Utah 2025 Regular Session

Utah Senate Bill SB0187 Compare Versions

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1-Enrolled Copy S.B. 187
1+03-07 10:10 4th Sub. (Pumpkin) S.B. 187
2+Casey Snider proposes the following substitute bill:
23 1
34 Throughput Infrastructure Funding Amendments
45 2025 GENERAL SESSION
56 STATE OF UTAH
67 Chief Sponsor: Jerry W. Stevenson
78 House Sponsor: Casey Snider
89 2
910
1011 3
1112 LONG TITLE
1213 4
1314 General Description:
1415 5
1516 This bill addresses financial assistance that is funded through the Throughput Infrastructure
1617 6
1718 Fund.
1819 7
1920 Highlighted Provisions:
2021 8
2122 This bill:
2223 9
2324 ▸ modifies the definition of a throughput infrastructure project;
2425 10
25-modifies the Permanent Community Impact Fund Board's authority related to the
26+provides for an award of a loan or grant from the Throughput Infrastructure Fund for
2627 11
27-Throughput Infrastructure Fund;
28+certain mining activity; and
2829 12
29-provides for an award of a loan or grant from the Throughput Infrastructure Fund for
30+makes technical and conforming amendments.
3031 13
31-certain mining activity; and
32+Money Appropriated in this Bill:
3233 14
33-▸ makes technical and conforming amendments.
34+None
3435 15
35-Money Appropriated in this Bill:
36+Other Special Clauses:
3637 16
37-None
38+This bill provides a special effective date.
3839 17
39-Other Special Clauses:
40+Utah Code Sections Affected:
4041 18
41-This bill provides a special effective date.
42+AMENDS:
4243 19
43-Utah Code Sections Affected:
44+35A-8-302, as last amended by Laws of Utah 2021, Chapter 339
4445 20
45-AMENDS:
46+35A-8-308, as last amended by Laws of Utah 2021, Chapter 367
4647 21
47-35A-8-302, as last amended by Laws of Utah 2021, Chapter 339
48+35A-8-309, as last amended by Laws of Utah 2021, Chapter 367
4849 22
49-35A-8-308, as last amended by Laws of Utah 2021, Chapter 367
50+
5051 23
51-35A-8-309, as last amended by Laws of Utah 2021, Chapter 367
52+Be it enacted by the Legislature of the state of Utah:
5253 24
53-
54+Section 1. Section 35A-8-302 is amended to read:
5455 25
55-Be it enacted by the Legislature of the state of Utah:
56+35A-8-302 . Definitions.
5657 26
57-Section 1. Section 35A-8-302 is amended to read:
58+ As used in this part:
5859 27
59-35A-8-302 . Definitions. S.B. 187 Enrolled Copy
60+(1) "Bonus payments" means that portion of the bonus payments received by the United
6061 28
61- As used in this part:
62+States government under the Leasing Act paid to the state under Section 35 of the
6263 29
63-(1) "Bonus payments" means that portion of the bonus payments received by the United
64+Leasing Act, 30 U.S.C. Sec. 191, together with any interest that had accrued on those
65+4th Sub. S.B. 187 4th Sub. (Pumpkin) S.B. 187 03-07 10:10
6466 30
65-States government under the Leasing Act paid to the state under Section 35 of the
67+payments.
6668 31
67-Leasing Act, 30 U.S.C. Sec. 191, together with any interest that had accrued on those
69+(2) "Impact board" means the Permanent Community Impact Fund Board created under
6870 32
69-payments.
71+Section 35A-8-304.
7072 33
71-(2) "Impact board" means the Permanent Community Impact Fund Board created under
73+(3) "Impact fund" means the Permanent Community Impact Fund established by this
7274 34
73-Section 35A-8-304.
75+chapter.
7476 35
75-(3) "Impact fund" means the Permanent Community Impact Fund established by this
77+(4) "Interlocal agency" means a legal or administrative entity created by a subdivision or
7678 36
77-chapter.
79+combination of subdivisions under the authority of Title 11, Chapter 13, Interlocal
7880 37
79-(4) "Interlocal agency" means a legal or administrative entity created by a subdivision or
81+Cooperation Act.
