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Capital IconMinnesota Legislature

HF 4355

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 04/19/2022 11:29am

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 the Department of
Employment and Economic Development; making policy and technical changes;
requiring reports; amending Minnesota Statutes 2020, sections 116J.552,
subdivision 6; 116J.8747; 116J.8770; 116J.993, subdivision 3; 116L.04, subdivision
1a; 116L.17, subdivision 1; 116L.98, subdivisions 2, 3; Minnesota Statutes 2021
Supplement, sections 116J.8749; 116J.9924, subdivision 4; Laws 2021, First
Special Session chapter 10, article 1, section 2, subdivision 2; Laws 2021, First
Special Session chapter 14, article 11, section 42; proposing coding for new law
in Minnesota Statutes, chapter 116J; repealing Minnesota Statutes 2021 Supplement,
section 116J.9924, subdivision 6.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns under "Appropriations" are added to the appropriations
in Laws 2021, First Special Session chapter 10, 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 figures "2022" and "2023" used in this article
mean that the appropriations listed under them are available for the fiscal year ending June
30, 2022, or June 30, 2023, respectively. Appropriations for the fiscal year ending June 30,
2022, are effective the day following final enactment.
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 2022
new text end
new text begin 2023
new text end

Sec. 2. new text beginDEPARTMENT 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 -0-
new text end
new text begin $
new text end
new text begin 186,750,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin 2021
new text end
new text begin General Fund
new text end
new text begin -0-
new text end
new text begin 161,000,000
new text end
new text begin Workforce
Development
new text end
new text begin -0-
new text end
new text begin 25,750,000
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 -0-
new text end
new text begin 134,300,000
new text end

new text begin (a) $20,000,000 in fiscal year 2023 is for the
main street economic revitalization program
under Minnesota Statutes, section 116J.8749.
This is a onetime appropriation and is
available until June 30, 2025.
new text end

new text begin (b) $45,000,000 in fiscal year 2023 is for
deposit in the spark small business loan
program account under Minnesota Statutes,
section 116J.9926. Of this amount,
$10,000,000 is for loans to community
businesses as defined in Minnesota Statutes,
section 116J.8751. Beginning in fiscal year
2024, the base amount is $3,000,000.
new text end

new text begin (c) $20,000,000 in fiscal year 2023 is for
deposit in the emerging developer fund
account in the special revenue fund. Of this
amount, up to five percent is for the
administration and monitoring of the emerging
developer fund program under Minnesota
Statutes, section 116J.9926. Beginning in
fiscal year 2024, the base amount is
$1,000,000.
new text end

new text begin (d) $7,500,000 in fiscal year 2023 is for the
Canadian border counties economic relief
program. This is a onetime appropriation.
new text end

new text begin (e) $35,000,000 in fiscal year 2023 is for the
small business recovery grant program. This
is a onetime appropriation and is available
until June 30, 2024.
new text end

new text begin (f) $800,000 in fiscal year 2023 is 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 end

new text begin (g) $1,000,000 in fiscal year 2023 is for Join
Us Minnesota campaign to market the state of
Minnesota to businesses and potential workers.
This appropriation is available until June 30,
2024. Of this amount, up to five percent is for
administration and monitoring of the program.
Beginning in fiscal year 2024, the base amount
is $500,000.
new text end

new text begin (h) $2,000,000 in fiscal year 2023 is for a
grant to the Center for Economic Inclusion for
strategic, data-informed investments in job
creation strategies that respond to the needs
of underserved populations statewide. This
may include pay-for-performance contracts
with nonprofit organizations to provide
outreach, training, and support services for
dislocated and chronically underemployed
people, as well as forgivable loans,
revenue-based financing, and equity
investments for entrepreneurs with barriers to
growth. Of this amount, up to ten percent may
be used for the center's technical assistance
and administrative costs. This is a onetime
appropriation.
new text end

new text begin (i)(1) $1,000,000 in fiscal year 2023 is for a
grant to the Coalition of Asian American
Leaders to address employment and economic
disparities for Asian Minnesotan communities
in response to the COVID-19 pandemic and
incidents of bias by conducting and
disseminating research and by providing
grants, outreach, and technical assistance to
Asian Minnesotan individuals, small
businesses, and nonprofit organizations to
navigate state programs and grants related to
COVID-19 pandemic health and economic
recovery challenges. This is a onetime
appropriation and is available until December
31, 2024.
new text end

new text begin (2) The Coalition of Asian American Leaders
must issue a report on the outcomes of the
grant to the commissioner of employment and
economic development by December 15, 2024.
new text end

new text begin (j) $2,000,000 in fiscal year 2023 is for a grant
to Women's Foundation of Minnesota to invest
in economic structures that educate, mobilize,
and equip Black women with the necessary
tools to build, retain, and strengthen the
capacity to build generational wealth. This is
a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Employment and Training Programs
new text end

new text begin -0-
new text end
new text begin 52,450,000
new text end
new text begin Appropriations by Fund
new text end
new text begin General Fund
new text end
new text begin -0-
new text end
new text begin 26,700,000
new text end
new text begin Workforce
Development Fund
new text end
new text begin -0-
new text end
new text begin 25,750,000
new text end

new text begin (a) $1,000,000 in fiscal year 2023 is for grants
to organizations providing support services to
new Americans in order to facilitate successful
community integration and entry into the
workforce. Services may include case
management, job training and employment
services, education programs, and legal
services. Of this amount:
new text end

new text begin (1) $325,000 is for a grant to the International
Institute of Minnesota;
new text end

new text begin (2) $325,000 is for a grant to the Minnesota
Council of Churches;
new text end

new text begin (3) $223,000 is for a grant to Arrive
Ministries; and
new text end

new text begin (4) $127,000 is for a grant to Catholic
Charities of the Diocese of Winona, Inc.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin (b) $750,000 in fiscal year 2023 is from the
workforce development fund for a grant to the
Minneapolis Park and Recreation Board's Teen
Teamworks youth employment and training
programs. This is a onetime appropriation and
is available until spent.
new text end

new text begin (c)(1) $20,000,000 in fiscal year 2023 is from
the workforce development fund for grants to
Minnesota's 16 local workforce development
boards for strategies identified in local
Workforce Innovation and Opportunity Act
plans to address Minnesota's current workforce
shortages by supporting training for
unemployed and underemployed Minnesotans
and the earning of industry-recognized
credentials to equip workers with in-demand
skills. Allowable uses of money include but
are not limited to helping job seekers prepare
for and find jobs, providing services to
employers, supporting CareerForce locations,
and conducting marketing and outreach for
CareerForce services. Grant money must not
be used for administrative costs. Grants shall
be distributed consistent with the distribution
and utilization of money under federal
legislation regarding job training and related
services. This is a onetime appropriation and
is available until expended.
new text end

new text begin (2) By January 15 of each year that grant
money is used, beginning in 2023, all grant
recipients shall submit a report to the
governor's Workforce Development Board
that details the use of grant money, including
the number of businesses, job seekers, and
other stakeholders served.
new text end

new text begin (d) $5,000,000 in fiscal year 2023 is from the
workforce development fund for a youth
technology competitive training grant program
to prepare people who are Black, Indigenous,
people of color, or women to meet the growing
labor needs in Minnesota's technology
industry. This is a onetime appropriation and
money is available until June 30, 2024. Of this
amount, up to five percent is for administration
and monitoring of the program. Grant money
must be used to:
new text end

new text begin (1) provide career education, wraparound
support services, and job skills training for
high school aged youth in the technology
industry;
new text end

new text begin (2) increase the number of summer internship
opportunities in the technology industry;
new text end

new text begin (3) support outreach activities to businesses
and create pathways for employment and
internships for youth in the technology
industry; and
new text end

new text begin (4) increase the number of young adults
employed in the technology industry and
ensure that they reflect Minnesota's diverse
workforce.
new text end

new text begin Programs and services supported by grant
money must give priority to individuals and
groups that are economically disadvantaged
or historically underrepresented in the
technology industry, including but not limited
to women, veterans, and members of minority
and immigrant groups.
new text end

new text begin (e) $470,000 in fiscal year 2023 is for
activities associated with the Office for New
Americans in Minnesota Statutes, section
116J.4231. Beginning in fiscal year 2024, the
base amount is $500,000.
new text end

new text begin (f) $25,230,000 in fiscal year 2023 is for the
targeted community capital project grant
program under Minnesota Statutes, section
116J.9924. This is a onetime appropriation.
new text end

Sec. 3.

Laws 2021, First Special Session chapter 10, article 1, section 2, subdivision 2, is
amended to read:


Subd. 2.

