Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 530 (2025GS)

Sponsor

Rep. Peterson, Karen M.

Final action

Governor Signed 3/27/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• reorganizes the Utah Innovation Lab and creates the Nucleus Institute (institute);
• requires the formation of a board of directors of the institute and provides for an institute executive director;
• outlines the duties of the institute board and institute executive director;
• amends the governance and structure of the Utah innovation fund (fund) under the institute;
• requires the formation of an investment committee for the fund;
• outlines the duties of the investment committee and fund;
• requires reporting and auditing; and
• makes technical and conforming changes.

Every vote on this bill

Bill text

52
63N-21-101
63N-21-201
53B-37-103
63N-21-202
63N-21-203
53B-37-203
63N-21-301
53B-37-302
53B-37-303
53B-37-304
63N-21-401
63N-21-402
63N-21-101
63N-21-201
53B-37-103
63N-21-202
63N-21-203
53B-37-203
63N-21-301
53B-37-302
53B-37-303
53B-37-304
63N-21-401
63N-21-402
0
Utah Innovation Lab Modifications
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Karen M. Peterson
Senate Sponsor: Kirk A. Cullimore
LONG TITLE
General Description:
This bill reorganizes the Utah Innovation Lab into the Nucleus Institute and amends the 
Utah innovation fund.
Highlighted Provisions:
This bill:
reorganizes the Utah Innovation Lab and creates the Nucleus Institute (institute);
requires the formation of a board of directors of the institute and provides for an institute 
executive director;
outlines the duties of the institute board and institute executive director;
amends the governance and structure of the Utah innovation fund (fund) under the 
institute;
requires the formation of an investment committee for the fund;
outlines the duties of the investment committee and fund;
requires reporting and auditing; and
makes technical and conforming changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
53B-37-103
, Utah Code Annotated 1953
53B-37-203
, Utah Code Annotated 1953
53B-37-302
, Utah Code Annotated 1953
53B-37-303
, Utah Code Annotated 1953
53B-37-304
, Utah Code Annotated 1953
RENUMBERS AND AMENDS:
53B-37-101
, (Renumbered from 63N-21-101, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-102
, (Renumbered from 63N-21-201, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-201
, (Renumbered from 63N-21-202, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-202
, (Renumbered from 63N-21-203, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-301
, (Renumbered from 63N-21-301, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-305
, (Renumbered from 63N-21-401, as enacted by Laws of Utah 2023, 
Chapter 38)
53B-37-306
, (Renumbered from 63N-21-402, as enacted by Laws of Utah 2023, 
Chapter 38)
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
53B-37-101
, which is renumbered from Section 63N-21-101 is renumbered 
and amended to read:
37. NUCLEUS INSTITUTE ACT
1. Nucleus Institute
63N-21-101
53B-37-101
. Definitions.
As used in this chapter:
(1)
"Board" means the board of directors of the innovation lab, as described in Section 
63N-21-202
.
(2)
"Innovation lab" means the Utah Innovation Lab created in Section 
63N-21-201
.
(1)
"Executive director" means the executive director of the institute appointed under 
Section 
53B-37-203
.
(2)
"Institute board" means the board of directors of the Nucleus Institute as described in 
Section 
53B-37-201
.
(3)
"Investment committee" means the investment committee of the Utah innovation fund 
created in Section 
53B-37-302
.
(4)
"Nucleus Institute" or "institute" means the Nucleus Institute created in Section 
53B-37-102
.
(3)
(5)
"Qualified business" means a business entity that:
(a)
is established to commercialize a technology, product, or service developed 
through
in partnership with
 a technology commercialization program at a public or private 
institution of higher education in the state; and
(b)
maintains the business's principal business operations in the state.
(4)
(6)
"Qualified investment" means any distribution or payment of funds to a qualified 
business from the Utah innovation fund, including:
(a)
a direct investment of capital in a qualified business for the purchase of shares of 
stock;
(b)
a secured loan or revolving line of credit to a qualified business; or
(c)
a financial grant to a qualified business.
(5)
(7)
"Utah innovation fund" means a limited liability company organized under Section 
63N-21-301
53B-37-301
.
Section 2, Section 
53B-37-102
, which is renumbered from Section 63N-21-201 is renumbered 
and amended to read:
63N-21-201
53B-37-102
. Creation of Nucleus Institute -- Status and 
applicability of other law -- Powers and purposes.
