S.B. 62 Enrolled

             1     

UTAH SCIENCE TECHNOLOGY AND RESEARCH

             2     
GOVERNING AUTHORITY AMENDMENTS

             3     
2014 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Brian E. Shiozawa

             6     
House Sponsor: Jim Bird

             7      Cosponsor:John L. Valentine              8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies Title 63M, Chapter 2, Utah Science Technology and Research
             12      Governing Authority Act, and other related provisions.
             13      Highlighted Provisions:
             14          This bill:
             15          .    defines terms;
             16          .    requires the Utah Science Technology and Research (USTAR) governing authority
             17      to:
             18              .    lease certain science and technology buildings to state universities;
             19              .    establish written performance standards and expectations for each technology
             20      outreach program location;
             21              .    establish written performance standards and expectations for each research team
             22      funded by the USTAR initiative;
             23              .    provide a detailed annual report; and
             24              .    provide an annual audit;
             25          .    modifies the allocation of commercialization revenues;
             26          .    repeals the nonlapsing status of appropriations to the USTAR governing authority;
             27      and
             28          .    makes technical changes.


             29      Money Appropriated in this Bill:
             30          None
             31      Other Special Clauses:
             32          None
             33      Utah Code Sections Affected:
             34      AMENDS:
             35           63J-1-602.4 , as last amended by Laws of Utah 2013, Chapter 28
             36           63M-2-102 , as renumbered and amended by Laws of Utah 2008, Chapter 382
             37           63M-2-201 , as renumbered and amended by Laws of Utah 2008, Chapter 382
             38           63M-2-202 , as renumbered and amended by Laws of Utah 2008, Chapter 382
             39           63M-2-203 , as renumbered and amended by Laws of Utah 2008, Chapter 382
             40           63M-2-204 , as last amended by Laws of Utah 2011, Chapter 392
             41           63M-2-301 , as last amended by Laws of Utah 2010, Chapter 286
             42           63M-2-302 , as last amended by Laws of Utah 2012, Chapter 242
             43           63M-2-303 , as last amended by Laws of Utah 2010, Chapter 286
             44      ENACTS:
             45           63M-2-302.5 , Utah Code Annotated 1953
             46           63M-2-401 , Utah Code Annotated 1953
             47           63M-2-402 , Utah Code Annotated 1953
             48     
             49      Be it enacted by the Legislature of the state of Utah:
             50          Section 1. Section 63J-1-602.4 is amended to read:
             51           63J-1-602.4. List of nonlapsing funds and accounts -- Title 61 through Title 63M.
             52          (1) Funds paid to the Division of Real Estate for the cost of a criminal background
             53      check for a mortgage loan license, as provided in Section 61-2c-202 .
             54          (2) Funds paid to the Division of Real Estate for the cost of a criminal background
             55      check for principal broker, associate broker, and sales agent licenses, as provided in Section
             56      61-2f-204 .


             57          (3) Certain funds donated to the Department of Human Services, as provided in
             58      Section 62A-1-111 .
             59          (4) Certain funds donated to the Division of Child and Family Services, as provided in
             60      Section 62A-4a-110 .
             61          (5) Appropriations from the Choose Life Adoption Support Restricted Account created
             62      in Section 62A-4a-608 .
             63          (6) Appropriations to the Division of Services for People with Disabilities, as provided
             64      in Section 62A-5-102 .
             65          (7) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
             66      provided in Section 63C-6-104 .
             67          (8) Funding for the Medical Education Program administered by the Medical
             68      Education Council, as provided in Section 53B-24-202 .
             69          (9) Certain money payable for commission expenses of the Pete Suazo Utah Athletic
             70      Commission, as provided under Section 63C-11-301 .
             71          (10) Funds appropriated or collected for publishing the Division of Administrative
             72      Rules' publications, as provided in Section 63G-3-402 .
             73          (11) The Immigration Act Restricted Account created in Section 63G-12-103 .
             74          (12) Money received by the military installation development authority, as provided in
             75      Section 63H-1-504 .
             76          (13) The appropriation to fund the Governor's Office of Economic Development's
             77      Enterprise Zone Act, as provided in Section 63M-1-416 .
             78          (14) The Motion Picture Incentive Account created in Section 63M-1-1803 .
             79          [(15) Appropriations to the Utah Science Technology and Research Governing
             80      Authority, created under Section 63M-2-301 , as provided under Section 63M-2-302 .]
             81          Section 2. Section 63M-2-102 is amended to read:
             82           63M-2-102. Definitions.
             83          As used in this chapter:
             84          (1) "Commercialization revenues" means dividends, realized capital gains, license fees,


