DAR File No. 43720

Governor, Economic Development

Rule R357-24

Utah Works Program Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 43720
Filed: 05/15/2019 04:30:36 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

S.B. 172, passed by the Legislature during the 2019 General Session, created the Utah Works Program (Program). The new statutory language permits the Governor's 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 R357-24-102 details the purpose and goals of the Program. Section R357-24-103 creates definitions that will be used to administer the Program. Section R357-24-104 references the authority granted in the statutory language that permits rulewriting. Section R357-24-105 outlines the eligibility criteria for participation in the Program. Section R357-24-106 outlines the proposal and submission process. Section R357-24-107 establishes the method for selecting Program awardees. Section R357-24-108 establishes that an awardee must enter a contract with the Office that outlines the award and grant amount. Section R357-24-109 outlines the guidelines for modification of a contract. Section R357-24-110 establishes the funding distribution standards. Section R357-24-111 establishes the reporting and cooperation requirements for participation in the Program.

Statutory or constitutional authorization for this rule:

• Section 63N-12-505

Anticipated cost or savings to:

the state budget:

There is no aggregate anticipated cost or savings to the state budget. This rule is merely creating the requirements for the Program that was created by the passing of S.B. 172 (2019).

local governments:

There is no aggregate anticipated cost or savings to local governments because local governments are not required to comply with or enforce this rule.

small businesses:

There is no aggregate anticipated cost or savings to small businesses because this proposed rule does not create new obligations for small businesses, nor does it increase the costs associated with any existing obligation. Participation in the Program is optional.

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

There is no aggregate anticipated cost or savings to persons other than small businesses, businesses, or local government entities because this proposed rule does not create new obligations for persons other than small businesses, businesses, or local government entities, nor does it increase the costs associated with any existing obligation.

Compliance costs for affected persons:

There are no compliance costs for affected persons because participation in the Program is optional.

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

This new rule implements S.B. 172 (2019) which created the Program. The purpose of this rule filing is to clarify the standards for participation in the Program. This rule will have no impact on businesses.

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:

• Dane Ishihara at the above address, by phone at 801-538-8865, 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:

07/01/2019

This rule may become effective on:

07/08/2019

Authorized by:

Val Hale, Executive Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2020	FY 2021	FY 2022
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 or non-small businesses or other persons. This proposed rule filing is to clarify the standards for participation in the Utah Works Program (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.

 

The head of the Governor's Office of Economic Development, Val Hale, has reviewed and approved this fiscal analysis.

 

 

R357. Governor, Economic Development.

R357-24. Utah Works Program.

R357-24-101. Title.

This rule is known as the "Utah Works Program Rule."

 

R357-24-102. Purpose and Goals.

(1) The Talent Ready Utah Center's Utah Works Program promotes partnerships between companies and post-secondary institutions to fill high demand positions and/or provide skills training. This program teams industry, post-secondary institutions, and state agencies to address specific workforce gaps identified by companies.

(2) The goal of UWP is to accelerate hiring and skills training that will lead to economic growth.

 

R357-24-103. Definitions.

The following terms are defined as follows:

(1) "Applicant" means a collaboration between one or more companies and one or more post-secondary institutions for a particular hiring program.

(2) "Awardee(s)" means an applicant that has been awarded a UWP grant.

(3) "Collaboration" means the strategic coordination between a company and post-secondary institution to address a skilled labor gap.

(4) "Company" means a corporation, limited liability company, partnership, association, or other business entity and may include a federal military installation when such entity otherwise meets UWP eligibility requirements and does not include an individual, sole proprietorship, or educational institution.

(5) "Company representative" means a representative from a company that is designated to support the efforts of the collaboration.

(6) "High demand position" means a position in which there are hard to fill jobs with a lack of skilled labor employees or a large number of skilled labor positions needed in a short amount of time.

(7) "Pre-hire program" means an applicant's plan to vet potential hires prior to the skills training. The pre-hire program will typically consist of a training lasting from two days to two weeks.

(8) "Post-secondary institution" means an entity under the Utah System of Higher Education or the Utah System of Technical Colleges.

(9) "Skilled labor" means jobs that require skills training and a level of skill.

(10) "Skilled labor gap" means the disparity between a company's existing or future skill need.

(11) "Skills training program" means a training plan developed and agreed upon between the post-secondary institution and a company.

(12) "TRU" means the Talent Ready Utah Center.

(13) "UWP" means the Utah Works Program.

