Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 166 (2016GS)

Sponsor

Sen. Millner, A.

Final action

Governor Signed 3/23/2016

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• rewrites provisions relating to the Utah Science and Technology Research Initiative (USTAR), its governing authority, and funding and other support provided by USTAR;
• modifies the powers and duties of the USTAR governing authority;
• modifies reporting requirements;
• modifies provisions related to USTAR researchers and USTAR buildings;
• modifies provisions related to an audit of USTAR's annual report;
• repeals provisions relating to a technology outreach innovation program and an advisory council;
• makes appropriations to USTAR nonlapsing; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

UTAH SCIENCE, TECHNOLOGY, AND RESEARCH
MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Ann Millner
House Sponsor: 
Brad R. Wilson
LONG TITLE
General Description:
This bill modifies provisions related to the Utah Science Technology and Research
Initiative.
Highlighted Provisions:
This bill:
▸ rewrites provisions relating to the Utah Science and Technology Research Initiative
(USTAR), its governing authority, and funding and other support provided by
USTAR;
▸ modifies the powers and duties of the USTAR governing authority;
▸ modifies reporting requirements;
▸ modifies provisions related to USTAR researchers and USTAR buildings;
▸ modifies provisions related to an audit of USTAR's annual report;
▸ repeals provisions relating to a technology outreach innovation program and an
advisory council;
▸ makes appropriations to USTAR nonlapsing; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
AMENDS:
63A-5-305
, as last amended by Laws of Utah 2003, Chapter 289
63J-1-602.4
, as last amended by Laws of Utah 2015, Chapters 179 and 283
63M-2-102
, as last amended by Laws of Utah 2015, Chapter 357
63M-2-301
, as last amended by Laws of Utah 2015, Chapter 357
63M-2-302.5
, as enacted by Laws of Utah 2014, Chapter 186
ENACTS:
63M-2-501
, Utah Code Annotated 1953
63M-2-502
, Utah Code Annotated 1953
63M-2-503
, Utah Code Annotated 1953
63M-2-504
, Utah Code Annotated 1953
63M-2-601
, Utah Code Annotated 1953
63M-2-602
, Utah Code Annotated 1953
63M-2-701
, Utah Code Annotated 1953
63M-2-702
, Utah Code Annotated 1953
63M-2-703
, Utah Code Annotated 1953
63M-2-704
, Utah Code Annotated 1953
63M-2-705
, Utah Code Annotated 1953
63M-2-801
, Utah Code Annotated 1953
63M-2-802
, Utah Code Annotated 1953
REPEALS AND REENACTS:
63M-2-302
, as last amended by Laws of Utah 2015, Chapter 357
RENUMBERS AND AMENDS:
63M-2-803
, (Renumbered from 63M-2-402, as last amended by Laws of Utah 2015,
Chapter 357)
REPEALS:
63M-2-201
, as last amended by Laws of Utah 2014, Chapter 186
63M-2-202
, as last amended by Laws of Utah 2015, Chapter 357
63M-2-203
, as last amended by Laws of Utah 2014, Chapter 186
63M-2-204
, as last amended by Laws of Utah 2015, Chapter 357
63M-2-303
, as last amended by Laws of Utah 2014, Chapter 186
63M-2-401
, as last amended by Laws of Utah 2015, Chapter 357
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
63A-5-305
 is amended to read:
63A-5-305.
Leasing by higher education institutions.
(1) The Board of Regents shall establish written policies and procedures governing
leasing by higher education institutions.
(2) Except as provided in [
Section
] 
Sections
53B-2a-113
[
, each
] 
and 
63M-2-602
, a
higher education institution shall comply with the procedures and requirements of the Board of
Regents' policies before signing or renewing [
any
] 
a
 lease.
Section 2. Section 
63J-1-602.4
 is amended to read:
63J-1-602.4.
List of nonlapsing funds and accounts -- Title 61 through Title 63N.
(1) Funds paid to the Division of Real Estate for the cost of a criminal background
check for a mortgage loan license, as provided in Section 
61-2c-202
.