             85      royalty fees, and other revenues received by a university as a result of commercial applications
             86      developed from the [project] USTAR initiative, less:
             87          (a) the portion of those revenues allocated to the inventor; and
             88          (b) expenditures incurred by the university to legally protect the intellectual property.
             89          (2) "Executive director" means the person appointed by the governing authority under
             90      Section 63M-2-301 .
             91          [(5)] (3) "Research buildings" means any of the buildings listed in Section 63M-2-201 .
             92          [(6)] (4) "Research universities" means the University of Utah and Utah State
             93      University.
             94          [(7)] (5) "Technology outreach program" means the program [required by] described in
             95      Section 63M-2-202 .
             96          [(3) "Governing authority"] (6) "USTAR governing authority" means the Utah Science
             97      Technology and Research Governing Authority created in Section 63M-2-301 .
             98          [(4) "Project"] (7) (a) "USTAR initiative" means the Utah Science Technology and
             99      Research [Project] Initiative created in Section 63M-2-301 .
             100          [(8) "Utah Science Technology and Research Project" means the buildings and
             101      activities]
             102          (b) "USTAR initiative" includes the projects, operations, activities, programs, and
             103      services described in [Part 2, Utah Science Technology and Research Project] this chapter.
             104          Section 3. Section 63M-2-201 is amended to read:
             105     
Part 2. Utah Science Technology and Research Initiative

             106           63M-2-201. Science technology research buildings.
             107          (1) As funding becomes available from the Legislature or other sources, the [Utah
             108      Science Technology and Research Governing Authority created in Part 3] USTAR governing
             109      authority shall:
             110          (a) construct at Utah State University:
             111          (i) a Bio Innovations Research Institute;
             112          (ii) an Infectious Disease Research Center; and


             113          (iii) an Informatics/Computing Research Center; and
             114          (b) construct at the University of Utah:
             115          (i) a Neuroscience and Biomedical Technology Research Building; and
             116          (ii) an Information Technology and Bioinformatics Research Center.
             117          (2) The USTAR governing authority shall, subject to any restrictions or directions
             118      established by the Legislature, plan, design, and construct the buildings.
             119          (3) (a) Utah State University shall provide the land for the construction of science
             120      technology and research buildings on its campus.
             121          (b) The University of Utah shall provide the land for the construction of science
             122      technology and research buildings on its campus.
             123          (4) The USTAR governing authority shall hold title to the research buildings.
             124          (5) The governing authority [may] shall:
             125          [(a) lease the buildings to Utah State University and the University of Utah;]
             126          (a) before approving occupancy of a building, lease each building constructed on Utah
             127      State University's campus to Utah State University and each building constructed on the
             128      University of Utah's campus to the University of Utah by entering into a written lease
             129      agreement with each university that clearly establishes the terms for the university's use,
             130      maintenance, and ongoing rental payments for the building;
             131          (b) require research teams to generate a certain amount of revenue from grants or other
             132      sources to contribute to the [project] USTAR initiative; and
             133          (c) unless prohibited by law, deposit lease payments and other money received from
             134      the universities and research teams with the state treasurer for deposit into the sinking funds
             135      created under Section 63B-1a-301 for debt service on the bonds issued to fund planning,
             136      design, and construction of the research buildings.
             137          Section 4. Section 63M-2-202 is amended to read:
             138           63M-2-202. Technology outreach program.
             139          (1) As funding becomes available from the Legislature or other sources, the [Utah
             140      Science Technology and Research Governing Authority created in Part 3] USTAR governing


