1     
UTAH SCIENCE TECHNOLOGY AND RESEARCH

2     
INITIATIVE AMENDMENTS

3     
2018 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Daniel Hemmert

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House Sponsor: ____________

7     

8     LONG TITLE
9     General Description:
10          This bill modifies provisions of the Utah Science Technology and Research Governing
11     Authority (USTAR) Act.
12     Highlighted Provisions:
13          This bill:
14          ▸     repeals provisions that require USTAR to provide ongoing funding for certain
15     researchers at the University of Utah and Utah State University;
16          ▸     requires USTAR and the Division of Facilities Construction and Management to
17     transfer ownership of a certain research building located on the campus of:
18               •     University of Utah to the University of Utah; and
19               •     Utah State University to Utah State University; and
20          ▸     makes technical changes.
21     Money Appropriated in this Bill:
22          None
23     Other Special Clauses:
24          None
25     Utah Code Sections Affected:
26     AMENDS:
27          63M-2-102, as last amended by Laws of Utah 2016, Chapter 240
28          63M-2-602, as enacted by Laws of Utah 2016, Chapter 240
29          63M-2-802, as last amended by Laws of Utah 2017, Chapter 18
30     REPEALS:
31          63M-2-502, as enacted by Laws of Utah 2016, Chapter 240
32          63M-2-702, as enacted by Laws of Utah 2016, Chapter 240
33          63M-2-704, as enacted by Laws of Utah 2016, Chapter 240
34          63M-2-705, as enacted by Laws of Utah 2016, Chapter 240
35     

