsection (2)(a).
1004
(3) The regulatory relief office shall:
1005
(a) create a regulatory framework; and
1006
(b) annually study the laws and regulations of at least two industries selected from:
1007
(i) an industry targeted for economic development by the [Unified Economic
1008
Opportunity Commission] office as described in Section [63N-1a-202] 63N-1a-302;
1009
or
1010
(ii) an industry designated by the General Regulatory Sandbox Program Advisory
1011
Committee for study by the regulatory relief office.
1012
(4) In undertaking the review described in Subsection [(3), ] (2), the regulatory relief office
1013
shall:
1014
(a) identify any law or regulation that the regulatory relief office determines inhibits the
- 30 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1015
creation or success of new and existing companies or industries;
1016
(b) apply the regulatory framework to the identified law or regulation; and
1017
(c) consider:
1018
(i) the history of the identified regulation or law, including the reasons why the
1019
regulation or law was originally enacted;
1020
(ii) whether the identified regulation or law:
1021
(A) creates an unnecessary barrier to industry for businesses; or
1022
(B) imposes an unnecessary cost to businesses or consumers;
1023
(iii) whether the penalty for violation of the regulation or law, if any, is proportional
1024
to the potential harm; and
1025
(iv) if there are potentially less burdensome alternatives to the existing regulation or
1026
law and apply the regulatory framework to that alternative.
1027
(5) The regulatory relief office shall submit as part of the report described in Section
1028
63N-16-105:
1029
(a) a detailed overview of the regulatory relief office's study of the laws and regulations
1030
as described in this section, including the reasons why the laws and regulations of a
1031
particular industry were selected for study and the strategy the office implemented to
1032
study the laws and regulations of that industry; and
1033
(b) recommended changes to a law or regulation identified by the regulatory relief office
1034
in Subsection (4) that the regulatory relief office determines:
1035
(i) is inhibiting the success of businesses, companies, or industries; and
1036
(ii) would not present a high risk level to the public if the law or regulation were
1037
permanently removed or temporarily waived.
1038
Section 23. Section 63N-22-101 is enacted to read:
1039
63N-22-101 (Effective 05/07/25). Office of Housing.
1040
There is created the Office of Housing.
1041
Section 24. Section 72-1-203 is amended to read:
1042
72-1-203 (Effective 07/01/25). Deputy director -- Appointment -- Qualifications
1043
-- Other assistants and advisers -- Salaries.
1044
(1) The executive director shall appoint the following deputy directors, who shall serve at
1045
the discretion of the executive director:
1046
(a) the deputy director of engineering and operation, who shall be a registered
1047
professional engineer in the state, and who shall be the chief engineer of the
1048
department; and
- 31 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1049
(b) the deputy director of planning and investment.
1050
(2) As assigned by the executive director, the deputy directors described in Subsection (1)
1051
may assist the executive director with the following departmental responsibilities:
1052
(a) project development, including statewide standards for project design and
1053
construction, right-of-way, materials, testing, structures, and construction;
1054
(b) oversight of the management of the region offices described in Section 72-1-205;
1055
(c) operations and traffic management;
1056
(d) oversight of operations of motor carriers and ports;
1057
(e) transportation systems safety;
1058
(f) aeronautical operations;
1059
(g) equipment for department engineering and maintenance functions;
1060
(h) oversight and coordination of planning, including:
1061
(i) development of statewide strategic initiatives for planning across all modes of
1062
transportation;
1063
(ii) coordination with metropolitan planning organizations and local governments;
1064
(iii) coordination with a large public transit district, including planning, project
1065
development, outreach, programming, environmental studies and impact
1066
statements, construction, and impacts on public transit operations; and
1067
(iv) corridor and area planning;
1068
(i) asset management;
1069
(j) programming and prioritization of transportation projects;
1070
(k) fulfilling requirements for environmental studies and impact statements;
1071
(l) resource investment, including identification, development, and oversight of
1072
public-private partnership opportunities;
1073
(m) data analytics services to the department;
1074
(n) corridor preservation;
1075
(o) employee development;
1076
(p) maintenance planning;
1077
(q) oversight and facilitation of the negotiations and integration of public transit
1078
providers described in Section 17B-2a-827;
1079
(r) oversight and supervision of any fixed guideway capital development project within
1080
the boundaries of a large public transit district for which any state funds are
1081
expended, including those responsibilities described in Subsections (2)(a), (h), (j),
1082
(k), and (l), and the implementation and enforcement of any federal grant obligations
- 32 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1083
associated with fixed guideway capital development project funding; and
1084
(s) other departmental responsibilities as determined by the executive director.
