Second Regular Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12-0297.01 Jane Ritter x4342 HOUSE BILL 12-1044 HOUSE SPONSORSHIP Ferrandino and Young, SENATE SPONSORSHIP (None), House Committees Senate Committees Economic and Business Development A BILL FOR AN ACT Concerning the creation of the start-up Colorado technology transfer grant program. 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://www.leg.state.co.us/billsummaries.) The bill establishes the start-up Colorado technology transfer grant program (program). The purpose of the program is provide grants of up to $750,000 to offices of technology transfer to help further the commercialization of technology projects and discoveries in Colorado, which will, in turn, lead to the creation of Colorado jobs. The start-up Colorado technology transfer cash fund, not to exceed $5 million, is also created. The program is repealed, effective July 1, 2015. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 24-48.5-108.5 as follows: 24-48.5-108.5. Technology transfer - definitions - start-up Colorado technology transfer grant program - cash fund - grants - reporting requirements - repeal. (1) (a) The general assembly finds that: (I) Additional resources are needed to assist in improving and accelerating the process of technology transfer from research institutions to the private sector; (II) The process of advancing technology research discoveries toward commercialization needs to be accelerated to support the development of new products and services in Colorado; (III) The development of new products and services from technology research discoveries that originate in Colorado will create additional primary jobs in Colorado; and (IV) The state should dedicate resources to support technology transfer efforts with the state's research institutions. (b) The general assembly, therefore, declares that it is in the best interests of the state's economic growth to dedicate financial resources to facilitate the development of new technology research discoveries in Colorado. (2) As used in this section, unless the context otherwise requires: (a) "Director" means the director of the Colorado office of economic development created in section 24-48.5-101. (b) "Fund" means the start-up Colorado technology transfer cash fund created in subsection (5) of this section. (c) "Office of technology transfer" means an office that is affiliated with a research institution and that is charged with the responsibility for technology transfer and that arranges for the sale or licensure of a technology research project to an outside entity, which is commonly a commercial enterprise. (d) "Program" means the start-up Colorado technology transfer grant program created in subsection (3) of this section. (e) "Research institution" means an institution located and operating in Colorado that is a public or private, nonprofit institution of higher education, a nonprofit teaching hospital, or a private, nonprofit medical and research center. (3) (a) There is hereby created in the Colorado office of economic development the start-up Colorado technology transfer grant program for the purpose of improving and expanding the development of technological discoveries and of accelerating the development of new products and services and the creation of new jobs in Colorado. The Colorado office of economic development shall administer the program. The director shall consult with offices of technology transfer in the implementation of the program, including but not limited to the review of program grant applications and the accountability and evaluation of the grantees and research projects. (b) The program shall provide grants to offices of technology transfer on a statewide basis. The grants shall be paid from moneys appropriated to the start-up Colorado technology transfer cash fund created in subsection (5) of this section. The grants shall be provided in amounts not to exceed seven hundred fifty thousand dollars per grantee. (c) To be eligible for a grant from the program, an office of technology transfer shall submit to the Colorado office of economic development all of the following: (I) A description of the project and a plan for technology transfer; (II) A detailed list of secured or potential sources of matching funds; and (III) An analysis demonstrating that the scope of the project is required to enhance the commercialization of the technology that results from the project in Colorado. (d) In awarding grants from the program, the director shall give priority to those technology transfer projects that create jobs in Colorado and those that have available federal or private matching funds. (e) Upon completion of a project for which a grant has been awarded under the program, any unused grant moneys shall be returned to the Colorado office of economic development. The Colorado office of economic development shall transfer the moneys to the state treasurer who shall deposit the same into the fund created in subsection (5) of this section. (4) (a) On or before September 1, 2012, the director shall establish policies for the program that include, but need not be limited to: (I) The procedures and timelines by which an office of technology transfer may apply for a grant from the program; (II) Criteria for determining grant recipients and grant amounts; and (III) Reporting requirements for grant recipients that require, at a minimum, that each office of technology transfer that receives a grant under the program submit, no later than two years after receipt of the grant, a report to the Colorado office of economic development. The report shall describe, at a minimum, the outcomes of the project and the number of Colorado jobs created as a result of the project. (b) On or before April 15, 2015, the director shall submit a report to the finance committees of the house of representatives and the senate, or any successor committees, summarizing the use of all moneys that were awarded as grants from the program. The report shall include, at a minimum, a listing of grant recipients, amounts of grants, and the number of Colorado jobs created as a result of the program. (5) (a) There is hereby created in the state treasury the start-up Colorado technology transfer cash fund, referred to in this section as the "fund", that shall consist of moneys that are appropriated by the general assembly, not to exceed five million dollars, and any moneys transferred to the fund pursuant to subsection (3) of this section. The moneys in the fund shall be subject to annual appropriation by the general assembly for the purposes specified in this section, including administration of the program by the Colorado office of economic development. Any moneys in the fund not expended for the purpose of this section may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year shall remain in the fund and shall not be credited or transferred to the general fund or another fund; except that any unexpended and unencumbered moneys remaining in the fund upon the repeal of this section shall be transferred to the general fund. Any moneys included in an annual appropriation that are not expended or encumbered at the end of the fiscal year shall remain available for expenditure in the next fiscal year without further appropriations. (b) The Colorado office of economic development may use up to five percent of the moneys transferred to the fund for the actual costs incurred in administering the program. (6) This section is repealed, effective July 1, 2015. SECTION 2. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.