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House approves substitute bill shifting and winding down uSTAR program
Summary
Lawmakers approved a first-substitute to SB212 that dissolves the uSTAR board, transfers program authority to GoEd, terminates future grants while honoring existing awards, and moves certain facilities to USU and the University of Utah; sponsors cited low job outputs relative to funding.
SALT LAKE CITY — The Utah House on March 12 approved a first-substitute to Senate Bill 212 that restructures and begins winding down the uSTAR technology program, sending the measure back to the Senate.
Representative Quinn told colleagues the substitute dissolves the uSTAR board effective July 1, 2019, renames the executive director as a program director and transfers authority to the Governor’s Office of Economic Development (GoEd). The bill terminates the uSTAR grant program so no new grants will be issued while guaranteeing that existing grants will continue to be paid in full. The measure also addresses escrow accounts and terminates or transfers certain building leases to Utah State University and the University of Utah.
Quinn argued the change was necessary because he said uSTAR had produced relatively few jobs for the amounts invested. “We have given uSTAR 33,000,000 dollars in their budget, and they’ve produced 258 jobs,” Quinn said in floor remarks. He contrasted that with GoEd incentives and urged support for the substitute, which passed the House, 67-5.
Supporters said the bill simplifies oversight and places remaining program functions with an agency that handles economic incentives. The substitute limits future program spending while protecting already committed grants, a point sponsors emphasized to reassure grant recipients that awards would not be cut off midstream.
Opponents were limited on the floor; public debate focused on program performance metrics and the best institutional steward for remaining activities. The House’s passage sends the substitute back to the Senate for further consideration and signatures.
The bill’s action on transfers, escrow accounts and leases will require coordination among GoEd, USU and the University of Utah to implement the property and contract transitions laid out in the substitute. The measure as passed preserves current grant payments while ending the program’s ability to make new awards.
The House vote was recorded as 67 yes, 5 no; the bill will be returned to the Senate for further consideration.
