HF 4522

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/29/2022 11:21pm

A bill for an act
relating to economic development; creating the pandemic relief grant program;
requiring reports; appropriating money.

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

Section 1. new text begin PANDEMIC RELIEF GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Business" means both for-profit businesses and nonprofit organizations that earn
revenue in ways similar to businesses, including but not limited to ticket sales and
membership fees.
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new text begin (c) "Commissioner" means the commissioner of employment and economic development.
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new text begin (d) "Partner organization" or "Partner" means the Minnesota Initiative Foundations and
nonprofit corporations on the certified lenders list that the commissioner determines to be
qualified to provide grants to businesses under this section.
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new text begin (e) "Program" means the pandemic relief grant program under this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish the pandemic relief grant
program to make grants to partner organizations to provide grants to businesses that have
been directly or indirectly impacted by the COVID-19 pandemic.
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new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall make grants to
partner organizations to provide grants to businesses under subdivision 4 using criteria,
forms, applications, and reporting requirements developed by the commissioner.
new text end

new text begin (b) Of funds granted to partner organizations, to the degree practical, an equal amount
shall go to partner organizations serving the seven-county metropolitan area as defined
under Minnesota Statutes, section 473.121, subdivision 2, as shall go to organizations serving
greater Minnesota.
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new text begin (c) Up to four percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program.
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new text begin (d) Any funds not spent by partner organizations by December 31, 2022, must be returned
to the commissioner and canceled back to the general fund.
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new text begin Subd. 4. new text end

new text begin Grants to businesses. new text end

new text begin (a) Partners shall make grants to businesses using criteria,
forms, applications, and reporting requirements developed by the commissioner.
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new text begin (b) To be eligible for a grant under this subdivision, a business must:
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new text begin (1) have primary business operations located in Minnesota;
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new text begin (2) be at least 50 percent owned by a resident of Minnesota;
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new text begin (3) employ the equivalent of 50 full-time workers or less;
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new text begin (4) be able to demonstrate financial hardship during 2022 as a result of the COVID-19
outbreak;
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new text begin (5) include as part of the application a business plan for continued operation; and
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new text begin (6) primarily do business in one or more of the industries listed under subdivision 5.
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new text begin (c) Grants under this subdivision shall be awarded by randomized selection process after
applications are collected over a period of no more than ten calendar days.
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new text begin (d) Grants under this subdivision shall be for up to $25,000 per business.
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new text begin (e) No business may receive more than one grant under this section.
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new text begin (f) Grant funds must be used for working capital to support payroll expenses, rent or
mortgage payments, utility bills, and other similar expenses that occur or have occurred
since January 1, 2022, in the regular course of business, but not to refinance debt that existed
at the time of the governor's COVID-19 peacetime emergency declaration.
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new text begin Subd. 5. new text end

new text begin Eligible industries. new text end

new text begin To be eligible for a grant under subdivision 4, a business
must primarily do business in one or more of the following industries:
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new text begin (1) serving food or beverages, such as restaurants, cafes, bars, breweries, wineries, and
distilleries;
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new text begin (2) personal services, such as hair care, nail care, skin care, or massage;
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new text begin (3) indoor entertainment, such as a business providing arcade games, escape rooms, or
indoor trampoline parks;
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new text begin (4) indoor fitness and recreational sports centers, such as gyms, fitness studios, indoor
ice rinks, and indoor swimming pools; or
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new text begin (5) wellness and recreation, such as the teaching of yoga, dance, or martial arts.
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new text begin Subd. 6. new text end

new text begin Distribution of awards. new text end

new text begin Of grant funds awarded under subdivision 4, a
minimum of:
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new text begin (1) $15,000,000 must be awarded to businesses that employ the equivalent of six full-time
workers or less;
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new text begin (2) $10,000,000 must be awarded to minority business enterprises, as defined in
Minnesota Statutes, section 116M.14, subdivision 5;
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new text begin (3) $2,500,000 must be awarded to businesses that are majority owned and operated by
veterans as defined in Minnesota Statutes, section 197.447; and
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new text begin (4) $2,500,000 must be awarded to businesses that are majority owned and operated by
women.
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new text begin Subd. 7. new text end

new text begin Exemptions. new text end

new text begin All grants and grant-making processes under this section are
exempt from Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98,
subdivisions 5, 7, and 8. The commissioner must audit the use of grant funds under this
section in accordance with standard accounting practices. The exemptions under this
subdivision expire on December 31, 2022.
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new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin (a) By January 31, 2023, partner organizations participating in the
program must provide a report to the commissioner that includes descriptions of the
businesses supported by the program, the amounts granted, and an explanation of
administrative expenses.
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new text begin (b) By February 15, 2023, the commissioner must report to the legislative committees
in the house of representatives and senate with jurisdiction over economic development
about grants made under this section based on the information received under paragraph
(a).
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Sec. 2. new text begin PANDEMIC RELIEF GRANT PROGRAM; APPROPRIATION.
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new text begin $100,000,000 in fiscal year 2023 is appropriated from the general fund to the
commissioner of employment and economic development for the pandemic relief grant
program. This is a onetime appropriation.
new text end