DAR File No. 42332

Governor, Economic Development

Rule R357-16

Utah Outdoor Recreation Infrastructure Grant

Notice of Proposed Rule

(Amendment)

DAR File No.: 42332
Filed: 11/15/2017 07:48:50 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule change makes updates to the rule to bring it into compliance with S.B. 264 passed during the 2017 General Session.

Summary of the rule or change:

These changes delete provisions related to the youth program grant because that portion of the grant program was repealed by S.B. 264 (2017), and make corresponding technical changes.

Statutory or constitutional authorization for this rule:

• Section 63N-9-203

Anticipated cost or savings to:

the state budget:

There is no cost or savings to the state budget because this rule only makes changes in response to the updates made to the program by S.B. 264 (2017).

local governments:

There is no cost or savings to local governments because this rule change does not impose any new requirements or regulations on local governments. This rule change does update the rule to delete the criteria for the youth grant program to bring it in accordance with the changes created in S.B. 264 (2017). There will be an impact to any local government that was planning to apply for the youth program grant. However, only 16 grants were awarded under this program and none were awarded to a local government entity.

small businesses:

There is no fiscal impact to small businesses because this rule change does not impose any new requirements or regulations on small businesses. This rule change does update the rule to delete the criteria for the youth grant program to bring it in accordance with the changes created in S.B. 264 (2017). There will be an impact to any small business that was planning to apply for the youth program grant. However, only 16 grants were awarded under this program to small businesses including non-profits with less than 25 total applicants for the youth grant. This is less than 1% of total small businesses including non-profits that could apply for eligible youth programs under the program. Therefore, the fiscal impact to small businesses is deemed to be negligible or non-existent.

persons other than small businesses, businesses, or local governmental entities:

There is no cost or savings to other persons because this rule change does not impose any new requirements or regulations on any other group or persons. This rule change does update the rule to delete the criteria for the youth grant program to bring it in accordance with the changes created in S.B. 264 (2017). There will be an impact to any other group or person that was planning to apply for the youth program grant. However, only 16 grants were awarded under this program and none were awarded to any other group or persons outside of small businesses including non-profits.

Compliance costs for affected persons:

There are no compliance cost for any affected persons because this rule simply repeals any criteria related to the youth program which was repealed by S.B. 264 (2017).

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no compliance costs for small businesses because this rule simply repeals any criteria related to the youth program which was repealed by S.B. 264 (2017).

Val Hale, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Governor
Economic Development
60 E SOUTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Jeffrey Van Hulten at the above address, by phone at 801-538-8694, by FAX at 801-538-8888, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/02/2018

This rule may become effective on:

01/09/2018

Authorized by:

Val Hale, Executive Director

R357. Governor, Economic Development.

R357-16. Utah Outdoor Recreation Infrastructure Grant.

R357-16-1. Authority.

(1) Subsection 63N-9-203 requires the office to make rules establishing the eligibility and reporting criteria for an entity to receive an infrastructure grant.

 

R357-16-2. Definitions.

(1) Terms in these rules are defined in Utah Code Section 63N-9-102.

 

R357-16-3. Application Form and Submission Procedure.

(1) The application will be provided by the Office and contain the following content:

(a) General submission instructions;

(b) Grants available to be claimed[including tiered amounts];

(c) Criteria for qualification of a grant;

(d) Instructions regarding a project description including timeline;

(e) Instructions for providing an outlined budget for total project cost, highlight of funds already procured for the project; and an itemized budget showing planned use of the grant funds being requested;

(f) Instructions for reporting project impacts including community and economic impacts;

(g) The application scoring system[and grant tiers];

(h) Any required deadlines, reports, and relevant timelines; and

(i) All required documents and information necessary for verification and approval of the application.

(2) The application shall be created in an electronic form available to the public at business.utah.gov

(3) The application shall also be available in paper form for any person or entity that requests it.

(4) Applications must be submitted to Office of Outdoor Recreation staff on or before the specified deadline in the application.

(5) Staff will review final applications for completeness and the [director]program manager of the Office of Outdoor Recreation will verify that the documentation is complete and that it meets the program criteria as outlined in statute and this rule.

