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HF 85

1st Engrossment - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/17/2020 12:21pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 06/15/2020
1st Engrossment Posted on 06/17/2020

Current Version - 1st Engrossment

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A bill for an act
relating to local government; establishing the Metropolitan Area Redevelopment
Corporation; providing powers and duties to the corporation; requiring a report;
appropriating money; proposing coding for new law as Minnesota Statutes, chapter
473K.

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

Section 1.

new text begin [473K.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For the purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Board. new text end

new text begin "Board" means the governing body of the corporation or Metropolitan
Area Redevelopment Corporation established in section 473K.03.
new text end

new text begin Subd. 3. new text end

new text begin Bonds. new text end

new text begin "Bonds" means obligations as defined in section 475.51, subdivision
3.
new text end

new text begin Subd. 4. new text end

new text begin City. new text end

new text begin "City" means a statutory or home rule charter city in the metropolitan
area. Until December 31, 2025, "city" means only the cities included in Executive Order
No. 20-64. Thereafter, "city" includes any city in the metropolitan area.
new text end

new text begin Subd. 5. new text end

new text begin Metropolitan area. new text end

new text begin "Metropolitan area" means the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

new text begin [473K.03] METROPOLITAN AREA REDEVELOPMENT CORPORATION.
new text end

new text begin Subdivision 1. new text end

new text begin Findings; creation; purpose. new text end

new text begin The legislature finds that the adverse
impacts of past and ongoing racial discrimination in the metropolitan area in all areas of
life, including economic and small business development, health, education, and housing,
requires creation of a public entity that is led by people of color and indigenous people to
bring specific, personal knowledge and experience to the work of addressing the adverse
impacts. The Metropolitan Area Redevelopment Corporation is established as a public
corporation and political subdivision of the state with jurisdiction in the metropolitan area.
The corporation shall identify and address the adverse impacts of racial discrimination in
the metropolitan area by facilitating access by people of color and indigenous people to
resources for development of health care facilities and services, small businesses, safe and
affordable housing, and other benefits of society that have historically been unavailable to
them due to systemic barriers. The corporation shall foster equitable economic development
to prevent gentrification and displacement of low-income residents, homes, and small
businesses owned by people of color and indigenous people. The corporation shall foster
enterprise development and wealth creation in communities adversely affected by racial
discrimination and poverty.
new text end

new text begin Subd. 2. new text end

new text begin Membership; qualifications; appointment. new text end

new text begin (a) The board of the corporation
consists of nine members appointed by the Executive Council. Until appointments made
after December 31, 2025, each member appointed must live in an area of a city that was
affected by the civil unrest between May 26, 2020, and June 10, 2020. For appointments
made after December 31, 2025, a member may be from any part of the metropolitan area.
new text end

new text begin (b) Each appointee must be a person of color or an Indigenous person. At least five
members must have an interest in and knowledge of the needs of the areas affected by the
civil unrest. At least four members must have experience with or knowledge of public health,
economic development, urban redevelopment, nonprofit finance, and community
empowerment. The appointing authority is encouraged to also consider a candidate's
experience as a leader in community-based organizations working on economic development.
new text end

new text begin Subd. 3. new text end

new text begin Chair; other officers. new text end

new text begin The chair of the corporation shall be selected by and
from among members of the corporation to serve a one-year term. The chair may be
reappointed by the members.
new text end

new text begin Subd. 4. new text end

new text begin Terms. new text end

new text begin The initial terms of five members, determined by lot, shall end the first
Monday in January 2024. The initial terms of four members, determined by lot, shall end
the first Monday in January 2022. Thereafter, each member shall serve a four-year term
and until the member's successor is appointed. A member may be reappointed.
new text end

new text begin Subd. 5. new text end

new text begin Vacancies. new text end

new text begin A vacancy occurs as provided in section 351.02 or upon a member's
removal under subdivision 6. A vacancy must be filled by the appointing authority in
subdivision 2 for the balance of the term in the same manner as a regular appointment.
new text end

new text begin Subd. 6. new text end

new text begin Removal. new text end

new text begin A member may be removed by the board for inefficiency, neglect
of duty, or misconduct in office. A member may be removed only after a hearing of the
board. A written copy of the charges must be given to the board member subject to the
allegations in the charges at least ten days before the hearing. The board member must be
given an opportunity to be heard in person or by counsel at the hearing. The board may
temporarily suspend a board member if written charges are submitted against the member.
The board must immediately reinstate the suspended board member if the board finds that
the charges against the member are not substantiated. If a board member is removed, a
record of the proceedings, together with the charges and findings, must be filed with the
appointing authority in subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Compensation. new text end

new text begin Members of the corporation shall be paid $10,000 per year, at
times and in the amounts provided in the bylaws. Members may also be reimbursed for
reasonable expenses as provided in section 15.059, subdivision 3.
new text end

new text begin Subd. 8. new text end

new text begin Audits. new text end

new text begin The state auditor shall audit the finances of the corporation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

