Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0381.01 Jennifer Berman x3286SENATE BILL 16-081 SENATE SPONSORSHIP Donovan, Kefalas, Hodge, Garcia, Todd, Aguilar, Newell, Jones, Guzman, Johnston, Kerr, Merrifield, Steadman HOUSE SPONSORSHIP Young, Senate Committees House Committees Local Government Appropriations 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 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) within the department of local affairs (department) 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 jobs within the rural community. The bill also creates the rural economic emergency assistance grant fund, to be administered by the executive director of the department, for implementation of the program and into which $2 million is transferred from the unclaimed property trust fund for the 2016-17 state fiscal year and to which grants, gifts, and donations may be transmitted. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add part 35 to article 32 of title 24 as follows: PART 35 RURAL ECONOMIC EMERGENCY ASSISTANCE GRANTS 24-32-3501. Rural economic emergency assistance grant program - fund - creation - reports - legislative declaration - definitions - repeal. (1) Legislative declaration. The general assembly hereby finds and determines that: (a) 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; and (b) These events may create a sudden need for workforce, community, and economic development and for capacity that cannot reasonably be accommodated through a rural community's ongoing operations and budget. (2) Therefore, the general assembly determines and declares that emergency-based grant funds would help rural communities experiencing significant economic events that lead to substantial job losses through the development of a grant program in the department. 24-32-3502. Definitions. As used in this part 35, unless the context otherwise requires: (1) "Department" means the department of local affairs. (2) "Executive director" means the executive director of the department or the executive director's designee. (3) (a) "Rural" means: (I) A county with a population of fewer than fifty thousand; or (II) A municipality with a population of fewer than twenty thousand if the municipality is not contiguous to a municipality with a population of twenty thousand or more. (b) The executive director may modify the definition of "rural" as necessary to implement the grant program created in section 24-32-3503. (4) (a) "Significant economic event" or "event" means an economic event occurring within a rural community or region, including a plant closure or layoffs, including industry-wide layoffs, that may have a significant, quantifiable impact on the total jobs within the rural community, as determined by the executive director when considering grant award eligibility standards established by the executive director pursuant to this section. (b) "Significant economic event" or "event" includes a series of economic events occurring within a twelve-month period within a rural community that collectively might have a significant, quantifiable impact on the total jobs within the rural community, as determined by the executive director. 24-32-3503. Rural economic emergency assistance grant program. (1) For the purpose of assisting rural communities impacted by a significant economic event or an anticipated event that has been announced, the executive director shall administer the rural economic emergency assistance grant program, also referred to in this section as the "grant program". (2) The executive director may award a grant to a rural community that applies in a form and manner determined by the executive director and that sufficiently demonstrates to the executive director's satisfaction that it has experienced a significant economic event that meets the grant award eligibility standards established by the executive director. The executive director's eligibility standards must include consideration of the following factors: (a) The change in economic conditions resulting from the event on: (I) The rural community as a whole; (II) An industry affected by the event; or (III) Any other relevant sector of the community capable of delineation; (b) If known, the anticipated duration of the event; (c) The percentage of workers and types of industries within the rural community directly impacted by the event; (d) Any negative impact the event has had or is anticipated to have on other geographic areas of the state; and (e) The rural community's ability and capacity to manage the event or its negative impacts. (3) When applying for a grant, a rural community must: (a) To the extent practicable, coordinate with a local, state, or federal agency or a nonprofit organization with expertise in rural community development in preparing the application; (b) Address the factors listed in subsection (2) of this section and any other information the executive director requires; (c) 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 executive director; and (d) Identify potential local funding sources, including any available emergency reserves that the rural community may utilize and any available private funding sources. (4) To the extent practicable and within existing resources and in collaboration with the department of labor and employment created in section 24-1-121 and the office of economic development created in section 24-48.5-101, the executive director shall provide technical assistance to any rural community seeking assistance with any of the application requirements set forth in subsection (3) of this section. (5) 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: (a) How the grantee should allocate the grant money between the rural communities; and (b) Any coordination of services that the rural communities plan to provide. (6) Within sixty days of receipt of a complete grant application, the executive director shall notify the grant applicant in writing whether the application is approved or denied. (7) (a) If a rural community that has received a grant award demonstrates to the satisfaction of the executive director that it lacks sufficient nonmonetary resources, including technical assistance, to provide adequate services, the executive director may coordinate the provision of nonmonetary resources to the rural community for capacity building. (b) If the executive director authorizes capacity building assistance under paragraph (a) of this subsection (7), the department, to the extent practicable and within existing resources and in collaboration with the department of labor and employment, the office of economic development, and the department's regional manager of the region covering the rural community, shall provide nonmonetary resources to assist the rural community with providing services. 24-32-3504. Reporting. (1) On or before March 1, 2017, and annually thereafter, the executive director shall report to the committees of the house of representatives and the senate that hear matters concerning local government on the grant program and include information about 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 March 1, 2022, the executive director shall give a final report to the same committees on the implementation of the grant program. (2) For purposes of the reporting requirements in this section, the executive director shall develop reporting requirements for rural communities that have been awarded grant money. 24-32-3505. Rural economic emergency assistance grant fund - gifts, grants, and donations. (1) There is hereby created in the state treasury the rural economic emergency assistance grant fund, referred to in this section as the "fund". The executive director shall administer the fund for implementation of the grant program. (2) On July 1, 2016, the state treasurer shall transfer two million dollars from the unclaimed property trust fund to the fund in accordance with section 38-13-116.5 (2.8) (a.5), C.R.S., for implementation of the grant program. (3) The general assembly may annually appropriate additional money to the fund. Any money in the fund at the end of each 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. (4) The executive 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 executive director shall transmit all money received through gifts, grants, or donations to the state treasurer, who shall credit it to the fund. 24-32-3506. Repeal. This part 35 is repealed, effective July 1, 2022. SECTION 2. In Colorado Revised Statutes, 38-13-116.5, add (2.8) (a.5) as follows: 38-13-116.5. Unclaimed property trust fund - creation - payments - interest - appropriations - records - rules -repeal. (2.8) (a.5) (I) On July 1, 2016, after reserving the amounts described in paragraph (b) of this subsection (2.8) and transmitting the amount described in paragraph (a) of this subsection (2.8), the state treasurer shall transmit two million dollars from the principal and interest in the trust fund to the rural economic emergency assistance grant fund, created in section 24-32-3505, C.R.S., to implement the rural economic emergency assistance grant program, created in section 24-32-3503, C.R.S. (II) This paragraph (a.5) is repealed effective July 1, 2017. 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.