63N-4-802.  Creation of Rural Opportunity Program — Awarding of grants and loans — Rulemaking — Reporting.

(1)  There is created the Rural Opportunity Program.

Terms Used In Utah Code 63N-4-802

  • Advisory committee: means the Rural Opportunity Advisory Committee created in Section 63N-4-804. See Utah Code 63N-4-801
  • Association of governments: means an association of political subdivisions of the state, established pursuant to an interlocal agreement under Title 11, Chapter 13, Interlocal Cooperation Act. See Utah Code 63N-4-801
  • Business entity: means a sole proprietorship, partnership, association, joint venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on a business. See Utah Code 63N-4-801
  • CEO board: means a County Economic Opportunity Advisory Board as described in Section 63N-4-803. See Utah Code 63N-4-801
  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Fund: means the Rural Opportunity Fund created in Section 63N-4-805. See Utah Code 63N-4-801
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • program: means the Rural Opportunity Program created in Section 63N-4-802. See Utah Code 63N-4-801
  • Qualified project: means a project to build or improve one or more qualified assets for a rural community, including:
(a) telecom and high-speed Internet infrastructure;
(b) power and energy infrastructure;
(c) water and sewerage infrastructure;
(d) healthcare infrastructure; or
(e) other infrastructure as defined by rule made by the office in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act. See Utah Code 63N-4-801
  • Rural community: means a rural county or rural municipality. See Utah Code 63N-4-801
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
    • (2)  The program shall be overseen by the advisory committee and administered by the office.

    (3) 

    (a)  In overseeing the program, the advisory committee shall make recommendations to the office on the awarding of grants and loans under this section.

    (b)  After reviewing the recommendations of the advisory committee, and subject to appropriations from the Legislature, the office shall:

    (i)  award grants to rural communities and business entities in accordance with Subsection (4) and rules made by the center under Subsection (6); and

    (ii)  award loans to rural communities in accordance with Subsection (5) and rules made by the center under Subsection (6).

    (4) 

    (a)  The office shall annually distribute an equal amount of grant money to all rural counties that have created a CEO board and apply for a grant, in an amount up to and including $200,000 annually per county.

    (b)  In addition to the grant money distributed to rural counties under Subsection (4)(a), the office may use program funds to:

    (i)  award grants to rural communities that demonstrate a funding match, in an amount established by rule under Subsection (6);

    (ii)  award grants to business entities that create new jobs within rural communities; and

    (iii)  award grants to associations of governments, subject to Subsection (4)(e).

    (c)  The office shall award grants under this Subsection (4) to address the economic development needs of rural communities, which needs may include:

    (i)  business recruitment, development, and expansion;

    (ii)  workforce training and development; and

    (iii)  infrastructure, industrial building development, and capital facilities improvements for business development.

    (d)  In awarding grants under this Subsection (4), the office:

    (i)  shall prioritize applications in accordance with rules made by the office under Subsection (6);

    (ii)  may not award more than $800,000 annually to a rural community or business entity; and

    (iii)  may not award more than 20% of the total amount of grant funds made available each year to associations of governments.

    (e)  An association of governments may not receive a grant from the program unless the association of governments demonstrates to the office that each county belonging to the association of governments has approved the request for grant funds.

    (5) 

    (a)  In addition to the awarding of grants under Subsection (4), the office may use program funds to award loans to rural communities to provide financing for qualified projects.

    (b) 

    (i)  A rural community may not receive a loan from the program for a qualified project unless:

    (A)  the rural community demonstrates to the office that the rural community has exhausted all other means of securing funding from the state for the qualified project; and

    (B)  the rural community enters into a loan contract with the office.

    (ii)  A loan contract under Subsection (5)(b)(i)(B):

    (A)  shall be secured by legally issued bonds, notes, or other evidence of indebtedness validly issued under state law, including pledging all or any portion of a revenue source controlled by the rural community to the repayment of the loan; and

    (B)  may provide that a portion of the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the loan.

    (c)  A loan under this Subsection (5) shall bear interest at a rate:

    (i)  not less than bond market interest rates available to the state; and

    (ii)  not more than .5% above bond market interest rates available to the state.

    (d)  Before a rural community may receive a loan from the office, the rural community shall:

    (i)  publish the rural community’s intention to obtain the loan at least once in accordance with the publication and notice requirements described in Section 11-14-316; and

    (ii)  adopt an ordinance or resolution authorizing the loan.

    (e) 

    (i)  If a rural community that receives a loan from the office fails to comply with the terms of the loan contract, the office may seek any legal or equitable remedy to obtain compliance or payment of damages.

    (ii)  If a rural community fails to make loan payments when due, the state shall, at the request of the office, withhold an amount of money due to the rural community and deposit the withheld money into the fund to pay the amount due under the contract.

    (iii)  The office may elect when to take any action or request the withholding of money under this Subsection (5)(e).

    (f)  All loan contracts, bonds, notes, or other evidence of indebtedness securing any loans shall be collected and accounted for in accordance with Section 63B-1b-202.

    (6) 

    (a)  In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in collaboration with the advisory committee, the office shall make rules to administer the program.

    (b)  The rules under Subsection (6)(a) shall establish:

    (i)  eligibility criteria for a rural community or business entity to receive a grant or loan under the program;

    (ii)  application requirements;

    (iii)  funding match requirements for a rural community to receive a grant under Subsection (4)(b);

    (iv)  a process for prioritizing grant and loan applications; and

    (v)  reporting requirements.

    (7)  The office shall include the following information in the annual written report described in Section 63N-1a-306:

    (a)  the total amount of grants and loans the office awarded to rural communities and business entities under the program;

    (b)  a description of the projects for which the office awarded a grant or loan under the program;

    (c)  the total amount of outstanding debt service that is being repaid by a grant or loan awarded under the program;

    (d)  whether the grants and loans awarded under the program have resulted in economic development within rural communities; and

    (e)  the office’s recommendations regarding the effectiveness of the program and any suggestions for legislation.

    Amended by Chapter 499, 2023 General Session

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