(1)
There is created the 
Utah Innovation Lab
Nucleus Institute
.
(2)
The 
innovation lab
institute
 is:
(a)
an independent, nonprofit, quasi-public corporation as defined in Section 
63E-1-102
; 
and
(b)
subject to and governed by Sections 
63E-2-106
, 
63E-2-107
, 
63E-2-108
,
63E-2-109
,
63E-2-110
, and 
63E-2-111
, but is not otherwise subject to or governed by 
Title 63E, 
Independent Entities Code
.
(3)
The institute and the Utah innovation fund are not subject to:
(a)
Title 52, Chapter 4, Open and Public Meetings Act; or
(b)
Title 63G, Chapter 2, Government Records Access and Management Act.
(4)
Pursuant to Subsection 
53B-1-402(2)(p)
(i), in coordination with the board and the 
commissioner, the institute shall promote efficiency and support of the Utah System of 
Higher Education on commercialization efforts as provided in this chapter.
(3)
(5)
The 
innovation lab
institute
 shall
:
(a)
organize and administer the Utah innovation fund
.
; and
(b)
coordinate and support innovation districts that have a connection with higher 
education.
(4)
(6)
The 
innovation lab
institute
 may:
(a)
engage consultants and legal counsel;
(b)
invest and expend funds;
(c)
apply for grants;
(c)
(d)
enter into contracts;
(d)
(e)
insure against loss;
(e)
(f)
receive private donations
 to be used by the Utah innovation fund for qualified 
investments
;
(f)
(g)
hire employees;
(g)
charge a fee on assets under management in the Utah innovation fund to pay for 
reasonable and necessary costs of the innovation lab, including the costs of the 
annual audit required under Section 
63N-21-402
; and
(h)
sue and be sued in the institute's own name; and
(h)
(i)
perform any other act necessary to carry out the purposes of the 
innovation lab
institute
.
(5)
(7)
The 
innovation lab
institute
 may not:
(a)
issue debt or borrow funds;
(b)
exercise governmental functions;
(c)
have members; or
(d)
pledge the credit or taxing power of the state or any political subdivision of the state.
(6)
The innovation lab shall be liquidated and dissolved upon the dissolution of the Utah 
innovation fund.
Section 3, Section 
53B-37-103
 is enacted to read:
53B-37-103
. Office facilities, clerical, and administrative support for the Nucleus 
Institute.
(1)
The Utah Board of Higher Education shall provide to the institute, by agreement, 
administrative support, office facilities, and space.
(2)
The Utah Board of Higher Education may levy reasonable charges or fees against the 
institute pursuant to the agreement for the services provided by the Utah Board of 
Higher Education.
Section 4, Section 
53B-37-201
, which is renumbered from Section 63N-21-202 is renumbered 
and amended to read:
2. Nucleus Institute Governance
63N-21-202
53B-37-201
. Board of directors -- Membership -- Limitations.
(1)
The 
innovation lab
institute
 shall be governed by a board of directors which shall 
manage and conduct the business and affairs of the 
innovation lab
institute
.
(2)
The institute board shall consist of seven voting members as follows:
(a)
the executive director, appointed as described in Section 
53B-37-203
;
(b)
the director of the Talent Ready Utah Program, described in Section 
53B-34-103
; and
(c)
five individuals with relevant experience, jointly appointed by the commissioner, the 
executive director, and the director of the Talent Ready Utah Program described in 
Section 
53B-34-103
.
(2)
The board shall consist of seven voting members as follows:
(a)
one individual who represents technology commercialization initiatives within the 
Utah system of higher education, appointed by the commissioner of higher education, 
or the individual's designee;
(b)
one individual who leads technology commercialization efforts at the University of 
Utah, appointed by the president of the University of Utah, or the individual's 
designee;
(c)
one individual who leads technology commercialization efforts at Utah State 
University, appointed by the president of Utah State University, or the individual's 
designee;
(d)
the chief executive officer of World Trade Center Utah, or the chief executive 
officer's designee; and
(e)
three representatives of private industry, appointed by the members described in 
Subsections 
(2)(a)
 through 
(d)
.
(3)
(a)
A member described in Subsection 
(2)(e)
(2)(c)
:
(i)
shall serve a term of two years; and
(ii)
may serve more than one term.
