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Senate debates USTAR shift toward commercialization amid criticism over taxpayer investment

Utah State Senate · February 29, 2016
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Summary

Senate sponsors of SB166 said the measure shifts USTAR from basic research toward short-term commercialization and performance metrics after audit recommendations; Senator Dabakis criticized the program as "government picking winners," citing $18 million in taxpayer funds, while supporters defended reforms and monitoring. The bill was ordered to third reading with recorded votes.

Senator Milner and other floor sponsors outlined first substitute Senate Bill 166 as a refocusing of the USTAR program to emphasize commercialization, shorten time-to-market for technology transfer, and adopt auditor and independent assessor (SRI) recommendations. Speakers described a history in which USTAR helped leverage federal funding for research universities but now needs to prioritize market gaps and competitive support for high-potential projects.

On the floor Senator Dabakis objected to the premise of state-directed investment, characterizing the program as government 'picking winners and losers' and noting that the legislature allocated $18 million in taxpayer funds (with $2 million cited for administrative costs). Dabakis argued that if private investors are not willing to fund projects, it may not be the role of taxpayers to assume that risk, and criticized the lack of equity returns to the state when investees succeed.

Supporters including the sponsor said the bill implements auditor-recommended governance and reporting changes, establishes financial and outcome metrics for USTAR-funded projects, and shifts spending to support commercialization while retaining research capacity. The session recorded floor votes and the bill was placed on the third-reading calendar with a recorded tally noted in the transcript.

Next steps: SB166 was ordered to third reading and will return for final floor action; sponsors said oversight and metrics will accompany implementation.