1085
(3) The executive director shall ensure that the same deputy director does not oversee or
1086
supervise both the fixed guideway capital development responsibilities described in
1087
Subsection (2)(r) and the department's fixed guideway rail safety responsibilities,
1088
including the responsibilities described in Section 72-1-214.
1089
(4) The executive director shall ensure that the same deputy director does not oversee or
1090
supervise both the authorization of a telecommunication provider to have longitudinal
1091
access to state right-of-way as described in Section 72-7-108, and the operations and
1092
duties of the Utah Broadband Center created in Section 72-19-201.
1093
Section 25. Section 72-1-303 is amended to read:
1094
72-1-303 (Effective 07/01/25). Duties of commission.
1095
(1) The commission has the following duties:
1096
(a) determining priorities and funding levels of projects and programs in the state
1097
transportation systems and the capital development of new public transit facilities for
1098
each fiscal year based on project lists compiled by the department and taking into
1099
consideration the strategic initiatives described in Section 72-1-211;
1100
(b) determining additions and deletions to state highways under Chapter 4, Designation
1101
of State Highways Act;
1102
(c) holding public meetings and otherwise providing for public input in transportation
1103
matters;
1104
(d) making policies and rules in accordance with Title 63G, Chapter 3, Utah
1105
Administrative Rulemaking Act, necessary to perform the commission's duties
1106
described under this section;
1107
(e) in accordance with Section 63G-4-301, reviewing orders issued by the executive
1108
director in adjudicative proceedings held in accordance with Title 63G, Chapter 4,
1109
Administrative Procedures Act;
1110
(f) advising the department on state transportation systems policy;
1111
(g) approving settlement agreements of condemnation cases subject to Section
1112
63G-10-401;
1113
(h) in accordance with Section 17B-2a-807, appointing a commissioner to serve as a
1114
nonvoting member or a voting member on the board of trustees of a public transit
1115
district;
1116
(i) in accordance with Section 17B-2a-808, reviewing, at least annually, the short-term
- 33 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1117
and long-range public transit plans;
1118
(j) determining the priorities and funding levels of public transit innovation grants, as
1119
defined in Section 72-2-401;[ and]
1120
(k) approving grant awards administered by the Utah Broadband Center in accordance
1121
with Section 17-19-301; and
1122
[(k)] (l) reviewing administrative rules made, substantively amended, or repealed by the
1123
department.
1124
(2)(a) For projects prioritized with funding provided under Sections 72-2-124 and
1125
72-2-125, the commission shall annually report to a committee designated by the
1126
Legislative Management Committee:
1127
(i) a prioritized list of the new transportation capacity projects in the state
1128
transportation system and the funding levels available for those projects; and
1129
(ii) the unfunded highway construction and maintenance needs within the state.
1130
(b) The committee designated by the Legislative Management Committee under
1131
Subsection (2)(a) shall:
1132
(i) review the list reported by the Transportation Commission; and
1133
(ii) make a recommendation to the Legislature on:
1134
(A) the amount of additional funding to allocate to transportation; and
1135
(B) the source of revenue for the additional funding allocation under Subsection
1136
(2)(b)(ii)(A).
