HF 1018

as introduced - 90th Legislature (2017 - 2018) Posted on 02/16/2017 07:30pm

A bill for an act
relating to economic development; modifying grant program eligibility
requirements; making technical changes; appropriating money for economic
development grant programs; amending Minnesota Statutes 2016, sections
116J.431, subdivision 8; 116J.8731, by adding a subdivision; 116J.8748,
subdivision 3, by adding a subdivision; 116L.42, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 116J.431, subdivision 8, is amended to read:

Subd. 8.

deleted text begin Appropriation deleted text end new text begin Appropriations new text end .

new text begin (a) new text end Grant money returned to the commissioner
is appropriated to the commissioner to make additional grants under this section.

new text begin (b) $2,000,000 is annually appropriated beginning in fiscal year 2018 from the general
fund to the commissioner of employment and economic development for the greater
Minnesota business development public infrastructure grant program under this section.
new text end

Sec. 2.

Minnesota Statutes 2016, section 116J.8731, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Appropriation. new text end

new text begin $15,000,000 is annually appropriated beginning in fiscal year
2018 from the general fund to the commissioner of employment and economic development
for the Minnesota investment fund program under this section.
new text end

Sec. 3.

Minnesota Statutes 2016, section 116J.8748, subdivision 3, is amended to read:

Subd. 3.

Minnesota job creation fund business designation; requirements.

(a) To
receive designation as a Minnesota job creation fund business, a business must satisfy all
of the following conditions:

(1) the business is or will be engaged in, within Minnesota, one of the following as its
primary business activity:

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services provided
by attorneys, accountants, business consultants, physicians, or health care consultants, or
primarily engaged in making retail sales to purchasers who are physically present at the
business's location;

(3) the business must enter into a binding construction and job creation business subsidy
agreement with the commissioner to expend at least $500,000 in capital investment in a
capital investment project that includes a new, expanded, or remodeled facility within one
year following designation as a Minnesota job creation fund business and:

(i) create at least deleted text begin ten deleted text end new text begin five new text end new full-time employee positions within two years of the
benefit date following the designation as a Minnesota job creation fund business; or

(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 200 employees for projects
located in the metropolitan area as defined in section 200.02, subdivision 24, and 75
employees for projects located outside the metropolitan area;

(4) positions or employees moved or relocated from another Minnesota location of the
Minnesota job creation fund business must not be included in any calculation or determination
of job creation or new positions under this paragraph; and

(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
working hours of an employee for the purpose of hiring an individual to satisfy job creation
goals under this subdivision.

(b) Prior to approving the proposed designation of a business under this subdivision, the
commissioner shall consider the following:

(1) the economic outlook of the industry in which the business engages;

(2) the projected sales of the business that will be generated from outside the state of
Minnesota;

(3) how the business will build on existing regional, national, and international strengths
to diversify the state's economy;

(4) whether the business activity would occur without financial assistance;

(5) whether the business is unable to expand at an existing Minnesota operation due to
facility or land limitations;

(6) whether the business has viable location options outside Minnesota;

(7) the effect of financial assistance on industry competitors in Minnesota;

(8) financial contributions to the project made by local governments; and

(9) any other criteria the commissioner deems necessary.

(c) Upon receiving notification of local approval under subdivision 2, the commissioner
shall review the determination by the local government and consider the conditions listed
in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
area to designate a business as a Minnesota job creation fund business.

(d) If the commissioner designates a business as a Minnesota job creation fund business,
the business subsidy agreement shall include the performance outcome commitments and
the expected financial value of any Minnesota job creation fund benefits.

(e) The commissioner may amend an agreement once, upon request of a local government
on behalf of a business, only if the performance is expected to exceed thresholds stated in
the original agreement.

(f) A business may apply to be designated as a Minnesota job creation fund business at
the same location more than once only if all goals under a previous Minnesota job creation
fund agreement have been met and the agreement is completed.

Sec. 4.

Minnesota Statutes 2016, section 116J.8748, is amended by adding a subdivision
to read:

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin $12,500,000 is annually appropriated beginning in fiscal year
2018 from the general fund to the commissioner of employment and economic development
for awards and rebates under this section. Of this amount, at least 75 percent must be spent
on projects located outside the seven-county metropolitan area as defined in section 473.121,
subdivision 2.
new text end

Sec. 5.

Minnesota Statutes 2016, section 116L.42, is amended by adding a subdivision to
read:

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin $2,000,000 is annually appropriated beginning in fiscal year
2018 from the workforce development fund to the commissioner of employment and
economic development for job training grants under this section.
new text end