Fund of Funds vote

A legislative committee on Monday unanimously voted to adjust the Utah Fund of Funds program to remove an unexpected "barrier" produced by 2007 legislation.

The Fund of Funds is a state economic-development program aimed at providing Utah entrepreneurs with access to alternative or nontraditional capital. Backed by contingent tax credits, the Fund of Funds invests in venture-capital and private equity funds that commit to establishing a working relationship with the Utah Fund of Funds and Utah's start-up and business community and commit to making investments in qualifying companies.

Senate Majority Whip Scott Jenkins, R-Plain City, told the Senate Workforce Services and Community and Economic Development Committee on Monday that the fund "has performed admirably," but troubles arose last year after the Legislature boosted the program's contingent tax credits amount from $100 million to $300 million.

SB160 would allow the Fund of Funds to issue contingent tax credits in a way that would allow for the redemption of not more than $20 million for each $100 million increment of outstanding certificates in any fiscal year.

— Brice Wallace