(1) Legislative declaration. (a) The general assembly finds and declares that Colorado
is home to a network of assets and resources, which include research universities,
community colleges, federal laboratories, innovative companies, manufacturing
infrastructure, work force training institutions, and entrepreneurs. To drive growth
in Colorado's economy, the state must focus on increasing the capacity and
competitiveness of these assets and resources and thereby attract greater
investment and provide a competitive advantage for Colorado's advanced
industries. Investment in advanced industries will build public-private partnerships,
drive innovation, and increase capital investment in Colorado's economy.
(b) The general assembly further finds and declares that investment in
advanced industries will:
(I) Drive growth in high-paying, high-skill jobs;
(II) Align educational institutions to create the work force for advanced
industry needs;
(III) Increase exports and competitiveness in global markets;
(IV) Accelerate the commercialization of technologies; and
(V) Promote research and development capabilities across research
universities, community colleges, and federal laboratories.
(c) The general assembly recognizes the value of cross-sector collaboration
and partnerships with research institutions and industry and encourages the
Colorado office of economic development to play an active role in aligning
resources to create and implement strategic initiatives across advanced industries.
(2) Definitions. As used in this section:
(a) Advanced industry means the following industries:
(I) Advanced manufacturing;
(II) Aerospace;
(III) Bioscience;
(IV) Electronics;
(V) Energy and natural resources;
(VI) Infrastructure engineering; and
(VII) Information technology.
(b) Fund means the advanced industries acceleration cash fund created in
paragraph (a) of subsection (7) of this section.
(c) Office of economic development or office means the Colorado office
of economic development created in section 24-48.5-101.
(d) Office of technology transfer means an office that:
(I) Is affiliated with a research institute;
(II) Is responsible for technology transfers; and
(III) Arranges for the sale or licensure of an advanced industry project to a
private entity.
(e) Program means the advanced industries acceleration grant program
created in subsection (3) of this section.
(f) Research institution means an institution located and operating in
Colorado that is a:
(I) Public or private, nonprofit institution of higher education or teaching
hospital;
(II) Federal laboratory;
(III) Private technology and research center; or
(IV) Private, nonprofit medical and research center.
(3) Program. (a) The advanced industries acceleration grant program is
created within the office of economic development. The purpose of the program is
to accelerate economic growth through grants that improve and expand the
development of advanced industries, facilitate the collaboration of advanced
industry stakeholders, and further the development of new advanced industry
products and services. The office of economic development shall administer the
program, which includes proof-of-concept grants, early-stage capital and retention
grants, and infrastructure funding grants. All grants are from money in the
advanced industries acceleration cash fund created in subsection (7) of this section.
Except for the reporting requirement in subsection (6) of this section, the program
ends on July 1, 2034, and all grants must be disbursed prior to that date.
(b) (I) The office of economic development may award a proof-of-concept
grant for an advanced industry research project to an eligible office of technology
transfer.
(II) To be eligible for a proof-of-concept grant, an office of technology
transfer must:
(A) Submit a description of the advanced industry research project;
(B) Provide an analysis demonstrating that the project will provide
significant economic impact or competitive advantage for the state and advanced
industries and that it will accelerate the pace of applied research leading to rapid
commercialization of products and services resulting from the project; and
(C) Have a dedicated, matching source of moneys from its affiliated research
institution that is greater than or equal to one-third of the amount of the requested
grant.
(III) In selecting the recipients of a proof-of-concept grant, the office of
economic development shall give preference to projects sponsored by an office of
technology transfer that:
(A) Include impacts across more than one advanced industry;
(B) Involve more than one research institution or advanced industry
stakeholder; or
(C) Originate from a nonprofit research institution.
(IV) Except as set forth in paragraph (b) of subsection (4) of this section, the
maximum amount of a proof-of-concept grant is one hundred fifty thousand dollars.
(V) A recipient of a proof-of-concept grant shall use the grant only to
accelerate product or service commercialization and shall not use the grant to
support basic research.
(c) (I) The office of economic development may award an early-stage capital
and retention grant to an eligible company for the purpose of accelerating the
commercialization of advanced industry products or services to be manufactured or
performed in Colorado.