(b)
The commissioner, jointly with the executive director and the director of the Talent 
Ready Utah Program described in Section 
53B-34-103
, may remove a member from 
the institute board.
(b)
(c)
If a vacancy occurs for a member described in Subsection 
(2)(e)
(2)(c)
, the 
members described in Subsections 
(2)(a)
 through 
(d)
commissioner, jointly with the 
executive director and the director of the Talent Ready Utah Program described in 
Section 
53B-34-103
,
 shall appoint a replacement to serve the remainder of the 
member's term.
(4)
(a)
The board may appoint up to two additional nonvoting members to provide 
industry and technical expertise.
(b)
A member of the board appointed under Subsection 
(4)(a)
 serves at the pleasure of 
the board and may be removed and replaced at any time, with or without cause.
(4)
The executive director shall serve as the chair of the institute board.
(5)
The board shall elect a chair from the board's members, who shall serve a two-year 
term.
(6)
(5)
(a)
A majority of the members of the 
institute 
board constitutes a quorum of the 
institute 
board.
(b)
The action by a majority of the members of a quorum constitutes the action of the 
institute 
board.
(7)
(6)
A member of the 
institute 
board:
(a)
is subject to any restrictions on conflicts of interest specified in the organizational 
documents of the 
innovation lab
institute
;
(b)
shall annually disclose any private equity interests to the innovation lab;
(c)
(b)
may not 
participate in
influence
 a vote by the 
board
investment committee
related to a qualified investment by the Utah innovation fund, if the member has an 
interest in the qualified investment; and
(d)
(c)
except for the executive director, 
may not receive compensation or benefits for 
the member's service.
Section 5, Section 
53B-37-202
, which is renumbered from Section 63N-21-203 is renumbered 
and amended to read:
63N-21-203
53B-37-202
. Institute board duties and powers.
(1)
The 
institute 
board shall:
(a)
manage and conduct the business and affairs of the 
innovation lab
institute
 and 
determine all questions of 
innovation lab
institute and Utah innovation fund
 policy;
(b)
provide strategic oversight for all institute initiatives;
(c)
support and guide workforce development, innovation, and policy integration across 
institutions and industry;
(b)
consistent with this chapter, establish policies, procedures, and strategies for the 
administration of the Utah innovation fund, including eligibility criteria, application 
requirements, performance metrics, and reporting requirements for a qualified 
business to receive a qualified investment from the Utah innovation fund; and
(d)
consistent with this chapter, oversee the Utah innovation fund and investment 
committee;
(e)
coordinate efforts and collaborations across innovation districts;
(f)
create opportunities for students through projects and partnerships;
(g)
set compensation and incentives for the executive director;
(h)
advance the purposes of the Utah innovation fund as described in Section 
53B-37-301
; 
and
(i)
consider investment proposals and determine whether a proposal furthers the 
objectives of the fund.
(c)
approve any decision of the Utah innovation fund to make a qualified investment.
(2)
The 
institute 
board may establish independent committees for the purpose of assisting 
the 
institute 
board in an advisory role.
(3)
In coordination with the Governor's Office of Economic Opportunity, the institute board 
shall convene and facilitate discussions with industry, education, and policy makers to 
promote regulatory innovation.
Section 6, Section 
53B-37-203
 is enacted to read:
53B-37-203
. Executive director appointment -- Duties and powers.
(1)
The commissioner shall appoint an executive director for the institute.
(2)
The executive director shall serve as the chair of the institute board as described in 
Section 
53B-37-202
.
(3)
The executive director shall:
(a)
manage the day-to-day operations of the institute and the Utah innovation fund;
(b)
execute the policies of the institute board;
(c)
oversee the investment and expenditure of funds;
(d)
oversee qualified investments made by the Utah innovation fund;
(e)
assess reasonable fees for management of assets in the Utah innovation fund for 
reasonable costs of the Utah innovation fund;
(f)
consult with the institute board regarding policies and direction of the institute;
(g)
prepare an operating budget for the institute and submit the operating budget to the 
Utah Board of Higher Education for approval;
(h)
adopt a budget submitted by the chair of the investment committee;
(i)
establish job descriptions and, within budgetary constraints, employ staff necessary to 
accomplish the purposes of the institute and Utah innovation fund; and
(j)
execute other duties as assigned by the institute board.
