HF 3865

as introduced - 89th Legislature (2015 - 2016) Posted on 04/07/2016 02:57pm

A bill for an act
relating to state government; providing supplemental appropriations;
appropriating money to the Departments of Employment and Economic
Development, Labor and Industry, and Commerce, and the Housing Finance
Agency, Public Utilities Commission, and Explore Minnesota Tourism;
modifying utility assessments; creating the emerging entrepreneur fund program;
amending Minnesota Statutes 2014, sections 115C.13; 216B.62, subdivision 2,
by adding a subdivision; Laws 2015, chapter 71, article 14, section 9; Laws
2015, First Special Session chapter 1, article 1, sections 3, subdivisions 1, 5,
6, 10; 6; 8, subdivisions 1, 7; 9; proposing coding for new law in Minnesota
Statutes, chapter 116J.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns under "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2015, First Special Session
chapter 1, article 1, or other law to the specified agencies. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figure "2017" used in this article means that the appropriations listed
under it are available for the fiscal year ending June 30, 2017.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
						new text begin 2017 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 122,100,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin $110,000,000 new text end

new text begin Border-to-Border Broadband
Development Program. (a) $100,000,000
in fiscal year 2017 is for deposit in the
border-to-border broadband fund account
created under Minnesota Statutes, section
116J.396, and may be used for the purposes
provided in Minnesota Statutes, section
116J.395. This is a onetime appropriation.
new text end

new text begin (b) Of the appropriation in paragraph (a),
up to two percent of this amount is for
costs incurred by the commissioner to
administer Minnesota Statutes, section
116J.395. Administrative costs may include
the following activities related to measuring
progress toward the state's broadband goals
established in Minnesota Statutes, section
237.012:
new text end

new text begin (1) collecting broadband deployment data
from Minnesota providers, verifying its
accuracy through on-the-ground testing, and
creating state and county maps available
to the public showing the availability of
broadband service at various upload and
download speeds throughout Minnesota;
new text end

new text begin (2) analyzing the deployment data collected
to help inform future investments in
broadband infrastructure; and
new text end

new text begin (3) conducting business and residential
surveys that measure broadband adoption
and use in the state.
new text end

new text begin (c) Data provided by a broadband provider
under this paragraph is nonpublic data
under Minnesota Statutes, section 13.02,
subdivision 9. Maps produced under this
paragraph are public data under Minnesota
Statutes, section 13.03.
new text end

new text begin Redevelopment Grant Program.
new text end new text begin $2,000,000 in fiscal year 2017 is for the
redevelopment program under Minnesota
Statutes, section 116J.571. This is a onetime
appropriation.
new text end

new text begin Capacity Building Grant Program.
new text end new text begin $2,000,000 in fiscal year 2017 is for the
capacity building grant program to assist
nonprofit organizations offering or seeking to
offer workforce development and economic
development programming. This is a
onetime appropriation.
new text end

new text begin Emerging Entrepreneur Fund. new text end new text begin $6,000,000
in fiscal year 2017 is for the emerging
entrepreneur fund program. Of this amount:
(1) $5,000,000 is for small business
lending and is for deposit in the emerging
entrepreneur fund special revenue account
under Minnesota Statutes, section 116J.55;
(2) $1,000,000 is for grants for small business
technical assistance; and (3) up to five percent
is for administration and monitoring of the
program. This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end new text begin Workforce Development new text end

new text begin 12,100,000 new text end

new text begin Youth at Work Competitive Grant
Program. new text end new text begin $8,000,000 in fiscal year 2017
is for the Youth at Work youth workforce
development competitive grant program.
Of this amount, up to five percent is
for administration and monitoring of the
program. This is a onetime appropriation and
is available until June 30, 2018.
new text end

new text begin Pathways to Prosperity Competitive
Grant Program. new text end new text begin $4,100,000 in fiscal year
2017 is for the Pathways to Prosperity adult
workforce development competitive grant
program. Of this amount, up to five percent
is for administration and monitoring of the
program. This is a onetime appropriation and
is available until June 30, 2018.
new text end

