DAR File No. 41491

Science Technology and Research Governing Auth., Administration

Rule R856-8

USTAR Lean Launchpad Program Reimbursement

Notice of Proposed Rule

(New Rule)

DAR File No.: 41491
Filed: 04/25/2017 10:15:47 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

USTAR's Lean Launchpad Program (copyright) (LLP) is the adoption of an established curriculum and methodology that provides mentoring, entrepreneurial training, and a methodology to assess the potential for taking a technology to market.

Summary of the rule or change:

The USTAR LLP is designed to provide product-market fit assessment through a training course to private entities and researchers who do not otherwise have access to the curriculum through the programs that are administered at Brigham Young University and the University of Utah to ensure there is no duplication of programs from other state entities (Section 63M-2-302) and assure that services are available to private entities and researchers across the state.

Statutory or constitutional authorization for this rule:

• Subsection 63M-2-504(1)(b)
• Subsection 63M-2-504(1)(a)
• Subsection 63M-2-503(1)(b)

Anticipated cost or savings to:

the state budget:

None--Adoption of this administrative rule does not require additional budget outlays.

local governments:

No local budget impact is anticipated because this program is facilitated by USTAR and only impacts businesses.

small businesses:

Small businesses will now be eligible for USTAR's LLP (copyright) curriculum and methodology that provides mentoring, entrepreneurial training, and a methodology to assess the potential for taking a technology to market. This program will enhance small business competitiveness in obtaining private and public follow-on investment. It is not anticipated that businesses will experience a savings as a result of this mentoring but will potentially enhance their chances of becoming commercially successful. There is no cost to businesses selected to participate.

persons other than small businesses, businesses, or local governmental entities:

No local fiscal impact to persons other than small businesses or businesses is anticipated.

Compliance costs for affected persons:

Companies selected to participate are required to provide the reporting, as applicable, specified in Section 63M-2-703 for at least five years following initial participation in the LLP. Companies must maintain eligibility status for the LLP until the cohort is complete and first-year reporting has been completed or repayment of the grant may be required. Compliance costs are approximately an hour/year of effort. USTAR is unable to estimate the exact cost, since it will vary given the pay of the individual conducting the reporting.

Comments by the department head on the fiscal impact the rule may have on businesses:

Subsections 63M-2-504(1)(a) and (1)(b) instruct the USTAR governing authority to provide mentoring, networking, and entrepreneurial training for a private entity or a researcher to help take a new technology to market. Subsection 63M-2-503(1)(b) provides support to a private entity or a researcher in assessing the potential for bringing a technology to market. Subsection 63M-2-504(2) requires the USTAR governing authority to make rules establishing the eligibility, award process, and reporting criteria for each grant program administered by USTAR. This administrative rule fulfills these requirements.

Ivy Estabrooke, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Science Technology and Research Governing Auth.
Administration
60 E NORTH TEMPLE 3RD FLR
SALT LAKE CITY, UT 84111

Direct questions regarding this rule to:

• Thom Williams at the above address, by phone at 801-538-8633, by FAX at , or by Internet E-mail at thomwilliams@utah.gov
• Christopher Pieper at the above address, by phone at 801-366-0353, by FAX at , or by Internet E-mail at cpieper@utah.gov
• Peter Jay at the above address, by phone at 801-372-3969, by FAX at , or by Internet E-mail at pjay.oldrecord@utah.gov
• Peter Jay at the above address, by phone at 801-372-3969, by FAX at , or by Internet E-mail at pjay@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

06/14/2017

This rule may become effective on:

06/21/2017

Authorized by:

Ivy Estabrooke, Executive Director

R856. Science Technology and Research Governing Authority (Utah), Administration.

R856-8. USTAR Lean Launchpad Program Reimbursement.

R856-8-1. Authority.

Subsections 63M-2-504(1)(a) and (1)(b) instruct the governing authority to provide mentoring, networking and entrepreneurial training for a private entity or researcher to help take a new technology to market. Subsection 63M-2-503(1)(b) provide support to a private entity or researcher in assessing the potential for bringing a technology to market. Subsection 63M-2-504(2) requires the USTAR governing authority to make rules establishing the eligibility, award process, and reporting criteria for each grant program administered by USTAR.

 

R856-8-2. Purpose.