1137
(3) The commission shall review and may approve plans for the construction of a highway
1138
facility over sovereign lakebed lands in accordance with Chapter 6, Part 3, Approval of
1139
Highway Facilities on Sovereign Lands Act.
1140
(4) One or more associations representing airport operators or pilots in the state shall
1141
annually report to the commission recommended airport improvement projects and any
1142
other information related to the associations' expertise and relevant to the commission's
1143
duties.
1144
Section 26. Section 72-19-101, which is renumbered from Section 63N-17-102 is renumbered
1145
and amended to read:
1146
CHAPTER 19. UTAH BROADBAND CENTER
1147
Part 1. General Provisions
1148
[63N-17-102] 72-19-101 (Effective 07/01/25). Definitions.
1149
As used in this chapter:
- 34 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1150
(1) "Broadband center" means the Utah Broadband Center created in Section [63N-17-201]
1151
72-19-201.
1152
(2) "Broadband commission" means the Utah Broadband Center Advisory Commission
1153
created in Section 36-29-109.
1154
[(2)] (3) "Final proposal" means the submission provided by the state to the Assistant
1155
Secretary of Commerce for Communications and Information as part of the state's
1156
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(4).
1157
[(3)] (4) "Initial proposal" means the submission provided by the state to the Assistant
1158
Secretary of Commerce for Communications and Information as part of the state's
1159
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(3).
1160
[(4)] (5) "Letter of intent" means the submission provided by the state to the Assistant
1161
Secretary of Commerce for Communications and Information as part of the state's
1162
BEAD Application, as set forth in 47 U.S.C. Sec. 1702(e)(1)(B).
1163
[(5)] (6) "Public-private partnership" means an arrangement or agreement between a
1164
government entity and one or more private persons to fund and provide for a public need
1165
through the development or operation of a public project in which the private person or
1166
persons share with the government entity the responsibility or risk of developing,
1167
owning, maintaining, financing, or operating the project.
1168
[(6)] (7) "Subgrantee" means an entity that receives funds from the state under:
1169
(a) the Broadband Access Grant Program created in Section [63N-17-301] 72-19-301; or
1170
(b) the Broadband Equity Access and Deployment Grant Program created in Section [
1171
63N-17-401] 72-19-401.
1172
[(7)] (8) "State BEAD application" means a submission by the state for a grant under the
1173
federal Broadband Equity Access and Deployment Program established under 47 U.S.C.
1174
Sec. 1702(b), consisting of a letter of intent, initial proposal, and final proposal.
1175
Section 27. Section 72-19-201, which is renumbered from Section 63N-17-201 is renumbered
1176
and amended to read:
1177
Part 2. Utah Broadband Center
1178
[63N-17-201] 72-19-201 (Effective 07/01/25). Utah Broadband Center -- Creation
1179
-- Director -- Duties.
1180
(1) There is created within the [office] department the Utah Broadband Center.
1181
(2) The executive director shall appoint a director of the broadband center to oversee the
1182
operations of the broadband center.
1183
(3) The broadband center shall:
- 35 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1184
(a) ensure that publicly funded broadband projects continue to be publicly accessible and
1185
provide a public benefit;
1186
(b) develop the statewide digital connectivity plan described in Section [63N-17-203]
1187
72-19-203;
1188
(c) carry out the duties described in Section [63N-17-202] 72-19-202;
1189
(d) administer the Broadband Access Grant Program [in accordance with Part 3,
1190
Broadband Access Grant Program] created in Section 72-19-301; and
1191
(e) administer the Broadband Equity Access and Deployment Grant Program [in
1192
accordance with Part 4, Broadband Equity Access and Deployment Program] created
1193
in Section 72-19-301.
1194
[(f)] (4) The broadband center shall ensure efficiency with respect to:
1195
[(i)] (a) expenditure of funds; and
1196
[(ii)] (b) avoiding duplication of efforts.
