Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 218 Second Substitute (2022GS)

Sponsor

Sen. Sandall, S.

Final action

Governor Signed 3/23/2022

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• repeals the Utah Capital Investment Board;
• modifies and repeals certain provisions relating to the Utah Capital Investment Corporation and the Utah fund of funds to begin the process of winding up the affairs of those entities;
• modifies the Utah Capital Investment Restricted Account to accept funds disbursed to the state by the Utah Capital Investment Corporation or the Utah fund of funds;
• exempts the Utah fund of funds from the Utah Money Management Act; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

FUND OF FUNDS MODIFICATIONS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Scott D. Sandall
House Sponsor: 
Steve Waldrip
LONG TITLE
General Description:
This bill relates to the Utah Capital Investment Corporation and the Utah fund of funds.
Highlighted Provisions:
This bill:
▸ repeals the Utah Capital Investment Board;
▸ modifies and repeals certain provisions relating to the Utah Capital Investment
Corporation and the Utah fund of funds to begin the process of winding up the
affairs of those entities;
▸ modifies the Utah Capital Investment Restricted Account to accept funds disbursed
to the state by the Utah Capital Investment Corporation or the Utah fund of funds;
▸ exempts the Utah fund of funds from the Utah Money Management Act; and
▸ makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
51-7-2
, as last amended by Laws of Utah 2021, Chapter 33
63N-6-103
, as last amended by Laws of Utah 2021, Chapter 438
63N-6-204
, as enacted by Laws of Utah 2021, Chapter 438
63N-6-301
, as last amended by Laws of Utah 2021, Chapter 438
63N-6-303
, as last amended by Laws of Utah 2021, Chapter 438
63N-6-305
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-401
, as last amended by Laws of Utah 2015, Chapter 420 and renumbered and
amended by Laws of Utah 2015, Chapter 283
63N-6-402
, as last amended by Laws of Utah 2021, Chapter 438
63N-6-404
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-405
, as last amended by Laws of Utah 2015, Chapter 420 and renumbered and
amended by Laws of Utah 2015, Chapter 283
63N-6-410
, as last amended by Laws of Utah 2015, Chapter 420 and renumbered and
amended by Laws of Utah 2015, Chapter 283
REPEALS:
63N-6-101
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-102
, as last amended by Laws of Utah 2015, Chapter 420 and renumbered and
amended by Laws of Utah 2015, Chapter 283
63N-6-201
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-202
, as last amended by Laws of Utah 2019, Chapter 136
63N-6-203
, as last amended by Laws of Utah 2019, Chapter 214
63N-6-302
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-304
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-306
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-403
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-406
, as last amended by Laws of Utah 2021, Chapter 438
63N-6-407
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-408
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-409
, as renumbered and amended by Laws of Utah 2015, Chapter 283
63N-6-411
, as renumbered and amended by Laws of Utah 2015, Chapter 283
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
51-7-2
 is amended to read:
51-7-2.
Exemptions from chapter.
The following funds are exempt from this chapter:
(1) funds invested in accordance with the participating employees' designation or
direction pursuant to a public employees' deferred compensation plan established and operated
in compliance with Section 457 of the Internal Revenue Code of 1986, as amended;
(2) funds of the Utah State Retirement Board;
(3) funds of the Utah Housing Corporation;
(4) endowment funds of higher education institutions;
(5) permanent and other land grant trust funds established pursuant to the Utah
Enabling Act and the Utah Constitution;
(6) the State Post-Retirement Benefits Trust Fund;
(7) the funds of the Utah Educational Savings Plan;
(8) funds of the permanent state trust fund created by and operated under Utah
Constitution, Article XXII, Section 4;
(9) the funds in the Navajo Trust Fund;
(10) the funds in the Radioactive Waste Perpetual Care and Maintenance Account;
(11) the funds in the Employers' Reinsurance Fund;
(12) the funds in the Uninsured Employers' Fund;
(13) the Utah State Developmental Center Long-Term Sustainability Fund, created in
Section 
62A-5-206.7
; [
and
]
(14) the funds in the Risk Management Fund created in Section 
63A-4-201
[
.