Business and Community Development

208,015,000
deleted text begin 44,741,000
deleted text end new text begin 58,741,000
new text end
Appropriations by Fund
General
205,215,000
deleted text begin 41,941,000
deleted text end new text begin 55,941,000
new text end
Remediation
700,000
700,000
Workforce
Development
2,100,000
2,100,000

(a) $1,787,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until June 30, 2025.

(b) $8,425,000 in the first year and deleted text begin$1,425,000deleted text endnew text begin
$6,425,000
new text end in the second year are for the new text begin
small business partnership grant program
formerly known as the
new text endbusiness development
competitive grant program. Of this amount,
up to five percent is for administration and
monitoring of the deleted text beginbusiness development
competitive grant
deleted text end program and $7,000,000 in
the first year deleted text beginisdeleted text endnew text begin and $5,000,000 in the second
year are
new text end for technical assistance to small
businesses. new text beginFunding for technical assistance
to small businesses in the second year shall
be divided proportionately between program
grantees from the first year.
new text endExcept for awards
for technical assistance for small businesses,
all grant awards shall be for two consecutive
yearsdeleted text begin. Grantsdeleted text endnew text begin andnew text end shall be awarded in the first
year.new text begin The small business partnership grant
program shall also provide business
development assistance and services to
commercial cooperatives, employee-owned
businesses, and commercial land trusts.
Beginning in fiscal year 2024, the base amount
is $4,925,000 of which $1,500,000 is for
technical assistance to small businesses
participating in the spark small business loan
program under Minnesota Statutes, section
116J.8751.
new text end

(c) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.

(d) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.

(e) $139,000 each year is for the Center for
Rural Policy and Development.

(f) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

(g) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.

(h)(1) $2,500,000 deleted text begineach year isdeleted text endnew text begin the first year
and $6,500,000 the second year are
new text end for grants
to local communities to increase the number
of quality child care providers to support
economic development. This appropriation is
available through June 30, 2023. Fifty percent
of grant funds must go to communities located
outside the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2. In fiscal year 2024
and beyond, the base amount is $1,500,000.

(2) Grant recipients must obtain a 50 percent
nonstate match to grant funds in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
funds available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.

(3) Within one year of receiving grant funds,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of cash and in-kind local funds
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.

(i) $1,500,000 each year is for a grant to the
Minnesota Initiative Foundations. This
appropriation is available until June 30, 2025.
In fiscal year 2024 and beyond, the base
amount is $1,000,000. The Minnesota
Initiative Foundations must use grant funds
under this section to:

(1) facilitate planning processes for rural
communities resulting in a community solution
action plan that guides decision making to
sustain and increase the supply of quality child
care in the region to support economic
development;

(2) engage the private sector to invest local
resources to support the community solution
action plan and ensure quality child care is a
vital component of additional regional
economic development planning processes;

(3) provide locally based training and technical
assistance to rural child care business owners
individually or through a learning cohort.
Access to financial and business development
assistance must prepare child care businesses
for quality engagement and improvement by
stabilizing operations, leveraging funding from
other sources, and fostering business acumen
that allows child care businesses to plan for
and afford the cost of providing quality child
care; and

(4) recruit child care programs to participate
in quality rating and improvement
measurement programs. The Minnesota
Initiative Foundations must work with local
partners to provide low-cost training,
professional development opportunities, and
continuing education curricula. The Minnesota
Initiative Foundations must fund, through local
partners, an enhanced level of coaching to
rural child care providers to obtain a quality
rating through measurement programs.

new text begin The Minnesota Initiative Foundations are
authorized to subgrant their allocation to
partner organizations who are assisting in their
child care work.
new text end

(j) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended.

(k) $10,029,000 the first year and $10,028,000
the second year are for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administration and monitoring of the program.
In fiscal year 2024 and beyond, the base
amount is $12,370,000. This appropriation is
available until expended. Notwithstanding
Minnesota Statutes, section 116J.8731, money
appropriated to the commissioner for the
Minnesota investment fund may be used for
the redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner. Grants
under this paragraph are not subject to the
grant amount limitation under Minnesota
Statutes, section 116J.8731.

(l) deleted text begin$0 eachdeleted text endnew text begin $5,000,000 in the secondnew text end year is
for the redevelopment program under
Minnesota Statutes, sections deleted text begin116J.575deleted text end
new text begin 116J.571new text end
and 116J.5761. new text beginThis appropriation
is available until spent.
new text end In fiscal year 2024 and
beyond, the base amount is deleted text begin$2,246,000deleted text endnew text begin
$3,496,000
new text end.

new text begin (2) For funding in fiscal year 2023, the
commissioner shall prioritize applications
from development authorities located in
low-income areas, defined as:
new text end

new text begin (i) a census tract that has a poverty rate of at
least 20 percent, as reported by the United
States Bureau of the Census in the most recent
American Community Survey;
new text end

new text begin (ii) a qualified census tract, as defined under
United States Code, title 26, section 42; or
new text end

new text begin (iii) a census tract, city, township, or county
in which ten percent of the population have
an annual income of 200 percent or less of the
federal poverty level.
new text end

new text begin (3) Notwithstanding any other law to the
contrary, no local matching funds are required
from development authorities located in
low-income areas in fiscal year 2023 and state
funds may be used for 100 percent of the cost
of the projects.
new text end

(m) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.

(n) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation in each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.

(o) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(p) $500,000 each year is for a grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2025.

(q) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.

(r) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.

(s) $2,500,000 each year is for Launch
Minnesota. This appropriation is available
until June 30, 2025. The base in fiscal year
2026 is $0. Of this amount:

(1) $1,500,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs;

(2) $500,000 each year is for administration
of Launch Minnesota; and

(3) $500,000 each year is for grantee activities
at Launch Minnesota.

(t) $1,148,000 the first year is for a grant to
the Northeast Entrepreneur Fund, a small
business administration microlender and
community development financial institution
operating in northern Minnesota. Grant funds
must be used as capital for accessing
additional federal lending for small businesses
impacted by COVID-19 and must be returned
to the commissioner for deposit in the general
fund if the Northeast Entrepreneur Fund fails
to secure such federal funds before January 1,
2022.

(u) $80,000,000 the first year is for the Main
Street Economic Revitalization Loan Program.
Of this amount, up to $300,000 is for the
commissioner's administration and monitoring
of the program. This appropriation is available
until June 30, 2025.

(v) $70,000,000 the first year is for the Main
Street COVID-19 Relief Grant Program. Of
this amount, up to:

(1) $34,950,000 is for grants to the Minnesota
Initiative Foundations to serve businesses
outside of the metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2
;

(2) $34,950,000 is for grants to partner
organizations to serve businesses inside the
metropolitan area as defined in Minnesota
Statutes, section 473.121, subdivision 2; and

(3) $100,000 is for the commissioner's
administration and monitoring of the program.

(w) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.

(x) $500,000 each year is for the airport
infrastructure renewal (AIR) grant program
under Minnesota Statutes, section 116J.439.
In awarding grants with this appropriation, the
commissioner must prioritize eligible
applicants that did not receive a grant pursuant
to the appropriation in Laws 2019, First
Special Session chapter 7, article 1, section 2,
subdivision 2, paragraph (q).

(y) $750,000 each year is from the workforce
development fund for grants to the
Neighborhood Development Center for small
business programs, including:

(1) training, lending, and business services;

(2) model outreach and training in greater
Minnesota; and

(3) development of new business incubators.

This is a onetime appropriation.

(z) $5,000,000 in the first year is for a grant
to Lake of the Woods County for the
forgivable loan program for remote
recreational businesses. This appropriation is
available until April 1, 2022.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Laws 2021, First Special Session chapter 14, article 11, section 42, is amended to
read:


Sec. 42. APPROPRIATION; MEAT PROCESSING BUSINESSES IN
REDEVELOPMENT AREA.

