1     
USTAR AMENDMENTS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Scott D. Sandall

5     
House Sponsor: Tim Quinn

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Utah Science Technology and Research
10     Initiative (USTAR).
11     Highlighted Provisions:
12          This bill:
13          ▸     modifies provisions of the Workforce Development Restricted Account;
14          ▸     dissolves the USTAR Governing Authority;
15          ▸     puts the program director of USTAR under the supervision of the executive director
16     of the Governor's Office of Economic Development (GOED);
17          ▸     modifies provisions related to grants offered by USTAR;
18          ▸     modifies the reporting requirements of USTAR, including requiring the reporting of
19     a plan to move USTAR programs to GOED; and
20          ▸     makes technical and conforming changes.
21     Money Appropriated in this Bill:
22          This bill appropriates in fiscal year 2020:
23          ▸     to the Utah Science Technology and Research Governing Authority -- Support
24     Programs, as an ongoing appropriation:
25               •     from the General Fund, ($3,282,600); and
26               •     from Dedicated Credits Revenue, ($16,100);
27          ▸     to the Utah Science Technology and Research Governing Authority -- Grant
28     Programs, as a one-time appropriation:
29               •     from the General Fund, ($4,500,000);

30          ▸     to the Governor's Office of Economic Development -- Pass-Through, as a one-time
31     appropriation:
32               •     from the General Fund, $1,705,900;
33          ▸     to the Governor's Office of Economic Development -- Pass-Through, as an ongoing
34     appropriation:
35               •     from the General Fund, $385,600; and
36               •     from Dedicated Credits Revenue, $16,100;
37          ▸     to the General Fund Restricted -- Workforce Development Restricted Account, as
38     an ongoing appropriation:
39               •     from the General Fund, $2,897,000; and
40          ▸     to the General Fund Restricted -- Workforce Development Restricted Account, as a
41     one-time appropriation:
42               •     from the General Fund, $2,794,100.
43     Other Special Clauses:
44          None
45     Utah Code Sections Affected:
46     AMENDS:
47          13-1-14, as enacted by Laws of Utah 2018, Chapter 453
48          63M-2-102, as last amended by Laws of Utah 2016, Chapter 240
49          63M-2-301, as last amended by Laws of Utah 2016, Chapter 240
50          63M-2-302, as repealed and reenacted by Laws of Utah 2016, Chapter 240
51          63M-2-302.5, as last amended by Laws of Utah 2016, Chapter 240
52          63M-2-304, as enacted by Laws of Utah 2018, Chapter 427
53          63M-2-502, as last amended by Laws of Utah 2018, Chapter 453
54          63M-2-503, as enacted by Laws of Utah 2016, Chapter 240
55          63M-2-504, as enacted by Laws of Utah 2016, Chapter 240
56          63M-2-703, as enacted by Laws of Utah 2016, Chapter 240
57          63M-2-802, as last amended by Laws of Utah 2018, Chapter 453

58          63M-2-803, as renumbered and amended by Laws of Utah 2016, Chapter 240
59     

60     Be it enacted by the Legislature of the state of Utah:
61          Section 1. Section 13-1-14 is amended to read:
62          13-1-14. Workforce Development Restricted Account.
63          (1) There is created a restricted account within the General Fund known as the
64     Workforce Development Restricted Account.
65          (2) The restricted account shall be administered to provide funding for collaborative
66     projects that support:
67          (a) economic development in the state;
68          (b) workforce development in the state; and
69          (c) [the support of] scientific and technical innovation and entrepreneurship in the
70     state[; and].
71          [(d) the programs and duties of the governing authority in accordance with this
72     chapter.]
73          (3) The state treasurer shall invest the money in the restricted account according to the
74     procedures and requirements of Title 51, Chapter 7, State Money Management Act, except that
75     interest and other earnings derived from the restricted account shall be deposited into the
76     restricted account.
77          (4) The restricted account shall be funded by appropriations made to the account by the
78     Legislature.
79          (5) Subject to appropriation and direction from the Legislature, account money may be
80     used in accordance with this [part] section.
81          Section 2. Section 63M-2-102 is amended to read:
82          63M-2-102. Definitions.
83          As used in this chapter:
84          [(1) "Executive director" means the individual appointed under Subsection
85     63M-2-301(9).]

