Back to Utah

HB0373 • 2026

Higher Education Innovation

Higher Education Innovation

Education
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. Peterson, Karen M.
Last action
2026-03-18
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Higher Education Innovation

This bill creates a pilot grant program for higher education research funding.

What This Bill Does

  • This bill creates a pilot grant program for higher education research funding.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-03-18 Lieutenant Governor's office for filing

    Governor Signed

  2. 2026-03-12 Clerk of the House

    House/ received enrolled bill from Printing

  3. 2026-03-12 Executive Branch - Governor

    House/ to Governor

  4. 2026-03-11 Clerk of the House

    Enrolled Bill Returned to House or Senate

  5. 2026-03-11 Clerk of the House

    House/ enrolled bill to Printing

  6. 2026-03-06 Legislative Research and General Counsel / Enrolling

    Bill Received from House for Enrolling

  7. 2026-03-06 Legislative Research and General Counsel / Enrolling

    Draft of Enrolled Bill Prepared

  8. 2026-03-05 Senate President

    House/ concurs with Senate amendment

  9. 2026-03-05 House Concurrence Calendar

    House/ placed on Concurrence Calendar

  10. 2026-03-05 Clerk of the House

    House/ received from Senate

  11. 2026-03-05 House Speaker

    House/ received from Senate

  12. 2026-03-05 Legislative Research and General Counsel / Enrolling

    House/ signed by Speaker/ sent for enrolling

  13. 2026-03-05 Senate President

    House/ to Senate

  14. 2026-03-05 Senate President

    Senate/ received from House

  15. 2026-03-05 House Speaker

    Senate/ signed by President/ returned to House

  16. 2026-03-05 House Speaker

    Senate/ to House

  17. 2026-03-04 Senate 2nd Reading Calendar

    Senate/ 2nd & 3rd readings/ suspension

  18. 2026-03-04 Senate Rules Committee

    Senate/ 2nd Reading Calendar to Rules

  19. 2026-03-04 Senate 2nd Reading Calendar

    Senate/ Rules to 2nd Reading Calendar

  20. 2026-03-04 Clerk of the House

    Senate/ passed 2nd & 3rd readings/ suspension

  21. 2026-03-04 Senate 2nd Reading Calendar

    Senate/ substituted

  22. 2026-03-04 Clerk of the House

    Senate/ to House with amendments

  23. 2026-03-03 Legislative Fiscal Analyst

    LFA/ bill assigned to staff for fiscal analysis for HB0373S02

  24. 2026-03-03 Legislative Fiscal Agency

    LFA/ bill sent to agencies for fiscal input for HB0373S02

  25. 2026-03-03 Released

    LFA/ fiscal note publicly available for HB0373S02

  26. 2026-03-03 Version Sponsor

    LFA/ fiscal note sent to sponsor for HB0373S02

  27. 2026-02-27 Senate Economic Development and Workforce Services Committee

    Senate/ committee report favorable

  28. 2026-02-27 Senate 2nd Reading Calendar

    Senate/ placed on 2nd Reading Calendar

  29. 2026-02-26 Senate Economic Development and Workforce Services Committee

    Senate Comm - Favorable Recommendation

  30. 2026-02-24 Senate Economic Development and Workforce Services Committee

    Senate/ to standing committee

  31. 2026-02-23 Senate Rules Committee

    Senate/ 1st reading (Introduced)

  32. 2026-02-20 House 3rd Reading Calendar for House bills

    House/ 3rd reading

  33. 2026-02-20 Senate Secretary

    House/ passed 3rd reading

  34. 2026-02-20 Senate Secretary

    House/ to Senate

  35. 2026-02-20 Waiting for Introduction in the Senate

    Senate/ received from House

  36. 2026-02-13 House 3rd Reading Calendar for House bills

    House/ 2nd reading

  37. 2026-02-13 House Economic Development and Workforce Services Committee

    House/ comm rpt/ amended

  38. 2026-02-12 House Economic Development and Workforce Services Committee

    House Comm - Amendment Recommendation

  39. 2026-02-12 House Economic Development and Workforce Services Committee

    House Comm - Favorable Recommendation

  40. 2026-02-10 House Rules Committee

    Bill Substituted by Sponsor in House Rules Comm

  41. 2026-02-10 House Economic Development and Workforce Services Committee

    House/ to standing committee

  42. 2026-02-04 Released

    LFA/ fiscal note publicly available for HB0373S01

  43. 2026-02-04 Version Sponsor

    LFA/ fiscal note sent to sponsor for HB0373S01

  44. 2026-02-02 Legislative Fiscal Analyst

    LFA/ bill assigned to staff for fiscal analysis for HB0373S01

  45. 2026-02-02 Legislative Fiscal Agency

    LFA/ bill sent to agencies for fiscal input for HB0373S01

  46. 2026-01-29 Version Sponsor

    LFA/ fiscal note sent to sponsor for HB0373

  47. 2026-01-26 Legislative Research and General Counsel

    Bill Numbered but not Distributed

  48. 2026-01-26 House Rules Committee

    House/ 1st reading (Introduced)

  49. 2026-01-26 Clerk of the House

    House/ received bill from Legislative Research

  50. 2026-01-26 Legislative Fiscal Analyst

    LFA/ bill assigned to staff for fiscal analysis for HB0373

  51. 2026-01-26 Legislative Fiscal Agency

    LFA/ bill sent to agencies for fiscal input for HB0373

  52. 2026-01-26 Legislative Research and General Counsel

    Numbered Bill Publicly Distributed

Official Summary Text

This bill creates a pilot grant program for higher education research funding.

