HF 2235

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:49pm

A bill for an act
relating to economic development; modifying the required wage levels for projects
funded by the Minnesota investment fund and the Minnesota job creation fund;
amending Minnesota Statutes 2018, sections 116J.8731, subdivision 5; 116J.8748,
subdivision 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 116J.8731, subdivision 5, is amended to read:

Subd. 5.

Grant limits.

A Minnesota investment fund grant may not be approved for an
amount in excess of $1,000,000. This limit covers all money paid to complete the same
project, whether paid to one or more grant recipients and whether paid in one or more fiscal
years. A local community or recognized Indian tribal government may retain 40 percent,
but not more than $100,000, of a Minnesota investment fund grant when it is repaid to the
local community or recognized Indian tribal government by the person or entity to which
it was loaned by the local community or Indian tribal government. Money repaid to the state
must be credited to a Minnesota investment revolving loan account in the state treasury.
Funds in the account are appropriated to the commissioner and must be used in the same
manner as are funds appropriated to the Minnesota investment fund. Funds repaid to the
state through existing Minnesota investment fund agreements must be credited to the
Minnesota investment revolving loan account effective July 1, 2005. A grant or loan may
not be made to a person or entity for the operation or expansion of a casino or a store which
is used solely or principally for retail sales. Persons or entities receiving grants or loans
must pay each employee total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least deleted text begin 110 deleted text end new text begin 125 new text end percent of the federal poverty level for
a family of four.

Sec. 2.

Minnesota Statutes 2018, section 116J.8748, subdivision 4, is amended to read:

Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
outside the metropolitan area may be for up to seven years in length. The eligibility for the
following benefits begins the date the commissioner certifies the business as a qualified
Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and 200 new
employees in the metropolitan area as defined in section 200.02, subdivision 24, and 75
new employees for projects located outside the metropolitan area;

(4) up to $1,000,000 in capital investment rebates are allowable for projects that have
at least $25,000,000 in capital investment and 200 retained employees for projects located
in the metropolitan area as defined in section 200.02, subdivision 24, and 75 employees for
projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4).

(d) No rebates or award may be provided until the Minnesota job creation fund business
or a third party constructing or managing the project has at least $500,000 in capital
investment in the project and at least ten full-time jobs have been created and maintained
for at least one year or the retained employees, as provided in paragraph (b), clause (4),
remain for at least one year. The agreement may require additional performance outcomes
that need to be achieved before rebates and awards are provided. If fewer retained jobs are
maintained, but still above the minimum under this subdivision, the capital investment
award shall be reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time employee added
pursuant to the agreement total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least deleted text begin 110 deleted text end new text begin 125 new text end percent of the federal poverty level for
a family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.