DAR File No. 43948

Governor, Economic Development

Rule R357-25

Rural Coworking and Innovation Center Grant Program Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 43948
Filed: 08/01/2019 01:49:51 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 296, passed by the Legislature during the 2019 General Session, created the Rural Coworking and Innovation Center Grant 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 is to clarify the standards for participation in the Program.

Summary of the rule or change:

Section R357-25-102 creates definitions that will be used to administer the Program. Section R357-25-103 references the authority granted in the statutory language that permits rulewriting. Section R357-25-104 outlines the content of the application. Section R357-25-105 establishes the application and approval procedure. Section R357-25-106 establishes the funding distribution standards.

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 Rural Coworking and Innovation Center Grant Program that was created by the passing of H.B. 296 (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 amendment 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 H.B. 296 (2019) which created the Rural Coworking and Innovation Center Grant Program. The purpose of this rule is to clarify the standards for participation in the Program. This rule will have no impact on businesses. The purpose of this rule 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 [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:

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 non-small businesses. This 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 in 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.

R357-25. Rural Coworking and Innovation Center Grant Program.

R357-25-101. Title.

This rule is known as the "Rural Coworking and Innovation Center Grant Program Rule."

 

R357-25-102. Definitions.

In addition to the definitions in Title 63N, Chapter 4, Section 502 as defined or used in this rule:

(1) "Matching funds" means any combination of funds, land, buildings, or in-kind work.

(2) "Office" means the Governor's Office of Economic Development.

(3) "Project" means:

(a) construction or renovating of a facility to create a Co-working and Innovation Center;

(b) extending and/or improving utilities and broadband service connections to a Coworking and Innovation Center; or

(c) purchasing equipment, furniture, and security systems as part of a Co-working and Innovation Center.

 

R357-25-103. Authority.

(1) Subsection 63N-4-504(1) requires the office to make rules establishing the eligibility and reporting criteria for an entity to receive a grant.

 

R357-25-104. Content of Application.

(1) The following content shall, at minimum, be included in each entity's application for a grant:

(a) entity name;

(b) contact information including:

(i) entity's physical address;

(ii) telephone number; and

(iii) email address.

(c) if the entity is a registered vendor with that State of Utah documentation of the vendor number.

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

(e) executive summary of the proposed project that clearly establishes the primary activity of the project, including:

(i) how the project will serve underprivileged or underserved communities;

(ii) any constraints that have limited access to financial resources;

(iii) amount of grant funding requested;

(iv) list of all entities associated with the proposed project and their anticipated roles;

(v) letters of support from all entities associated with the proposed project;

(vi) matching funds associated with the proposed project;

(vii) timeline of the proposed project; and

(viii) detailed budget of the proposed project, including quotes and bids for proposed project.

(2) In addition to the requirements above private companies that apply for grant funding are required to submit:

(a) federal Tax ID;

(b) NAICS Code and Primary Industry;

(c) number of years in business;

(d) number of full-time employees;

(e) certificate of Existence from the Utah Division of Corporations;

(f) business license from local county or municipality;

(g) most recent Federal and State Tax Returns as proof of company profitability;

(h) most recent balance sheet and profit and loss statements as proof of solvency; and

(i) GRAMA form (Request for confidentiality).

 

R357-25-105. Application and Approval Procedure.

(1) The office will use a scoring system to enable the advisory committee and the office to analyze the awarding of grants and grant amounts. The scoring system will be made available in the instructions to the application and will be based on the following:

(a) organizational information;

(b) supporting documentation;

(c) entity history and qualifications;

(d) project proposal;

(e) scope of work;

(g) budget;

(g) matching funds;

(h) timeline; and

(i) deliverables and outcomes.

(2) Complete and scored applications will be presented to the advisory committee.

(3) If, after review of an application provided by an entity the advisory committee determines that the application provides reasonable justification for authorizing a grant and if there are available funds for the grant, the office shall enter into a written agreement with the entity for a term no longer than 18 months.

(4) An entity, without prior written approval from the office, may not commence performance on the contract until the contract agreement is completely executed.

 

R357-25-106. Project Reimbursement.

(1) Awarded entities will be required to submit, at minimum, the following documentation upon reimbursement request:

(a) a letter of request on entity letterhead specifying the amount requested and certifying that the project is either partially completed (up to 50%) or fully completed and all invoices have been paid. The Letter of Request shall be signed and the accuracy of the information verified by a company officer;

(b) copies of all invoices and evidence of payment (checks, bank statements or loan agreements) for work on the project;

(c) photo evidence that the project is partially completed (up to 50%) or fully completed. Please provide several photos of the Coworking and Innovation Center, the building, expansion, installed and functioning equipment; and

(d) proof of Occupancy as issued by the local governing body's inspections department for final reimbursement.

(2) Partial reimbursement payment may be made through the course of the 18 month term of the contract, not to exceed 50% of expenses incurred during the development of the project. A request-for-funds form and itemization sheet will be required to be signed and submitted to receive the initial 50% of funds.

 

KEY: rural coworking, economic development, working hubs

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 63N-4-504(1)