(14) "UWP grant" means the competitive grants awarded and administered under this Rule.

 

R357-24-104. Authority.

This rule is adopted by the office under the authority of subsection 63N-12-505(3).

 

R357-24-105. Eligibility Criteria.

(1) Proposal must be jointly developed by a company and a post-secondary institution.

(2) Applicants must submit proposals as outlined in section 106 below, and otherwise specified in TRU.

(3) A company representative must certify that:

(a) the company has a skilled labor gap;

(b) the proposed post-secondary institution partnership will meet that gap need;

(c) the company has significant one time or ongoing hiring demands; and

(d) the company commits to provide a cost-share contribution as outlined in subsection (5) below.

(4) The company must have a substantial presence in Utah.

(a) A substantial presence, for purposes of UWP requires the following:

(i) the company must be properly registered with the Utah Division of Corporations as an active, for-profit business entity, in good standing; and

(ii) the company must be properly licensed in the appropriate city or county.

(b) Additionally, TRU shall, according to its judgment and discretion, determine whether a company has a substantial presence for purposes of a UWP grant by weighing the following factors:

(i) total workforce and percentage of company's workforce in Utah;

(ii) amount of business taxes paid to the State of Utah;

(iii) relative size of the company;

(iv) whether the company's principal place of business is Utah;

(v) likelihood that the company will maintain a significant presence in the state of Utah;

(vi) a commitment of capital expenditure and/or new job creation in the state; and

(vii) the degree to which the company's activities and operations positively impact Utah's economy.

(5) The company must fulfill the following cost-sharing requirements:

(a) provide a company representative to support the collaboration;

(b) provide an "in-kind" contribution, approved by TRU, which may include:

(i) company representative's time spent on the collaboration;

(ii) materials and equipment;

(iii) work/research space;

(iv) travel and other company expenses budgeted for the collaboration; or

(v) other contributions approved by TRU.

(c) make available for audit all reported cost-share activities.

(6) The skills training must be met with a minimum of two weeks of training.

(7) Applicants may coordinate with the Department of Workforce Services when building pre-hire program objectives.

 

R357-24-106. Proposal and Submission Process.

(1) TRU will accept proposals for UWP grants on an ongoing basis subject to available funds.

(2) Applicants shall submit proposals in a form and manner specified by TRU.

(3) The proposal must include the following:

(a) a description of the applicant's eligibility as outlined in section 105 above;

(b) a detailed description of pre-hire program, if applicable, and skills training program;

(c) description of skilled labor positions;

(d) projected number of individuals who will start the program, finish the program and be successfully hired;

(e) potential economic impact on the Utah economy;

(f) an executed collaboration agreement between the company and post-secondary institution; and

(g) outlined budget for total program cost, including;

(i) a description of any funds already secured for activities related to the program;

(ii) breakdown of costs to complete the scope of work;

(iii) an itemized budget detailing planned use of grant funds, including how the funding will be allocated, tracked, and reported;

(iv) awardee must use grant funds for expenses specific to the program and may include:

(A) instructors;

(B) marketing;

(C) equipment;

(D) tuition reimbursements;

(E) curriculum and program development;

(F) program management; and

(G) US security clearances as outlined in subsection 108(4)(b).

(4) All completed proposals will be reviewed and awardees selected via the criteria and method outlined in this Rule.

 

R357-24-107. Method for Selecting Awardees.

(1) TRU will evaluate grant proposals and recommend grant amounts.

(2) TRU will, according to its discretion and judgment, review the applicant's proposal by considering the following factors:

(a) statewide or regional importance of the industry to Utah's economy;

(b) relative size of the sector, its stability, and growth potential;

(c) characteristics of the state's workforce including education and training;

(d) the current availability of other sources of funding;

(e) the potential for the industry to develop new jobs and business opportunities in the state;

(f) likelihood that skilled labor in this sector will result in the creation of a company in Utah or growth of existing Utah company;

(g) number of positions to be trained and filled;

(h) impact on the local economy; and

(i) any other factor TRU deems relevant, considering the mission of UWP and the purpose of the UWP grant.

