Tech council wins support for 2 of its legislative initiatives

The Utah Technology Industry Council on Thursday got some backing for its legislative initiatives.

The Utah Technology Commission voted to support the drafting of two measures for the upcoming regular session and to support others designed to help the state's tech sector.

One involves allowing the Utah Division of Securities to keep all its fines and increase licensing fees. Monies above the current levels would be placed in a fund. Half of that would be used for entrepreneurial/investor education at the public and private school and college levels. The other half would be for tech company incubation, providing funds for federal Small Business Innovations Research matching programs and entrepreneurial support organizations to foster networking, education and fund-raising programming.

"There's a very high rate of failure among our small businesses," council chairman Paul Clayson told the commission. "That's not uncommon — a lot of small businesses fail — but we would like to increase the rate of those that succeed."

The commission also will have legislation drafted that would establish an entity to attract federal and state funding for focused tech incubation to be commercialized.

"Utah is significantly behind in getting our fair share, even in percentage of population, in those dollars, because there is no coordinating entity," Clayson said.

"There are some private businesses in the state who have developed their own employees and officers to seek those kinds of grant money. That typically isn't possible for start-up companies who have tied-up budgets anyway. . . . That money is as good as venture capital to an incubating and a growing business. It's valuable."

If there is enough time, the commission will meet before the session to decide whether they will support the draft bills. Otherwise, the commission co-chairs will introduce the measures during the session.

The commission also voted to support measures calling for:

• A constitutional revision allowing universities to take equity in corporations in exchange for license rights to state-owned technologies and/or their incubation and development.

• More flexibility in state economic development incentive funds.

• Continuing the current phase of the governor's engineering initiative to double the number of science and engineering graduates.