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Colorado Senate Bill SB140

Colorado 2024 Regular Session

Colorado Senate Bill SB140 Compare Versions

Only one version of the bill is available at this time.
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11 Second Regular Session
22 Seventy-fourth General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 24-0936.01 Alison Killen x4350
88 SENATE BILL 24-140
99 Senate Committees House Committees
1010 Business, Labor, & Technology
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING THE CREATION OF THE COLORADO SMALL BUSINESS101
1414 INNOVATIVE RESEARCH MATCHING PROGRAM .102
1515 Bill Summary
1616 (Note: This summary applies to this bill as introduced and does
1717 not reflect any amendments that may be subsequently adopted. If this bill
1818 passes third reading in the house of introduction, a bill summary that
1919 applies to the reengrossed version of this bill will be available at
2020 http://leg.colorado.gov
2121 .)
2222 The bill creates the Colorado small business innovative research
2323 matching money program (program) in the Colorado office of economic
2424 development (office). The program provides businesses with money to
2525 match money that a business received pursuant to a federal small business
2626 innovative research (SBIR) program award or a federal small business
2727 technology transfer (STTR) program award. To be eligible for an award
2828 SENATE SPONSORSHIP
2929 Gardner,
3030 HOUSE SPONSORSHIP
3131 (None),
3232 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3333 Capital letters or bold & italic numbers indicate new material to be added to existing law.
3434 Dashes through the words or numbers indicate deletions from existing law. from the program, a business must be Colorado-based and must maintain
3535 a meaningful nexus to the state for at least 3 years following the
3636 commercialization of a service, product, concept, design, or other
3737 marketable asset developed using money from the program. A business
3838 must also agree to certain reporting requirements.
3939 The office may award matching money in an amount up to 100%
4040 of a phase I federal SBIR program or federal STTR program award, not
4141 to exceed $100,000; or, up to 100% of a phase II federal SBIR program
4242 or federal STTR program award, not to exceed $250,000. Matching
4343 money comes from the Colorado small business innovative research
4444 matching fund created in the bill. A business that receives money from
4545 the program, commercializes a service, product, concept, design, or other
4646 marketable asset using the money from the program, and then fails to
4747 maintain a meaningful nexus to the state while continuing to market the
4848 asset, is required to repay all matching money awarded by the program
4949 plus interest.
5050 The office is required to adopt policies for the program that
5151 include eligibility requirements, application procedures, prioritization of
5252 funding applications, the number of awards and amount of money
5353 available for award in any fiscal year, timing of the issuance of money
5454 awarded, provision for repayment of money awarded, the allowable use
5555 of money awarded, requirements for additional nonstate public or private
5656 financing, the conduct of research in the state, requirements for and