Current Bill Text

Read the full stored bill text
41
11-59-202
53E-10-310
53H-1-402
53H-8-211
53H-11-402
53H-11-403
53H-16-201
53H-16-202
53H-16-302
53H-16-303
53H-16-304
53H-16-402
53H-16-403
53H-16-404
53H-16-405
53H-16-406
53H-16-407
63I-1-253
63J-1-602.2
0
Higher Education Innovation
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Karen M. Peterson
Senate Sponsor: Ann Millner
LONG TITLE
General Description:
This bill creates a pilot grant program for higher education research funding.
Highlighted Provisions:
This bill:
defines terms;
amends provisions regarding the Nucleus Institute, including:
authority regarding a facility on point of the mountain state land;
renaming the Utah Innovation Fund to the Nucleus Fund;
amending the appointment of certain positions and board members; and
amending compensation;
allows the commissioner of higher education to undertake certain duties previously
dedicated to the Utah Board of Higher Education (board);
creates a pilot grant program for higher education research funding;
requires the board to administer and approve funding grants, potentially through the
Nucleus Institute, the Talent, Education, and Industry Alignment Board, or an ad hoc
committee;
requires the board to report on the research funding grant program; and
makes technical and conforming changes.
Money Appropriated in this Bill:
This bill appropriates
$50,000,000
in operating and capital budgets for fiscal year 2027, all
of which is from the Income Tax Fund.
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
11-59-202
Effective
07/01/26
Repealed
01/01/29
, as last amended by Laws of Utah
2025, Chapter 31
53E-10-310
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
53H-1-402
Effective
07/01/26
Partially Repealed
07/01/27
, as renumbered and
amended by Laws of Utah 2025, First Special Session, Chapter 8
53H-11-402
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-11-403
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-201
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-202
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-302
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-303
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-304
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-402
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-403
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-404
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-405
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-406
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
53H-16-407
Effective
07/01/26
, as renumbered and amended by Laws of Utah 2025,
First Special Session, Chapter 8
63I-1-253
Effective
07/01/26
, as last amended by Laws of Utah 2025, First Special
Session, Chapter 9
63J-1-602.2
Effective
07/01/26
Partially Repealed
07/01/29
, as last amended by Laws
of Utah 2025, First Special Session, Chapter 17
ENACTS:
53H-8-211
Effective
07/01/26
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
11-59-202
is amended to read:
11-59-202
Effective
07/01/26
Repealed
01/01/29
. Authority powers.
The authority may:
(1)
as provided in this chapter, plan, manage, and implement the development of the point
of the mountain state land, including the ongoing operation of facilities on the point of
the mountain state land;
(2)
undertake, or engage a consultant to undertake, any study, effort, or activity the board
considers appropriate to assist or inform the board about any aspect of the proposed
development of the point of the mountain state land, including the best development
model and financial projections relevant to the authority's efforts to fulfill
its
the
authority's
duties and responsibilities under this section and Section
11-59-203
;
(3)
sue and be sued;
(4)
enter into contracts generally, including a contract for the sharing of records under
Section
63G-2-206
;
(5)
buy, obtain an option upon, or otherwise acquire any interest in real or personal
property, as necessary to accomplish the duties and responsibilities of the authority,
including an interest in real property, apart from point of the mountain state land, or
personal property, outside point of the mountain state land, for publicly owned
infrastructure and improvements, if the board considers the purchase, option, or other
interest acquisition to be necessary for fulfilling the authority's development objectives;
(6)
sell, convey, grant, dispose of by gift, or otherwise dispose of any interest in real or
personal property;
(7)
enter into a lease agreement on real or personal property, either as lessee or lessor;
(8)
provide for the development of the point of the mountain state land under one or more
contracts, including the development of publicly owned infrastructure and improvements
and other infrastructure and improvements on or related to the point of the mountain
state land;
(9)
exercise powers and perform functions under a contract, as authorized in the contract;
(10)
accept financial or other assistance from any public or private source for the authority's
activities, powers, and duties, and expend any funds so received for any of the purposes
of this chapter;
(11)
borrow money, contract with, or accept financial or other assistance from the federal
government, a public entity, or any other source for any of the purposes of this chapter
and comply with any conditions of the loan, contract, or assistance;
(12)
subject to
Part 6, Authority Bonds
, issue bonds to finance the undertaking of any
development objectives of the authority;
(13)
issue bonds under
Title 11,
Chapter 17, Utah Industrial Facilities and Development
Act, and bonds under
Title 11,
Chapter 42, Assessment Area Act;
(14)
hire employees, including contract employees, in addition to or in place of staff
provided under Section
11-59-304
;
(15)
transact other business and exercise all other powers provided for in this chapter;
(16)
enter into a development agreement with a developer of some or all of the point of the
mountain state land;
(17)
provide for or finance an energy efficiency upgrade, a clean energy system, or electric
vehicle charging infrastructure, as those terms are defined in Section
11-42a-102
, in
accordance with
Title 11,
Chapter 42a, Commercial Property Assessed Clean Energy
Act;
(18)
exercise powers and perform functions that the authority is authorized by statute to
exercise or perform;
(19)
enter into one or more interlocal agreements under
Title 11,
Chapter 13, Interlocal
Cooperation Act, with one or more local government entities for the delivery of services
to the point of the mountain state land;
(20)
enter into an agreement with the federal government or an agency of the federal
government, as the board considers necessary or advisable, to enable or assist the
authority to exercise its powers or fulfill its duties and responsibilities under this chapter;
(21)
provide funding for the development of publicly owned infrastructure and
improvements or other infrastructure and improvements on or related to the point of the
mountain state land;
and
(22)
impose impact fees under
Title 11,
Chapter 36a, Impact Fees Act, and other fees
related to development activities
.
; and
(23)
coordinate or contract with a state agency for the use of a facility on point of the
mountain state land.
Section 2. Section
53E-10-310
is amended to read:
53E-10-310
Effective
07/01/26
. Utah first credential program.
(1)
As used in this section:
(a)
"Eligible institution" means an institution of higher education as defined in Section
53H-1-101
.
(b)
"First credential" means a certificate awarded by the state board to an eligible student
who meets the criteria described in Subsection
(7)
.
(c)
(i)
"Industry-recognized credential" means a credential that is:
(A)
developed and offered by, or endorsed by, a nationally recognized industry
association or organization representing a sizable portion of the industry sector;
(B)
sought or accepted by employers within the industry or sector as a recognized,
preferred, or required credential for recruitment, screening, hiring, retention, or
advancement purposes; and
(C)
regularly reviewed, updated, and validated by the issuing body to ensure
ongoing alignment with industry standards and labor market needs.
(ii)
"Industry-recognized credential" may also include a credential offered through a
catalyst center as described in Section
53E-3-507.1
.
(d)
"Master credential list" means the list of approved industry-recognized credentials
maintained by the state board in accordance with this section.
(e)
"Program" means the first credential program described in this section.
(f)
"Technical college" means the same as that term is defined in Section
53H-1-101
.
(2)
The commissioner of higher education, the state superintendent of public instruction,
and the governor's education advisor shall establish the First Credential Oversight
Committee comprised of:
(a)
representatives from industries, including:
(i)
members of professional associations or trade groups; and
(ii)
employers from high-demand sectors as the state board determines in
collaboration with the Utah Board of Higher Education and the Department of
Workforce Services;
(b)
representatives from education including:
(i)
members from the state board;
(ii)
the director of the Catalyst Center Grant Program described in Section
53E-3-507.1
;
(iii)
LEA administrators, such as a superintendent or charter school director;
(iv)
professionals from institutions of higher education, including technical colleges;
(v)
career and technical education specialists; and
(vi)
Talent Ready Utah; and
(c)
workforce development experts, including representatives from the Department of
Workforce Services.
(3)
The state board shall staff the First Credential Oversight Committee.
(4)
The First Credential Oversight Committee shall develop a first credential master plan,
which shall include:
(a)
a framework for developing and maintaining the master credential list;
(b)
a comprehensive needs assessment framework that evaluates:
(i)
resources available through institutions of higher education, including:
(A)
faculty expertise and availability;
(B)
facilities and equipment;
(C)
existing certification programs; and
(D)
potential for program expansion;
(ii)
industry partnership opportunities, including:
(A)
geographical proximity to potential partners;
(B)
willingness of local industries to participate;
(C)
capacity for work-based learning placements; and
(D)
alignment between industry needs and educational capabilities; and
(iii)
general resource availability, including:
(A)
current funding streams and potential funding sources;
(B)
existing technology infrastructure;
(C)
qualified personnel and staffing needs; and
(D)
professional development requirements;
(c)
credential approval processes;
(d)
methods for ensuring industry demand alignment;
(e)
wage considerations for occupations associated with approved credentials;
(f)
clear definitions of industry-recognized credentials;
(g)
strategies for promoting stackability and sequencing of credentials;
(h)
approaches to ensure regional relevance of credentials;
(i)
mechanisms for collaboration between educational institutions, industry partners, and
workforce development agencies;
(j)
strategies for continuous evaluation and improvement of the program;
(k)
the creation of a credentials review committee, including membership and duties;
(l)
in accordance with Subsection
(17)
, an established framework of planning,
implementation, and student outcome performance funding for an LEA administering
first credential programming;
(m)
a weighted system for the master credential list that:
(i)
assigns higher values to credentials based on:
(A)
alignment with high-demand, high-wage occupations;
(B)
incorporation of multiple learning pathways, including coursework,
apprenticeships, internships, work-based learning, and related service
opportunities;
(C)
industry recognition and portability; and
(D)
stackability with other credentials or degrees; and
(ii)
uses the weighted values to:
(A)
determine incentive funding levels;
(B)
prioritize program expansion support; and
(C)
guide student career planning; and
(n)
guidelines for LEAs to procure industry-recognized certification program licenses,
including:
(i)
verification that certifications appear on the master credential list;
(ii)