(2) Funds paid to the Division of Real Estate for the cost of a criminal background
check for principal broker, associate broker, and sales agent licenses, as provided in Section
61-2f-204
.
(3) Certain funds donated to the Department of Human Services, as provided in
Section 
62A-1-111
.
(4) Appropriations from the National Professional Men's Basketball Team Support of
Women and Children Issues Restricted Account created in Section 
62A-1-202
.
(5) Certain funds donated to the Division of Child and Family Services, as provided in
Section 
62A-4a-110
.
(6) Appropriations from the Choose Life Adoption Support Restricted Account created
in Section 
62A-4a-608
.
(7) Appropriations to the Division of Services for People with Disabilities, as provided
in Section 
62A-5-102
.
(8) Appropriations to the Division of Fleet Operations for the purpose of upgrading
underground storage tanks under Section 
63A-9-401
.
(9) A portion of the funds appropriated to the Utah Seismic Safety Commission, as
provided in Section 
63C-6-104
.
(10) Funds appropriated or collected for publishing the Division of Administrative
Rules' publications, as provided in Section 
63G-3-402
.
(11) The Immigration Act Restricted Account created in Section 
63G-12-103
.
(12) Money received by the military installation development authority, as provided in
Section 
63H-1-504
.
(13) Appropriations to the Utah Science Technology and Research Initiative created in
Section 
63M-2-301
.
[
(13)
] 
(14)
 Appropriations to fund the Governor's Office of Economic Development's
Enterprise Zone Act, as provided in Title 63N, Chapter 2, Part 2, Enterprise Zone Act.
[
(14)
] 
(15)
 The Motion Picture Incentive Account created in Section 
63N-8-103
.
[
(15)
] 
(16)
 Certain money payable for commission expenses of the Pete Suazo Utah
Athletic Commission, as provided under Section 
63N-10-301
.
Section 3. Section 
63M-2-102
 is amended to read:
63M-2-102.
Definitions.
As used in this chapter:
[
(1) "Commercialization revenues" means dividends, realized capital gains, license
fees, royalty fees, and all other revenues received by a university as a result of commercial
applications, inventions, or intellectual property developed from the USTAR initiative, less:
]
[
(a) the portion of revenues allocated to the inventor; and
]
[
(b) expenditures incurred by the university to legally protect the intellectual property.
]
[
(2)
] 
(1)
 "Executive director" means the [
person
] 
individual
 appointed under [
Section
]
Subsection
63M-2-301
(9)
.
(2) "Governing authority" means the Utah Science Technology and Research
Governing Authority created in Section 
63M-2-301
.
(3) "Higher education institution" means an institution listed in Section 
53B-2-101
.
(4) "Principal researcher" means an individual who:
(a) (i) on May 10, 2016, is employed, alone or as part of a research team, by a research
university;
(ii) before May 10, 2016, received funding from USTAR for some or all of the
researcher's startup costs or research university salary;
(iii) was recruited by a research university to become a member of a research
university's faculty; and
(iv) on or after May 10, 2016, continues to receive USTAR support; or
(b) (i) is employed on or after May 10, 2016 as a researcher by a higher education
institution;
(ii) receives USTAR support; and
(iii) is recruited by the governing authority and the higher education institution to
become a member of the higher education institution's faculty.
(5) "Private entity":
(a) means a privately owned corporation, limited liability company, partnership, or
other business entity or association; and
(b) does not include an individual or a sole proprietorship.
[
(3)
] 
(6)
 "Research [
buildings" means any of the buildings listed in Section
63M-2-201
.
] 
building" means a building:
(a) for which the governing authority holds title; and
(b) that is located on the campus of a research university.
[
(4)
] 
(7)
 "Research [
universities
] 
university
" means
:
(a)
 the University of Utah [
and
]
; or
(b)
 Utah State University.
[
(5) "Technology outreach innovation program" or "TOIP" means the program
described in Section 
63M-2-202
.
]
[
(6) "USTAR governing authority" means the Utah Science Technology and Research
Governing Authority created in Section 
63M-2-301
.
]
[
(7) (a)
] 
(8)
 "USTAR [
initiative
]" means the Utah Science Technology and Research
Initiative created in Section 
63M-2-301
.
