(1) (a) The division of local government shall administer the justice reinvestment crime prevention initiative to expand small business lending and provide grants aimed at reducing crime and promoting community development in the target communities of north Aurora and southeast Colorado Springs. Effective September 1, 2021, the target communities must also include the Grand Junction and Trinidad areas, including unincorporated areas outside of city limits. (b) Subject to available appropriations, on and after August 10, 2017, the division shall develop and implement an initiative in accordance with policies developed by the executive director specifically designed to expand small business lending in the target communities described in this subsection (1). An initiative developed and implemented pursuant to subsection (1)(a) of this section shall include, but need not be limited to, the following components: (I) (A) On or before September 10, 2017, the division shall issue a request for participation and select one or more nondepository community development financial institution loan funds to participate in the small business lending program described in this subsection (1)(b)(I)(A); (B) On or before September 1, 2021, if the nondepository community development financial institution loan funds contracted pursuant to subsection (1)(b)(I)(A) of this section are not able to also effectively serve the Grand Junction and Trinidad areas, including unincorporated areas outside of the city limits, the division shall issue a request for participation to select one or more additional depository community development financial institution loan funds to serve the Grand Junction and Trinidad areas, including unincorporated areas outside of the city limits. (II) The division shall execute a contract and develop an operating agreement with each participating nondepository community development financial institution loan fund that provides comprehensive guidance regarding the procedures and program requirements and lending standards to include, but not be limited to, the following specifics: (A) Any small business loan must be made at a fixed and reasonable interest rate, for a term not to exceed sixty months, with no prepayment penalty, and a maximum loan value of fifty thousand dollars; (B) The procedures and timelines for a nondepository community development financial institution loan fund to draw down funding and any deposit account requirements; (C) The terms and timeline for repayment by the nondepository community development financial institution loan fund to the division, including a reasonable grace period prior to commencement of repayment, and authority for the community development financial institution loan funds to retain interest paid by the borrower; (D) Permission for the nondepository community development financial institution loan fund to request funding, subject to limitations established by the director, to provide or contract for services to increase the skills of prospective borrowers including, but not limited to, business and financial education, mentorship, or community outreach for marketing purposes; and (E) Data collection requirements and performance and outcome metrics that include, but are not limited to, the number of loans made and capital disbursed and loan details including amount, rate and term, nature of business and number of jobs created, repayment collected, and delinquency or aging report; and (III) The division may retain up to fifteen percent of funding received for small business lending in a loan loss reserve fund if it believes that such reserve fund would incentivize additional lenders to expand small business lending in the two target communities. (IV) Repealed. (c) (I) The justice reinvestment crime prevention cash fund, referred to in this subsection (1)(c) as the "fund", is hereby created in the state treasury. The fund consists of money that the general assembly may appropriate or transfer to the fund. (II) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. (III) Money in the fund is continuously appropriated to the department of local affairs for the initiative developed pursuant to this subsection (1). (IV) Repealed. (2) (a) Subject to available appropriations, on and after August 10, 2017, the division shall develop and implement a grant program to provide funding to eligible entities for programs, projects, or direct services aimed at reducing crime in the target communities described in subsection (1) of this section. The division shall administer the grant program in accordance with policies developed by the executive director that include, but are not limited to, the specifics in subsection (2)(b) of this section. (b) (I) On or before September 10, 2017, the executive director shall issue a request for participation and select a community foundation or foundations to manage the grant program. To be eligible, the community foundation must be registered in the state of Colorado and have a history of grant-making in the target community in areas consistent with the permissible uses of funding described in subsection (2)(e) of this section. The division may select one community foundation to serve both target communities or may select one community foundation for each target community. (II) On or before September 1, 2021, if the community foundations contracted pursuant to subsection (2)(b)(I) of this section are not able to also effectively serve the Grand Junction and Trinidad areas, including unincorporated areas outside of the city limits, the division shall issue a request for participation and select one or more community foundations or third-party grant administrators as defined in section 25-20.5-801 (3)(a) to manage the grant program or programs for the Grand Junction and Trinidad areas, including unincorporated areas outside of the city limits. (c) The division shall execute a written agreement with each selected community foundation or third-party grant administrator that outlines its roles and responsibilities, which must include: (I) Developing a nomination process and governance policy for the local crime prevention planning team. The community foundation or third-party grant administrator shall ensure that the proposed local planning team members