(3) The criteria will be designed to assess each proposal and may include:

(a) completeness of proposal;

(b) thorough pre-hire program and skills training program;

(c) reasonableness of proposal;

(d) reasonableness of the proposed timeline;

(e) reasonableness of the proposed budget (e.g., size and allocation of budget is appropriate for the work proposed and matching funds available);

(f) availability of UWP grant funds;

(g) potential for economic impact, as measured by:

(i) skilled labor gap mitigation;

(ii) meeting target head count;

(iii) potential revenue due to expansion of current business or development of new businesses;

(iv) projected time to fill job needs;

(v) market need or industry impact;

(h) any other factor of the applicant's ability to produce measurable and timely benefits to the state; and

(i) any factor relating to eligibility requirements outlined in section 105.

(4) UWP grants must be used to mitigate gaps and meet company hiring demands. The program proposals referenced in section 106 must identify specific pre-hire program and skills training.

(5) In the event of a favorable recommendation by TRU the proposal will be reviewed by the talent ready Utah board using the same criteria.

(6) An applicant will become an awardee only upon approval by TRU and the talent ready Utah board.

 

R357-24-108. Grant Amount, Award, and Required Contract.

(1) TRU will have the discretion to limit the maximum amount of funding that may be awarded for each UWP grant based on available funds, scope of the collaboration, and quality of proposal.

(2) TRU reserves the right to award funding for any proposal in full or in part, to request additional information, or to reject any or all proposals based on the eligibility and evaluation criteria set forth in these Rules, Utah law, and according to the judgment and discretion of TRU. TRU also reserves the right to certify any agreements between post-secondary institution and company on IP terms and confidentiality.

(3) Upon award of a UWP grant, and prior to disbursement of any funds, awardee must enter into a contract with GOED governing the use of UWP grant funding.

(4) Unless addressed in the terms and conditions of the contract between awardee and GOED the following provisions shall apply:

(a) UWP grant funding may not be used to provide a primary benefit to any state other than Utah;

(b) Subject to TRU approval, TRU may, via supplemental contract, allocate grant funds directly to an awardee company to pay for the cost of US security clearances for UWP grant program hires where a US security clearance is required as a condition of the position; and

(c) for all other eligibility requirements, awardees must maintain eligibility status for UWP program until the collaboration is complete, scope of work requirements have been met, final disbursement of funding has been made, and first year reporting has been completed.

(5) Any misrepresentation to TRU, violations of subsection (4) above, or this Rule may result in forfeiture of UWP grant funding and require repayment of all or a portion of the funding received as part of UWP grant and/or disqualification from continued funding.

(6) TRU reserves the right to audit the use of any UWP grant funding.

 

R357-24-109. Contract Modifications.

(1) Awardee may request a modification to the terms of a UWP contract.

(2) TRU may deny a modification request for any reason.

(3) TRU shall have discretion to agree to reasonable, nonsubstantive changes.

(a) Non-substantive changes may include the following:

(i) changes to timelines within the scope of work;

(ii) corrections to clerical errors in the proposal materials; and

(iii) technical changes to conditions that do not alter the budget, company's eligibility status, or violate any state or federal law.

(4) Substantive changes must be approved by TRU in consultation with the talent ready Utah board.

(5) All approved changes shall be made in writing and through an amendment modifying the terms of the grant contract.

(6) Awardees refusal or failure to sign contract within 90 days of receipt of contract constitutes a rejection of the UWP grant and a waiver of any rights and benefits.

 

R357-24-110. Funding Distribution.

(1) TRU shall reimburse the awardee for no more than the total amount specified in the contract.

(2) Payment will only be made for those costs authorized and approved by TRU after providing sufficient documentation in accordance with the terms and conditions provided in the contract.

(3) After execution of the contract between GOED and awardee:

(a) awardee may receive up to fifty percent of the total grant amount, subject to TRU approval;

(b) remaining funds to be disbursed on a reimbursement basis, as outlined in scope of work and after company provides sufficient evidence of initial expenditures.

(4) Failure to successfully complete the scope of work requirements may result in a recapture of all or part of the grant funding and will be grounds to terminate the contract and any future funding.

 

R357-24-111. Reporting and Cooperation Requirements.

(1) The awardee shall report to TRU and provide documentation evidencing the following metrics for inclusion in the annual report described in section 63N-1-301:

(a) the number of participants in the program;

(b) the number of participants who have completed training offered by the program;

(c) the number of participants who have been hired by a business participating in the program; and

(d) any additional data needed as required and outlined in the terms of the contract.

(2) Awardee shall submit to any audit, by TRU or a third-party, to verify reported data.

 

KEY: economic development, Talent Ready Utah, Utah Works Program

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 63N-12-505