requirement for competency-based assessments in proctored environments;
(iii)
documentation of local industry endorsement; and
(iv)
alignment with state and federal computer science initiatives where applicable,
including the Computer Science for Utah Grant Program described in Section
53H-13-306
.
(5)
In accordance with the Utah First Credential Master Plan, the state board shall:
(a)
ensure that the credentials review committee membership reflects a balance of
perspectives and expertise;
(b)
develop an online application and submission system for credentialing organizations
and providers to submit programs for inclusion in the master credential list;
(c)
establish and maintain the master credential list based on the recommendations of the
credentials review committee;
(d)
develop clear mechanisms for students to understand how earning one credential can
lead to higher-level certifications or degrees; and
(e)
foster partnerships between high schools, technical colleges, employers, and
apprenticeship programs to ensure students have access to meaningful work-based
learning opportunities.
(6)
The state board shall:
(a)
automatically include on the initial master credential list any existing credential that:
(i)
meets the definition of industry-recognized credential under this section; and
(ii)
is currently recognized by the state board or Utah Board of Higher Education as
of July 1, 2024; and
(b)
review all automatically included credentials within one year to ensure ongoing
compliance with program requirements.
(7)
The state board shall award a first credential certificate to an eligible student who
completes one of the following:
(a)
concurrent enrollment courses, composed of:
(i)
between 12 and 18 core general education credits, or as industry standards dictate,
with courses from different general education categories; or
(ii)
a prescribed set of courses as the Utah Board of Higher Education designates;
(b)
an industry-recognized credential included on the master credential list;
(c)
300 hours of completion through a youth apprenticeship program that:
(i)
is described in Sections
35A-6-102
and
35A-6-104.5
; and
(ii)
includes courses that fulfill the requirements for an industry-recognized credential
included on the master credential list;
(d)
completion of a technical college certificate; or
(e)
completion of a Career and Technical Education Pathway program.
(8)
The Utah Board of Higher Education shall ensure that credits earned for a first
credential certificate are:
(a)
accepted and transferable to institutions of higher education, including technical
colleges;
(b)
applicable towards relevant degree programs; and
(c)
recognized by relevant industries as adequate preparation for employment.
(9)
Subject to legislative appropriations, the Utah Board of Higher Education shall award a
first credential scholarship to each student who earns a first credential certificate.
(10)
The first credential scholarship may be used at the following institutions:
(a)
an institution of higher education as defined in Section
53H-1-101
; or
(b)
a private, nonprofit college or university in the state that is accredited by the
Northwest Commission on Colleges and Universities.
(11)
The
commissioner of higher education, in consultation with the
Utah Board of Higher
Education
,
shall annually determine the first credential scholarship amount based on:
(a)
the number of eligible students; and
(b)
appropriations made by the Legislature.
(12)
A student may use the first credential scholarship for:
(a)
tuition and fees;
(b)
books and supplies; or
(c)
other educational expenses as the Utah Board of Higher Education determines.
(13)
The Utah Board of Higher Education shall ensure the scholarship is valid for use
within three years from the date the student graduates from high school.
(14)
A student may earn the first credential scholarship in addition to any other
state-sponsored scholarships for which the student may be eligible.
(15)
The first credential oversight committee shall present the master plan described in
Subsection
(4)
to the Education Interim Committee by the November 2025 interim
committee meeting.
(16)
Every three years, the First Credential Oversight Committee shall:
(a)
review the Utah First Credential Master Plan;
(b)
as needed, create a list of recommendations and update the Utah First Credential
Master Plan;
(c)
report the list of recommendations and the updated Utah First Credential Master Plan
to:
(i)
the state board;
(ii)
the Utah Board of Higher Education;
(iii)
the Department of Workforce Services;
(iv)
the Education Interim Committee; and
(v)
the Economic Development and Workforce Services Interim Committee.
(17)
(a)
The state board shall administer a first credential grant program for an LEA and
award a grant in accordance with the following process.
(b)
The First Credential Oversight Committee shall establish:
(i)
a needs assessment tool that evaluates:
(A)
an LEA's current first credential offering;
(B)
an LEA's capacity to develop or expand a first credential pathway;
(C)
resources and support needed for a first credential program, including
resources available through institutions of higher education, industry
partnership opportunities, and general resource availability; and
(D)
each potential barrier to implementation; and
(ii)
a continuum of need to place each applying LEA.
(c)
An LEA seeking a first credential grant shall submit to the First Credential Oversight
Committee:
(i)
a completed needs assessment; and
(ii)
a grant application that contains:
(A)
current first credential data, including current credentials offered;
(B)
preliminary goals for creating or expanding first credential opportunities
within the LEA; and
(C)
if applicable, plans for procurement of industry certification program licenses,
including certification details and alignment with master credential list,
documentation of employer endorsements, assessment and proctoring
procedures, and integration with existing computer science programs.
(d)
The First Credential Oversight Committee shall:
(i)
review each submitted application and needs assessment;
(ii)
assign the LEA a placement on the continuum of need; and
(iii)
provide to the LEA a specific requirement for an implementation plan based on:
(A)
the LEA's continuum placement;
(B)
each identified area for growth;
(C)
each available resource; and
(D)
each additional factor the First Credential Oversight Committee determines
relevant.
(e)
An LEA shall submit to the First Credential Oversight Committee an implementation
plan that includes:
(i)
specific goals for expanding a first credential opportunity;
(ii)
each implementation step and timeline;
(iii)
a detailed cost projection; and
(iv)
each additional element the committee requires based on the needs assessment
results.
(f)
The First Credential Oversight Committee shall:
(i)
review the implementation plan;
(ii)
direct technical assistance to the LEA in accordance with the LEA's
implementation plan;
(iii)
provide feedback to the LEA to improve the implementation plan;
(iv)
approve each implementation plan that meets the established criteria; and
(v)
award an implementation grant for each approved plan.
(g)
Subject to legislative appropriations, the state board shall:
(i)
award an incentive grant to an LEA that:
(A)
has implemented an approved plan;
(B)
increases the number of students who earn a first credential certificate; and
(C)
achieves each established implementation goal; and
(ii)
in accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act,
and in collaboration with the First Credential Oversight Committee, establish by
rule:
(A)
tiers for incentive grant awards;
(B)
performance metrics for continued funding;
(C)
reporting requirements for a grant recipient;
(D)
requirements for reporting certification program outcomes and industry
alignment;
(E)
procedures for coordinating with computer science initiative grants; and
(F)
guidelines for certification program procurement and implementation.
(18)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, and in
collaboration with the Utah Board of Higher Education and the Department of
Workforce Services, the state board shall make rules to implement the provisions of this
section.
Section 3. Section
53H-1-402
is amended to read:
53H-1-402
Effective
07/01/26
Partially Repealed
07/01/27
. Reports to and
actions of the Higher Education Appropriations Subcommittee.
(1)
In accordance with applicable provisions and Section
68-3-14
, the following recurring
reports are due to the Higher Education Appropriations Subcommittee:
(a)
the reports described in Sections
53H-1-502
,
53H-1-503
, and
53H-1-504
;
(b)
the reports described in Section
53H-1-203
by the board on:
(i)
system wide responses to changing demographics and workforce; and
(ii)
the board's activities and performance against the board's goals and metrics;
(c)
the report described in Section
53H-5-205
;
(d)
the report described in Section
53H-8-202
by the board on recommended
appropriations for higher education institutions and the board, including the report
described in Section
53H-11-406
by the board on the effects of offering nonresident
partial tuition scholarships;
(e)
the report described in Section
53H-8-211
by the board on the Higher Education
Research Funding Pilot Program;
(e)
(f)
the report described in Section
53H-8-306
by the Department of Workforce
Services and the Governor's Office of Economic Opportunity on targeted jobs;
(f)
(g)
the reports described in Section
53H-8-303
by the board on performance;
(g)
(h)
the report described in Section
53H-11-402
by the board on the Opportunity
Scholarship Program;
(h)
(i)
the report described in
Section
53H-13-309
regarding the talent advisory
councils;
(i)
(j)
the report described in Section
53H-11-414
by the board on the Utah Promise
Program;
(j)
(k)
the report described in Section
53H-6-202
by the board on an institution
compensating a student athlete for the use of the student athlete's name, image, or
likeness;
(k)
(l)
the report described in Section
53H-1-604
regarding the Higher Education and
Corrections Council; and
(l)
(m)
the report described in Section
53E-10-308
by the State Board of Education and
board on student participation in the concurrent enrollment program.
(2)
In accordance with applicable provisions and Section
68-3-14
, the following occasional
report is due to the Higher Education Appropriations Subcommittee: the board's report
regarding each institution's strategic reinvestment plan described in Section
53H-8-210
.
(3)
In accordance with applicable provisions, the Higher Education Appropriations
Subcommittee shall complete the following:
(a)
an appropriation recommendation described in Section
53H-1-504
regarding
compliance with Subsections
53H-1-504(5)
and
(14)
; and
(b)
as required by Section
53H-8-304
, the review of performance funding described in
Section
53H-8-304
.
(4)
In consultation with the board, the Higher Education Appropriations Subcommittee
shall study a re-design of:
(a)
the performance funding model described in Chapter
8, Part 3
, Performance Funding,
to better ensure:
(i)
institutional alignment with the statewide system of higher education and the
institution's mission within the statewide system; and
(ii)
investment in meeting localized and statewide workforce demands and securing
post-graduation employment outcomes; and
(b)
enrollment-based funding, including, for technical colleges, funding distribution
models that:
(i)
include equivalent funding value for secondary and adult students; and
(ii)
reflect the full responsibility of the technical college's statutorily-required
services.
Section 4. Section
53H-8-211
is enacted to read:
53H-8-211
Effective
07/01/26
. Higher Education Research Funding Pilot
Program.
(1)
As used in this section:
(a)
"Institute board" means the same as that term is defined in Section
53H-16-201
.
(b)
"Nucleus Institute" means the Nucleus Institute created in Section
53H-16-202
.
(c)
"Program" means the pilot grant program for research funding described in this
section.
(2)
(a)
There is established a pilot competitive grant program known as the Higher
Education Research Funding Pilot Program.
(b)
The board shall distribute funding for grant applications the board approves under
the prioritization and recommendation process described in Subsections
(3)
and
(4)