5757 review of marketable assets, and provisions to ensure adequate
5858 consideration to the state in exchange for the amount of money awarded
5959 to a business.
6060 Be it enacted by the General Assembly of the State of Colorado:1
6161 SECTION 1. In Colorado Revised Statutes, add 24-48.5-135 as2
6262 follows:3
6363 24-48.5-135. Colorado small business innovative research4
6464 matching program - creation - funding - reports - definitions - repeal.5
6565 (1) A
6666 S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
6767 REQUIRES:7
6868 (a) "C
6969 OMMERCIALIZATION" MEANS THE CREATION BY A BUSINESS8
7070 OF A SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET9
7171 DERIVED IN WHOLE OR IN PART FROM RESEARCH UNDERTAKEN WITH10
7272 SB24-140-2- MATCHING MONEY AWARDED PURSUANT TO THIS SECTION , WHICH RESULTS1
7373 IN REALIZED REVENUES TO THE BUSINESS OF AT LEAST THREE TIMES THE2
7474 MATCHING MONEY AWARDED PURSUANT TO THIS SECTION .3
7575 (b) "F
7676 EDERAL SBIR PROGRAM" MEANS A FEDERAL SMALL4
7777 BUSINESS INNOVATIVE RESEARCH PROGRAM AS DEFINED IN 15 U.S.C. SEC.5
7878 638 (e)(4).6
7979 (c) "F
8080 EDERAL STTR PROGRAM" MEANS A FEDERAL SMALL7
8181 BUSINESS TECHNOLOGY TRANSFER PROGRAM AS DEFINED IN 15 U.S.C. SEC.8
8282 638 (e)(6).9
8383 (d) "F
8484 UND" MEANS THE COLORADO SMALL BUSINESS INNOVATIVE10
8585 RESEARCH CASH FUND CREATED IN SUBSECTION (6) OF THIS SECTION.11
8686 (e) "O
8787 FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC12
8888 DEVELOPMENT CREATED IN SECTION 24-48.5-101.13
8989 (f) "P
9090 ROGRAM" MEANS THE COLORADO SMALL BUSINESS14
9191 INNOVATIVE RESEARCH MATCHING MONEY PROGRAM CREATED IN15
9292 SUBSECTION (2) OF THIS SECTION.16
9393 (2) T
9494 HERE IS CREATED IN THE OFFICE THE COLORADO SMALL17
9595 BUSINESS INNOVATIVE RESEARCH MATCHING MONEY PROGRAM . THE18
9696 PURPOSE OF THE PROGRAM IS TO MATCH FEDERAL MONEY AWARDED TO19
9797 C
9898 OLORADO-BASED COMPANIES AS PROVIDED IN THIS SECTION. THE OFFICE20
9999 SHALL AWARD MONEY FROM THE FUND CREATED IN SUBSECTION (6) OF21
100100 THIS SECTION. THE PROGRAM IS ADMINISTERED BY THE OFFICE IN22
101101 ACCORDANCE WITH THE FOLLOWING REQUIREMENTS :23
102102 (a) T
103103 O BE ELIGIBLE TO RECEIVE MATCHING MONEY FROM THE24
104104 PROGRAM, A BUSINESS MUST:25
105105 (I) B
106106 E HEADQUARTERED IN THE STATE OR HAVE AT LEAST FIFTY26
107107 PERCENT OF ITS EMPLOYEES BASED IN THE STATE ;27
108108 SB24-140
109109 -3- (II) AGREE TO MAINTAIN A MEANINGFUL NEXUS TO THE STATE FOR1
110110 NOT LESS THAN THREE YEARS AFTER COMMERCIALIZATION OF A SERVICE ,2
111111 PRODUCT, CONCEPT, DESIGN, OR ANY OTHER MARKETABLE ASSET ;3
112112 (III) H
113113 AVE RECEIVED MONEY FROM A FEDERAL SBIR PROGRAM OR4
114114 FEDERAL STTR PROGRAM; AND5
115115 (IV) P
116116 ROPOSE A SERVICE, PRODUCT, CONCEPT, DESIGN, OR ANY6
117117 OTHER MARKETABLE ASSET THAT HAS A REASONABLE PROBABILITY OF7
118118 PROVIDING ECONOMIC RETURN TO THE STATE , INCLUDING THROUGH THE8
119119 CREATION OF A HIGH-GROWTH COMPANY , CREATION OF NEW JOBS IN THE9
120120 STATE, EXPANSION OF THE STATE TAX BASE, OR DIVERSIFICATION OF THE10
121121 STATE'S ECONOMY.11
122122 (b) I
123123 N ADDITION TO THE ELIGIBILITY REQUIREMENTS SET FORTH IN12
124124 SUBSECTION (2)(a) OF THIS SECTION, TO BE ELIGIBLE TO RECEIVE13
125125 MATCHING MONEY FROM THE PROGR AM A BUSINESS MUST AGREE TO14
126126 PROVIDE A REPORT TO THE OFFICE ON OR BEFORE JULY 1 OF EACH YEAR IN15
