BEDL notes Feb 1

Business, Economic Development and Labor Appropriations 2/1/17

Link to the committee


Theresa Foxley-Works on recruiting corporations to Utah and locations are not site specific meaning they work throughout Utah.

15,000 new jobs in 2015-16

20 announced projects with businesses for 2015-16

8 active corporate recruiting projects for 2016-2017


Rep Gardiner-I remember EDCUtah lost it’s nonprofit status. What is the update on your status?

TF Did lose the np status and has been reinstated retroactively.


Department of Alcoholic Beverage Control Building Blocks

Shiozawa-What effect will losing the Zion curtain will have on your division?

DABC-One concerns is underage drinking.

CWebb Most regulations would impact selling of the product. How much did the ZC affect the DABC? You didn’t pay for them.

Compliance is the factor for the ZC

Barlow- History? Grandfathered vs new business

DABC-existing bar structures were grandfathered which have a restaurant license.

New business have questions regarding both options and the legislature may want to deal with those issues.

CSMoss-Flaw of the ZC, is the Zion box at the Eccles Theater. People were shaking their head, taking pictures. Doug Wright told his children and listeners “Never have a drink unless you know what’s in it.”

DABC-Workload dictates a need for additional resources. Wages are below market and needs to be addressed. Gov’s recommendation of $1.1 million building block for DABC. Same ask as last week. Prioritize the recommended amount highly.


Vote on Base Budgets-

SB00 8 is fee bill. Real estate community requested the change. 350 page bill.

Rep CWebb-Moves to approved SB008, pages 64-105, with changes as listed.

Sen Henderson (H)-Why doubling fees on proprietary schools (PS) changes? Big jump.

AWilko-will ask for clarification.

Sen H- substitute motion same as original motion minus the PS fees.

Peter Andrew(?)-PS have a renewal fee of $500. Initial application is much more complex.

Sen H-Why aren’t we having the renewal fee instead of the application fee?

Peter- Have investigated fees in other states to be comparable.

Sen. H-leaving renewals at $500 does that help with the initial application cost?

Peter-Proprietary schools choose to register in Utah since our fees are so low.

Sen H-Fees are intended to keep competition out.

Sen Bramble (B)-Encourage barriers to entry for proprietary schools???? Explain.

Peter-It is not correct to use that terminology. We want to encourage schools in our state. The crux of the matter is the amount of work we put in to the applications. No reason for us as a division to have the lowest fee in the West.

Rep CSpackmanMoss (CSM)-A lot of the cost is for audits. Look up the names of the schools. Some are overcharging students. Some are good some are preying on the students.

Sen B-If this fee is based on covering the costs and we need to do more on the regulatory side I stand in support.

Peter-Yes, Senator we are looking for those bad actors.

Sen H-Demonstrate those costs as factual.

Sen. Shiozawa-Be careful what you say and reminder that you’re not here to make policy.

Vote-All in favor with the exception of Sen. Henderrson- Passes with one nay.

Sen Bramble- bring the requested information to the committee.

Rep CWebb-item 2. Passes unanimously

Item 3- Non-state funds- Passes unanimously

Item 4- Federal fund amounts 2017-2018 Passes unanimously.

Rep Sandall-Approve intent language. Passes unanimously

Rep Sandall-Approve legislative staff to compile information for committee as approved in previous motions. Approved unanimously.

Rep Sandall-include in supplemental information all changes. Passes unanimously.


 Governor’s Office of Economic Development Building Blocks

Val Hale-All requests are included in Gov budget and are one time funding. Smallest request.

Tourism Marketing Performance Fund (TMPF) $23 million ($18 m ongoing, $ 5 m one time)

Travelers spent $8.5 b(?) last year. 16, 966 travelers booked trips to Utah after seeing digital ads.


Business Resource Center (BRC’s)

$150,000 one time supports the “one-stop shops” that house small business services under one roof.

Answer Sen H- 25,000 jobs per year to stay even.


Office of Outdoor Recreation-$1 million


Outdoor Retailer Trade Show--$2.4,000,000 one time fund pavilions for two years.

Projected outcomes: $11.7 M projected sales. $102 m projected attendee spending.

RBarlow-What not ask for $3 m since you’re meeting your goals?

Vicki Varla-We will do with the appropriation to continue the recommendation. Gov recommendation takes in to consideration the budget issues.

Rep. Peterson-What was the funding last year for the ORS?

VHale-one time money goes for renting the big tents. Once the hotel is built this cost goes away.

Rep. Peterson would like clarification of what money we spend and what we bring in.

VHale-I’d be happy to meet with you offline.

Rep. Weight-How volatile or certain is the ORS?

VHale-Article in Denver post is making a huge push for moving it to CO.


Columbus Hub of Opportunity-$250,000 one time

Employment and housing for individuals with disabilities.