[
(b) "USTAR initiative" includes the projects, operations, activities, programs, and
services described in this chapter.
]
(9) "USTAR researcher" means:
(a) a principal researcher; or
(b) an individual, other than a principal researcher, who:
(i) is employed by a higher education institution; and
(ii) receives USTAR support.
(10) "USTAR support" means assistance provided by USTAR including:
(a) financial support;
(b) technical assistance;
(c) mentoring; and
(d) the use of:
(i) research or laboratory space controlled by USTAR in a building other than a
research building; and
(ii) equipment in space described in Subsection (10)(d)(i).
Section 4. Section 
63M-2-301
 is amended to read:
63M-2-301.
The Utah Science Technology and Research Initiative -- Governing
authority -- Executive director.
(1) There is created the Utah Science Technology and Research Initiative.
(2) To oversee [
the Utah Science Technology and Research Initiative
] 
USTAR
, there is
created the Utah Science Technology and Research Governing Authority consisting of
:
(a)
 the state treasurer or the state treasurer's designee[
,
]
;
(b)
 the executive director of the Governor's Office of Economic Development[
, and the
following eight members appointed as follows:
]
;
[
(a)
] 
(c)
 three 
members
 appointed by the governor, with the consent of the Senate;
[
(b)
] 
(d)
 two 
members
 appointed by the president of the Senate;
[
(c)
] 
(e)
 two 
members
 appointed by the speaker of the House of Representatives; and
[
(d)
] 
(f)
 one 
member
 appointed by the commissioner of higher education.
(3) (a) [
(i)
] The eight appointed members 
under Subsections (2)(c) through (f)
 shall
serve four-year staggered terms.
[
(ii) The
] 
(b) An
 appointed [
members
] 
member under Subsection (2)(c), (d), (e), or (f):
(i)
 may not serve more than two full consecutive terms[
.
]
; and
[
(iii) An appointed member
]
(ii)
 may be removed from the [
board
] 
governing authority
 for any reason before the
member's term is completed
:
(A)
 at the discretion of the original appointing authority
; and
(B)
 after [
consultation
] 
the original appointing authority consults
 with the governing
authority.
[
(b) Notwithstanding Subsection (3)(a)(i), the terms of the first members of the
governing authority shall be staggered by lot so that half of the initial members serve two-year
terms and half serve four-year terms.
]
(4) [
Vacancies in the appointed positions
] 
A vacancy
 on the governing authority 
in an
appointed position under Subsection (2)(c), (d), (e), or (f)
 shall be filled 
for the unexpired term
by the appointing authority in the same manner as the original appointment [
for the unexpired
term
].
(5) (a) [
The
] 
Except as provided in Subsection (5)(b), the
 governor, with the consent of
the Senate, shall select the chair of the governing authority to serve a one-year term.
(b) The governor may extend the term of a sitting chair of the governing authority
without the consent of the Senate.
(c) The executive director of the Governor's Office of Economic Development shall
serve as the vice chair of the governing authority.
(6) The governing authority shall meet at least six times each year and may meet more
frequently at the request of a majority of the members of the governing authority.
(7) Five members of the governing authority are a quorum.
(8) A member 
of the governing authority
 may not receive compensation or benefits for
the member's service, but may receive per diem and travel expenses as allowed in:
(a) Section 
63A-3-106
;
(b) Section 
63A-3-107
; and
(c) rules made by the Division of Finance [
according
]
:
(i) pursuant
 to Sections 
63A-3-106
 and 
63A-3-107
[
.
]
; and
(ii) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
(9) (a) After consultation with the [
USTAR
] governing authority, the governor, with
the consent of the Senate, shall appoint a full-time executive director to provide staff support
for the [
USTAR
] governing authority.
(b) The executive director is an at-will employee who may be terminated 
with or
without cause by
:
(i)
 the governor
;
 or [
by
]
(ii)
 majority vote of the [
USTAR
] governing authority.
Section 5. Section 
63M-2-302
 is repealed and reenacted to read:
 63M-2-302.
USTAR governing authority powers and duties.