86          [(2)] (1) "Governing authority" means the Utah Science Technology and Research
87     Governing Authority created in Section 63M-2-301.
88          [(3)] (2) "Higher education institution" means an institution listed in Section
89     53B-2-101.
90          [(4)] (3) "Principal researcher" means an individual who:
91          (a) (i) on May 10, 2016, is employed, alone or as part of a research team, by a research
92     university;
93          (ii) before May 10, 2016, received funding from USTAR for some or all of the
94     researcher's startup costs or research university salary;
95          (iii) was recruited by a research university to become a member of a research
96     university's faculty; and
97          (iv) on or after May 10, 2016, continues to receive USTAR support; or
98          (b) (i) is employed on or after May 10, 2016 as a researcher by a higher education
99     institution;
100          (ii) receives USTAR support; and
101          (iii) is recruited by the governing authority and the higher education institution to
102     become a member of the higher education institution's faculty.
103          [(5)] (4) "Private entity":
104          (a) means a privately owned corporation, limited liability company, partnership, or
105     other business entity or association; and
106          (b) does not include an individual or a sole proprietorship.
107          (5) "Program director" means the individual appointed under Subsection
108     63M-2-301(9).
109          (6) "Research building" means a building:
110          (a) for which the governing authority holds title; and
111          (b) that is located on the campus of a research university.
112          (7) "Research university" means:
113          (a) the University of Utah; or

114          (b) Utah State University.
115          (8) "USTAR" means the Utah Science Technology and Research Initiative created in
116     Section 63M-2-301.
117          (9) "USTAR researcher" means:
118          (a) a principal researcher; or
119          (b) an individual, other than a principal researcher, who:
120          (i) is employed by a higher education institution; and
121          (ii) receives USTAR support.
122          (10) "USTAR support" means assistance provided by USTAR including:
123          (a) financial support;
124          (b) technical assistance;
125          (c) mentoring; and
126          (d) the use of:
127          (i) research or laboratory space controlled by USTAR in a building other than a
128     research building; and
129          (ii) equipment in space described in Subsection (10)(d)(i).
130          Section 3. Section 63M-2-301 is amended to read:
131          63M-2-301. The Utah Science Technology and Research Initiative -- Governing
132     authority -- Program director.
133          (1) There is created the Utah Science Technology and Research Initiative.
134          (2) [To] Subject to Subsection (10), to oversee USTAR, there is created the Utah
135     Science Technology and Research Governing Authority consisting of:
136          (a) the state treasurer or the state treasurer's designee;
137          (b) the executive director of the Governor's Office of Economic Development;
138          (c) three members appointed by the governor, with the consent of the Senate;
139          (d) two members appointed by the president of the Senate;
140          (e) two members appointed by the speaker of the House of Representatives; and
141          (f) one member appointed by the commissioner of higher education.

142          (3) (a) The eight appointed members under Subsections (2)(c) through (f) shall serve
143     four-year staggered terms.
144          (b) An appointed member under Subsection (2)(c), (d), (e), or (f):
145          (i) may not serve more than two full consecutive terms; and
146          (ii) may be removed from the governing authority for any reason before the member's
147     term is completed:
148          (A) at the discretion of the original appointing authority; and
149          (B) after the original appointing authority consults with the governing authority.
150          (4) A vacancy on the governing authority in an appointed position under Subsection
151     (2)(c), (d), (e), or (f) shall be filled for the unexpired term by the appointing authority in the
152     same manner as the original appointment.
153          (5) (a) Except as provided in Subsection (5)(b), the governor, with the consent of the
154     Senate, shall select the chair of the governing authority to serve a one-year term.
155          (b) The governor may extend the term of a sitting chair of the governing authority
156     without the consent of the Senate.
157          (c) The executive director of the Governor's Office of Economic Development shall
158     serve as the vice chair of the governing authority.
159          (6) The governing authority shall meet at least six times each year and may meet more
160     frequently at the request of a majority of the members of the governing authority.
161          (7) Five members of the governing authority are a quorum.
162          (8) A member of the governing authority may not receive compensation or benefits for
163     the member's service, but may receive per diem and travel expenses as allowed in:
164          (a) Section 63A-3-106;
165          (b) Section 63A-3-107; and
166          (c) rules made by the Division of Finance:
167          (i) pursuant to Sections 63A-3-106 and 63A-3-107; and
168          (ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
169          (9) (a) [After consultation with the governing authority, the] The governor, with the

