HF 2

as introduced - 91st Legislature, 2020 7th Special Session (2020 - 2020) Posted on 12/14/2020 03:01pm

A bill for an act
relating to economic development; funding payments and grants to businesses
affected by Governor's Executive Order No. 20-99; requiring reports; appropriating
money.

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

Section 1. new text begin MAIN STREET RELIEF; APPROPRIATIONS.
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new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin (a) $100,000,000 in fiscal year 2021 is appropriated
from the general fund to the commissioner of revenue for payments under subdivision 2.
Of this amount, no more than $250,000 may be used for the administrative costs incurred
in making these payments. This is a onetime appropriation.
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new text begin (b) $14,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of employment and economic development for grants under subdivision 3.
Of this amount, no more than $100,000 may be used for the administrative costs incurred
in making these payments. This is a onetime appropriation.
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new text begin (c) $102,500,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of management and budget for payments to counties which shall be used to
make grants to businesses and nonprofits under subdivision 4. Each county shall be issued
a payment in the amount of:
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new text begin (1) the greater of:
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new text begin (i) $200,000; or
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new text begin (ii) a per capita amount determined by reference to the population of each county
according to the most recently available 2019 population estimate from the state demographer
as of December 1, 2020; plus
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new text begin (2) an additional 2-1/2 percent which may be used by the county for the administrative
costs incurred in making these grants. This is a onetime appropriation.
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new text begin Subd. 2. new text end

new text begin Department of Revenue payments. new text end

new text begin (a) To be eligible for a payment under
this subdivision, a business must, to the extent it is feasible for the commissioner of revenue
to determine:
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new text begin (1) be one of the following types of businesses, as determined by the North American
Industry Classification System code on file for a business with the Department of Revenue:
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new text begin (i) a restaurant, cafeteria, coffee shop, caterer, or other provider of food and beverages
for on-site consumption;
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new text begin (ii) a bar or other provider of alcoholic beverages for on-site consumption;
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new text begin (iii) a brewery, winery, or distillery that derives a significant portion of its income from
on-site consumption of beverages or food;
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new text begin (iv) a bowling alley or bowling center; or
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new text begin (v) a fitness or sports recreation center, including centers for instruction in dance,
gymnastics, martial arts, or similar activities;
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new text begin (2) have generated a minimum of $10,000 in taxable gross receipts from retail sales in
2019;
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new text begin (3) have experienced a decline in overall taxable gross receipts from retail sales between
2019 and 2020 of 30 percent or more measured by those receipts in the second and third
quarters of each year;
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new text begin (4) have been directly impacted by Governor's Executive Order No. 20-99 and not be
exempt from that order;
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new text begin (5) have a physical presence in the state of Minnesota; and
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new text begin (6) be in good standing with the Department of Revenue as of November 1, 2020.
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new text begin (b) The commissioner of revenue shall make payments to eligible businesses according
to the following:
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new text begin (1) each business that does not participate in the unemployment insurance program shall
receive a payment in the amount of $10,000;
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new text begin (2) each business that employs 20 workers or less shall receive a payment in the amount
of $15,000;
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new text begin (3) each business that employs more than 20 workers but less than 101 workers shall
receive a payment in the amount of $25,000;
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new text begin (4) each business that employs more than 100 workers but less than 301 workers shall
receive a payment in the amount of $35,000; and
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new text begin (5) each business that employs more than 300 workers shall receive a payment in the
amount of $45,000.
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new text begin (c) Payments under this subdivision are a "Minnesota tax law" for purposes of Minnesota
Statutes, section 270B.01, subdivision 8.
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new text begin (d) Return information as defined in Minnesota Statutes, section 270B.01, of a business
may be disclosed by the commissioner of revenue to the commissioner of employment and
economic development to the extent necessary to administer the payments under this
subdivision.
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new text begin (e) The commissioner of revenue must not apply, and must not certify to another state
agency to apply, a payment under this subdivision to any unpaid tax or nontax debt owed
by a business.
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new text begin (f) Any funds not distributed by March 15, 2021, shall be deposited in the state general
fund by April 1, 2021.
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new text begin Subd. 3. new text end

new text begin Department of Employment and Economic Development grants. new text end

new text begin (a) To be
eligible for a grant under this subdivision, a business must, to the extent it is feasible for
the commissioner of employment and economic development to determine:
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new text begin (1) be either:
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new text begin (i) a movie theater that has at least one permanent indoor auditorium for viewing films
for entertainment by the general public who attend by the purchase of an individual ticket
to view a specific non-adult-oriented film and that also had at least $15,000 in ticket sales
in 2019; or
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new text begin (ii) a multipurpose convention center with a capacity for 1,500 people or more, that is
not part of a hotel, university, or retail mall, and is not primarily a music venue or theater;
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new text begin (2) have experienced a decline in overall sales between 2019 and 2020 of 30 percent or
more measured by sales in the second and third quarters of each year;
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new text begin (3) have been directly impacted by Governor's Executive Order No. 20-99 and not be
exempt from that order;
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new text begin (4) have a physical presence in the state of Minnesota; and
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new text begin (5) be in good standing with the Department of Revenue as of November 1, 2020.
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new text begin (b) The commissioner of employment and economic development shall make grants to
eligible businesses according to the following:
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new text begin (1) eligible businesses that are movie theaters shall receive a grant of $15,000 per screen
for each of the first two screens in the theater and a grant of $10,000 per screen for each
additional screen in the theater, with no theater receiving a total grant of more than $150,000;
and
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new text begin (2) eligible businesses that are convention centers shall receive a grant proportional to
the size of the venue and its workforce, with no convention center receiving a grant of more
than $500,000. Grant funds must be used for the direct operations and upkeep of convention
center facilities.
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new text begin (c) Any funds not distributed by March 15, 2021, shall be deposited in the state general
fund by April 1, 2021.
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new text begin Subd. 4. new text end

new text begin County administered grants. new text end

new text begin (a) To be eligible for a grant under this
subdivision, a business or nonprofit must, to the extent it is feasible for the county to
determine:
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new text begin (1) have been impacted by an executive order related to the COVID-19 pandemic;
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new text begin (2) be located in the county awarding the grant or on adjacent tribal lands; and
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new text begin (3) be in good standing with the Department of Revenue as of November 1, 2020.
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new text begin (b) Counties shall make grants to eligible businesses or nonprofits. Counties may contract
with a nonprofit to administer these grants.
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new text begin (c) Individual grants shall be proportional to the size of the business or nonprofit and in
amounts determined by the county.
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new text begin (d) Grant funds must be used by the eligible business or nonprofit for operations expenses
incurred during the COVID-19 pandemic.
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new text begin (e) Any funds not distributed by a county by March 15, 2021, shall be returned to the
commissioner of management and budget for deposit in the state general fund by April 1,
2021.
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new text begin Subd. 5. new text end

new text begin Report to the legislature. new text end

new text begin By June 30, 2021, the commissioners of revenue
and employment and economic development shall submit a report to the chairs of the
legislative committees with jurisdiction over business development detailing the use of
funds under this section.
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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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