Sec. 3. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin 250,000 new text end

new text begin $250,000 is from the workforce development
fund for the apprenticeship program under
Minnesota Statutes, chapter 178. This
amount is added to the base appropriation for
this purpose.
new text end

Sec. 4. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 300,000 new text end

new text begin $300,000 for a grant to the Mille Lacs
Tourism Council to enhance marketing
activities related to tourism promotion in
the Mille Lacs Lake area. This is a onetime
appropriation.
new text end

Sec. 5. new text begin PUBLIC EMPLOYMENT RELATIONS BOARD new text end

new text begin $ new text end

new text begin $525,000 new text end

new text begin $525,000 is for the Public Employment
Relations Board under Minnesota Statutes,
section 179A.041. The base appropriation
for this purpose is $525,000 in fiscal year
2018 and $525,000 in fiscal year 2019.
new text end

Sec. 6.

Laws 2015, chapter 71, article 14, section 9, is amended to read:

Sec. 9. COMMISSIONER OF COMMERCE

$

210,000

deleted text begin $ deleted text end

deleted text begin 213,000 deleted text end

The commissioner of commerce shall
develop a proposal to allow individuals
to purchase qualified health plans outside
of MNsure directly from health plan
companies and to allow eligible individuals
to receive advanced premium tax credits and
cost-sharing reductions when purchasing
qualified health plans outside of MNsure.

Sec. 7.

Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 1,
is amended to read:

Subdivision 1. Total Appropriation

$

54,298,000

$

deleted text begin 50,298,000 deleted text end new text begin 56,548,000 new text end

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Unless otherwise specified, this appropriation
is for transfer to the housing development
fund for the programs specified in this
section. Except as otherwise indicated, this
transfer is part of the agency's permanent
budget base.

Sec. 8.

Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 5,
is amended to read:

Subd. 5. Family Homeless Prevention

8,519,000

deleted text begin 8,519,000 deleted text end new text begin 8,769,000 new text end

This appropriation is for the family homeless
prevention and assistance programs under
Minnesota Statutes, section 462A.204. new text begin Of
this amount, $250,000 in the second year
is a onetime appropriation for grants to
eligible applicants to create or expand risk
mitigation programs to reduce landlord
financial risks for renting to persons eligible
under Minnesota Statutes, section 462A.204.
Eligible programs may reimburse landlords
for costs including but not limited to
nonpayment of rent, or damage costs above
those costs covered by security deposits. The
agency may give higher priority to applicants
that can demonstrate a matching amount
of money by a local unit of government,
business, or nonprofit organization. Grantees
must establish a procedure to review and
validate claims and reimbursements under
this grant program.
new text end

Sec. 9.

Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision 6,
is amended to read:

Subd. 6. Home Ownership Assistance Fund

885,000

deleted text begin 885,000 deleted text end new text begin 5,885,000 new text end

This appropriation is for the home ownership
assistance program under Minnesota
Statutes, section 462A.21, subdivision 8.
The agency shall continue to strengthen
its efforts to address the disparity gap in
the homeownership rate between white
households and indigenous American Indians
and communities of color. new text begin The base for this
program is $885,000 in fiscal year 2018 and
$885,000 in fiscal year 2019.
new text end

Sec. 10.

Laws 2015, First Special Session chapter 1, article 1, section 3, subdivision
10, is amended to read:

Subd. 10. Capacity Building Grants

375,000

deleted text begin 375,000 deleted text end new text begin 1,375,000 new text end

new text begin (a) new text end This appropriation is for nonprofit
capacity building grants under Minnesota
Statutes, section 462A.21, subdivision 3b.
Of this amount, $125,000 each year is
for support of the Homeless Management
Information System (HMIS).

new text begin (b) $1,000,000 is a onetime appropriation
for competitive grants to nonprofit housing
organizations, housing and redevelopment
authorities, or other political subdivisions
to provide intensive financial education and
coaching services to individuals or families
who have the goal of homeownership.
Financial education and coaching services
include but are not limited to asset building,
development of spending plans, credit report
education, repair and rebuilding, consumer
protection training, and debt reduction.
Priority must be given to organizations
that have experience serving underserved
populations.
new text end

Sec. 11.