8082 38
81-combination of subdivisions under the authority of Title 11, Chapter 13, Interlocal
83+(5) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 181 et seq.
8284 39
83-Cooperation Act.
85+(6) "Qualifying sales and use tax distribution reduction" means that, for the calendar year
8486 40
85-(5) "Leasing Act" means the Mineral Lands Leasing Act of 1920, 30 U.S.C. Sec. 181 et seq.
87+beginning on January 1, 2008, the total sales and use tax distributions a city received
8688 41
87-(6) "Qualifying sales and use tax distribution reduction" means that, for the calendar year
89+under Section 59-12-205 were reduced by at least 15% from the total sales and use tax
8890 42
89-beginning on January 1, 2008, the total sales and use tax distributions a city received
91+distributions the city received under Section 59-12-205 for the calendar year beginning
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91-under Section 59-12-205 were reduced by at least 15% from the total sales and use tax
93+on January 1, 2007.
9294 44
93-distributions the city received under Section 59-12-205 for the calendar year beginning
95+(7)(a) "Planning" means any of the following performed by or on behalf of the state, a
9496 45
95-on January 1, 2007.
97+subdivision, or an interlocal entity:
9698 46
97-(7)(a) "Planning" means any of the following performed by or on behalf of the state, a
99+(i) a study, analysis, plan, or survey; or
98100 47
99-subdivision, or an interlocal entity:
101+(ii) activities necessary to obtain a permit or land use approval, including review to
100102 48
101-(i) a study, analysis, plan, or survey; or
103+determine the need, cost, or feasibility of obtaining a permit or land use approval.
102104 49
103-(ii) activities necessary to obtain a permit or land use approval, including review to
105+(b) "Planning" includes:
104106 50
105-determine the need, cost, or feasibility of obtaining a permit or land use approval.
107+(i) the preparation of maps and guidelines;
106108 51
107-(b) "Planning" includes:
109+(ii) land use planning;
108110 52
109-(i) the preparation of maps and guidelines;
111+(iii) a study or analysis of:
110112 53
111-(ii) land use planning;
113+(A) the social or economic impacts associated with natural resource development;
112114 54
113-(iii) a study or analysis of:
115+(B) the demand for the transportation of individuals or goods;
114116 55
115-(A) the social or economic impacts associated with natural resource development;
117+(C) state, regional, and local development and growth;
116118 56
117-(B) the demand for the transportation of individuals or goods;
119+(D) population and employment;
118120 57
119-(C) state, regional, and local development and growth;
121+(E) development related to natural resources; and
120122 58
121-(D) population and employment;
123+(F) as related to any other activity described in this Subsection (7), engineering,
122124 59
123-(E) development related to natural resources; and
125+financial analysis, legal analysis, or any other analysis helpful to the state,
124126 60
125-(F) as related to any other activity described in this Subsection (7), engineering,
127+subdivision, or interlocal agency; and
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127-financial analysis, legal analysis, or any other analysis helpful to the state,
128-- 2 - Enrolled Copy S.B. 187
129+(iv) any activity described in this Subsection (7) regardless of whether the activity is
129130 62
130-subdivision, or interlocal agency; and
131+for a public facility or a public service.
131132 63
132-(iv) any activity described in this Subsection (7) regardless of whether the activity is
133+(8) "Public facility" means a facility:
134+- 2 - 03-07 10:10 4th Sub. (Pumpkin) S.B. 187
133135 64
134-for a public facility or a public service.
136+(a) in whole or in part, owned, controlled, or operated by the state, a subdivision, or an
135137 65
136-(8) "Public facility" means a facility:
138+interlocal agency; and
137139 66
138-(a) in whole or in part, owned, controlled, or operated by the state, a subdivision, or an
140+(b) that serves a public purpose.
139141 67
142+(9)(a) "Public service" means a service that:
143+68
144+(i) is provided, in whole or in part, by or on behalf of the state, a subdivision, or an
145+69
140146 interlocal agency; and
141-68
142-(b) that serves a public purpose.
143-69
144-(9)(a) "Public service" means a service that:
145147 70
146-(i) is provided, in whole or in part, by or on behalf of the state, a subdivision, or an
148+(ii) serves a public purpose.
147149 71
148-interlocal agency; and
150+(b) "Public service" includes:
149151 72
150-(ii) serves a public purpose.
