Senate advances technology commercialization bill to create Utah innovation lab using Fund of Funds resources

The Utah Senate passed second substitute House Bill 42 on Feb. 17, 2023, a measure to establish a technology commercialization effort — described on the floor as a Utah innovation lab — that would use existing Fund of Funds resources to invest in early‑stage commercialization of university research.

Sponsor Senator Milner said the measure is modeled on programs in other states that blend public and private sector resources and aims to convert university intellectual property into marketable companies. Milner said the funding would come from the state's Fund of Funds rather than from general taxpayer appropriations.

Senator Fillmore questioned the source and oversight of the proposed funding, saying on the floor that he read the bill as creating a $15,000,000 public fund that could be exempt from standard investment rules. Milner responded on the floor that the dollars come from the Fund of Funds and are intended as a one‑time fund to be replenished and structured to involve private‑sector participation.

The bill's supporters described the initiative as modest seed funding to help move research toward commercialization with a goal of eventual self‑sustainability; supporters asked the chamber to allow the measure to move forward and for stakeholders to continue review in the near term. After discussion the bill passed the Senate with 19 yea votes, 6 nays and 4 absent.

Noted floor exchange:
- Senator Fillmore: "The way that I read this bill... it sets up a fund of 15,000,000 public dollars that will be exempt from those investment rules."
- Sponsor Millner: "So, it's not coming from the taxpayer dollars. It's coming from the fund of fund dollars... The funds that this comes from comes from that Fund of Funds."