Laws 2015, First Special Session chapter 1, article 1, section 6, is amended to
read:

Sec. 6. BUREAU OF MEDIATION SERVICES

$

2,208,000

$

deleted text begin 2,234,000 deleted text end new text begin 2,497,000 new text end

(a) $68,000 each year is for grants to area
labor management committees. Grants may
be awarded for a 12-month period beginning
July 1 each year. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.

(b) $125,000 deleted text begin each year deleted text end new text begin in fiscal year 2016 new text end
is for purposes of the Public Employment
Relations Board under Minnesota Statutes,
section 179A.041. new text begin This is a onetime
appropriation.
new text end

(c) $256,000 deleted text begin each year is deleted text end new text begin in fiscal year
2016 and $394,000 in fiscal year 2017 are new text end
for the Office of Collaboration and Dispute
Resolution under Minnesota Statutes, section
179.90. new text begin The base appropriation for this
purpose is $394,000 in fiscal year 2018 and
$394,000 in fiscal year 2019. new text end Of this amount,
$160,000 each year is for grants under
Minnesota Statutes, section 179.91, and
$96,000 each year is for intergovernmental
and public policy collaboration and operation
of the office.

new text begin (d) $250,000 is to complete the Case
Management System-Database Project Phase
II. The base appropriation for this purpose
is increased by $100,000 in each of fiscal
years 2018 and 2019 for operations, support,
and continued enhancement of the Case
Management System.
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. 12.

Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 1,
is amended to read:

Subdivision 1. Total Appropriation

$

34,003,000

$

deleted text begin 34,073,000 deleted text end new text begin 32,073,000 new text end

Appropriations by Fund
	2016	2017
General	30,960,000	deleted text begin 31,030,000 deleted text end new text begin 29,030,000 new text end
Special Revenue	1,240,000	1,240,000
Petroleum Tank	1,052,000	1,052,000
Workers' Compensation	751,000	751,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Sec. 13.

Laws 2015, First Special Session chapter 1, article 1, section 8, subdivision 7,
is amended to read:

Subd. 7. Energy Resources

3,848,000

deleted text begin 3,845,000 deleted text end new text begin 1,845,000 new text end

$150,000 each year is for grants to
providers of low-income weatherization
services to install renewable energy
equipment in households that are eligible for
weatherization assistance under Minnesota's
weatherization assistance program state
plan as provided for in Minnesota Statutes,
section 216C.264.

$424,000 in fiscal year 2016 and $430,000
in fiscal year 2017 are for costs associated
with competitive rates for energy-intensive,
trade-exposed electric utility customers.
All general fund appropriations for costs
associated with competitive rates for
energy-intensive, trade-exposed electric
utility customers are recovered through
assessments under Minnesota Statutes,
section 216B.62.

Sec. 14.

Laws 2015, First Special Session chapter 1, article 1, section 9, is amended to
read:

Sec. 9. PUBLIC UTILITIES COMMISSION

$

deleted text begin 6,966,000 deleted text end new text begin 7,191,000 new text end

$

deleted text begin 6,930,000 deleted text end new text begin 7,507,000 new text end

new text begin The general fund base for the Public Utilities
Commission is $7,444,000 in fiscal year
2018 and $7,444,000 in fiscal year 2019.
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

ARTICLE 2

DEPARTMENT OF COMMERCE

Section 1.

Minnesota Statutes 2014, section 115C.13, is amended to read:

115C.13 REPEALER.

Sections 115C.01, 115C.02, 115C.021, 115C.03, 115C.04, 115C.045, 115C.05,
115C.06, 115C.065, 115C.07, 115C.08, 115C.09, 115C.093, 115C.094, 115C.10, 115C.11,
115C.112, 115C.113, 115C.12, and 115C.13, are repealed effective June 30, deleted text begin 2017 deleted text end new text begin 2022 new text end .

Sec. 2.

Minnesota Statutes 2014, section 216B.62, subdivision 2, is amended to read:

Subd. 2.

Assessing specific utility.