]
; and
(15) the Utah fund of funds created in Section 
63N-6-401
.
Section 2. Section 
63N-6-103
 is amended to read:
63N-6-103.
Definitions.
As used in this part:
(1) "Board" means the [
Utah Capital Investment Board
] 
board of directors of the
corporation
.
[
(2) "Certificate" means a contract between the board and a designated investor under
which a contingent tax credit is available and issued to the designated investor.
]
[
(3) (a) Except as provided in Subsection (3)(b), "claimant" means a resident or
nonresident person.
]
[
(b) "Claimant" does not include an estate or trust.
]
[
(4) "Commitment" means a written commitment by a designated purchaser to
purchase from the board certificates presented to the board for redemption by a designated
investor. Each commitment shall state the dollar amount of contingent tax credits that the
designated purchaser has committed to purchase from the board.
]
[
(5) "Contingent tax credit" means a contingent tax credit issued under this part that is
available against tax liabilities imposed by Title 59, Chapter 7, Corporate Franchise and
Income Taxes, or Title 59, Chapter 10, Individual Income Tax Act, if there are insufficient
funds in the redemption reserve and the board has not exercised other options for redemption
under Subsection 
63N-6-408
(3)(b).
]
[
(6)
] 
(2)
 "Corporation" means the Utah Capital Investment Corporation created under
Section 
63N-6-301
.
[
(7) "Designated investor" means:
]
[
(a) a person who makes a private investment; or
]
[
(b) a transferee of a certificate or contingent tax credit.
]
[
(8) "Designated purchaser" means:
]
[
(a) a person who enters into a written undertaking with the board to purchase a
commitment; or
]
[
(b) a transferee who assumes the obligations to make the purchase described in the
commitment.
]
[
(9) "Estate" means a nonresident estate or a resident estate.
]
[
(10) "Person" means an individual, partnership, limited liability company, corporation,
association, organization, business trust, estate, trust, or any other legal or commercial entity.
]
[
(11) "Private investment" means:
]
[
(a) an equity interest in the Utah fund of funds; or
]
[
(b) a loan to the Utah fund of funds initiated before July 1, 2014, including a loan that
was originated before July 1, 2014, and that is refinanced one or more times on or after July 1,
2014.
]
[
(12) "Redemption reserve" means the reserve established by the corporation to:
]
[
(a) facilitate the cash redemption of certificates; and
]
[
(b) provide money for the state as directed by statute.
]
[
(13)
] 
(3)
 "Restricted account" means the Utah Capital Investment Restricted Account
created in Section 
63N-6-204
.
[
(14) "Taxpayer" means a taxpayer:
]
[
(a) of an investor; and
]
[
(b) if that taxpayer is a:
]
[
(i) claimant;
]
[
(ii) estate; or
]
[
(iii) trust.
]
[
(15) "Trust" means a nonresident trust or a resident trust.
]
[
(16)
] 
(4)
 "Utah fund of funds" means a [
limited partnership or
] limited liability
company established under Section 
63N-6-401
 [
in which a designated investor purchases an
equity interest
].
Section 3. Section 
63N-6-204
 is amended to read:
63N-6-204.
Utah Capital Investment Restricted Account.
(1) There is created a restricted account within the General Fund known as the Utah
Capital Investment Restricted Account.
(2) The restricted account shall be funded by[
:
] 
disbursements from the Utah fund of
funds or the corporation.
[
(a) redemption reserve money and other money from the corporation as directed by
statute; and
]
[
(b) appropriations made to the account by the Legislature.
]
(3) The state treasurer shall:
(a) administer the account;
[
(a)
] 
(b)
 invest money in the restricted account in accordance with Title 51, Chapter 7,
State Money Management Act; and
[
(b)
] 
(c)
 deposit interest or other earnings derived from investment of restricted
account money into the restricted account.
