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S.B. 112

             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 award at least
             15      50 doctoral degrees per year across at least 15 different disciplines;
             16          .    requires the return of economic development Centers of Excellence grant moneys
             17      from a higher education institution if the technology that is developed from grant
             18      proceeds is licensed to a licensee that does not maintain a manufacturing or service
             19      location in the state from which the technology is exploited or transfers the
             20      manufacturing or service location out of state within a five-year period after the
             21      issuance of the license; and
             22          .    makes certain technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:


             28      AMENDS:
             29          63-38f-701, as renumbered and amended by Chapter 148, Laws of Utah 2005
             30          63-38f-704, as renumbered and amended by Chapter 148, Laws of Utah 2005
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 63-38f-701 is amended to read:
             34           63-38f-701. Purpose.
             35          (1) (a) The Legislature recognizes that the growth of new industry and expansion of
             36      existing industry requires a strong technology base, new ideas, concepts, innovations, and
             37      prototypes.
             38          (b) These generally come from strong research colleges and universities.
             39          (c) Technical research in Utah's colleges and universities should be enhanced and
             40      expanded, particularly in those areas targeted by the state for economic development.
             41          (d) Most states are enhancing their research base by direct funding, usually on a
             42      matching basis.
             43          (e) The purpose of this part is to catalyze and enhance the growth of these technologies
             44      by encouraging interdisciplinary research activities in targeted areas.
             45          (f) The Legislature recognizes that one source of funding is in matching state funds
             46      with federal funds and industrial support to provide the needed new technologies.
             47          (2) The Legislature recommends that the governor consider the allocation of economic
             48      development funds for Centers of Excellence to be matched by industry and federal grants on at
             49      least a two-for-one basis for colleges and universities in the state that award at least 50 doctoral
             50      degrees per year across at least 15 different disciplines.
             51          (3) (a) The Legislature recommends that the funds be allocated on a competitive basis
             52      to the various colleges and universities in the state.
             53          (b) The funds made available should be used to support interdisciplinary research in
             54      specialized Centers of Excellence in technologies that are considered to have potential for
             55      economic development in this state.
             56          Section 2. Section 63-38f-704 is amended to read:
             57           63-38f-704. Administration -- Grants.
             58          (1) [This part shall be administered by the] The Governor's Office of Economic


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




Legislative Review Note
    as of 12-13-05 9:04 AM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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