Whenever the commission or department, in a
proceeding upon its own motion, on complaint, or upon an application to it, shall deem it
necessary, in order to carry out the duties imposed under this chapter (1) to investigate the
books, accounts, practices, and activities of, or make appraisals of the property of, any
public utility, (2) to render any engineering or accounting services to any public utility, or
(3) to intervene before an energy regulatory agency, the public utility shall pay the expenses
reasonably attributable to the investigation, appraisal, service, or intervention. The
commission and department shall ascertain the expenses, and the department shall render
a bill therefor to the public utility, either at the conclusion of the investigation, appraisal,
or services, or from time to time during its progress, which bill shall constitute notice of
the assessment and a demand for payment. The amount of the bills so rendered by the
department shall be paid by the public utility into the state treasury within 30 days from the
date of rendition. The total amount, in any one calendar year, for which any public utility
shall become liable, by reason of costs incurred by the commission within that calendar
year, shall not exceed two-fifths of one percent of the gross operating revenue from retail
sales of gas, or electric service by the public utility within the state in the last preceding
calendar year. Where, pursuant to this subdivision, costs are incurred within any calendar
year which are in excess of two-fifths of one percent of the gross operating revenues, the
excess costs shall not be chargeable as part of the remainder under subdivision 3, but shall
be paid out of the general appropriation new text begin or special revenue fund new text end to the department and
commission. In the case of public utilities offering more than one public utility service
only the gross operating revenues from the public utility service in connection with which
the investigation is being conducted shall be considered when determining this limitation.

Sec. 3.

Minnesota Statutes 2014, section 216B.62, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin Utility assessment account; appropriation. new text end

new text begin The utility assessment
account is created as a separate account in the special revenue fund in the state treasury.
Funds received by the department for the assessment of costs related to the energy
planning and advocacy unit under subdivisions 2 and 3 must be deposited into this
account and are annually appropriated to the commissioner of commerce. Earnings,
such as interest, dividends, and any other earnings arising from account assets, must be
credited to the account. Assessments dated June 1, 2016, or later will be paid into the
utility assessment account.
new text end

ARTICLE 3

DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

Section 1.

new text begin [116J.55] EMERGING ENTREPRENEUR FUND PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Program created. new text end

new text begin The emerging entrepreneur fund program is
created to provide, through partnership with nonprofit corporations, financial and technical
assistance for small businesses owned by minorities, women, veterans, or persons with
disabilities, or businesses located in low-income areas in the seven-county metropolitan
area. Loans and business development services must promote job creation and economic
development in low-income areas and encourage private investment and strengthen
businesses owned by minorities, women, veterans, and persons with disabilities.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Commissioner" means the commissioner of employment and economic
development.
new text end

new text begin (c) "Department" means the Department of Employment and Economic
Development.
new text end

new text begin (d) "Disability-owned business" means a small business that is majority owned and
operated by a person with a disability who is eligible to receive Supplemental Security
Income (SSI) or Social Security Disability Insurance (SSDI) based on the person's own
disability or is eligible for services from the department's vocational rehabilitation services
or State Services for the Blind programs.
new text end

new text begin (e) "Emerging Entrepreneur Fund Advisory Council" or "council" means the
advisory council created under subdivision 9.
new text end

new text begin (f) "Emerging entrepreneur fund program" or "program" means the program
established under this section.
new text end

new text begin (g) "Emerging entrepreneur fund qualified small business" means a small business
that is majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with a disability, solely or in any combination thereof.
new text end

new text begin (h) "Greater Minnesota" means the area of the state that excludes the metropolitan
area, as defined in section 473.121, subdivision 2.
new text end

new text begin (i) "Low-income area" means:
new text end

new text begin (1) those cities in the metropolitan area that have an average income that is below
80 percent of the median income for a four-person family as of the latest report by the
United States Census Bureau; or
new text end

new text begin (2) those cities in the metropolitan area that contain two or more contiguous census
tracts in which the average family income is less than 80 percent of the median family
income for the Twin Cities metropolitan area.
new text end

new text begin (j) "Metropolitan area" has the meaning given in section 473.121, subdivision 2.
new text end

new text begin (k) "Minority-owned business" means a small business that is majority owned and
operated by persons belonging to a racial or ethnic minority as defined in Minnesota
Rules, part 1230.0150, subpart 24.
new text end

