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House concurs with Senate changes to Venture Capital Enhancement Act, adds oversight and investment limits
Summary
The House concurred with Senate amendments to first substitute House Bill 240 (Venture Capital Enhancement Act), approving a quasi‑governmental framework with state auditor oversight, reporting requirements and limits on fund‑of‑fund investments; sponsors said the changes strengthen constitutional fit and attract venture capital to Utah.
The House concurred March 5 with Senate amendments to first substitute House Bill 240, the Venture Capital Enhancement Act, sending the measure back to the Senate for signature.
Representative Wallace, who moved concurrence, described changes made in the Senate to convert the proposed capital investment corporation into a quasi‑governmental/nonprofit structure subject to state auditor oversight and periodic reporting. He noted new limits on investments by the fund of funds — for example, no more than 20% of committed capital to a single venture capital fund and restrictions on investing more than 50% with in‑state venture capital entities established before July 1, 2002 — and a revised sunset period.
Wallace said the changes were made after consultation with the state auditor and attorney general to ensure the entity fits the state constitution and added executive‑branch oversight by placing Executive Appropriations Committee review in the bill. He urged concurrence, saying the changes strengthen the bill and help attract new venture capital to Utah.
What happens next: The House’s concurrence returns first substitute HB240 to the Senate for the president’s signature. The bill creates oversight and investment restrictions intended to encourage new venture capital activity while limiting concentration risk.