152+(i) a service described in Subsection (9)(a) regardless of whether the service is
151153 73
152-(b) "Public service" includes:
154+provided in connection with a public facility;
153155 74
154-(i) a service described in Subsection (9)(a) regardless of whether the service is
156+(ii) the cost of providing a service described in Subsection (9)(a), including
155157 75
156-provided in connection with a public facility;
158+administrative costs, wages, and legal fees; and
157159 76
158-(ii) the cost of providing a service described in Subsection (9)(a), including
160+(iii) a contract with a public postsecondary institution to fund research, education, or
159161 77
160-administrative costs, wages, and legal fees; and
162+a public service program.
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162-(iii) a contract with a public postsecondary institution to fund research, education, or
164+(10) "Subdivision" means a county, city, town, county service area, special service district,
163165 79
164-a public service program.
166+special improvement district, water conservancy district, water improvement district,
165167 80
166-(10) "Subdivision" means a county, city, town, county service area, special service district,
168+sewer improvement district, housing authority, building authority, school district, or
167169 81
168-special improvement district, water conservancy district, water improvement district,
170+public postsecondary institution organized under the laws of this state.
169171 82
170-sewer improvement district, housing authority, building authority, school district, or
172+(11)(a) "Throughput infrastructure project" means the following facilities, whether
171173 83
172-public postsecondary institution organized under the laws of this state.
174+located within, partially within, or outside of the state:
173175 84
174-(11)(a) "Throughput infrastructure project" means the following facilities, whether
176+(i) a bulk commodities ocean terminal;
175177 85
176-located within, partially within, or outside of the state:
178+(ii) a pipeline for the transportation of liquid or gaseous hydrocarbons;
177179 86
178-(i) a bulk commodities ocean terminal;
180+(iii) electric transmission lines and ancillary facilities;
179181 87
180-(ii) a pipeline for the transportation of liquid or gaseous hydrocarbons;
182+(iv) a shortline freight railroad and ancillary facilities;
181183 88
182-(iii) electric transmission lines and ancillary facilities;
184+(v) a plant or facility for storing, distributing, or producing hydrogen, including the
183185 89
184-(iv) a shortline freight railroad and ancillary facilities;
186+liquification of hydrogen, for use as a fuel in zero emission motor vehicles, for
185187 90
186-(v) a plant or facility for storing, distributing, or producing hydrogen, including the
188+electricity generation, or for industrial use;[ or]
187189 91
188-liquification of hydrogen, for use as a fuel in zero emission motor vehicles, for
190+(vi) a plant for the production of zero emission hydrogen fueled trucks[.] ; or
189191 92
190-electricity generation, or for industrial use;[ or]
192+(vii) a mining facility described in Subsection 35A-8-309(9).
191193 93
192-(vi) a plant for the production of zero emission hydrogen fueled trucks[.] ; or
194+(b) "Throughput infrastructure project" includes:
193195 94
194-(vii) a mining facility described in Subsection 35A-8-309(9).
196+(i) an ownership interest or a joint or undivided ownership interest in a facility;
195197 95
196-(b) "Throughput infrastructure project" includes:
197-- 3 - S.B. 187 Enrolled Copy
198+(ii) a membership interest in the owner of a facility; or
198199 96
199-(i) an ownership interest or a joint or undivided ownership interest in a facility;
200+(iii) a contractual right, whether secured or unsecured, to use all or a portion of the
200201 97
201-(ii) a membership interest in the owner of a facility; or
202+throughput, transportation, or transmission capacity of a facility.
203+- 3 - 4th Sub. (Pumpkin) S.B. 187 03-07 10:10
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203-(iii) a contractual right, whether secured or unsecured, to use all or a portion of the
205+Section 2. Section 35A-8-308 is amended to read:
204206 99
205-throughput, transportation, or transmission capacity of a facility.
207+35A-8-308 . Throughput Infrastructure Fund.
206208 100
207-Section 2. Section 35A-8-308 is amended to read:
209+(1) There is created an enterprise fund known as the "Throughput Infrastructure Fund."
208210 101
209-35A-8-308 . Throughput Infrastructure Fund.
