(1) As used in this section, unless the context otherwise requires: (a) "Colorado agricultural products" means all fruits, vegetables, grains, meats, and dairy products grown or raised in Colorado and minimally processed products or value-added processed products that meet the standards for the Colorado proud designation established by the state department of agriculture. (b) (I) "Eligible entity" means either a food bank or food pantry. (II) "Eligible entity" includes a faith-based organization. (c) "Food bank" means a nonprofit charitable organization that is exempt from federal income taxation pursuant to the federal "Internal Revenue Code of 1986", as amended, whose primary purpose is to procure food from retailers, manufacturers, farmers and agricultural producers, individual donors, grocery stores, restaurants, and government channels and to store, transport, and distribute the procured food to other nonprofit charitable hunger relief organizations, including food pantries and hunger relief partner agencies in a defined geographic service area. (d) "Food pantry" means a nonprofit charitable organization that is exempt from federal income taxation pursuant to the federal "Internal Revenue Code of 1986", as amended, whose primary purpose is to distribute food at no cost directly to individuals in need in the food pantry's local community and that typically receives most or all of its food from a partner food bank, including nonprofit partner agencies such as soup kitchens and homeless shelters. (e) "Grant program" means the community assistance provider grant program created in subsection (2) of this section. (2) There is created in the state department the community food assistance provider grant program. The purpose of the grant program is to aid eligible entities in the procurement and distribution of nutritious foods that meet the needs of the eligible entity's clientele. (3) (a) The state department may contract with a third-party vendor to solicit, vet, award, and monitor grants. The selection of any vendor pursuant to this subsection (3)(a) is exempt from the requirements of the "Procurement Code", articles 101 to 112 of title 24. (b) The state department is authorized to use up to five percent of the total funds appropriated to the grant program for the direct and indirect costs of administering and monitoring the grant program. (4) (a) The state department or a third-party vendor shall award one or more grants to eligible entities as soon as practicable after July 1, 2024, using money appropriated to the grant program. In awarding grants, the state department shall, at a minimum, consider: (I) Providing money to a wide array of eligible entities of different types and sizes; (II) Ensuring that money goes directly to eligible entities that operate in a variety of regions throughout the state; (III) The ability of each eligible entity to responsibly distribute the grant money in a timely manner; (IV) The eligible entity's willingness to administer a client-needs survey as a vehicle for collecting input on the efficacy of its grant award; and (V) The ability of the eligible entity to solicit and accept feedback from the state department to inform implementation of the grant program in the future. (b) Grant awards, including those to joint applicants, must be at least two thousand five hundred dollars. (c) (I) To the extent practicable, food purchased by a grant recipient using grant money may be either: (A) A Colorado agricultural product; or (B) An agricultural product that holds cultural significance for Indigenous people, or for other cultures or subcultural groups, including the ways in which those agricultural products are produced. (II) A grant recipient may use up to ten percent of the grant award to cover the direct expenses associated with the distribution of food, including: (A) Transportation; (B) Food delivery; (C) Staff costs; (D) Refrigeration; and (E) Storage. (III) A grant recipient shall not resell or apply other associated fees to the distribution of products purchased with money made available through a grant. (5) Beginning in state fiscal year 2024-25, and each state fiscal year thereafter, the state department shall include as part of its "SMART Act" hearing required by section 2-7-203 a report that includes, at a minimum: (a) The total number of eligible entities that applied for grants pursuant to this section; (b) The total number of eligible entities that received a grant pursuant to this section; (c) The total amount of money awarded to each eligible entity that received a grant pursuant to this section; (d) The geographic locations of the eligible entities that received a grant pursuant to this section; and (e) The estimated amount of food purchased and distributed to clientele for each eligible entity that received a grant pursuant to this section. (6) This section is repealed, effective September 1, 2029.
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