(4)
The executive director may:
(a)
hire and supervise necessary staff for the institute;
(b)
manage contracts and collaborations with consultants; and
(c)
enter into contracts on behalf of the institute.
Section 7, Section 
53B-37-301
, which is renumbered from Section 63N-21-301 is renumbered 
and amended to read:
3. Utah Innovation Fund
63N-21-301
53B-37-301
. Organization of Utah innovation fund -- Powers and 
purposes -- Use of investment proceeds.
(1)
(a)
The 
innovation lab
institute
 shall organize, and be the sole member and manager 
of, the Utah innovation fund.
(b)
The Utah innovation fund shall be organized as a limited liability company.
(c)
The Utah innovation fund may:
(i)
engage consultants and legal counsel;
(ii)
invest and expend funds;
(iii)
use funds for operations of the Utah innovation fund;
(iii)
(iv)
enter into contracts;
(iv)
(v)
insure against loss;
(v)
(vi)
hire employees; and
(vi)
(vii)
perform any other act necessary to carry out the purposes of the Utah 
innovation fund.
(2)
The Utah innovation fund shall, subject to 
board
investment committee
 approval, make 
qualified investments in a manner and for the following purposes:
(a)
to advance innovative technologies developed in Utah;
(b)
to strengthen Utah's economy and facilitate job creation;
(c)
to help qualified businesses gain access to capital;
(d)
to attract entrepreneurs and innovation to Utah;
(e)
to facilitate the commercialization of technologies discovered, advanced, or 
developed at state institutions of higher education;
(f)
to advance the competitiveness of Utah businesses in the global economy;
(g)
to ensure that the Utah innovation fund remains financially self-sustaining; and
(h)
to encourage other investors to invest in qualified businesses alongside the Utah 
innovation fund.
(3)
The Utah innovation fund shall hold and manage qualified investments made by the 
Utah innovation fund and the proceeds of those qualified investments.
(4)
The Utah innovation fund may charge a fee on assets under management in the Utah 
innovation fund to pay for reasonable and necessary costs of the Utah innovation fund, 
including the costs of the annual audit required under Section 
53B-37-306
.
Section 8, Section 
53B-37-302
 is enacted to read:
53B-37-302
. Utah innovation fund investment committee.
(1)
The Utah innovation fund shall be governed by an investment committee.
(2)
The investment committee shall consist of five members appointed by the institute 
board.
(3)
(a)
A member of the investment committee:
(i)
shall serve a term of two years; and
(ii)
may serve more than one term.
(b)
If a vacancy occurs for a member of the investment committee, the institute board 
shall appoint a replacement to serve the remainder of the member's term.
(c)
The commissioner or the institute board may remove a member of the investment 
committee for cause.
(4)
The institute board shall appoint a chair of the investment committee.
(5)
The investment committee may appoint up to two additional nonvoting members to 
provide industry and technical expertise.
(6)
(a)
A member of the investment committee:
(i)
shall have significant experience in venture capital or entrepreneurship;
(ii)
is subject to any restrictions on conflicts of interest specified in the organizational 
documents of the institute;
(iii)
may not participate in a vote by the investment committee related to a qualified 
investment by the Utah innovation fund if the member has an interest in the 
qualified investment; and
(iv)
except as provided in Subsection 
(6)
(b), may not receive compensation or 
benefits for the member's service.
(b)
The chair of the investment committee may receive compensation or benefits for the 
chair's service.
(7)
(a)
A majority of the members of the investment committee constitutes a quorum of 
the investment committee.
(b)
The action by a majority of the members of a quorum constitutes the action of the 
investment committee.
Section 9, Section 
53B-37-303
 is enacted to read:
53B-37-303
. Utah innovation fund investment committee duties.
(1)
The investment committee shall:
(a)
comply with guidelines and directives from the institute board;
(b)
manage and conduct business affairs of the Utah innovation fund;
(c)
establish policies for the management of the Utah innovation fund, including:
(i)
an investment management code of conduct and associated compliance policy;
(ii)
a policy for the strategic allocation of Utah innovation fund assets; and
(iii)
a policy articulating the investment committee's investment philosophy for Utah 
innovation fund assets; and
(d)
ensure that policies adopted by the investment committee are:
(i)
consistent with this chapter, the Utah Constitution, and other applicable law;
(ii)
consistent with sound fiduciary principles; and
(iii)
designed to maintain the integrity of the Utah innovation fund and prevent the 
misapplication of money in the Utah innovation fund.