new text begin (l) "Nonprofit corporation" means a nonprofit lender or a nonprofit technical
assistance provider operating in the state.
new text end

new text begin (m) "Nonprofit lender" means a nonprofit corporation that has been certified as a
participating lender under subdivision 3.
new text end

new text begin (n) "Nonprofit technical assistance provider" means a nonprofit corporation that
provides consulting services to assist businesses under the program.
new text end

new text begin (o) "Small business" means an enterprise as defined in section 645.445, subdivision 2.
new text end

new text begin (p) "Veteran-owned business" means a small business that is majority owned and
operated by a veteran as defined in section 197.447.
new text end

new text begin (q) "Woman-owned business" means a small business that is majority owned and
operated by a woman.
new text end

new text begin Subd. 3. new text end

new text begin Nonprofit lender application. new text end

new text begin (a) The commissioner shall provide funds
to nonprofit lenders for the purpose of making loans to businesses that are (1) located in a
low-income area or (2) emerging entrepreneur fund qualified small businesses.
new text end

new text begin (b) A nonprofit corporation wishing to be certified as a nonprofit lender in the program
must apply using the form prescribed by the commissioner. The application must include:
new text end

new text begin (1) an assurance signed by the nonprofit lender's chair that the applicant will comply
with all applicable state and federal laws, guidelines, and requirements;
new text end

new text begin (2) a resolution passed by the nonprofit lender's board of directors approving the
submission of an application and authorizing execution of the grant agreement if funds
are made available;
new text end

new text begin (3) a plan demonstrating the nonprofit lender's approach to assisting small businesses
that are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with disabilities and the expected outcomes from the corporation's participation
in the program;
new text end

new text begin (4) the geographic area served by the nonprofit lender's loan programs; and
new text end

new text begin (5) any additional information that the commissioner deems necessary to clarify the
applicant's ability to achieve the program's objectives.
new text end

new text begin (c) The commissioner must enter into agreements with nonprofit lenders to fund
loans under this section. The commissioner shall select and certify participating nonprofit
lenders based on the organization's ability to demonstrate:
new text end

new text begin (1) a board of directors or management team that includes citizens experienced in
business development; financing small businesses that are majority owned and operated
by a racial or ethnic minority, woman, veteran, or a person with disabilities; financing
businesses located in low-income areas; and creating jobs in low-income areas;
new text end

new text begin (2) the technical skills needed to analyze projects;
new text end

new text begin (3) familiarity with other available public and private funding sources and economic
development programs;
new text end

new text begin (4) ability to initiate and implement business finance projects;
new text end

new text begin (5) capacity to establish and administer a revolving loan account;
new text end

new text begin (6) experience working with job referral networks that assist small businesses that
are majority owned and operated by a racial or ethnic minority, woman, veteran, or a
person with disabilities or persons in low-income areas; and
new text end

new text begin (7) any other criteria the commissioner deems necessary.
new text end

new text begin (d) The commissioner shall solicit applications by participating and nonparticipating
lenders at least every five years.
new text end

new text begin Subd. 4. new text end

new text begin Business loan criteria. new text end

new text begin (a) A participating nonprofit corporation must use
the criteria in this subdivision when making loans under the program.
new text end

new text begin (b) Loans must be made to small businesses that are not likely to undertake a project
for which loans are sought without assistance from the program.
new text end

new text begin (c) A loan may be used for a project for an emerging entrepreneur fund qualified
small business (1) located anywhere in Minnesota or (2) that is not an emerging
entrepreneur fund qualified small business but is located in a low-income area.
new text end

new text begin (d) If a loan involves a small business that is not an emerging entrepreneur fund
qualified small business, the state contribution must be matched by at least an equal
amount of new private investment funded and provided by the nonprofit lender. If the loan
does not exceed $50,000, private matching funds are not required.
new text end

new text begin (e) The state contribution may represent up to 75 percent of the project's financing if
the applicant is an emerging entrepreneur fund qualified small business with the nonprofit
lender funding and providing 25 percent of the financing.
new text end