(6) All completed documentations will be reviewed and awardees selected via the criteria and method as outlined in [R357-16-5 and R357-16-6]in this rule.

 

R357-16-4. Eligible Entities.

(1) Grants may be awarded to the following entities within the state of Utah:

(a) Non-profit corporations physically located within the State with a 501(c)(3) status;

(b) Municipalities;

(c) Counties; and

(d) Tribal governments.

(2) The following entities may not receive an infrastructure grant:

(a) a federal government entity;

(b) a state agency; and

(c) a for-profit entity.

 

R357-16-5. Infrastructure Project Eligibility Criteria.

(1) Budget/Costs/Matching Requirements: The Office will not fund more than 50% of the proposed project's eligible costs. [A minimum of 25% of the total project costs must be a cash match from the applicant and/or partners.]The grant recipient shall provide matching funds having a value equal to or greater than the amount of the infrastructure grant.

(a) The maximum grant request is dependent on available funds and will be outlined in the grant application.

(b) Up to 50% of the grant recipient match may be provided through an in-kind contribution by the grant recipient, if:

(i) approved by the executive director after consultation with the director and the board; and

(ii) the in-kind donation does not include real property.

(c) Matching requirements, eligible and ineligible matching costs, and other matching funding requirements will be provided in the grant application.

([c]d) At least 75% of the matching funds for the project must be secured in order to apply.

(2) Economic Development or Tourism Endorsement: The infrastructure project shall have an endorsement from the local economic development office and/or local tourism director stating that the project will have the ability to attract growth and retention in the community/area and/or have the potential for increased visitation to the area.[County] Endorsement: The infrastructure project [must have county approval and ]endorsement should be provided in writing at the time of application.

(a) Statement of Responsibility: [An agreement signed with the county appointing a party]The applicant must include a Statement of Responsibility from the entity who will maintain the recreational infrastructure in the future. This will [may ]be required by the Office as a condition to receiving a grant.

(3) Public Lands: If the project is located on public lands, it must have approval from the appropriate public entity.

(a) The applicant may be required to show approval from the agency that follows the National Environmental Policy Act (NEPA) process as a condition to receiving the grant.

(4) Property Ownership: All projects must be located on land that is owned by or under the control of the applicant or a partner (e.g. local government or conservancy.)

(a) If the project crosses private property, as in the case of a trail, a[n] binding agreement must be reached with the property owners for a minimum of 10 years.

[(5) Economic Development Endorsement: The infrastructure project must have an endorsement from the local economic development office stating that the project will have the ability to attract growth and retention in the community/area and/or have the potential for increased visitation to the area.

]([6]5) Sensitive Wildlife Areas: Applicant must coordinate with the Utah Division of Wildlife Resources (DWR) to determine if the project is located in a special management area for sensitive species such as the greater sage grouse.

(a) If the project is in or near a Sage Grouse Management Area (SGMA), the project proponent shall coordinate with DWR to make reasonable accommodations to avoid, minimize or mitigate the impacts to greater sage-grouse and their habitats.

([7] 6) [Eligible ]infrastructure projects may include but are not limited to:

(a) [New]The establishment, construction, or renovation of trails, trail facilities, and trail infrastructure (e.g. trail kiosk, trail wayfinding signage, trailhead parking, restroom facilities, bridge or tunnel);

(b) The construction of a project for water-related outdoor recreational activities[Restroom facilities near popular recreation areas];

(c) The development of a project for wildlife watching opportunities, including bird watching[Trail facilities (e.g. trail or way finding signage, trailhead parking, kiosks, etc.)];

(d) The development of a project that provides winter recreation amenities[Ramp/launch site to improve water access areas along rivers for non-motorized boats (e.g. a proposed National Water trail system.];

(e) the construction or improvement of a community park that has amenities for outdoor recreation[Infrastructure for wildlife viewing areas];

(f) The construction or improvement of a naturalistic and accessible playground[Whitewater parks];

(g) the construction of a community owned or sponsored campground[Outdoor amphitheaters]; or

(h) The establishment or construction of a community owned outdoor shooting or archery range[Yurts].

