(1) The board shall, by rule: (a) establish criteria and procedures for the allocation and issuance of contingent tax credits to designated investors by means of certificates issued by the board; (b) establish criteria and procedures for assessing the likelihood of future certificate redemptions by designated investors, including: (i) criteria and procedures for evaluating the value of investments made by the Utah fund of funds; and (ii) the returns from the Utah fund of funds; (c) establish criteria and procedures for issuing, calculating, registering, and redeeming contingent tax credits by designated investors holding certificates issued by the board; (d) establish a target rate of return or range of returns for the investment portfolio of the Utah fund of funds; (e) establish criteria and procedures governing commitments obtained by the board from designated purchasers including: (i) entering into commitments with designated purchasers; and (ii) drawing on commitments to redeem certificates from designated investors; (f) have power to: (i) expend funds; (ii) invest funds; (iii) issue debt and borrow funds; (iv) enter into contracts; (v) insure against loss; and (vi) perform any other act necessary to carry out its purpose; and (g) make, amend, and repeal rules for the conduct of its affairs, consistent with this part and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(a) establish criteria and procedures for the allocation and issuance of contingent tax credits to designated investors by means of certificates issued by the board;

(b) establish criteria and procedures for assessing the likelihood of future certificate redemptions by designated investors, including: (i) criteria and procedures for evaluating the value of investments made by the Utah fund of funds; and (ii) the returns from the Utah fund of funds;

(i) criteria and procedures for evaluating the value of investments made by the Utah fund of funds; and

(ii) the returns from the Utah fund of funds;

(c) establish criteria and procedures for issuing, calculating, registering, and redeeming contingent tax credits by designated investors holding certificates issued by the board;

(d) establish a target rate of return or range of returns for the investment portfolio of the Utah fund of funds;

(e) establish criteria and procedures governing commitments obtained by the board from designated purchasers including: (i) entering into commitments with designated purchasers; and (ii) drawing on commitments to redeem certificates from designated investors;

(i) entering into commitments with designated purchasers; and

(ii) drawing on commitments to redeem certificates from designated investors;

(f) have power to: (i) expend funds; (ii) invest funds; (iii) issue debt and borrow funds; (iv) enter into contracts; (v) insure against loss; and (vi) perform any other act necessary to carry out its purpose; and

(i) expend funds;

(ii) invest funds;

(iii) issue debt and borrow funds;

(iv) enter into contracts;

(v) insure against loss; and

(vi) perform any other act necessary to carry out its purpose; and

(g) make, amend, and repeal rules for the conduct of its affairs, consistent with this part and in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.

(2) (a) All rules made by the board under Subsection (1)(g) are subject to review by the Legislative Management Committee: (i) whenever made, modified, or repealed; and (ii) in each even-numbered year. (b) Subsection (2)(a) does not preclude the legislative Administrative Rules Review Committee from reviewing and taking appropriate action on any rule made, amended, or repealed by the board.

(a) All rules made by the board under Subsection (1)(g) are subject to review by the Legislative Management Committee: (i) whenever made, modified, or repealed; and (ii) in each even-numbered year.

(i) whenever made, modified, or repealed; and

(ii) in each even-numbered year.

(b) Subsection (2)(a) does not preclude the legislative Administrative Rules Review Committee from reviewing and taking appropriate action on any rule made, amended, or repealed by the board.

(3) (a) The criteria and procedures established by the board for the allocation and issuance of contingent tax credits shall include the contingencies that must be met for a certificate and its related tax credits to be: (i) issued by the board; (ii) transferred by a designated investor; and (iii) redeemed by a designated investor in order to receive a contingent tax credit. (b) The board shall tie the contingencies for redemption of certificates to: (i) for a private investment initiated before July 1, 2015: (A) the targeted rates of return and scheduled redemptions of equity interests purchased by designated investors in the Utah fund of funds; and (B) the scheduled principal and interest payments payable to designated investors that have made loans initiated before July 1, 2014, including a loan refinanced one or more times on or after July 1, 2014, that was originated before July 1, 2014, to the Utah fund of funds; or (ii) for an equity-based private investment initiated on or after July 1, 2015, the positive impact on economic development in the state that is related to the fund's investments or the success of the corporation's economic development plan in the state, including: (A) encouraging the availability of a wide variety of venture capital in the state; (B) strengthening the state's economy; (C) helping business in the state gain access to sources of capital; (D) helping build a significant, permanent source of capital available for businesses in the state; and (E) creating benefits for the state while minimizing the use of contingent tax credits.

