Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0936.01 Alison Killen x4350
SENATE BILL 24-140
Senate Committees House Committees
Business, Labor, & Technology
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF THE COLORADO SMALL BUSINESS101
INNOVATIVE RESEARCH MATCHING PROGRAM .102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill creates the Colorado small business innovative research
matching money program (program) in the Colorado office of economic
development (office). The program provides businesses with money to
match money that a business received pursuant to a federal small business
innovative research (SBIR) program award or a federal small business
technology transfer (STTR) program award. To be eligible for an award
SENATE SPONSORSHIP
Gardner,
HOUSE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. from the program, a business must be Colorado-based and must maintain
a meaningful nexus to the state for at least 3 years following the
commercialization of a service, product, concept, design, or other
marketable asset developed using money from the program. A business
must also agree to certain reporting requirements.
The office may award matching money in an amount up to 100%
of a phase I federal SBIR program or federal STTR program award, not
to exceed $100,000; or, up to 100% of a phase II federal SBIR program
or federal STTR program award, not to exceed $250,000. Matching
money comes from the Colorado small business innovative research
matching fund created in the bill. A business that receives money from
the program, commercializes a service, product, concept, design, or other
marketable asset using the money from the program, and then fails to
maintain a meaningful nexus to the state while continuing to market the
asset, is required to repay all matching money awarded by the program
plus interest.
The office is required to adopt policies for the program that
include eligibility requirements, application procedures, prioritization of
funding applications, the number of awards and amount of money
available for award in any fiscal year, timing of the issuance of money
awarded, provision for repayment of money awarded, the allowable use
of money awarded, requirements for additional nonstate public or private
financing, the conduct of research in the state, requirements for and
review of marketable assets, and provisions to ensure adequate
consideration to the state in exchange for the amount of money awarded
to a business.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 24-48.5-135 as2
follows:3
24-48.5-135. Colorado small business innovative research4
matching program - creation - funding - reports - definitions - repeal.5
(1) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
REQUIRES:7
(a) "C
OMMERCIALIZATION" MEANS THE CREATION BY A BUSINESS8
OF A SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET9
DERIVED IN WHOLE OR IN PART FROM RESEARCH UNDERTAKEN WITH10
SB24-140-2- MATCHING MONEY AWARDED PURSUANT TO THIS SECTION , WHICH RESULTS1
IN REALIZED REVENUES TO THE BUSINESS OF AT LEAST THREE TIMES THE2
MATCHING MONEY AWARDED PURSUANT TO THIS SECTION .3
(b) "F
EDERAL SBIR PROGRAM" MEANS A FEDERAL SMALL4
BUSINESS INNOVATIVE RESEARCH PROGRAM AS DEFINED IN 15 U.S.C. SEC.5
638 (e)(4).6
(c) "F
EDERAL STTR PROGRAM" MEANS A FEDERAL SMALL7
BUSINESS TECHNOLOGY TRANSFER PROGRAM AS DEFINED IN 15 U.S.C. SEC.8
638 (e)(6).9
(d) "F
UND" MEANS THE COLORADO SMALL BUSINESS INNOVATIVE10
RESEARCH CASH FUND CREATED IN SUBSECTION (6) OF THIS SECTION.11
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC12
DEVELOPMENT CREATED IN SECTION 24-48.5-101.13