(1) USTAR's Lean Launchpad Program (copyright) (LLP) is the adoption of an established curriculum and methodology that provides mentoring, entrepreneurial training and a methodology to assess the potential for taking a technology to market. The USTAR LLP program is designed to provide this methodology through a training course to private entities and researchers who do not have access to the curriculum through the programs that are administered at Brigham Young University and the University of Utah to ensure there is no duplication of programs from other state entities (Section 63M-2-302), but assure that services are available to private entities and researchers across the State.

(2) Application to USTAR LLP is defined in Utah Administrative Rule R856-8. This rule defines the competitive process for grant funding associated with the USTAR LLP program. The USTAR LLP grants are limited to provide reimbursement of expenses directly associated with completing the course. Use of funds are limited to travel and associated expenses for conducting the interviews required for completion of the course. Funds cannot be used for compensation for team members or other company expenses.

 

R856-8-3. Definitions.

(1) "Applicant" means a private entity team or researcher team has been accepted into a USTAR LLP cohort.

(2) "Awardee(s)" means a team that has been selected for grant associated with participation in USTAR LLP.

(3) "Grant" means an award of funds for a specific purpose.

(4) "Company" means a privately-owned corporation, limited liability company, partnership, or other business entity or association and:

(a) does not include an individual, sole proprietorship, or higher-education institution; and,

(b) is represented by persons at least 18 years old.

(5) "Product-Market fit" means the market demand for a specific technology.

(6) "Researcher" means an employee of a university that conducts research.

(7) "Team" means the three person team from an existing company or research group that includes an entrepreneurial lead, technical lead and market lead.

(8) "Technology" includes applications of scientific research such as inventions, methods, processes, or other material, virtual, or intellectual property.

(9) "University" means any public or nonprofit institution of higher education located in Utah.

(10) "USTAR" means the Utah Science, Technology and Research Initiative.

(11) "USTAR Lean Launchpad" means the delivery of the Lean Launchpad curriculum through a formal course.

(12) "USTAR LLP Grant" means an award for funding to support the activities of a team in a USTAR LLP cohort.

 

R856-8-4. Eligibility Criteria.

(1) Teams must have been selected for a USTAR LLP cohort and be meeting the requirements of the contract at the time of application.

 

R856-8-5. Application Form and Submission Guidelines.

(1) USTAR will provide the following instructions for applicants:

(a) A general procedure for submitting an application.

(b) Instructions for application content, which may include:

(i) Justification for grant funding for participation in USTAR LLP.

(ii) Specific uses of the funds.

(2) Availability of other sources of funding.

(a) Description of the application evaluation process.

(b) Instructions for reporting project results and completing annual follow-up surveys.

(3) All completed applications will be reviewed and awardees selected via the criteria and method outlined herein.

 

R856-8-6. Application Review Procedure.

(1) All applications will be screened by USTAR staff for eligibility.

(2) Applications will be evaluated by USTAR staff.

(3) Final approval will be by the Executive Director USTAR.

 

R856-8-7. Evaluation and Award Criteria.

(1) USTAR staff will use a scoring system to evaluate and rank applications:

(a) The scoring criteria will be made available during the USTAR LLP course;

(b) The scoring system will be designed to assess each application and may include:

(i) Commitment of team to the LLP curriculum.

 

R856-8-8. Required Contract.

(1) USTAR reserves the right to request additional information, or to reject any or all applications based on the eligibility and evaluation criteria set forth in these rules and according to the judgement and discretion of the governing authority.

(2) Unless addressed in the terms and conditions of the contract between company and USTAR, the following provisions shall apply:

(a) company must maintain eligibility status for the LLP program until the cohort is complete and first year reporting has been completed.

(3) Violations of Subsection R856-2-8(4) of this section may require repayment of the grant.

 

R856-8-9. Contract Modifications.

(1) University and Company may request a modification to the terms of an LLP participation agreement.

(2) USTAR may deny a modification request for any reason.

(3) USTAR shall have discretion to agree to reasonable, nonsubstantive changes.

(a) Nonsubstantive changes may include the following:

(i) substitution or addition of a team member due to an emergency, termination of employment with the company, or inability of a team member to fulfill responsibilities provided the new team member is approved by LLP instructors and USTAR staff;

(4) Substantive changes must be approved by the USTAR executive director.

(5) All approved changes shall be made in writing and through an amendment modifying the terms of the participation agreement.

 

R856-8-10. Reporting.

(1) Companies are required to provide the reporting, as applicable, specified in Section 63M-2-703 for at least five (5) years following initial participation in the LLP program.

 

KEY: Utah Science Technology and Research (USTAR), Lean Launchpad Program (LLP)

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, and Implemented or Interpreted Law: 63M-2-302(h)