170     consent of the Senate, [shall] may appoint a [full-time executive] program director to [provide
171     staff support for the governing authority] oversee USTAR.
172          (b) The [executive] program director is an at-will employee who may be terminated
173     with or without cause by[:] the governor or the executive director of the Governor's Office of
174     Economic Development.
175          [(i) the governor; or]
176          [(ii) majority vote of the governing authority.]
177          (10) On July 1, 2019, the governing authority is dissolved and the program director is
178     under the supervision of the executive director of the Governor's Office of Economic
179     Development.
180          Section 4. Section 63M-2-302 is amended to read:
181          63M-2-302. USTAR powers and duties.
182          [(1) The governing authority shall:]
183          (1) Before July 1, 2019, the governing authority shall, and on or after July 1, 2019, the
184     program director and the executive director of the Governor's Office of Economic
185     Development shall:
186          (a) ensure that funds appropriated to USTAR are used appropriately, effectively, and
187     efficiently in accordance with this chapter;
188          (b) in cooperation with a research university's administration, work to expand research
189     at the research university;
190          (c) enhance technology transfer and commercialization of research and technology
191     developed at a higher education institution to create high-quality jobs and new industries in the
192     private sector in the state;
193          (d) ensure that USTAR programs do not duplicate existing or planned programs of
194     other state agencies;
195          (e) establish written economic development objectives for USTAR that are measurable
196     and verifiable;
197          (f) consider input from the Governor's Office of Economic Development and higher

198     education institutions;
199          (g) establish and administer a grant program, as provided in Section 63M-2-503, and
200     provide USTAR support, as provided in Section 63M-2-504, consistent with and to further
201     economic development objectives that [the governing authority] USTAR establishes; and
202          (h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
203     make rules to implement this chapter.
204          [(2) The governing authority may:]
205          (2) Before July 1, 2019, the governing authority may, and on or after July 1, 2019, the
206     program director and the executive director of the Governor's Office of Economic
207     Development may:
208          (a) in addition to receiving money appropriated by the Legislature, receive
209     contributions to USTAR from any source, in the form of money, property, labor, or other thing
210     of value;
211          (b) subject to restrictions imposed by a donor or legislative appropriation, allocate
212     money for programs and activities described in this chapter;
213          (c) enter into an agreement necessary to obtain private equity investment in USTAR;
214          (d) charge and collect rent for space in a facility or building that USTAR controls;
215          (e) in fulfilling [the governing authority's] USTAR's duties and responsibilities under
216     this chapter, collaborate with:
217          (i) the Governor's Office of Economic Development and other state agencies with an
218     interest in economic development; and
219          (ii) private entities with an interest in economic development; and
220          (f) delegate powers and duties to the executive director.
221          [(3) A state agency, higher education institution, or political subdivision with which
222     the governing authority seeks to collaborate in fulfilling the governing authority's duties under
223     this chapter shall cooperate with the governing authority as reasonably necessary to enable the
224     governing authority to fulfill its duties under this chapter.]
225          Section 5. Section 63M-2-302.5 is amended to read:

226          63M-2-302.5. USTAR requirements.
227          [The governing authority] USTAR is subject to the requirements of an executive branch
228     agency and is:
229          (1) an agency for purposes of Title 63J, Chapter 1, Budgetary Procedures Act;
230          (2) an executive branch procurement unit for purposes of Title 63G, Chapter 6a, Utah
231     Procurement Code;
232          (3) a governmental entity for purposes of Title 63G, Chapter 2, Government Records
233     Access and Management Act; and
234          (4) a public body for purposes of Title 52, Chapter 4, Open and Public Meetings Act.
235          Section 6. Section 63M-2-304 is amended to read:
236          63M-2-304. Background checks for employees.
237          (1) As used in this section, "bureau" means the Bureau of Criminal Identification
238     created in Section 53-10-201.
239          (2) Beginning July 1, 2018, [the governing authority] USTAR:
240          (a) shall require all applicants for Schedule A positions, in accordance with Section
241     67-19-15, to submit to a fingerprint-based local, regional, and national criminal history
242     background check and ongoing monitoring as a condition of employment; and
243          (b) may require applicants for time limited positions to submit to a fingerprint-based,
244     local, regional, and national criminal history background check and ongoing monitoring as a
245     condition of employment if the applicant, as an employee:
246          (i) will interact with children, or vulnerable adults as defined in Section 62A-2-120; or
247          (ii) may have access to sensitive personal and financial information.
248          (3) Each individual in a position listed in Subsection (2) shall provide a completed
249     fingerprint card to [the governing authority] USTAR upon request.
250          (4) The [governing authority] program director shall require that an individual required
251     to submit to a background check under Subsection (3) provide a signed waiver on a form
252     provided by [the governing authority] USTAR that meets the requirements of Subsection
253     53-10-108(4).