represent a diverse cross-section with expertise in areas like education, business, youth, families, nonprofit direct service, law enforcement, local government, community, and residents of the target communities, including those that have been directly impacted by crime and involvement in the criminal justice system. (II) Providing facilitation to the local crime prevention planning team in the target communities; (III) Developing the grant guidelines, application and review process, data collection, and reporting requirements for grantees; (IV) Reviewing proposals submitted by the local planning team and making grant awards subject to approval by the division and the office of state planning and budgeting and consistent with the permissible uses described in subsection (2)(e) of this section; (V) If the agreement is with a community foundation, contracting with a third-party evaluator to assist each local planning team to establish best practices with regard to data collection and identifying appropriate performance and outcome measures that measure outcome and impact of any funded crime prevention projects, programs, or initiatives; (VI) Collaborating with the office of state planning and budgeting to provide information and research to local planning teams regarding best practices and effective programs for community development and crime prevention; and (VII) If the written agreement is with a third-party administrator, performing data collection, identifying appropriate performance and outcome measures, providing technical assistance, and assisting with grantee capacity building. (d) The division shall develop the procedures and timelines by which each selected community foundation or third-party grant administrator will be provided funding from the division for disbursement for the grant program. (e) The permissible uses of any funding provided to each community foundation or third-party grant administrator shall include programs, projects, or initiatives that are aimed at: (I) Improving academic achievement including, but not limited to, school readiness, reducing expulsions and suspensions in schools, increasing high school graduation, college enrollment and retention rates, and promoting school-parent-student engagement; (II) Providing community-based services to strengthen families, promote recovery from trauma, provide support to crime survivors, increase employment, and reduce recidivism, or other similar community direct service needs identified by the local planning team; (III) Facilitating neighborhood connections, community engagement, and local leadership development; (IV) Increasing the safety and usability of common outdoor spaces; and (V) Developing technical assistance related to data collection, data analysis, and evaluation. (f) (I) The division shall transfer to the community foundation or third-party grant administrator within thirty days after execution of the agreement described in subsection (2)(c) of this section the administrative costs of the community foundation or third-party grant administrator related to the performance of the roles and responsibilities for managing the grant program. (II) If the costs described in subsection (2)(f)(I) of this section pertain to a community foundation, the costs may not exceed eight percent of the appropriation. (III) If the costs described in subsection (2)(f)(I) of this section pertain to a third-party grant administrator, the costs may not exceed fifteen percent of the appropriation to cover both the grant program management responsibilities and the additional responsibilities described in subsection (2)(c)(VII) of this section. (g) To be eligible to receive grant funding an entity must be a nonprofit organization in good standing and registered with the internal revenue service and the Colorado secretary of state's office, a school, a unit of local government, or a private contractor hired to provide technical assistance to the local planning teams. (h) Repealed. (i) (I) The targeted crime reduction grant program cash fund, referred to in this subsection (2) as the "fund", is hereby created in the state treasury. The fund consists of money that the general assembly may appropriate or transfer to the fund. (II) The state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the fund. (III) Through state fiscal year 2022-23, money in the fund is continuously appropriated to the department of local affairs for the grant program developed pursuant to this subsection (2) and subsection (2.5) of this section. For state fiscal year 2023-24 and subject to annual appropriation, the department may expend money from the fund for the grant program developed pursuant to subsections (2) and (2.5) of this section, and the department may use, for the purposes specified in this subsection (2)(i)(III), any money appropriated or transferred to the fund that remains in the fund at the end of state fiscal year 2023-24 during state fiscal year 2024- 25. For state fiscal year 2024-25 and subsequent fiscal years and subject to annual appropriation, the department may expend money from the fund for the grant program developed pursuant to subsection (2) of this section, and the department may use, for the purpose specified in this subsection (2)(i)(III), any money appropriated to the fund that remains in the fund during the fiscal year following the fiscal year for which the general assembly appropriated the money. (III.3) and (III.5) Repealed. (IV) The state treasurer shall transfer to the general fund all unexpended and unencumbered money in the fund on September 1, 2027. (V) Repealed. (2.5) Repealed. (3) This section is repealed, effective September 1, 2027. Before such repeal, the department of regulatory agencies shall review the justice reinvestment crime prevention initiative pursuant to section 24-34-104. (4) On and after December 1, 2017, during its annual presentation before the joint judiciary committee of the general assembly, or any successor joint committee, pursuant to section 2-7-203 , the division shall include a status report regarding the progress and outcomes of the initiatives developed and implemented by the division pursuant to this section during the preceding year. (5) Repealed.
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