DAR File No. 43152

Governor, Economic Development

Rule R357-22

Rural Employment Expansion Program Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 43152
Filed: 08/15/2018 02:21:39 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B 390, passed by the Legislature during the 2018 General Session, created the Rural Employment Expansion Program (Program). The new statutory language permits the Office of Economic Development (Office) to promulgate rules to administer the Program. The purpose of this rule filing is to clarify the standards for participation in the Program.

Summary of the rule or change:

Section R357-22-102 creates definitions that will be used to administer the Program. Section R357-22-103 references the authority granted in the statutory language that grants rulewriting authority. Section R357-22-104 outlines the form and content of the application for participation in the Program. Section R357-22-105 establishes the minimum documentation required to demonstrate the creation of new full-time positions. Section R357-22-106 establishes the appeal process for contesting the Office's analysis of the creation of new full-time positions. Section R357-22-107 codifies various requirements for the administration of the Program.

Statutory or constitutional authorization for this rule:

• Subsection 63N-4-403(2)(c)

Anticipated cost or savings to:

the state budget:

The purpose of this proposed rule is to implement H.B. 390 (2018), and costs or savings were included in the Legislature's consideration of the bill. A copy of this fiscal analysis is available from the Utah State Legislature website at: https://le.utah.gov/~2018/bills/static/HB0390.html.

local governments:

There are no anticipated costs or savings created by this proposed rule related to local governments. The purpose of this proposed rule is to implement H.B. 390 (2018), and costs or savings were included in the Legislature's consideration of the bill. A copy of this fiscal analysis is available from the Utah State Legislature website at: https://le.utah.gov/~2018/bills/static/HB0390.html.

small businesses:

There are no anticipated costs or savings created by this proposed rule related to small businesses. The purpose of this proposed rule is to implement H.B. 390 (2018), and costs or savings were included in the Legislature's consideration of the bill. A copy of this fiscal analysis is available from the Utah State Legislature website at: https://le.utah.gov/~2018/bills/static/HB0390.html.

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

There are no anticipated costs or savings created by this proposed rule related to other persons. The purpose of this proposed rule is to implement H.B. 390 (2018), and costs or savings were included in the Legislature's consideration of the bill. A copy of this fiscal analysis is available from the Utah State Legislature website at: https://le.utah.gov/~2018/bills/static/HB0390.html.

Compliance costs for affected persons:

There are no anticipated costs or savings created by this proposed rule related to affected persons. The purpose of this proposed rule is to implement H.B. 390 (2018), and costs or savings were included in the Legislature's consideration of the bill. A copy of this fiscal analysis is available from the Utah State Legislature website at: https://le.utah.gov/~2018/bills/static/HB0390.html.

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

This new rule implements H.B. 390 (2018) which created the Rural Employment Expansion Program. The purpose of this rule is to clarify the standards for participation in the Program. This rule will have no impact on businesses.

Val Hale, 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:

• Dane Ishihara at the above address, by phone at 801-538-8895, by FAX at , or by Internet E-mail at dishihara@utah.gov

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:

10/01/2018

This rule may become effective on:

10/08/2018

Authorized by:

Val Hale, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2019	FY 2020	FY 2021
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

 

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described in the narrative. Inestimable impacts for Non-Small Businesses are described in Appendix 2.

 

Appendix 2: Regulatory Impact to Non-Small Businesses

There is no regulatory impact creating financial cost to small businesses, non-small businesses, or other persons. The proposed rule is to clarify the standards for participation in the program. There are no general regulations being promulgated by this rule because the Program is voluntary and does not require non-participants to do anything. There is no impact to businesses or persons general because this rule only applies to those who chose to participate in this Program in order to receive a grant.

 

 

R357. Governor, Economic Development.

R357-22. Rural Employment Expansion Program.

R357-22-101. Title.

This rule is known as the "Rural Employment Expansion Program Rule."

 

R357-22-102. Definitions.

In addition to the terms defined in 63N-4-402, the following terms are defined as follows:

(1) "At least 12 consecutive months", as used in Subsection 63N-4-402(3)(b), includes a new full-time employee position that is vacated within the eligible employment period and is filled within 15 business days of the position being vacated.

(2) "Eligible employment period" means an employee filling a new full-time employee position has worked for at least 12 consecutive months.

(3) "REDI", Rural Economic Development Incentives, means the same as the Rural Employment Expansion Program.

(4) "Taxable year", as used in Subsection 63N-4-402(3), means the previous calendar year unless the business entity demonstrates extenuating circumstances that justifies adopting a different timeframe.

 

R357-22-103. Authority.

This rule is adopted by the office under the authority of Subsection 63N-4-403(2)(c).

 

R357-22-104. Form and Content of Application for Rural Employment Expansion Program Participation.

(1) The content of the application for a rural employment expansion grant shall, at minimum, include the business entity's:

(a) name;

(b) physical address;

(c) telephone number;

(d) email address;

(e) Federal EIN number;

(f) primary NAICS code;

(g) vendor number, if the applicant is a registered vendor with the State of Utah;

(h) requested rural employment expansion grant amount; and

(i) forecasted:

(i) number of new full-time positions;

(ii) wage of new full-time employee positions;

(iii) hire date of new full-time employee positions.

(2) The following documents shall, at minimum, be included in each application for participation in the program:

(a) copy of current W-9 form; and

(b) two most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports

 

R357-22-105. Documentation Required to Demonstrate the Creation of New Full-Time Positions.

(1) The following documents shall, at minimum, be included when a business entity demonstrates the creation of new full-time positions:

(a) employee pay stubs including pay stubs at 6-month, calendar year-end, and last pay period following completion of the eligible employment period showing the:

(i) name of new employee;

(ii) year-to-date salary of new employee;

(iii) date;

(iv) address;

(v) benefits (if any);

(b) address of work location if different from address of pay stub;

(c) one or more reports that show each employee on at least one Form 33H - Utah Employer Quarterly Wage List and Contribution Report. unemployment insurance quarterly report;

(d) Form 33H - Utah Employer Quarterly Wage List and Contribution Report for the last quarter of the eligible employment period.

 

R357-22-106. Documentation Required to Demonstrate the Creation of New Full-Time Positions -- Appeal Process.

(1) If, after a review of the documentation required to demonstrate the creation of a new full-time positions is inadequate the office shall:

(a) deny the request for a rural employment expansion grant; or

(b) inform the business entity that the documentation is inadequate and ask the business entity to submit additional documentation.

(2) If the office denies the request for a rural employment expansion grant the business entity may appeal the denial to the office, in writing, within 20 business days of the denial notice date.

(3) The office shall review any appeal within 20 business days and make a final determination of the business entity's request for a rural employment expansion grant.

 

R357-22-107. Administration of the Rural Employment Expansion Grant.

(1) From the date of entering a written agreement, as described in Subsection 63N-4-404 (3), the business entity shall have six months to hire an employee to fill any new full-time employee positions.

(2) The business entity shall provide the documentation required to demonstrate the creation of new full-time positions within 90-days of the completion of all eligible employment periods for the new full-time positions.

(3) New full-time employee positions that qualify for the Rural Employment Expansion Grant are not eligible to be counted as eligible positions for the Rural Fast Track and/or the Enterprise Zone programs.

(4) The business entity shall verify that newly hired employees are legal U.S. Citizens or meet eligible non-citizen requirements (employer must use the E-Verify and keep a record of citizen documentation on hand).

 

KEY: rural employment expansion, economic development

Date of Enactment or Last Substantive Amendment: 2018

Authorizing, and Implemented or Interpreted Law: 63N-4-403(2)(c)