             141      authority shall establish a technology outreach program at up to five locations distributed
             142      strategically throughout Utah.
             143          (2) (a) The USTAR governing authority shall ensure that the technology outreach
             144      program acts as a resource to:
             145          (i) broker ideas, new technologies, and services to entrepreneurs and businesses
             146      throughout a defined service area;
             147          (ii) engage local entrepreneurs and professors at applied technology centers, colleges,
             148      and universities by connecting them to Utah's research universities;
             149          (iii) screen business ideas and new technologies to ensure that the ones with the highest
             150      growth potential receive the most targeted services and attention;
             151          (iv) connect market ideas and technologies in new or existing businesses or industries
             152      or in regional colleges and universities with the expertise of Utah's research universities;
             153          (v) assist businesses, applied technology centers, colleges, and universities in
             154      developing commercial applications for their research; and
             155          (vi) disseminate and share discoveries and technologies emanating from Utah's
             156      research universities to local entrepreneurs, businesses, applied technology centers, colleges,
             157      and universities.
             158          (b) In designing and operating the technology outreach program, the USTAR
             159      governing authority shall:
             160          (i) for each technology outreach program location:
             161          (A) establish written performance standards and expectations for each location; and
             162          (B) require reporting from each location related to those performance standards and
             163      expectations on at least an annual basis; and
             164          (ii) work cooperatively with the Technology Commercialization Offices at Utah State
             165      University and the University of Utah.
             166          Section 5. Section 63M-2-203 is amended to read:
             167           63M-2-203. Research teams.
             168          (1) As funding becomes available from the Legislature or other sources, and subject to


             169      any restrictions or directions established by the Legislature, the USTAR governing authority
             170      shall allocate money to Utah State University and the University of Utah to provide funding for
             171      research teams to conduct science and technology research.
             172          (2) The USTAR governing authority shall:
             173          (a) establish written performance standards and expectations for each research team
             174      receiving USTAR initiative funding;
             175          (b) require each research team to report on the team's performance related to those
             176      standards and expectations on at least an annual basis; and
             177          (c) require each research team to report on the amount of funding received from
             178      sources other than USTAR initiative funding on at least an annual basis.
             179          (3) The USTAR governing authority shall discontinue allocating money to a research
             180      team that does not provide the reporting required by Subsection (2).
             181          (4) The USTAR governing authority may discontinue allocating money to a research
             182      team for any reason, including:
             183          (a) when the research team is failing to meet expectations established through
             184      performance standards and expectations; and
             185          (b) when the research team is receiving sufficient funding from other sources to no
             186      longer reasonably need USTAR initiative funding.
             187          Section 6. Section 63M-2-204 is amended to read:
             188           63M-2-204. Financial participation agreement.
             189          (1) In consideration of the money and services provided or agreed to be provided, the
             190      state of Utah, Utah State University, and the University of Utah [covenant and] agree that they
             191      will allocate commercialization revenues as follows:
             192          (a) for the first $15,000,000 received:
             193          (i) $10,000,000 to Utah State University and the University of Utah, with the money
             194      distributed proportionately based upon which university conducted the research that generated
             195      the commercialization revenues; and
             196          (ii) $5,000,000 to the [Governor's Office of Economic Development for the


