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HF 2844

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/12/2024 01:50pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; appropriating money for cultural community rescue
restart grants; requiring a report.

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

Section 1. new text begin CULTURAL COMMUNITY RESCUE RESTART GRANTS.
new text end

new text begin Subdivision 1. 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.
new text end

new text begin (b) "Board" means the Minnesota State Arts Board.
new text end

new text begin (c) "Eligible organization" means an entity the board determines to be eligible to receive
a grant under subdivision 3 or 4.
new text end

new text begin Subd. 2. new text end

new text begin Grant awards. new text end

new text begin The board must award a grant to an eligible organization under
this section. No eligible organization may receive more than one grant under this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility of certain nonprofits and not-for-profits. new text end

new text begin To be eligible for a grant
under this subdivision, an organization must:
new text end

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

new text begin (2) have primary operations located in Minnesota;
new text end

new text begin (3) have received funding in fiscal year 2019, fiscal year 2020, or fiscal year 2021 from
the arts and cultural heritage fund, the Minnesota State Arts Board, one of the regional arts
councils, the Minnesota Humanities Center, or the Minnesota Historical Society and must
have complied with all requirements related to that funding;
new text end

new text begin (4) have been an entity operating on May 1, 2020, and be able to demonstrate the
nonprofit will likely be an operating entity on May 1, 2024; and
new text end

new text begin (5) have experienced financial hardship as a result of the COVID-19 pandemic and be
able to demonstrate at least a 25 percent reduction in gross receipts between comparable
quarters in 2019 and 2020.
new text end

new text begin Subd. 4. new text end

new text begin Eligibility of certain live entertainment organizations. new text end

new text begin (a) To be eligible for
a grant under this subdivision, an organization must have its principal place of business in
Minnesota and:
new text end

new text begin (1) have received a Shuttered Venue Operators grant; or
new text end

new text begin (2) be an organization directly engaged in the procurement, promotion, production, or
presentation of live entertainment events to an in-person audience that:
new text end

new text begin (i) demonstrates that the organization:
new text end

new text begin (A) derived at least 33 percent of its 2022 revenue from the sale of tickets for live events;
or
new text end

new text begin (B) is directly reliant on ticketed live entertainment events but is not directly in receipt
of those ticket revenues; and
new text end

new text begin (ii) currently employs no more than 60 full-time equivalent employees, defined as an
employee who worked on average 30 hours of service per week or 130 hours of service per
month.
new text end

new text begin (b) The following entities are not eligible for a grant under this subdivision:
new text end

new text begin (1) bars, restaurants, and other facilities whose primary source of revenue is not
entertainment events;
new text end

new text begin (2) multinational or publicly owned companies; and
new text end

new text begin (3) adult entertainment operations.
new text end

new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin An eligible organization may apply for a grant under this section.
new text end

new text begin Subd. 6. new text end

new text begin Grant amounts; process; permissible uses. new text end

new text begin (a) The amount of a grant awarded
under this section must be based on total revenue reported to the IRS for 2019 or, if the
eligible organization did not have revenue reported to the IRS in 2019, the organization's
second-year operating revenue, as follows:
new text end

new text begin (1) revenue of $9,000,000 to $19,999,999 receive $700,000 each;
new text end

new text begin (2) revenue of $1,700,000 to $8,999,999 receive $350,000 each;
new text end

new text begin (3) revenue of $500,000 to $1,699,999 receive $110,000 each;
new text end

new text begin (4) revenue of $150,000 to $499,999 receive $80,000 each;
new text end

new text begin (5) revenue of $25,000 to $149,999 receive $40,000 each; and
new text end

new text begin (6) revenue of under $25,000 receive $25,000, but the award amount may not exceed
100 percent of 2019 revenue.
new text end

new text begin (b) The board must develop forms, applications, and reporting requirements for use by
eligible organizations. All organizations applying for a grant must include as part of their
application a plan for continued operation.
new text end

new text begin (c) Only revenues that can be confirmed as being spent for the benefit of Minnesotans
are eligible for the calculation of grants under this section. The recipient of a grant under
this section must use grant money to pay for the recipient's operating expenses.
new text end

new text begin (d) All grants and grant-making processes under this section are exempt from Minnesota
Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98, subdivisions 5, 7, and 8. The
board must audit the use of grant funds under this section in accordance with standard
accounting practices. The exemptions under this paragraph expire on December 31, 2023.
new text end

new text begin Subd. 7. new text end

new text begin Report to the legislature. new text end

new text begin By January 15, 2025, the board must submit a report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over state government detailing the use of funds under this section.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin (a) $9,000,000 in fiscal year 2024 is appropriated from the general fund to the Minnesota
State Arts Board to provide grants under section 1. This is a onetime appropriation and is
available until June 30, 2025.
new text end

new text begin (b) $1,000,000 in fiscal year 2024 is appropriated from the general fund to the Minnesota
State Arts Board for a grant to the Minnesota Arts and Culture Coalition for a statewide
promotional campaign seeking to encourage Minnesotans to return to arts and cultural
venues.
new text end

new text begin (c) $1,000,000 in fiscal year 2024 is appropriated from the general fund to the Minnesota
State Arts Board for a grant to the regional arts councils for outreach in underserved
communities.
new text end

new text begin (d) $1,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of administration for a grant to CreativeMN to do statewide research on
underserved arts and cultural organizations, including data collection and identifying barriers
to current state funding opportunities.
new text end