(1) Definitions. As used in this section, unless the context otherwise requires:
"COVID-19" means the coronavirus disease caused by the severe acute respiratorysyndrome coronavirus 2, also known as SARS-CoV-2.
"Division" means the division of local government in the department of local affairs.
"Eligible council of governments" means a council of governments that includes atleast one eligible county or, if applicable, at least one eligible municipality.
"Eligible county" means a county or city and county that is:
(I) As of December 31, 2020, under severe capacity restrictions, as determined through a statewide or local public health order that has been in effect since December 10, 2020, or earlier and that includes the following restrictions:
The closure of restaurants for in-person, indoor dining;
The closure of bars and the prohibition of indoor events; and
A limit of the lesser of ten percent capacity or ten people per room or pool for gyms,recreation centers, and indoor pools; and
(II) In good-faith compliance with the executive orders pertaining to the public health emergency due to COVID-19 and all applicable statewide and local public health orders that establish severe capacity restrictions, as determined by the division in consultation with the department of public health and environment and as demonstrated by:
The county's good-faith efforts to enforce or promote compliance with applicableexecutive and public health orders within the scope of its authority and in consideration of available resources, including engaging law enforcement to enforce executive and public health order violations; and
The county not adopting a public health order or enforcement policy that is lessrestrictive than a statewide public health order adopted by the department of public health and environment, unless the county has obtained a variance or other exemption from the department of public health and environment.
"Eligible economic development district" means an economic development districtdesignated by the United States economic development administration that includes at least one eligible county or, if applicable, at least one eligible municipality.
"Eligible industry category" means a:
Restaurant, including any liquor licensed establishment holding a hotel and restaurantlicense pursuant to section 44-3-413;
Bar, including a liquor licensed establishment holding one or more of the followinglicenses:
A limited winery license under section 44-3-403;
A beer and wine license under section 44-3-411;
A hotel and restaurant license under section 44-3-413;
A tavern license under section 44-3-414;
An optional premises license under section 44-3-415;
A retail gaming tavern license under section 44-3-416;
A brew pub license under section 44-3-417;
A club license under section 44-3-418;
An arts license under section 44-3-419;
A racetrack license under section 44-3-420;
A vintner's restaurant license under section 44-3-422;
A distillery pub license under section 44-3-426;
A lodging and entertainment license under section 44-3-428;
A fermented malt beverage license under section 44-4-107 (1)(b); or
A fermented malt beverage license under section 44-4-107 (1)(c);
Brewery, licensed pursuant to section 44-3-407 (1)(b)(I) and that operates an attached sales room pursuant to section 44-3-407 (1)(b);
Winery, licensed pursuant to section 44-3-402 (1) or 44-3-403 and that operates anattached sales room pursuant to section 44-3-402 (2) or 44-3-403 (2)(e);
Distillery, licensed pursuant to section 44-3-402 (1) and that operates an attachedsales room pursuant to section 44-3-402 (7);
Caterer;
Movie theater; or
Fitness and recreational sports center.
"Eligible local government" means an eligible county, eligible council of governments, or eligible economic development district; except that, if a county is determined by the division to be ineligible based on the county's failure to meet the criteria specified in subsection (1)(d) of this section or if a county is unable to administer the relief program, eligible municipalities within the county, either acting separately or as a group, constitute an eligible local government and may participate in the relief program.
"Eligible municipality" means a municipality that is:
(I) As of December 31, 2020, under severe capacity restrictions, as determined through a statewide or local public health order that has been in effect since December 10, 2020, or earlier and that includes the following restrictions:
The closure of restaurants for in-person, indoor dining;
The closure of bars and the prohibition of indoor events; and
A limit of the lesser of ten percent capacity or ten people per room or pool for gyms,recreation centers, and indoor pools; and
(II) In good-faith compliance with the executive orders pertaining to the public health emergency due to COVID-19 and all applicable statewide and local public health orders that establish severe capacity restrictions, as determined by the division in consultation with the department of public health and environment and as demonstrated by:
The municipality's good-faith efforts to enforce or promote compliance with applicable executive and public health orders within the scope of its authority and in consideration of available resources, including engaging law enforcement to enforce executive and public health order violations; and
The municipality not adopting a public health order or enforcement policy that isless restrictive than a statewide public health order adopted by the department of public health and environment, unless the municipality has obtained a variance or other exemption from the department of public health and environment.