             197      Technology Commercialization and Innovation Program created by Chapter 1, Part 7,
             198      Technology Commercialization and Innovation Act] USTAR governing authority for the
             199      ongoing operations of the USTAR initiative; and
             200          (b) for all subsequent money received:
             201          (i) 50% to Utah State University and the University of Utah, with the money
             202      distributed proportionately based upon which university conducted the research that generated
             203      the commercialization revenues; and
             204          (ii) 50% to the USTAR governing authority or other entity designated by the state to be
             205      used for:
             206          [(A) the Technology Commercialization and Innovation Program created by Chapter 1,
             207      Part 7, Technology Commercialization and Innovation Act;]
             208          (A) unless prohibited by law, deposit with the state treasurer for deposit into the
             209      sinking fund created under Section 63B-1a-301 for debt service on the bonds issued to fund
             210      planning, design, and construction of the research buildings;
             211          (B) ongoing operations of the USTAR initiative;
             212          [(B)] (C) replacement of equipment in the research buildings;
             213          [(C)] (D) [recruiting and paying] recruitment and funding of additional research teams;
             214      and
             215          [(D)] (E) construction of additional research buildings.
             216          [(2) The Governor's Office of Economic Development shall:]
             217          [(a) distribute that portion of the $5,000,000 allocated to the Technology
             218      Commercialization and Innovation Program by Subsection (1)(a)(ii) to Utah State University
             219      and the University of Utah based upon which institution performed the research that generated
             220      the commercialization revenues; and]
             221          [(b) credit those amounts to the universities as matching funds under Subsection
             222      63M-1-702 (2).]
             223          Section 7. Section 63M-2-301 is amended to read:
             224           63M-2-301. The Utah Science Technology and Research Initiative and the Utah


             225      Science Technology and Research Governing Authority -- Creation -- Membership --
             226      Meetings -- Staff.
             227          (1) There is created the Utah Science Technology and Research Initiative.
             228          [(1) There] (2) To oversee the Utah Science Technology and Research Initiative, there
             229      is created the Utah Science Technology and Research Governing Authority consisting of the
             230      state treasurer, the executive director of the Governor's Office of Economic Development, and
             231      the following eight members appointed as follows [with the consent of the Senate]:
             232          (a) three appointed by the governor;
             233          (b) two appointed by the president of the Senate;
             234          (c) two appointed by the speaker of the House of Representatives; and
             235          (d) one appointed by the commissioner of higher education.
             236          [(2)] (3) (a) (i) The eight appointed members shall serve four-year staggered terms.
             237          (ii) The appointed members may not serve more than two full consecutive terms.
             238          (b) Notwithstanding Subsection [(2)] (3)(a)(i), the terms of the first members of the
             239      governing authority shall be staggered by lot so that half of the initial members serve two-year
             240      terms and half serve four-year terms.
             241          [(3)] (4) Vacancies in the appointed positions on the governing authority shall be filled
             242      by the appointing authority with consent of the Senate for the unexpired term.
             243          [(4)] (5) (a) The governor, with the consent of the Senate, shall select the chair of the
             244      governing authority to serve a one-year term.
             245          (b) The executive director of the Governor's Office of Economic Development shall
             246      serve as the vice chair of the governing authority.
             247          [(5)] (6) The governing authority shall meet at least monthly and may meet more
             248      frequently at the request of a majority of the members of the governing authority.
             249          [(6) Five] (7) Five members of the governing authority are a quorum.
             250          [(7)] (8) A member may not receive compensation or benefits for the member's service,
             251      but may receive per diem and travel expenses [in accordance with] as allowed in:
             252          (a) Section 63A-3-106 ;


             253          (b) Section 63A-3-107 ; and
             254          (c) rules made by the Division of Finance [pursuant] according to Sections 63A-3-106
             255      and 63A-3-107 .
             256          [(8) (a) (i) The governing authority shall hire]
             257          (9) (a) After consultation with the USTAR governing authority, the governor, with the
             258      consent of the Senate, shall appoint a full-time executive director to provide staff support for
             259      the USTAR governing authority.
             260          [(ii)] (b) The executive director is an at-will employee who may be terminated without
             261      cause by the governor or by majority vote of the USTAR governing authority.
             262          [(b) The Governor's Office of Economic Development shall provide office space and
             263      administrative support for the executive director.]
             264          Section 8. Section 63M-2-302 is amended to read:
             265           63M-2-302. USTAR governing authority powers.
             266          (1) The USTAR governing authority shall:
             267          (a) ensure that funds appropriated and received for research and development at the
             268      research universities and for the technology outreach program are used appropriately,
             269      effectively, and efficiently in accordance with the intent of the Legislature;
             270          (b) in cooperation with the universities' administrations, expand key research at the two
             271      research universities;
             272          (c) enhance technology transfer and commercialization of research and technologies
             273      developed at the research universities to create high-quality jobs and new industries in the
             274      private sector in Utah;
             275          (d) review state and local economic development plans and appropriations to ensure
             276      that the [project] USTAR initiative and its appropriations do not duplicate existing or planned
             277      programs;
             278          (e) establish written economic development objectives for the [project] USTAR
             279      initiative that are measurable and verifiable, including how to maximize revenue to the
             280      USTAR initiative so that it becomes financially self-supporting;