Of an appropriation in fiscal year 2022 for the targeted community capital project grant
program under Minnesota Statutes, section 116J.9924, the commissioner of employment
and economic development must grant $6,000,000 deleted text beginfor one or more grants to any business
engaged in the meat processing industry and currently conducting operations in a building
or buildings constructed on or before January 1, 1947, and located in a city of the second
class that was designated as a redevelopment area by the United States Department of
Commerce under the Public Works and Economic Development Act of 1965, Public Law
89-136, title IV, section 401(a)(4). This appropriation includes: site acquisition costs;
relocation costs; predesign; design; sewer, water, and stormwater infrastructure; site
preparation; engineering; and the cost of improvements to real property locally zoned to
allow a meat processing land use that are incurred by any qualified business under this
section. A grantee under this section must work in consultation with a local government
unit with jurisdiction over the area where the property is located on activities funded by the
grant. This is a onetime appropriation. A grant issued under this section is not subject to
the grant requirements under Minnesota Statutes, section 116J.9924.
deleted text endnew text begin to the city of South
St. Paul for economic development, redevelopment, and job creation and retention programs
and projects. This grant is not subject to the requirements under Minnesota Statutes, chapter
116J.
new text end

Sec. 5. new text beginCANCELLATION AND APPROPRIATION.
new text end

new text begin (a) All unspent money, estimated to be $889,000, appropriated under Laws 2015, First
Special Session chapter 1, article 1, section 2, subdivision 2, paragraphs (k) and (l), is
canceled to the general fund.
new text end

new text begin (b) All money canceled under paragraph (a) is appropriated in fiscal year 2023 to the
commissioner of employment and economic development for the targeted community capital
project grant program under Minnesota Statutes, section 116J.9924. This is a onetime
appropriation.
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

ECONOMIC DEVELOPMENT POLICY

Section 1.

new text begin [116J.015] EXPIRATION OF REPORT MANDATES.
new text end

new text begin (a) If the submission of a report by the commissioner of employment and economic
development to the legislature is mandated by law and the enabling legislation does not
include a date for the submission of a final report, the mandate to submit the report expires
according to this section.
new text end

new text begin (b) If the mandate requires the submission of an annual report and the mandate was
enacted before January 1, 2021, the mandate expires January 1, 2023. If the mandate requires
the submission of a biennial or less frequent report and the mandate was enacted before
January 1, 2021, the mandate expires January 1, 2024.
new text end

new text begin (c) Any reporting mandate enacted on or after January 1, 2021, expires three years after
the date of enactment if the mandate requires the submission of an annual report and expires
five years after the date of enactment if the mandate requires the submission of a biennial
or less frequent report unless the enacting legislation provides for a different expiration
date.
new text end

new text begin (d) The commissioner shall submit to the chairs and ranking minority members of the
legislative committees with jurisdiction over employment and economic development by
February 15 of each year, beginning February 15, 2022, a list of all reports set to expire
during the following calendar year according to this section.
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. 2.

new text begin [116J.4231] OFFICE OF NEW AMERICANS.
new text end

new text begin Subdivision 1. new text end

new text begin Office established; purpose. new text end

new text begin (a) The Office of New Americans is
established within the Department of Employment and Economic Development. The governor
must appoint an executive director who serves in the unclassified service. The executive
director must hire a program manager and an office assistant, as well as any staff necessary
to carry out the office's duties under subdivision 2.
new text end

new text begin (b) The purpose of the office is to serve immigrants and refugees in Minnesota by:
new text end

new text begin (1) addressing challenges that face immigrants and refugees in Minnesota, and creating
access in economic development and workforce programs and services;
new text end

new text begin (2) providing interstate agency coordination, policy reviews, and guidance that assist in
creating access to immigrants and refugees.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin (a) The office has the duty to:
new text end

new text begin (1) create and implement a statewide strategy to support immigrant and refugee integration
into Minnesota communities;
new text end

new text begin (2) address the state's workforce needs by connecting employers and job seekers within
the immigrant and refugee community;
new text end

new text begin (3) identify strategies to reduce employment barriers for immigrants and refugees;
new text end

new text begin (4) ensure equitable opportunities and access to services within state government for
immigrants and refugees;
new text end

new text begin (5) work with state agencies and community and foundation partners to undertake studies
and research and analyze economic and demographic trends to better understand and serve
the state's immigrant and refugee communities;
new text end

new text begin (6) coordinate and establish best practices for language access initiatives to all state
agencies;
new text end

new text begin (7) convene stakeholders and make policy recommendations to the governor on issues
impacting immigrants and refugees;
new text end

new text begin (8) promulgate rules necessary to implement and effectuate this section;
new text end

new text begin (9) provide an annual report, as required by subdivision 3;
new text end

new text begin (10) perform any other activities consistent with the office's purpose.
new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2024, and each year thereafter, the Office
of New Americans shall report to the legislative committees with jurisdiction over the
office's activities during the previous year.
new text end

new text begin (b) The report shall contain, at a minimum:
new text end

new text begin (1) a summary of the office's activities;
new text end

new text begin (2) suggested policies, incentives, and legislation designed to accelerate the achievement
of the duties under subdivision 2;
new text end

new text begin (3) any proposed legislative and policy initiatives;
new text end

new text begin (4) the amount and types of grants awarded under subdivision 6; and
new text end

new text begin (5) any other information deemed necessary and requested by the legislative committees
with jurisdiction over the office.
new text end

new text begin (c) The report may be submitted electronically and is subject to section 3.195, subdivision
1.
new text end

new text begin Subd. 4. new text end

new text begin Interdepartmental Coordinating Council on Immigrant and Refugee
Affairs.
new text end

new text begin (a) An interdepartmental Coordinating Council on Immigrant and Refugee Affairs
is established to advise the Office of New Americans.
new text end

new text begin (b) The purpose of the council is to identify and establish ways in which state departments
and agencies can work together to deliver state programs and services effectively and
efficiently to Minnesota's immigrant and refugee populations. The council shall implement
policies, procedures, and programs requested by the governor through the state departments
and offices.
new text end

new text begin (c) The council shall be chaired by the executive director of the Office of New Americans
and shall be comprised of the commissioners, department directors, or designees, from the
following state departments and offices:
new text end

new text begin (1) the governor's office;
new text end

new text begin (2) the Department of Administration;
new text end

new text begin (3) the Department of Employment and Economic Development;
new text end

new text begin (4) the Department of Human Services;
new text end

new text begin (5) the Department of Human Services Resettlement Program Office;
new text end

new text begin (6) the Department of Labor and Industry;
new text end

new text begin (7) the Department of Health;
new text end

new text begin (8) the Department of Education;
new text end

new text begin (9) the Office of Higher Education;
new text end

new text begin (10) the Department of Public Safety;
new text end

new text begin (11) the Department of Corrections; and
new text end

new text begin (12) the Office of New Americans.
new text end

new text begin (d) Each department or office serving as a member of the council shall designate one
staff member as an immigrant and refugee services liaison. The liaisons' responsibilities
shall include:
new text end

new text begin (1) preparation and dissemination of information and services available to immigrants
and refugees;
new text end

new text begin (2) interfacing with the Office of New Americans on issues that impact immigrants and
refugees and their communities; and
new text end

new text begin (3) where applicable, serving as the point of contact for immigrants and refugees accessing
resources both within the department and with boards charged with oversight of a profession.
new text end

new text begin Subd. 5. new text end

new text begin No right of action. new text end

new text begin Nothing in this section shall be construed to create any
right or benefit, substantive or procedural, enforceable at law or in equity by any party
against the state; its departments, agencies, or entities; its officers, employees, or agents;
or any other person.
new text end

new text begin Subd. 6. new text end

new text begin Grants. new text end

new text begin Within the limits of available appropriations, the office may apply for
grants for interested state agencies, community partners, and stakeholders under this section
to carry out the duties under subdivision 2.
new text end

Sec. 3.

Minnesota Statutes 2020, section 116J.552, subdivision 6, is amended to read:


Subd. 6.

Municipality.

"Municipality" means the statutory or home rule charter city,
town,new text begin federally recognized Tribe,new text end or, in the case of unorganized territory, the county in
which the site is located.

Sec. 4.

Minnesota Statutes 2020, section 116J.8747, is amended to read:


116J.8747 JOB TRAINING PROGRAM GRANT.

Subdivision 1.

Grant allowed.

The commissioner may provide a grant to a qualified
job training program from money appropriated for the purposes of this section as follows:

deleted text begin (1) an $11,000 placement grant paid to a job training program upon placement in
employment of a qualified graduate of the program; and
deleted text end

deleted text begin (2) an $11,000 retention grant paid to a job training program upon retention in
employment of a qualified graduate of the program for at least one year.
deleted text end

new text begin (1) up to ten percent of the appropriation may be allocated for administrative expenses
by the program;
new text end

new text begin (2) up to 20 percent of the appropriation may be allocated for direct service expenses
by the program;
new text end

new text begin (3) a placement grant paid to a job training program upon placement in employment of
a qualified graduate of the job training program as follows:
new text end

new text begin (i) $2,500 for placement in part-time employment (20 hours a week or more) of at least
150 percent of the state minimum wage hourly;
new text end

new text begin (ii) $2,500 for placement in full-time employment (32 hours a week or more) at the state
minimum wage but below 150 percent of the state minimum wage hourly; and
new text end

new text begin (iii) $5,000 for placement in full-time employment (32 hours a week or more) of at least
150 percent of the state minimum wage hourly; and
new text end

new text begin (4) a retention grant paid to a job training program upon retention in employment of a
qualified graduate of the job training program for at least one year as follows:
new text end

new text begin (i) $5,000 for one year of retained part-time employment (20 hours a week or more) of
at least 150 percent of the state minimum wage;
new text end

new text begin (ii) $5,000 for one year of retained full-time employment (32 hours a week or more) at
the state minimum wage but below 150 percent of the state minimum wage; and
new text end

new text begin (iii) $10,000 for one year of retained full-time employment (32 hours a week or more)
of at least 150 percent of the state minimum wage hourly.
new text end

Subd. 2.