127127 THE FOLLOWING MANNER :16
128128 (I) P
129129 RIOR TO COMMERCIALIZATION, THE BUSINESS MUST INCLUDE17
130130 IN ITS REPORT THE PROGRESS OF THE BUSINESS TO COMMERCIALIZE THE18
131131 SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET ;19
132132 (II) I
133133 F THE BUSINESS COMMERCIALIZES A SERVICE , PRODUCT,20
134134 CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET AND CONTINUES TO21
135135 MARKET THE SERVICE, PRODUCT, CONCEPT, DESIGN, OR ASSET, THE22
136136 BUSINESS SHALL INCLUDE IN THE REPORT THE FOLLOWING INFORMATION23
137137 FOR NOT LESS THAN THREE YEARS:24
138138 (A) T
139139 HE NUMBER OF JOBS THE BUSINESS HAS CREATED ;25
140140 (B) A
141141 SALARY RANGE PER JOB;26
142142 (C) T
143143 HE TAXABLE ASSETS OF THE BUSINESS; AND27
144144 SB24-140
145145 -4- (D) ALL REVENUES FROM SALES OF THE SERVICE , PRODUCT,1
146146 CONCEPT, DESIGN, OR OTHER MARKET ASSET.2
147147 (c) T
148148 HE OFFICE SHALL AWARD MONEY TO RECIPIENTS AS3
149149 DETERMINED BY THE OFFICE IN AN AMOUNT NOT TO EXCEED THE4
150150 FOLLOWING:5
151151 (I) F
152152 OR A RECIPIENT OF A FEDERAL SBIR PROGRAM OR FEDERAL6
153153 STTR
154154 PROGRAM PHASE I AWARD, AN AMOUNT MATCHING UP TO ONE7
155155 HUNDRED PERCENT OF THE PHASE I AWARD, NOT TO EXCEED ONE HUNDRED8
156156 THOUSAND DOLLARS; AND9
157157 (II) F
158158 OR A RECIPIENT OF A FEDERAL SBIR PROGRAM OR FEDERAL10
159159 STTR
160160 PROGRAM PHASE II AWARD, AN AMOUNT MATCHING UP TO ONE11
161161 HUNDRED PERCENT OF THE PHASE II AWARD, NOT TO EXCEED TWO12
162162 HUNDRED FIFTY THOUSAND DOLLARS .13
163163 (d) T
164164 HE OFFICE SHALL AWARD MONEY TO THE RECIPIENT AS SOON14
165165 AS PRACTICABLE AFTER THE OFFICE APPROVES THE MATCHING MONEY15
166166 APPLICATION.16
167167 (e) A
168168 RECIPIENT SHALL REPAY ALL MONEY AWARDED PURSUANT17
169169 TO THIS SECTION PLUS INTEREST AT THE RATE OF FOUR PERCENT PER YEAR18
170170 COMPOUNDED ANNUALLY FROM THE DATE THE MONEY WAS AWARDED IF :19
171171 (I) T
172172 HE RECIPIENT COMMERCIALIZES A SERVICE , PRODUCT,20
173173 CONCEPT, DESIGN, OR ANY OTHER MARKETABLE ASSET ; AND21
174174 (II) T
175175 HE RECIPIENT FAILS TO MAINTAIN A SIGNIFICANT NEXUS WITH22
176176 THE STATE FOR THREE YEARS FOLLOWING THE COMMERCIALIZATION OF23
177177 THE SERVICE, PRODUCT, CONCEPT, DESIGN, OR OTHER MARKETABLE ASSET24
178178 AND CONTINUES TO MARKET THE SERVICE , PRODUCT, CONCEPT, DESIGN,25
179179 OR OTHER MARKETABLE ASSET .26
180180 (3) (a) T
181181 HE OFFICE SHALL ADOPT PROGRAM POLICIES IN27
182182 SB24-140
183183 -5- ACCORDANCE WITH THIS SECTION THAT INCLUDE :1
184184 (I) E
185185 LIGIBILITY REQUIREMENTS;2
186186 (II) A
187187 PPLICATION PROCEDURES;3
188188 (III) P
189189 RIORITIZATION OF FUNDING APPLICATIONS;4
190190 (IV) T
191191 HE NUMBER OF AWARDS AND AMOUNT OF MONEY5
192192 AVAILABLE FOR AWARD IN ANY FISCAL YEAR ;6
193193 (V) T
194194 IMING OF THE ISSUANCE OF MONEY AWARDED ;7
195195 (VI) P
196196 ROVISIONS SPECIFYING THE ALLOWABLE USE OF MONEY8
197197 AWARDED, REQUIRING A RECIPIENT TO SEEK ADDITIONAL NONSTATE9
198198 PUBLIC OR PRIVATE FINANCING, AND REQUIRING A RECIPIENT TO CONDUCT10
199199 ITS RESEARCH IN THE STATE TO THE EXTENT PRACTICABLE ;11
200200 (VII) P
201201 ROVISION FOR REPAYMENT OF MONEY AWARDED PLUS12
202202 INTEREST AS PROVIDED IN SUBSECTION (2)(e) OF THIS SECTION;13
203203 (VIII) P
204204 ROVISION FOR SERVICE, PRODUCT, CONCEPT, DESIGN, OR14
