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House approves SB 112 to expand centers-of-excellence eligibility, authorizes review for out‑of‑state licensing
Summary
The Utah House passed Senate Bill 112 to broaden eligibility for Centers of Excellence grants to smaller colleges and allow the Governor’s Office of Economic Development to set a case-by-case process to determine whether grant funds should be returned if technologies are licensed and exploited outside Utah.
The Utah House voted to pass Senate Bill 112, the Centers of Excellence Amendments, after lawmakers said the changes would open state economic development supports to a broader range of higher-education institutions and provide tools to keep technology and jobs in Utah.
Representative Wallace, who presented the bill, said the measure expands the pool of participating colleges beyond large research universities and charges the Governor’s Office of Economic Development with creating procedures to evaluate whether grant proceeds should be returned. "It simply establishes a process to determine, whether there should be any adjustment and a return of those licensing fees," Wallace said during floor remarks.
The bill’s first amendment would require the governor’s office to evaluate cases where technology developed with state grant money is later licensed to an entity that does not maintain a manufacturing or service location in Utah or transfers such activity out of state within five years of licensing. Wallace and other supporters said the provision does not mandate an automatic clawback; rather, it authorizes case‑by‑case review and the development of criteria for when repayments or adjustments may be warranted.
Representative King asked whether projects with no immediate in‑state manufacturing outlet (for example, specialized technologies at a university) would be penalized. Wallace responded that the bill "enables the Governor's Office of Economic Development to put that process together so the bill doesn't make that decision," and the office would set criteria to address those situations on a case-by-case basis.
Supporters said expanding eligibility could increase participation by smaller colleges and spur entrepreneurship across the state, while critics did not register recorded opposition on the floor. The House reported the vote at 69 yes, 0 no, and the bill will be returned to the Senate for signature of the president.
The House action now sends the amended bill back to the Senate for its final procedural signature and any further action there.