211+(2) The fund consists of money generated from the following revenue sources:
210212 102
211-(1) There is created an enterprise fund known as the "Throughput Infrastructure Fund."
213+(a) [all ]amounts transferred to the fund by statute;
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213-(2) The fund consists of money generated from the following revenue sources:
215+(b) any voluntary contributions received;
214216 104
215-(a) [all ]amounts transferred to the fund by statute;
217+(c) appropriations made to the fund by the Legislature;[ and]
216218 105
217-(b) any voluntary contributions received;
219+(d) [all ] the amounts received from the repayment of loans made by the impact board
218220 106
219-(c) appropriations made to the fund by the Legislature;[ and]
221+under Section 35A-8-309[.] ; and
220222 107
221-(d) [all ] the amounts received from the repayment of loans made by the impact board
223+(e) interest or other earnings deposited under Subsection (3).
222224 108
223-under Section 35A-8-309[.] ; and
225+(3) The state treasurer shall:
224226 109
225-(e) interest or other earnings deposited under Subsection (3).
227+(a) invest the money in the fund by following the procedures and requirements of Title
226228 110
227-(3) The state treasurer shall:
229+51, Chapter 7, State Money Management Act; and
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229-(a) invest the money in the fund by following the procedures and requirements of Title
231+(b) deposit [all] the interest or other earnings derived from those investments into the
230232 112
231-51, Chapter 7, State Money Management Act; and
233+fund.
232234 113
233-(b) deposit [all] the interest or other earnings derived from those investments into the
235+Section 3. Section 35A-8-309 is amended to read:
234236 114
235-fund.
237+35A-8-309 . Throughput Infrastructure Fund administered by impact board --
236238 115
237-Section 3. Section 35A-8-309 is amended to read:
239+Uses -- Review by board -- Annual report -- First project.
238240 116
239-35A-8-309 . Throughput Infrastructure Fund administered by impact board --
241+(1) The impact board shall:
240242 117
241-Uses -- Review by board -- Annual report -- First project.
243+(a) make grants and loans from the Throughput Infrastructure Fund created in Section
242244 118
243-(1) The impact board shall:
245+35A-8-308 for a throughput infrastructure project;
244246 119
245-(a) make grants and loans from the Throughput Infrastructure Fund created in Section
247+(b) use money transferred to the Throughput Infrastructure Fund in accordance with
246248 120
247-35A-8-308 for a throughput infrastructure project;
249+statute to provide a loan or grant to finance the cost of acquisition or construction of a
248250 121
249-(b) use money transferred to the Throughput Infrastructure Fund in accordance with
251+throughput infrastructure project to one or more local political subdivisions,
250252 122
251-statute to provide a loan or grant to finance the cost of acquisition or construction of a
253+including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
252254 123
253-throughput infrastructure project to one or more local political subdivisions,
255+Cooperation Act;
254256 124
255-including a Utah interlocal agency created under Title 11, Chapter 13, Interlocal
257+(c) administer the Throughput Infrastructure Fund in a manner that will keep a portion of
256258 125
257-Cooperation Act;
259+the fund revolving;
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259-(c) administer the Throughput Infrastructure Fund in a manner that will keep a portion of
261+(d) determine provisions for repayment of loans;
260262 127
261-the fund revolving;
263+(e) establish criteria for awarding loans and grants; and
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263-(d) determine provisions for repayment of loans;
265+(f) establish criteria for determining eligibility for assistance under this section.
264266 129
265-(e) establish criteria for awarding loans and grants; and
266-- 4 - Enrolled Copy S.B. 187
267+(2) The cost of acquisition or construction of a throughput infrastructure project includes
267268 130
268-(f) establish criteria for determining eligibility for assistance under this section.
269+amounts for working capital, reserves, transaction costs, and other amounts determined
269270 131
270-(2) The cost of acquisition or construction of a throughput infrastructure project includes
271+by the impact board to be allocable to a throughput infrastructure project.
272+- 4 - 03-07 10:10 4th Sub. (Pumpkin) S.B. 187
271273 132
272-amounts for working capital, reserves, transaction costs, and other amounts determined
274+(3) The impact board may restructure or forgive all or part of a local political subdivision's
273275 133
274-by the impact board to be allocable to a throughput infrastructure project.
