DAR File No. 44018

This rule was published in the September 15, 2019, issue (Vol. 2019, No. 18) of the Utah State Bulletin.


Governor, Economic Development

Rule R357-15a

Non-Profit Enterprise Zone Rule

Notice of Proposed Rule

(New Rule)

DAR File No.: 44018
Filed: 08/27/2019 01:55:58 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

H.B. 219, passed by the Legislature during the 2017 General Session, created the Non-Profit Enterprise Zone Rule 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 is to clarify the standards for participation in the Program.

Summary of the rule or change:

Section R357-15a-103 references the authority granted in the statutory language that permits rulewriting. Section R357-15a-104 outlines the content of the application. Section R357-15a-105 establishes the tax credit procedure.

Statutory or constitutional authorization for this rule:

  • Subsection 63N-2-213.5(14)

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 H.B. 219 (2017).

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. 219 (2017) which created the Non-Profit Enterprise Zone Program (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 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:

10/15/2019

This rule may become effective on:

10/22/2019

Authorized by:

Dane Ishihara, Economic Development Analyst

RULE TEXT

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 rule filing 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.

R357-15a. Non-Profit Enterprise Zone Program.

R357-15a-101. Title.

This rule is known as the "Non-Profit Enterprise Zone Rule."

 

R357-15a-103. Authority.

(1) Subsection 63N-2-213.5 (14) requires the office to make rules for administration of the program.

 

R357-15a-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) contact name;

(ii) email address;

(iii) telephone number;

(iv) title; and

(v) mailing address.

(c) description of the primary use of funds, including:

(i) how the project will impact the enterprise zone;

(2) Supporting documentation including:

(a) IRS designation letter;

(b) non-profit organization W-9;

(c) charitable solicitation permit;

(d) certificate of good standing;

(e) articles of incorporation;

(f) by-laws;

(g) list of board members;

(h) evidence the legislative body of the county or municipality has approved the project; and

(i) project budget, including maps, drawings or renderings.

 

R357-15a-105. Tax Credit Procedure.

(1) A nonprofit corporation associated with an approved project shall submit, at minimum, submit the following upon completion of the approve project:

(a) complete donor list;

(b) verified project expenses on a format approved by the office.

(2) Claimants shall submit, at minimum, the following documentation for reimbursement and after completion of the approved project:

(a) a complete request form provided by the office;

(b) receipt from the non‐profit for the donation; and

(c) donation documentation, which may include:

(i) canceled checks;

(ii) credit card statements;

(iii) bank statements; and

(iv) other financial instruments verifying payment had occurred.

(3) The office may deny a tax credit for claimants who were the recipient of funding for an approved project.

 

KEY: rural development, economic development, enterprise zone

Date of Enactment or Last Substantive Amendment: 2019

Authorizing, and Implemented or Interpreted Law: 63N-2-213.5(14)


Additional Information

More information about a Notice of Proposed Rule is available online.

The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull_pdf/2019/b20190915.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.

Text to be deleted is struck through and surrounded by brackets ([example]). Text to be added is underlined (example).  Older browsers may not depict some or any of these attributes on the screen or when the document is printed.

For questions regarding the content or application of this rule, please contact Dane Ishihara at the above address, by phone at 801-538-8865, by FAX at , or by Internet E-mail at dishihara@utah.gov.  For questions about the rulemaking process, please contact the Office of Administrative Rules.