(8) Ineligible Infrastructure projects may include but are not limited to:

(a) A private business such as outdoor service concession, amusement park, [ice-skating rink, ]tubing park, etc.;

(b) Outdoor education programming;

(c) Outdoor swimming pools;

(d) Golf Courses;[or]

(e) Athletic fields or courts[.];

(f) Outdoor amphitheaters;

(g) General community wayfinding signage; or

(h) Harbor dredging projects.

 

[R357-16-6. Outdoor Recreation Youth Program Grants Eligibility Criteria.

(1) The Office may award grants for outdoor recreation youth programs.

(2) The program must provide outdoor recreation activities for youth 18 years old or younger and include physical activities that have an element of fitness.

(3) Budget/Costs/Matching Requirements: The Office will not fund more than 50% of the proposed program's eligible costs. A minimum of 25% of the total project costs must be a cash match from the applicant and/or partners.

(a) The maximum grant request is dependent on available funds and will be outlined in the grant application.

(b) Matching requirements, eligible and ineligible matching costs, and other matching funding requirements will be provided in the grant application.

(c) At least 75% of the matching funds for the program must be secured in order to apply.

(d) Staff salaries may only allowed as matching costs as outlined in the application.

(4) Applicant must demonstrate that the program increases participation in outdoor recreation among young people.

(5) The program must have clear and measurable outcomes including an action plan with clear measures to evaluate success.

(6) Applicant must outline in the application a budget of how the grant would be utilized for the program.

(7) All other found in Utah Code 63N-9, R357-16-3, and R357-16-5(3)-(8) apply to the outdoor recreation youth program grants.]

 

R357-16-7. Method and Formula for Determining Grant Recipients[Amounts].

(1) The Office shall use a weighted scoring system to enable the Utah Outdoor Recreation Grant Advisory Committee (pursuant to 63N-9-204) to analyze and [award]advise on the awarding of grant and grant amounts.

(a) The scoring system shall be made available in the application;

(b) The scoring system will assess and value general categories including:

i. Community need;

ii. Economic impact including the potential to increase area tourism;

iii. Recreation access and value;

iv. Project readiness; and

v. [Improved physical and recreational access; and]

vi. Location within an underserved population or area.

(2) The Office shall distribute the grant applications among the committee members and ensure that each application will be reviewed and scored by members of the advisory committee.

(3) The Office will use the average of the scores to create a prioritization matrix ranking the applications in ascending order.

[The Office will give grant awards in a tiered manner with a certain number of grants available at each tier level utilizing the prioritization matrix.

(a) The Office will provide the tiered amounts and the available number of grants in each tier level in the application.

(b) The Office may collapse tier levels if there are no applicants that score within that tier level and there is an oversubscription in other tier levels.](4) Committee Review Procedure

(a) The Office shall convene the advisory committee for a meeting for the purpose of selecting the projects which will be recommended for the review

i. Method and formula for determining grant awards in committee meeting:

A. A prioritization matrix will be utilized to rank the projects

B. All but the lowest ranked projects will receive a review during the meeting of the committee

1. Subject to procedural rules, a member and a second may request a vote to bring a low scored project that was not scheduled for review to receive consideration by the committee

2. Subject to procedural rules, a member and a second may request a full committee vote for recommendation of an award

ii. Prioritization may be given to projects that:

A. Conform to the criteria and eligibility as set forth in the program guide; and

B. can increase visitation; or

C. will serve an underprivileged or underserved community; or

D. will provide geographic parity; or

E. are trails that are "family friendly"or

F. are trail segments that complete trail gap; or

G. will add to connect trails for a larger trail network; or

H. enhance an outdoor recreation amenity that draws tourists; and

I. have coordinated with the local tourism office to market the project as a tourism attraction.

(b) Rules for scoring during Grant scoring meeting

i. No committee member shall vote on a project in which he/she has substantial interest and shall leave the room while the project is being reviewed and voted on.

ii. To aid in the meeting evaluation, a synopsis of each of the projects will be provided and each reviewer will have access to all scored evaluations

(c) In accordance with available funds, the committee will give proposals for funding

(d) The recommendations for grant awards will be forwarded to the executive director who will consult with the director and the Governor's Office of Economic Development board and give final approval.