36     Be it enacted by the Legislature of the state of Utah:
37          Section 1. Section 63M-2-102 is amended to read:
38          63M-2-102. Definitions.
39          As used in this chapter:
40          (1) "Executive director" means the individual appointed under Subsection
41     63M-2-301(9).
42          (2) "Governing authority" means the Utah Science Technology and Research
43     Governing Authority created in Section 63M-2-301.
44          (3) "Higher education institution" means an institution listed in Section 53B-2-101.
45          [(4) "Principal researcher" means an individual who:]
46          [(a) (i) on May 10, 2016, is employed, alone or as part of a research team, by a research
47     university;]
48          [(ii) before May 10, 2016, received funding from USTAR for some or all of the
49     researcher's startup costs or research university salary;]
50          [(iii) was recruited by a research university to become a member of a research
51     university's faculty; and]
52          [(iv) on or after May 10, 2016, continues to receive USTAR support; or]
53          [(b) (i) is employed on or after May 10, 2016 as a researcher by a higher education
54     institution;]
55          [(ii) receives USTAR support; and]
56          [(iii) is recruited by the governing authority and the higher education institution to
57     become a member of the higher education institution's faculty.]
58          [(5)] (4) "Private entity":
59          (a) means a privately owned corporation, limited liability company, partnership, or
60     other business entity or association; and
61          (b) does not include an individual or a sole proprietorship.
62          [(6)] (5) "Research building" means a building:
63          (a) for which the governing authority holds title on or before July 1, 2017; and
64          (b) that is located on the campus of a research university.
65          [(7)] (6) "Research university" means:
66          (a) the University of Utah; or
67          (b) Utah State University.
68          [(8)] (7) "USTAR" means the Utah Science Technology and Research Initiative created
69     in Section 63M-2-301.
70          [(9) "USTAR researcher" means:]
71          [(a) a principal researcher; or]
72          [(b) an individual, other than a principal researcher, who:]
73          [(i) is employed by a higher education institution; and]
74          [(ii) receives USTAR support.]
75          [(10)] (8) "USTAR support" means assistance provided by USTAR including:
76          (a) financial support;
77          (b) technical assistance;
78          (c) mentoring; and
79          (d) the use of:
80          (i) research or laboratory space controlled by USTAR in a building other than a
81     research building; and
82          (ii) equipment in space described in Subsection [(10)] (8)(d)(i).
83          Section 2. Section 63M-2-602 is amended to read:
84          63M-2-602. Lease agreement for a research building -- Requirements for lease
85     agreement.
86          [(1) The governing authority shall enter into a written lease agreement with a research
87     university to lease to the research university a research building constructed on the research
88     university's campus.]
89          [(2) A lease agreement under Subsection (1) shall:]
90          [(a) require the research university to pay the ongoing operation and maintenance
91     expenses associated with the research building, including for any infrastructure in the research
92     building; and]
93          [(b) subject to the reporting requirements described in Section 63M-2-705, permit the
94     research university to use or rent space within the research building for research other than
95     research receiving USTAR support, including research by a private entity.]
96          The governing authority and the Division of Facilities Construction and Management
97     shall, on or before October 1, 2018, transfer ownership and title of the research building
98     located on the campus of:
99          (1) the University of Utah to the University of Utah; and
100          (2) Utah State University to Utah State University.
101          Section 3. Section 63M-2-802 is amended to read:
102          63M-2-802. USTAR annual report.
103          (1) (a) On or before October 1 of each year, the governing authority shall submit, in
104     accordance with Section 68-3-14, an annual written report for the preceding fiscal year to:
105          (i) the Business, Economic Development, and Labor Appropriations Subcommittee;
106          (ii) the Economic Development and Workforce Services Interim Committee;
107          (iii) the Business and Labor Interim Committee; and
108          (iv) the governor.
109          (b) An annual report under Subsection (1)(a) is subject to modification as provided in
110     Subsection (5) after an audit described in Section 63M-2-803 is released.
111          (2) An annual report described in Subsection (1) shall include:
112          (a) information reported to the governing authority[:(i) by an institution of higher
113     education under Section 63M-2-702;     (ii)] through the survey described in Section 63M-2-703;
114     [and]
115          [(iii) by a research university, under Section 63M-2-705;]
116          (b) a clear description of the methodology used to arrive at any information in the
117     report that is based on an estimate;
118          (c) starting with fiscal year 2017 data as a baseline, data from previous years for
119     comparison with the annual data reported under this Subsection (2);
120          (d) relevant federal and state statutory references and requirements;
121          (e) contact information for the executive director;
122          (f) other information determined by the governing authority that promotes
123     accountability and transparency; and
124          (g) the written economic development objectives required under Subsection
125     63M-2-302(1)(e) and a description of progress or challenges in meeting the objectives.
126          (3) The governing authority shall design the annual report to provide clear, accurate,
127     and accessible information to the public, the governor, and the Legislature.
128          (4) The governing authority shall:
129          (a) submit the annual report in accordance with Section 68-3-14; and
130          (b) place a link to the annual report and previous annual reports on USTAR's website.
131          (5) Following the completion of an annual audit described in Section 63M-2-803, the
132     governing authority shall:
133          (a) publicly issue a revised annual report that:
134          (i) addresses the audit;
135          (ii) responds to audit findings; and
136          (iii) incorporates any revisions to the annual report based on audit findings;
137          (b) publish the revised annual report on USTAR's website, with a link to the audit; and
138          (c) submit, in accordance with Section 68-3-14, written notification of any revisions of
139     the annual report to:
140          (i) the Business, Economic Development, and Labor Appropriations Subcommittee;
141          (ii) the Economic Development and Workforce Services Interim Committee;
142          (iii) the Business and Labor Interim Committee; and
143          (iv) the governor.
144          (6) In addition to the annual written report described in this section, the governing
145     authority shall:
146          (a) provide information and progress reports to a legislative committee upon request;
147     and
148          (b) on or before October 1, 2019, and every five years after October 1, 2019, include
149     with the annual report described in this section a written analysis and recommendations
150     concerning the usefulness of the information required in the annual report and USTAR's
151     ongoing effectiveness, including whether:
152          (i) the reporting requirements are effective at measuring USTAR's performance;
153          (ii) the reporting requirements should be modified; and
154          (iii) USTAR is beneficial to the state and should continue.
155          Section 4. Repealer.
156          This bill repeals:
157          Section 63M-2-502, Principal researchers -- Agreement requirements --
158     Discontinuing funding.
159          Section 63M-2-702, Reporting requirements for higher education institutions.
160          Section 63M-2-704, Reporting on licensed or acquired intellectual property.
161          Section 63M-2-705, Reporting on use of research buildings.




Legislative Review Note
Office of Legislative Research and General Counsel