Section 846-C. Contracts with companies

1. The commissioner may enter into
  contracts, either on his  own  initiative,  or  upon  application  of  a
  company  or  the municipality having jurisdiction over such company, for
  the performance of company activities. Such contracts shall  be  entered
  into,  however,  only  after  appropriate  findings by the commissioner,
  subject to the limitations hereinafter set forth.
    2. Prior to entering into, renewing, extending or replacing a contract
  with a company, the commissioner shall have made  a  finding  that  said
  company  which proposes to contract with the commissioner is a bona fide
  organization which shall have been in existence for at  least  one  full
  year  within  a  three  year period immediately prior to application for
  funding.  Its  existence  shall  have  been  as  a  corporation  or   an
  unincorporated, organized group which has demonstrated by its activities
  that  it  has  the  ability  to  establish  and  maintain  tenant-lobby,
  street-foot patrols, or auto patrols or other approved activities in the
  proposed  neighborhood.  The  commissioner  shall  also  find  that  the
  activities proposed are needed by the neighborhood and that the proposed
  activities  utilize resident involvement to the fullest extent possible.
  A finding shall also be made as to the ability of the company to acquire
  or gain access to the requisite staff, office facilities, and  expertise
  to  enable  it  to perform the activities which it proposes to undertake
  pursuant to said contract.
    3. a. In determining whether to enter into, renew, extend or replace a
  contract with a company pursuant to this article, the commissioner shall
  investigate,  to  the  extent  deemed  necessary  or  appropriate,   and
  establish that:
    (i)  the  geographic  boundaries  proposed by the applicant for such a
  contract define a recognized or established neighborhood or area  within
  the municipality;
    (ii)  the activities proposed by the company are reasonably calculated
  to have a generally positive effect on the prevention of  crime  and  on
  the  reduction  of  the  fear  of  crime within the neighborhood and are
  designed to provide additional and particular focus  when  necessary  to
  address the needs of senior citizens with respect thereto;
    (iii)  the  presence  of  the  company within the neighborhood has not
  resulted in and will not result in a decrease in  the  crime  prevention
  activities performed by existing police agencies in such neighborhood;
    (iv)  the  company has coordinated and will continue to coordinate its
  activities with existing police agencies;
    (v) the  company's  officers,  directors  and  members  represent  the
  residents  and  the  legitimate  interests of the neighborhood, and they
  will carry out such a contract in a responsible manner;
    (vi) a majority of the directors of the company are residents  of  the
  neighborhood;
    (vii)  the plan submitted by the company demonstrates that the company
  will recruit and utilize neighborhood volunteers and will, to the extent
  possible, acquire loaned or donated equipment for the performance of its
  activities;
    (viii) the commissioner shall also find that the plan submitted by the
  company demonstrates that such company when hiring employees  will  give
  priority,  to  the extent possible, to residents of the neighborhood who
  are either unemployed or not fully employed.
    b. Nothing contained within the contract shall impose  liability  upon
  the division or the community for injury incurred during the performance
  of any approved activities.
    4. Contracts entered into hereunder with companies shall be limited in
  duration  to  periods  of  one  year,  but  may  thereafter  be renewed,
  extended, or succeeded by  new  contracts  from  year  to  year  in  the

  discretion of the commissioner for up to an aggregate of four additional
  years.  Contract  awards  shall be limited in amount to the sum of sixty
  thousand dollars in a single year. Each company shall also  define  with
  particularity  the  neighborhood  or  portion  thereof  within which the
  company's  activities  shall  be  performed  under  such  contract.  The
  contract  shall  also  set  forth  the  company's obligations to provide
  training in approved  crime  prevention  techniques,  and  in  community
  relations,  to  those  who shall perform crime prevention activities for
  the company.
    5. Every such contract shall provide that the company  shall  maintain
  books, records and accounts deemed appropriate and open to review by the
  commissioner  and  that  such  accounts shall be currently maintained in
  conformance with generally accepted accounting principles and practices.
    6. Nothing within this article  shall  preclude  a  municipality  from
  applying to or contracting with the commissioner on behalf of qualifying
  auxiliary police services.