             281          (f) by following the procedures and requirements of Title 63G, Chapter 3, Utah
             282      Administrative Rulemaking Act, make rules for allocating [money appropriated to it]
             283      appropriated money for research teams and for the commercialization of new technology
             284      between Utah State University and the University of Utah;
             285          (g) verify that the [project] USTAR initiative is being enhanced by research grants and
             286      that it is meeting the governing authority's economic development objectives;
             287          (h) monitor all research plans that are part of the [project] USTAR initiative at the
             288      research universities to determine that appropriations are being spent in accordance with
             289      legislative intent and to maximize the benefit and return to the state; and
             290          (i) develop methods and incentives to encourage investment in and contributions to the
             291      [project] USTAR initiative from the private sector[; and].
             292          [(j) annually report and make recommendations to:]
             293          [(i) the governor; and]
             294          [(ii) the Business, Economic Development, and Labor Appropriations Subcommittee.]
             295          (2) The USTAR governing authority may:
             296          (a) in addition to money received [by it] from the Legislature, receive contributions for
             297      the USTAR initiative from any source in the form of money, property, labor, or other things of
             298      value [for the project];
             299          (b) subject to any restrictions imposed by the donation, appropriations, or bond
             300      authorizations, allocate money received by it among the research universities, technology
             301      outreach program, and technology transfer offices to support commercialization and technology
             302      transfer to the private sector; or
             303          (c) enter into agreements necessary to obtain private equity investment in the [project]
             304      USTAR initiative.
             305          [(3) All money appropriated to the governing authority is nonlapsing.]
             306          [(4) The governing authority shall report to the Business, Economic Development, and
             307      Labor Appropriations Subcommittee and to the Legislative Executive Appropriations
             308      Committee by November 1 of each year on its activities, including:]


             309          [(a) the achievement of the objectives and duties provided under this part;]
             310          [(b) its annual expenditure of funds; and]
             311          [(c) nonlapsing balances retained by the governing authority.]
             312          Section 9. Section 63M-2-302.5 is enacted to read:
             313          63M-2-302.5. USTAR governing authority requirements.
             314          The USTAR governing authority is subject to the requirements of an executive branch
             315      agency and is:
             316          (1) an agency for purposes of Title 63J, Chapter 1, Budgetary Procedures Act;
             317          (2) an executive branch procurement unit for purposes of Title 63G, Chapter 6a, Utah
             318      Procurement Code;
             319          (3) a governmental entity for purposes of Title 63G, Chapter 2, Government Records
             320      Access and Management Act; and
             321          (4) a public body for purposes of Title 52, Chapter 4, Open and Public Meetings Act.
             322          Section 10. Section 63M-2-303 is amended to read:
             323           63M-2-303. USTAR Governing Authority Advisory Council -- Chair -- Meetings.
             324          (1) There is created the [Utah Science Technology and Research] USTAR Governing
             325      Authority Advisory Council consisting of 12 members appointed as follows:
             326          (a) one member appointed by the director of the Governor's Office of Economic
             327      Development;
             328          (b) one member appointed by the [Utah Information Technology Association] Utah
             329      Technology Council;
             330          (c) one member appointed by the Utah Nanotechnology Initiative;
             331          (d) one member appointed by the Economic Development Corporation of Utah;
             332          (e) one member appointed by [the Utah Life Science Association] BioUtah;
             333          (f) one member appointed by the Salt Lake Area Chamber of Commerce;
             334          (g) one member appointed by the Provo-Orem Chamber of Commerce;
             335          (h) one member appointed by the Davis Area Chamber of Commerce;
             336          (i) one member appointed by the Ogden-Weber Chamber of Commerce;


