SB 19-067 — Rural Development Grant Program Creation

First Regular Session Seventy-second General Assembly STATE OF COLORADO INTRODUCEDPREAMENDED This Unofficial Version Includes Committee Amendments Not Yet Adopted on Second Reading LLS NO.

19-0335.01 Esther van Mourik x4215 SENATE BILL 19-067 SENATE SPONSORSHIP Coram, HOUSE SPONSORSHIP (None),McLachlan and Arndt, Senate Committees House Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE CREATION OF THE RURAL DEVELOPMENT GRANT PROGRAM , AND , IN CONNECTION THEREWITH , MAKING AN APPROPRIATION .

The businesses must be at the seed stage of capital financing, have raised less than five hundred thousand dollars of Shading denotes HOUSE amendment.

capital financing, have raised less than five hundred thousand dollars of third-party capital, and are able to provide nonstate matching funding equal to at least one-third of the grant award.

(b) IPORTANTLY ,THOSE AREAS ARE EXPERIENCING INCREASED ECONOMIC DOWNTURN AS MEASURED BY CHANGES IN SUCH FACTORS AS POPULATION ,EMPLOYMENT ,WEEKLY, WEEKLY WAGE ,ASSESSED, ASSESSED VALUE OF ALL PROPERTY ,AND CONCENTRATION OF PUPILS ELIGIBLE FOR FREE LUNC;

T IS IMPERATIVE THAT ALL SECTORS OF THE STATE BE KEPT INDEPENDENTLY STRONG AND BE GIVEN THE CHANCE TO IMPROVE , -2- SB19-067 PROSPER,AND CONTRIBUTE TO THE WHOLE ,FROM WHICH ALL BENEFI.

-2- 067 (2) THE GENERAL ASSEMBLY FURTHER FINDS THAT:

(2) "ARLYSTAGERURALBUSINESS"ERLYSTAGERURALBUSINESS "MEANSAPRIMARYEMPLOYER IN A RURAL AREA WITH THE POTENTIAL TO EXPORT GOODS OR SERVICES OUTSIDE OF THE RURAL AREA THAT IS AT THE SEED STAGE OF CAPITAL FINANCING AND THAT HAS RAISED LESS THAN A TOTAL OF FIVE HUNDRED THOUSAND DOLLARS OF THIRD-PARTY CAPITAL.

-3- SB19-067 (a) ACOUNTY IN THE STATE WITH A POPULATION OF FEWER THAN THIRTY-3- THOUSAND067 ;ORFIFTY THOUSAND;OR (b) AMUNICIPALITY IN THE STATE WITH A POPULATION OF FEWER THANTWENTYTHOUSANDIFTHEMUNICIPALITYISNOTCONTIGUOUSWITH A MUNICIPALITY WITH A POPULATION OF TWENTY THOUSAND OR MORE.

(6) "RURAL DEVELOPMENT GRANT PROGRAM CASH FUND " OR "CASH FUND" MEANS THE RURAL DEVELOPMENT GRANT PROGRAM CASH FUND CREATED IN SECTION24-48.5-407.

(1)(1)HERE TRE IS HEREBY CREATED IN TCEOLORADO OFFICE OF ECONOMICDEVELOPMENTTHERURALDEVELOPMENTGRANTPROGRAMTO PROVIDE GRANTS TO EARLY STAGE RURAL BUSINESSE.

(3) THE OFFICE SHALL ADMINISTER THE GRANT PROGRAM AND ,SHALL SUBJECT TO AVAILABLE APPROPRIATIONS ,SHALL AWARD GRANTS AS PROVIDED IN THIS PARTPART4. 4.

UBJECTRANTS TOSHALL AVAILABLEBE APPROPRIATIONSPAID ,OUT GRANTSSHALLBEOF PAIDOUTMONEY OFMONEYANNUALLYAPPROPRIATEDTOTHEIN GRANTTHE PROGRAMCASH ASFUN. PROVIDED IN SECTION24-48.5-407.

(I) APPLICATION REQUIREMENTS;ANDREQUIREMENTS; (II) THE REVIEW PROCESS BY WHICH BUSINESSES WILL BE DETERMINED TO QUALIFY FOR THE GRANT PROGRAM .