(1) The governing authority shall:
(a) ensure that funds appropriated to USTAR are used appropriately, effectively, and
efficiently in accordance with this chapter;
(b) in cooperation with a research university's administration, work to expand research
at the research university;
(c) enhance technology transfer and commercialization of research and technology
developed at a higher education institution to create high-quality jobs and new industries in the
private sector in the state;
(d) ensure that USTAR programs do not duplicate existing or planned programs of
other state agencies;
(e) establish written economic development objectives for USTAR that are measurable
and verifiable;
(f) consider input from the Governor's Office of Economic Development and higher
education institutions;
(g) establish and administer a grant program, as provided in Section 
63M-2-503
, and
provide USTAR support, as provided in Section 
63M-2-504
, consistent with and to further
economic development objectives that the governing authority establishes; and
(h) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
make rules to implement this chapter.
(2) The governing authority may:
(a) in addition to receiving money appropriated by the Legislature, receive
contributions to USTAR from any source, in the form of money, property, labor, or other thing
of value;
(b) subject to restrictions imposed by a donor or legislative appropriation, allocate
money for programs and activities described in this chapter;
(c) enter into an agreement necessary to obtain private equity investment in USTAR;
(d) charge and collect rent for space in a facility or building that USTAR controls;
(e) in fulfilling the governing authority's duties and responsibilities under this chapter,
collaborate with:
(i) the Governor's Office of Economic Development and other state agencies with an
interest in economic development; and
(ii) private entities with an interest in economic development; and
(f) delegate powers and duties to the executive director.
(3) A state agency, higher education institution, or political subdivision with which the
governing authority seeks to collaborate in fulfilling the governing authority's duties under this
chapter shall cooperate with the governing authority as reasonably necessary to enable the
governing authority to fulfill its duties under this chapter.
Section 6. Section 
63M-2-302.5
 is amended to read:
63M-2-302.5.
USTAR governing authority requirements.
The [
USTAR
] governing authority is subject to the requirements of an executive branch
agency and is:
(1) an agency for purposes of Title 63J, Chapter 1, Budgetary Procedures Act;
(2) an executive branch procurement unit for purposes of Title 63G, Chapter 6a, Utah
Procurement Code;
(3) a governmental entity for purposes of Title 63G, Chapter 2, Government Records
Access and Management Act; and
(4) a public body for purposes of Title 52, Chapter 4, Open and Public Meetings Act.
Section 7. Section 
63M-2-501
 is enacted to read:
Part 5. USTAR Support
 63M-2-501.
Title.
This part is known as "USTAR Support."
Section 8. Section 
63M-2-502
 is enacted to read:
 63M-2-502.
Principal researchers -- Agreement requirements -- Discontinuing
funding.
(1) Subject to legislative appropriation, the governing authority shall:
(a) provide funding to help a research university honor its commitments to principal
researchers employed by the research university; and
(b) give priority to funding provided under Subsection (1)(a).
(2) The governing authority shall enter into a written agreement with a higher
education institution that employs a principal researcher:
(a) establishing performance standards and expectations for a principal researcher; and
(b) requiring the higher education institution to require a principal researcher to comply
with reporting requirements set forth in Section 
63M-2-702
.
(3) (a) A principal researcher may not be hired on or after May 10, 2016 without the
approval of the governing authority and the higher education institution.
(b) A higher education institution that enters into or renews an agreement with a
principal researcher on or after May 10, 2016 shall include in the agreement:
(i) a specific time period for the commitment of USTAR funding;
(ii) the amount of USTAR funding committed to the higher education institution for
the principal researcher, specifying the purpose of the funding;
(iii) an acknowledgment that the principal researcher understands and agrees to the
reporting requirements and performance standards under this chapter; and
(iv) the governing authority's written approval of the terms of the new or renewed
agreement.
(4) The governing authority may not allocate money to a higher education institution
for a principal researcher unless the higher education institution provides the reporting required
under Section 
63M-2-702
.
