S.B. 112 Enrolled

1

CENTERS OF EXCELLENCE AMENDMENTS
2 2006 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Thomas V. Hatch
5 House Sponsor: Peggy Wallace
6
7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to the Centers of Excellence Act.
10 Highlighted Provisions:
11 This bill:
12 . recommends that the governor consider the allocation of economic development
13 funds for Centers of Excellence to be matched by industry and federal grants on at
14 least a two-for-one basis for colleges and universities in the state that offer any
15 doctoral degrees;
16 . requires the Governor's Office of Economic Development to develop a process to
17 determine whether to require the return of economic development Centers of
18 Excellence grant moneys from a higher education institution if the technology that
19 is developed from grant proceeds is licensed to a licensee that does not maintain a
20 manufacturing or service location in the state from which the technology is
21 exploited or transfers the manufacturing or service location out of state within a
22 five-year period after the issuance of the license; and
23 . makes certain technical changes.
24 Monies Appropriated in this Bill:
25 None
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:

30 63-38f-701, as renumbered and amended by Chapter 148, Laws of Utah 2005
31 63-38f-704, as renumbered and amended by Chapter 148, Laws of Utah 2005
32
33 Be it enacted by the Legislature of the state of Utah:
34 Section 1. Section 63-38f-701 is amended to read:
35 63-38f-701. Purpose.
36 (1) (a) The Legislature recognizes that the growth of new industry and expansion of
37 existing industry requires a strong technology base, new ideas, concepts, innovations, and
38 prototypes.
39 (b) These generally come from strong research colleges and universities.
40 (c) Technical research in Utah's colleges and universities should be enhanced and
41 expanded, particularly in those areas targeted by the state for economic development.
42 (d) Most states are enhancing their research base by direct funding, usually on a
43 matching basis.
44 (e) The purpose of this part is to catalyze and enhance the growth of these technologies
45 by encouraging interdisciplinary research activities in targeted areas.
46 (f) The Legislature recognizes that one source of funding is in matching state funds
47 with federal funds and industrial support to provide the needed new technologies.
48 (2) The Legislature recommends that the governor consider the allocation of economic
49 development funds for Centers of Excellence to be matched by industry and federal grants on at
50 least a two-for-one basis for colleges and universities in the state that offer any doctoral
51 degrees.
52 (3) (a) The Legislature recommends that the funds be allocated on a competitive basis
53 to the various colleges and universities in the state.
54 (b) The funds made available should be used to support interdisciplinary research in
55 specialized Centers of Excellence in technologies that are considered to have potential for
56 economic development in this state.
57 Section 2. Section 63-38f-704 is amended to read:

58 63-38f-704. Administration -- Grants.
59 (1) [This part shall be administered by the] The Governor's Office of Economic
60 Development shall administer this part.
61 (2) (a) The office may award grants to the various colleges and universities in the state
62 for the purposes of this part.
63 (b) The governor's Office of Economic Development shall develop a process to
64 determine whether a college or university that receives a grant under this part must return the
65 grant proceeds if the technology that is developed with the grant proceeds is licensed to a
66 licensee that:
67 (i) does not maintain a manufacturing or service location in the state from which the
68 licensee or a sublicensee exploits the technology; or
69 (ii) initially maintains a manufacturing or service location in the state from which the
70 licensee or a sublicensee exploits the technology, but within five years after issuance of the
71 license the licensee or sublicensee transfers the manufacturing or service location for the
72 technology to a location out of the state.
73 (3) (a) Funding allocations shall be made by the office with the advice of the State
74 Advisory Council for Science and Technology and the board.
75 (b) Each proposal shall receive the best available outside review.
76 (4) (a) In considering each proposal, the office shall weigh technical merit, the level of
77 matching funds from private and federal sources, and the potential for job creation and
78 economic development.
79 (b) Proposals or consortia that combine and coordinate related research at two or more
80 colleges and universities shall be encouraged.
81 (5) The State Advisory Council on Science and Technology shall review the activities
82 and progress of individual centers on a regular basis and assist the office in preparing an annual
83 report on the accomplishments and direction of the Centers of Excellence Program.