Agenda Item 9
January 16, 2018
Public Hearing
MEM ORAN DUM
January 12, 2018
TO:
FROM:
County Council
Robert
H.
Drummer, Senior Legislative
Attorney
M
___. )
Public Hearing:
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 and Co-Sponsors Council President Riemer, Councilmembers
Rice, Elrich, Berliner, Katz, Council Vice-President Navarro and Councilmembers Rucker and
Floreen, was introduced on December 12, 2017. A Planning Housing and Economic Development
Committee worksession is tentatively scheduled for March 5, 2018 at 2:30 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 Researc h 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
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\PH Memo.Docx
Circle#
1
4
 PDF to HTML - Convert PDF files to HTML files
Bill No.
41-17
Concerning: Economic
Development
Fund - Small Business Innovation
Research and Small Business
Technology Transfer Matching Grant
Program - Established
Revised: December
12. 2017
Draft No.
2-_
Introduced:
December
12, 2017
Expires:
June
12 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~N=on~e~------
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Leventhal
Co-Sponsors: Council President Riemer, Councilmembers Rice, Elrich, Berliner, Katz, Council
Vice-President Navarro and Councilmembers Rucker and Floreen
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 defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom 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
Sec.
1.
Section 20-76E is added as follows:
20-76E. Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program.
(a)
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.
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)
Grant Program.
The Director of Finance must pay, subject to
2
3
4
5
6
7
8
9
1O
11
12
13
14
15
16
17
18
19
(
c)
appropriation, a SBIR or STTR Matching Grant to each business who
meets certain eligibility standards.
Eligibility.
A business is eligible to receive the matching grant if the
business:
( 1)
has been awarded a SBIR or STTR Phase I or Phase II grant during
the current calendar year by the National fustitutes of Health; and
(2)
conducts at least 51
%
of its research and development operations
at a physical location in the County.
(
d)
20
21
22
23
24
25
26
Regulations.
The Executive may adopt regulations under Method (2) to
implement this Section.
(
e)
Amount ofgrant.
( 1)
An
eligible business may receive:
@t:\law\bills\17 41 edf-small business innovation research\bill 2.docx
 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 STIR 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.
(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.
38
39
40
41
42
43
44
45
46
47
Approved:
48
Hans D. Riemer, President, County Council
49
Approved:
Date
50
Isiah Leggett, County Executive
Date
0f:\law\bills\1741 edf-small business innovation research\bill 2.docx
 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:
GOALS AND
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
0
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 9
January 16, 2018
Public Hearing
MEM ORAN DUM
January 12, 2018
TO:
FROM:
County Council
Robert
H.
Drummer, Senior Legislative
Attorney
M
___. )
Public Hearing:
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 and Co-Sponsors Council President Riemer, Councilmembers
Rice, Elrich, Berliner, Katz, Council Vice-President Navarro and Councilmembers Rucker and
Floreen, was introduced on December 12, 2017. A Planning Housing and Economic Development
Committee worksession is tentatively scheduled for March 5, 2018 at 2:30 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 Researc h 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
F:\LAW\BILLS\1741 EDF-Small Business Innovation Research\PH Memo.Docx
Circle#
1
4
 PDF to HTML - Convert PDF files to HTML files
Bill No.
41-17
Concerning: Economic
Development
Fund - Small Business Innovation
Research and Small Business
Technology Transfer Matching Grant
Program - Established
Revised: December
12. 2017
Draft No.
2-_
Introduced:
December
12, 2017
Expires:
June
12 2019
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: ~N=on~e~------
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember Leventhal
Co-Sponsors: Council President Riemer, Councilmembers Rice, Elrich, Berliner, Katz, Council
Vice-President Navarro and Councilmembers Rucker and Floreen
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 defined term.
Added to existing law by original bill.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom 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
Sec.
1.
Section 20-76E is added as follows:
20-76E. Small Business Innovation Research and Small Business Technology
Transfer Matching Grant Program.
(a)
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.
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)
Grant Program.
The Director of Finance must pay, subject to
2
3
4
5
6
7
8
9
1O
11
12
13
14
15
16
17
18
19
(
c)
appropriation, a SBIR or STTR Matching Grant to each business who
meets certain eligibility standards.
Eligibility.
A business is eligible to receive the matching grant if the
business:
( 1)
has been awarded a SBIR or STTR Phase I or Phase II grant during
the current calendar year by the National fustitutes of Health; and
(2)
conducts at least 51
%
of its research and development operations
at a physical location in the County.
(
d)
20
21
22
23
24
25
26
Regulations.
The Executive may adopt regulations under Method (2) to
implement this Section.
(
e)
Amount ofgrant.
( 1)
An
eligible business may receive:
@t:\law\bills\17 41 edf-small business innovation research\bill 2.docx
 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 STIR 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.
(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.
38
39
40
41
42
43
44
45
46
47
Approved:
48
Hans D. Riemer, President, County Council
49
Approved:
Date
50
Isiah Leggett, County Executive
Date
0f:\law\bills\1741 edf-small business innovation research\bill 2.docx
 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:
GOALS AND
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
0