63M-1-1202 - Findings -- Purpose. - Utah Statutes

63M-1-1202. Findings -- Purpose.
(1) The Legislature finds that:
(a) fundamental changes have occurred in national and international financial marketsand in the state's financial markets;
(b) a critical shortage of seed and venture capital resources exists in the state, and thatshortage is impairing the growth of commerce in the state;
(c) a need exists to increase the availability of venture equity capital for emerging,expanding, and restructuring enterprises in Utah, including enterprises in the life sciences,advanced manufacturing, and information technology;
(d) increased venture equity capital investments in emerging, expanding, andrestructuring enterprises in Utah will:
(i) create new jobs in the state; and
(ii) help to diversify the state's economic base; and
(e) a well-trained work force is critical for the maintenance and development of Utah'seconomy.
(2) This part is enacted to:
(a) mobilize private investment in a broad variety of venture capital partnerships indiversified industries and locales;
(b) retain the private-sector culture of focusing on rate of return in the investing process;
(c) secure the services of the best managers in the venture capital industry, regardless oflocation;
(d) facilitate the organization of the Utah fund of funds to seek private investments andto serve as a catalyst in those investments by offering state incentives for private persons to makeinvestments in the Utah fund of funds;
(e) enhance the venture capital culture and infrastructure in the state so as to increaseventure capital investment within the state and to promote venture capital investing within thestate;
(f) accomplish the purposes referred to in Subsections (2)(a) through (e) in a manner thatwould maximize the direct economic impact for the state; and
(g) authorize the issuance and use of contingent tax credits to accomplish the purposesreferred to in Subsections (2)(a) through (e) while protecting the interests of the state by limitingthe manner in which contingent tax credits are issued, registered, transferred, claimed as an offsetto the payment of state income tax, and redeemed.

Renumbered and Amended by Chapter 382, 2008 General Session