(II) To be eligible for an early-stage capital and retention grant, a company
must:
(A) Be in an advanced industry;
(B) Have its headquarters located in Colorado or have at least fifty percent
of its employees based in Colorado;
(C) Have received less than twenty million dollars from other grants and
third-party investors;
(D) Have annual revenues of less than ten million dollars;
(E) Provide an analysis demonstrating that the scope of the project is
required to enhance the commercialization of one or more advanced industry
products or services within the state; and
(F) Have a dedicated, matching source of moneys that is greater than or
equal to twice the amount of the requested grant.
(III) In selecting the recipient of an early-stage capital and retention grant,
the office of economic development shall give preference to a company whose
technology or research and development has application to more than one
advanced industry.
(IV) Except as set forth in paragraph (b) of subsection (4) of this section, the
maximum amount of an early-stage capital and retention grant is two hundred fifty
thousand dollars.
(d) (I) The office of economic development may award an infrastructure
funding grant for an advanced industry project that builds or utilizes infrastructure
to support or enhance the commercialization of advanced industry products or
services or that contributes to the development of an advanced industry work force.
(II) To be eligible for an infrastructure funding grant, a project must:
(A) Substantially increase alignment between private companies within an
advanced industry and research institutions; and
(B) Have a matching source of moneys that is greater than or equal to twice
the amount of the requested grant.
(III) In selecting recipients for the infrastructure funding grants, the office of
economic development shall give preference to projects that:
(A) Accelerate economic growth in more than one advanced industry or
include more than one research institution or advanced industry stakeholder;
(B) Originate from nonprofit research institutions;
(C) Focus on applied research and development, technology acceleration, or
production-oriented or manufacturing-oriented facilities; or
(D) Focus on work force development that addresses the advanced
industries' work force skills that are needed to facilitate commercialization of
products or services.
(IV) Except as set forth in paragraph (b) of subsection (4) of this section, the
maximum amount of an infrastructure funding grant is five hundred thousand
dollars.
(4) Common grant policies. Any grant awarded pursuant to subsection (3) of
this section is subject to the following:
(a) In order to be eligible for a grant, a grant applicant must:
(I) Identify the number of jobs that will be created or retained in the state,
anticipated capital invested or retained in the state, and any other projected
economic impacts that will result from the grant; and
(II) Submit any information required by the office of economic development
to be eligible for a grant;
(b) A limit on the maximum amount of grants does not apply to any applicant
that qualifies for a preference identified in subsection (3) of this section;
(c) The office of economic development shall not pay a grant to a recipient
unless the recipient has received the matching source of moneys that is required
for the grant;
(d) (I) Upon completion of a project that was the basis of a grant, a recipient
shall identify how the grant was used, the number of jobs created or retained in the
state, capital invested or retained in the state, and any other economic impacts that
resulted from the grant; and
(II) Return any unused grant moneys to the office of economic development,
which shall transfer the moneys to the state treasurer for deposit in the advanced
industries acceleration cash fund.
(5) Grant administration. (a) On or before September 1, 2013, the office of
economic development shall establish procedures and timelines for grant
applications; criteria for determining grant amounts, including how preferences will
be applied; grantee reporting requirements; and any other program policies. The
office may amend these policies at any time.
(b) Prior to awarding a grant, the office of economic development shall
consult with the economic development commission about all of the potential
grants and other monetary incentives that an office of technology transfer,
company, or project is eligible to receive from the state.
(c) The office of economic development shall consult with Colorado-based
advanced industries associations or other representatives from advanced industries
about the program. This consultation must include reviewing of program grant
applications and monitoring and evaluating the grantees and the advanced industry
projects.
(d) Subject to the available moneys, there is no limit on the number of grants
that the office of economic development may annually award.
(e) (I) In the 2014 calendar year, the office of economic development shall
award, at a minimum, an amount equal to one-half of the amount credited to the
fund on March 1, 2014, pursuant to section 39-22-604.3, C.R.S., for program grants
to clean technology companies or projects.
(II) In the 2015 calendar year and each calendar year thereafter, the office of
economic development shall award, at a minimum:
(A) Five million five hundred thousand dollars for program grants to
bioscience companies or projects; and
(B) An amount equal to one-half of the amount credited to the fund during
the year pursuant to section 39-22-604.3, C.R.S., for program grants to clean
technology companies or projects.
