March 7, 2022

BILL TO FOSTER CIVIC-MINDED BUSINESSES PASSES HOUSE

DENVER, CO – A bill to foster civic-minded businesses and innovators passed the House on Third and Final Reading today by a vote of 41 to 20. 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. This bill now heads to the Governor's office.

“The passage of this bill means we’re one step closer to making Colorado the best place for civic-minded business leaders to set up shop,” said Rep. Shannon Bird D-Westminster. “Coloradans feel connected to their neighborhoods and businesses play a special role in fostering that sense of community. Our legislation will make it easier for arts, culture, environmental and other community-focused businesses to open in communities across the state. We’re pleased to move Colorado forward with legislation that attracts businesses to communities where they can have a positive impact.”

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.