1197
[(g)] (5) The broadband center shall consider administering broadband infrastructure funds
1198
in a manner that:
1199
[(i)] (a) efficiently maximizes the leverage of federal funding;
1200
[(ii)] (b) avoids the use of public funds for broadband facilities that duplicate existing
1201
broadband facilities that already meet or exceed federal standards; and
1202
[(iii)] (c) accounts for the benefits and costs to the state of existing facilities, equipment,
1203
and services of public and private broadband providers.
1204
Section 28. Section 72-19-202, which is renumbered from Section 63N-17-202 is renumbered
1205
and amended to read:
1206
[63N-17-202] 72-19-202 (Effective 07/01/25). Infrastructure and broadband
1207
coordination.
1208
(1) The broadband center shall partner with the Utah Geospatial Resource Center created in
1209
Section 63A-16-505 to collect and maintain a database and interactive map that displays
1210
economic development data statewide, including:
1211
(a) voluntarily submitted broadband availability, speeds, and other broadband data;
1212
(b) voluntarily submitted public utility data;
1213
(c) workforce data, including information regarding:
1214
(i) enterprise zones designated under Section 63N-2-206;
1215
(ii) public institutions of higher education; and
1216
(iii) APEX accelerators;
1217
(d) transportation data, which may include information regarding railway routes,
- 36 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1218
commuter rail routes, airport locations, and major highways;
1219
(e) lifestyle data, which may include information regarding state parks, national parks
1220
and monuments, United States Forest Service boundaries, ski areas, golf courses, and
1221
hospitals; and
1222
(f) other relevant economic development data as determined by the office, including data
1223
provided by partner organizations.
1224
(2) The broadband center may:
1225
(a) make recommendations to state and federal agencies, local governments, the
1226
governor, and the Legislature regarding policies and initiatives that promote the
1227
development of broadband-related infrastructure in the state and help implement
1228
those policies and initiatives;
1229
(b) facilitate coordination between broadband providers and public and private entities;
1230
(c) collect and analyze data on broadband availability and usage in the state, including
1231
Internet speed, capacity, the number of unique visitors, and the availability of
1232
broadband infrastructure throughout the state;
1233
(d) create a voluntary broadband alliance, which shall include broadband providers and
1234
other public and private stakeholders, to solicit input on broadband-related policy
1235
guidance, best practices, and adoption strategies;
1236
(e) work with broadband providers, state and local governments, and other public and
1237
private stakeholders to facilitate and encourage the expansion and maintenance of
1238
broadband infrastructure throughout the state; and
1239
(f) in accordance with the requirements of Title 63J, Chapter 5, Federal Funds
1240
Procedures Act, and in accordance with federal requirements:
1241
(i) apply for federal grants;
1242
(ii) participate in federal programs; and
1243
(iii) administer federally funded broadband-related programs.
1244
Section 29. Section 72-19-203, which is renumbered from Section 63N-17-203 is renumbered
1245
and amended to read:
1246
[63N-17-203] 72-19-203 (Effective 07/01/25). Statewide digital connectivity plan.
1247
As used in this section:
1248
(1) ["Commission" ] "Broadband commission" means the Utah Broadband Center Advisory
1249
Commission created in Section 36-29-109.
1250
(2) "Strategic plan" means the statewide digital connectivity plan created in accordance
1251
with Subsections [(2) and ](3) and (4).
- 37 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1252
(3) The broadband center shall develop the strategic plan.
1253
(4) The strategic plan shall include strategies to:
1254
(a) implement broadband connectivity statewide;
1255
(b) promote digital [equity] access throughout the state;
1256
(c) apply for federal infrastructure funds; and
1257
(d) apply for additional funds.
1258
(5) In developing the strategic plan, the broadband center shall work with the broadband
1259
commission.