(II) THE REVIEW PROCESS BY WHICH BUSINESSES WILL BE DETERMINED TO QUALIFY FOR THE GRANT PROGRAM ;AND -4- SB19-067067 (b)(III)HEESTABLISHMENTOFACOLLABORATIVEEFFORTWITHTHE HEGUIDELINESMUSTBEPOSTEDONTHEOFFICEDEPARTMENT SWEBSITENOOF LATERLOCAL THANAFFAIRS OTO CTOBERENSURE 1,THAT 2019.ALL PROGRAMS THAT MAYASSISTTHEEARLYSTAGERURALBUSINESSAREMADEKNOWNTOTHE BUSINESS AND ARE FULLY CONSIDERED.

(b) TEGUIDELINESMUSTBEPOSTEDONTHEOFFICE SWEBSITENO LATER THAN O CTOBER 1, 2019.

Rural development grant program - application -criteria-awards.(1) TBEELIGIBLEFORAGRANTOBEELIGIBLEFORAGRANT ,ABUSINESSSHALL :

-5- 067 (b) ABUSINESS MAY APPLY FOR A GRANT EVERY YEAR,AND THE OFFICE MAY AWARD A GRANT TO A PREVIOUS GRANT RECIPIENT SO LONG ASTHEBUSINESSPROVIDESDOCUMENTATIONREGARDINGITSSUCCESSFUL PROGRESS FROM THE PREVIOUS YEAR.

-5- SB19-067 (3) T HE OFFICE SHALL REVIEW THE APPLICATIONS RECEIVED PURSUANT TO THIS PART4 IN A RIGOROUS,COMPETITIVE,MULTI-STAGE REVIEW PROCESS THAT MUST INCLUDE MULTIPLE STAKEHOLDERS.

(4) S UBJECT TO AVAILABLE APPROPRIATIONS,ON OR BEFORE D ECEMBER 1 EACH YEAR OF THE GRANT PROGRAM , THE OFFICE SHALL AWARDGRANTSASPROVIDED IN THIS PART 4.EACHGRANT AWARDMUST INCLUDE ASSIGNED TARGETS FOR EACH AWARD RECIPIENTGRANTS BASEDFROM ON THE APPLICATION,BUSINESSCASH PLAN,ANDFUND BUSINESSON MODELOR FORBEFORE THATD EARLYECEMBER STAGERURALBUSINESS1OF .THEASSIGNEDTARGETSMUSTPROVIDESUCCESSEACH INDICATORSYEAR FOR. THAT PARTICULAR EARLY STAGE RURAL BUSINESS AND MUST BE RELEVANT FOR OTHER SIMILAR BUSINESS PLANS AND BUSINESS MODELS IN THE FUTURE.

EACH GRANT AWARD MUST INCLUDE ASSIGNED TARGETS FOR EACH AWARD RECIPIENT BASED ON THE APPLICATION,BUSINESS PLAN,AND BUSINESS MODEL FOR THAT EARLY STAGERURALBUSINESS .THEASSIGNEDTARGETSMUSTPROVIDESUCCESS INDICATORS FOR THAT PARTICULAR EARLY STAGE RURAL BUSINESS AND MUST BE RELEVANT FOR OTHER SIMILAR BUSINESS PLANS AND BUSINESS MODELS IN THE FUTURE.

(b) OPERATING METRICS INCLUDING REVENUE GROWTH ,JOB -6- 067 CREATION ,AND RETENTION;RETENTION ;

(c) THE CREATION OF PRODUCT OR SERVICE PROTOTYPE;PROTOTYPES;

(d) ADEMONSTRATIONA DEMONSTRATION OF PRODUCT OR SERVICE MARKET FIT;

-6- SB19-067 (e) THE RAISING OF ANY ADDITIONAL CAPIT;LCAPITA; (f) DETAILS REGARDING ANY PROPERTY ADVANCEMENTS ;

(g)(f) DESCRIPTIONSDETAILS OFREGARDING ANY PRODUCTPROPERTY ORADVANCEMENTS SERVICE; LAUNCHE;AND (h) A NY OTHER INFORMATION OR METRICS THAT THE OFFICE REQUESTS IN ITS GUIDELIN.S (2) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(ION OR BEFORE APRIL 15, 2020,AND ON OR BEFORE APRIL 15 EACH YEAR THEREAFTER FOR THE DURATION OF THE GRANT PROGRAM ,THE OFFICE SHALL SUBMIT A SUMMARIZED REPORT TO THE FINANCE COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES,OR ANY SUCCESSOR COMMITTEES ,ONTHEGRANTPROGRAM .ATAMINIMUM ,THEREPORTMUST INCLUDE :

(a)(g) THEDESCRIPTIONS NAMEOF ,TYPE,ANDANY PHYSICALPRODUCT LOCATIONOR OFSERVICE EACHLAUNCHES;AND EARLY(h) STAGEA RURALNY BUSINESSOTHER INFORMATION OR METRICS THAT RECEIVEDTHE AOFFICE GRANTREQUESTS AWARDIN ;ITS GUIDELINE.