254          (5) For a noncriminal justice background search and registration in accordance with
255     Subsection 53-10-108(13), [the governing authority] USTAR shall submit to the bureau:
256          (a) the applicant's personal identifying information and fingerprints for a criminal
257     history search of applicable local, regional, and national databases; and
258          (b) a request for all information received as a result of the local, regional, and
259     nationwide background check.
260          (6) [The governing authority] USTAR is responsible for the payment of all fees
261     required by Subsection 53-10-108(15) and any fees required to be submitted to the Federal
262     Bureau of Investigation by the bureau.
263          (7) [The governing authority] USTAR may make rules in accordance with Title 63G,
264     Chapter 3, Utah Administrative Rulemaking Act, that:
265          (a) determine how [the governing authority] USTAR will assess the employment status
266     of an individual upon receipt of background information; and
267          (b) identify the appropriate privacy risk mitigation strategy to be used in accordance
268     with Subsection 53-10-108(13)(b).
269          Section 7. Section 63M-2-502 is amended to read:
270          63M-2-502. Principal researchers -- Agreement requirements -- Discontinuing
271     funding.
272          (1) Subject to Subsection (6) and legislative appropriation, the governing authority
273     shall:
274          (a) provide funding to help a research university honor its commitments to principal
275     researchers employed by the research university; and
276          (b) give priority to funding provided under Subsection (1)(a).
277          (2) The governing authority shall enter into a written agreement with a higher
278     education institution that employs a principal researcher:
279          (a) establishing performance standards and expectations for a principal researcher; and
280          (b) requiring the higher education institution to require a principal researcher to comply
281     with reporting requirements set forth in Section 63M-2-702.

282          (3) (a) A principal researcher may not be hired on or after May 10, 2016 without the
283     approval of the governing authority and the higher education institution.
284          (b) A higher education institution that enters into or renews an agreement with a
285     principal researcher on or after May 10, 2016 shall include in the agreement:
286          (i) a specific time period for the commitment of USTAR funding;
287          (ii) the amount of USTAR funding committed to the higher education institution for
288     the principal researcher, specifying the purpose of the funding;
289          (iii) an acknowledgment that the principal researcher understands and agrees to the
290     reporting requirements and performance standards under this chapter; and
291          (iv) the governing authority's written approval of the terms of the new or renewed
292     agreement.
293          (4) The governing authority may not allocate money to a higher education institution
294     for a principal researcher unless the higher education institution provides the reporting required
295     under Section 63M-2-702.
296          (5) The governing authority may discontinue allocating money to a higher education
297     institution for a principal researcher if the governing authority and the president of the higher
298     education institution employing the principal researcher agree in writing that:
299          (a) the principal researcher:
300          (i) fails to meet the performance standards and expectations established under
301     Subsection (2)(a);
302          (ii) receives a reasonable opportunity to remedy the failure to meet performance
303     standards and expectations; and
304          (iii) fails to remedy the failure to meet performance standards and expectations; and
305          (b) under the circumstances, discontinuing USTAR funding to the higher education
306     institution for the principal researcher is appropriate and justified.
307          (6) Beginning on July 1, 2018, and subject to Subsection (7), USTAR may not provide
308     funding to help a research university honor its commitments to principal researchers employed
309     by the research university.