NextWork Autism Hub: training young adults with autism for jobs in STEM industries.


Sundance Institute-$750,000 one time

Last 5 years: 233,000 visitors, 7,300 jobs. $34.7 m in state and local tax revenue $392.2 m in cumulative economic impact, $98.9 m publicity value in FY 2016 alone

Sen Shiozawa-last year allocation?

$500,000 allocation and co-op fund provided $250,000

Sarah Pierce, Managing Editor or Sundance Institute-results in the next three weeks. Feels like attendance on par with last year.


Inland Port Study-$250,000 one-time

Ability to allow global trade to be processed and altered as good move through the supply chain.

Approximately 22% of the jobs in the state are tied to international business

Gardner Policy Institute highlights 13 US ports in preliminary study


Sen Harper-Limited on General Funds so please prioritize your requests


USTAR Research Request – Sen. Shiozawa

Request is to conduct studies on Cannabis. Further large clinical trials are needed to confirm the effect of Cannabinoids. Question, does this work and how will it shape the policy going forward. What other drugs are coming on the market that will be coming down the pike.

Dr. Ivy Estabrooke, PH, ED USTAR-2016 Sen Shiozawa passed and Gov signed SCR 11. Request to collaborate on the medical benefits of medical marijuana.

USTAR conducted a review of the current published research

Collaborated with the U of U working group on cannabinoids and marijuana to determine feasibility of studies for medicinal marijuana effectiveness.

Sen. Anderegg-Does this study conflict with Rep. Daw’s bill?

Sen. Shiozawa-Does not conflict. They need the money for the study.

Rep. Barlow-Do you need the schedule 1 license for the IRB study?

Dr. Ulling-Do not need a schedule 1 license for the IRB study if you were to allow those to smoke you would need the license.


 RFA – Murray City Park Amphitheater – Rep. Cutler

Doug Hale, Mayor pro tem $148,000 to redo the Amphitheater. Put it out to bid which came back higher. Facility is showing its age. Needs a cover over the stage for inclement weather, concessions area, restrooms, dressing rooms. $400,000 short. Writing grants have received approx. $250 so far.

Rep. Cutler-Heavily used and time to update it.

Rep. CSM-in my district, thriving city and park is a jewel and support request.


RFA – Utah Advanced Materials & Manufacturing Initiative (UAMMI) – Rep. Wilson

$1 m in FY 18 one-time non-lapsing

Rep. Wilson-Excited to bring this request to this committee. Request is pure economic

development. 10,000 folks work in the space currently and 100 companies-urban and rural. 

Jeff Edwards-New Director of UAMMI. Advanced materials are essential. Major component is carbon fiber also plastics and ceramics. Many were developed in Utah over the past 50 years.


RFA – American Freedom Festival – Sen. Bramble

Annual Budget $3.3 m Requesting?????

Small grants in the past. Attracts 500,000 people each year. Disclose that I’ve been a participant in the Balloon Festival. Out of pocket spent $100,000 to support the community.

Paul Warner, ED Freedom Festival-expand Hope of America program for fifth graders. 8000 students who study the Declaration of Independence, Constitution. Would like to expand in to the rest of the state.


RFA – Utah Unmanned Aerial Systems (UAS) Testing and Training Center – Sen. Knudsen

Last year, initial ask which has been put to good use.

$250,000 request to make the center commercially viable.

Locate in western Box Elder County near Thiokol (Orbital ATK) which has FAA authorization. Jeremiah Riley-Orbital ATK has contributed $200,000 to the project. Companies have a difficult time finding a place to test unmanned systems which differentiates the site from others across the country.

Supporting DNR to help solve the problem of drones interfering with wildfire management.

Request is to support more runways at the center.

Rep Sandall-Comment in my district. Interesting to know that Orbital ATK has invested a couple million in the site. This needs a little nudge to make itself sustaining.

Rep Weight-Not aware of this site. Is public information regarding the training being publicized?

Jeremiah-We work with USU to help publicize the site, technology etc.



RFA –  Discovery Gateway Children’s Museum – Sen. Weiler

Request $1 million

Hasn’t received money from the state for exhibits for ten years.

Laurie-ED Discovery Gateway-One of 400 Children’s Museum spread across the state. Focusing on early childhood education. Interactive exhibits where children learn through play. Science Outreach program and community outreach programs. Serve families and support schools with the curriculum in the schools. Attract over 200,000 people to the Gateway. Aging exhibits and are looking for a $1 m request so we can widen our service to families and the Gateway Center.

Sen. Shiozawa-What participation are we getting from SL County?

Laurie-$90 k grant from SL County. County is the major donor and allocates rent

Rep. Sandall. How much in the $4 million total has been banked?

Laurie-$2 m in asks in the pipeline. 






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