using the following funding allocation:
(i)
for research institutions described in Subsection
53H-3-602(1)(b)(i)
, 75-85% of
available research funding; and
(ii)
for applied research projects at regional institutions described in Subsection
53H-3-602(1)(b)(ii)
, 15-25% of available research funding.
(3)
To apply for research funding under the program, the president of an institution shall:
(a)
review and prioritize prospective grant applications; and
(b)
submit prioritized grant applications to the board.
(4)
(a)
The board shall:
(i)
develop a funding application and establish a scoring rubric to prioritize
applications based on the following criteria:
(A)
expected impact;
(B)
connection to Utah industries;
(C)
relevance to state economic development or public policy needs;
(D)
potential for commercialization;
(E)
the available proportion of matching funds; and
(F)
opportunities for student participation;
(ii)
(A)
make rules, in accordance with Title 63G, Chapter 3, Utah Administrative
Rulemaking Act, to establish eligible research areas, in consultation with
industry representatives, the institute board, the Department of Workforce
Services, the Governor's Office of Economic Opportunity, and the Economic
Development and Workforce Services Interim Committee;
(B)
review and update the eligible research areas described in Subsection
(4)(a)(ii)(A)
at least once every three years; and
(C)
ensure that the eligible research areas described in Subsection
(4)(a)(ii)(A)

