UtahH.B. 5302025 General SessionHouseWALLET

Utah Innovation Lab Modifications

Sponsored By: Karen M. Peterson (Republican)

Signed by Governor

TechnologyEducationHigher EducationGovernment Operations (State Issues)Independent EntitiesColleges and UniversitiesConstitutional OfficersState AuditorUtah System of Higher Education

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 2 costs, 2 mixed.

Annual audits track Utah fund money

The investment committee must set investment and conduct rules that protect fund money and follow applicable law and fiduciary duties. It must arrange an outside audit at least annually; the state auditor or a designee without institute or fund ties conducts the annual audit. The audit values assets using methods suited to early-stage investments and checks the annual report's accuracy. The institute pays audit costs and must receive the results, along with the state treasurer, by September 1 each year. By October 1, the institute must publish its annual report and send it to the governor and two legislative committees. The report includes the audit, investment policies, funded businesses, investment amounts, realized gains and losses, operating costs, funding sources, and progress toward the fund's goals.

Investment experts oversee Utah business funding

The Nucleus Institute board appoints five investment committee members with significant venture capital or entrepreneurship experience. Members serve renewable two-year terms, and up to two nonvoting experts may join them. The board appoints the chair and sets any pay or benefits; the chair manages investments, budgets, accounting, and audit records. Institute board members with an investment interest cannot influence the committee's vote, and interested committee members cannot vote on that investment. Institute board members receive no pay or benefits for board service, except the executive director.

Public access limits cover innovation fund

The Nucleus Institute and Utah Innovation Fund are exempt from Utah's open-meeting and public-records laws. The public cannot use those laws to require access to their meetings or records. Separate annual audit and public-report duties still apply.

Management fees cover Utah fund costs

The executive director sets reasonable fees for managing Utah Innovation Fund assets. The institute and fund may charge asset-management fees to cover reasonable costs, including the annual audit. These are fund costs, not general household charges. The law sets no fee rate, amount, or cap.

Utah business funding has eligibility limits

The Utah Innovation Fund can provide equity investments, secured loans, revolving credit, and grants to qualified businesses. A business must commercialize technology, products, or services developed with a commercialization program at a public or private Utah college. It must also keep its main business operations in Utah. The investment committee, rather than the institute board, must approve investments; the fund holds and manages them and their proceeds. The fund can also spend money on its own operations, and the law sets no investment amounts.

New institute leads Utah business innovation

Beginning May 7, 2025, the Nucleus Institute replaces the Utah Innovation Lab as an independent nonprofit with a public role. It manages the Utah Innovation Fund, supports college-linked innovation districts, and creates workforce and student opportunities. Its board coordinates industry, education, and policy discussions with the Governor's Office of Economic Opportunity. The higher education commissioner appoints its executive director, who chairs the board and manages daily operations, investments, contracts, and staff. The Utah Board of Higher Education approves its operating budget and must provide office space and administrative help by agreement. That board may charge reasonable fees for this support; the law sets no amount or appropriation.

Sponsors & Cosponsors

Sponsor

Karen M. Peterson
Republican • House

Cosponsors

Kirk A. Cullimore
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 116 • No: 0

Senate vote • 3/4/2025

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 26 • No: 0

Senate vote • 3/3/2025

Senate Comm - Favorable Recommendation

Yes: 5 • No: 0

House vote • 2/27/2025

House/ passed 3rd reading

Yes: 71 • No: 0

House vote • 2/25/2025

House Comm - Favorable Recommendation

Yes: 7 • No: 0