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        January 26, 2000



Mr. Speaker:

    The Business, Labor, and Economic Development Committee reports a favorable recommendation on H.B. 227, COMMUNITY AND ECONOMIC DEVELOPMENT AMENDMENTS, by Representative W. Harper, with the following amendments:

1.    Page 1, Line 8:    After "AMENDING" delete "THE" and after "ALLOCATION" insert "PROVISIONS"

2.    Page 1, Line 21:    After line 21 insert:
        " 9-4-505, as last amended by Chapter 24, Laws of Utah 1999"

3.    Page 5, Line 140:    After line 140 insert:
        "Section 6. Section 9-4-505 is amended to read:
          9-4-505 .   Allocation of volume cap.
              (1) (a) Subject to Subsection (1)(b), the volume cap for each year shall be distributed by the board of review to the various allotment accounts as set forth in Section 9-4-506 .
              (b) The board of review may distribute up to 50% of each increase in the volume cap that occurs after the effective date of this Subsection (1)(b) for use in development that occurs in quality growth areas, depending upon the board's analysis of the relative need for additional volume cap between development in quality growth areas and the allotment accounts under Section 9-4-506 .
              (2) To obtain an allocation of the volume cap, issuing authorities shall submit to the board of review an application containing information required by the procedures and processes of the board of review.
              (3) The board of review shall establish criteria for

making allocations of volume cap that are consistent with the purposes of the code and this part. In making an allocation of volume cap the board of review shall consider the following:
              (a) the principal amount of the bonds proposed to be issued;
              (b) the nature and the location of the project or the type of program;
              (c) the likelihood that the bonds will be sold and the timeframe of bond issuance;
              (d) whether the project or program could obtain adequate financing without an allocation of volume cap;
              (e) the degree to which an allocation of volume cap is required for the project or program to proceed or continue;
              (f) the social, health, economic, and educational effects of the project or program on the local community and state as a whole;
              (g) the anticipated economic development created or retained within the local community and the state as a whole;
              [ (g) ] (h) the anticipated number of jobs, both temporary and permanent, created or retained within the local community and the state as a whole;
              [ (h) ] (i) if the project is a residential rental project, the degree to which the residential rental project targets lower income populations; and
              [ (i) ] (j) whether the project meets the principles of quality growth recommended by the Quality Growth Commission created under Section 11-38-201 .
              (4) The board of review shall evidence an allocation of volume cap by issuing a certificate in accordance with Section 9-4-507 .
              (5) (a) From January 1 to June 30, the board shall

allocate at least 50% of the Small Issue Bond Account to manufacturing projects.
              (b) From July 1 to September 30, the board shall allocate at least 50% of the Pool Account to manufacturing projects. "

4.    Page 6, Line 164:    Reinstate "42%" and delete "40%"

5.    Page 6, Line 165:    Reinstate "33%" and delete "31%"

6.    Page 6, Line 167:    Reinstate "24%" and delete "28%"

         Renumber remaining sections accordingly.



    Respectfully,



    John William 'Bill' Hickman
    Committee Chair

Voting: 11-0-3
3 HB0227.HC1 1/26/00 9:54 AM mcperry/MCP PO/MCP

Bill Number
Action Class
Action Code

*HB0227*
*H*
*HCRAMD*

HB0227
H
HCRAMD