1260
[(6) The broadband center shall provide the commission with quarterly status updates
1261
regarding:]
1262
[(a) implementation of the commission's recommendations;]
1263
[(b) the grant programs created in Sections 63N-17-301 and 63N-17-401, including:]
1264
[(i) applications received for grant funding;]
1265
[(ii) grant awards about to be made by the broadband center;]
1266
[(iii) grant awards made by the broadband center; and]
1267
[(iv) projects implemented with grant funding;]
1268
[(c) strategic plan development;]
1269
[(d) strategic plan implementation;]
1270
[(e) grants received in addition to those described in Subsection (6)(b);]
1271
[(f) projects funded in addition to those described in Subsection (6)(b); and]
1272
[(g) recommendations for legislation.]
1273
[(7)] (6) The broadband center shall submit the strategic plan to the broadband commission
1274
for the broadband commission's recommendation before finalizing the strategic plan.
1275
[(8)] (7) On or before October 1 of each year, the broadband center shall report to the
1276
broadband commission and the Public Utilities, Energy, and Technology Interim
1277
Committee regarding status updates.
1278
Section 30. Section 72-19-301, which is renumbered from Section 63N-17-301 is renumbered
1279
and amended to read:
1280
Part 3. Broadband Access Grant Program
1281
[63N-17-301] 72-19-301 (Effective 07/01/25). Creation of Broadband Access
1282
Grant Program.
1283
(1) As used in this part:
1284
(a) "Eligible applicant" means:
1285
(i) a telecommunications provider or an Internet service provider;
- 38 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1286
(ii) a local government entity and one or more private entities, collectively, who are
1287
parties to a public-private partnership established for the purpose of expanding
1288
affordable broadband access in the state; or
1289
(iii) a tribal government.
1290
(b) "Underserved area" means an area of the state that is underserved in terms of the
1291
area's access to broadband service, as further defined by rule made by the department
1292
in coordination with the broadband center.
1293
(c) "Unserved area" means an area of the state that is unserved in terms of the area's
1294
access to broadband service, as further defined by rule made by the department in
1295
coordination with the broadband center.
1296
(2) There is established a grant program known as the Broadband Access Grant Program
1297
that is administered by the broadband center in accordance with this part.
1298
(3)(a) The broadband center may award a grant under this part to an eligible applicant
1299
that submits to the broadband center an application that includes a proposed project
1300
to extend broadband service to individuals and businesses in an unserved area or an
1301
underserved area by providing last-mile connections to end users.
1302
(b) Subsection (3)(a) does not prohibit the broadband center from awarding a grant for a
1303
proposed project that also includes middle-mile elements that are necessary for the
1304
last-mile connections.
1305
(4) In awarding grants under this part, the broadband center shall:
1306
(a) based on the following criteria and in the order provided, prioritize proposed projects:
1307
(i) located in unserved areas;
1308
(ii) located in underserved areas;
1309
(iii)(A) that the eligible applicant developed after meaningful engagement with the
1310
impacted community to identify the community's needs and innovative means
1311
of providing a public benefit that addresses the community's needs; and
1312
(B) that include, as a component of the proposed project, a long-term public
1313
benefit to the impacted community developed in response to the eligible
1314
applicant's engagement with the community;
1315
(iv) located in an economically distressed area of the state, as measured by indices of
1316
unemployment, poverty, or population loss;
1317
(v) that make the greatest investment in last-mile connections;
1318
(vi) that provide higher speed broadband access to end users; and
1319
(vii) for which the eligible applicant provides at least 25% of the money needed for
- 39 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1320
the proposed project, with higher priority to proposed projects for which the
1321
eligible applicant provides a greater percentage of the money needed for the
1322
proposed project; and
1323
(b) consider the impact of available funding for the proposed project from other sources,
1324
including money from matching federal grant programs.
1325
(5) For a project that the eligible applicant cannot complete in a single fiscal year, the
1326
broadband center may distribute grant proceeds for the project over the course of the
1327
project's construction.
1328
(6)(a) Before awarding a grant under this part, the broadband center shall present the
1329
application described in Subsection (3) to the Transportation Commission for
1330
approval.