(5) The governing authority may discontinue allocating money to a higher education
institution for a principal researcher if the governing authority and the president of the higher
education institution employing the principal researcher agree in writing that:
(a) the principal researcher:
(i) fails to meet the performance standards and expectations established under
Subsection (2)(a);
(ii) receives a reasonable opportunity to remedy the failure to meet performance
standards and expectations; and
(iii) fails to remedy the failure to meet performance standards and expectations; and
(b) under the circumstances, discontinuing USTAR funding to the higher education
institution for the principal researcher is appropriate and justified.
Section 9. Section 
63M-2-503
 is enacted to read:
 63M-2-503.
USTAR grant programs.
(1) The governing authority shall establish at least one competitive grant program that:
(a) is designed to:
(i) address market gaps in technology development in the state; or
(ii) facilitate research and development of promising technologies;
(b) does not overlap with or duplicate other state funded programs; and
(c) offers grants, on a competitive basis, to:
(i) researchers employed by higher education institutions;
(ii) private entities; or
(iii) partnerships between researchers employed by higher education institutions and
private entities.
(2) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
governing authority shall make rules that describe, for each grant program:
(a) the purpose;
(b) eligibility criteria to receive a grant;
(c) how the governing authority determines which proposals receive grants;
(d) reporting requirements in accordance with Part 7, Reporting by Recipients of
USTAR Support; and
(e) other information the governing authority determines is necessary or appropriate.
(3) The governing authority:
(a) shall solicit proposals for each grant program; and
(b) may, subject to legislative appropriation and Subsection 
63M-2-502
(1)(b), award
grants for each program.
(4) In evaluating a grant proposal received in response to a solicitation under this
section, the governing authority shall consider, as applicable:
(a) the extent to which the planned research has the potential for commercialization;
(b) the market gap the technology or research fills; and
(c) other factors the governing authority determines are relevant, important, or
necessary.
(5) The governing authority shall require a recipient of a grant under this section, as a
condition of receiving a grant, to comply with the reporting requirements described in:
(a) Section 
63M-2-702
, for a USTAR researcher; or
(b) Section 
63M-2-703
, for a private entity or for a partnership between a USTAR
researcher and a private entity.
Section 10. Section 
63M-2-504
 is enacted to read:
 63M-2-504.
Other USTAR support.
(1) The governing authority shall:
(a) provide mentoring, networking, and entrepreneurial training for a private entity or
USTAR researcher to help take a new technology to market;
(b) provide support to a private entity or USTAR researcher in assessing the potential
for bringing a technology to market; and
(c) encourage industry partnerships between a private entity and a USTAR researcher.
(2) The governing authority shall require a recipient of USTAR support under this
section, as a condition of receiving USTAR support, to comply with the reporting requirements
in:
(a) Section 
63M-2-702
, for a USTAR researcher; or
(b) Section 
63M-2-703
, for a private entity or for a partnership between a USTAR
researcher and a private entity.
Section 11. Section 
63M-2-601
 is enacted to read:
Part 6. Research Buildings
 63M-2-601.
Title.
This part is known as "Research Buildings."
Section 12. Section 
63M-2-602
 is enacted to read:
 63M-2-602.
Lease agreement for a research building -- Requirements for lease
agreement.
(1) The governing authority shall enter into a written lease agreement with a research
university to lease to the research university a research building constructed on the research
university's campus.
(2) A lease agreement under Subsection (1) shall:
(a) require the research university to pay the ongoing operation and maintenance
expenses associated with the research building, including for any infrastructure in the research
building; and
(b) subject to the reporting requirements described in Section 
63M-2-705
, permit the
research university to use or rent space within the research building for research other than
research receiving USTAR support, including research by a private entity.
Section 13. Section 
63M-2-701
 is enacted to read:
Part 7. Reporting by Recipients of USTAR Support
 63M-2-701.
Title.
This part is known as "Reporting by Recipients of USTAR Support."
Section 14. Section 
63M-2-702
 is enacted to read:
 63M-2-702.
Reporting requirements for higher education institutions.
(1) Except as provided in Subsection (3), on or before September 1 each year, a higher
education institution employing a USTAR researcher shall submit a written report to the
governing authority.
