SF 1593

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/07/2025 09:01 a.m.

A bill for an act
relating to economic development; establishing an accessibility for the arts and
cultural economy capital grant program; requiring a report; appropriating money.

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

Section 1. new text begin ACCESSIBILITY FOR ARTS AND CULTURAL ECONOMY CAPITAL
GRANTS.
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new text begin Subdivision 1. new text end

new text begin Grant program established. new text end

new text begin The commissioner of employment and
economic development shall establish an arts and cultural economy capital grant program.
The commissioner shall make a grant to one or more intermediary organizations, to be
identified by the commissioner, to make grants to eligible grantees to fund necessary arts
or cultural facility building accessibility renovations to comply with Americans with
Disabilities Act (ADA) requirements and for capital projects at an arts or cultural facility.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this subdivision
have the meanings given.
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new text begin (b) "Arts or cultural facility" means a theater, performing arts venue, art gallery, cultural
center, place of worship, or other facility operated for artistic purposes located in Minnesota.
Arts or cultural facility does not include:
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new text begin (1) bars, restaurants, and other facilities whose primary source of revenue is not
entertainment events;
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new text begin (2) a facility owned by a multinational company or publicly owned company; or
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new text begin (3) adult entertainment establishments.
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new text begin (c) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin Subd. 3. new text end

new text begin Grant to intermediary organization. new text end

new text begin (a) The commissioner shall make a grant
to one or more community development financial institutions (CDFI), foundations, regional
development agencies, and Tribal governments to act as intermediary organizations to
provide capital projects grants using an application developed by the commissioner that
includes the criteria in paragraph (b).
new text end

new text begin (b) In identifying the appropriate intermediary organizations, the commissioner shall
consider the organization's:
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new text begin (1) knowledge of Minnesota's arts and cultural community;
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new text begin (2) knowledge of building accessibility requirements under the ADA;
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new text begin (3) previous experience with grantmaking and capital projects;
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new text begin (4) experience working across the geographic regions of Minnesota or within a specific
region; and
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new text begin (5) record of service in and with Minnesota's diverse communities.
new text end

new text begin (c) Up to five percent of a grant under this subdivision may be used by the CDFI
intermediary organization for administration, outreach, contract management, and monitoring
of the program.
new text end

new text begin Subd. 4. new text end

new text begin Eligible grantees; grant process. new text end

new text begin (a) An owner or operator of an arts or cultural
facility is eligible to receive a grant under this section if the entity operating the facility:
new text end

new text begin (1) is a 501(c)(3) or equivalent not-for-profit arts or cultural organization;
new text end

new text begin (2) derived at least 33 percent of the entity's 2023 revenue from the sale of tickets for
live events or is directly reliant on ticketed live entertainment events but is not directly in
receipt of those ticket revenues because the event is free to the general public and the revenue
is derived from sources other than ticket sales;
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new text begin (3) employed no more than 60 full-time equivalent employees. For purposes of this
subdivision, "full-time equivalent employee" means an employee who worked on average
30 hours of service per week or 130 hours of service per month;
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new text begin (4) has no current tax delinquency with the Department of Revenue at the time of the
grant application; and
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new text begin (5) is located in the state of Minnesota.
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new text begin (b) Grants shall be awarded by the intermediary through a request for proposals process
and may be awarded on a rolling basis. Selection shall be based on the significance of the
project, financial need of the organization, available matching funds, and number of people
served by the improvements. Projects to achieve compliance with the requirements of the
ADA shall be given priority. Geographic balance in awarding grants throughout Minnesota
shall also be a priority.
new text end

new text begin (c) The maximum grant to an eligible grantee under this section is $2,000,000.
new text end

new text begin Subd. 5. new text end

new text begin Report to the legislature. new text end

new text begin By January 15, 2026, the intermediary organization
must submit an initial report to the chairs and ranking minority members of the legislative
committees with jurisdiction over economic development on the use of funds under this
section and grant outcomes. A final report, with metrics to gauge geographic and diverse
impacts, is due to the legislature by the intermediary organization upon full expenditure of
the amount appropriated in section 2.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $50,000,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of employment and economic development for accessibility for arts and cultural economy
grants under section 1. Of this amount, 0.1 percent is for the commissioner of employment
and economic development to administer the program. This is a onetime appropriation and
is available until December 31, 2028.
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