First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0590.01 Jennifer Berman x3286SENATE BILL 15-036 SENATE SPONSORSHIP Donovan, HOUSE SPONSORSHIP (None), Senate Committees House Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning the creation of a rural economic emergency assistance grant program for the provision of emergency-based grant funds to rural communities experiencing certain significant economic events that have led to substantial job loss in the rural community, and, in connection therewith, authorizing the division of local government within the department of local affairs to administer the grant program. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill creates: The rural economic emergency assistance grant program (program) in the division of local government within the department of local affairs (division) for the purpose of disbursing emergency-based grant funds to rural communities experiencing significant economic events, such as a plant closure or layoffs including industry-wide layoffs, that have a significant, quantifiable impact on the unemployment rate within the rural community; and The rural economic emergency assistance grant fund, to be administered by the director of the division for implementation of the program and into which $2 million is transferred from the general fund for the 2015-16 fiscal year and to which gifts, grants, and donations may be transmitted. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-32-106, add (1) (h) as follows: 24-32-106. Powers of the director. (1) In order to perform the functions and duties of the division expressly set forth in this part 1, the director, acting under the authority of the executive director of the department of local affairs, has the following powers: (h) To award grants and provide technical assistance under the rural economic emergency assistance grant program created in section 24-32-117. SECTION 2. In Colorado Revised Statutes, add 24-32-117 as follows: 24-32-117. Rural economic emergency assistance grant program - fund - creation - reports - legislative declaration - definitions - repeal. (1) Legislative declaration. (a) The general assembly hereby finds and determines that: (I) Certain significant economic events such as plant closures and layoffs, including industry-wide layoffs, cause substantial job losses, which can have an especially detrimental impact when such substantial job losses occur in rural communities. These events may create a sudden need for dislocated worker services and other economic resources that cannot reasonably be accommodated through a rural community's ongoing operations and budget. (II) Given the emergency economic resources that such a significant economic event may require, rural communities could benefit from the allocation of emergency-based grant funds to help provide reemployment, job training, and other services benefiting dislocated workers and their communities. (b) Therefore, the general assembly determines and declares that it is the responsibility of the state to provide one-time, emergency-based grant funds to help rural communities experiencing significant economic events that lead to substantial job losses through the development of a grant program in the division for allocation of funds to rural communities eligible for such grant funds. (2) Definitions. As used in this section, unless the context otherwise requires: (a) "Department" means the department of local affairs. (b) "Director" means the director of the division of local government or the director's designee. (c) "Rural" means: (I) A county with a population of less than fifty thousand; (II) A municipality with a population of less than fifty thousand that is located fifty miles or more from any municipality with a population of fifty thousand or more; or (III) The unincorporated part of a county fifty miles or more from a municipality with a population of fifty thousand or more. (d) (I) "Significant economic event" or "event" means an economic event occurring within a rural community, including a plant closure or layoffs, including industry-wide layoffs, that may have a significant, quantifiable impact on the unemployment rate within the rural community, as determined by the director when considering grant award eligibility standards established by the director pursuant to this section. (II) "Significant economic event" or "event" includes a series of economic events occurring within a six-month period within a rural community that collectively may have a significant, quantifiable impact on the unemployment rate within the rural community, as determined by the director. (3) Rural economic emergency assistance grant program. (a) For the purpose of assisting rural communities impacted by a significant economic event, the director shall administer the rural economic emergency assistance grant program, also referred to in this section as the "grant program". (b) The director may award a grant to a rural community that applies in a form and manner determined by the director and that sufficiently demonstrates to the director's satisfaction that it has experienced a significant economic event that meets the grant award eligibility standards established by the director. The director's eligibility standards must include consideration of the following factors: (I) The change in economic conditions resulting from the event on: (A) The rural community as a whole; (B) An industry affected by the event; or (C) Any other relevant section of the community capable of delineation; (II) If known, the anticipated duration of the event; (III) The percentage of workers and types of industries within the rural community directly impacted by the event; and (IV) Any impact the event has had or is anticipated to have on other geographic areas of the state. (c) In applying for a grant, a rural community must: (I) To the extent practicable, coordinate with a local rural economic agency such as a local office of the Colorado Rural Development Council, or any successor organization, in preparing the application; (II) Address the factors listed in paragraph (b) of this subsection (3) and any other factors about which the director requires information; (III) Demonstrate the intended use of any grant money awarded by including a plan for use of the money, which plan must be submitted with the application in a form and manner determined by the director; and (IV) Identify potential local funding sources, including any available emergency reserves that the rural community may utilize and any available private funding sources. (d) To the extent practicable and within existing resources and in collaboration with the department and the office of economic development created in section 24-48.5-101, the director shall provide technical assistance to any rural community seeking assistance with any of the application requirements set forth in paragraph (c) of this subsection (3). (e) If two or more rural communities affected by the same event submit a joint grant application, the rural communities must describe in the plan submitted with the application: (I) How the director should distribute the grant money between the rural communities; and (II) Any coordination of services that the rural communities plan to provide. (f) Within sixty days of receipt of a grant application, the director shall notify the grant applicant in writing whether the application is approved or denied. (4) (a) If a rural community that has received a grant award demonstrates to the satisfaction of the director that it lacks sufficient nonmonetary resources to provide adequate services, the director may request that the department assist the rural community with providing services. (b) If the director requests the department's assistance in a rural community, the department, to the extent practicable and within existing resources and in collaboration with the regional manager of the region covering the rural community, shall provide nonmonetary resources to assist the rural community with providing services. (5) Reporting. (a) On or before February 1, 2016, and annually thereafter, the director shall report to the committees of the house of representatives and the senate that hear matters concerning local government on the grant program, including the number of applications received, the number and amounts of grants awarded, and the rural communities' use of grant money that was awarded. On or before February 1, 2021, the director shall give a final report on the implementation of the grant program. (b) For purposes of the reporting requirements in this subsection (5), the director shall develop reporting requirements for rural communities awarded grant money. (6) Rural economic emergency assistance grant fund - gifts, grants, and donations. (a) (I) There is hereby created in the state treasury the rural economic emergency assistance grant fund, referred to in this subsection (6) as the "fund". The director shall administer the fund for implementation of the grant program. (II) For the 2015-16 fiscal year, the state treasurer shall transfer two million dollars from the general fund to the fund for implementation of the grant program. (III) The general assembly may appropriate additional money to the fund. Any money in the fund at the end of the 2015-16 fiscal year remains in the fund. Any interest earned on the investment or deposit of money in the fund remains in the fund and shall not be credited to the general fund. (b) The director may use up to ten percent of the money in the fund annually for the direct and indirect costs associated with the department's administration of the grant program. (c) The director may accept and expend gifts, grants, and donations for the purposes of this section, but the implementation of this section is not dependent on the receipt of gifts, grants, and donations. The director shall transmit all money received through gifts, grants, or donations to the state treasurer, who shall credit it to the fund. (7) This section is repealed, effective July 1, 2021. SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.