HF 4602

as introduced - 91st Legislature (2019 - 2020) Posted on 06/09/2020 11:05am

A bill for an act
relating to economic development; modifying conditions for forgiveness of a loan
from the Minnesota investment fund; amending Laws 2019, First Special Session
chapter 7, article 1, section 2, subdivision 2, as amended.

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

Section 1.

Laws 2019, First Special Session chapter 7, article 1, section 2, subdivision 2,
as amended by Laws 2019, First Special Session chapter 12, section 4, is amended to read:

Subd. 2. Business and Community Development

44,931,000

42,381,000

Appropriations by Fund
General	40,756,000	38,206,000
Remediation	700,000	700,000
Workforce Development	3,475,000	3,475,000

(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, 2023.

(b) $1,425,000 each year is for the business
development competitive grant program. Of
this amount, up to five percent is for
administration and monitoring of the business
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.

(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
June 30, 2023.

(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 June 30, 2023.

(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) $125,000 each year is from the workforce
development fund for a grant to the White
Earth Nation for the White Earth Nation
Integrated Business Development System to
provide business assistance with workforce
development, outreach, technical assistance,
infrastructure and operational support,
financing, and other business development
activities. This is a onetime appropriation.

(i) $450,000 each year is from the workforce
development fund 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.

(j) $250,000 the first year is for a grant to the
Rondo Community Land Trust for
improvements to leased commercial space in
the Selby Milton Victoria Project that will
create long-term affordable space for small
businesses and for build-out and development
of new businesses.

(k) $400,000 each year is from the workforce
development fund for a grant to the
Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services, including
services to entrepreneurs with businesses that
have the potential to create job opportunities
for unemployed and underemployed people,
with an emphasis on minority-owned
businesses. This is a onetime appropriation.

(l) $750,000 in fiscal year 2020 is for grants
to local communities to increase the supply of
quality child care providers to support
economic development. At least 60 percent of
grant funds must go to communities located
outside of the seven-county metropolitan area
as defined under Minnesota Statutes, section
473.121, subdivision 2. Grant recipients must
obtain a 50 percent nonstate match to grant
funds in either cash or in-kind contributions.
Grant funds available under this section 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 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 in the area.
This is a onetime appropriation. 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.

(m) $750,000 in fiscal year 2020 is for a grant
to the Minnesota Initiative Foundations. This
is a onetime appropriation and is available
until June 30, 2023. 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; or

(4) recruit child care programs to participate
in Parent Aware, Minnesota's quality and
improvement rating system, and other high
quality 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 Parent Aware or other high
quality measurement programs.

(n)(1) $650,000 each year from the workforce
development fund is for grants to the
Neighborhood Development Center for small
business programs. This is a onetime
appropriation.

(2) Of the amount appropriated in the first
year, $150,000 is for outreach and training
activities outside the seven-county
metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 2.

(o) $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.

(p)(1) $11,970,000 each year is 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 2022 and beyond,
the base amount is $12,370,000. This
appropriation is available until expended.
Notwithstanding Minnesota Statutes, section
116J.8731, funds 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.

(2) Of the amount appropriated in the first
year, $2,000,000 is for a loan to a paper mill
in Duluth for a retrofit project that will support
the operation and manufacture of packaging
paper grades. The company that owns the
paper mill must spend $20,000,000 on project
activities by December 31, 2020, in order to
be eligible to receive this loan. Loan funds
may be used for purchases of materials,
supplies, and equipment for the project and
are available from July 1, 2019, to July 30,
2021. The commissioner of employment and
economic development shall forgive 25
percent of the loan each year after the second
year during a five-year period if the mill has
retained at least deleted text begin 200 deleted text end new text begin 150 new text end full-time equivalent
employees and has satisfied other performance
goals and contractual obligations as required
under Minnesota Statutes, section 116J.8731.

(q) $700,000 in fiscal year 2020 is for the
airport infrastructure renewal (AIR) grant
program under Minnesota Statutes, section
116J.439.

(r) $100,000 in fiscal year 2020 is for a grant
to FIRST in Upper Midwest to support
competitive robotics teams. Funds must be
used to make up to five awards of no more
than $20,000 each to Minnesota-based public
entities or private nonprofit organizations for
the creation of competitive robotics hubs.
Awards may be used for tools, equipment, and
physical space to be utilized by robotics teams.
At least 50 percent of grant funds must be used
outside of the seven-county metropolitan area,
as defined under Minnesota Statutes, section
473.121, subdivision 2. The grant recipient
shall report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over jobs and economic growth
by February 1, 2021, on the status of awards
and include information on the number and
amount of awards made, the number of
customers served, and any outcomes resulting
from the grant. The grant requires a 50 percent
match from nonstate sources.

(s) $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.

(t) $163,000 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.

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

(v) $500,000 each year is from the general
fund 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,
2023.

(w) $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.

(x) $1,350,000 each year is from the
workforce development fund for jobs training
grants under Minnesota Statutes, section
116L.42.

(y) $2,500,000 each year is for Launch
Minnesota. This is a onetime appropriation
and funds are available until June 30, 2023.
Of this amount:

(1) $1,600,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs;

(2) $450,000 each year is for administration
of Launch Minnesota; and

(3) $450,000 each year is for grantee activities
at Launch Minnesota.

(z) $500,000 each year is from the workforce
development fund for a grant to Youthprise
to give grants through a competitive process
to community organizations to provide
economic development services designed to
enhance long-term economic self-sufficiency
in communities with concentrated East African
populations. Such communities include but
are not limited to Faribault, Rochester, St.
Cloud, Moorhead, and Willmar. To the extent
possible, Youthprise must make at least 50
percent of these grants to organizations serving
communities located outside the seven-county
metropolitan area, as defined in Minnesota
Statutes, section 473.121, subdivision 2.This
is a onetime appropriation and is available
until June 30, 2022.

(aa) $125,000 each year is for a grant to the
Hmong Chamber of Commerce to train
ethnically Southeast Asian business owners
and operators in better business practices. This
is a onetime appropriation.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactive from July 1, 2019.
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