(4) The Legislature may appropriate funds from the restricted account to the General
Fund or for any other lawful purpose.
[
(4) Subject to appropriations by the Legislature, the restricted account shall be
administered by the Governor's Office of Economic Opportunity for economic development,
infrastructure, state parks, recreation, education innovation, or other purposes as directed by the
Legislature.
]
[
(5) An appropriation from the restricted account is nonlapsing.
]
Section 4. Section 
63N-6-301
 is amended to read:
63N-6-301.
Utah Capital Investment Corporation -- Powers and purposes --
Reporting requirements.
(1) (a) There is created an independent quasi-public nonprofit corporation known as the
Utah Capital Investment Corporation.
(b) The corporation:
(i) may exercise all powers conferred on independent corporations under Section
63E-2-106
;
(ii) is subject to the prohibited participation provisions of Section 
63E-2-107
; and
(iii) is subject to the other provisions of Title 63E, Chapter 2, Independent
Corporations Act, except as otherwise provided in this part.
(c) The corporation shall file with the Division of Corporations and Commercial Code:
(i) articles of incorporation; and
(ii) any amendment to its articles of incorporation.
(d) In addition to the articles of incorporation, the corporation may adopt bylaws and
operational policies that are consistent with this chapter.
(e) Except as otherwise provided in this part, this part does not exempt the corporation
from the requirements under state law which apply to other corporations organized under Title
63E, Chapter 2, Independent Corporations Act.
(2) The purposes of the corporation are to:
(a) [
organize
] 
administer
 the Utah fund of funds;
(b) select an investment fund allocation manager to [
make venture capital and private
equity fund
] 
manage
 investments by the Utah fund of funds;
(c) negotiate the terms of a contract with the investment fund allocation manager;
(d) execute the contract with the selected investment fund manager on behalf of the
Utah fund of funds; 
and
[
(e) receive funds paid by designated investors for the issuance of certificates by the
board for private investment in the Utah fund of funds;
]
[
(f)
] 
(e)
 receive investment returns from the Utah fund of funds[
; and
]
.
[
(g) establish the redemption reserve to be used by the corporation to:
]
[
(i) redeem certificates; and
]
[
(ii) provide money for the state as directed by statute.
]
(3) The corporation may not:
(a) exercise governmental functions;
(b) have members;
(c) pledge the credit or taxing power of the state or any political subdivision of the
state; or
(d) make its debts payable out of any money except money of the corporation.
(4) The obligations of the corporation are not obligations of the state or any political
subdivision of the state within the meaning of any constitutional or statutory debt limitations,
but are obligations of the corporation payable solely and only from the corporation's funds.
(5) The corporation may:
(a) engage consultants and legal counsel;
(b) expend funds;
(c) invest funds;
(d) issue debt and equity, and borrow funds;
(e) enter into contracts;
(f) insure against loss;
(g) hire employees; and
(h) perform any other act necessary to carry out its purposes.
(6) (a) The corporation shall[
, in consultation with the board,
] publish on or before
September 1 an annual report of the activities conducted by the Utah fund of funds and submit,
in accordance with Section 
68-3-14
, the written report to:
(i) the governor;
(ii) the Business, Economic Development, and Labor Appropriations Subcommittee;
(iii) the Business and Labor Interim Committee; and
(iv) the Retirement and Independent Entities Interim Committee.