(2) A report under Subsection (1) shall contain information on:
(a) collaborations established by a USTAR researcher with other researchers;
(b) the amount and source of funding, other than USTAR funding, expended on a
USTAR researcher's research program, including:
(i) federal funds;
(ii) philanthropic or nonprofit funds;
(iii) industry funds; and
(iv) state funds other than USTAR funds, including funds from a higher education
institution;
(c) a copy of each:
(i) technology disclosure that a USTAR researcher files with a higher education
institution;
(ii) license agreement that the higher education institution enters into with respect to a
technology developed by a USTAR researcher, including any current, expired, or breached
license; and
(iii) patent filed by the higher education institution based on technology developed by a
USTAR researcher;
(d) publications in which a USTAR researcher participated, including a citation for
each peer reviewed publication;
(e) the number of research jobs maintained by a USTAR researcher's research program
and average wages paid to those holding those jobs;
(f) expenses paid using USTAR funds, including:
(i) salary and benefits for a USTAR researcher or staff;
(ii) operational expenses;
(iii) capital equipment expenses; and
(iv) travel; and
(g) compensation, including salary and benefits, that a USTAR researcher received
from a publicly funded source other than USTAR funds.
(3) The governing authority may make rules, in accordance with Title 63G, Chapter 3,
Utah Administrative Rulemaking Act, to simplify or eliminate the reporting requirements
described in this section for a USTAR researcher who has received less than $100,000 in
cumulative USTAR funding for a particular line of research.
Section 15. Section 
63M-2-703
 is enacted to read:
 63M-2-703.
Reporting requirements for private entities.
(1) On or before September 1 of each year, the governing authority shall collect the
information described in Subsection (2) from each private entity that:
(a) receives USTAR support;
(b) receives more than 20 hours of training from USTAR;
(c) purchases a private entity that previously received USTAR support; or
(d) licenses a technology developed by a USTAR researcher.
(2) The governing authority shall collect information on:
(a) public or private investment received by the private entity after the private entity:
(i) begins to receive USTAR support;
(ii) licenses a technology from a USTAR researcher; or
(iii) purchases a private entity that previously received USTAR support;
(b) sales or revenue generated by the product or technology;
(c) the number of jobs created by the private entity and the average wage for each
position; and
(d) the location of the private entity.
(3) (a) To collect the information described in Subsection (2), the governing authority
shall, in accordance with Title 63G, Chapter 6a, Utah Procurement Code, contract with an
independent third party to conduct a survey of each private entity described in Subsection (1).
(b) The independent third party selected under Subsection (3)(a) shall use industry
standard practices to collect the information described in Subsection (2).
(4) The governing authority and Department of Workforce Services shall coordinate to
verify the job and average wage information described in Subsection (2)(c).
Section 16. Section 
63M-2-704
 is enacted to read:
 63M-2-704.
Reporting on licensed or acquired intellectual property.
In an agreement between an institution of higher education and a private entity that
licenses or acquires an interest in intellectual property developed by a USTAR researcher, the
institution of higher education shall include a provision requiring the private entity, as a
condition of receiving a license or acquiring an interest in intellectual property, to comply with
the reporting requirements in Section 
63M-2-703
.
Section 17. Section 
63M-2-705
 is enacted to read:
 63M-2-705.
Reporting on use of research buildings.
On or before September 1 of each year, a research university shall submit a report to the
governing authority concerning the use, during the immediately preceding fiscal year, of the
research building located on the research university's campus, including:
(1) the name of each individual who conducts research in the research building;
(2) the name of each private entity that uses the research building;
(3) the total amount charged by the research university for the use of space or facilities
in the research building;
(4) the amount and source of funding, other than USTAR funding, received by a
researcher, other than a researcher that is a private entity, housed in the research building,
including:
(a) federal funding;
(b) state funding, including institutional funding;
(c) private philanthropic or nonprofit funding; and
(d) industry funding; and
(5) the number of disclosures, patents, and licenses resulting from research conducted
in the research building.
Section 18. Section 
63M-2-801
 is enacted to read:
Part 8. USTAR Reporting and Audit Requirements
 63M-2-801.
Title.
This part is known as "USTAR Reporting and Audit Requirements."
Section 19. Section 
63M-2-802
 is enacted to read:
 63M-2-802.
USTAR annual report.