(2) NOTWITHSTANDING SECTION 24-1-136 (11)(a)(I)ON OR BEFORE APRIL 15, 2020,AND ON OR BEFORE APRIL 15 EACH YEAR THEREAFTER FOR THE DURATION OF THE GRANT PROGRAM ,THE OFFICE SHALL SUBMIT A SUMMARIZED REPORT TO THE FINANCE COMMITTEES OF THE SENATE AND THE HOUSE OF REPRESENTATIVES ,OR ANY SUCCESSOR COMMITTEES ,ONTHEGRANTPROGRAM .ATAMINIMUM ,THEREPORTMUST INCLUDE :

(a) THE NAME ,TYPE, AND PHYSICAL LOCATION OF EACH EARLY STAGE RURAL BUSINESS THAT RECEIVED A GRANT AWARD ;

FundingRural fordevelopment grant program.program cash fund - creation.

(1) T HERURAL GENERALDEVELOPMENT ASSEMBLYGRANT SHALLPROGRAM ANNUALLYCASH APPROPRIATE MONEY FROM THE GENERAL FUND TOIS THECREATED OFFICEIN TO IMPLEMENT THE GRANTSTATE PROGRAMTREASURY. .

HE OFFICE MAY USE A PORTION OF THE MONEYCASH ANNUALLYFUND APPROPRIATEDCONSISTS FORO: THE GRANT PROGRAM TO PAY THE DIRECT AND INDIRECT COSTS THAT THE OFFICE INCURS TO ADMINISTER THE GRANT PROGRAM.

(a) ANYGIFTS,GRANTS ,ORDONATIONSCREDITEDTOITPURSUANT TO SUBSECTION (2)OF THIS SECTIO;

(b) TWOMILLIONFIVEHUNDREDTHOUSANDDOLLARS ,WHICHTHE -7- 067 STATE TREASURER SHALL TRANSFER FROM THE GENERAL FUND TO THE CASH FUND ON JULY1, 2019;AND (c) A NY OTHER MONEY THAT THE GENERAL ASSEMBLY APPROPRIATES TO I.

(2) THE OFFICE OF ECONOMIC DEVELOPMENT IS AUTHORIZED TO SEEK,ACCEPT,ANDEXPENDGIFTS ,GRANTS ,ORDONATIONSFROMPRIVATE ORPUBLICSOURCESFORTHE PURPOSESOFTHE GRANT PROGRAM ;EXCEPT THAT THE OFFICE MAY NOT ACCEPT AGIFGRANT ,ORDONATION THAT IS SUBJECT TO CONDITIONS THAT ARE INCONSISTENT WITH THIS SECTION OR ANYOTHERLAWOFTHESTATE .THEOFFICESHALLTRANSMITALLPRIVATE AND PUBLIC MONEY RECEIVED THROUGH GIFTS,GRANTS ,OR DONATIONS TO THE STATE TREASURER,WHO SHALL CREDIT THE SAME TO THE CASH FUND .

(3) THE MONEY IN THE CASH FUND IS CONTINUOUSLY APPROPRIATED TO THE OFFICE OF ECONOMIC DEVELOPMENT FOR THE PURPOSE OF AWARDING GRANTS ALLOWED BY THIS SECTION AND FOR ITS ADMINISTRATIVE COSTS ASSOCIATED WITH THE GRANT PROGRAM .

THE OFFICES ADMINISTRATIVE EXPENSES FOR THE GRANT PROGRAM IN A FISCAL YEAR SHALL NOT EXCEED EIGHT PERCENT OF THE MONEY TRANSFERREDORAPPROPRIATEDTOTHE CASHFUNDINTHEFISCALYEAR .

(4) ASPROVIDEDBYLAW THESTATETREASURERMAYINVESTANY UNEXPENDEDMONEYINTHERURALDEVELOPMENTGRANTPROGRAMCASH FUND .

LL INTEREST AND INCOME DERIVED FROM THE INVESTMENT AND DEPOSIT OFMONEY IN THE CASH FUND ARE CREDITED TO THE CASH FU.D A NYUNEXPENDEDANDUNENCUMBEREDMONEYREMAININGINTHECASH FUND AT THE END OF A FISCAL YEAR SHALL NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANOTHER FUND .

-8- 067 24-48.5-408.