(e) In the event an awardee's project no long qualifies for the grant, the grant award may be awarded to the highest scored project of the denied applicants.

(f) The office will notify applicants of the funding decision within two weeks of the final decision

i. Winning applicants will be notified of expected contractual requirements

ii. The grant applicants who were unsuccessful in winning a grant award will be notified of the rejection.

A. A copy of the reviewers written comments with redacted names shall be provided to rejected applicants upon request.

 

R357-16-8. Reporting and Cooperation Requirements.

(1) Grant recipient will cooperate with reasonable requests for site visits during and after completion of the Project.

(2) Grant recipient will provide any additional financial records related to the grant project upon the Office's request. Grant recipient will give a progress report twice yearly until project is completed.

(3) Grant recipient will provide economic development information and supporting documentation of economic development goals achieved at minimum on an annual basis or upon the Office's request.

(a) Such information shall be provided for up to [five]10 years following completion of the Project.

(4) Grant recipient shall provide a description and an itemized report detailing the expenditure of the grant or the intended expenditure of any grant funds that has not been spent.

(5) Grant recipient shall provide the Office with a final written itemized report when the entire grant is spent.

(6) The reports referenced in (4) and (5) shall be provided at least annually, and no later than 60 days after the grant agreement has expired.

(a) Each report shall include:

i. an accounting of project expenditures; and

ii. assurances that all monies paid to the grant recipient were used for planning, construction, or improvements as describe in the recipient's grant application and grant agreement.

 

R357-16-9. Appeal of Application Denial.

(1) A denial of an applicant's request for a grant may be appealed by written request pursuant to Utah Code Section 63G-4-201, and in accordance with this rule.

(2) Hearings must be requested within 30 calendar days from the date that the Office sends written notice of its denial of grant.

(3) Failure to submit a timely request for a hearing constitutes a waiver of due process rights. The request must explain why the party is seeking agency relief, and the party must submit the request on the "Request for Hearing/Agency Action" form. The party must mail or email a scanned copy of the form to the address or email address contained on the denial.

(4) The Office considers a hearing request that a recipient sends via mail to be filed on the date of the postmark. If the postmark date is illegible, erroneous, or omitted, the Office considers the request to be filed on the date that the Office receives it, unless the sender can demonstrate through convincing evidence that it was mailed before the date of receipt.

(5) The Office shall hold informal adjudicative proceedings in accordance with Utah Code Sections 63G-4-202 and 203. The Office shall notify the petitioner and Office representative of the date, time and place of the hearing at least ten days in advance of the hearing. Continuances of scheduled hearings are not favored, but may be for good cause shown. Failure by any party to appear at the hearing after notice has been given shall be grounds for default and shall waive both the right to contest the allegations and the right to the hearing.

(6) The Petitioner named in the notice of agency action and the Office shall be permitted to testify, present evidence, and comment on the issues. Formal rules of evidence shall not apply; however,

(a) Testimony may be taken under oath.

(b) All hearings are open to all parties.

(c) Discovery is prohibited; informal disclosures will be ruled on at the pre-hearing conference.

(d) A respondent shall have access to relevant information contained in the Office's files and to material gathered in the investigation of respondent to the extent permitted by law.

(e) The Office may cause an official record of the hearing to be made, at the Office's expense.

(7) Within a reasonable time, not to exceed 60 days after the close of the informal proceeding, the Office shall issue a signed decision in writing that includes a findings of fact and conclusions of law, and time limits for appeals rights, and administrative or judicial review in accordance with Utah Code Subsection 63G-4-203(i).

 

KEY: Outdoor Recreation Infrastructure Grant, outdoor recreation, grants

Date of Enactment or Last Substantive Amendment: [July 15, 2016]2018

Authorizing, and Implemented or Interpreted Law: 63N-9-203