310          (7) (a) Beginning on July 1, 2019, and until December 31, 2019, USTAR may liquidate
311     funds from one or more escrow accounts that were created before July 1, 2018, related to a
312     research university's commitments to principal researchers, and provide the funds to a research
313     university as previously agreed in a written agreement entered into before July 1, 2018.
314          (b) On January 1, 2020, 66.6% of any money left in an escrow account described in
315     Subsection (7)(a) shall be transferred by USTAR to the University of Utah, and 33.4% of any
316     money left in an escrow account described in Subsection (7)(a) shall be transferred by USTAR
317     to Utah State University.
318          Section 8. Section 63M-2-503 is amended to read:
319          63M-2-503. USTAR grant programs.
320          (1) [The governing authority] USTAR shall establish at least one competitive grant
321     program that:
322          (a) is designed to:
323          (i) address market gaps in technology development in the state; or
324          (ii) facilitate research and development of promising technologies;
325          (b) does not overlap with or duplicate other state funded programs; and
326          (c) offers grants, on a competitive basis, to:
327          (i) researchers employed by higher education institutions;
328          (ii) private entities; or
329          (iii) partnerships between researchers employed by higher education institutions and
330     private entities.
331          (2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
332     [the governing authority] USTAR shall make rules that describe, for each grant program:
333          (a) the purpose;
334          (b) eligibility criteria to receive a grant;
335          (c) how [the governing authority] USTAR determines which proposals receive grants;
336          (d) reporting requirements in accordance with Part 7, Reporting by Recipients of
337     USTAR Support; and

338          (e) other information [the governing authority] USTAR determines is necessary or
339     appropriate.
340          (3) [The governing authority] USTAR:
341          (a) shall solicit proposals for each grant program; and
342          (b) may, subject to legislative appropriation and Subsection 63M-2-502(1)(b), award
343     grants for each program.
344          (4) In evaluating a grant proposal received in response to a solicitation under this
345     section, [the governing authority] USTAR shall consider, as applicable:
346          (a) the extent to which the planned research has the potential for commercialization;
347          (b) the market gap the technology or research fills; and
348          (c) other factors [the governing authority] USTAR determines are relevant, important,
349     or necessary.
350          (5) [The governing authority] USTAR shall require a recipient of a grant under this
351     section, as a condition of receiving a grant, to comply with the reporting requirements
352     described in:
353          (a) Section 63M-2-702, for a USTAR researcher; or
354          (b) Section 63M-2-703, for a private entity or for a partnership between a USTAR
355     researcher and a private entity.
356          (6) Beginning on July 1, 2019, USTAR:
357          (a) may not establish any new competitive grant programs;
358          (b) may not award new grants related to any existing competitive grant program; and
359          (c) may continue to pay grant money for a grant awarded before July 1, 2019, in
360     accordance with the written terms of the grant.
361          Section 9. Section 63M-2-504 is amended to read:
362          63M-2-504. Other USTAR support.
363          (1) [The governing authority shall] USTAR may:
364          (a) provide mentoring, networking, and entrepreneurial training for a private entity or
365     USTAR researcher to help take a new technology to market;

366          (b) provide support to a private entity or USTAR researcher in assessing the potential
367     for bringing a technology to market; and
368          (c) encourage industry partnerships between a private entity and a USTAR researcher.
369          (2) [The governing authority] USTAR shall require a recipient of USTAR support
370     under this section, as a condition of receiving USTAR support, to comply with the reporting
371     requirements in:
372          (a) Section 63M-2-702, for a USTAR researcher; or
373          (b) Section 63M-2-703, for a private entity or for a partnership between a USTAR
374     researcher and a private entity.
375          Section 10. Section 63M-2-703 is amended to read:
376          63M-2-703. Reporting requirements for private entities.
377          (1) On or before September 1 of each year, the [governing authority] program director
378     shall collect the information described in Subsection (2) from each private entity that:
379          (a) receives USTAR support;
380          (b) receives more than 20 hours of training from USTAR;
381          (c) purchases a private entity that previously received USTAR support; or
382          (d) licenses a technology developed by a USTAR researcher.
383          (2) The [governing authority] program director shall collect information on:
384          (a) public or private investment received by the private entity after the private entity:
385          (i) begins to receive USTAR support;
386          (ii) licenses a technology from a USTAR researcher; or
387          (iii) purchases a private entity that previously received USTAR support;
388          (b) sales or revenue generated by the product or technology;
389          (c) the number of jobs created by the private entity and the average wage for each
390     position; and
391          (d) the location of the private entity.
392          (3) (a) To collect the information described in Subsection (2), the [governing authority]
393     program director shall, in accordance with Title 63G, Chapter 6a, Utah Procurement Code,