reflect the state's priority industry clusters and public policy needs;
(iii)
review all grant applications the board receives for each funding allocation

described in Subsection
(2)(b)
; and
(iv)
based on the scoring described in Subsection
(4)(a)(i)
, approve research grants.
(b)
The board may delegate the board's duties of administration and review described in
Subsections
(4)(a)(i)
,
(4)(a)(ii)
, and
(4)(a)(iii)
to:
(i)
the institute board;
(ii)
the Talent, Education, and Industry Alignment Board; or
(iii)
an ad hoc committee that the board establishes for the administration of the
program.
(c)
The board may use up to 1% of legislative appropriations for the program to
administer the program.
(5)
The board shall report annually to the Higher Education Appropriations Subcommittee
and the Economic Development and Workforce Services Interim Committee on:
(a)
the eligible research areas described in Subsection
(4)(a)(ii)
and the extent to which
the areas reflect the state's priority industry clusters and public policy needs; and
(b)
key metrics for the program, including:
(i)
the number and type of approved research projects under the program, categorized
by institution; and
(ii)
highlights of the impact of the approved research projects.
Section 5. Section
53H-11-402
is amended to read:
53H-11-402
Effective
07/01/26
. Opportunity Scholarship Program.
(1)
As used in this section:
(a)
"Eligible institution" means:
(i)
an institution; or
(ii)
a private, nonprofit institution of higher education in the state.
(b)
"Eligible student" means a student who:
(i)
applies to the board in accordance with the rules described in Subsection
(5)
;
(ii)
is enrolled in an eligible institution; and
(iii)
meets the criteria established by the board in rules described in Subsection
(5)
.
(c)
"Fee" means:
(i)
for an eligible institution that is a degree-granting institution, a fee approved by
the board; or
(ii)
for an eligible institution that is a technical college or a degree-granting
institution acting in the degree-granting institution's technical education role
described in Section
53H-3-608
, a fee approved by the eligible institution.
(d)
"Program" means the Opportunity Scholarship Program described in this section.
(2)
(a)
Subject to legislative appropriations, the board shall annually distribute money for
the Opportunity Scholarship Program described in this section to each eligible
institution to award as Opportunity scholarships to eligible students.
(b)
The
commissioner, in consultation with the
board
,
shall annually determine the
amount of an Opportunity scholarship based on:
(i)
the number of eligible students in the state; and
(ii)
money available for the program.
(c)
The board may not use more than 3% of the money appropriated to the program for
administrative costs and overhead.
(3)
(a)
Except as provided in this Subsection
(3)
, an eligible institution shall provide to
an eligible student an Opportunity scholarship in the amount determined by the board
described in Subsection
(2)(b)
.
(b)
For an Opportunity scholarship for which an eligible student applies on or before
July 1, 2019, an eligible institution may reduce the amount of the Opportunity
scholarship based on other state aid awarded to the eligible student for tuition and
fees.
(c)
For an Opportunity scholarship for which an eligible student applies after July 1,
2019:
(i)
an eligible institution shall reduce the amount of the Opportunity scholarship so
that the total amount of state aid awarded to the eligible student, including tuition
or fee waivers and the Opportunity scholarship, does not exceed the cost of the
eligible student's tuition and fees; and
(ii)
the eligible student may only use the Opportunity scholarship for tuition and fees.
(d)
An institution described in Subsection
(1)(a)(ii)
may not award an Opportunity
scholarship to an eligible student in an amount that exceeds the average total cost of
tuition and fees among the eligible institutions described in Subsection
(1)(a)(i)
.
(e)
If the allocation for an eligible institution described in Subsection
(1)(a)(ii)
is
insufficient to provide the amount described in Subsection
(2)(b)
to each eligible
student, the eligible institution may reduce the amount of an Opportunity scholarship.
(4)
The board may:
(a)
audit an eligible institution's administration of Opportunity scholarships;
(b)
require an eligible institution to repay to the board money distributed to the eligible
institution under this section that is not provided to an eligible student as an
Opportunity scholarship; and
(c)
require an eligible institution to enter into a written agreement with the board in
which the eligible institution agrees to provide the board with access to information
and data necessary for the purposes of the program.
(5)
In accordance with Title
63G, Chapter 3
, Utah Administrative Rulemaking Act, the
board shall make rules that establish:
(a)
requirements related to an eligible institution's administration of Opportunity
scholarships;
(b)
a process for a student to apply to the board to determine the student's eligibility for
an Opportunity scholarship;
(c)
criteria to determine a student's eligibility for an Opportunity scholarship, including:
(i)
minimum secondary education academic performance standards; and
(ii)
the completion of a Free Application for Federal Student Aid or a process
approved by the board in lieu of the Free Application for Federal Student Aid;
(d)
a requirement for each eligible institution to annually report to the board on all
Opportunity scholarships awarded by the eligible institution; and
(e)
a process for a student to apply to the board for an Opportunity scholarship who
would have likely received the scholarship but for an irreconcilable error in the
application process described in Subsection
(5)(b)
.
(6)
The board shall annually report on the program to the Higher Education Appropriations
Subcommittee.
(7)
The State Board of Education, a school district, or a public high school shall cooperate
with the board and eligible institutions to facilitate the program, including by
exchanging relevant data where allowed by law.
Section 6. Section
53H-11-403
is amended to read:
53H-11-403
Effective
07/01/26
. Karen Mayne Public Safety Officer Scholarship
Program.
(1)
As used in this section:
(a)
"Peace officer" means the same as that term is defined in Section
53H-11-306
.
(b)
"POST" means the Peace Officer Standards and Training Division created in Section
53-6-103
.
(c)
"Program" means the Karen Mayne Public Safety Officer Scholarship Program that
this section creates.
(2)
This section creates the Karen Mayne Public Safety Officer Scholarship Program.
(3)
(a)
Subject to legislative appropriations, the board shall award a scholarship to a
qualified applicant who:
(i)
is a high school graduate;
(ii)
submits an application to the board with a copy of the student's high school
diploma;
(iii)
when eligible, enrolls in a basic training course at a state certified academy as
defined in Section
53-6-202
;
(iv)
subject to Subsection
(3)(b)
, is enrolled in a qualifying post-secondary program
from:
(A)
an institution of higher education listed in Section
53H-1-102
; or
(B)
a private postsecondary educational institution; and
(v)
commits to working as a peace officer for no less than five years after the day on
which POST certifies the scholarship recipient.
(b)
For purposes of Subsection
(3)(a)(iv)
, the board shall determine the programs that
qualify for a scholarship award, including criminal justice, police administration,
criminology, social sciences, and other disciplines.
(4)
(a)
The
commissioner, in consultation with the
board
,
shall determine the amount of a
scholarship award, ensuring that the amount does not exceed the combined cost of
tuition, fees, and required textbooks.
(b)
A scholarship award described in Subsection
(4)(a)
is limited to:
(i)
POST training and certification in accordance with
Title 53, Chapter 6, Peace
Officer Standards and Training Act
; and
(ii)
a maximum of four academic years in a post-secondary program.
(5)
The board shall design the scholarship program to ensure that participating institutions
combine state or federal loans or grants, internships, student employment, and family
and individual contributions toward financing the cost of attendance.
(6)
A scholarship recipient shall:
(a)
notify the board of the scholarship recipient's POST certification within 15 days after
the day on which POST certifies the scholarship recipient;
(b)
submit verification of the scholarship recipient's employment to the board within 15
days after the day on which the scholarship recipient is employed as a peace officer,
including:
(i)
the employer's name, address, and telephone number;
(ii)
the date of the scholarship recipient's hiring; and
(iii)
the scholarship recipient's job title; and
(c)
notify the board within 15 days after the day on which the employer terminates the
scholarship recipient.
(7)
(a)
The board may require a scholarship recipient to repay the full amount of the
scholarship award that the scholarship recipient received under the program,
including money paid for tuition, fees, and required textbooks, if the scholarship
recipient fails to:
(i)
meet the requirements for POST certification as described in
Title 53, Chapter 6,
Part 2, Peace Officer Training and Certification Act
;
(ii)
work as a peace officer for five years after the day on which POST certifies the
scholarship recipient; or
(iii)
subject to Subsection
(3)
, earn a degree in a post-secondary program.
(b)
Notwithstanding Subsection
(7)(a)
, a scholarship recipient is not required to repay
any amount of the scholarship award if the scholarship recipient:
(i)
is unable to secure employment as a peace officer within 12 months after the day
on which the scholarship recipient is POST certified; and
(ii)
provides documentation from a prospective employer that the scholarship
recipient was not extended an offer of employment.
(8)
The board may use up to 2% of the money appropriated for the scholarship program for
administrative costs.
(9)
(a)
The board shall make rules, in accordance with
Title 63G, Chapter 3, Utah
Administrative Rulemaking Act
, to:
(i)
set deadlines for receiving scholarship applications and supporting documentation;
(ii)
establish an application process and appeal process for the program;
(iii)
establish policies and procedures for cancellation or repayment of scholarship
awards if the scholarship recipient fails to meet the requirements under this
section;
(iv)
collaborate with POST and other law enforcement and correction agencies to
provide high school students information on law enforcement careers; and
(v)
notify POST when a student receives a scholarship under the program.
(b)
The board shall include a disclosure on all applications and materials related to the
program that the amount of the awarded scholarship may be subject to funding
availability or reduction in accordance with Subsection
(10)
.
(10)
If an appropriation under this section is insufficient to cover the costs associated with
the program, the board may:
(a)
reduce the amount of a scholarship award; and
(b)
distribute scholarship awards on a pro rata basis to all eligible applicants who
submitted a complete application before the application deadline.
Section 7. Section
53H-16-201
is amended to read:
53H-16-201
Effective
07/01/26
. General provisions -- Definitions.
As used in this part:
(1)
"Executive director" means the executive director of the institute appointed under
Section
53H-16-304
.
(2)
"Institute board" means the board of directors of the Nucleus Institute as described in
Section
53H-16-302
.
(3)
"Investment committee" means the investment committee of the
Utah innovation fund
Nucleus Fund
created in Section
53H-16-403
.
(4)
"Nucleus Fund" means a limited liability company organized under Section
53H-16-402
.
(4)
(5)
"Nucleus Institute" or "institute" means the Nucleus Institute created in Section
53H-16-202
.
(5)
(6)
"Qualified business" means a business entity that:
(a)
is established to commercialize a technology, product, or service developed in
partnership with a technology commercialization program at a public institution or