276+or interlocal agency's obligation to repay loans for extenuating circumstances.
275277 134
276-(3) The impact board may restructure or forgive all or part of a local political subdivision's
278+(4) To receive assistance under this section, a local political subdivision or an interlocal
277279 135
278-or interlocal agency's obligation to repay loans for extenuating circumstances.
280+agency shall submit a formal application containing the information that the impact
279281 136
280-(4) To receive assistance under this section, a local political subdivision or an interlocal
282+board requires.
281283 137
282-agency shall submit a formal application containing the information that the impact
284+(5)(a) The impact board shall:
283285 138
284-board requires.
286+(i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
285287 139
286-(5)(a) The impact board shall:
288+before approving the loan or grant and may condition its approval on whatever
287289 140
288-(i) review the proposed uses of the Throughput Infrastructure Fund for a loan or grant
290+assurances the impact board considers necessary to ensure that proceeds of the
289291 141
290-before approving the loan or grant and may condition its approval on whatever
292+loan or grant will be used in accordance with this section;
291293 142
292-assurances the impact board considers necessary to ensure that proceeds of the
294+(ii) ensure that each loan specifies terms for interest deferments, accruals, and
293295 143
294-loan or grant will be used in accordance with this section;
296+scheduled principal repayment; and
295297 144
296-(ii) ensure that each loan specifies terms for interest deferments, accruals, and
298+(iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations
297299 145
298-scheduled principal repayment; and
300+of the appropriate local political subdivision or interlocal agency issued to the
299301 146
300-(iii) ensure that repayment terms are evidenced by bonds, notes, or other obligations
302+impact board and payable from the net revenues of a throughput infrastructure
301303 147
302-of the appropriate local political subdivision or interlocal agency issued to the
304+project.
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304-impact board and payable from the net revenues of a throughput infrastructure
306+(b) An instrument described in Subsection (5)(a)(iii) may be:
305307 149
306-project.
308+(i) non-recourse to the local political subdivision or interlocal agency; and
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308-(b) An instrument described in Subsection (5)(a)(iii) may be:
310+(ii) limited to a pledge of the net revenues from a throughput infrastructure project.
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310-(i) non-recourse to the local political subdivision or interlocal agency; and
312+(6)(a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate from
311313 152
312-(ii) limited to a pledge of the net revenues from a throughput infrastructure project.
314+the Throughput Infrastructure Fund to the board those amounts that are appropriated
313315 153
314-(6)(a) Subject to the restriction in Subsection (6)(b), the impact board shall allocate from
316+by the Legislature for the administration of the Throughput Infrastructure Fund.
315317 154
316-the Throughput Infrastructure Fund to the board those amounts that are appropriated
318+(b) The amount described in Subsection (6)(a) may not exceed 2% of the annual receipts
317319 155
318-by the Legislature for the administration of the Throughput Infrastructure Fund.
320+to the [fund] Throughput Infrastructure Fund.
319321 156
320-(b) The amount described in Subsection (6)(a) may not exceed 2% of the annual receipts
322+(7) The board shall include in the annual written report described in Section 35A-1-109:
321323 157
322-to the [fund] Throughput Infrastructure Fund.
324+(a) the number and type of loans and grants made under this section; and
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324-(7) The board shall include in the annual written report described in Section 35A-1-109:
326+(b) a list of local political subdivisions or interlocal agencies that received assistance
325327 159
326-(a) the number and type of loans and grants made under this section; and
328+under this section.
327329 160
328-(b) a list of local political subdivisions or interlocal agencies that received assistance
330+(8)(a) The first throughput infrastructure project considered by the impact board shall be
329331 161
330-under this section.
332+a bulk commodities ocean terminal project.
331333 162
332-(8)(a) The first throughput infrastructure project [considered] funded by the impact board
334+(b) Upon receipt of an application from an interlocal agency created for the sole purpose
333335 163
334-shall be a bulk commodities ocean terminal project[.] financed through a mixture of
335-- 5 - S.B. 187 Enrolled Copy
336+of undertaking a throughput infrastructure project that is a bulk commodities ocean
336337 164
337-grant and loans, of which no less than 20% of the project costs funded by the impact
338+terminal project, the impact board shall:
338339 165
339-board is grants.