new text begin [473K.05] POWERS; DUTIES.
new text end

new text begin Subdivision 1. new text end

new text begin General authority. new text end

new text begin The Metropolitan Area Redevelopment Corporation
has all powers necessary or convenient to accomplish the purposes for which it is created
and the duties assigned to it in law.
new text end

new text begin Subd. 2. new text end

new text begin Bylaws. new text end

new text begin The corporation shall adopt bylaws for the regulation of its affairs and
rules of procedure for governing its actions, not inconsistent with law.
new text end

new text begin Subd. 3. new text end

new text begin Meetings; data practices; records. new text end

new text begin The board must meet regularly at least
once a month. Meetings are subject to chapter 13D, the Minnesota Open Meeting Law. The
corporation is subject to chapter 13, the Minnesota Government Data Practices Act, and the
records retention law in section 15.17.
new text end

new text begin Subd. 4. new text end

new text begin Executive director; staff; facilities. new text end

new text begin (a) The corporation may hire an executive
director. Compensation shall be determined by the board. Until the corporation has hired
an executive director, the commissioner of employment and economic development, or the
commissioner's designee, shall serve as executive director and facilitate hiring an executive
director.
new text end

new text begin (b) The mayor of each city shall appoint a member of the city council or a department
head to serve as liaison to the corporation. The liaison shall attend all meetings to the extent
practicable, assist the board with assessing proposals, and help facilitate projects funded by
the board.
new text end

new text begin (c) The Metropolitan Council and any state agency, upon request by the executive
director, shall provide staff, technical and administrative assistance, and the use of facilities
for meetings. The council and state agencies must provide the assistance within existing
resources available to the council or state agency.
new text end

new text begin Subd. 5. new text end

new text begin Redevelopment plans. new text end

new text begin (a) The board shall develop both short-term and
long-term plans for the redevelopment of the cities. The board must consult with the mayors
and city councils, and all interested and affected parties, in the development of the plans.
The plans must provide for maximum grant amounts, the purposes for which grants may
be used, how grantees must account for use of grant funds, how results will be determined,
and what reports must be submitted to the corporation and the cities in which grant funds
are spent.
new text end

new text begin (b) The redevelopment plans must:
new text end

new text begin (1) be developed by the communities using a design process that includes using art and
culture to support and define the community;
new text end

new text begin (2) identify the expertise needed to implement long-term community redevelopment
plans;
new text end

new text begin (3) maximize resources from multiple sources and sectors;
new text end

new text begin (4) support projects that will act as incubators for small business ownership, including
ownership of the land and buildings in which the businesses and institutions grow; and
new text end

new text begin (5) use public investment as seed money to encourage public-private partnerships.
new text end

new text begin Subd. 6. new text end

new text begin Grants. new text end

new text begin (a) In addition to any other requirements in this chapter, the board shall
develop criteria for awarding grants and provide for the equitable distribution of grant funds.
All grants must be approved by the board before distribution.
new text end

new text begin (b) A grantee must be a nonprofit organization, organized under Internal Revenue Code,
section 501(c)(3). The organization must be one that is led by a person of color or an
indigenous person, and has a staff and board of which at least 51 percent are people of color
or indigenous people.
new text end

new text begin (c) At least 40 percent of the funds available each year must be used for grants to
organizations with annual operating budgets of less than $500,000.
new text end

new text begin (d) A grantee must substantially complete the project funded within two years of entering
into the grant agreement unless another time frame is specified in the grant agreement.
new text end

new text begin (e) Projects that may be funded include but are not limited to projects that:
new text end

new text begin (1) conduct community engagement processes to determine community priorities and
develop strategies to accomplish those priorities;
new text end

new text begin (2) plan and implement commercial and economic development projects;
new text end

new text begin (3) acquire property in order to obtain site control and ensure the property is maintained
and secured against further deterioration or incompatible development;
new text end

new text begin (4) serve as incubators for small business ownership, ownership of the land and buildings
in which the businesses and institutions grow;
new text end

new text begin (5) develop and improve a grantee's organizational infrastructure, including developing
database management systems, financial systems, and other administrative functions that
increase the organization's ability to access new funding sources;
new text end

new text begin (6) improve a grantee's organization with training and skills development, planning, and
other methods of increasing staff capacity and cultural competency; and
new text end

new text begin (7) increase the capacity of the grantee to improve other services in the community, such
as health care and education.
new text end

new text begin (f) A grantee may partner with other existing organizations, public or private, that have
useful specialized expertise or capacity, including but not limited to faith-based groups,
schools, health care clinics, government agencies, or for-profit entities.
new text end

new text begin Subd. 7. new text end

new text begin Report. new text end

new text begin By March 1 each year, the board must submit an annual report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
government operations, jobs and economic development, and taxes. The report must include
aggregate and detailed information on the grants awarded, including the locations, amounts,
uses, and any other information that the board determines would be of interest or use to the
legislature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

new text begin [473K.09] EXPIRATION.
new text end

new text begin This chapter expires December 31, 2031.
new text end