private postsecondary educational institution in the state; and
(b)
maintains the business's principal business operations in the state.
(6)
(7)
"Qualified investment" means any distribution or payment of funds to a qualified
business from the
Utah innovation fund
Nucleus Fund
, including:
(a)
a direct investment of capital in a qualified business for the purchase of shares of
stock;
(b)
a secured loan or revolving line of credit to a qualified business; or
(c)
a financial grant to a qualified business.
(7)
"Utah innovation fund" means a limited liability company organized under Section
53H-16-402
.
Section 8. Section
53H-16-202
is amended to read:
53H-16-202
Effective
07/01/26
. Creation of Nucleus Institute -- Status and
applicability of other law -- Powers and purposes.
(1)
There is created the Nucleus Institute.
(2)
The institute is:
(a)
an independent, nonprofit, quasi-public corporation as defined in Section
63E-1-102
;
and
(b)
subject to and governed by Sections
63E-2-106
,
63E-2-108
,
63E-2-110
, and
63E-2-111
, but is not otherwise subject to or governed by
Title 63E, Independent
Entities Code
.
(3)
The institute and the
Utah innovation fund
Nucleus Fund
are not subject to:
(a)
Title
52, Chapter 4
, Open and Public Meetings Act; or
(b)
Title
63G, Chapter 2
, Government Records Access and Management Act.
(4)
Pursuant to
In accordance with
Subsection
53H-1-203(2)(p)(i)
, in coordination with the
board and the commissioner, the institute shall promote efficiency and support of the
Utah System of Higher Education on commercialization efforts as provided in this
chapter.
(5)
The institute shall:
(a)
organize and administer the
Utah innovation fund
Nucleus Fund
;
and
(b)
(i)
coordinate and support innovation districts that have a connection with higher
education
.
; and
(ii)
oversee and manage the development, programming, and operations of a facility
on point of the mountain state land, as that term is defined in Section
11-59-102
,
that provides collaborative co-working space, classrooms, offices for institutions
of higher education, public education opportunities, and retail space; and
(c)
support state- and corporate-sponsored research to help develop solutions for state
initiatives and commercialization opportunities.
(6)
The institute may:
(a)
engage consultants and legal counsel;
(b)
invest and expend funds;
(c)
apply for grants;
(d)
enter into contracts;
(e)
insure against loss;
(f)
receive private donations;
(g)
hire employees;
(h)
sue and be sued in the institute's own name; and
(i)
perform any other act necessary to carry out the purposes of the institute.
(7)
The institute may not:
(a)
issue debt or borrow funds;
(b)
exercise governmental functions;
(c)
have members; or
(d)
pledge the credit or taxing power of the state or any political subdivision of the state.
Section 9. Section
53H-16-302
is amended to read:
53H-16-302
Effective
07/01/26
. Board of directors -- Membership --
Limitations.
(1)
The institute shall be governed by a board of directors which shall manage and conduct
the business and affairs of the institute.
(2)
The institute board shall consist of seven voting members as follows:
(a)
the executive director, appointed as described in Section
53H-16-304
;
(b)
the director of the Talent Ready Utah Program, described in Section
53H-13-303
; and
(c)
five individuals with relevant experience,
jointly appointed by
whom
the
commissioner
,
and
the executive director
, and the director of the Talent Ready
Utah Program described in Section
53H-13-303
jointly appoint
.
(3)
(a)
A member described in Subsection
(2)(c)
:
(i)
shall serve a term of two years; and
(ii)
may serve more than one term.
(b)
The commissioner, jointly with the executive director
and the director of the Talent
Ready Utah Program described in Section
53H-13-303
, may remove a member from
the institute board.
(c)
If a vacancy occurs for a member described in Subsection
(2)(c)
, the commissioner,
jointly with the executive director and the director of the Talent Ready Utah Program
described in Section
53H-13-303
, shall appoint a replacement to serve the remainder
of the member's term.
(4)
The
commissioner, jointly with the
executive director
,
shall
serve as
appoint
the chair
of the institute board.
(5)
(a)
A majority of the members of the institute board constitutes a quorum of the
institute board.
(b)
The action by a majority of the members of a quorum constitutes the action of the
institute board.
(6)
A member of the institute board:
(a)
is subject to any restrictions on conflicts of interest specified in the organizational
documents of the institute;
(b)
may not influence a vote by the investment committee related to a qualified
investment by the
Utah innovation fund
Nucleus Fund
, if the member has an interest
in the qualified investment; and
(c)
except for the executive director,
may not receive compensation or benefits for the
member's service.
Section 10. Section
53H-16-303
is amended to read:
53H-16-303
Effective
07/01/26
. Institute board duties and powers.
(1)
The institute board shall:
(a)
manage and conduct the business and affairs of the institute and determine all
questions of institute and
Utah innovation fund
Nucleus Fund
policy;
(b)
provide strategic oversight for all institute initiatives;
(c)
support and guide workforce development, innovation, and policy integration across
institutions and industry;
(d)
consistent with this chapter, oversee the
Utah innovation fund
Nucleus Fund
and
investment committee;
(e)
coordinate efforts and collaborations across innovation districts;
(f)
create opportunities for students through projects and partnerships;
(g)
set compensation and incentives for the executive director;
(h)
(g)
advance the purposes of the
Utah innovation fund
Nucleus Fund
as described in
Section
53H-16-402
; and
(i)
(h)
consider investment proposals and determine whether a proposal furthers the
objectives of the fund.
(2)
The institute board may establish independent committees for the purpose of assisting
the institute board in an advisory role.
(3)
In coordination with the Governor's Office of Economic Opportunity, the institute board
shall convene and facilitate discussions with industry, education, and policy makers to
promote regulatory innovation.
Section 11. Section
53H-16-304
is amended to read:
53H-16-304
Effective
07/01/26
. Executive director appointment -- Duties and
powers.
(1)
The commissioner shall appoint
and determine compensation for
an executive director
for the institute.
(2)
The executive director shall serve as the chair of the institute board as described in
Section
53H-16-302
.
(3)
(2)
The executive director shall:
(a)
manage the day-to-day operations of the institute and the
Utah innovation fund
Nucleus Fund
;
(b)
execute the policies of the institute board;
(c)
oversee the investment and expenditure of funds;
(d)
oversee qualified investments made by the
Utah innovation fund
Nucleus Fund
;
(e)
assess reasonable fees for management of assets in the
Utah innovation fund
Nucleus Fund
for reasonable costs of the
Utah innovation fund
Nucleus Fund
;
(f)
consult with the institute board regarding policies and direction of the institute;
(g)
prepare an operating budget for the institute and submit the operating budget to the
Utah Board of Higher Education for approval;
(h)
adopt a budget submitted by the chair of the investment committee;
(i)
establish job descriptions and, within budgetary constraints, employ staff necessary to
accomplish the purposes of the institute and
Utah innovation fund
the Nucleus Fund
;
and
(j)
execute other duties as assigned by the institute board.
(4)
(3)
The executive director may:
(a)
hire and supervise necessary staff for the institute;
(b)
manage contracts and collaborations with consultants; and
(c)
enter into contracts on behalf of the institute.
Section 12. Section
53H-16-402
is amended to read:
53H-16-402
Effective
07/01/26
. Organization of Nucleus Fund -- Powers and
purposes -- Use of investment proceeds.
(1)
(a)
The institute shall organize, and be the sole member and manager of, the
Utah
innovation fund
Nucleus Fund
.
(b)
The
Utah innovation fund
Nucleus Fund
shall be organized as a limited liability
company.
(c)
The
Utah innovation fund
Nucleus Fund
may:
(i)
engage consultants and legal counsel;
(ii)
invest and expend funds;
(iii)
use funds for operations of the
Utah innovation fund
Nucleus Fund
;
(iv)
enter into contracts;
(v)
insure against loss;
(vi)
hire employees; and
(vii)
perform any other act necessary to carry out the purposes of the
Utah
innovation fund
Nucleus Fund
.
(2)
The
Utah innovation fund
Nucleus Fund
shall, subject to investment committee
approval, make qualified investments in a manner and for the following purposes:
(a)
to advance innovative technologies developed in Utah;
(b)
to strengthen Utah's economy and facilitate job creation;
(c)
to help qualified businesses gain access to capital;
(d)
to attract entrepreneurs and innovation to Utah;
(e)
to facilitate the commercialization of technologies discovered, advanced, or
developed at institutions of higher education;
(f)
to advance the competitiveness of Utah businesses in the global economy;
(g)
to ensure that the
Utah innovation fund
Nucleus Fund
remains financially
self-sustaining; and
(h)
to encourage other investors to invest in qualified businesses alongside the
Utah
innovation fund
Nucleus Fund
.
(3)
The
Utah innovation fund
Nucleus Fund
shall hold and manage qualified investments
made by the
Utah innovation fund
Nucleus Fund
and the proceeds of those qualified
investments.
(4)
The
Utah innovation fund
Nucleus Fund
may charge a fee on assets under management
in the
Utah innovation fund
Nucleus Fund
to pay for reasonable and necessary costs of
the
Utah innovation fund
Nucleus Fund
, including the costs of the annual audit required
under Section
53H-16-407
, and compensation incentives based on performance
.
Section 13. Section
53H-16-403
is amended to read:
53H-16-403
Effective
07/01/26
. Nucleus Fund investment committee.
(1)
The
Utah innovation fund
Nucleus Fund
shall be governed by an investment
committee.
(2)
The investment committee shall consist of five members appointed by the institute
board.
(3)
(a)
A member of the investment committee:
(i)
shall serve a term of two years; and
(ii)
may serve more than one term.
(b)
If a vacancy occurs for a member of the investment committee, the institute board
shall appoint a replacement to serve the remainder of the member's term.
(c)
The commissioner
or the institute board
may remove a member of the investment
committee for cause.
(4)
The
institute board
commissioner and executive director
shall
jointly
appoint a chair of
the investment committee.
(5)
The investment committee may appoint up to two additional nonvoting members to
provide industry and technical expertise.
(6)
(a)
A member of the investment committee:
(i)
(a)
shall have significant experience in venture capital or entrepreneurship;
(ii)
(b)
is subject to any restrictions on conflicts of interest specified in the
organizational documents of the institute;
(iii)
(c)
may not participate in a vote by the investment committee related to a qualified
investment by the
Utah innovation fund
Nucleus Fund
if the member has an interest
in the qualified investment; and
(iv)
(d)
except as provided in Subsection
(6)(b)
, may not receive compensation or
benefits for the member's service.
(b)
The chair of the investment committee may receive compensation or benefits for the
chair's service.
(7)
(a)
A majority of the members of the investment committee constitutes a quorum of
the investment committee.
(b)
The action by a majority of the members of a quorum constitutes the action of the
investment committee.
Section 14. Section
53H-16-404
is amended to read:
53H-16-404
Effective
07/01/26
. Nucleus Fund investment committee duties.
(1)
The investment committee shall:
(a)
comply with guidelines and directives from the institute board;
(b)
manage and conduct business affairs of the
Utah innovation fund
Nucleus Fund
;
(c)
establish policies for the management of the
Utah innovation fund
Nucleus Fund
,
including:
(i)
an investment management code of conduct and associated compliance policy;
(ii)
a policy for the strategic allocation of
Utah innovation fund
Nucleus Fund