1331
(b) In awarding a grant under this part, the broadband center shall ensure that grant
1332
funds are not used by a subgrantee in a manner that causes competition among
1333
projects that are substantially supported by state funds or federal funds subgranted by
1334
the state[, as determine in accordance with rules made by the broadband center in
1335
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act].
1336
(7) As provided in and subject to the requirements of Title 63G, Chapter 2, Government
1337
Records Access and Management Act, a record submitted to the broadband center that
1338
contains a trade secret or confidential commercial information described in Subsection
1339
63G-2-305(2) is a protected record.
1340
Section 31. Section 72-19-302, which is renumbered from Section 63N-17-302 is renumbered
1341
and amended to read:
1342
[63N-17-302] 72-19-302 (Effective 07/01/25). Duties of the broadband center.
1343
(1) The broadband center shall:
1344
(a) establish an application process by which an eligible applicant may apply for a grant
1345
under this part, which application shall include:
1346
(i) a declaration, signed under penalty of perjury, that the application is complete,
1347
true, and correct; and
1348
(ii) an acknowledgment that the eligible applicant is subject to audit;
1349
(b) establish a method for the broadband center to determine which eligible applicants
1350
qualify to receive a grant;
1351
(c) establish a formula to award grant funds; and
1352
(d) report the information described in Subsections (1)(a) through (c) to the director of
1353
the Division of Finance.
- 40 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1354
(2) Subject to appropriation, the broadband center shall:
1355
(a) collect applications for grant funds from eligible applicants;
1356
(b) determine which applicants qualify for receiving a grant; and
1357
(c) award the grant funds in accordance with the process established under Subsection (1)
1358
and in accordance with Section [63N-17-301] 72-19-301.
1359
(3) [In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1360
broadband center may make rules to administer the grant program] The department, in
1361
coordination with the broadband center, may make rules in accordance with Title 63G,
1362
Chapter 3, Utah Administrative Rulemaking Act, to administer the grant program.
1363
Section 32. Section 72-19-401, which is renumbered from Section 63N-17-401 is renumbered
1364
and amended to read:
1365
Part 4. Broadband Equity Access and Deployment Grant Program
1366
[63N-17-401] 72-19-401 (Effective 07/01/25). Creation of Broadband Equity
1367
Access and Deployment Grant Program.
1368
(1) There is established a grant program known as the Broadband Equity Access and
1369
Deployment Grant Program that is administered by the broadband center in accordance
1370
with:
1371
(a) this part; and
1372
(b) the requirements of the National Telecommunications and Information
1373
Administration's Broadband Equity Access and Deployment Program, 47 U.S.C. Sec.
1374
1702 et seq.
1375
(2) The broadband center shall:
1376
(a) prepare and submit the state's Broadband Equity Access and Deployment application,
1377
including the letter of intent, initial proposal, and final proposal to the National
1378
Telecommunications and Information Administration;
1379
(b) administer the Broadband Equity Access and Deployment Grant Program in
1380
accordance with this section and as approved by the National Telecommunications
1381
and Information Administration;
1382
(c) accept and process an application for subgranted funds; and
1383
[(d) report to the broadband commission quarterly on:]
1384
[(i) the progress of the broadband center's submission described in Subsection (2)(a);]
1385
[(ii) the administration of the program;]
1386
[(iii) applications received for subgranted funding;]
1387
[(iv) approved applications for subgranted funds; and]
- 41 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1388
[(v) projects supported by subgranted funds;]
1389
[(e)] (d) ensure that a subgrantee complies with the state's final proposal to the National
1390
Telecommunications and Information Administration[; and] .
1391
[(f) make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
1392
Rulemaking Act, necessary to administer this section.]
1393
(3) The department, in coordination with the broadband center, may make rules in
1394
accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to
1395
administer the grant program.
1396
[(3) The broadband commission shall give the broadband center recommendations during
1397
the quarterly reports described in Subsection (2)(d).]
