HF 3173

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/07/2022 02:59pm

A bill for an act
relating to economic development; appropriating money for grants to nonprofits
experiencing financial hardship as a result of the COVID-19 pandemic; requiring
reports.

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

Section 1. new text begin MINNESOTA NONPROFIT RELIEF GRANTS; APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin (a) $30,000,000 in fiscal year 2022 is appropriated from
the coronavirus relief fund to the commissioner of employment and economic development
for grants under this section to nonprofits experiencing financial hardship as a result of the
COVID-19 pandemic. Fifty percent of the grants must be distributed to nonprofits outside
the seven-county metropolitan area, as defined under Minnesota Statutes, section 473.121,
subdivision 2. Of this amount, $15,000,000 is for grants to nonprofits that serve underserved
communities and up to three percent may be used for the administrative costs incurred in
making these payments.
new text end

new text begin (b) In the event that the grants under this section are found not to be an eligible use of
the coronavirus relief fund, the appropriation in paragraph (a) is canceled and instead
$30,000,000 in fiscal year 2022 is appropriated from the general fund to the commissioner
of employment and economic development for grants under this section to nonprofits
experiencing financial hardship as a result of the COVID-19 pandemic. Fifty percent of the
grants must be distributed to nonprofits outside the seven-county metropolitan area, as
defined under Minnesota Statutes, section 473.121, subdivision 2. Of this amount,
$15,000,000 is for grants to nonprofits that serve underserved communities and up to three
percent may be used for the administrative costs incurred in making these payments.
new text end

new text begin Subd. 2. new text end

new text begin Grants. new text end

new text begin (a) To be eligible for a grant under this section, a nonprofit must, to
the extent it is feasible for the commissioner of employment and economic development to
determine:
new text end

new text begin (1) be located in the state of Minnesota;
new text end

new text begin (2) have a permanent physical location;
new text end

new text begin (3) have no current tax liens on record with the secretary of state as of the time of
application for a grant; and
new text end

new text begin (4) be able to demonstrate financial hardship as a result of the COVID-19 pandemic.
new text end

new text begin (b) Nonprofits may use grant funds under this section for working capital to support
providing continued services, including the expenses of payroll, rent, mortgage, utilities,
and other similar expenses that occur in the regular course of operations.
new text end

new text begin (c) The commissioner of employment and economic development is authorized to develop
all criteria, forms, applications, and reporting requirements necessary to issue these grants.
new text end

new text begin (d) Grants and the process of making grants under this section are exempt from the
following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3;
16B.97; and 16B.98, subdivisions 5, 7, and 8.
new text end

new text begin Subd. 3. new text end

new text begin Report to the legislature. new text end

new text begin By December 31, 2022, the commissioner of
employment and economic development shall submit a report to the chairs of the legislative
committees with jurisdiction over economic development detailing the use of funds under
this section.
new text end