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House approves constitutional amendment letting state or public universities take equity for licensed research
Summary
The Utah House passed a constitutional amendment (third substitute HJR 12) that would permit the state or a public postsecondary institution to acquire equity in a private company as consideration for licensing or sale of intellectual property; the measure passed 68‑2 after debate over university accounting and a failed amendment to narrow beneficiaries.
The Utah House on the floor approved the third substitute of House Joint Resolution 12, a proposed constitutional amendment that would create a limited exception to the state's longstanding prohibition on subscribing to stock. The House voted 68 yes to 2 no to advance the resolution to the Senate.
Sponsor Representative Curtis said the amendment would allow the state or a public postsecondary institution to take "an equity interest in the company" as part of a sale, license or other transfer of intellectual property, rather than only licensing patents. Curtis said the constitutional change "allows the legislature to regulate the process through statute," and described the language as a negotiated compromise reviewed by university presidents and the Board of Regents.
Supporters said the change is intended to help Utah's research universities capture more of the long‑term value produced by campus research. "There's some amazing minds up there doing research and we're losing the benefit of that so often outside of our state," Representative Pace said, urging colleagues to "capitalize and spotlight" research at the University of Utah and Utah State University.
Opponents or cautious speakers warned the amendment raises questions about ownership and distribution of proceeds. Representative Byrd asked whether proceeds would flow to an individual college or to the university system; the sponsor said accounting and any distributions would be handled through existing employment or project contracts and statutory procedures. Representative Christiansen proposed a friendly amendment to remove the words "or a public institution of post secondary education," arguing that leaving the exception in place for institutions could create a later "tug of war" over ownership and budget control; after debate he withdrew his motion.
Curtis told the chamber the resolution had been reviewed by the constitutional revision commission and by representatives of the two research universities and the governor's office, calling it a "thoughtful compromise." The House adopted the amendment and will forward the resolution to the Senate for further consideration.
What happens next
Because this is a proposed amendment to the Utah Constitution, HJR 12 must proceed to the Senate and, if both chambers approve, go to voters as a ballot measure. The sponsor and backers said statutory rules would govern how any equity or revenue would be accounted for and distributed.