1398
(4) The broadband center may approve an application for subgranted funds if:
1399
(a) the application meets the requirements of this section;
1400
(b) the application meets any rule made pursuant to this section;
1401
(c) the application meets the requirements of the National Telecommunications and
1402
Information Administration's Broadband Equity Access and Deployment Program, 47
1403
U.S.C. Sec. 1702 et seq.; and
1404
(d) the broadband center has informed the [broadband commission] Transportation
1405
Commission about the application[, as] described in Subsection [(2)(d)] (2)(c).
1406
(5) After the broadband center completes a competitive application process for subgranted
1407
funds but before the broadband center notifies the applicant of the award, the broadband
1408
center shall present to the [broadband commission] Transportation Commission on the
1409
subgrant award.
1410
Section 33. Repealer.
1411
This bill repeals:
1412
Section 63N-1a-201, Creation of commission.
1413
Section 63N-1a-202, Commission duties.
1414
Section 63N-1b-102, Subcommittees generally.
1415
Section 63N-1b-401, Definitions.
1416
Section 63N-1b-402, Women in the Economy Subcommittee created.
1417
Section 63N-1b-403, Purpose -- Powers and duties of the subcommittee.
1418
Section 63N-1b-404, Annual report.
1419
Section 63N-3-204, Administration -- Grants and loans.
1420
Section 34. FY 2026 Appropriations.
1421
The following sums of money are appropriated for the fiscal year beginning July 1,
- 42 - 03-07 14:43 7th Sub. (Lime) H.B. 542
1422
2025, and ending June 30, 2026. These are additions to amounts previously appropriated for
1423
fiscal year 2026.
1424
Subsection 34(a). Operating and Capital Budgets
1425
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
1426
Legislature appropriates the following sums of money from the funds or accounts indicated for
1427
the use and support of the government of the state of Utah.
1428
ITEM 1 To Governor's Office of Economic Opportunity - Economic Prosperity
1429
From General Fund (553,600)
1430
From Federal Funds (200,000)
1431
From Dedicated Credits Revenue (93,700)
1432
Schedule of Programs:
1433
Business Services (847,300)
1434
ITEM 2 To Department of Workforce Services - Office of Homeless Services
1435
From General Fund 1,900,000
1436
Schedule of Programs:
1437
Homeless Services 1,900,000
1438
Under the provisions of Utah Code Annotated
1439
Title 63G, Chapter 6b, the Legislature intends that the
1440
Department of Workforce Services provide a direct
1441
award grant of $1,900,000 ongoing to Family Interim
1442
Non-congregate Children Housing (FINCH) facility
1443
located in a county of the first class under the consulta
1444
tion of the Homeless Coordinator of the Office of
1445
Homelessness.
1446
ITEM 3 To Utah Board of Higher Education - Administration
1447
From General Fund 553,600
1448
From Federal Funds 200,000
1449
From Dedicated Credits Revenue 93,700
1450
Schedule of Programs:
1451
Administration 847,300
1452
The Legislature intends, that if H.B. 542,
1453
Economic Development Amendments, and H.B. 530,
1454
Utah Innovation Lab Modifications, both pass and
1455
become law, on July 1, 2025, the funding appropriated in
- 43 - 7th Sub. (Lime) H.B. 542 03-07 14:43
1456
H.B. 542 be transferred to the Utah Board of Higher
1457
Education for the Nucleus Institute. The Legislature
1458
further intends that the Office of Legislative Fiscal
1459
Analyst, when preparing the base budget for the 2026
1460
General Session, create a new line item titled within the
1461
Utah Board of Higher Education "Nucleus Institute" and
1462
transfer the funding for the Utah Board of Education -
1463
Administration line item to the newly created item.
1464
Section 35. Effective Date.
1465
(1) Except as provided in Subsection (2), this bill takes effect July 1, 2025.
1466
(2) The actions affecting Section 63N-22-101 (Effective 05/07/25) take effect on May 7,
1467
2025.
- 44 -