S.B. 35 Enrolled

RELATIONSHIPS WITH VENTURE CAPITAL ENTITIES
2005 GENERAL SESSION
STATE OF UTAH
Sponsor: David L. Thomas

LONG TITLE
General Description:
This bill clarifies relationships between higher education institutions and venture
capital entities.
Highlighted Provisions:
This bill:
. provides that a state institution of higher education may enter into a business
relationship or dealing with a private seed or venture capital partnership or entity;
and
. provides that the business relationship or dealing does not preclude the private
entity or partnership from receiving benefits from a venture capital program
authorized or sanctioned by state law.
Monies Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
53B-2-101, as last amended by Chapter 7, Laws of Utah 2000

Be it enacted by the Legislature of the state of Utah:
Section 1. Section 53B-2-101 is amended to read:
53B-2-101. Institutions of higher education -- Corporate bodies -- Powers.
(1) The following institutions of higher education are bodies politic and corporate with

perpetual succession and with all rights, immunities, and franchises necessary to function as
such:
(a) the University of Utah;
(b) Utah State University;
(c) Weber State University;
(d) Southern Utah University;
(e) Snow College;
(f) Dixie State College of Utah;
(g) the College of Eastern Utah;
(h) Utah Valley State College; and
(i) Salt Lake Community College.
(2) (a) Each institution may have and use a corporate seal and may, subject to Section
53B-20-103 , take, hold, lease, sell, and convey real and personal property as the interest of the
institution requires.
(b) Each institution is vested with all the property, franchises, and endowments of, and is
subject to, all the contracts, obligations, and liabilities of its respective predecessor.
(c) (i) Each institution may enter into business relationships or dealings with private seed
or venture capital entities or partnerships consistent with Utah Constitution Article VI, Section
29, Subsection (2).
(ii) A business dealing or relationship entered into under Subsection (2)(c)(i) does not
preclude the private entity or partnership from participating in or receiving benefits from a
venture capital program authorized or sanctioned by the laws of this state, unless otherwise
precluded by the specific law that authorizes or sanctions the program.
(iii) Subsections (2)(c)(i) and (ii) also apply to the Utah College of Applied Technology
created in Title 53B, Chapter 2a, Utah College of Applied Technology.