(b) The annual report shall:
(i) be designed to provide clear, accurate, and accessible information to the public, the
governor, and the Legislature;
(ii) include a copy of the audit of the Utah fund of funds described in Section
63N-6-405
;
(iii) include a detailed balance sheet, revenue and expenses statement, and cash flow
statement;
[
(iv) include detailed information regarding new fund commitments made during the
year, including the amount of money committed;
]
[
(v) include the net rate of return of the Utah fund of funds from the inception of the
Utah fund of funds, after accounting for all expenses, including administrative and financing
costs;
]
[
(vi)
] 
(iv)
 include detailed information regarding:
(A) realized gains from investments and any realized losses; and
(B) unrealized gains and any unrealized losses based on the net present value of
ongoing investments;
[
(vii)
] 
(v)
 include detailed information regarding all yearly expenditures, including:
(A) administrative, operating, and financing costs;
(B) aggregate compensation information for full- and part-time employees, including
benefit and travel expenses; and
(C) expenses related to the allocation manager;
[
(viii)
] 
(vi)
 include detailed information regarding all funding sources for
administrative, operations, and financing expenses, including expenses charged by or to the
Utah fund of funds, including management and placement fees;
[
(ix) review the progress of the investment fund allocation manager in implementing
its investment plan and provide a general description of the investment plan;
]
[
(x)
] 
(vii)
 for each individual fund that the Utah fund of funds is invested in that
represents at least 5% of the net assets of the Utah fund of funds, include the name of the fund,
the total value of the fund, the fair market value of the Utah fund of funds' investment in the
fund, and the percentage of the total value of the fund held by the Utah fund of funds; 
and
[
(xi) include the number of companies in Utah where an investment was made from a
fund that the Utah fund of funds is invested in, and provide an aggregate count of new full-time
employees in the state added by all companies where investments were made by funds that the
Utah fund of funds is invested in;
]
[
(xii)
] 
(viii)
 include an aggregate total value for all funds the Utah fund of funds is
invested in[
, and an aggregate total amount of money invested in the state by the funds the Utah
fund of funds is invested in;
]
.
[
(xiii) describe any redemption or transfer of a certificate issued under this part;
]
[
(xiv) include actual and estimated potential appropriations the Legislature will be
required to provide as a result of redeemed certificates or tax credits during the following five
years;
]
[
(xv) include an evaluation of the state's progress in accomplishing the purposes stated
in Section 
63N-6-102
; and
]
[
(xvi) be directly accessible to the public via a link from the main page of the Utah
fund of fund's website.
]
[
(c) The annual report may not identify a specific designated investor who has
redeemed or transferred a certificate.
]
[
(7) (a) On or before December 1, 2021, the corporation shall provide a written report
to the president of the Senate and the speaker of the House of Representatives that includes a
detailed plan, time line, and recommendations for the future of the corporation.
]
[
(b) The plan shall include recommendations describing:
]
[
(i) the divestment of the state from any future liability of the corporation and a time
line for realizing gains and winding down all investments from the current Utah fund of funds;
]
[
(ii) any plans that the corporation has to raise capital for a fund similar to the current
Utah fund of funds that does not require certificates, contingent tax credits, or other guarantees
from the state to be provided to equity investors;
]
[
(iii) whether the corporation should continue as an independent quasi-public nonprofit
corporation under Title 63E, Chapter 2, Independent Corporations Act;
]
[
(iv) if the corporation recommends continuing as an independent quasi-public
nonprofit corporation, why the corporation should continue, and what benefits the corporation
will provide to the state in terms of economic development, job growth, or other benefits;
]
[
(v) whether the corporation should be liquidated or dissolved under Section
63N-3-306
;
]
[
(vi) if the corporation recommends that the corporation be liquidated or dissolved, a
detailed plan and time line for dissolution that includes recommendations regarding how assets
and realized gains of the corporation should be distributed;
]
[
(vii) whether the corporation should be privatized in accordance with Title 63E,
Chapter 1, Part 4, Privatization of Independent Entities; and
]
[
(viii) if the corporation recommends that the corporation be privatized, a detailed plan
and time line for privatization that includes recommendations regarding the distribution of
assets and realized gains of the corporation.
]
[
(8) In relation to the written report described in Subsection (7), the corporation:
]
[
(a) may seek potential commitments through letters of intent or other means to
demonstrate the viability of raising capital for a new fund as described in Subsection (7)(b)(ii);
and
]
[
(b) may not enter into any binding commitments related to a new fund as described in
Subsection (7)(b)(ii), unless the corporation receives specific authorization through legislation
passed by the Legislature after the report described in Subsection (7) is provided.
