Agenda Item 6C
December 12, 2017
Introduction
MEMOR ANDUM
December 8, 2017
TO:
FROM:
County Council
Robert
H.
Drummer, Senior Legislative Attorney ~
Introduction:
Bill 41-17, Economic Development Fund - Small Business
SUBJECT:
Innovation Research and Small Business Technology Transfer Matching Grant Program-
Established
Bill 41-17, Economic Development Fund- Small Business Innovation Research and Small
Business Technology Transfer Matching Grant Program - Established, sponsored by Lead
Sponsor Councilmember Leventhal, is scheduled to be introduced on December 12, 2017. A
public hearing is tentatively scheduled for January 16, 2018 at 1:30 p.m.
Bill 41-17 would establish a Small Business Innovation Research and Small Business
Technology Transfer Matching Grant Program and define eligibility for the Program.
Background
The Small Business Innovation Research Grant (SBIR) and the Small Business
Technology Transfer Grant (STIR) are two different congressionally-mandated grant programs
for U.S. small businesses who engage in research and development that has a strong potential for
commercialization. Bill 41-17 would establish a County matching grant for those County-based
small businesses that receive either a Phase I or Phase II grant under either the SBIR or the STTR
from the National Institutes of Health. The County grant would be limited to 25% of a Phase I
grant up to $25,000 or 25% of a Phase II grant up to $75,000. A grantee would be limited to 1
County matching grant each year and a total of 5 County matching grants under this Program.
The grant program would be administered by the Director of Finance out of the Economic
Development Fund, subject to appropriation.
This packet contains:
Bill 41-17
Legislative Request Report
Circle#
1
4
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\Intro Memo.DOCJC
 PDF to HTML - Convert PDF files to HTML files
4:.
Bill No. _ _ _ _
. :.1--'-1'--'-7_ _ _ __
Development
Concerning: Economic
Fund - Small Business Innovation
Research and Small Business
Technology Transfer Matching Grant
Program - Established
Revised: November
17. 2017
Draft No.
.1
December
12. 2017
Introduced:
June
12 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ----'-No=n=e_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Leventhal
AN ACT
to:
(1)
(2)
(3)
establish a Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program;
define eligibility for the Program; and
generally amend the law governing the Economic Development Fund.
By adding
Montgomery County Code
Chapter 20, Finance
Section 20-76E
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or de.fined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
Deleted.from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
41-17
1
2
Sec.
1.
Section 20-76E is added as follows:
20-76E. Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program.
(a)
3
4
5
6
7
Definitions.
As
used in this Section:
Director means
the Director of Finance or the Director's designee.
Small Business Innovation Research Grant or SBIR
means the
congressionally-mandated set-aside program by that name for U.S. small
businesses to engage in research and development that has a strong
potential for commercialization.
8
9
1O
11
Small Business Technology Transfer Grant or STTR
means the
congressionally-mandated set-aside program by that name for U.S. small
businesses to engage in research and development that has a strong
potential for commercialization.
(b)
12
13
14
15
16
17
(
c)
Grant Program.
The Director of Finance must pay, subject to
appropriation, a SBIR or STIR Matching Grant to each business who
meets certain eligibility standards.
Eligi,bility.
A business is eligible to receive the matching grant if the
business:
(1)
has been awarded a SBIR.or STTRPhase I or Phase II grant during
the current calendar year by the National Institutes of Health; and
(2)
conducts at least 51 % of its research and development operations
at a physical location in the County.
18
19
20
21
22
23
24
25
26
(
d)
Regulations.
The Executive may adopt regulations under Method (2) to
implement this Section.
(
e)
Amount ofgrant.
(1)
An
eligible business may receive:
(002).docx
0
f:\law\bills\1741 edf-small business innovation research\bill 1
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
41-17
27
28
(A)
a match of 25% of a SBIR or STTR Phase I grant, up to a
maximum of $25,000; or
29
30
31
32
33
34
35
36
37
(B)
a match of 25% of a SBIR or STTR Phase II grant, up to a
maximum of $75,000.
(2)
an eligible business may receive only:
(A)
one County matching grant under this Program each year;
and
(B)
a total of five County matching grants under this Program.
(f)
Administration.
( 1)
(2)
The Director must administer the Program.
The Director must require a business to pay back any grant
payments received if the business does not remain in the County
for at least 2 years after receiving the grant payment.
38
39
40
41
42
43
44
45
46
(3)
(4)
Grants must be awarded on a first-come, first-served basis.
An
eligible business that does not receive a grant due to lack of
available funding may be awarded a grant in the following year.
( 5)
The Director must reserve 50% of the appropriated funds for
eligible businesses receiving a Phase I grant and 50% of the
appropriated funds for eligible businesses receiving a Phase II
grant.
Approved:
47
48
Hans D. Riemer, President, County Council
49
Date
Approved:
50
Isiah Leggett, County Executive
Date
(002).docx
0
t\law\bills\1741 edf-small business innovation research\bill 1
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 41-17
Economic Development Fund
-
Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program
-
Established
DESCRIPTION:
Bill 41-17 would establish a Small Business Innovation Research and Small Business
Technology Transfer Matching Grant Program and define eligibility for the Program.
PROBLEM:
GOALSAND
OBJECTIVES:
The County needs to encourage economic development
in
the County.
The goal is to encourage small businesses who receive a federal grant under these
programs to locate operations
in
the County.
COORDINATION:
Department of Finance
FISCAL IMPACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Department of Finance
n/a
n/a
Robert H. Drummer, Senior Legislative Attorney
APPLICATION.
WITHIN
MUNICIPALITIES:
n/a
PENALTIES:
n/a
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\LRR.Docx
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 6C
December 12, 2017
Introduction
MEMOR ANDUM
December 8, 2017
TO:
FROM:
County Council
Robert
H.
