HF 2978

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/17/2022 03:58pm

A bill for an act
relating to economic development; appropriating money to the small business
partnership grant program; amending Laws 2021, First Special Session chapter
10, article 1, section 2, subdivision 2.

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

Section 1.

Laws 2021, First Special Session chapter 10, article 1, section 2, subdivision
2, is amended to read:

Subd. 2. Business and Community Development

208,015,000

44,741,000

Appropriations by Fund
General	205,215,000	41,941,000
Remediation	700,000	700,000
Workforce Development	2,100,000	2,100,000

(a) $1,787,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until June 30, 2025.

(b) $8,425,000 in the first year and deleted text begin $1,425,000 deleted text end new text begin
$10,000,000 new text end in the second year are for the new text begin
small business partnership grant program,
formerly known as the new text end business development
competitive grant program. Of this amount,
up to five percent is for administration and
monitoring of the deleted text begin business development
competitive grant deleted text end program and $7,000,000 in
the first year deleted text begin is deleted text end new text begin and $8,575,000 in the second
year are new text end for technical assistance to small
businesses. new text begin Funding for technical assistance
to small businesses in the second year shall
be divided proportionately between program
grantees from the first year. new text end Except for awards
for technical assistance for small businesses,
all grant awards shall be for two consecutive
years deleted text begin . Grants deleted text end new text begin and new text end shall be awarded in the first
year. new text begin The small business partnership grant
program shall also provide business
development assistance and services to
commercial cooperatives, employee-owned
businesses, and commercial land trusts.
new text end

(c) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.

(d) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.

(e) $139,000 each year is for the Center for
Rural Policy and Development.

(f) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

(g) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.

(h)(1) $2,500,000 each year is for grants to
local communities to increase the number of
quality child care providers to support
economic development. This appropriation is
available through June 30, 2023. Fifty percent
of grant funds must go to communities located
outside the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2. In fiscal year 2024
and beyond, the base amount is $1,500,000.

(2) Grant recipients must obtain a 50 percent
nonstate match to grant funds in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
funds available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.

(3) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of cash and in-kind local funds
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.

(i) $1,500,000 each year is for a grant to the
Minnesota Initiative Foundations. This
appropriation is available until June 30, 2025.
In fiscal year 2024 and beyond, the base
amount is $1,000,000. The Minnesota
Initiative Foundations must use grant funds
under this section to:

(1) facilitate planning processes for rural
communities resulting in a community solution
action plan that guides decision making to
sustain and increase the supply of quality child
care in the region to support economic
development;

(2) engage the private sector to invest local
resources to support the community solution
action plan and ensure quality child care is a
vital component of additional regional
economic development planning processes;

(3) provide locally based training and technical
assistance to rural child care business owners
individually or through a learning cohort.
Access to financial and business development
assistance must prepare child care businesses
for quality engagement and improvement by
stabilizing operations, leveraging funding from
other sources, and fostering business acumen
that allows child care businesses to plan for
and afford the cost of providing quality child
care; and

(4) recruit child care programs to participate
in quality rating and improvement
measurement programs. The Minnesota
Initiative Foundations must work with local
partners to provide low-cost training,
professional development opportunities, and
continuing education curricula. The Minnesota
Initiative Foundations must fund, through local
partners, an enhanced level of coaching to
rural child care providers to obtain a quality
rating through measurement programs.

(j) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended.

(k) $10,029,000 the first year and $10,028,000
the second year are for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administration and monitoring of the program.
In fiscal year 2024 and beyond, the base
amount is $12,370,000. This appropriation is
available until expended. Notwithstanding
Minnesota Statutes, section 116J.8731, money
appropriated to the commissioner for the
Minnesota investment fund may be used for
the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner. Grants
under this paragraph are not subject to the
grant amount limitation under Minnesota
Statutes, section 116J.8731.

(l) $0 each year is for the redevelopment
program under Minnesota Statutes, sections
116J.575 and 116J.5761. In fiscal year 2024
and beyond, the base amount is $2,246,000.

(m) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.

(n) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(o) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(p) $500,000 each year is for a grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2025.

(q) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.

(r) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.

(s) $2,500,000 each year is for Launch
Minnesota. This appropriation is available
until June 30, 2025. The base in fiscal year
2026 is $0. Of this amount:

(1) $1,500,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs;

(2) $500,000 each year is for administration
of Launch Minnesota; and

(3) $500,000 each year is for grantee activities
at Launch Minnesota.

(t) $1,148,000 the first year is for a grant to
the Northeast Entrepreneur Fund, a small
business administration microlender and
community development financial institution
operating in northern Minnesota. Grant funds
must be used as capital for accessing
additional federal lending for small businesses
impacted by COVID-19 and must be returned
to the commissioner for deposit in the general
fund if the Northeast Entrepreneur Fund fails
to secure such federal funds before January 1,
2022.

(u) $80,000,000 the first year is for the Main
Street Economic Revitalization Loan Program.
Of this amount, up to $300,000 is for the
commissioner's administration and monitoring
of the program. This appropriation is available
until June 30, 2025.

(v) $70,000,000 the first year is for the Main
Street COVID-19 Relief Grant Program. Of
this amount, up to:

(1) $34,950,000 is for grants to the Minnesota
Initiative Foundations to serve businesses
outside of the metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2;

(2) $34,950,000 is for grants to partner
organizations to serve businesses inside the
metropolitan area as defined in Minnesota
Statutes, section 473.121, subdivision 2; and

(3) $100,000 is for the commissioner's
administration and monitoring of the program.

(w) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.

(x) $500,000 each year is for the airport
infrastructure renewal (AIR) grant program
under Minnesota Statutes, section 116J.439.
In awarding grants with this appropriation, the
commissioner must prioritize eligible
applicants that did not receive a grant pursuant
to the appropriation in Laws 2019, First
Special Session chapter 7, article 1, section 2,
subdivision 2, paragraph (q).

(y) $750,000 each year is from the workforce
development fund for grants to the
Neighborhood Development Center for small
business programs, including:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(z) $5,000,000 in the first year is for a grant
to Lake of the Woods County for the
forgivable loan program for remote
recreational businesses. This appropriation is
available until April 1, 2022.