]
Section 5. Section 
63N-6-303
 is amended to read:
63N-6-303.
Board of directors.
[
(1) The initial board of directors of the corporation shall consist of five members.
]
[
(2) The persons elected to the initial board of directors by the appointment committee
shall include persons who have an expertise, as considered appropriate by the appointment
committee, in the areas of:
]
[
(a) the selection and supervision of investment managers;
]
[
(b) fiduciary management of investment funds; and
]
[
(c) other areas of expertise as considered appropriate by the appointment committee.
]
[
(3) After the election of the initial board of directors, vacancies in the board of
directors of the corporation shall be filled by election by the remaining directors of the
corporation.
]
[
(4) (a) Board members shall serve four-year terms, except that of the five initial
members:
]
[
(i) two shall serve four-year terms;
]
[
(ii) two shall serve three-year terms; and
]
[
(iii) one shall serve a two-year term.
]
[
(b) Board members shall serve until their successors are elected and qualified and may
serve up to a maximum of two successive terms.
]
[
(c) A majority of the board members may remove a board member for cause.
]
[
(d) (i) The board shall select a chair by majority vote.
]
[
(ii) The chair's term is for one year, which may be extended annually by a majority
vote of the members of the board of directors.
]
(1) The corporation's board of directors comprises the state treasurer and two
individuals designated by the state treasurer.
[
(5)
] 
(2)
 [
Three
] 
Two
 members of the board are a quorum for the transaction of
business.
[
(6)
] 
(3)
 Members of the board of directors:
(a) are subject to any restrictions on conflicts of interest specified in the organizational
documents of the corporation; 
and
[
(b) shall annually disclose any venture capital and private equity interests to the
corporation; and
]
[
(c)
] 
(b)
 may not participate in a vote by the board of directors related to an investment
by the Utah fund of funds, if the member has an interest in the investment.
[
(7)
] 
(4)
 Directors of the corporation:
(a) shall be compensated for direct expenses and mileage; and
(b) may not receive a director's fee or salary for service as directors.
Section 6. Section 
63N-6-305
 is amended to read:
63N-6-305.
Management fee -- Additional financial assistance.
(1) The corporation may charge a management fee on assets under management in the
Utah fund of funds.
[
(2) The fee shall:
]
[
(a) be in addition to any fee charged to the Utah fund of funds by the venture capital
investment fund allocation manager selected by the corporation; and
]
[
(b) be charged only to pay for reasonable and necessary costs of the corporation.
]
[
(3) The corporation may apply for and, when qualified, receive financial assistance
from the Industrial Assistance Account under Chapter 3, Part 1, Industrial Assistance Account,
and under rules made by the Board of Business and Economic Development in accordance with
Title 63G, Chapter 3, Utah Administrative Rulemaking Act, to help establish the program
authorized under this part.
]
(2) The management fee described in Subsection (1) may not, in a calendar year,
exceed 1% of the asset value of the Utah fund of funds on the immediately preceding
December 31.
(3) In addition to the management fee, the Utah fund of funds will pay directly or
reimburse the corporation for out-of-pocket expenses, including fund administration, tax and
audit fees and costs, investment and monitoring costs, and similar expenses incurred in
connection with the operation of the corporation or the Utah fund of funds.
Section 7. Section 
63N-6-401
 is amended to read:
63N-6-401.
Organization of Utah fund of funds.
(1) The corporation shall organize
, and be the sole member and manager of,
 the Utah
fund of funds.
(2) The Utah fund of funds shall [
make investments in venture capital and private
equity partnerships or entities in a manner and for the following purposes:
] 
hold and manage
investments made by the Utah fund of funds and proceeds from those investments until
disbursed to the restricted account or used to pay the fees and expenses described in this
chapter.