205205 ASSET REQUIREMENTS AND REVIEW ; AND15
206206 (IX) P
207207 ROVISIONS TO ENSURE ADEQUATE CONSIDERATION TO THE16
208208 STATE IN EXCHANGE FOR THE AM OUNT OF MONEY AWARDED TO A17
209209 RECIPIENT, INCLUDING ASSESSMENT OF THE POTENTIAL FOR THE18
210210 FOLLOWING IN THE STATE:19
211211 (A) C
212212 REATION OF A HIGH-GROWTH COMPANY ;20
213213 (B) C
214214 REATION OF NEW JOBS;21
215215 (C) L
216216 EVERAGING OF NONSTATE PUBLIC OR PRIVATE FINANCING ;22
217217 (D) A
218218 N INCREASE IN PATENTS;23
219219 (E) A
220220 N INCREASE IN THE TAX BASE; AND24
221221 (F) D
222222 IVERSIFICATION OF THE ECONOMY.25
223223 (b) T
224224 HE OFFICE MAY AMEND THE PROGRAM POLICIES ADOPTED26
225225 PURSUANT TO THIS SUBSECTION (3) AT ANY TIME.27
226226 SB24-140
227227 -6- (4) ON OR BEFORE FEBRUARY 1, 2025, THE OFFICE SHALL PUBLISH1
228228 ON THE OFFICE'S WEBSITE THE REQUIREMENTS FOR A BUSINESS TO2
229229 PARTICIPATE IN THE PROGRAM, INCLUDING THE REQUIREMENTS SET FORTH3
230230 IN SUBSECTION (2)(a) OF THIS SECTION, AND THE PROCESS FOR A BUSINESS4
231231 TO APPLY FOR A PROGRAM AWARD .5
232232 (5) T
233233 HE OFFICE SHALL INCLUDE IN ITS ANNUAL REPORT, PURSUANT6
234234 TO SECTION 24-48.5-101 (7), A REPORT DETAILING:7
235235 (a) H
236236 OW THE OFFICE IS EXPENDING THE MONEY APPROPRIATED FOR8
237237 PURPOSES OF THIS SECTION;9
238238 (b) T
239239 HE BUSINESSES SELECTED TO RECEIVE A PROGRAM AWARD ;10
240240 AND11
241241 (c) T
242242 HE CONSIDERATION RECEIVED BY THE STATE IN EXCHANGE12
243243 FOR THE PROGRAM AWARDS IN ACCORDANCE WITH SUBSECTION (3)(a)(IX)13
244244 OF THIS SECTION.14
245245 (6) (a) (I) T
246246 HE COLORADO SMALL BUSINESS INNOVATIVE15
247247 RESEARCH MATCHING CASH FUND IS CREATED IN THE STATE TREASURY .16
248248 T
249249 HE FUND CONSISTS OF MONEY TRANSFERRED TO THE FUND PURSUANT TO17
250250 SUBSECTION (6)(a)(II) OF THIS SECTION AND ANY OTHER MONEY THAT THE18
251251 GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND .19
252252 (II) O
253253 N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER20
254254 FIVE MILLION DOLLARS FROM THE GENERAL FUND TO THE FUND .21
255255 (b) T
256256 HE STATE TREASURER SHALL CREDIT ALL INTEREST AND22
257257 INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE23
258258 FUND TO THE FUND.24
259259 (c) M
260260 ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE25
261261 OFFICE FOR THE PURPOSES OF THE PROGRAM .26
262262 (d) T
263263 HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED27
264264 SB24-140
265265 -7- AND UNENCUMBERED MONEY IN THE FUND ON JANUARY 1, 2029, TO THE1
266266 GENERAL FUND.2
267267 (7) T
268268 HIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2029.3
269269 SECTION 2. Act subject to petition - effective date. This act4
270270 takes effect at 12:01 a.m. on the day following the expiration of the5
271271 ninety-day period after final adjournment of the general assembly; except6
272272 that, if a referendum petition is filed pursuant to section 1 (3) of article V7
273273 of the state constitution against this act or an item, section, or part of this8
274274 act within such period, then the act, item, section, or part will not take9
275275 effect unless approved by the people at the general election to be held in10
276276 November 2024 and, in such case, will take effect on the date of the11
277277 official declaration of the vote thereon by the governor.12
278278 SB24-140
279279 -8-