Economic development agency to be split

Bills dealing with a makeover of a state economic development agency, tourism-promotion funding and increased research funding for a pair of universities were among those that successfully shook out of the 2005 Legislature.

HB318 will split the Department of Community and Economic Development. Two divisions — those dealing with community and economic development and travel development — will become the Governor's Office of Economic Development. The remaining five divisions remain in the department, which will be renamed the Department of Community and Culture.

The bill, the brainchild of Gov. Jon Huntsman Jr.'s administration, beat the Wednesday midnight deadline by a mere three minutes.

"It was a lengthy bill," said Chris Roybal, senior economic development adviser to Huntsman. "With us coming into office and starting the session, obviously we got a late start in getting the bill rolling through the House and Senate initially, so we knew it might come down to the last day."

Last-day tweaking included the placement of a "coordinating clause" because of HB318's effects on other bills.

"The Legislature has a voice here. You're always on pins and needles before things get passed, but we felt we had good, broad support. It was a good dialogue, good comments and criticisms, and due diligence."

The measure is designed to streamline economic development.

"We all know the governor wants to manage economic development and that we can do it more efficiently out of the governor's office," Roybal said. "We expect there will be more scrutiny and accountability, which we are prepared for. We've been armed with the right financial tools as well as the structural tools to get the job done. . . . The governor is excited, and now we're ready to go to work."

Had the bill not passed, the administration would have worked under the existing structure. "We would have been able to operate, but this just makes it more effective and also sends the message that the governor is really managing the state's economic development activities," Roybal said.

SB192, getting the funding ball rolling on new buildings, equipment and scientists for high-tech research and development at Utah State University and the University of Utah, passed but was scaled back from its original version.

The bill had sought $4 million for programming and preliminary design, $4 million in research equipment and $6 million for hiring researchers at "research clusters." Ultimately, supporters envision needing $250 million in research infrastructure, $25 million for regional "technology innovation centers," $25 million in ongoing investment for the clusters and $1 million in ongoing spending to support the centers.