HF 2302

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/25/2021 07:40pm

A bill for an act
relating to economic development; appropriating money for the business
development competitive grant program; amending Laws 2011, First Special
Session chapter 4, article 1, section 3, subdivision 2.

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

Section 1.

Laws 2011, First Special Session chapter 4, article 1, section 3, subdivision 2,
is amended to read:

Subd. 2. Business and Community Development

13,281,000

8,281,000

Appropriations by Fund
General	12,242,000	7,242,000
Remediation	700,000	700,000
Workforce Development	339,000	339,000

(a) $700,000 the first year and $700,000 the
second year are from the remediation fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. This appropriation is available until
expended.

(b) $1,022,000 the first year and $1,022,000
the second year are from the general fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. The base funding for this program
is $1,272,000 each year beginning in fiscal
year 2014 and thereafter.

(c) $150,000 the first year is from the general
fund for a grant to WomenVenture for
women's business development programs and
for programs that encourage and assist women
to enter nontraditional careers in the trades;
manual and technical occupations; science,
technology, engineering, and
mathematics-related occupations; and green
jobs. This appropriation may be matched
dollar for dollar with any resources available
from the federal government for these
purposes with priority given to initiatives that
have a goal of increasing by at least ten
percent the number of women in occupations
where women currently comprise less than 25
percent of the workforce. This is a onetime
appropriation.

(d) $79,000 the first year is from the general
fund and $50,000 the first year is from the
workforce development fund for a grant to the
Metropolitan Economic Development
Association for continuing minority business
development programs in the metropolitan
area. This appropriation must be used for the
sole purpose of providing free or reduced fee
business consulting services to minority
entrepreneurs and contractors. This is a
onetime appropriation.

(e)(1) $356,000 the first year is a onetime
appropriation from the general fund for a grant
to BioBusiness Alliance of Minnesota for
bioscience business development programs to
promote and position the state as a global
leader in bioscience business activities. These
funds may be used to create, recruit, retain,
and expand biobusiness activity in Minnesota;
implement the destination 2025 statewide plan;
update a statewide assessment of the
bioscience industry and the competitive
position of Minnesota-based bioscience
businesses relative to other states and other
nations; and develop and implement business
and scenario-planning models to create,
recruit, retain, and expand biobusiness activity
in Minnesota.

(2) The BioBusiness Alliance must report each
year by February 15 to the committees of the
house of representatives and the senate having
jurisdiction over bioscience industry activity
in Minnesota on the use of funds; the number
of bioscience businesses and jobs created,
recruited, retained, or expanded in the state
since the last reporting period; the competitive
position of the biobusiness industry; and
utilization rates and results of the business and
scenario-planning models and outcomes
resulting from utilization of the business and
scenario-planning models.

(f) $37,000 the first year is from the general
fund for a grant to the Minnesota Inventors
Congress, of which at least $3,700 must be
used for youth inventors. This is a onetime
appropriation.

(g)(1) $100,000 the first year is from the
workforce development fund for a grant under
Minnesota Statutes, section 116J.421, to the
Rural Policy and Development Center at St.
Peter, Minnesota. The grant shall be used for
research and policy analysis on emerging
economic and social issues in rural Minnesota,
to serve as a policy resource center for rural
Minnesota communities, to encourage
collaboration across higher education
institutions, to provide interdisciplinary team
approaches to research and problem-solving
in rural communities, and to administer overall
operations of the center. This is a onetime
appropriation.

(2) The grant shall be provided upon the
condition that each state-appropriated dollar
be matched with a nonstate dollar. Acceptable
matching funds are nonstate contributions that
the center has received and have not been used
to match previous state grants. Any funds not
spent the first year are available the second
year.

(h) $189,000 the first year is from the
workforce development fund for entrepreneur
and small business development direct
professional business assistance in Blue Earth,
Brown, Faribault, Le Sueur, Martin, Nicollet,
Sibley, Watonwan, and Waseca Counties.
These services must include, but are not
limited to, preventure assistance for
individuals considering starting a business.
Funds must be awarded to an organization or
organizations that can demonstrate leverage
of at least an equal amount of federal funds.
Any balance in the first year does not cancel
but is available in the second year. The grant
recipient must report to the commissioner by
February 1 of each year that the organization
receives a grant with the number of customers
served; the amount of direct consulting hours
delivered; the number of new businesses
started; the amount of capital accessed for
business start-up or expansion; and the number
of jobs created and retained in each county.
The commissioner must report to the house of
representatives and senate committees with
jurisdiction over economic development
finance on the effectiveness of these programs
for assisting in the development of
entrepreneurs and small businesses. This is a
onetime appropriation.

(i) $757,000 the second year is from the
general fund and $339,000 the second year is
from the workforce development fund for the
business development competitive grant pilot
program.

(1) The commissioner shall develop and
implement a competitive grant program for
business development assistance and services
including, but not limited to: deleted text begin minority deleted text end new text begin black,
indigenous, people of color, and immigrant new text end
business development, women's business
development, rural business development,
bioscience business development, entrepreneur
development, and services to inventors. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program.

(2) The commissioner must report to the
legislative committees having jurisdiction over
economic development issues by January 10
each year on the following: methodologies
and processes for soliciting and evaluating
grant proposals; criteria and methodology for
selecting grant recipients; methods and
procedures for monitoring the use of grant
awards including expenditures for
administrative expenses by grant recipients;
and methods for measuring outcomes and
accomplishments of grant recipients including
but not limited to the total number of new jobs
created by each grant recipient, average wage
of new jobs created, amount of private funds
leveraged, number of new businesses created
and the number of new jobs per business,
return on investment to the state, and ongoing
solicitation and feedback from interested
parties regarding ongoing improvement and
enhancement to the competitive grant
program. The commissioner must also report
on department expenditures related to the
administration and monitoring of grants under
this subdivision.

(j) $1,492,000 each year is from the general
fund for the Minnesota Trade Office.

(k) $3,000,000 the first year is from the
general fund for the Minnesota investment
fund under Minnesota Statutes, section
116J.8731. This is a onetime appropriation
and is available until spent.

(l) $2,000,000 the first year is from the general
fund for grants under Minnesota Statutes,
section 116J.571, for the redevelopment
program. This is a onetime appropriation and
is available until spent.

(m) $135,000 the first year is from the general
fund for a grant to Advocating Change
Together for training, technical assistance, and
resource materials for persons with
developmental and mental illness disabilities.
This is a onetime appropriation.

(n) $250,000 each year is from the general
fund for a grant to Enterprise Minnesota, Inc.,
for the small business growth acceleration
program under Minnesota Statutes, section
116O.115. This is a onetime appropriation.

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 APPROPRIATION; BUSINESS DEVELOPMENT COMPETITIVE GRANT
PROGRAM.
new text end

new text begin $6,425,000 in fiscal year 2022 and $6,425,000 in fiscal year 2023 are appropriated from
the general fund to the commissioner of employment and economic development for the
business development competitive grant program. Of this amount, up to five percent is for
administration and monitoring of the business development competitive grant program. All
grant awards shall be for two consecutive years. Grants shall be awarded in fiscal year 2022.
new text end