"Eligible small business" means a small business that:
Is located in an eligible county or, if applicable, an eligible municipality, as of thetime of application for relief;
Is currently operating in the state, as evidenced by:
Verification of the small business's Colorado income tax account number or, for asmall business that is exempt from filing a Colorado income tax return, the Colorado tax exempt certificate number; and
The small business's receipt from its most recent payment of unemployment insurance payroll taxes;
Is engaged in an eligible industry category, as verified by its North American industry classification system (NAICS) code;
Demonstrates its intent to continue operating in the state for at least six months;
Provides evidence of at least twenty percent revenue loss since March 26, 2020, dueto the restrictions imposed on the business under the governor's executive order D 2020 017, ordering Coloradans to stay at home, and the department of public health and environment's amended public health order 20-24 implementing stay-at-home requirements; except that this subsection (1)(i)(V) does not apply to a small business that began operating on or after January
1, 2020, and on or before March 26, 2020;
Has a valid business license and is in good standing with the agency that issued thebusiness license; and
Certifies to the eligible local government to which the small business applies for arelief payment under the relief program that the small business:
Has not applied for nor received any other relief payments from the arts relief program created in section 24-48.5-316, enacted by Senate Bill 20B-001, enacted in the first extraordinary session of the seventy-second general assembly; and
Is in compliance with the executive orders pertaining to the public health emergencydue to COVID-19 and all applicable statewide and local public health orders, including capacity restrictions.
"Small business" means a corporation, limited liability company, partnership, soleproprietorship, or other business entity that:
Has its headquarters located in and is doing business in Colorado;
Has at least one full-time employee; except that the requirement to have one employee does not apply to a small business that is a sole proprietorship; and
(A) For a small business that was operating before January 1, 2020, had annualreceipts of less than two million five hundred thousand dollars for the 2019 calendar year; and
(B) For a small business that began operating on or after January 1, 2020, and on or before March 26, 2020, had annual receipts of less than two million five hundred thousand dollars in the 2020 calendar year.
"Small business relief program" or "relief program" means the small business reliefprogram created in subsection (2) of this section.
(2) Small business relief program. (a) (I) (A) There is created in the division the small business relief program to allocate money to eligible local governments to provide relief payments to eligible small businesses operating within the geographical boundaries of those eligible local governments. The division shall develop a process for eligible local governments to apply for an allocation of available money to provide relief payments to eligible small businesses operating within their boundaries.
(B) An eligible local government that chooses to apply to participate in the relief program must submit an application to the division by January 8, 2021, and by January 15, 2021,the division shall allocate the money appropriated pursuant to subsection (3) of this section to eligible local governments. Except as provided in subsections (2)(a)(II) and (2)(a)(III) of this section, the division shall allocate money to eligible local governments based on the population of the eligible local governments, as determined pursuant to the most recently published population estimates from the state demographer appointed by the executive director of the department of local affairs.
For purposes of the allocation to an eligible local government that is an eligiblemunicipality, the division shall allocate the money to the eligible municipality based on the proportion of the population of the county in which the eligible municipality is located that is attributable to the eligible municipality.
The division shall set aside ten percent of the total amount appropriated pursuant tosubsection (3) of this section to distribute additional amounts to eligible counties that: (A) Demonstrate high needs, as determined by the division; and (B) Have a population of not more than one hundred thousand people.
(b) (I) The division may allocate up to the amount appropriated to the division pursuant to subsection (3) of this section to eligible local governments in the state under the relief program; except that the division may use up to five percent of the appropriated amount for the division's and eligible local governments' administrative costs in operating and administering the relief program.
(II) Eligible small businesses may receive relief payments as follows, reduced as necessary by the eligible local government to avoid exceeding the total amount allocated to the eligible local government pursuant to subsection (2)(a) of this section:
For an eligible small business that had less than five hundred thousand dollars inreceipts in the 2019 calendar year, a relief payment of up to three thousand five hundred dollars;
For an eligible small business that had five hundred thousand dollars or more but notmore than one million dollars in receipts in the 2019 calendar year, a relief payment of up to five thousand dollars; and
For an eligible small business that had one million dollars or more but not more thantwo million five hundred thousand dollars in receipts in the 2019 calendar year, a relief payment of up to seven thousand dollars.
