HF 2995

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/20/2023 02:12pm

A bill for an act
relating to business financing; establishing a nonprofit corporation to provide
financing and leverage private investment in the energy, agriculture, building, and
transportation sectors to support commercialization of products and services with
clean energy solutions; requiring a report; appropriating money.

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

Section 1.

new text begin NEW MINNESOTA FUND.
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new text begin Subdivision 1. new text end

new text begin Establishment; purpose. new text end

new text begin (a) The New Minnesota Fund is established.
The board of directors appointed under subdivision 4 shall register with the secretary of
state as a nonprofit corporation under Minnesota Statutes, chapter 317A, and seek designation
as a charitable tax-exempt organization under section 501(c)(3) of the Internal Revenue
Code of 1986, as amended.
new text end

new text begin (b) The purpose of the New Minnesota Fund is to accelerate the growth of energy,
agriculture, building, and transportation sector businesses to support clean energy solutions.
The fund shall leverage other public and private sources of capital through the strategic
deployment of equity, loans, and other financing mechanisms to support the
commercialization of products and services and create an ecosystem of sustainable businesses
throughout Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The New Minnesota Fund shall:
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new text begin (1) strategically leverage other public and private investment in qualified businesses,
achieving a high ratio of private to public funds invested through funding mechanisms that
support, enhance, and complement private investment;
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new text begin (2) coordinate with existing programs to ensure that financing terms and conditions
offered are well suited to qualified businesses and ensure that the fund's activities add to
and complement the efforts of these partners;
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new text begin (3) provide technical assistance;
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new text begin (4) serve as a clearinghouse for information about federal, state, and local financial
assistance for qualifying projects;
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new text begin (5) develop a workplan to accomplish all the activities required of the fund and update
the workplan on an annual basis; and
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new text begin (6) establish and maintain a comprehensive website providing access to the fund's
programs and financial products.
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new text begin Subd. 3. new text end

new text begin Additional authorized activities. new text end

new text begin The New Minnesota Fund is authorized to:
new text end

new text begin (1) engage in any activities of a Minnesota nonprofit corporation; and
new text end

new text begin (2) develop and employ the following financing methods to support qualified projects:
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new text begin (i) credit enhancements through debt, equity, and additional mechanisms with other
financing sources; and
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new text begin (ii) serve as an aggregator of geographically dispersed qualified projects.
new text end

new text begin Subd. 4. new text end

new text begin Board members. new text end

new text begin (a) The board of directors of the New Minnesota Fund is
comprised of:
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new text begin (1) one member appointed by the governor;
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new text begin (2) one member appointed by the speaker of the house of representatives;
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new text begin (3) one member appointed by the senate majority leader;
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new text begin (4) one member appointed by a participating foundation;
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new text begin (5) one member appointed by a participating corporation; and
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new text begin (6) one member appointed by a participating pension program.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin Annually by January 15 until the appropriation for this purpose is
expended, the New Minnesota Fund must submit a comprehensive annual report on the
fund's activities to the governor and to the chairs and ranking minority members of the
legislative committees with primary jurisdiction over economic development and energy.
The report must contain, at a minimum, information on:
new text end

new text begin (1) the amount of capital invested, by project type;
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new text begin (2) the amount of private capital leveraged, by project type;
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new text begin (3) the number of qualified projects supported, by project type and location within
Minnesota;
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new text begin (4) the estimated number of jobs created and tax revenue generated as a result of the
fund's activities; and
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new text begin (5) the fund's financial statements.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $50,000,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of employment and economic development for a grant to the New Minnesota Fund for the
purposes provided under Minnesota Statutes, section 116X.01. This is a onetime appropriation
and is available until expended.
new text end