Drummer, Senior Legislative Attorney ~
Introduction:
Bill 41-17, Economic Development Fund - Small Business
SUBJECT:
Innovation Research and Small Business Technology Transfer Matching Grant Program-
Established
Bill 41-17, Economic Development Fund- Small Business Innovation Research and Small
Business Technology Transfer Matching Grant Program - Established, sponsored by Lead
Sponsor Councilmember Leventhal, is scheduled to be introduced on December 12, 2017. A
public hearing is tentatively scheduled for January 16, 2018 at 1:30 p.m.
Bill 41-17 would establish a Small Business Innovation Research and Small Business
Technology Transfer Matching Grant Program and define eligibility for the Program.
Background
The Small Business Innovation Research Grant (SBIR) and the Small Business
Technology Transfer Grant (STIR) are two different congressionally-mandated grant programs
for U.S. small businesses who engage in research and development that has a strong potential for
commercialization. Bill 41-17 would establish a County matching grant for those County-based
small businesses that receive either a Phase I or Phase II grant under either the SBIR or the STTR
from the National Institutes of Health. The County grant would be limited to 25% of a Phase I
grant up to $25,000 or 25% of a Phase II grant up to $75,000. A grantee would be limited to 1
County matching grant each year and a total of 5 County matching grants under this Program.
The grant program would be administered by the Director of Finance out of the Economic
Development Fund, subject to appropriation.
This packet contains:
Bill 41-17
Legislative Request Report
Circle#
1
4
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\Intro Memo.DOCJC
 PDF to HTML - Convert PDF files to HTML files
4:.
Bill No. _ _ _ _
. :.1--'-1'--'-7_ _ _ __
Development
Concerning: Economic
Fund - Small Business Innovation
Research and Small Business
Technology Transfer Matching Grant
Program - Established
Revised: November
17. 2017
Draft No.
.1
December
12. 2017
Introduced:
June
12 2019
Expires:
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ----'-No=n=e_ _ _ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Leventhal
AN ACT
to:
(1)
(2)
(3)
establish a Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program;
define eligibility for the Program; and
generally amend the law governing the Economic Development Fund.
By adding
Montgomery County Code
Chapter 20, Finance
Section 20-76E
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or de.fined term.
Added to existing law by original bill.
Deleted.from existing law by original bill.
Added by amendment.
Deleted.from existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
41-17
1
2
Sec.
1.
Section 20-76E is added as follows:
20-76E. Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program.
(a)
3
4
5
6
7
Definitions.
As
used in this Section:
Director means
the Director of Finance or the Director's designee.
Small Business Innovation Research Grant or SBIR
means the
congressionally-mandated set-aside program by that name for U.S. small
businesses to engage in research and development that has a strong
potential for commercialization.
8
9
1O
11
Small Business Technology Transfer Grant or STTR
means the
congressionally-mandated set-aside program by that name for U.S. small
businesses to engage in research and development that has a strong
potential for commercialization.
(b)
12
13
14
15
16
17
(
c)
Grant Program.
The Director of Finance must pay, subject to
appropriation, a SBIR or STIR Matching Grant to each business who
meets certain eligibility standards.
Eligi,bility.
A business is eligible to receive the matching grant if the
business:
(1)
has been awarded a SBIR.or STTRPhase I or Phase II grant during
the current calendar year by the National Institutes of Health; and
(2)
conducts at least 51 % of its research and development operations
at a physical location in the County.
18
19
20
21
22
23
24
25
26
(
d)
Regulations.
The Executive may adopt regulations under Method (2) to
implement this Section.
(
e)
Amount ofgrant.
(1)
An
eligible business may receive:
(002).docx
0
f:\law\bills\1741 edf-small business innovation research\bill 1
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
41-17
27
28
(A)
a match of 25% of a SBIR or STTR Phase I grant, up to a
maximum of $25,000; or
29
30
31
32
33
34
35
36
37
(B)
a match of 25% of a SBIR or STTR Phase II grant, up to a
maximum of $75,000.
(2)
an eligible business may receive only:
(A)
one County matching grant under this Program each year;
and
(B)
a total of five County matching grants under this Program.
(f)
Administration.
( 1)
(2)
The Director must administer the Program.
The Director must require a business to pay back any grant
payments received if the business does not remain in the County
for at least 2 years after receiving the grant payment.
38
39
40
41
42
43
44
45
46
(3)
(4)
Grants must be awarded on a first-come, first-served basis.
An
eligible business that does not receive a grant due to lack of
available funding may be awarded a grant in the following year.
( 5)
The Director must reserve 50% of the appropriated funds for
eligible businesses receiving a Phase I grant and 50% of the
appropriated funds for eligible businesses receiving a Phase II
grant.
Approved:
47
48
Hans D. Riemer, President, County Council
49
Date
Approved:
50
Isiah Leggett, County Executive
Date
(002).docx
0
t\law\bills\1741 edf-small business innovation research\bill 1
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 41-17
Economic Development Fund
-
Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program
-
Established
DESCRIPTION:
Bill 41-17 would establish a Small Business Innovation Research and Small Business
Technology Transfer Matching Grant Program and define eligibility for the Program.
PROBLEM:
GOALSAND
OBJECTIVES:
The County needs to encourage economic development
in
the County.
The goal is to encourage small businesses who receive a federal grant under these
programs to locate operations
in
the County.
COORDINATION:
Department of Finance
FISCAL IMPACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
Department of Finance
n/a
n/a
Robert H. Drummer, Senior Legislative Attorney
APPLICATION.
WITHIN
MUNICIPALITIES:
n/a
PENALTIES:
n/a
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\LRR.Docx