S.B. 263 Enrolled
7 LONG TITLE
8 General Description:
9 This bill modifies the Technology Commercialization and Innovation Act by allowing
10 small businesses to apply for grants and loans under the act.
11 Highlighted Provisions:
12 This bill:
13 . defines small business;
14 . allows small businesses, in addition to institutions of higher education, to apply for
15 Technology Commercialization and Innovation Program grants and loans;
16 . provides for rulemaking by the Governor's Office of Economic Development;
17 . removes the State Advisory Council for Science and Technology from the funding
18 allocation process; and
19 . makes technical changes.
20 Money Appropriated in this Bill:
22 Other Special Clauses:
23 This bill takes effect on July 1, 2014.
24 This bill coordinates with S.B. 31, State Agency Reporting Amendments, by providing
25 superseding amendments.
26 Utah Code Sections Affected:
28 63M-1-702 , as last amended by Laws of Utah 2011, Chapter 392
29 63M-1-703 , as last amended by Laws of Utah 2011, Chapter 392
30 63M-1-704 , as last amended by Laws of Utah 2011, Chapter 392
31 Utah Code Sections Affected by Coordination Clause:
32 63M-1-704 , as last amended by Laws of Utah 2011, Chapter 392
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 63M-1-702 is amended to read:
36 63M-1-702. Purpose.
37 (1) (a) The Legislature recognizes that the growth of new industry and expansion of
38 existing industry requires a strong technology base, new ideas, concepts, innovations, and
40 (b) [
41 technological innovation generated by strong research [
42 higher education and by small businesses.
43 (c) Technical research in Utah's [
44 education should be enhanced and expanded, particularly in those areas targeted by the state for
45 economic development.
46 (d) Most states [
47 on a matching basis.
48 (e) The purpose of this part is to catalyze and enhance the growth of these technologies
50 (i) encouraging interdisciplinary research activities in targeted areas [
51 (ii) facilitating the transition of these technologies out of the [
52 education environment into industry where the technologies can be used to enhance job
54 (iii) supporting the commercialization of technologies developed by small business to
55 enhance job creation.
56 (f) The Legislature recognizes that one source of funding is [
57 state funds with federal funds and industrial support to provide and develop [
59 (2) The Legislature recommends that the governor consider matching the allocation of
60 economic development funds for the Technology Commercialization and Innovation Program
63 (3) (a) The Legislature recommends that the funds be allocated on a competitive basis:
64 (i) to the various [
66 (ii) to companies working in partnership with [
67 higher education to commercialize their technologies[
68 (iii) to small businesses that are developing promising technologies.
69 (b) The funds made available should be used to support:
70 (i) interdisciplinary research in the Technology Commercialization and Innovation
71 Program in technologies that are considered to have potential for economic development in
73 institutions of higher education and into industry[
74 (ii) small businesses in commercializing their promising technologies that have the
75 potential to increase economic development in the state.
76 Section 2. Section 63M-1-703 is amended to read:
77 63M-1-703. Definitions.
78 As used in this part:
79 (1) "Business team consultant" means an experienced technology executive,
80 entrepreneur, or business person who:
81 (a) is recruited by the office through a request for proposal process to work directly
82 with a college or university in the Technology Commercialization and Innovation Program; and
83 (b) works with the institution to facilitate the transition of its technology into industry
84 by assisting the institution in developing strategies, including spin out strategies when
85 appropriate, and go-to-market plans, and identifying and working with potential customers and
87 (2) "Direct license" means [
88 company and a Utah [
89 technology developed at the [
90 intent of commercializing the technology or facilitating its transition into industry.
91 (3) "Institution of higher education" means:
92 (a) a state institution of higher education as defined in Section 53B-3-102 ; or
93 (b) a private institution of higher education in the state accredited by a regional or
94 national accrediting agency recognized by the United States Department of Education.
96 (a) a company that executes or is in the process of executing a direct license; or
97 (b) a sublicensee of the technology from a direct license.
98 (5) "Small business" means a business that:
99 (a) meets the size standards for the business's industry classification as identified by the
100 United States Small Business Administration in 13 C.F.R. Sec. 121.201;
101 (b) is organized for profit;
102 (c) operates primarily within the United States;
103 (d) has a principal place of business in the state, including a manufacturing or service
104 location; and
105 (e) is independently owned and operated.
108 (a) a federal- and industry-supported cooperative research and development
110 (b) a federal- and state-supported program for funding technologically innovative small
112 Section 3. Section 63M-1-704 is amended to read:
113 63M-1-704. Administration -- Grants and loans.
114 (1) The Governor's Office of Economic Development shall administer this part.
115 (2) (a) (i) The office may award Technology Commercialization and Innovation
116 Program grants or issue loans [
118 (A) an institution of higher education;
119 (B) a licensee; or
120 (C) a small business.
121 (ii) If loans are issued under Subsection (2)(a)(i), the Division of Finance may set up a
122 fund or account as necessary for the proper accounting of the loans.
123 (b) [
124 with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office shall make rules
125 for a process to determine whether [
126 that receives a grant under this part must return the grant proceeds or a portion of the grant
127 proceeds if the technology that is developed with the grant proceeds is licensed to a licensee
129 (i) does not maintain a manufacturing or service location in the state from which the
130 licensee or a sublicensee exploits the technology; or
131 (ii) initially maintains a manufacturing or service location in the state from which the
132 licensee or a sublicensee exploits the technology, but within five years after issuance of the
133 license the licensee or sublicensee transfers the manufacturing or service location for the
134 technology to a location out of the state.
135 (c) A repayment by [
136 proceeds or a portion of the grant proceeds [
137 of the license established between the licensee and the [
138 higher education.
139 (d) (i) [
140 grant under this part shall return the grant proceeds or a portion of the grant proceeds to the
141 office if the [
142 (A) does not maintain a manufacturing or service location in the state from which the
144 (B) initially maintains a manufacturing or service location in the state from which the
146 the [
147 out-of-state location.
152 (ii) A repayment by an applicant shall be prorated based on the number of full years the
153 applicant operated in the state from the date of the awarded grant.
154 (iii) A repayment by a licensee that receives a grant may only come from the proceeds
155 of the license to that licensee.
156 (3) (a) Funding allocations shall be made by the office with the advice of [
158 (b) Each proposal shall receive the best available outside review.
159 (4) (a) In considering each proposal, the office shall weigh technical merit, the level of
160 matching funds from private and federal sources, and the potential for job creation and
161 economic development.
162 (b) Proposals or consortia that combine and coordinate related research at two or more
164 (5) The [
165 activities and progress of grant recipients on a regular basis and [
167 on the accomplishments and direction of the Technology Commercialization and Innovation
169 Section 4. Effective date.
170 This bill takes effect on July 1, 2014.
171 Section 5. Coordinating S.B. 263 with S.B. 31 -- Superseding amendments.
172 If this S.B. 263 and S.B. 31, State Agency Reporting Amendments, both pass and
173 become law, as of July 1, 2014, it is the intent of the Legislature that the amendments to
174 Section 63M-1-704 in this bill supersede the amendments to Section 63M-1-704 in S.B. 31,
175 when the Office of Legislative Research and General Counsel prepares the Utah Code database
176 for publication.
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