Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 965

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to economic development; modifying the 
  1.3             Minnesota investment fund; amending Minnesota Statutes 
  1.4             2000, section 116J.8731, subdivisions 4, 5, and 7. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2000, section 116J.8731, 
  1.7   subdivision 4, is amended to read: 
  1.8      Subd. 4.  [ELIGIBLE PROJECTS.] Assistance must be evaluated 
  1.9   on the existence of the following conditions: 
  1.10     (1) creation of new jobs or retention of existing jobs, 
  1.11  including enrichment or enhancement of existing jobs; 
  1.12     (2) increase in the tax base; 
  1.13     (3) the project can demonstrate that investment of public 
  1.14  dollars induces private funds; 
  1.15     (4) the project can demonstrate an excessive public 
  1.16  infrastructure or improvement cost beyond the means of the 
  1.17  affected community and private participants in the project; 
  1.18     (5) the project provides higher wage levels to the 
  1.19  community or will add value to current workforce skills; 
  1.20     (6) whether assistance is necessary to retain existing 
  1.21  business; and 
  1.22     (7) whether assistance is necessary to attract out-of-state 
  1.23  business.  
  1.24     A grant or loan cannot be made based solely on a finding 
  1.25  that the conditions in clause (6) or (7) exist.  A finding must 
  2.1   be made that a condition in clause (1), (2), (3), (4), or (5) 
  2.2   also exists. 
  2.3      Applications recommended for funding shall be submitted to 
  2.4   the commissioner. 
  2.5      Sec. 2.  Minnesota Statutes 2000, section 116J.8731, 
  2.6   subdivision 5, is amended to read: 
  2.7      Subd. 5.  [GRANT LIMITS.] A Minnesota investment fund grant 
  2.8   may not be approved for an amount in excess of $500,000.  This 
  2.9   limit covers all money paid to complete the same project, 
  2.10  whether paid to one or more grant recipients and whether paid in 
  2.11  one or more fiscal years.  The portion of a Minnesota investment 
  2.12  fund grant that exceeds $100,000 must be repaid to the state 
  2.13  when it is repaid to the local community or recognized Indian 
  2.14  tribal government by the person or entity to which it was loaned 
  2.15  by the local community or Indian tribal government.  Money 
  2.16  repaid to the state must be credited to the general fund a 
  2.17  Minnesota investment revolving loan account.  Funds in the 
  2.18  account must be used in the same manner as are funds 
  2.19  appropriated to the Minnesota investment fund.  Funds repaid to 
  2.20  the state through existing Minnesota investment fund agreements 
  2.21  must be credited to the Minnesota investment revolving loan 
  2.22  account effective July 1, 2001.  A grant or loan may not be made 
  2.23  to a person or entity for the operation or expansion of a casino 
  2.24  or a store which is used solely or principally for retail sales.
  2.25  Persons or entities receiving grants or loans must pay each 
  2.26  employee total compensation, including benefits not mandated by 
  2.27  law, that on an annualized basis is equal to at least 110 
  2.28  percent of the federal poverty level for a family of four. 
  2.29     Sec. 3.  Minnesota Statutes 2000, section 116J.8731, 
  2.30  subdivision 7, is amended to read: 
  2.31     Subd. 7.  [CONTRACTUAL OBLIGATION.] A business receiving 
  2.32  Minnesota investment fund grants must demonstrate why the grant 
  2.33  is necessary for a project and enter into an agreement with the 
  2.34  local grantor.  The agreement, among other things, must obligate 
  2.35  the recipient to pay the minimum compensation set by this 
  2.36  section and meet job creation goals.  A recipient that breaches 
  3.1   the agreement must repay the grant directly to the 
  3.2   commissioner.  Repayments under this subdivision must be 
  3.3   deposited in the general fund Minnesota investment revolving 
  3.4   loan account. 
  3.5      Sec. 4.  [EFFECTIVE DATE.] 
  3.6      Sections 1 to 3 are effective July 1, 2001.