(1) (a) On or before October 1 of each year, the governing authority shall submit an
annual written report for the preceding fiscal year to:
(i) the Business, Economic Development, and Labor Appropriations Subcommittee;
(ii) the Economic Development and Workforce Services Interim Committee;
(iii) the Business and Labor Interim Committee; and
(iv) the governor.
(b) An annual report under Subsection (1)(a) is subject to modification as provided in
Subsection (5) after an audit described in Section 
63M-2-803
 is released.
(2) An annual report described in Subsection (1) shall include:
(a) information reported to the governing authority:
(i) by an institution of higher education under Section 
63M-2-702
;
(ii) through the survey described in Section 
63M-2-703
; and
(iii) by a research university, under Section 
63M-2-705
;
(b) a clear description of the methodology used to arrive at any information in the
report that is based on an estimate;
(c) starting with fiscal year 2017 data as a baseline, data from previous years for
comparison with the annual data reported under this Subsection (2);
(d) relevant federal and state statutory references and requirements;
(e) contact information for the executive director;
(f) other information determined by the governing authority that promotes
accountability and transparency; and
(g) the written economic development objectives required under Subsection
63M-2-302
(1)(e) and a description of progress or challenges in meeting the objectives.
(3) The governing authority shall design the annual report to provide clear, accurate,
and accessible information to the public, the governor, and the Legislature.
(4) The governing authority shall:
(a) submit the annual report in accordance with Section 
68-3-14
; and
(b) place a link to the annual report and previous annual reports on USTAR's website.
(5) Following the completion of an annual audit described in Section 
63M-2-803
, the
governing authority shall:
(a) publicly issue a revised annual report that:
(i) addresses the audit;
(ii) responds to audit findings; and
(iii) incorporates any revisions to the annual report based on audit findings;
(b) publish the revised annual report on USTAR's website, with a link to the audit; and
(c) provide written notification of any revisions of the annual report to:
(i) the Business, Economic Development, and Labor Appropriations Subcommittee;
(ii) the Economic Development and Workforce Services Interim Committee;
(iii) the Business and Labor Interim Committee; and
(iv) the governor.
(6) In addition to the annual written report described in this section, the governing
authority shall:
(a) provide information and progress reports to a legislative committee upon request;
and
(b) on or before October 1, 2019, and every five years after October 1, 2019, include
with the annual report described in this section a written analysis and recommendations
concerning the usefulness of the information required in the annual report and USTAR's
ongoing effectiveness, including whether:
(i) the reporting requirements are effective at measuring USTAR's performance;
(ii) the reporting requirements should be modified; and
(iii) USTAR is beneficial to the state and should continue.
Section 20. Section 
63M-2-803
, which is renumbered from Section 63M-2-402 is
renumbered and amended to read:
[
63M-2-402
].
 63M-2-803.
Audit requirements.
(1) [
Each fiscal
] 
Every third
 year 
beginning 2018
, an audit of [
the activities of the
]
USTAR [
initiative
] shall be made as described in this section.
(2) (a) As approved by the Legislative Audit Subcommittee, the audit shall be
conducted by:
(i) the legislative auditor; or
(ii) an independent auditor engaged by the legislative auditor.
(b) An independent auditor used under Subsection (2)(a)(ii) may not have a direct
financial conflict of interest with [
the
] USTAR [
initiative
] or the [
USTAR
] governing
authority.
(3) The [
USTAR
] governing authority shall pay the costs associated with the annual
audit.
(4) The annual audit shall:
(a) include a verification of the accuracy of the information required to be included in
the annual report described in Section [
63M-2-401
] 
63M-2-802
; and
(b) be completed by [
September
] 
December
of [
each
] 
the
 year 
the report is required
under Subsection (1)
.
Section 21. 
Repealer.
This bill repeals:
Section 
63M-2-201
,
Science technology research buildings.
Section 
63M-2-202
,
Technology outreach innovation program.
Section 
63M-2-203
,
Research teams.
Section 
63M-2-204
,
Financial participation agreement.
Section 
63M-2-303
,
USTAR Governing Authority Advisory Council -- Chair --
Meetings.
Section 
63M-2-401
,
Reporting requirements.