assets; and
(iii)
a policy articulating the investment committee's investment philosophy for
Utah
innovation fund
Nucleus Fund
assets; and
(d)
ensure that policies adopted by the investment committee are:
(i)
consistent with this chapter, the Utah Constitution, and other applicable law;
(ii)
consistent with sound fiduciary principles; and
(iii)
designed to maintain the integrity of the
Utah innovation fund
Nucleus Fund

and prevent the misapplication of money in the
Utah innovation fund
Nucleus
Fund
.
(2)
The investment committee shall engage a third-party to audit the
Utah innovation fund
Nucleus Fund
at least annually.
Section 15. Section
53H-16-405
is amended to read:
53H-16-405
Effective
07/01/26
. Nucleus Fund investment committee chair --
Duties.
(1)
The institute board shall appoint
and determine compensation for
a chair of the
investment committee.
(2)
The committee chair shall:
(a)
manage and execute the policies established by the institute board and the investment
committee;
(b)
in consultation with the investment committee, manage qualified investments made
by the
Utah innovation fund
Nucleus Fund
;
(c)
annually submit to the institute:
(i)
a budget for the
Utah innovation fund
Nucleus Fund
; and
(ii)
a financial plan for operations of the
Utah innovation fund
Nucleus Fund
;
(d)
in accordance with generally accepted principles of fund accounting, establish a
system to identify and account for
Utah innovation fund
Nucleus Fund
assets;
(e)
maintain appropriate records of
Utah innovation fund
Nucleus Fund
activities to
enable auditors to conduct periodic audits as described in Section
53H-16-407
; and
(f)
fulfill other duties as provided by the investment committee.
Section 16. Section
53H-16-406
is amended to read:
53H-16-406
Effective
07/01/26
. Annual report.
(1)
On or before October 1 of each year, the institute shall publish an annual report of the
activities conducted by the
Utah innovation fund
Nucleus Fund
and submit, in
accordance with Section
68-3-14
, the written report to:
(a)
the governor;
(b)
the Economic Development and Workforce Services Interim Committee; and
(c)
the Executive Appropriations Committee.
(2)
The annual report shall:
(a)
be designed to provide clear, accurate, and accessible information to the public, the
governor, and the Legislature;
(b)
include a copy of the annual audit required under Section
53H-16-407
;
(c)
describe the policies adopted by the institute board under Subsection
53H-16-404(1)(c)
;
(d)
include detailed information regarding:
(i)
the name and location of each qualified business that received capital from the
Utah innovation fund
Nucleus Fund
;
(ii)
the amount of each qualified investment made by the
Utah innovation fund
Nucleus Fund
;
(iii)
the aggregate amount of capital provided to qualified businesses; and
(iv)
realized gains from qualified investments and any realized losses;
(e)
include detailed information regarding the institute's yearly expenditures, including:
(i)
administrative, operating, and financing expenses; and
(ii)
aggregate compensation information for full-time and part-time employees,
including benefit and travel expenses;
(f)
include detailed information regarding all funding sources for administrative,
operating, and financing expenses, including any fees charged by the institute to the
Utah innovation fund
Nucleus Fund
under Subsection
53H-16-304(3)(e)
53H-16-304(2)(e)
; and
(g)
include an explanation of the
Utah innovation fund
's
Nucleus Fund's
progress in
achieving the purposes described in Subsection
53H-16-402(2)
.
Section 17. Section
53H-16-407
is amended to read:
53H-16-407
Effective
07/01/26
. Annual audit.
(1)
Each calendar year, an audit of the activities of the
Utah innovation fund
Nucleus Fund

shall be conducted by:
(a)
the state auditor; or
(b)
the state auditor's designee.
(2)
A designee described in Subsection
(1)(b)
may not have a business, contractual, or other
connection to the institute or the
Utah innovation fund
Nucleus Fund
.
(3)
The annual audit shall:
(a)
include a valuation of the assets owned by the
Utah innovation fund
Nucleus Fund