394     contract with an independent third party to conduct a survey of each private entity described in
395     Subsection (1).
396          (b) The independent third party selected under Subsection (3)(a) shall use industry
397     standard practices to collect the information described in Subsection (2).
398          (4) The [governing authority] program director and Department of Workforce Services
399     shall coordinate to verify the job and average wage information described in Subsection (2)(c).
400          Section 11. Section 63M-2-802 is amended to read:
401          63M-2-802. USTAR annual report.
402          (1) (a) On or before October 1 of each year, [the governing authority] USTAR shall
403     submit, in accordance with Section 68-3-14, an annual written report for the preceding fiscal
404     year to:
405          (i) the Business, Economic Development, and Labor Appropriations Subcommittee;
406          (ii) the Economic Development and Workforce Services Interim Committee;
407          (iii) the Business and Labor Interim Committee; and
408          (iv) the governor.
409          (b) An annual report under Subsection (1)(a) is subject to modification as provided in
410     Subsection (5) after an audit described in Section 63M-2-803 is released.
411          (2) An annual report described in Subsection (1) shall include:
412          (a) information reported to [the governing authority] USTAR through the survey
413     described in Section 63M-2-703;
414          (b) a clear description of the methodology used to arrive at any information in the
415     report that is based on an estimate;
416          (c) starting with fiscal year 2017 data as a baseline, data from previous years for
417     comparison with the annual data reported under this Subsection (2);
418          (d) relevant federal and state statutory references and requirements;
419          (e) contact information for the executive director;
420          (f) other information determined by [the governing authority] USTAR that promotes
421     accountability and transparency; and

422          (g) the written economic development objectives required under Subsection
423     63M-2-302(1)(e) and a description of progress or challenges in meeting the objectives.
424          (3) [The governing authority] USTAR shall design the annual report to provide clear,
425     accurate, and accessible information to the public, the governor, and the Legislature.
426          (4) [The governing authority] USTAR shall:
427          (a) submit the annual report in accordance with Section 68-3-14; and
428          (b) place a link to the annual report and previous annual reports on USTAR's website.
429          (5) Following the completion of an annual audit described in Section 63M-2-803, [the
430     governing authority] USTAR shall:
431          (a) publicly issue a revised annual report that:
432          (i) addresses the audit;
433          (ii) responds to audit findings; and
434          (iii) incorporates any revisions to the annual report based on audit findings;
435          (b) publish the revised annual report on USTAR's website, with a link to the audit; and
436          (c) submit, in accordance with Section 68-3-14, written notification of any revisions of
437     the annual report to:
438          (i) the Business, Economic Development, and Labor Appropriations Subcommittee;
439          (ii) the Economic Development and Workforce Services Interim Committee;
440          (iii) the Business and Labor Interim Committee; and
441          (iv) the governor.
442          (6) In addition to the annual written report described in this section, [the governing
443     authority] USTAR shall:
444          (a) provide information and progress reports to a legislative committee upon request;
445     [and]
446          (b) on or before August 1, 2018, and every five years after August 1, 2018, provide to
447     the same entities that receive the annual report described in Subsection (1)(a) a written analysis
448     and recommendations concerning the usefulness of the information required in the annual
449     report and USTAR's ongoing effectiveness, including whether:

450          (i) the reporting requirements are effective at measuring USTAR's performance;
451          (ii) the reporting requirements should be modified;
452          (iii) USTAR is beneficial to the state and should continue; and
453          (iv) whether programs in other agencies could provide similar benefits to the state
454     more effectively or at a lower cost[.]; and
455          (c) on or before July 1, 2019, and in cooperation with the executive director of the
456     Governor's Office of Economic Development, provide to the same entities that receive the
457     annual report described in Subsection (1)(a) a written analysis and recommendations
458     describing:
459          (i) the most efficient way to move existing USTAR programs to the Governor's Office
460     of Economic Development by July 1, 2020;
461          (ii) the most cost-effective way to discontinue incubation centers and similar programs
462     by November 30, 2019;
463          (iii) a complete accounting of USTAR grants and an analysis of any technology that
464     USTAR or the state may have a financial interest in if the technology is or was successful;
465          (iv) a complete accounting of whether USTAR is owed any money as a result of
466     previous agreements or the commercialization of technology funded by USTAR;
467          (v) any technology funded in any part by USTAR that has been or should be
468     commercialized; and
469          (vi) a plan to do the following by November 30, 2019:
470          (A) move USTAR's headquarters to office space within the Governor's Office of
471     Economic Development;
472          (B) subject to Subsection (6)(c)(vi)(C), terminate USTAR building leases;
473          (C) transfer the lease of the Sparrowhawk building at Falcon Hill Drive in Clearfield,
474     Utah to the Military Installation Development Authority; and
475          (D) transfer ownership and title of any USTAR-owned building on the campus of Utah
476     State University to Utah State University.
477          Section 12. Section 63M-2-803 is amended to read:

478          63M-2-803. Audit requirements.
479          (1) Every third year beginning 2018, an audit of USTAR shall be made as described in
480     this section.
481          (2) (a) As approved by the Legislative Audit Subcommittee, the audit shall be
482     conducted by:
483          (i) the legislative auditor; or
484          (ii) an independent auditor engaged by the legislative auditor.
485          (b) An independent auditor used under Subsection (2)(a)(ii) may not have a direct
486     financial conflict of interest with USTAR [or the governing authority].
487          (3) [The governing authority] USTAR shall pay the costs associated with the [annual]
488     audit.
489          (4) The [annual] audit shall:
490          (a) include a verification of the accuracy of the information required to be included in
491     the annual report described in Section 63M-2-802; and
492          (b) be completed by December 1 of the year the report is required under Subsection (1).
493          Section 13. Appropriations.
494          The following sums of money are appropriated for the fiscal year beginning July 1,
495     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
496     fiscal year 2020.
497          Subsection 13(a). Operating and Capital Budgets.
498          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
499     Legislature appropriates the following sums of money from the funds or accounts indicated for
500     the use and support of the government of the state of Utah.
501     ITEM 1
502          To Utah Science Technology and Research Governing Authority -- Support Programs
503               From General Fund
($3,282,600)

504               From Dedicated Credits
($16,100)

505               Schedule of Programs:

506                    Incubation Programs                    ($2,160,600)
507                    Regional Outreach                    ($736,400)
508                    SBIR/STTR Assistance Center          ($401,700)
509     ITEM 2
510          To Utah Science Technology and Research Governing Authority -- Grant Programs
511               From General Fund, One-time
($4,500,000)

512               Schedule of Programs:
513                    Industry Partnership Program          ($2,375,000)
514                    Technology Acceleration Program          ($2,125,000)
515     ITEM 3
516          To Governor's Office of Economic Development -- Pass-Through
517               From General Fund, One-time
$1,705,900

518               Schedule of Programs:
519                    Pass-Through                         $1,705,900
520          The Legislature intends that:
521          (1) the Governor's Office of Economic Development shall pass-through the
522     appropriation described in this item to the Military Installation Development Authority; and
523          (2) the Military Installation Development Authority shall expend this appropriation to
524     pay for at least three years of lease payments for the Sparrowhawk building at Falcon Hill
525     Drive in Clearfield, Utah, and to manage the administration of programs at the Sparrowhawk
526     building at Falcon Hill Drive in Clearfield, Utah.
527     ITEM 4
528          To Governor's Office of Economic Development -- Pass-Through
529               From General Fund
$385,600

530               From Dedicated Credits Revenue
$16,100

531               Schedule of Programs:
532                    Pass-Through                              $401,700
533          The Legislature intends that the Governor's Office of Economic Development shall

534     pass-through the appropriation described in this item to the Small Business Innovation
535     Research and Small Business Technology Transfer Assistance Center, also known as the
536     SBIR/SBTTR Assistance Center.
537          Subsection 13(b). Restricted Fund and Account Transfers.
538          The Legislature authorizes the State Division of Finance to transfer the following
539     amounts between the following funds or accounts as indicated. Expenditures and outlays from
540     the funds or accounts to which the money is transferred must be authorized by an
541     appropriation.
542     ITEM 5
543          To General Fund Restricted -- Workforce Development Restricted Account
544               From General Fund
$2,897,000

545               Schedule of Programs:
546                    Workforce Development Restricted Account $2,897,000
547     ITEM 6
548          To General Fund Restricted -- Workforce Development Restricted Account
549               From General Fund, One-time
$2,794,100

550               Schedule of Programs:
551                    Workforce Development Restricted Account $2,794,100