(f) "P
ROGRAM" MEANS THE COLORADO SMALL BUSINESS14
INNOVATIVE RESEARCH MATCHING MONEY PROGRAM CREATED IN15
SUBSECTION (2) OF THIS SECTION.16
(2) T
HERE IS CREATED IN THE OFFICE THE COLORADO SMALL17
BUSINESS INNOVATIVE RESEARCH MATCHING MONEY PROGRAM . THE18
PURPOSE OF THE PROGRAM IS TO MATCH FEDERAL MONEY AWARDED TO19
C
OLORADO-BASED COMPANIES AS PROVIDED IN THIS SECTION. THE OFFICE20
SHALL AWARD MONEY FROM THE FUND CREATED IN SUBSECTION (6) OF21
THIS SECTION. THE PROGRAM IS ADMINISTERED BY THE OFFICE IN22
ACCORDANCE WITH THE FOLLOWING REQUIREMENTS :23
(a) T
O BE ELIGIBLE TO RECEIVE MATCHING MONEY FROM THE24
PROGRAM, A BUSINESS MUST:25
(I) B
E HEADQUARTERED IN THE STATE OR HAVE AT LEAST FIFTY26
PERCENT OF ITS EMPLOYEES BASED IN THE STATE ;27
SB24-140
-3- (II) AGREE TO MAINTAIN A MEANINGFUL NEXUS TO THE STATE FOR1
NOT LESS THAN THREE YEARS AFTER COMMERCIALIZATION OF A SERVICE ,2
PRODUCT, CONCEPT, DESIGN, OR ANY OTHER MARKETABLE ASSET ;3
(III) H
AVE RECEIVED MONEY FROM A FEDERAL SBIR PROGRAM OR4
FEDERAL STTR PROGRAM; AND5
(IV) P
ROPOSE A SERVICE, PRODUCT, CONCEPT, DESIGN, OR ANY6
OTHER MARKETABLE ASSET THAT HAS A REASONABLE PROBABILITY OF7
PROVIDING ECONOMIC RETURN TO THE STATE , INCLUDING THROUGH THE8
CREATION OF A HIGH-GROWTH COMPANY , CREATION OF NEW JOBS IN THE9
STATE, EXPANSION OF THE STATE TAX BASE, OR DIVERSIFICATION OF THE10
STATE'S ECONOMY.11
(b) I
N ADDITION TO THE ELIGIBILITY REQUIREMENTS SET FORTH IN12
SUBSECTION (2)(a) OF THIS SECTION, TO BE ELIGIBLE TO RECEIVE13
MATCHING MONEY FROM THE PROGR AM A BUSINESS MUST AGREE TO14
PROVIDE A REPORT TO THE OFFICE ON OR BEFORE JULY 1 OF EACH YEAR IN15
THE FOLLOWING MANNER :16
(I) P
RIOR TO COMMERCIALIZATION, THE BUSINESS MUST INCLUDE17
IN ITS REPORT THE PROGRESS OF THE BUSINESS TO COMMERCIALIZE THE18
SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET ;19
(II) I
F THE BUSINESS COMMERCIALIZES A SERVICE , PRODUCT,20
CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET AND CONTINUES TO21
MARKET THE SERVICE, PRODUCT, CONCEPT, DESIGN, OR ASSET, THE22
BUSINESS SHALL INCLUDE IN THE REPORT THE FOLLOWING INFORMATION23
FOR NOT LESS THAN THREE YEARS:24
(A) T
HE NUMBER OF JOBS THE BUSINESS HAS CREATED ;25
(B) A
SALARY RANGE PER JOB;26
(C) T
HE TAXABLE ASSETS OF THE BUSINESS; AND27
SB24-140
-4- (D) ALL REVENUES FROM SALES OF THE SERVICE , PRODUCT,1
CONCEPT, DESIGN, OR OTHER MARKET ASSET.2
(c) T
HE OFFICE SHALL AWARD MONEY TO RECIPIENTS AS3
DETERMINED BY THE OFFICE IN AN AMOUNT NOT TO EXCEED THE4
FOLLOWING:5
(I) F
OR A RECIPIENT OF A FEDERAL SBIR PROGRAM OR FEDERAL6
STTR
PROGRAM PHASE I AWARD, AN AMOUNT MATCHING UP TO ONE7
HUNDRED PERCENT OF THE PHASE I AWARD, NOT TO EXCEED ONE HUNDRED8
THOUSAND DOLLARS; AND9
(II) F
OR A RECIPIENT OF A FEDERAL SBIR PROGRAM OR FEDERAL10
STTR
PROGRAM PHASE II AWARD, AN AMOUNT MATCHING UP TO ONE11
HUNDRED PERCENT OF THE PHASE II AWARD, NOT TO EXCEED TWO12
HUNDRED FIFTY THOUSAND DOLLARS .13
(d) T
HE OFFICE SHALL AWARD MONEY TO THE RECIPIENT AS SOON14
AS PRACTICABLE AFTER THE OFFICE APPROVES THE MATCHING MONEY15
APPLICATION.16
(e) A
RECIPIENT SHALL REPAY ALL MONEY AWARDED PURSUANT17
TO THIS SECTION PLUS INTEREST AT THE RATE OF FOUR PERCENT PER YEAR18
COMPOUNDED ANNUALLY FROM THE DATE THE MONEY WAS AWARDED IF :19
(I) T
HE RECIPIENT COMMERCIALIZES A SERVICE , PRODUCT,20
CONCEPT, DESIGN, OR ANY OTHER MARKETABLE ASSET ; AND21
(II) T
HE RECIPIENT FAILS TO MAINTAIN A SIGNIFICANT NEXUS WITH22
THE STATE FOR THREE YEARS FOLLOWING THE COMMERCIALIZATION OF23
THE SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET24
AND CONTINUES TO MARKET THE SERVICE , PRODUCT, CONCEPT, DESIGN,25
OR OTHER MARKETABLE ASSET .26