Qualified job training program.

To qualify for grants under this section, a
job training program must satisfy the following requirements:

(1) the program must be operated by a nonprofit corporation that qualifies under section
501(c)(3) of the Internal Revenue Code;

(2) the program may spend up to $5,500 in total training per participant;

(3) the program must provide education and training in:

(i) basic skills, such as reading, writing, financial literacy, digital literacy, mathematics,
and communications;

(ii) long-term plans for success including participant coaching for two years after
placement;

(iii) soft skills, including skills critical to success on the job; and

(iv) access to internships, technology training, personal and emotional intelligence skill
development, and other support services;

(4) the program may provide deleted text beginincome supplements not to exceed $2,000 per participantdeleted text endnew text begin
support services
new text end, when needed, to participants for housing, counseling, tuition, and other
basic needs;

(5) individuals served by the program must be 18 years of age or older as of the date of
enrollment, and have household income in the six months immediately before entering the
program that is 200 percent or less of the federal poverty guideline for Minnesota, based
on family size; and

(6) the program must be certified by the commissioner of employment and economic
developmentnew text begin, or the commissioner's designee,new text end as meeting the requirements of this subdivision.

Subd. 3.

deleted text beginGraduation and retention grantdeleted text endnew text begin Employmentnew text end requirements.

deleted text begin For purposes
of a placement grant under this section, a qualified graduate is a graduate of a job training
program qualifying under subdivision 2 who is placed in a job in Minnesota that pays at
least the current state minimum wage. To qualify for a retention grant under this section for
a retention fee, a job in which the graduate is retained must pay at least the current state
minimum wage.
deleted text end new text begin (a) For employment to qualify under subdivision 1, the employment must
be permanent, unsubsidized, private or public sector employment, eligible for unemployment
insurance under section 268.035, or otherwise eligible for unemployment insurance under
section 268.035 if hours were above 32 per week.
new text end

new text begin (b) Programs are limited to one placement and one retention payment for a qualified
graduate in a performance program within the two years following a placement or retention
payment made under this section.
new text end

Subd. 4.

Duties of program.

(a) A program certified by the commissioner under
subdivision 2 must comply with the requirements of this subdivision.

(b) A program must maintain new text beginand provide upon request new text endrecords for each qualified graduate
new text begin in compliance with state record retention requirementsnew text end. The records must include information
sufficient to verify the graduate's eligibility under this section, identify the employer, and
describe the job including its compensation rate deleted text beginanddeleted text endnew text begin,new text end benefitsnew text begin, and average hours per weeknew text end.

(c) A program is subject to the reporting requirements under section 116L.98.

Sec. 5.

Minnesota Statutes 2021 Supplement, section 116J.8749, is amended to read:


116J.8749 MAIN STREET ECONOMIC REVITALIZATION PROGRAM.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Borrower" means an eligible recipient receiving a loan guaranteednew text begin or capitalized new text end
under this section.

new text begin (c) "Capitalized loan" means a loan for which the state provides up to 20 percent of the
loan funding with the state funds payment subordinate in the event of default.
new text end

deleted text begin (c)deleted text endnew text begin (d)new text end "Commissioner" means the commissioner of employment and economic
development.

deleted text begin (d)deleted text endnew text begin (e)new text end "Eligible project" means the development, redevelopment, demolition, site
preparation, predesign, design, engineering, repair, or renovation of real property or capital
improvements. Eligible projects must be designed to address the greatest economic
development and redevelopment needs that have arisen in the community surrounding that
real property since March 15, 2020. Eligible project includes but is not limited to the
construction of buildings, infrastructure, and related site amenities, landscaping, or
street-scaping. Eligible project does not include the purchase of real estate or business
operations or business operating expenses, such as inventory, wages, or working capital.

deleted text begin (e)deleted text endnew text begin (f)new text end "Eligible recipient" means a:

(1) business;

(2) nonprofit organization; or

(3) developer

that is seeking funding to complete an eligible project. Eligible recipient does not include
a partner organization or a local unit of government.

deleted text begin (f)deleted text endnew text begin (g)new text end "Guaranteed loan" means a loan guaranteed by the state for 80 percent of the loan
amount for a maximum period of 15 years from the origination of the loan.

deleted text begin (g)deleted text endnew text begin (h)new text end "Leveraged grant" means a grant that is matched by the eligible recipient's
commitment to the eligible project of nonstate funds at a level of 200 percent of the grant
amount. The nonstate match may include but is not limited to funds contributed by a partner
organization and insurance proceeds.

deleted text begin (h)deleted text endnew text begin (i)new text end "Loan guarantee trust fund" means a dedicated account established under this
section for the purpose of compensation for defaulted loan guarantees.

new text begin (j) "Low-income area" means a census tract that has a poverty rate of at least 20 percent
as reported in the most recently completed decennial census published by the United States
Bureau of the Census.
new text end

deleted text begin (i)deleted text endnew text begin (k)new text end "Partner organizations" or "partners" means:

(1) foundations engaged in economic development;

(2) community development financial institutions; and

(3) community development corporations.

deleted text begin (j)deleted text endnew text begin (l)new text end "Program" means the Main Street Economic Revitalization Program under this
section.

deleted text begin (k)deleted text endnew text begin (m)new text end "Subordinated loan" means a loan secured by a lien that is lower in priority than
one or more specified other liens.

Subd. 2.

Establishment.

The commissioner shall establish the Main Street Economic
Revitalization Program to make grants to partner organizations to fund leveraged grantsnew text begin,
capitalized loans,
new text end and guaranteed loans to specific named eligible recipients for eligible
projects that are designed to address the greatest economic development and redevelopment
needs that have arisen in the surrounding community since March 15, 2020.

Subd. 3.

Grants to partner organizations.

(a) The commissioner shall make grants to
partner organizations to provide leveraged grantsnew text begin, capitalized loans,new text end and guaranteed loans
to eligible recipients using criteria, forms, applications, and reporting requirements developed
by the commissioner.

(b) To be eligible for a grant, a partner organization must:

(1) outline a plan to provide leveraged grantsnew text begin, capitalized loans,new text end and guaranteed loans
to eligible recipients for specific eligible projects that represent the greatest economic
development and redevelopment needs in the surrounding community. This plan must
include an analysis of the economic impact of the eligible projects the partner organization
proposes to make these investments in;

(2) establish a process of ensuring there are no conflicts of interest in determining awards
under the program; and

(3) demonstrate that the partner organization has raised funds for the specific purposes
of this program to commit to the proposed eligible projects or will do so within the 15-month
period following the encumbrance of funds. Existing assets and state or federal funds may
not be used to meet this requirement.

(c) Grants shall be made in up to three rounds:

(1) a first round with an application date before September 1, 2021, during which no
more than 50 percent of available funds will be granted;

(2) a second round with an application date after September 1, 2021, but before March
1, 2022; and

(3) a third round with an application date after June 30, 2023, if any funds remain after
the first two rounds.

A partner may apply in multiple rounds for projects that were not funded in earlier rounds
or for new projects.

(d) Up to four percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program.

Subd. 4.

Award criteria.

In awarding grants under this section, the commissioner shall
give funding preference to applications that:

(1) have the greatest regional economic impact under subdivision 3, paragraph (b), clause
(1), particularly with regard to increasing the local tax base; and

(2) have the greatest portion of the estimated cost of the eligible projects met through
nonstate funds.

Subd. 5.

Leveraged grants to eligible recipients.

(a) A leveraged grant to an eligible
recipient shall be for no more than $750,000.

(b) A leveraged grant may be used to finance no more than 30 percent of an eligible
project.

(c) An eligible project must have secured commitments for all required matching funds
and all required development approvals before a leveraged grant may be distributed.

new text begin (d) The commissioner may waive the matching fund requirement for projects located
in low-income areas.
new text end

Subd. 6.

new text beginCapitalized and new text endguaranteed loans to eligible recipients.

