Legislature's innovation bills constitute 'an amazing display'

Brice Wallace 

Utah state leaders have praised the results of the 2023 legislative general session and took the time recently to focus on those related to innovation.

During an event that featured ceremonial bill signings, Natalie Gochnour, director of the Kem C. Gardner Policy Institute, called the collection of measures “a remarkable slate of bills on innovation” and “an amazing display of Utah leading.”

Gov. Spencer Cox said the legislation advances Utah, which he said already is known as forward-thinking and innovative.

“These are bills kind of loosely joined together in that they are forward-thinking, they are bills that are encouraging or are themselves innovative and will help Utah as we move into the future. [They are] really about solving problems and making life better.”

One of the most prominent bills is HB42, which creates the Utah Innovation Lab and the Utah Innovation Fund, started with $15 million by the Legislature. The lab will be housed temporarily at the Thomas S. Monson Center at the University of Utah until it moves to the Point of the Mountain development in Draper sometime in the future.

The lab will serve as an incubator site for ideas, a public policy staging area, a catalyst and convener for technology commercialization, a place of continuity for startups, and other functions supportive of new ideas and innovation.

Rep. Jeffrey Stendquist, R-Draper, said the lab will take university research and “turn those into jobs and economic development.”

The lab “helps us take all of the research projects that are being created in our research universities, take that intellectual property, take that innovative research, and turn those into commercialized companies that will help build our economy, build jobs, take those ideas and bring them forward,” he said.

Meanwhile, HB357 focuses on decentralized autonomous organizations, or DAOs. The bill allows a DAO that has not registered as a for-profit corporate entity or a nonprofit entity to be treated as the legal equivalent of a domestic limited liability company. It sets requirements for DAOs to be recognized by the state and establishes the purposes for which a DAO may be formed.

HB357 is “one of the most impactful bills that we passed this session that probably 95 percent of the Legislature has no idea what it does,” Rep. Jordan Teuscher, R-South Jordan, said with a laugh.

The bill “can really revolutionize the way that we look at forming these types of organizations across the country and across the world,” he said, added that it “allows for these companies to continue to innovate and grow in our state.”

Another house bill, HB426, calls for the Office of Energy Development to develop a strategic energy plan and creates the Utah Energy Research Grant Program. A group including representatives from industry, higher education and others will work for six months to create the energy plan.

HB470 requires the Division of Technology Services to create a pilot program and provide recommendations for government entities regarding digital verifiable records and credentials.

Rep. Paul Cutler, R-Centerville, said many people have privacy and security concerns about digital records.

“As we know, digital records are becoming increasingly important in our world, and this was an opportunity to get together and put some guidelines and policy around digital records,” Cutler said.

The bill, he said, establishes a working group “to make sure that Utah is leading in terms of our policy around digital verifiable records and also sets up a pilot to show that this can be done safely and securely.”

On the Senate side, SB35 addressed reciprocal professional licensing and certification by certain state agencies. Rep. Cory Maloy, R-Lehi, said the bill streamlines obtaining a professional license by outsiders coming to Utah, if they were licensed and in a profession in another state, providing their license is in good standing and they meet the Utah licensing requirements.

“I don’t know if we really understand how important this is,” Cox said. “This is leading the nation in changing this.”

Too many states are making it more difficult “for those most in need who have amazing skills to actual enter the workforce,” Cox said. “We are changing that here in Utah and setting a standard for the nation. … We need these wonderful people who are living in our state and have these skills, and now we can utilize them.”
SB62 directs the Department of Natural Resources to establish a hydrogen advisory council within the Office of Energy Development that may advise on issues related to hydrogen.

Rep. Melissa Ballard, R-North Salt Lake, said the council will bring together hydrogen producers, manufacturers, refuelers, distributors and retailers to determine how Utah “can really push and strengthen our position already as the hydrogen hub of the 'Crossroads of the West.'

SB125 designates the ASPIRE Engineering Research Center at Utah State University as the lead research center for strategic planning for electrification of transportation infrastructure. It creates a steering committee and requires the creation of an industry advisory board to assist in the direction of the research center and the initiative.

Sen. Chris Wilson, R-Logan, said a long-term plan is needed as transportation moves toward electrification, including for airplanes, passenger cars and trucks, trains, semis and buses. “We’ve got all kinds of innovation coming down in all different [transportation] modes,” Wilson said.

“We will move to electric vehicles,” said Senate President Stuart Adams. “We see every manufacturer on the planet, in the world, moving to electric vehicles. Again, Utah State and this program will lead the way.”