(2)
The investment committee shall engage a third-party to audit the Utah innovation fund 
at least annually.
Section 10, Section 
53B-37-304
 is enacted to read:
53B-37-304
. Utah innovation fund investment committee chair -- Duties.
(1)
The institute board shall appoint and determine compensation for a chair of the 
investment committee.
(2)
The committee chair shall:
(a)
manage and execute the policies established by the institute board and the investment 
committee;
(b)
in consultation with the investment committee, manage qualified investments made 
by the Utah innovation fund;
(c)
annually submit to the institute:
(i)
a budget for the Utah innovation fund; and
(ii)
a financial plan for operations of the Utah innovation fund;
(d)
in accordance with generally accepted principles of fund accounting, establish a 
system to identify and account for Utah innovation fund assets;
(e)
maintain appropriate records of Utah innovation fund activities to enable auditors to 
conduct periodic audits as described in Section 
53B-37-306
; and
(f)
fulfill other duties as provided by the investment committee.
Section 11, Section 
53B-37-305
, which is renumbered from Section 63N-21-401 is renumbered 
and amended to read:
63N-21-401
53B-37-305
. Annual report.
(1)
On or before 
September
October
 1 of each year, the 
innovation lab
institute
 shall 
publish an annual report of the activities conducted by the Utah innovation fund and 
submit, in accordance with Section 
68-3-14
, the written report to:
(a)
the governor;
(b)
the Business, Economic Development, and Labor Appropriations Subcommittee;
(c)
(b)
the Economic Development and Workforce Services Interim Committee; and
(c)
the Executive Appropriations Committee.
(d)
the Retirement and Independent Entities Interim Committee.
(2)
The annual report shall:
(a)
be designed to provide clear, accurate, and accessible information to the public, the 
governor, and the Legislature;
(b)
include a copy of the annual audit required under Section 
63N-21-402
53B-37-306
;
(c)
describe the policies adopted by the board under Subsection 
63N-21-203(1)(b)
53B-37-303(1)(c)
;
(d)
include detailed information regarding:
(i)
the name and location of each qualified business that received capital from the 
Utah innovation fund;
(ii)
the amount of each qualified investment made by the Utah innovation fund;
(iii)
the aggregate amount of capital provided to qualified businesses;
 and
(iv)
realized gains from qualified investments and any realized losses;
 and
(v)
unrealized gains and any unrealized losses based on the net present value of 
ongoing qualified investments;
(e)
include detailed information regarding the 
innovation lab's
institute's
 yearly 
expenditures, including:
(i)
administrative, operating, and financing expenses; and
(ii)
aggregate compensation information for full-time and part-time employees, 
including benefit and travel expenses;
(f)
include detailed information regarding all funding sources for administrative, 
operating, and financing expenses, including any fees charged by the 
innovation lab
institute
 to the Utah innovation fund under Subsection 
63N-21-201(4)(g)
53B-37-203(3)(e)
; and
(g)
include an explanation of the Utah innovation fund's progress in achieving the 
purposes described in Subsection 
63N-21-301(2)
53B-37-301(2)
.
Section 12, Section 
53B-37-306
, which is renumbered from Section 63N-21-402 is renumbered 
and amended to read:
63N-21-402
53B-37-306
. Annual audit.
(1)
Each calendar year, an audit of the activities of the Utah innovation fund shall be 
conducted by:
(a)
the state auditor; or
(b)
an independent auditor engaged by the state auditor
the state auditor's designee
.
(2)
An independent auditor 
A designee 
described in Subsection 
(1)(b)
 may not have a 
business, contractual, or other connection to the 
innovation lab
institute
 or the Utah 
innovation fund.
(3)
The annual audit shall:
(a)
include a valuation of the assets owned by the Utah innovation fund as of the end of 
the reporting year, using market-standard techniques for assets typically held by early 
stage private investment and venture capital funds;
(b)
include an opinion regarding the accuracy of the information provided in the annual 
report described in Section 
63N-21-401
53B-37-305
; and
(c)
on or before September 1, be delivered to:
(i)
the 
innovation lab
institute
; and
(ii)
the state treasurer.
(4)
The 
innovation lab
institute
 shall pay the costs associated with the annual audit.
Section 13. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
3-7-25 10:25 PM