(a) The criteria and procedures established by the board for the allocation and issuance of contingent tax credits shall include the contingencies that must be met for a certificate and its related tax credits to be: (i) issued by the board; (ii) transferred by a designated investor; and (iii) redeemed by a designated investor in order to receive a contingent tax credit.

(i) issued by the board;

(ii) transferred by a designated investor; and

(iii) redeemed by a designated investor in order to receive a contingent tax credit.

(b) The board shall tie the contingencies for redemption of certificates to: (i) for a private investment initiated before July 1, 2015: (A) the targeted rates of return and scheduled redemptions of equity interests purchased by designated investors in the Utah fund of funds; and (B) the scheduled principal and interest payments payable to designated investors that have made loans initiated before July 1, 2014, including a loan refinanced one or more times on or after July 1, 2014, that was originated before July 1, 2014, to the Utah fund of funds; or (ii) for an equity-based private investment initiated on or after July 1, 2015, the positive impact on economic development in the state that is related to the fund's investments or the success of the corporation's economic development plan in the state, including: (A) encouraging the availability of a wide variety of venture capital in the state; (B) strengthening the state's economy; (C) helping business in the state gain access to sources of capital; (D) helping build a significant, permanent source of capital available for businesses in the state; and (E) creating benefits for the state while minimizing the use of contingent tax credits.

(i) for a private investment initiated before July 1, 2015: (A) the targeted rates of return and scheduled redemptions of equity interests purchased by designated investors in the Utah fund of funds; and (B) the scheduled principal and interest payments payable to designated investors that have made loans initiated before July 1, 2014, including a loan refinanced one or more times on or after July 1, 2014, that was originated before July 1, 2014, to the Utah fund of funds; or

(A) the targeted rates of return and scheduled redemptions of equity interests purchased by designated investors in the Utah fund of funds; and

(B) the scheduled principal and interest payments payable to designated investors that have made loans initiated before July 1, 2014, including a loan refinanced one or more times on or after July 1, 2014, that was originated before July 1, 2014, to the Utah fund of funds; or

(ii) for an equity-based private investment initiated on or after July 1, 2015, the positive impact on economic development in the state that is related to the fund's investments or the success of the corporation's economic development plan in the state, including: (A) encouraging the availability of a wide variety of venture capital in the state; (B) strengthening the state's economy; (C) helping business in the state gain access to sources of capital; (D) helping build a significant, permanent source of capital available for businesses in the state; and (E) creating benefits for the state while minimizing the use of contingent tax credits.

(A) encouraging the availability of a wide variety of venture capital in the state;

(B) strengthening the state's economy;

(C) helping business in the state gain access to sources of capital;

(D) helping build a significant, permanent source of capital available for businesses in the state; and

(E) creating benefits for the state while minimizing the use of contingent tax credits.

(4) (a) The board may charge a placement fee to the Utah fund of funds for the issuance of a certificate and related contingent tax credit to a designated investor. (b) The fee shall: (i) be charged only to pay for reasonable and necessary costs of the board; and (ii) not exceed .5% of the private investment of the designated investor.

(a) The board may charge a placement fee to the Utah fund of funds for the issuance of a certificate and related contingent tax credit to a designated investor.

(b) The fee shall: (i) be charged only to pay for reasonable and necessary costs of the board; and (ii) not exceed .5% of the private investment of the designated investor.

(i) be charged only to pay for reasonable and necessary costs of the board; and

(ii) not exceed .5% of the private investment of the designated investor.

(5) The board's criteria and procedures for redeeming certificates: (a) shall give priority to the redemption amount from the available funds in the redemption reserve; and (b) to the extent there are insufficient funds in the redemption reserve to redeem certificates, shall grant the board the option to redeem certificates: (i) by certifying a contingent tax credit to the designated investor; or (ii) by making demand on designated purchasers consistent with the requirements of Section 63N-6-409.

(a) shall give priority to the redemption amount from the available funds in the redemption reserve; and

(b) to the extent there are insufficient funds in the redemption reserve to redeem certificates, shall grant the board the option to redeem certificates: (i) by certifying a contingent tax credit to the designated investor; or (ii) by making demand on designated purchasers consistent with the requirements of Section 63N-6-409.

(i) by certifying a contingent tax credit to the designated investor; or

(ii) by making demand on designated purchasers consistent with the requirements of Section 63N-6-409.