(3) (a) T
HE OFFICE SHALL ADOPT PROGRAM POLICIES IN27
SB24-140
-5- ACCORDANCE WITH THIS SECTION THAT INCLUDE :1
(I) E
LIGIBILITY REQUIREMENTS;2
(II) A
PPLICATION PROCEDURES;3
(III) P
RIORITIZATION OF FUNDING APPLICATIONS;4
(IV) T
HE NUMBER OF AWARDS AND AMOUNT OF MONEY5
AVAILABLE FOR AWARD IN ANY FISCAL YEAR ;6
(V) T
IMING OF THE ISSUANCE OF MONEY AWARDED ;7
(VI) P
ROVISIONS SPECIFYING THE ALLOWABLE USE OF MONEY8
AWARDED, REQUIRING A RECIPIENT TO SEEK ADDITIONAL NONSTATE9
PUBLIC OR PRIVATE FINANCING, AND REQUIRING A RECIPIENT TO CONDUCT10
ITS RESEARCH IN THE STATE TO THE EXTENT PRACTICABLE ;11
(VII) P
ROVISION FOR REPAYMENT OF MONEY AWARDED PLUS12
INTEREST AS PROVIDED IN SUBSECTION (2)(e) OF THIS SECTION;13
(VIII) P
ROVISION FOR SERVICE, PRODUCT, CONCEPT, DESIGN, OR14
ASSET REQUIREMENTS AND REVIEW ; AND15
(IX) P
ROVISIONS TO ENSURE ADEQUATE CONSIDERATION TO THE16
STATE IN EXCHANGE FOR THE AM OUNT OF MONEY AWARDED TO A17
RECIPIENT, INCLUDING ASSESSMENT OF THE POTENTIAL FOR THE18
FOLLOWING IN THE STATE:19
(A) C
REATION OF A HIGH-GROWTH COMPANY ;20
(B) C
REATION OF NEW JOBS;21
(C) L
EVERAGING OF NONSTATE PUBLIC OR PRIVATE FINANCING ;22
(D) A
N INCREASE IN PATENTS;23
(E) A
N INCREASE IN THE TAX BASE; AND24
(F) D
IVERSIFICATION OF THE ECONOMY.25
(b) T
HE OFFICE MAY AMEND THE PROGRAM POLICIES ADOPTED26
PURSUANT TO THIS SUBSECTION (3) AT ANY TIME.27
SB24-140
-6- (4) ON OR BEFORE FEBRUARY 1, 2025, THE OFFICE SHALL PUBLISH1
ON THE OFFICE'S WEBSITE THE REQUIREMENTS FOR A BUSINESS TO2
PARTICIPATE IN THE PROGRAM, INCLUDING THE REQUIREMENTS SET FORTH3
IN SUBSECTION (2)(a) OF THIS SECTION, AND THE PROCESS FOR A BUSINESS4
TO APPLY FOR A PROGRAM AWARD .5
(5) T
HE OFFICE SHALL INCLUDE IN ITS ANNUAL REPORT, PURSUANT6
TO SECTION 24-48.5-101 (7), A REPORT DETAILING:7
(a) H
OW THE OFFICE IS EXPENDING THE MONEY APPROPRIATED FOR8
PURPOSES OF THIS SECTION;9
(b) T
HE BUSINESSES SELECTED TO RECEIVE A PROGRAM AWARD ;10
AND11
(c) T
HE CONSIDERATION RECEIVED BY THE STATE IN EXCHANGE12
FOR THE PROGRAM AWARDS IN ACCORDANCE WITH SUBSECTION (3)(a)(IX)13
OF THIS SECTION.14
(6) (a) (I) T
HE COLORADO SMALL BUSINESS INNOVATIVE15
RESEARCH MATCHING CASH FUND IS CREATED IN THE STATE TREASURY .16
T
HE FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO17
SUBSECTION (6)(a)(II) OF THIS SECTION AND ANY OTHER MONEY THAT THE18
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND .19
(II) O
N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER20
FIVE MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND .21
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND22
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE23
FUND TO THE FUND.24
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE25
OFFICE FOR THE PURPOSES OF THE PROGRAM .26
(d) T
HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED27
SB24-140
-7- AND UNENCUMBERED MONEY IN THE FUND ON JANUARY 1, 2029, TO THE1
GENERAL FUND.2
(7) T
HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2029.3
SECTION 2. Act subject to petition - effective date. This act4
takes effect at 12:01 a.m. on the day following the expiration of the5
ninety-day period after final adjournment of the general assembly; except6
that, if a referendum petition is filed pursuant to section 1 (3) of article V7
of the state constitution against this act or an item, section, or part of this8
act within such period, then the act, item, section, or part will not take9
effect unless approved by the people at the general election to be held in10
November 2024 and, in such case, will take effect on the date of the11
official declaration of the vote thereon by the governor.12
SB24-140
-8-