(a) A new text begincapitalized or
new text end guaranteed loan to an eligible recipient must:

(1) be for no more than $2,000,000;new text begin and
new text end

(2) be for a term of no more than 15 yearsdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (3)deleted text end new text begin(b) All capitalized loans shall comply with the terms under subdivision 6a and all
guaranteed loans shall
new text endcomply with the terms under subdivision 7.

deleted text begin (b)deleted text endnew text begin (c)new text end An eligible project must have all required development approvals before a
new text begin capitalized or new text endguaranteed loan may be distributed.

new text begin (d) Upon origination of a capitalized loan, the commissioner shall authorize disbursement
of up to 20 percent of the loan amount to the partner organization.
new text end

deleted text begin (c)deleted text endnew text begin (e)new text end Upon origination of a guaranteed loan, the commissioner must reserve ten percent
of the loan amount into the loan guarantee trust fund created under subdivision 8.

deleted text begin (d)deleted text endnew text begin (f)new text end No new text begincapitalized or new text endguaranteed loan may be made to an eligible recipient after
December 31, 2024.

new text begin Subd. 6a. new text end

new text begin Required terms for capitalized loans. new text end

new text begin For a capitalized loan under the
program:
new text end

new text begin (1) principal and interest payments made by the borrower under the terms of the loan
shall be allocated first to the nonstate portion of the loan and second to the state portion of
the loan;
new text end

new text begin (2) the partner organization shall not accelerate repayment of the loan or exercise other
remedies if the borrower defaults, unless:
new text end

new text begin (i) the borrower fails to make a required payment of principal or interest within 60 days
of the due date; or
new text end

new text begin (ii) the commissioner consents in writing;
new text end

new text begin (3) the partner organization must timely prepare and deliver to the commissioner, annually
by the date specified in the loan agreement, an audited or reviewed financial statement for
the loan, prepared by a certified public accountant according to generally accepted accounting
principles, if available, and documentation that the borrower used the loan proceeds solely
for an eligible project;
new text end

new text begin (4) the commissioner shall have access to loan documents at any time subsequent to the
loan documents being submitted to the partner organization;
new text end

new text begin (5) the partner organization must maintain adequate records and documents concerning
the loan so that the commissioner may determine the borrower's financial condition and
compliance with program requirements;
new text end

new text begin (6) the state portion of the loan may be subordinate to other loans made by lenders in
the overall financing package; and
new text end

new text begin (7) repayments of the state portion of the loan may be retained by the partner organization
for capitalizing additional redevelopment projects.
new text end

Subd. 7.

Required terms for guaranteed loans.

For a guaranteed loan under the
program:

(1) principal and interest payments made by the borrower under the terms of the loan
are to reduce the guaranteed and nonguaranteed portion of the loan on a proportionate basis.
The nonguaranteed portion shall not receive preferential treatment over the guaranteed
portion;

(2) the partner organization shall not accelerate repayment of the loan or exercise other
remedies if the borrower defaults, unless:

(i) the borrower fails to make a required payment of principal or interest within 60 days
of the due date; or

(ii) the commissioner consents in writing;

(3) in the event of a default, the partner organization may not make a demand for payment
pursuant to the guarantee unless the commissioner agrees in writing that the default has
materially affected the rights or security of the parties;

(4) the partner organization must timely prepare and deliver to the commissioner, annually
by the date specified in the loan guarantee, an audited or reviewed financial statement for
the loan, prepared by a certified public accountant according to generally accepted accounting
principles, if available, and documentation that the borrower used the loan proceeds solely
for an eligible project;

(5) the commissioner shall have access to loan documents at any time subsequent to the
loan documents being submitted to the partner organization;

(6) the partner organization must maintain adequate records and documents concerning
the loan so that the commissioner may determine the borrower's financial condition and
compliance with program requirements;

(7) orderly liquidation of collateral securing the loan must be provided for in the event
of default, pursuant to the loan guarantee; and

(8) the guaranteed portion of the loan may be subordinate to other loans made by lenders
in the overall financing package.

Subd. 8.

Loan guarantee trust fund established.

A loan guarantee trust fund account
in the special revenue fund is created in the state treasury to pay for defaulted loan guarantees.
The commissioner shall administer this account. The day that this section expires, all
remaining funds in the account are canceled to the general fund.

Subd. 9.

Statewide program.

In proportion to eligible demand, leveraged grantsnew text begin,
capitalized loans,
new text end and guaranteed loans under this section shall be made so that an
approximately equal dollar amount of leveraged grantsnew text begin, capitalized loans,new text end and guaranteed
loans are made to businesses in the metropolitan area as in the nonmetropolitan area, not
to exceed 65 percent in any one area. After June 30, 2023, the department may allow
leveraged grantsnew text begin, capitalized loans,new text end and guaranteed loans to be made anywhere in the state
without regard to geographic area.

Subd. 10.

Exemptions.

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 commissioner must audit the use of funds under this section
in accordance with standard accounting practices. The exemptions under this subdivision
expire on December 31, 2023.

Subd. 11.

Reports.

(a) By January 31, 2022, and annually until December 31, 2026,
after which biennial reporting will be permitted after the commissioner consults with the
legislature, partner organizations participating in the program must provide a report to the
commissioner that includes descriptions of the eligible projects supported by the program,
the type and amount of support provided, any economic development gains attributable to
the support, and an explanation of administrative expenses.

(b) By February 15, 2022, and annually until December 31, 2026, after which biennial
reporting will be permitted after the commissioner consults with the legislature, the
commissioner must report to the legislative committees in the house of representatives and
senate with jurisdiction over economic development about funding provided under this
program based on the information received under paragraph (a) and about the performance
of the loan guarantee trust fund.

Subd. 12.

Expiration.

This section expires December 31, 2036.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2021.
new text end

Sec. 6.

new text begin [116J.8751] SPARK SMALL BUSINESS LOAN PROGRAM.
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 following terms have
the meanings given.
new text end

new text begin (b) "Account" means the spark small business loan program account created under
subdivision 5.
new text end

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

new text begin (d) "Community business" means a cooperative, an employee-owned business, or a
commercial land trust that is at least 51 percent owned by individuals from targeted groups.
new text end

new text begin (e) "Immigrant" means a lawful permanent resident who has been in the United States
for a maximum of seven years at the time of application.
new text end

new text begin (f) "Partner organization" means a community development financial institution or
nonprofit corporation.
new text end

new text begin (g) "Program" means the spark small business loan program established under this
section.
new text end

new text begin (h) "Targeted groups" means people who are Black, Indigenous, People of Color,
immigrants, low income, women, veterans, or people with disabilities.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The spark small business loan program is established to award
grants to partner organizations to fund loans statewide to businesses that employ the
equivalent of 50 full-time workers or less, to encourage private investment, provide jobs,
create and strengthen business enterprises, and promote economic development.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall award grants to
partner organizations through a competitive grant process where applicants apply using a
form designed by the commissioner. In evaluating applications, the commissioner must
consider, among other things, whether the applicant:
new text end

new text begin (1) has a board of directors that includes citizens experienced in business and community
development and creating jobs;
new text end

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

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

new text begin (4) can initiate and implement economic development projects;
new text end

new text begin (5) can establish and administer a revolving loan account or has operated a revolving
loan account; and
new text end

new text begin (6) can work with job referral networks.
new text end

new text begin (b) The commissioner shall ensure that, to the extent there is sufficient eligible demand,
loans are made to businesses inside and outside the metropolitan area, as defined in section
473.121, subdivision 2, in a manner approximating each region's proportion of the state
population. After March 31 of each fiscal year, the commissioner may allow loans to be
made anywhere in the state without regard to geographic area.
new text end

new text begin (c) Partner organizations that receive grants under this subdivision may use up to ten
percent of the award for administrative expenses, including providing specialized technical
and legal assistance, either directly or through partnership with nonprofit organizations, to
businesses eligible to apply for loans under this program.
new text end

new text begin (d) The commissioner shall review existing agreements with partner organizations every
five years and may renew or terminate the agreement based on that review. In making the
review, the commissioner shall consider, among other criteria, the criteria in paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Loans to businesses. new text end

new text begin (a) A partner organization that receives a grant under
subdivision 3 shall establish a plan for making loans to businesses. The plan requires approval
by the commissioner.
new text end

new text begin (b) Under the plan:
new text end

new text begin (1) the partner organization shall establish a commissioner-certified revolving loan fund
for the purpose of making loans to businesses;
new text end

new text begin (2) loans shall be for projects that are unlikely to be undertaken unless a loan is received
under the program;
new text end

new text begin (3) a partner organization may not make a loan to a project in which it has an ownership
interest;
new text end

new text begin (4) the state contribution to each loan shall be no less than $5,000 and no more than:
new text end

new text begin (i) $35,000 if the loan is for a retail development project;
new text end

new text begin (ii) $600,000 if the loan is for a community business; and
new text end

new text begin (iii) $150,000 for all other loans;
new text end

new text begin (5) the interest rate on a loan shall not be higher than the Wall Street Journal prime rate
and may be zero;
new text end

new text begin (6) loans shall be for a maximum term of seven years;
new text end

new text begin (7) the partner organization may charge a loan origination fee of no more than one
percent of the loan value and may retain that origination fee;
new text end