(c) (I) Each eligible local government shall establish a process for small businesses to apply for and demonstrate eligibility for relief payments and the amount for which a small business is eligible under the relief program. An eligible local government may use any new or existing processes available in the local government, including processes available through intergovernmental agreements with other eligible local governments or political subdivisions and contracts with public or private entities, to enable the eligible local government to:
Provide the relief payments to eligible small businesses in the least costly and mostexpeditious and efficient manner; and
Encourage and facilitate the equitable distribution of relief payments to eligible small businesses within the municipalities and political subdivisions located within the geographical boundaries of the eligible local government.
(II) Each eligible local government that receives an allocation from the division pursuant to the relief program shall:
Allow small businesses located within the geographical boundaries of the eligiblelocal government a specified period of not less than twenty-one days during which to apply for relief payments;
Not distribute relief payments based on the order in which applications are submittedor received; and
Collect sufficient information from small business applicants to enable the eligiblelocal government to issue an internal revenue service form 1099 to an eligible small business that receives a relief payment pursuant to this section.
Eligible local governments that apply to participate in the relief program must communicate information about the relief program in a manner that informs small businesses located within the geographical boundaries of the eligible local government about the relief program and how and when to apply for relief payments.
Eligible local governments shall determine the relief payment amount for each eligible small business within the geographical boundaries of the eligible local government based on the payment amounts specified in subsection (2)(b)(II) of this section, reduced as necessary based on the total amount allocated to the eligible local government pursuant to subsection (2)(a) of this section, and shall make the distribution of relief payments as soon as practicable after receiving the money from the division, but no later than February 12, 2021. An eligible local government shall provide an internal revenue service form 1099 to each eligible small business to which it distributes a relief payment pursuant to this section.
If, after distributing relief payments to all eligible small businesses in the eligiblelocal government, the eligible local government has money remaining from its allocation from the division, the eligible local government may accept applications from and distribute the remaining money to other businesses in the eligible local government that meet all the requirements specified in subsections (1)(i) and (1)(j) of this section except subsection (1)(j)(III) of this section. The eligible local government shall not distribute more than seven thousand dollars to any business that is eligible for a relief payment pursuant to this subsection (2)(c)(V).
If an eligible municipality receives an allocation from the division pursuant to thissection and, after distributing relief payments to all eligible small businesses located within the geographical boundaries of the eligible municipality, has money remaining from its allocation from the division, the eligible municipality may accept applications from and distribute relief payments to eligible small businesses located:
In an unincorporated area of the county in which the eligible municipality is located;and
Within a one-mile radius of the geographical boundaries of the eligible municipality.
(d) The division may develop policies and procedures necessary for the operation of the relief program, including:
The application and information submittal process; and
A requirement that each eligible local government that receives an allocation providea report to the division describing how the money was distributed to eligible small businesses and how much of the allocation the eligible local government used for administrative costs, detailing how the money for administrative costs was spent.
(e) Notwithstanding any provision of law to the contrary, an eligible small business that receives a relief payment pursuant to the relief program:
Is not eligible for any other relief payments from the arts relief program created insection 24-48.5-316, enacted by Senate Bill 20B-001, enacted in the first extraordinary session of the seventy-second general assembly; and
Is required to return any relief payment received pursuant to the relief program if theeligible small business is found to be out of compliance with any eligibility criteria specified in subsection (1)(i) of this section.
Funding. For the 2020-21 state fiscal year, the general assembly shall appropriate thirty-seven million dollars from the general fund to the department of local affairs for use by the division in accordance with this section.
Report. (a) As part of its report pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" before the 2022 legislative session, the division shall submit a report to the local government committee of the senate or its successor committee and the transportation and local government committee of the house of representatives or its successor committee, detailing how relief program money was allocated, including:
The list of eligible local governments that received an allocation under the program;
The amount each eligible local government received, detailing how much of eachallocation to each eligible local government was:
Distributed by the eligible local government to eligible small businesses; and
Spent by the eligible local government for administrative costs, specifying the purposes for which the money was spent;
Information about the eligible small businesses that received relief payments andthe amount of the payments; and
Any other information deemed pertinent by the division.
(b) The division shall also submit the report to the governor.
(5) Repeal. This section is repealed, effective December 31, 2022.
Source: L. 2020, 1st Ex. Sess.: Entire section added, (SB 20B-001), ch. 2, p. 5, § 2, effective December 7.
Cross references: For the legislative declaration in SB 20B-001, see section 1 of chapter 2, Session Laws of Colorado 2020, First Extraordinary Session.