DAR File No. 43939

Governor, Economic Development

Rule R357-22

Rural Employment Expansion Program

Notice of Proposed Rule

(Amendment)

DAR File No.: 43939
Filed: 07/31/2019 02:04:46 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this rule filing is to clarify the requirements for a business entity to qualify for participation in the rural employment expansion program.

Summary of the rule or change:

Section R357-22-102 is updated to create new definitions that will be used to administer the program and delete obsolete definitions. Section R357-22-104 is modified to include additional documentation in the form and content of the application. Section R357-22-105 is modified to adjust the documentation required to demonstrate the creation of new full-time employee positions. Section R357-22-107 is updated to codify various requirements for the administration of the program and delete obsolete subsections.

Statutory or constitutional authorization for this rule:

• Subsection 63N-4-403(2)(c)

Anticipated cost or savings to:

the state budget:

There is no aggregate anticipated cost or savings to the state budget. These changes merely codify the procedures the Office of Economic Development has historically used.

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 these proposed amendments do 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 these proposed amendments do 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:

The purpose of this rule filing is to clarify the standards for participation in the program. These rule amendments will have no impact on businesses. The purpose of this rule filing is to clarify the standards for participation in the program.

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 DevelopmentRoom THIRD FLOOR
60 E SOUTH TEMPLE
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:

09/16/2019

This rule may become effective on:

09/23/2019

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. These proposed rule changes are 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.

R357-22. 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.]

(1) "Employee report" means a list of employees in a format approved by the office that includes:

(a) time-period of report;

(b) employee:

(i) names or ID numbers;

(ii) position titles;

(iii) hire dates;

(iv) termination dates, if applicable;

(v) hours paid;

(vi) wages paid.; and

(vii) benefits paid, if applicable.

(4) "New full-time employee position" means a positon that:

(a) has been newly created in addition to the number of baseline jobs as defined in subsection 63N-1-102(1);

(b) is a newly created full-time employee position where the annual gross wage or annualized wage of the employment position, not including health care or other paid or unpaid benefits, is at least 110% of the average wage of the county in which the employment position exists; and

(c) is filled;

(i) by a full-time employee as defined in subsection 63N-1-102(6) who is not a spouse, child, parent, sibling, grandparent, or grandchild of an owner or officer of the business entity;

(ii) in any county in the state except Salt Lake, Utah, Davis, Weber, Washington, Cache, Tooele, and Summit counties; and

[(3)](2) "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 operating 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; and

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

(ii) a copy of an executed professional employee agreement, as defined in Subsection 31A-40-102(15); and

(c) employee report covering the twelve months prior to application.

 

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 employee positions after the position has been filled for 12 months:

(a) number of new full-time employee positions created;

(b) address of work location if different from the address supplied in the business entity's application for REDI Participation;

(c) employee report for the twelve months prior to grant funds disbursement request; and

(d)(i) two most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports; or

(ii) a copy of an executed professional employee agreement, as defined in Subsection 31A-40-102(15).

(2) A business entity may apply for grant funds after the new employee position has been filled for a minimum of six months and the annualized wage is at least 110% of the county's annual wage by submitting, at minimum, the following:

(a) number of new full-time employee positions created;

(b) address of work if different from the address supplied in the business entity's application for REDI Participation;

(c) employee report covering the twelve months prior to grant disbursement request; and

(d)(i) two most recent Form 33H - Utah Employer Quarterly Wage List and Contribution Reports; or

(ii) a copy of an executed professional employee agreement, as defined in Subsection 31A-40-102(15).

(e) new full-time employee positions pay stubs at the second, fourth and sixth months.

(3) the office may request additional information in order to verify the creation and wage of new full-time employee 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 employee 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 employee 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]3) 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).

(4) If the office finds a material change in the baseline number of jobs after established in the contract, the administrator may cause the contract to be amended to reflect the correct number prior to issuance or denial of an incentive.

(5) The written agreement, as described in Subsection 63N-4-404(3), will establish the average county wage terms and requirements.

 

KEY: rural employment expansion, economic development

Date of Enactment or Last Substantive Amendment: [October 11, 2018]2019

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