HF 4580

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/24/2022 01:59pm

A bill for an act
relating to economic development; appropriating money for nonprofit relief grants.

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

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

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) The commissioner of employment and economic development
shall make grants to the Saint Paul & Minnesota Foundation and the six Minnesota Initiative
Foundations to make grants to eligible nonprofits under paragraph (d). Intermediaries shall
make grants to nonprofits 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 section, a nonprofit must:
new text end

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

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

new text begin (3) provide the organization's federal taxpayer identification number (EIN);
new text end

new text begin (4) be a 501(c)(3) public charity; provide evidence of a submitted application for 501(c)(3)
status awaiting approval if dated before December 31, 2019; or provide a written fiscal
sponsor agreement signed by the 501(c)(3) fiscal sponsor and the sponsored organization;
new text end

new text begin (5) be currently registered with and have no current tax liens on record with the secretary
of state at the time of application for a grant;
new text end

new text begin (6) not be a hospital or clinic, sports facility, private school, credit union, religious
corporation, or institution of higher education; and
new text end

new text begin (7) be able to attest to financial hardship as a result of the COVID-19 pandemic. This
hardship can be due to loss of revenue or an increased demand for services.
new text end

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

new text begin (d) The commissioner of employment and economic development shall develop criteria,
forms, and applications necessary to issue these grants. The commissioner shall work with
the intermediaries to ensure that all criteria, forms, applications, and reporting requirements
are appropriate for the nonprofit entities and are no more rigorous than the Small Business
Relief Grants program administered by the Department of Employment and Economic
Development under Laws 2020, First Special Session chapter 1, section 4. The commissioner
shall accept applications and complete a randomized selection process and shall provide
money to the named intermediaries who will determine eligibility and disperse grants.
new text end

new text begin Subd. 2. new text end

new text begin Grant Amounts. new text end

new text begin Grants under this section shall be for the following amounts:
new text end

new text begin (1) $50,000 for organizations that have organizational revenue for fiscal year 2019
between $50,000 and equal or less than $1,500,000;
new text end

new text begin (2) $100,000 for organizations that have organizational revenue for fiscal year 2019
greater than $1,500,000, but less than $5,000,000;
new text end

new text begin (3) $150,000 for organizations that have organizational revenue for fiscal year 2019
greater than $5,000,000, but less than $35,000,000; and
new text end

new text begin (4) $75,000 for organizations that qualify as a culturally specific organization and have
organization revenue between $250,000 and equal to or less than $1,500,000. For the
purposes of this section, "culturally specific organization" means primarily serving
historically underserved cultural communities and possessing two out of the three following
criteria:
new text end

new text begin (i) the organization's governing board has a majority representation of the base community
or communities the organization serves;
new text end

new text begin (ii) the majority of the people who interact with the organization as clients are from the
base cultural community or communities the organization serves; and
new text end

new text begin (iii) either a majority of the leadership staff or a majority of the entire staff are from the
base cultural community or communities the organization serves.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of awards. new text end

new text begin (a) Of grant funds awarded under subdivision 2, a
minimum of:
new text end

new text begin (1) $33,000,000 must be awarded to organizations that provide human services;
new text end

new text begin (2) $6,500,000 must be awarded to culturally specific organization; and
new text end

new text begin (3) $7,500,000 must be awarded to organizations in greater Minnesota that have
organizational revenue for fiscal year 2019 of between $250,000 and equal to or less than
$1,500,000.
new text end

new text begin (b) Nonprofits eligible for grants in the categories provided in subdivision 2, clauses (2)
to (4), that operate from more than one location may apply to the randomized selection
process for each location with a maximum of two awards to an individual nonprofit.
new text end

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

new text begin (d) By December 31, 2023, the commissioner of employment and economic development
shall submit a report to the chairs and ranking minority members of the legislative committees
with jurisdiction over economic development detailing the use of money under this section.
new text end

new text begin (e) Any money not spent by intermediaries by June 30, 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 Appropriations. new text end

new text begin (a) $50,000,000 in fiscal year 2023 is appropriated from the
general fund to the commissioner of employment and economic development for nonprofit
relief grants in this section. Of the total amount, half is for eligible nonprofits in the
seven-county metropolitan area and half is for eligible nonprofits outside the seven-county
metropolitan area.
new text end

new text begin (b) Of this amount, up to:
new text end

new text begin (1) $100,000 is for the commissioner of employment and economic development to
administer the program;
new text end

new text begin (2) $49,900,000 is to the Saint Paul & Minnesota Foundation and the six Minnesota
Initiative Foundations to support distribution of money as a result of the randomized selection
process; and
new text end

new text begin (3) up to five percent may be used by the organizations in clause (2) for administrative
costs incurred to administer the program. Thirty percent of allowable administrative expenses
must be made available to the organizations in clause (2) on July 1, 2022, to ensure those
organizations have the infrastructure and staffing in place to efficiently administer this
program. The schedule for payment of the remaining allowable administrative expenses
must be determined by the commissioner of employment and economic development in
consultation with the organizations under clause (2).
new text end