[
(a) to encourage the availability of a wide variety of venture capital in the state;
]
[
(b) to strengthen the economy of the state;
]
[
(c) to help business in the state gain access to sources of capital;
]
[
(d) to help build a significant, permanent source of capital available to serve the needs
of businesses in the state; and
]
[
(e) to accomplish all these benefits in a way that minimizes the use of contingent tax
credits.
]
(3) The Utah fund of funds shall be organized[
: (a)
] as a [
limited partnership or
]
limited liability company [
under Utah law having the corporation and qualified investment
professionals as the general partner or manager;
]
, with the corporation as the sole member and
manager.
[
(b) to provide for equity interests for designated investors, which provide for a
designated scheduled return and a scheduled redemption in accordance with rules made by the
board pursuant to Title 63G, Chapter 3, Utah Administrative Rulemaking Act; and
]
[
(c) to provide for loans by or the issuance of debt obligations to designated investors
that provide for designated payments of principal, interest, or interest equivalent in accordance
with rules made by the board pursuant to Title 63G, Chapter 3, Utah Administrative
Rulemaking Act.
]
[
(4) Public money may not be invested in the Utah fund of funds.
]
(4) The Utah fund of funds may not invest money after May 4, 2022, unless the Utah
fund of funds committed to the investment before May 4, 2022.
(5) The corporation may disburse proceeds of investments from the Utah fund of funds
into the restricted account at any time the corporation determines is in the best interest of the
state, leaving sufficient funds to pay expenses and fees owed by, or needed to wind up the
affairs of, the corporation or the Utah fund of funds.
(6) The state treasurer shall notify the Executive Appropriations Committee when all
investments held by the Utah fund of funds mature and the state treasurer determines it is
advisable to complete winding up the affairs of the corporation.
Section 8. Section 
63N-6-402
 is amended to read:
63N-6-402.
Compensation from the Utah fund of funds to the corporation --
Transfer to restricted account.
(1) The corporation shall be compensated for its involvement in the Utah fund of funds
through the payment of the management fee described in Section 
63N-6-305
.
[
(2) Before any returns may be reinvested in the Utah fund of funds:
]
[
(a) any returns shall be paid to designated investors, including the repayment by the
Utah fund of funds of any outstanding loans;
]
[
(b) any returns in excess of those payable to designated investors shall be deposited in
the redemption reserve and shall be:
]
[
(i) held by the corporation as a first priority reserve for the redemption of certificates;
and
]
[
(ii) used by the corporation to provide money for the state as directed by statute;
]
[
(c) any returns received by the corporation from investment of amounts held in the
redemption reserve that are not used to provide money for the state as directed by statute shall
be added to the redemption reserve until the redemption reserve has reached a total of
$250,000,000; and
]
[
(d) if at the end of a calendar year the redemption reserve exceeds the $250,000,000
limitation referred to in Subsection (2)(c), the corporation may reinvest the excess in the Utah
fund of funds.
]
[
(3) Funds held by the corporation in the redemption reserve shall be invested in
accordance with Title 51, Chapter 7, State Money Management Act.
]
[
(4)
] 
(2)
 (a) [
By June 30, 2021
] 
On or before June 30, 2022
, the [
corporation
] 
Utah
fund of funds
 shall transfer [
$20,000,000 from the redemption reserve or other assets of the
corporation
] 
$15,000,000
 to the state treasurer.
(b) The state treasurer shall deposit the money described in Subsection [
(4)
] 
(2)
(a) into
the restricted account.
Section 9. Section 
63N-6-404
 is amended to read:
63N-6-404.
Powers of Utah fund of funds.
[
(1)
] The Utah fund of funds may:
[
(a)
] 
(1)
 engage consultants and legal counsel;
[
(b)
] 
(2)
 expend funds;
[
(c) invest funds;
]
[
(d) issue debt and borrow funds;
]
[
(e)
] 
(3)
 enter into contracts; 
and
[
(f) insure against loss;
]
[
(g) hire employees;
]
[
(h) issue equity interests to designated investors that have purchased equity interest
certificates from the board; and
]
[
(i)
] 
(4)
 perform any other act necessary to carry out its purposes.