340+(i) grant up to 2% of the money in the Throughput Infrastructure Fund to the
341+- 5 - 4th Sub. (Pumpkin) S.B. 187 03-07 10:10
340342 166
341-(b) Upon receipt of an application from an interlocal agency [created for the sole
343+interlocal agency to pay or reimburse costs incurred by the interlocal agency
342344 167
343-purpose of undertaking a throughput infrastructure project that is] for a bulk
345+preliminary to its acquisition of the throughput infrastructure project; and
344346 168
345-commodities ocean terminal project, the impact board shall:
347+(ii) fund the interlocal agency's application if the application meets all criteria
346348 169
347-(i) grant up to 2% of the money in the Throughput Infrastructure Fund to the
349+established by the impact board.
348350 170
349-interlocal agency to pay or reimburse costs incurred by the interlocal agency
351+(9) Notwithstanding Subsection (8) and following the procedures of this section, the impact
350352 171
351-preliminary to its acquisition of the throughput infrastructure project; and
353+board may issue a grant or loan for a throughput infrastructure project other than a bulk
352354 172
353-(ii) fund the interlocal agency's application if the application meets all criteria
355+commodities ocean terminal project if the throughput infrastructure project:
354356 173
355-established by the impact board.
357+(a) is funded from the interest or other earnings deposited into the Throughput
356358 174
357-(9) Notwithstanding Subsection (8) and following the procedures of this section, the impact
359+Infrastructure Fund;
358360 175
359-board may issue a grant or loan for a throughput infrastructure project other than a bulk
361+(b) is applied for by a political subdivision or interlocal agency to be distributed to a
360362 176
361-commodities ocean terminal project if the throughput infrastructure project:
363+private entity described in Subsection (9)(c); and
362364 177
363-(a) is funded from the interest or other earnings deposited into the Throughput
365+(c) is engaged in by a private entity if the private entity:
364366 178
365-Infrastructure Fund;
367+(i) has the required permits to engage in mining fluorspar or gallium;
366368 179
367-(b) is applied for by a political subdivision or interlocal agency to be distributed to a
369+(ii) will engage in the mining activity in a community within the state that is
368370 180
369-private entity described in Subsection (9)(c); and
371+economically impacted by the Leasing Act;
370372 181
371-(c) is engaged in by a private entity if the private entity:
373+(iii) will draw money from the loan or grant by no later than two years from the day
372374 182
373-(i) has the required permits to engage in mining fluorspar or gallium;
375+on which the impact board awards the loan or grant; and
374376 183
375-(ii) will engage in the mining activity in a community within the state that is
377+(iv) agrees to reimburse the Throughput Infrastructure Fund in staggered payments
376378 184
377-economically impacted by the Leasing Act;
379+during a period beginning three years from the day on which the impact board
378380 185
379-(iii) will draw money from the loan or grant by no later than two years from the day
381+approves the loan or grant and ending seven years from the day on which the
380382 186
381-on which the impact board awards the loan or grant; and
383+impact board approves the loan or grant.
382384 187
383-(iv) agrees to reimburse the Throughput Infrastructure Fund in staggered payments
385+Section 4. Effective Date.
384386 188
385-during a period beginning three years from the day on which the impact board
387+This bill takes effect:
386388 189
387-approves the loan or grant and ending seven years from the day on which the
389+(1) except as provided in Subsection (2), May 7, 2025; or
388390 190
389-impact board approves the loan or grant.
391+(2) if approved by two-thirds of all members elected to each house:
390392 191
391-Section 4. Effective Date.
393+(a) upon approval by the governor;
392394 192
393-This bill takes effect:
395+(b) without the governor's signature, the day following the constitutional time limit of
394396 193
395-(1) except as provided in Subsection (2), May 7, 2025; or
397+Utah Constitution, Article VII, Section 8; or
396398 194
397-(2) if approved by two-thirds of all members elected to each house:
398-195
399-(a) upon approval by the governor;
400-196
401-(b) without the governor's signature, the day following the constitutional time limit of
402-197
403-Utah Constitution, Article VII, Section 8; or
404-- 6 - Enrolled Copy S.B. 187
405-198
406399 (c) in the case of a veto, the date of veto override.
407-- 7 -
400+- 6 -