new text begin (8) a loan application given preliminary approval by the partner organization must be
forwarded to the commissioner for final approval;
new text end

new text begin (9) repayments may be deferred for up to one year if justified by the project proposed
and approved by the commissioner;
new text end

new text begin (10) all repayments of interest on loans shall be deposited in the partner organization's
revolving loan fund for use in making further loans consistent with this section;
new text end

new text begin (11) all repayments of loan principal must be paid to the commissioner for deposit in
the spark small business loan program account; and
new text end

new text begin (12) up to ten percent of a loan's principal amount may be forgiven if the commissioner
approves and the borrower has met lender criteria, including being current with all payments.
new text end

new text begin Subd. 5. new text end

new text begin Creation of account. new text end

new text begin A spark small business loan program account is created
in the special revenue fund in the state treasury. Money in the account is appropriated to
the commissioner for the grants under this section. Annually, the commissioner may use
an amount equal to no more than four percent of the value of grants made in the previous
year for the administrative costs of the program. In fiscal year 2023, the commissioner may
use $500,000 for administration. Notwithstanding section 16A.28, money deposited in the
account from any source is available until expended.
new text end

new text begin Subd. 6. new text end

new text begin Reporting requirements. new text end

new text begin (a) A partner organization that receives a grant shall:
new text end

new text begin (1) submit an annual report to the commissioner by February 15 of each year, beginning
in 2024, that includes a description of businesses supported by the program, an account of
loans made during the calendar year, the program's impact on business enterprises and job
creation, the source and amount of money collected and distributed by the program, the
program's assets and liabilities, and an explanation of administrative expenses; and
new text end

new text begin (2) 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 (b) By March 1 of each year, beginning in 2024, the commissioner shall submit a report
to the chairs and ranking minority members of the legislative committees with jurisdiction
over economic development on program outcomes, including copies of all reports and audits
received under paragraph (a).
new text end

Sec. 7.

Minnesota Statutes 2020, section 116J.8770, is amended to read:


116J.8770 EQUITY INVESTMENTS.

The commissioner may invest funds from the capital access account to make equity
investments in deleted text begincommunity developmentdeleted text endnew text begin early stage andnew text end venture capital funds for the purpose
of providing capital for small and emerging businesses. The deleted text begincommunity developmentdeleted text endnew text begin early
stage and
new text end venture capital fund must have experience in equity investments with small
businesses and the ability to raise private capital.

Sec. 8.

Minnesota Statutes 2021 Supplement, section 116J.9924, subdivision 4, is amended
to read:


Subd. 4.

Grant amount; project phasing.

(a) The commissioner shall award grants in
an amount not to exceed deleted text begin$1,500,000deleted text endnew text begin $3,000,000new text end per grant.

(b) A grant awarded under this section must be no less than the amount required to
complete one or more phases of the project, less any nonstate funds already committed for
such activities.

Sec. 9.

new text begin [116J.9926] EMERGING DEVELOPER FUND PROGRAM.
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 following terms have
the meanings given.
new text end

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

new text begin (c) "Disadvantaged community" means a community where the median household
income is less than 80 percent of the area median income.
new text end

new text begin (d) "Eligible project" means a project that is based in Minnesota and meets one or more
of the following criteria:
new text end

new text begin (1) it will stimulate community stabilization or revitalization;
new text end

new text begin (2) it will be located within a census tract identified as a disadvantaged community or
low-income community;
new text end

new text begin (3) it will directly benefit residents of a low-income household;
new text end

new text begin (4) it will increase the supply and improve the condition of affordable housing and
homeownership;
new text end

new text begin (5) it will support the growth needs of new and existing community-based enterprises
that promote economic stability or improve the supply or quality of job opportunities; or
new text end

new text begin (6) it will promote wealth creation, including by being a project in a neighborhood
traditionally not served by real estate developers.
new text end

new text begin (e) "Emerging developer" means a developer who:
new text end

new text begin (1) has limited access to loans from traditional financial institutions; or
new text end

new text begin (2) is a new or smaller developer who has engaged in educational training in real estate
development; and
new text end

new text begin (3) is either a:
new text end

new text begin (i) minority as defined in section 116M.14, subdivision 6;
new text end

new text begin (ii) woman;
new text end

new text begin (iii) person with a disability, as defined in section 116M.14, subdivision 9; or
new text end

new text begin (iv) low-income person.
new text end

new text begin (f) "Low-income person" means a person who:
new text end

new text begin (1) has a household income at or below 200 percent of the federal poverty level; or
new text end

new text begin (2) has a family income that does not exceed 60 percent of the area median income as
determined by the United States Department of Housing and Urban Development.
new text end

new text begin (g) "Partner organization" means a community development financial institution or a
similarly qualified nonprofit corporation, as determined by the commissioner.
new text end

new text begin (h) "Program" means the emerging developer fund program created under this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish an emerging developer fund
program to make grants to partner organizations to make loans to emerging developers for
eligible projects to transform neighborhoods statewide and promote economic development
and the creation and retention of jobs in Minnesota. The program must also reduce racial
and socioeconomic disparities by growing the financial capacity of emerging developers.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall design a
competitive process to award grants to partner organizations to make loans to emerging
developers under subdivision 4.
new text end

new text begin (b) A partner organization may use up to ten percent of grant funds for the administrative
costs of the program.
new text end

new text begin Subd. 4. new text end

new text begin Loans to emerging developers. new text end

new text begin (a) Through the program, partner organizations
shall offer emerging developers predevelopment, construction, and bridge loans for eligible
projects according to a plan submitted to and approved by the commissioner.
new text end

new text begin (b) Predevelopment loans must be for no more than $50,000. All other types of loans
must be for no more than $500,000.
new text end

new text begin (c) Loans must be for a term set by the partner organization and approved by the
commissioner of no less than six months and no more than five years, depending on the use
of loan proceeds.
new text end

new text begin (d) Loans must be for zero interest or an interest rate of no more than the Wall Street
Journal prime rate, as determined by the partner organization and approved by the
commissioner based on the individual project risk and type of loan sought.
new text end

new text begin (e) Loans must have flexible collateral requirements compared to traditional loans, but
may require a personal guaranty from the emerging developer and may be largely unsecured
when the appraised value of the real estate is low.
new text end

new text begin (f) Loans must have no prepayment penalties and are expected to be repaid from
permanent financing or a conventional loan, once that is secured.
new text end

new text begin (g) Loans must have the ability to bridge many types of receivables, such as tax credits,
grants, developer fees, and other forms of long-term financing.
new text end

new text begin (h) At the partner organization's request and the commissioner's discretion, an emerging
developer may be required to work with an experienced developer or professional services
consultant who can offer expertise and advice throughout the development of the project.
new text end

new text begin (i) All loan repayments must be paid into the emerging developer fund account created
in this section to fund additional loans.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenses. new text end

new text begin (a) The following are eligible expenses for a predevelopment
loan under the program:
new text end

new text begin (1) earnest money or purchase deposit;
new text end

new text begin (2) building inspection fees and environmental reviews;
new text end

new text begin (3) appraisal and surveying;
new text end

new text begin (4) design and tax credit application fees;
new text end

new text begin (5) title and recording fees;
new text end

new text begin (6) site preparation, demolition, and stabilization;
new text end

new text begin (7) interim maintenance and project overhead;
new text end

new text begin (8) property taxes and insurance;
new text end

new text begin (9) construction bonds or letters of credit;
new text end

new text begin (10) market and feasibility studies; and
new text end

new text begin (11) professional fees.
new text end

new text begin (b) The following are eligible expenses for a construction or bridge loan under the
program:
new text end

new text begin (1) land or building acquisition;
new text end

new text begin (2) construction-related expenses;
new text end

new text begin (3) developer and contractor fees;
new text end

new text begin (4) site preparation and demolition;
new text end

new text begin (5) financing fees, including title and recording;
new text end

new text begin (6) professional fees;
new text end

new text begin (7) carrying costs;
new text end

new text begin (8) construction period interest;
new text end

new text begin (9) project reserves; and
new text end

new text begin (10) leasehold improvements and equipment purchase.
new text end

new text begin Subd. 6. new text end

new text begin Emerging developer fund account. new text end

new text begin An emerging developer fund account is
created in the special revenue fund in the state treasury. Money in the account is appropriated
to the commissioner for grants to partner organizations to make loans under this section.
new text end

new text begin Subd. 7. new text end

new text begin Reports to the legislature. new text end

new text begin (a) By January 15 of each year, beginning in 2024,
each partner organization shall submit a report to the commissioner on the use of program
funds and program outcomes.
new text end

new text begin (b) By February 15 of each year, beginning in 2024, the commissioner shall submit a
report to the chairs of the house of representatives and senate committees with jurisdiction
over economic development on the use of program funds and program outcomes.
new text end

Sec. 10.