[
(2) (a) The Utah fund of funds shall engage a venture capital investment fund
allocation manager.
]
[
(b) The compensation paid to the fund manager shall be in addition to the
management fee paid to the corporation under Section 
63N-6-305
.
]
[
(3) The Utah fund of funds may:
]
[
(a) open and manage bank and short-term investment accounts as considered
necessary by the venture capital investment fund allocation manager; and
]
[
(b) expend money to secure investment ratings for investments by designated
investors in the Utah fund of funds.
]
Section 10. Section 
63N-6-405
 is amended to read:
63N-6-405.
Annual audits.
(1) Each calendar year, an audit of the activities of the Utah fund of funds shall be
made as described in this section.
(2) (a) The audit shall be conducted by:
(i) the state auditor; or
(ii) an independent auditor engaged by the state auditor.
(b) An independent auditor used under Subsection (2)(a)(ii) must have no business,
contractual, or other connection to:
(i) the corporation; or
(ii) the Utah fund of funds.
(3) The corporation shall pay the costs associated with the annual audit.
(4) The annual audit report shall:
(a) be delivered to:
(i) the corporation; and
(ii) the [
board
] 
state treasurer
;
(b) include a valuation of the assets owned by the Utah fund of funds as of the end of
the reporting year;
(c) include an opinion regarding the accuracy of the information provided in the annual
report described in Subsection 
63N-6-301
(6); 
and
[
(d) include an opinion regarding the accuracy of the information that supports the
economic development impact in the state of the Utah fund of funds as described in
Subsections 
63N-6-203
(3)(b)(ii) and 
63N-6-406
(3); and
]
[
(e)
] 
(d)
 be completed on or before September 1 for the previous calendar year so that
it may be included in the annual report described in Subsection 
63N-6-301
(6).
Section 11. Section 
63N-6-410
 is amended to read:
63N-6-410.
Powers and effectiveness.
(1) This chapter may not be construed as a restriction or limitation upon any power
which the board might otherwise have under any other law of this state and the provisions of
this chapter are cumulative to those powers.
(2) This chapter shall be construed to provide a complete, additional, and alternative
method for performing the duties authorized and shall be regarded as supplemental and
additional powers to those conferred by any other laws.
[
(3) With respect to a debt-based private investment only, the provisions of any
contract entered into by the board or the Utah fund of funds may not be compromised,
diminished, invalidated, or affected by the:
]
[
(a) level, timing, or degree of success of the Utah fund of funds or the investment
funds in which the Utah fund of funds invests; or
]
[
(b) extent to which the investment funds are:
]
[
(i) invested in Utah venture capital projects; or
]
[
(ii) successful in accomplishing any economic development objectives.
]
Section 12. 
Repealer.
This bill repeals:
Section 
63N-6-101
,
Title.
Section 
63N-6-102
,
Findings -- Purpose.
Section 
63N-6-201
,
Utah Capital Investment Board.
Section 
63N-6-202
,
Board members -- Meetings -- Expenses.
Section 
63N-6-203
,
Board duties and powers.
Section 
63N-6-302
,
Incorporator -- Appointment committee.
Section 
63N-6-304
,
Investment manager.
Section 
63N-6-306
,
Dissolution.
Section 
63N-6-403
,
Investments by Utah fund of funds.
Section 
63N-6-406
,
Certificates and contingent tax credits.
Section 
63N-6-407
,
Transfer and registration of certificates.
Section 
63N-6-408
,
Redemption of certificates.
Section 
63N-6-409
,
Use of commitments to redeem certificates.
Section 
63N-6-411
,
Permissible investments.
Section 13. 
Effective date.
This bill takes effect on July 1, 2022, except that the changes to Sections 
63N-6-401
and 
63N-6-402
 take effect on May 4, 2022.