No. 40656 (Repeal): Rule R856-2. Distribution of Utah Science Technology and Research Commercialization Revenues

(Repeal)

DAR File No.: 40656
Filed: 08/10/2016 05:40:25 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Recent legislation (S.B. 166 from the 2016 General Session) has made the rule inapplicable.

Summary of the rule or change:

This rule is repealed in its entirety due to recent legislation (S.B. 166) making it inapplicable.

Statutory or constitutional authorization for this rule:

• Subsection 63M-2-302(h)

Anticipated cost or savings to:

the state budget:

None--The repeal of this rule is a result of S.B. 166 (2016), which made this rule unnecessary. The potential revenue impacts were reviewed as a part of S.B. 166, and the fiscal note attached to that legislation concluded that there was not likely to be a direct, measurable revenue impact.

local governments:

None--The repeal of this rule is a result of S.B. 166 (2016), which made this rule unnecessary. The potential revenue impacts were reviewed as a part of S.B. 166, and the fiscal note attached to that legislation concluded that there was not likely to be a direct, measurable revenue impact.

small businesses:

None--The repeal of this rule is a result of S.B. 166 (2016), which made this rule unnecessary. The potential revenue impacts were reviewed as a part of S.B. 166, and the fiscal note attached to that legislation concluded that there was not likely to be a direct, measurable revenue impact.

persons other than small businesses, businesses, or local governmental entities:

None--The repeal of this rule is a result of S.B. 166 (2016), which made this rule unnecessary. The potential revenue impacts were reviewed as a part of S.B. 166, and the fiscal note attached to that legislation concluded that there was not likely to be a direct, measurable revenue impact.

Compliance costs for affected persons:

None--There are no compliance costs associated with this repeal as it is obsolete and no longer applicable to any persons or entities in its current form.

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

No likely impact--The repeal of this rule is a result of S.B. 166 (2016), which made this rule unnecessary. The potential revenue impacts were reviewed as a part of S.B. 166, and the fiscal note attached to that legislation concluded that there was not likely to be a direct, measurable revenue impact. Nothing has transpired in the meantime that would change the analysis of this rule which was caused to become ineffective by that legislation, thus necessitating this repeal would not have any fiscal impact on businesses.

Ivy Estabrooke, Executive Director

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

Science Technology and Research Governing Auth.
Administration
60 E NORTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Koa Perlac at the above address, by phone at 801-538-8622, by FAX at 801-538-8881, 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:

10/03/2016

This rule may become effective on:

10/10/2016

Authorized by:

Ivy Estabrooke, Executive Director

RULE TEXT

R856. Science Technology and Research Governing Authority (Utah), Administration.

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

R856-2-1. Authority.

This rule is issued pursuant to Subsection 63M-2-302(1)(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 63M-2-301.

(C) "Governing authority" means the Utah Science Technology and Research Governing Authority created in Section 63M-2-301.

(D) "Utah Science Technology and Research Project" means the buildings and activities described in Title 63M, Chapter 2, 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 Technology Commercialization and Innovation Program created by Title 63M, Chapter 1, Part 7, Technology Commercialization and Innovation 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 Technology Commercialization and Innovation Program created by Title 63M, Chapter 1, Part 7, Technology Commercialization and Innovation 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: USTAR, commercialization revenues, distribution of revenues

Date of Enactment or Last Substantive Amendment: July 31, 2012

Authorizing, and Implemented or Interpreted Law: 63M-2-302(a)(f)]

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