Minnesota Statutes 2020, section 116J.993, subdivision 3, is amended to read:


Subd. 3.

Business subsidy.

"Business subsidy" or "subsidy" means a state or local
government agency grant, contribution of personal property, real property, infrastructure,
the principal amount of a loan at rates below those commercially available to the recipient,
any reduction or deferral of any tax or any fee, any guarantee of any payment under any
loan, lease, or other obligation, or any preferential use of government facilities given to a
business.

The following forms of financial assistance are not a business subsidy:

(1) a business subsidy of less than $150,000;

(2) assistance that is generally available to all businesses or to a general class of similar
businesses, such as a line of business, size, location, or similar general criteria;

(3) public improvements to buildings or lands owned by the state or local government
that serve a public purpose and do not principally benefit a single business or defined group
of businesses at the time the improvements are made;

(4) redevelopment property polluted by contaminants as defined in section 116J.552,
subdivision 3
;

(5) assistance provided for the sole purpose of renovating old or decaying building stock
or bringing it up to code and assistance provided for designated historic preservation districts,
provided that the assistance is equal to or less than 50 percent of the total cost;

(6) assistance to provide job readiness and training services if the sole purpose of the
assistance is to provide those services;

(7) assistance for housing;

(8) assistance for pollution control or abatement, including assistance for a tax increment
financing hazardous substance subdistrict as defined under section 469.174, subdivision
23
;

(9) assistance for energy conservation;

(10) tax reductions resulting from conformity with federal tax law;

(11) workers' compensation and unemployment insurance;

(12) benefits derived from regulation;

(13) indirect benefits derived from assistance to educational institutions;

(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding
bonds, and bonds issued for the benefit of an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986, as amended through December 31, 1999;

(15) assistance for a collaboration between a Minnesota higher education institution and
a business;

(16) assistance for a tax increment financing soils condition district as defined under
section 469.174, subdivision 19;

(17) redevelopment when the recipient's investment in the purchase of the site and in
site preparation is 70 percent or more of the assessor's current year's estimated market value;

(18) general changes in tax increment financing law and other general tax law changes
of a principally technical nature;

(19) federal assistance until the assistance has been repaid to, and reinvested by, the
state or local government agency;

(20) funds from dock and wharf bonds issued by a seaway port authority;

(21) business loans and loan guarantees of $150,000 or less;

(22) federal loan funds provided through the United States Department of Commerce,
Economic Development Administrationnew text begin, Department of the Treasurynew text end; and

(23) property tax abatements granted under section 469.1813 to property that is subject
to valuation under Minnesota Rules, chapter 8100.

Sec. 11.

Minnesota Statutes 2020, section 116L.04, subdivision 1a, is amended to read:


Subd. 1a.

Pathways program.

The pathways program may provide grants-in-aid for
developing programs which assist in the transition of persons from welfare to work and
assist individuals at or below 200 percent of the federal poverty guidelines. The program
is to be operated by the board. The board shall consult and coordinate with program
administrators at the Department of Employment and Economic Development to design
and provide services for temporary assistance for needy families recipients.

Pathways grants-in-aid may be awarded to educational or other nonprofit training
institutions or to workforce development intermediaries for education and training programs
and services supporting education and training programs that serve eligible recipients.

Preference shall be given to projects that:

(1) provide employment with benefits paid to employees;

(2) provide employment where there are defined career paths for trainees;

(3) pilot the development of an educational pathway that can be used on a continuing
basis for transitioning persons from welfare to work; and

(4) demonstrate the active participation of Department of Employment and Economic
Development workforce centers, Minnesota State College and University institutions and
other educational institutions, and local welfare agencies.

Pathways projects must demonstrate the active involvement and financial commitment
of deleted text beginprivatedeleted text endnew text begin participatingnew text end business. Pathways projects must be matched with cash or in-kind
contributions on at least a one-half-to-one ratio by participating deleted text beginprivatedeleted text end business.

A single grant to any one institution shall not exceed $400,000. A portion of a grant may
be used for preemployment training.

Sec. 12.

Minnesota Statutes 2020, section 116L.17, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment or
reemployment in the same or a similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to employment by reason of
age;

(3) has been terminated or has received a notice of termination of employment as a result
of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides or
because of natural disasters;

(5) is a veteran as defined by section 197.447, has been discharged or released from
active duty under honorable conditions within the last 36 months, and (i) is unemployed or
(ii) is employed in a job verified to be below the skill level and earning capacity of the
veteran;

(6) is an individual determined by the United States Department of Labor to be covered
by trade adjustment assistance under United States Code, title 19, sections 2271 to 2331,
as amended; or

(7) is a displaced homemaker. A "displaced homemaker" is an individual who has spent
a substantial number of years in the home providing homemaking service and (i) has been
dependent upon the financial support of another; and deleted text beginnowdeleted text end due to divorce, separation, death,
or disability of that person, must new text beginnow new text endfind employment to self support; or (ii) derived the
substantial share of support from public assistance on account of dependents in the home
and no longer receives such support. To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota.

For the purposes of this section, "dislocated worker" does not include an individual who
was an employee, at the time employment ceased, of a political committee, political fund,
principal campaign committee, or party unit, as those terms are used in chapter 10A, or an
organization required to file with the federal elections commission.

(d) "Eligible organization" means a state or local government unit, nonprofit organization,
community action agency, business organization or association, or labor organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single site
of employment, or one or more facilities or operating units within a single site of
employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
result of a plant closing, and which results in an employment loss at a single site of
employment during any 30-day period for at least 50 employees excluding those employees
that work less than 20 hours per week.

Sec. 13.

Minnesota Statutes 2020, section 116L.98, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) For the purposes of this section, the terms defined in this
subdivision have the meanings given.

(b) "Credential" means deleted text beginpostsecondarydeleted text end degrees, diplomas, licenses, and certificates
awarded in recognition of an individual's attainment of measurable technical or occupational
skills necessary to obtain employment or advance with an occupation. This definition does
not include deleted text begincertificates awarded by workforce investment boards ordeleted text end work-readiness
certificates.

(c) "Exit" means to have not received service under a workforce program for 90
consecutive calendar days. The exit date is the last date of service.

(d) "Net impact" means the use of matched control groups and regression analysis to
estimate the impacts attributable to program participation net of other factors, including
observable personal characteristics and economic conditions.

(e) "Pre-enrollment" means the period of time before an individual was enrolled in a
workforce program.

Sec. 14.

Minnesota Statutes 2020, section 116L.98, subdivision 3, is amended to read:


Subd. 3.

Uniform outcome report card; reporting by commissioner.

(a) By December
31 of each even-numbered year, the commissioner must report to the chairs and ranking
minority members of the committees of the house of representatives and the senate having
jurisdiction over economic development and workforce policy and finance the following
information separately for each of the previous two fiscal or calendar years, for each program
subject to the requirements of subdivision 1:

(1) the total number of participants enrolled;

(2) the median pre-enrollment wages based on participant wages for the second through
the fifth calendar quarters immediately preceding the quarter of enrollment excluding those
with zero income;

(3) the total number of participants with zero income in the second through fifth calendar
quarters immediately preceding the quarter of enrollment;

(4) the total number of participants enrolled in training;

(5) the total number of participants enrolled in training by occupational group;

(6) the total number of participants that exited the program and the average enrollment
duration of participants that have exited the program during the year;

(7) the total number of exited participants who completed training;

(8) the total number of exited participants who attained a credential;

(9) the total number of participants employed during three consecutive quarters
immediately following the quarter of exit, by industry;

(10) the median wages of participants employed during three consecutive quarters
immediately following the quarter of exit;

(11) the total number of participants employed during eight consecutive quarters
immediately following the quarter of exit, by industry;new text begin and
new text end

(12) the median wages of participants employed during eight consecutive quarters
immediately following the quarter of exitdeleted text begin;deleted text endnew text begin.
new text end

deleted text begin (13) the total cost of the program;
deleted text end

deleted text begin (14) the total cost of the program per participant;
deleted text end

deleted text begin (15) the cost per credential received by a participant; and
deleted text end

deleted text begin (16) the administrative cost of the program.
deleted text end

(b) The report to the legislature must contain participant information by education level,
race and ethnicity, gender, and geography, and a comparison of exited participants who
completed training and those who did not.

(c) The requirements of this section apply to programs administered directly by the
commissioner or administered by other organizations under a grant made by the department.