             337          (j) one member appointed by the Cache Chamber of Commerce;
             338          (k) one member appointed by the St. George Area Chamber of Commerce; and
             339          (l) one member appointed by the Vernal Chamber of Commerce.
             340          (2) The USTAR governing authority shall consult with the advisory council about the
             341      [project] USTAR initiative.
             342          (3) The advisory council shall select a chair from among its members to serve a
             343      two-year term.
             344          (4) The advisory council shall convene whenever the USTAR governing authority
             345      requests a meeting for consultation.
             346          (5) A member may not receive compensation or benefits for the member's service, but
             347      may receive per diem and travel expenses [in accordance with] as allowed in:
             348          (a) Section 63A-3-106 ;
             349          (b) Section 63A-3-107 ; and
             350          (c) rules made by the Division of Finance [pursuant] according to Sections 63A-3-106
             351      and 63A-3-107 .
             352          Section 11. Section 63M-2-401 is enacted to read:
             353     
Part 4. USTAR Reporting and Audit Requirements

             354          63M-2-401. Reporting requirements.
             355          (1) By October 1 of each year, the USTAR governing authority shall submit to the
             356      governor; the Legislature; the Business, Economic Development, and Labor Appropriations
             357      Subcommittee; and the Economic Development and Workforce Services Interim Committee an
             358      annual written report of the operations, activities, programs, and services of the governing
             359      authority and the USTAR initiative for the preceding fiscal year.
             360          (2) For each project, operation, activity, program, or service related to the USTAR
             361      initiative or overseen or funded through the USTAR governing authority, the annual report
             362      shall include:
             363          (a) a description of the project, operation, activity, program, or service;
             364          (b) data selected and used by the governing authority to measure progress,


             365      performance, and scope of the project, operation, activity, program, or service, including
             366      summary data;
             367          (c) a clear description of the methodology for any data in the report that includes an
             368      estimation;
             369          (d) the amount and source of all USTAR initiative funding, including:
             370          (i) funding from legislative appropriations;
             371          (ii) funding procured outside of legislative appropriations, including a separate
             372      accounting of grants or investments contributing to research teams and other activities of the
             373      USTAR initiative from the federal government, private entities, or other sources, and an
             374      explanation of the extent to which:
             375          (A) outside funding was contingent on or leveraged by legislative appropriations; and
             376          (B) outside funding would continue if legislative appropriations were discontinued;
             377          (iii) commercialization revenue, including a separate accounting of:
             378          (A) realized commercialization revenue;
             379          (B) unrealized and expected commercialization revenue; and
             380          (C) commercialization revenue going to other parties attributable to USTAR initiative
             381      funding;
             382          (iv) lease revenue from each building in which the USTAR governing authority holds
             383      title; and
             384          (v) the amount of money deposited with the state treasurer for deposit into the sinking
             385      fund created under Section 63B-1a-301 for debt service on the bonds issued to fund planning,
             386      design, and construction of the research buildings;
             387          (e) all expenses of the USTAR initiative, including:
             388          (i) operational expenses;
             389          (ii) for each employee receiving compensation from USTAR initiative funding,
             390      compensation information, including:
             391          (A) salary expenses, benefit expenses, and travel expenses;
             392          (B) information for each research team employee and each employee of the technology


