DAR File No. 43949

Governor, Economic Development

Rule R357-26

Rural Rapid Manufacturing Grant Program Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 43949
Filed: 08/01/2019 02:55:07 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 276, passed by the Legislature during the 2019 General Session, created the Rural Rapid Manufacturing 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 R357-26-102 creates definitions that will be used to administer the Program. Section R357-26-103 references the authority granted in the statutory language that permits rulewriting. Section R357-26-104 outlines the content of the application. Section R357-26-105 establishes the application and approval procedure. Section R357-26-106 establishes the funding distribution standards.

Statutory or constitutional authorization for this rule:

• Subsection 63N-4-604(1)

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 Rapid Manufacturing Grant Program that was created by the passing of H.B. 276 (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 H.B. 276 (2019) which created the Rural Rapid Manufacturing Grant 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. 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 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 non-small businesses. This proposed new 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.

 

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

 

 

R357. Governor, Economic Development.

R357-26. Rural Rapid Manufacturing Grant Program.

R357-26-101. Title.

This rule is known as the "Rural Rapid Manufacturing Grant Program Rule."

 

R357-26-102. Definitions.

In addition to the definitions in Title 63N, Chapter 4, Section 602 as defined or used in this rule:

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

(3) "Project" means:

(a) construction or renovation of a rapid manufacturing clothing production laboratory, engineering and computer graphics laboratory, manufacturing systems laboratory, or textile science laboratory designed to train students and employees;

(b) the building and improvement of equipment to provide opportunities for students and employees to train and participate in rapid manufacturing; or

(c) training and scholarships for students and employees to participate in rapid manufacturing employment opportunities.

 

R357-26-103. Authority.

(1) Subsection 63N-4-604(1) requires the office to make rules establishing the eligibility and reporting criteria for an entity to receive a grant.

 

R357-26-104. Content of Application.

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

(1) organizational information including:

(a) entity name;

(b) entity address;

(c) entity telephone number;

(d) entity Tax ID;

(e) entity contact(s);

(f) contact(s) email addresses;

(g) contact(s) telephone numbers; and

(h) amount of grant funding request.

(2) Supporting documentation including:

(a) list stakeholders and partners involved in the grant project and the roles they will perform;

(b) letter(s) of support from all entities involved in the project;

(c) letter of support from the community in which the project will take place;

(d) quotes and bids for proposed project;

(e) drafts or renderings of the proposed construction or renovation projects, and/or pictures of existing property to be modified to accommodate a laboratory;

(f) the entity's W9 form, or the applicant's State of Utah vendor number if the applicant is currently a state vendor; and

(g) project plan that includes:

(i) project proposal;

(ii) scope of work;

(iii) itemized budget;

(iv) timeline;

(v) deliverables and outcomes; and

(vi) how the deliverable and outcomes will be gathered and tracked.

(3) In addition to the requirements in this section non-profit entities that apply for grant funding are required to submit:

(b) IRS designation letter;

(c) non-profit organization W-9;

(d) charitable Solicitation Permit;

(e) certificate of good standing;

(f) Articles of Incorporation;

(g) By-laws;

(h) list of board members;

(i) GRAMA form (request for confidentiality); and

(j) letter of support from the Economic Development Director or County/City Official in the designated area.

 

R357-26-105. Application and Approval Procedure.

(1) The office will use a scoring system to analyze the awarding of grants and grant amounts. The scoring system will be made available in the instructions to the application.

(2) If, after review of an application provided by an entity the office 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.

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

 

R357-26-106. 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. Provide several photos of the project, the building, expansion, installed and functioning equipment; and

(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 manufacturing, economic development

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 63N-4-604(1)