Sec. 15. new text beginCANADIAN BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

new text begin The Northland Foundation and the Northwest
Minnesota Foundation must develop and implement a Canadian border counties economic
relief program to assist businesses adversely affected by the 2021 closure of the Boundary
Waters Canoe Area Wilderness or the closures of the Canadian border since 2020.
new text end

new text begin Subd. 2. new text end

new text begin Available relief. new text end

new text begin (a) The economic relief program established under this section
may include grants provided in this section to the extent that funds are available. Before
awarding grants to the Northland Foundation and the Northwest Minnesota Foundation for
the relief program under this section:
new text end

new text begin (1) the Northland Foundation and the Northwest Minnesota Foundation must develop
criteria, procedures, and requirements for:
new text end

new text begin (i) determining eligibility for assistance;
new text end

new text begin (ii) evaluating applications for assistance;
new text end

new text begin (iii) awarding assistance; and
new text end

new text begin (iv) administering the grant program authorized under this section;
new text end

new text begin (2) the Northland Foundation and the Northwest Minnesota Foundation must submit
criteria, procedures, and requirements developed under clause (1) to the commissioner of
employment and economic development for review; and
new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements submitted
under clause (2).
new text end

new text begin (b) The maximum grant to a business under this section is $50,000 per business.
new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for assistance under this section, a
business must:
new text end

new text begin (1) be located within a county that shares a border with Canada;
new text end

new text begin (2) document a reduction of at least 20 percent in gross receipts in 2021 compared to
2019; and
new text end

new text begin (3) provide a written explanation for how the 2021 closure of the Boundary Waters
Canoe Area Wilderness or the closures of the Canadian border since 2020 resulted in the
reduction in gross receipts documented under clause (2).
new text end

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

new text begin (a) The Northland Foundation and the Northwest Minnesota
Foundation must establish performance measures, including but not limited to the following
components:
new text end

new text begin (1) the number of grants awarded and award amounts for each grant;
new text end

new text begin (2) the number of jobs created or retained as a result of the assistance, including
information on the wages and benefit levels, the status of the jobs as full time or part time,
and the status of the jobs as temporary or permanent;
new text end

new text begin (3) the amount of business activity and changes in gross revenues of the grant recipient
as a result of the assistance; and
new text end

new text begin (4) the new tax revenue generated as a result of the assistance.
new text end

new text begin (b) The commissioner of employment and economic development must monitor the
Northland Foundation's and the Northwest Minnesota Foundation's compliance with this
section and the performance measures developed under paragraph (a).
new text end

new text begin (c) The Northland Foundation and the Northwest Minnesota Foundation must comply
with all requests made by the commissioner under this section.
new text end

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

new text begin Minnesota Statutes, sections 116J.993 to
116J.995, do not apply to assistance under this section. Businesses in receipt of assistance
under this section must provide for job creation and retention goals and wage and benefit
goals.
new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic
development may use up to three percent of the appropriation made for this section for
administrative expenses of the department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2022, and expires June 30, 2023.
new text end

Sec. 16. new text beginSMALL BUSINESS RECOVERY GRANT PROGRAM.
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 following terms have
the meanings given.
new text end

new text begin (b) "Business" means both for-profit businesses and nonprofit organizations that earn
revenue in ways similar to businesses, including but not limited to ticket sales and
membership fees.
new text end

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

new text begin (d) "Partner organization" or "partner" means the Minnesota Initiative Foundations and
nonprofit corporations on the certified lenders list that the commissioner determines to be
qualified to provide grants to businesses under this section.
new text end

new text begin (e) "Program" means the small business recovery grant program under this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish the small business recovery
grant program to make grants to partner organizations to provide grants to businesses that
have been directly or indirectly impacted by the COVID-19 pandemic and other economic
challenges.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall make grants to
partner organizations to provide grants to businesses under subdivision 4 using criteria,
forms, applications, and reporting requirements developed by the commissioner.
new text end

new text begin (b) The commissioner must, to the degree practical, grant an equal amount of money to
partner organizations serving the seven-county metropolitan area, as defined under Minnesota
Statutes, section 473.121, subdivision 2, as the commissioner grants to organizations serving
greater Minnesota.
new text end

new text begin (c) Up to four percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program.
new text end

new text begin (d) Any money not spent by partner organizations by December 31, 2023, must be
returned to the commissioner and canceled back to the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Grants to businesses. new text end

new text begin (a) Partners shall make grants to businesses using criteria,
forms, applications, and reporting requirements developed by the commissioner.
new text end

new text begin (b) To be eligible for a grant under this subdivision, a business must:
new text end

new text begin (1) have primary business operations located in Minnesota;
new text end

new text begin (2) be at least 50 percent owned by a resident of Minnesota;
new text end

new text begin (3) employ the equivalent of 50 full-time workers or less;
new text end

new text begin (4) be able to demonstrate financial hardship during 2021 or 2022;
new text end

new text begin (5) include as part of the application a business plan for continued operation; and
new text end

new text begin (6) primarily do business in one or more of the industries listed under subdivision 5.
new text end

new text begin (c) Grants under this subdivision shall be awarded by randomized selection process after
applications are collected over a period of no more than ten calendar days.
new text end

new text begin (d) Grants under this subdivision must be for up to $25,000 per business.
new text end

new text begin (e) No business may receive more than one grant under this section.
new text end

new text begin (f) Grant money must be used for working capital to support payroll expenses, rent or
mortgage payments, utility bills, and other similar expenses that occur or have occurred
since January 1, 2022, in the regular course of business, but not to refinance debt that existed
at the time of the governor's COVID-19 peacetime emergency declaration.
new text end

new text begin Subd. 5. new text end

new text begin Eligible industries. new text end

new text begin To be eligible for a grant under subdivision 4, a business
must primarily do business in one or more of the following industries:
new text end

new text begin (1) serving food or beverages, such as restaurants, cafes, bars, breweries, wineries, and
distilleries;
new text end

new text begin (2) personal services, such as hair care, nail care, skin care, or massage;
new text end

new text begin (3) indoor entertainment, such as a business providing arcade games, escape rooms, or
indoor trampoline parks;
new text end

new text begin (4) indoor fitness and recreational sports centers, such as gyms, fitness studios, indoor
ice rinks, and indoor swimming pools;
new text end

new text begin (5) wellness and recreation, such as the teaching of yoga, dance, or martial arts;
new text end

new text begin (6) catering services;
new text end

new text begin (7) temporary lodging, such as hotels and motels; or
new text end

new text begin (8) performance venues.
new text end

new text begin Subd. 6. new text end

new text begin Distribution of awards. new text end

new text begin Of grant funds awarded under subdivision 4, a
minimum of:
new text end

new text begin (1) $15,000,000 must be awarded to businesses that employ the equivalent of six full-time
workers or less;
new text end

new text begin (2) $10,000,000 must be awarded to minority business enterprises, as defined in
Minnesota Statutes, section 116M.14, subdivision 5;
new text end

new text begin (3) $2,500,000 must be awarded to businesses that are majority owned and operated by
veterans as defined in Minnesota Statutes, section 197.447; and
new text end

new text begin (4) $2,500,000 must be awarded to businesses that are majority owned and operated by
women.
new text end

new text begin Subd. 7. new text end

new text begin Exemptions. new text end

new text begin 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 commissioner must audit the use of grant money under this
section in accordance with standard accounting practices. This subdivision expires on
December 31, 2023.
new text end

new text begin Subd. 8. new text end

new text begin Reports. new text end

new text begin (a) By January 31, 2024, partner organizations participating in the
program must provide a report to the commissioner that includes descriptions of the
businesses supported by the program, the amounts granted, and an explanation of
administrative expenses.
new text end

new text begin (b) By February 15, 2024, the commissioner must report to the legislative committees
in the house of representatives and senate with jurisdiction over economic development
about grants made under this section based on the information received under paragraph
(a).
new text end

Sec. 17. new text beginENCUMBRANCE EXCEPTION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 16B.98, subdivision 5, paragraph (a), clause
(2), or 16C.05, subdivision 2, paragraph (a), clause (3), the commissioner of employment
and economic development may permit grant recipients of the Minnesota investment fund
program under Minnesota Statutes, section 116J.8731; the job creation fund program under
Minnesota Statutes, section 116J.8748; and the border-to-border broadband program under
Minnesota Statutes, section 116J.395, to incur eligible expenses based on an agreed upon
work plan and budget for up to 90 days prior to an encumbrance being established in the
accounting system.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires on June 30, 2025.
new text end

Sec. 18. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2021 Supplement, section 116J.9924, subdivision 6, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H4355-1

116J.9924 TARGETED COMMUNITY CAPITAL PROJECT GRANT PROGRAM.

Subd. 6.

Applicability of other laws.

The provisions of chapter 16A that apply to general fund appropriations for capital projects also apply to grants under this section. Money granted under this section is available until the project is completed or abandoned subject to section 16A.642.