HB 530: Utah Innovation Lab Modifications - Utah

Amended 2/26/2025 10:02:394 → Substitute #1 · 5 edits

MODERATE

This bill substitutes a new version of HB 530 that reorganizes the Utah Innovation Lab into the Nucleus Institute and updates its governance structure. The main changes include renaming the entity, updating definitions to reflect the new name, modifying board composition requirements, and clarifying roles for the executive director and investment committee.

Scope change

The bill's scope changed from the Utah Innovation Lab to the Nucleus Institute, with updated statutory references and organizational structure under the Nucleus Institute Act.

DEFINITION

Updated definitions throughout the bill to replace 'Utah Innovation Lab' and 'innovation lab' with 'Nucleus Institute' and 'institute' respectively.

REQUIREMENT

Changed board composition requirements from seven members including the executive director to a structure with specific representatives from higher education, universities, World Trade Center Utah, and private industry.

Modified investment committee composition from five members appointed by the institute board to include specific experience requirements in venture capital or entrepreneurship.

Updated executive director appointment authority from the commissioner to the institute board chair role.

TECHNICAL

Corrected formatting and section numbering throughout the bill to align with the new Nucleus Institute Act structure.

Amended Excerpts 2/26/2025 10:02:394 → Amended 2/26/2025 10:02:394 · 5 edits

MODERATE

This bill reorganizes the Utah Innovation Lab into a new entity called the Nucleus Institute and updates related definitions and governance structures. The changes rename the organization, establish a board of directors, create an investment committee for the innovation fund, and modify eligibility criteria for qualified businesses and investments. These updates aim to streamline operations and clarify the institute's role in commercializing technology developed through partnerships with higher education institutions.

Scope change

The bill expands the scope by creating a new Nucleus Institute entity that replaces the Utah Innovation Lab, with new governance requirements including a board of directors and investment committee.

DEFINITION

Renamed 'Utah Innovation Lab' to 'Nucleus Institute' throughout the statute and updated related definitions.

Added new definition for 'qualified investment' to include direct investments, secured loans, revolving lines of credit, and financial grants.

REQUIREMENT

Established requirements for a board of directors and an investment committee to govern the Nucleus Institute and Utah innovation fund.

ELIGIBILITY

Updated definition of 'qualified business' to require commercialization of technology developed in partnership with higher education institutions.

TECHNICAL

Renumbered and reorganized Utah Code sections to reflect the new Nucleus Institute Act structure.

Enrolled → Amended Excerpts 2/26/2025 10:02:394 · 5 edits

MODERATE

This bill amends the Utah Innovation Lab to reorganize it into the Nucleus Institute and establishes new governance structures for the Utah Innovation Fund. The most significant change is modifying who can appoint the independent auditor for the fund, shifting from the state auditor alone to the state auditor in consultation with the executive director, while clarifying that the designee cannot have conflicts of interest.

Scope change

The bill's scope changed by renaming the Utah Innovation Lab to the Nucleus Institute and creating new entities including an institute board and investment committee with specific appointment and oversight powers.

REQUIREMENT

Changed the auditor appointment process for the Utah Innovation Fund from the state auditor alone to the state auditor selecting a designee in consultation with the executive director, with added restrictions preventing the designee from having business or contractual connections to the institute or fund.

Created new governance requirements including a seven-member institute board and a five-member investment committee with specific appointment processes, term limits, and conflict of interest restrictions.

DEFINITION

Added new definitions for 'Executive director', 'Institute board', 'Investment committee', and 'Nucleus Institute' to replace previous definitions related to the Innovation Lab.

ENFORCEMENT

Modified reporting requirements to include updated committee names and clarified audit delivery timelines and recipients.

TECHNICAL

Renumbered multiple Utah Code sections from the 63N-21 series to the 53B-37 series to conform with existing legislative numbering conventions.

Introduced → Enrolled · 7 edits · Mar 27, 2025

MODERATE

This bill reorganizes the Utah Innovation Lab into a new entity called the Nucleus Institute and updates its governance structure. The changes include renaming the organization, creating a new board of directors with specific member requirements, establishing an investment committee to oversee fund investments, and clarifying reporting and auditing requirements. The bill also updates the Utah innovation fund's organizational structure and investment purposes.

Scope change

The bill changes the name and legal structure of the organization from 'Utah Innovation Lab' to 'Nucleus Institute' and expands its governance framework with new oversight committees.

DEFINITION

Renamed the organization from 'Utah Innovation Lab' to 'Nucleus Institute' throughout the statute and updated related definitions.

REQUIREMENT

Created a new investment committee consisting of five members appointed by the institute board to oversee qualified investments.

Changed the board of directors composition from seven members including the executive director to seven members including one technology commercialization representative, one University of Utah representative, one Utah State University representative, the World Trade Center Utah CEO, and three private industry representatives.

Updated the executive director's role to serve as chair of the institute board, replacing the previous board chair election process.

Added requirements for annual audits conducted by independent auditors selected from a state auditor-approved list.

Expanded annual reporting requirements to include detailed information about qualified businesses receiving investments, investment amounts, gains and losses, and employee compensation.

TECHNICAL

Updated references to Utah Code sections to reflect the new numbering system and removed outdated section references.

Utah Innovation Lab Modifications

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