FirstHB1299_S_APP.001 RegularNOT SessionAMENDED Seventy-fourthSENATE GeneralCOMMITTEE Assembly STATE OF COLORADOREFERENCE ENGROSSEDREPORT This_______________________________ VersionMay Includes2, All2023 AmendmentsChair Adoptedof onCommittee SecondDate ReadingCommittee inon theAppropriations House. of Introduction LLS NO.

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SENATEHB23-1299 SPONSORSHIPbe Bridgesreferred andto Kirkmeyer,the ZenzingerCommittee Houseof Committeesthe SenateWhole Committeeswith Appropriationsfavorable Arecommendation BILLand FORwith ANa ACTrecommendation Cthat ONCERNINGit THEbe JUSTICEplaced REINVESTMENTon CRIMEthe PREVENTIONconsent INITIATIVEcalendar. , AND ,IN CONNECTION THEREWITH , MAKING AN APPROPRIATION .

Bill** Summary*** (Note:** *** **

This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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://leg.colorado.gov/.) Joint Budget Committee.

The justice reinvestment crime prevention initiative (initiative) is administered by the division of local government (division) in the department of local affairs (department) to d expand small business lending and provide grants aimed at reducing n crime and promoting communitydevelopment.

The initiative consists of e 2 E n 2 U U 9 Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

H i r Capital letters or bold & italic numbers indicate new material to be added to existing lawe A Dashes through the words or numbers indicate deletions from existing law.

R the targeted crime reduction grant program, which provides funding to eligible entities for programs, projects, or direct services aimed at reducing crime and promoting communitydevelopment in certain target communities,andastatewidebusinessandentrepreneurshiptrainingand grant program for justice-system-involved persons.

Currently, the targeted crime reduction grant program cash fund (fund)iscontinuouslyappropriatedtothedepartmentforthepurposes of these 2 grant programs.

The bill specifies that for state fiscal year 2023-24 and subsequent fiscal years, the department mayexpend money from the fund subject to annual appropriation and that the department mayuseanyremainingappropriatedmoneyduringtheyearfollowingthe year for which the general assembly appropriated the money.

Thebillspecifiesthatthestatewidebusinessandentrepreneurship training and grant program for justice-system-involved persons will be repealed on September 1, 2024.

The department mayexpend moneyfromthejusticereinvestment initiative expansion account (account) in the fund for the purposes of expanding the targeted crime reduction grant programto Grand Junction and Trinidad and to implement the grant program for justice-system-involvedpersons.Currently,thestatetreasurerisrequired to transfer any money remaining in the account to the general fund on July1,2023,andtheaccountwillberepealedonSeptember1,2023.The bill changes the repeal date of the account to September 1, 2024, and requiresthestatetreasurertotransferanymoneyremainingintheaccount to the fund on July 1, 2024.

The bill specifies that the department may expend the transferred money for the targeted crime reduction grant program and the grant program for justice-system-involved persons.

Finally, the bill clarifies that the initiative is repealed, effective September 1, 2027, and that the department of regulatory agencies will review the initiative for repeal, continuation, or reestablishment before the initiative is repealed.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.

In Colorado Revised Statutes, 24-32-120, amend (2)(i)(III), (2)(i)(III.3)(D), (2)(i)(III.5), and (3);

and add (2.5)(g) as follows:

24-32-120.

Justice reinvestment crime prevention initiative - program - rules - cash funds - reports - repeal.

(2) (i) (III)HROUGH STATE FISCAL YEAR 2022-23, money in the fund is continuously -2- 1299 appropriated to the department of local affairs for the grant program developed pursuant to this subsection (2) and subsection (2.5) of this section.

FR STATE FISCAL YEAR 2023-24 AND SUBJECT TO ANNUAL APPROPRIATION THE DEPARTMENT MAY EXPEND MONEYFROMTHE FUND FOR THE GRANT PROGRAM DEVELOPED PURSUANT TO SUBSECTIONS (2) AND (2.5OF THIS SECTION,AND THE DEPARTMENT MAY USE , FOR THE PURPOSES SPECIFIED IN THIS SUBSECTION (2)(i)(IIIANY MONEY APPROPRIATED OR TRANSFERRED TO THE FUND THAT REMAINS IN THE FUND AT THE END OF STATE FISCAL YEA2023-24DURING STATE FISCAL YEAR 2024-25.FORSTATEFISCALYEAR 2024-25ANDSUBSEQUENTFISCAL YEARSANDSUBJECT TOANNUALAPPROPRIATION ,THEDEPARTMENTMAY EXPEND MONEY FROM THE FUND FOR THE GRANT PROGRAM DEVELOPED PURSUANT TO SUBSECTION (2)OF THIS SECTIO, AND THE DEPARTMENT MAYUSE FORTHEPURPOSESPECIFIEDINTHISSUBSECTION (2)(i)(IIANY MONEY APPROPRIATED TO THE FUND THAT REMAINS IN THE FUND DURING THE FISCALYEARFOLLOWING THE FISCALYEARFORWHICHTHE GENERAL ASSEMBLY APPROPRIATED THE MONEY .

(III.3) There is hereby created a special account within the fund to be known as the justice reinvestment initiative expansion account.

On June30,2021,thestatetreasurershalltransferthreemillionfivehundred thousand dollars from the general fund to the account.

Money in the account is continuouslyappropriated to the department to be used bythe department as set forth in this subsection (2)(i)(III.3) and subsection (2)(i)(III.5) of this section.

The state treasurer shall credit all interest and income derived fromthedepositandinvestmentof moneyintheaccount to the account.

In state fiscal year 2021-22, the department may use one million seven hundred fifty thousand dollars in the account as follows:

-3- 1299 (D) This subsection (2)(i)(III.3) is repealed, effective September 1, 2023S EPTEMBER 1, 2024.

(III.5) (A) In state fiscal year 2022-23TATE FISCAL YEAR 2023-24,thedepartmentmayuseanyremainingmoneyintheaccountfor the same purposes and in the percentages set forth in subsection (2)(i)(III.3) of this section.

On July 1, 20231, 2024, the state treasurer shall transfer any unexpended and unencumbered money remaining in the account to the genfund.

(B) This subsection (2)(i)(III.5) is repealed, effective September 1, 2023S EPTEMBER 1, 2024.

(2.5) (g) THIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE S EPTEMBER 1, 2024.

(3) Subsections(2)and(2.5)ofthissectionandthissubsection(3) are THIS SECTION Irepealed, 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.

SECTION 2.

Appropriation.

For the 2023-24 state fiscal year, $3,000,000 is appropriated to the department of local affairs.

This appropriationisfromreappropriatedfundsinthetargetedcrimereduction grantprogramcashfundcreatedinsection24-32-120(2)(i)(I),C.R.S.To implement this act, the department of local affairs may use this appropriation for crime prevention initiative grants.