as of the end of the reporting year, using market-standard techniques for assets
typically held by early stage private investment and venture capital funds;
(b)
include an opinion regarding the accuracy of the information provided in the annual
report described in Section
53H-16-406
; and
(c)
on or before September 1, be delivered to:
(i)
the institute; and
(ii)
the state treasurer.
(4)
The institute shall pay the costs associated with the annual audit.
Section 18. Section
63I-1-253
is amended to read:
63I-1-253
Effective
07/01/26
. Repeal dates: Titles 53 through 53G.
(1)
Section
53-1-122
, Road Rage Awareness and Prevention Restricted Account, is
repealed July 1, 2028.
(2)
Section
53-2a-105
, Emergency Management Administration Council created --
Function -- Composition -- Expenses, is repealed July 1, 2029.
(3)
Section
53-2a-1103
, Search and Rescue Advisory Board -- Members -- Compensation,
is repealed July 1, 2030.
(4)
Section
53-2a-1104
, General duties of the Search and Rescue Advisory Board, is
repealed July 1, 2027.
(5)
Title 53, Chapter 2a, Part 15, Grid Resilience Committee
, is repealed July 1, 2027.
(6)
Section
53-2d-104
, State Emergency Medical Services Committee -- Membership --
Expenses, is repealed July 1, 2029.
(7)
Section
53-2d-503
, Establishment of maximum rates, is repealed July 1, 2027.
(8)
Section
53-5a-302
, Concealed Firearm Review Board -- Membership -- Compensation
-- Terms -- Duties, is repealed July 1, 2029.
(9)
Section
53-11-104
, Board, is repealed July 1, 2029.
(10)
Title
53, Chapter 31
, Department Interaction With Local Law Enforcement, is repealed
July 1, 2027.
(11)
Subsection
53C-3-203
(4)(b)(vii)
, regarding the distribution of money from the Land
Exchange Distribution Account to the Geological Survey for test wells and other
hydrologic studies in the West Desert, is repealed July 1, 2030.
(12)
Subsection
53E-1-201
(1)(q)
, regarding the Higher Education and Corrections Council,
is repealed July 1, 2027.
(13)
Subsection
53E-2-304
(6)
, regarding foreclosing a private right of action or waiver of
governmental immunity, is repealed July 1, 2027.
(14)
Subsection
53E-3-503
(5)
, regarding coordinating councils for youth in care, is
repealed July 1, 2027.
(15)
Subsection
53E-3-503
(6)
, regarding coordinating councils for youth in care, is
repealed July 1, 2027.
(16)
Subsection
53E-4-202
(8)(b)
, regarding a standards review committee, is repealed
January 1, 2028.
(17)
Section
53E-4-203
, Standards review committee, is repealed January 1, 2028.
(18)
Title 53E, Chapter 6, Part 5, Utah Professional Practices Advisory Commission
, is
repealed July 1, 2033.
(19)
Subsection
53E-7-207
(7)
, regarding a private right of action or waiver of governmental
immunity, is repealed July 1, 2027.
(20)
Section
53F-5-215
, Elementary teacher preparation assessment grant, is repealed July
1, 2028.
(21)
Section
53F-5-219
, Local Innovations Civics Education Pilot Program, is repealed July
1, 2026.
(22)
Title 53F, Chapter 10, Part 2, Capital Projects Evaluation Panel
, is repealed July 1,
2027.
(23)
Subsection
53G-4-608
(2)(b)
, regarding the Utah Seismic Safety Commission, is
repealed January 1, 2025.
(24)
Subsection
53G-4-608
(4)(b)
, regarding the Utah Seismic Safety Commission, is
repealed January 1, 2025.
(25)
Section
53G-9-212
, Drinking water quality in schools, is repealed July 1, 2027.
(26)
Subsection
53G-9-703(4)
, regarding the parental video presentation concerning student
use of technology, is repealed January 1, 2030.
(27)
Subsection
53H-1-402(1)(j)
, regarding the Higher Education and Corrections Council,
is repealed July 1, 2027.
(28)
Section
53H-1-604
, Higher Education and Corrections Council, is repealed July 1,
2027.
(29)
Subsection
53H-4-210(3)
, regarding the creation of the SafeUT and School Safety
Commission, is repealed January 1, 2030.
(30)
Subsection
53H-4-210(4)
, regarding the appointment of the members of the SafeUT
and School Safety Commission, is repealed January 1, 2030.
(31)
Subsection
53H-4-210(5)
, regarding the attorney general designating the chair of the
SafeUT and School Safety Commission, is repealed January 1, 2030.
(32)
Subsection
53H-4-210(6)
, regarding the quorum requirements of the SafeUT and
School Safety Commission, is repealed January 1, 2030.
(33)
Subsection
53H-4-210(7)
, regarding a formal action of the SafeUT and School Safety
Commission, is repealed January 1, 2030.
(34)
Subsection
53H-4-210(8)
, regarding compensation for members of the SafeUT and
School Safety Commission, is repealed January 1, 2030.
(35)
Subsection
53H-4-210(9)
, regarding the support staff for the SafeUT and School
Safety Commission, is repealed January 1, 2030.
(36)
Section
53H-4-306.1
, Definitions -- Electrification of Transportation Infrastructure
Research Center, is repealed July 1, 2028.
(37)
Section
53H-4-306.2
, Electrification of Transportation Infrastructure Research Center
-- Designation -- Duties, is repealed July 1, 2028.
(38)
Section
53H-4-306.3
, Electrification of Transportation Infrastructure Research Center
-- Steering committee, is repealed July 1, 2028.
(39)
Section
53H-4-306.4
, Electrification of Transportation Infrastructure Research Center
-- Industry advisory board, is repealed July 1, 2028.
(40)
Section
53H-4-306.5
, Electrification of Transportation Infrastructure Research Center
-- Duties of the project director, is repealed July 1, 2028.
(41)
Section
53H-4-306.6
, Electrification of Transportation Infrastructure Research Center
-- Project development and strategic objectives -- Reporting requirements, is repealed
July 1, 2028.
(42)
Section
53H-4-307.1
, Center for Civic Excellence, is repealed July 1, 2030.
(43)
Section
53H-4-307.2
, Center for Civic Excellence -- Duties -- Authority, is repealed
July 1, 2030.
(44)
Section
53H-4-307.3
, Center for Civic Excellence -- Leadership, is repealed July 1,
2030.
(45)
Section
53H-4-307.4
, Center for Civic Excellence -- Faculty, is repealed July 1, 2030.
(46)
Section
53H-4-307.5
, Center for Civic Excellence -- Curriculum, is repealed July 1,
2030.
(47)
Section
53H-4-307.6
, Center for Civic Excellence -- Oversight -- Reporting, is
repealed July 1, 2030.
(48)
Section
53H-4-313
, Food Security Council, is repealed July 1, 2027.
(49)
Section
53H-8-211
, Higher Education Research Funding Pilot Program, is repealed
July 1, 2030.
(49)
(50)
Section
53H-8-305
, Five-year performance goals, is repealed July 1, 2027.
(50)
(51)
Title
53H, Chapter 10, Part 4
, Education Savings Incentive Program, is repealed
July 1, 2028.
Section 19. Section
63J-1-602.2
is amended to read:
63J-1-602.2
Effective
07/01/26
Partially Repealed
07/01/29
. List of nonlapsing
appropriations to programs.
Appropriations made to the following programs are nonlapsing:
(1)
The Legislature and the Legislature's committees.
(2)
The State Board of Education, including all appropriations to agencies, line items, and
programs under the jurisdiction of the State Board of Education, in accordance with
Section
53F-9-103
.
(3)
The Rangeland Improvement Act created in Section
4-20-101
.
(4)
The Percent-for-Art Program created in Section
9-6-404
.
(5)
The LeRay McAllister Working Farm and Ranch Fund Program created in Title
4,
Chapter 46, Part 3
, LeRay McAllister Working Farm and Ranch Fund.
(6)
The Utah Lake Authority created in Section
11-65-201
.
(7)
Dedicated credits accrued to the Utah Marriage Commission as provided under
Subsection
17-66-303(2)(d)(ii)
.
(8)
The Wildlife Land and Water Acquisition Program created in Section
23A-6-205
.
(9)
Sanctions collected as dedicated credits from Medicaid providers under Subsection
26B-3-108(7)
.
(10)
The primary care grant program created in Section
26B-4-310
.
(11)
The Opiate Overdose Outreach Pilot Program created in Section
26B-4-512
.
(12)
The Utah Health Care Workforce Financial Assistance Program created in Section
26B-4-702
.
(13)
The Rural Physician Loan Repayment Program created in Section
26B-4-703
.
(14)
The Utah Medical Education Council for the:
(a)
administration of the Utah Medical Education Program created in Section
26B-4-707
;
(b)
provision of medical residency grants described in Section
26B-4-711
; and
(c)
provision of the forensic psychiatric fellowship grant described in Section
26B-4-712
.
(15)
The Division of Services for People with Disabilities, as provided in Section
26B-6-402
.
(16)
The Communication Habits to reduce Adolescent Threats (CHAT) Pilot Program
created in Section
26B-7-122
.
(17)
Funds that the Department of Alcoholic Beverage Services retains in accordance with
Subsection
32B-2-301(8)(a)
or
(b)
.
(18)
The General Assistance program administered by the Department of Workforce
Services, as provided in Section
35A-3-401
.
(19)
The Utah National Guard, created in Title
39A, National Guard and Militia Act
.
(20)
The Search and Rescue Financial Assistance Program, as provided in Section
53-2a-1102
.
(21)
The Emergency Medical Services Grant Program, as provided in Section
53-2d-207
.
(22)
The Motorcycle Rider Education Program, as provided in Section
53-3-905
.
(23)
The Utah Board of Higher Education for teacher preparation programs, as provided in
Section
53H-5-402
.
(24)
Innovation grants under Section
53G-10-608
, except as provided in Subsection
53G-10-608(3)
.
(25)
The Higher Education Research Funding Pilot Program created in Section
53H-8-211
.
(25)
(26)
The Division of Fleet Operations for the purpose of upgrading underground
storage tanks under Section
63A-9-401
.
(26)
(27)
The Division of Technology Services for technology innovation as provided
under Section
63A-16-903
.
(27)
(28)
The State Capitol Preservation Board created by Section
63O-2-201
.
(28)
(29)
The Office of Administrative Rules for publishing, as provided in Section
63G-3-402
.
(29)
(30)
The Colorado River Authority of Utah, created in Title
63M, Chapter 14
,
Colorado River Authority of Utah Act.
(30)
(31)
The Governor's Office of Economic Opportunity to fund the Enterprise Zone
Act, as provided in Title
63N, Chapter 2, Part 2
, Enterprise Zone Act.
(31)
(32)
The Governor's Office of Economic Opportunity's Rural Employment Expansion
Program, as described in Title
63N, Chapter 4, Part 4
, Rural Employment Expansion
Program.
(32)
(33)
County correctional facility contracting program for state inmates as described in
Section
64-13e-103
.
(33)
(34)
County correctional facility reimbursement program for state probationary
inmates and state parole inmates as described in Section
64-13e-104
.
(34)
(35)
Programs for the Jordan River Recreation Area as described in Section
65A-2-8
.
(35)
(36)
The Division of Human Resource Management user training program, as
provided in Section
63A-17-106
.
(36)
(37)
A public safety answering point's emergency telecommunications service fund,
as provided in Section
69-2-301
.
(37)
(38)
The Traffic Noise Abatement Program created in Section
72-6-112
.
(38)
(39)
The money appropriated from the Navajo Water Rights Negotiation Account to
the Division of Water Rights, created in Section
73-2-1.1
, for purposes of participating
in a settlement of federal reserved water right claims.
(39)
(40)
The Judicial Council for compensation for special prosecutors, as provided in
Section
77-10a-19
.
(40)
(41)
A state rehabilitative employment program, as provided in Section
78A-6-210
.
(41)
(42)
The Utah Geological Survey, as provided in Section
79-3-401
.
(42)
(43)
The Bonneville Shoreline Trail Program created under Section
79-5-503
.
(43)
(44)
Adoption document access as provided in Sections
81-13-103
,
81-13-504
, and
81-13-505
.
(44)
(45)
Indigent defense as provided in Title
78B, Chapter 22, Part 4
, Utah Indigent
Defense Commission.
(45)
(46)
The program established by the Division of Facilities Construction and
Management under Section
63A-5b-703
under which state agencies receive an
appropriation and pay lease payments for the use and occupancy of buildings owned by
the Division of Facilities Construction and Management.
(46)
(47)
The State Tax Commission for reimbursing counties for deferrals in accordance
with Section
59-2-1802.5
.
(47)
(48)
The Veterinarian Education Loan Repayment Program created in Section
4-2-902
.
Section 20.
FY 2027 Appropriations.
The following sums of money are appropriated for the fiscal year beginning July 1,
2026, and ending June 30, 2027. These are additions to amounts previously appropriated for
fiscal year 2027.
Subsection 20(a).
Operating and Capital Budgets
Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
Legislature appropriates the following sums of money from the funds or accounts indicated for
the use and support of the government of the state of Utah.
HIGHER EDUCATION
UTAH BOARD OF HIGHER EDUCATION
ITEM 1
Utah Board of Higher Education - Administration
From Income Tax Fund, One-time
50,000,000
Pass Through Funding
50,000,000
The Legislature intends that the Utah Board of
Higher Education use the funding in this item to
implement the Higher Education Research Funding Pilot
Program described in Section 53H-8-211.
Section 21.
Effective Date.
This bill takes effect on
July 1, 2026
.
3-6-26 10:30 PM