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February 16, 2024 SB 24-140
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0936
Sen. Gardner
Date:
Bill Status:
Fiscal Analyst:
February 16, 2024
Senate Business, Labor & Tech.
Brendan Fung | 303-866-4781
brendan.fung@coleg.gov
Bill Topic: SMALL BUSINESS RESEARCH MATCHING PROGRAM
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☐ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
The bill creates the Colorado Small Business Innovative Research Matching Money
Program to match federal funds awarded through the Small Business Innovative
Research and Small Business Technology Transfer programs. It transfers funds and
increases state expenditures for five years starting in FY 2024-25.
Appropriation
Summary:
No appropriation is required. The Colorado Small Business Innovative Research
Matching Cash Fund is continuously appropriated to the Office of Economic
Development.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under SB 24-140
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue - -
Expenditures Cash Funds $1,009,308 $968,134
Centrally Appropriated $25,484 $23,168
Total Expenditures $1,034,792 $991,302
Total FTE 1.1 FTE 1.0 FTE
Transfers General Fund ($5,000,000) -
Cash Funds $5,000,000 -
Net Transfer $0
Other Budget Impacts - -
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February 16, 2024 SB 24-140
Summary of Legislation
The bill creates the Colorado Small Business Innovative Research Matching Money Program in
the Office of Economic Development and International Trade (OEDIT) to match federal funds
awarded to Colorado-based businesses through the Small Business Innovative Research (SBIR)
and Small Business Technology Transfer (STTR) programs.
Grant program. The bill requires OEDIT to administer the grant program and award matching
funds to eligible Colorado-based businesses that have received SBIR or STTR federal funding. To
be considered for matching funds, a business must meet certain criteria and submit an
application that details a specific service, product, or concept that has a reasonable probability
of providing economic return to the state. The bill requires grant recipients to maintain business
in the state for at least three years, or be subject to repayment of awarded funds.
Reporting. By July 1 of each year, selected businesses must provide a report to OEDIT detailing
progress of the business. OEDIT must report grant program data to the General Assembly by
November 1 of each year.
Program funding. The bill creates the Colorado Small Business Innovative Research Matching
Cash Fund and transfers $5.0 million on July 1, 2024, from the General Fund to the fund. Money
in the cash fund is continuously appropriated to OEDIT to administer the program.
The program is repealed on January 1, 2029.
Background
The SBIR and STTR programs are federal programs that provide awards and incentives intended
to encourage domestic small businesses to engage in federal research and development with
the potential for commercialization. For informational purposes, 132 Colorado-based
organizations received a federal SBIR grant and 36 Colorado-based organizations received a
federal STTR grant in 2022.
State Transfers
The bill transfers $5.0 million from the General Fund to the Colorado Small Business Innovative
Research Matching Cash Fund on July 1, 2024.
State Expenditures
The bill increases state expenditures in OEDIT by a total of $5.0 million from FY 2024-25 to
FY 2028-29, paid from the Colorado Small Business Innovative Research Matching Cash Fund.
This fiscal note assumes that money transferred to the fund will be spent evenly over the five-
year period. Expenditures are shown in Table 2 and detailed below.
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February 16, 2024 SB 24-140
Table 2
Expenditures Under SB 24-140
FY 2024-25 FY 2025-26
Office of Economic Development and International Trade
Personal Services $125,137 $113,761
Operating Expenses $1,408 $1,280
Capital Outlay Costs $6,670 -
Salesforce Development $23,000 -
Grants $853,093 $853,093
Centrally Appropriated Costs
1
$25,484 $23,168
Total Cost $1,034,792 $991,302
Total FTE 1.1 FTE 1.0 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Staff. In FY 2024-25, OEDIT requires 1.3 FTE Program Management III to develop program
policies, create and manage the application process, and market program materials. On an
ongoing basis, OEDIT requires 1.0 FTE Program Management III to administer the program,
award grants, evaluate program metrics, and handle accounting and procurement initiatives.
Staff costs and FTE are prorated in the first year based on the bill’s effective date.
Salesforce development. OEDIT uses the management software Salesforce to oversee grant
recipients, applicants, analytics, and application development. In FY 2024-25, OEDIT requires an
estimated $23,000 to integrate the new grant program into Salesforce.
Grants. After administrative costs, about $4.2 million will be available for grants. Assuming
spending is disbursed evenly over a five-year period, about $853,000 in grants will be awarded
each year, with specific amounts determined by OEDIT.
Legal services. OEDIT may require legal services, provided by the Department of Law, which can
be accomplished within existing legal services appropriations. Legal counsel is related to
rulemaking, implementation, and ongoing administration of the program.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs
associated with this bill are addressed through the annual budget process and centrally
appropriated in the Long Bill or supplemental appropriations bills, rather than in this bill. These
costs, which include employee insurance and supplemental employee retirement payments, are
shown in Table 2.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed. Page 4
February 16, 2024 SB 24-140
State and Local Government Contacts
Governor Information Technology Law
Local Affairs Office of Economic Development Personnel
Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.