No. 29299 (New Rule): R856-2. Distribution of Utah Science Technology and Research Commercialization Revenues

DAR File No.: 29299
Filed: 12/01/2006, 12:10
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is issued pursuant to Subsection 63-38g-302(f).

Summary of the rule or change:

This rule relates to all revenues generated through the Utah Science Technology and Research Project.

State statutory or constitutional authorization for this rule:

Subsection 63-38g-302(f)

Anticipated cost or savings to:

the state budget:

There will be no anticipated cost to the state budget as this is an instruction detailing when and how the Utah Science Technology and Research Governing Authority allocates money earned through any innovation team technology commercialization process. Additionally, there will be no savings as this is a new process that will likely have no cost associated with it.

local governments:

There will be no anticipated cost to local government as this is an instruction detailing when and how the Utah Science Technology and Research Governing Authority allocates money earned through any innovation team technology commercialization process. Additionally, there will be no savings as this is a new process that will likely have no cost associated with it.

other persons:

There will be no anticipated cost to other persons as this is an instruction detailing when and how the Utah Science Technology and Research Governing Authority allocates money earned through any innovation team technology commercialization process. Additionally, there will be no savings as this is a new process that will likely have no cost associated with it.

Compliance costs for affected persons:

There will be no compliance cost to any affected persons as this is an instruction detailing when and how the Utah Science Technology and Research Governing Authority allocates money earned through any innovation team technology commercialization process. Additionally, there will be no savings as this is a new process that will likely have no cost associated with it.

Comments by the department head on the fiscal impact the rule may have on businesses:

As there will be no aggregate anticipated costs or savings to the state budget, local government, or other persons, and no compliance costs for affected persons, we anticipate no fiscal impact on businesses. Ted McAleer, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Science Technology and Research Governing Auth.
Administration
324 S STATE ST
SALT LAKE CITY UT 84111

Direct questions regarding this rule to:

Michael Driscoll at the above address, by phone at 801-538-8693, by FAX at 801-538-888, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

01/15/2007

This rule may become effective on:

01/22/2007

Authorized by:

Michael Driscoll, Program Specialist

RULE TEXT

R865. Science Technology and Research Governing Authority (USTAR), Administration.

R856-2. Distribution of Utah Science Technology and Research Commercialization Revenues.

R856-2-1. Authority.

This rule is issued pursuant to Title 63-38g-302(f).

 

R856-2-2. Scope of Rule.

This rule relates to all revenues generated through the Utah Science Technology and Research Project.

 

R856-2-3. Definitions.

(A) "Commercialization revenues" means dividends, realized capital gains, license fees, royalty fees, and other revenues received by a university as a result of commercial applications developed from the project, less:

(1) the portion of those revenues allocated to the inventor; and

(2) expenditures incurred by the university to legally protect the intellectual property beyond that paid out of the outreach program.

(B) "Executive director" means the person appointed by the governing authority under Section 63-38g-301.

(C) "Governing authority" means the Utah Science Technology and Research Governing Authority created in Section 63-38g-301.

(D) "Utah Science Technology and Research Project" means the buildings and activities described in Title 63-38g Part 2, Utah Science Technology and Research Project.

 

R856-2-4. Collection and Allocation of Initial Commercialization Revenues Generated Through the University of Utah and Utah State University.

(A) The University of Utah and Utah State University will collect commercialization revenues generated through the Utah Science Technology and Research project conducted at each respective university.

(B) The University of Utah and Utah State University will report commercialization revenues to the executive director on an annual basis 45 days after the end of the fiscal year.

(1) Annually, the money will be distributed 2/3 to Utah State University and the University of Utah, with the monies distributed proportionately based upon which university conducted the research that generated the license fees and royalty fees; and 1/3 to the Centers of Excellence program created by Chapter 38f, Part 7, Centers of Excellence Act.

(C) The University of Utah and Utah State University will continue to report commercialization revenues until the total reaches $15,000,000; at which point the allocation described in R856-2-5 will be commenced:

 

R856-2-5. Collection and Allocation of Subsequent Commercialization Revenues Generated Through the University of Utah and Utah State University.

(A) Subsequent to the initial $15,000,000 of commercialization revenues received, the University of Utah and Utah State University will collect commercialization revenues generated through the Utah Science Technology and Research project conducted at each respective university, and will report commercialization revenues to the executive director on an annual basis.

(1) Annually, the money will be distributed 50% to Utah State University and the University of Utah with the monies distributed proportionately based upon which university conducted the research that generated the commercialization revenues; and 50% to the governing authority or other entity designated by the state to be used for:

(i) the Centers of Excellence program created by Chapter 38f, Part 7, Centers of Excellence Act;

(ii) replacement or maintenance of equipment in the research buildings;

(iii) recruiting and paying additional research teams;

(iv) construction of additional research buildings; and

(v) other activities approved by the governing authority.

(2) the University of Utah and Utah State University will collect revenues generated through the Utah Science Technology and Research project conducted at each respective university.

(3) the University of Utah and Utah State University will report commercialization revenues to the executive director on an annual basis.

(4) the University of Utah and Utah State University will deposit the commercialization revenues at their discretion until:

(i) commercialization revenues are allocated according to the schedule set by the governing authority.

 

KEY: STAR, commercialization revenues, distribution of revenues

Date of Enactment or Last Substantive Amendment: 2007

Authorizing, and Implemented or Interpreted Law: 63-38g-302(f)