new text begin (f) The minimum state contribution to a loan is $2,000, and the maximum is $150,000.
new text end

new text begin (g) A loan may not be used for a retail development project unless the loan does
not exceed $25,000.
new text end

new text begin (h) The participating small business must agree to work with job referral networks
that focus on minority, women, veteran, and disabled applicants.
new text end

new text begin (i) The loan funds may be used for normal operating business expenses including
but not limited to business or site acquisition, new construction, renovation, machinery
and equipment, inventory, or working capital.
new text end

new text begin (j) The loan funds may not be used for any of the following:
new text end

new text begin (1) costs incurred by applicants not meeting the eligibility requirements in this
subdivision;
new text end

new text begin (2) lending, passive real estate investment purposes, or land speculation;
new text end

new text begin (3) management fees, financing costs, debt consolidation, or refinancing existing
business or personal debt;
new text end

new text begin (4) any activity deemed illegal by federal, state, or local law or ordinance; and
new text end

new text begin (5) other purposes or activities determined by the commissioner to not be in the
best interests of the state.
new text end

new text begin (k) An applicant must be in compliance with all applicable local, state, and federal
laws and must not be subject to any judgments, liens, or other actions that would prevent
loan repayment.
new text end

new text begin (l) Other factors that the commissioner deems important shall be incorporated as
part of the agreement between the department and the nonprofit lender required under
subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Loan administration. new text end

new text begin (a) An eligible small business may make an
application to the nonprofit corporation for an emerging entrepreneur fund loan. The
application must be in the form approved by the nonprofit lender and the commissioner.
new text end

new text begin (b) The nonprofit corporation must review the application and may give preliminary
approval for the loan based on criteria in subdivision 4. Loan applications given
preliminary approval by the nonprofit lender must be forwarded to the commissioner
for approval. The commissioner shall disburse funds for each approved emerging
entrepreneur fund loan made by the nonprofit corporation for which funding is available.
new text end

new text begin (c) In cases where the nonprofit lender fails to demonstrate that it has met the
requirements of this section, the commissioner must disapprove the application. The
commissioner shall inform the nonprofit corporation of the decision, in writing, stating
the reasons for the denial.
new text end

new text begin (d) The nonprofit lender must use a loan agreement for each emerging entrepreneur
fund loan. Each agreement must identify specific loan terms and include, at a minimum, the
maximum loan period, repayment terms, and default terms. The commissioner may pursue
any course of action authorized by statute, rule, or loan agreement to remedy default.
new text end

new text begin (1) Nonprofit lenders may structure project financing using interest or an equivalent
approach using other allowable charges if the borrower has limitations or restrictions on
the type of project financing used.
new text end

new text begin (2) If interest is charged, the rate on a loan shall be established by the nonprofit
lender, but may be no less than two percent per annum nor more than seven percent per
annum or four percent above the prime rate, as published in the Wall Street Journal at the
time the loan is closed, whichever is greater.
new text end

new text begin (3) The nonprofit lender may charge a loan origination fee equal to or less than
one percent of the loan value. The nonprofit corporation may retain the amount of the
origination fee.
new text end

new text begin (4) The nonprofit lender may only charge the participating small business
out-of-pocket administrative expenses connected with originating the loan at the time
of closing.
new text end

new text begin (5) For emerging entrepreneur fund loans made by the nonprofit lender, the principal
payments shall be submitted to the commissioner. These funds must be deposited in the
emerging entrepreneur fund account in the special revenue fund as defined in subdivision 6.
new text end

new text begin (6) The commissioner may allow the nonprofit lender to keep interest payments for
a loan in order to pay for the nonprofit lender's administrative expenses associated with
that loan.
new text end

new text begin (7) The nonprofit lender shall attempt to have applicants provide security for the loan
equal to the loan value. Security may be a lien on real property owned by the applicant or
other security satisfactory to the agency such as a lien on other assets of the applicant or
other individuals affiliated with the applicant or business, or a guaranty by the business
owners or other individuals affiliated with the applicant or business.
new text end