             393      outreach program that receives compensation directly or indirectly through USTAR initiative
             394      funding; and
             395          (C) information regarding compensation for each employee from sources other than
             396      USTAR initiative funding, including grants and compensation from a university or private
             397      entity;
             398          (iii) for each research team, salary expenses, benefit expenses, travel expenses, and
             399      operations and maintenance expenses;
             400          (iv) operational and maintenance expenses for each building in which the USTAR
             401      governing authority holds title;
             402          (v) operational and maintenance expenses paid for by USTAR initiative funding for
             403      each location that has an established technology outreach program; and
             404          (vi) each grant or other incentive given as a result of the USTAR initiative, including
             405      grants or incentives awarded through the technology outreach program;
             406          (f) the number of jobs and the corresponding salary ranges created by the USTAR
             407      initiative, including the number of jobs where the employee is expected to be employed for at
             408      least one year and earns at least 125% of the prevailing wage of the county where the employee
             409      works;
             410          (g) the name of each business entity receiving a grant or other incentive as a result of
             411      the USTAR initiative, including the outreach program;
             412          (h) a list of business entities that have hired employees as a result of the USTAR
             413      initiative;
             414          (i) the tax revenue generated as a result of the USTAR initiative, with actual revenue
             415      generated clearly separated from potential revenue;
             416          (j) a list of intellectual property assets, including patents, generated by research teams
             417      as a result of the USTAR initiative, including a reasonable estimate of the USTAR initiative's
             418      percentage share of potential commercialization revenue that may be realized from those
             419      assets;
             420          (k) a description of any agreements entered into regarding private equity investment in


             421      the USTAR initiative;
             422          (l) beginning with data from the fiscal year beginning July 1, 2013, historical data from
             423      previous years for comparison with the annual data reported under this Subsection (2);
             424          (m) goals, challenges, and achievements related to the project, operation, activity,
             425      program, or service;
             426          (n) relevant federal and state statutory references and requirements;
             427          (o) contact information of officials knowledgeable and responsible for each project,
             428      operation, activity, program, or service;
             429          (p) other information determined by the USTAR governing authority that:
             430          (i) may be needed, useful, or of historical significance; or
             431          (ii) promotes accountability and transparency for each project, operation, activity,
             432      program, or service with the public and with elected officials;
             433          (q) the written economic development objectives required under Subsection
             434      63M-2-302 (1)(e) and a description of any progress or challenges in meeting the objectives; and
             435          (r) the audit report described in Section 63M-2-402 .
             436          (3) The annual report shall be designed to provide clear, accurate, and accessible
             437      information to the public, the governor, and the Legislature.
             438          (4) The governing authority shall:
             439          (a) submit the annual report in accordance with Section 68-3-14 ; and
             440          (b) make the annual report and previous annual reports accessible to the public by
             441      placing a link to the reports on the USTAR initiative's website.
             442          (5) In addition to the annual written report described in this section:
             443          (a) upon the request of a committee, the USTAR governing authority shall provide
             444      information and progress reports to the Economic Development and Workforce Services
             445      Interim Committee; the Business and Labor Interim Committee; and the Business, Economic
             446      Development, and Labor Appropriations Subcommittee; and
             447          (b) on or before October 1, 2019, and every five years after October 1, 2019, the
             448      USTAR governing authority shall include with the annual report described in this section a


             449      written analysis and recommendations concerning the usefulness of the information required in
             450      the annual report and the ongoing effectiveness of the USTAR initiative, including whether:
             451          (i) the reporting requirements are effective at measuring the performance of the
             452      USTAR initiative;
             453          (ii) the reporting requirements should be modified; and
             454          (iii) the USTAR initiative is beneficial to the state and should continue.
             455          Section 12. Section 63M-2-402 is enacted to read:
             456          63M-2-402. Audit requirements.
             457          (1) Each fiscal year, an audit of the activities of the USTAR initiative shall be made as
             458      described in this section.
             459          (2) (a) As approved by the Legislative Audit Subcommittee, the audit shall be
             460      conducted by:
             461          (i) the legislative auditor; or
             462          (ii) an independent auditor engaged by the legislative auditor.
             463          (b) An independent auditor used under Subsection (2)(a)(ii) may not have a business or
             464      contractual connection, or other connection, with the USTAR initiative or the USTAR
             465      governing authority.
             466          (3) The USTAR governing authority shall pay the costs associated with the annual
             467      audit.
             468          (4) The annual audit shall:
             469          (a) include a verification of the accuracy of the information required to be included in
             470      the annual report described in Section 63M-2-401 ; and
             471          (b) be completed by September 1 of each year.


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