DENVER, CO – A bill to foster civic-minded businesses and innovators passed the House Business Affairs & Labor Committee today by a vote of 9 to 4. Modifications To Colorado Public Benefit Corporation Act, sponsored by Representative Shannon Bird and Senator Pete Lee would make it easier to start businesses that positively impact communities and a healthy environment across Colorado.
“We want to make Colorado the best place to start a business that broadens horizons in arts, culture, the environment and other community-focused sectors,” said Rep. Shannon Bird D-Westminster. “Coloradans care about the businesses that reside in their neighborhood because it changes the fabric of their community. This bill will make it easier for civic-minded business leaders and innovators to open businesses that make the community a top priority while also turning a profit. We’re excited to champion legislation that fosters community-driven businesses and movies Colorado forward.”
SB22-045 would break down barriers for corporations to register as public benefit corporations. Specifically, this bill would modify the “Public Benefit Corporation Act of Colorado” to simplify the conversion procedures for forming a public benefit corporation (PBC). PBCs are businesses that have a positive effect on a community’s art, charity, culture, economy, education, environment, literature, medicine, religion, science or technology scene.
PBCs are becoming more popular with both consumers and employees that believe corporations should contribute more to the community they reside in and make conscious efforts to reduce their negative environmental impact. The changes in this bill are necessary for Colorado to remain a competitive place for business leaders to form PBCs as other states, including Delaware, reform their laws in a similar way.