new text begin Subd. 6. new text end

new text begin Special revenue account. new text end

new text begin (a) The emerging entrepreneur fund account
is established as a separate account in the special revenue fund in the state treasury.
The commissioner shall transfer to the account appropriations made for loans. Loan
principal repayments must be deposited in the account. Any interest not used for lenders
for administrative expenses and repaid to the commissioner or earned on money in the
account accrues to the account. Funds remaining in the account at the end of a fiscal
year are not canceled to the general fund, but remain in the account until expended. The
commissioner shall manage the account.
new text end

new text begin (b) Amounts in the emerging entrepreneur fund account in the special revenue fund
are appropriated to the commissioner for providing, through partnership with nonprofit
organizations, financial assistance for small businesses owned by minorities, women,
veterans, or persons with disabilities or located in low-income areas.
new text end

new text begin (c) The balance in any accounts authorized under chapter 116M shall be transferred
to the emerging entrepreneur fund account in the special revenue fund. Loan repayments
made under chapter 116M shall be transferred to the emerging entrepreneur fund account
in the special revenue fund.
new text end

new text begin Subd. 7. new text end

new text begin Business development technical assistance. new text end

new text begin (a) The commissioner shall
award grants to organizations to provide technical assistance services.
new text end

new text begin (b) The commissioner shall select participating nonprofit technical assistance
providers for competitive grants under this subdivision based on the organization's ability
to provide services to small businesses owned by minorities, women, veterans, or persons
with disabilities, or businesses located in low-income areas by demonstrating:
new text end

new text begin (1) a need for funding;
new text end

new text begin (2) clear and measurable activities and outcomes within a service delivery area
and schedule;
new text end

new text begin (3) partnerships that will support the service delivery;
new text end

new text begin (4) organizational capacity and related experience providing technical assistance;
new text end

new text begin (5) a clear and detailed budget;
new text end

new text begin (6) methods to evaluate the success of reaching proposed outcomes; and
new text end

new text begin (7) any additional information that the commissioner finds is necessary to clarify
the applicant's ability to achieve the program's objectives.
new text end

new text begin Subd. 8. new text end

new text begin Reporting requirements. new text end

new text begin (a) A nonprofit corporation that receives
funding from the emerging entrepreneur fund for loans or technical services must report to
the commissioner by March 1 of each year in a format prescribed by the commissioner.
The report shall include the information in this subdivision and any other information
deemed necessary by the commissioner.
new text end

new text begin (b) Nonprofit corporations that receive funding to provide lending shall submit a
report containing: a description of all projects supported by the program; an account of
any loans made during the calendar year; the project's assets and liabilities; an explanation
of administrative expenses; and the project's impact on small businesses owned by
minorities, women, veterans, or persons with disabilities.
new text end

new text begin (c) Nonprofit corporations that receive funding to provide lending shall provide
for an independent annual audit to be performed in accordance with generally accepted
accounting practices and auditing standards and submit a copy of each annual audit report
to the commissioner.
new text end

new text begin (d) Nonprofit corporations that receive a grant to provide business development
technical assistance shall provide an account of the number of businesses served during
the calendar year, the program's impact on small businesses owned by minorities, women,
veterans, or persons with disabilities, and an explanation of administrative expenses.
new text end

new text begin Subd. 9. new text end

new text begin Emerging Entrepreneur Fund Advisory Council. new text end

new text begin (a) The Emerging
Entrepreneur Fund Advisory Council is created and consists of the commissioner, the
chair of the Metropolitan Council, the commissioner of the Department of Human Rights,
and ten members from the general public appointed by the governor. Appointments must
ensure balanced geographic representation. At least half of the public members must have
experience working to address racial disparities.
new text end

new text begin (b) The membership terms, compensation, removal, and filling of vacancies of
public members of the council are as provided in section 15.0575.
new text end

new text begin (c) The commissioner shall serve as chair of the council. The council may elect other
officers as necessary from its members.
new text end

new text begin (d) The commissioner shall provide staff, consultant support, materials, and
administrative services necessary for the council's activities. The emerging entrepreneur
fund account in the special revenue fund may be used for council expenses.
new text end

new text begin (e) The governor must make initial appointments to the council by November 15,
2016, and the chair must convene the first meeting of the council by December 15, 2016.
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