(III) The office of economic development may use any moneys in the fund
that are not required for the mandatory grants under subparagraph (II) of this
paragraph (e) for program grants to companies or projects from any of the seven
advanced industries.
(f) The office of economic development shall award at least fifteen percent
of the total program grants in a calendar year to each of the three types of grants.
If the office is unable to award this percentage in a given year due to a lack of
qualified applicants, the deficiency does not roll forward to the next year.
(6) Reporting. (a) Notwithstanding section 24-1-136 (11)(a)(I), on or before
November 1, 2014, and November 1 of each of the next twenty years thereafter, the
office of economic development shall submit a report to the finance and the
business, labor, and economic and work force development committees of the
house of representatives and to the business, labor, and technology and the finance
committees of the senate, or any successor committees, summarizing all of the
grants awarded in the program during the preceding fiscal year. At a minimum, the
report must include the amount that each recipient received, a description of each
recipient's use of the grant, the number of jobs created or retained in the state,
capital invested or retained in the state, and any other economic impacts that
resulted from the grant.
(b) Section 24-1-136 (11) does not apply to the report required by paragraph
(a) of this subsection (6).
(7) Fund. (a) The advanced industries acceleration cash fund is created in
the state treasury. The fund consists of:
(I) Moneys transferred to it pursuant to section 24-48.5-108 (5)(c), as said
section existed prior to its repeal in 2015;
(II) Moneys credited to it pursuant to section 39-22-604.3, C.R.S.;
(III) Money transferred to it pursuant to section 44-30-701 (2);
(IV) Five million dollars, which the state treasurer shall transfer from the
general fund to the fund on July 1, 2015, and July 1, 2016;
(V) Moneys credited to it pursuant to subparagraph (II) of paragraph (d) of
subsection (4) of this section;
(VI) Any gifts, grants, or donations credited to it pursuant to paragraph (b) of
this subsection (7); and
(VII) Any other moneys that the general assembly appropriates to it.
(b) (I) The office of economic development is authorized to seek, accept, and
expend gifts, grants, or donations from private or public sources for the purposes of
the program; except that the office may not accept a gift, grant, or donation that is
subject to conditions that are inconsistent with this section or any other law of the
state. The office shall transmit all private and public moneys received through gifts,
grants, or donations to the state treasurer, who shall credit the same to the fund.
(II) (Deleted by amendment, L. 2014.)
(c) (I) The moneys in the fund are 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 program. The office's
administrative expenses for the program in a fiscal year shall not exceed eight
percent of the moneys transferred or appropriated to the fund in the fiscal year.
(II) Repealed.
(d) As provided by law, the state treasurer may invest any unexpended
money in the advanced industries acceleration cash fund. Any unexpended and
unencumbered money remaining in the fund at the end of a fiscal year shall not be
credited or transferred to the general fund or another fund; except that any
unexpended and unencumbered money remaining in the fund upon the repeal of
this section is transferred to the general fund.
(d.5) (I) For state fiscal years commencing on or before July 1, 2024, and on
or after July 1, 2026, the state treasurer shall credit all interest and income derived
from the deposit and investment of money in the fund to the fund.
(II) Notwithstanding subsection (7)(d) of this section, for the state fiscal year
commencing on July 1, 2025, in accordance with section 24-36-114 (1), the state
treasurer shall credit all interest and income derived from the deposit and
investment of money in the fund to the general fund.
(III) (A) On June 30, 2025, the state treasurer shall transfer one million two
hundred fifty-five thousand five hundred forty-three dollars from the fund to the
general fund.
(B) This subsection (7)(d.5)(III) is repealed, effective July 1, 2026.
(e) The transfers to the fund from the general fund moneys that are required
by subparagraph (IV) of paragraph (a) of this subsection (7) must be included for
informational purposes in the annual general appropriation act.
(f) (I) On June 30, 2025, the state treasurer shall transfer eleven million
eleven thousand five hundred fifty dollars from the fund to the general fund.
(II) On June 30, 2026, the state treasurer shall transfer seven million seven
hundred ten thousand five hundred dollars from the fund to the general fund.
(III) This subsection (7)(f) is repealed, effective July 1, 2026.
(8) Repeal. This section is repealed, effective January 1, 2035.