HF 5160

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/25/2024 02:51pm

A bill for an act
relating to economic development; extending the availability of a 2023
appropriation for a grant to the Asian Economic Development Association;
amending Laws 2023, chapter 53, article 20, section 2, subdivision 2.

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

Section 1.

Laws 2023, chapter 53, article 20, section 2, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

195,061,000

139,929,000

Appropriations by Fund
General	193,011,000	137,879,000
Remediation	700,000	700,000
Workforce Development	1,350,000	1,350,000

(a) $2,287,000 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, 2027.

(b) $500,000 each year is for grants to small
business development centers under Minnesota
Statutes, section 116J.68. Money made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services or
to build additional SBDC network capacity to
serve entrepreneurs and small businesses.

(c) $2,500,000 each year is for Launch
Minnesota. These are onetime appropriations.
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.

(d)(1) $500,000 each year is for grants to
MNSBIR, Inc., to support moving scientific
excellence and technological innovation from
the lab to the market for start-ups and small
businesses by securing federal research and
development funding. The purpose of the grant
is to build a strong Minnesota economy and
stimulate the creation of novel products,
services, and solutions in the private sector;
strengthen the role of small business in
meeting federal research and development
needs; increase the commercial application of
federally supported research results; and
develop and increase the Minnesota
workforce, especially by fostering and
encouraging participation by small businesses
owned by women and people who are Black,
Indigenous, or people of color. This is a
onetime appropriation.

(2) MNSBIR, Inc., shall use the grant money
to be the dedicated resource for federal
research and development for small businesses
of up to 500 employees statewide to support
research and commercialization of novel ideas,
concepts, and projects into cutting-edge
products and services for worldwide economic
impact. MNSBIR, Inc., shall use grant money
to:

(i) assist small businesses in securing federal
research and development funding, including
the Small Business Innovation Research and
Small Business Technology Transfer programs
and other federal research and development
funding opportunities;

(ii) support technology transfer and
commercialization from the University of
Minnesota, Mayo Clinic, and federal
laboratories;

(iii) partner with large businesses;

(iv) conduct statewide outreach, education,
and training on federal rules, regulations, and
requirements;

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts;
and

(vii) support cost accounting and sole-source
procurement opportunities.

(e) $10,000,000 the first year is for the
Minnesota Expanding Opportunity Fund
Program under Minnesota Statutes, section
116J.8733. This is a onetime appropriation
and is available until June 30, 2025.

(f) $6,425,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
The base for this appropriation is $2,725,000
in fiscal year 2026 and each year thereafter.

(g) $350,000 each year is for administration
of the community energy transition office.

(h) $5,000,000 each year is transferred from
the general fund to the community energy
transition account for grants under Minnesota
Statutes, section 116J.55. This is a onetime
transfer.

(i) $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.

(j) $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.

(k) $389,000 each year is for the Center for
Rural Policy and Development. The base for
this appropriation is $139,000 in fiscal year
2026 and each year thereafter.

(l) $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.

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

(n) $6,500,000 each year is for grants to local
communities to increase the number of quality
child care providers to support economic
development. Fifty percent of grant money
must go to communities located outside the
seven-county metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2. The base for this appropriation
is $1,500,000 in fiscal year 2026 and each year
thereafter.

Grant recipients must obtain a 50 percent
nonstate match to grant money in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
money 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.

Within one year of receiving grant money,
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 openings, and
the amount of cash and in-kind local money
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.

(o) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:

(1) $450,000 each year is for administration
of the Office of Child Care Community
Partnerships; and

(2) $50,000 each year is for the Labor Market
Information Office to conduct research and
analysis related to the child care industry.

(p) $3,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations. This appropriation is available
until June 30, 2027. The base for this
appropriation is $1,000,000 in fiscal year 2026
and each year thereafter. The Minnesota
Initiative Foundations must use grant money
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 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.

(q) $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. Notwithstanding
Minnesota Statutes, section 116J.8748, money
appropriated for the job creation fund may be
used for redevelopment under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner.

(r) $12,370,000 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.
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.

(s) $4,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
The base for this appropriation is $2,246,000
in fiscal year 2026 and each year thereafter.
This appropriation is available until expended.

(t) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Money
available under this paragraph is 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.

(u) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation 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.

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

(w) $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, 2027.

(x) $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.

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

(z) $47,475,000 each year is for the PROMISE
grant program. This is a onetime appropriation
and is available until June 30, 2027. Of this
amount:

(1) $475,000 each year is for administration
of the PROMISE grant program;

(2) $7,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota. Of this amount, $600,000 each
year is for grants to businesses with less than
$100,000 in revenue in the prior year; and

(3) $39,500,000 each year is for grants to the
Neighborhood Development Center. Of this
amount, the following amounts are designated
for the following areas:

(i) $16,000,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods. Of this
amount, $1,000,000 each year is for grants to
businesses with less than $100,000 in revenue
in the prior year;

(ii) $13,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors.
Of this amount, $750,000 each year is for
grants to businesses with less than $100,000
in revenue in the prior year; and

(iii) $10,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods. Of this amount,
$750,000 each year is for grants to businesses
with less than $100,000 in revenue in the prior
year.

(aa) $15,150,000 each year is for the
PROMISE loan program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:

(1) $150,000 each year is for administration
of the PROMISE loan program;

(2) $3,000,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota; and

(3) $12,000,000 each year is for grants to the
Metropolitan Economic Development
Association (MEDA). Of this amount, the
following amounts are designated for the
following areas:

(i) $4,500,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;

(ii) $4,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors;
and

(iii) $3,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.

(bb) $1,500,000 each year is for a grant to the
Metropolitan Consortium of Community
Developers for the community wealth-building
grant program pilot project. Of this amount,
up to two percent is for administration and
monitoring of the community wealth-building
grant program pilot project. This is a onetime
appropriation.

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

(dd) $5,000,000 the first year is for a grant to
the Bloomington Port Authority to provide
funding for the Expo 2027 host organization.
The Bloomington Port Authority must enter
into an agreement with the host organization
over the use of money, which may be used for
activities, including but not limited to
finalizing the community dossier and staffing
the host organization and for infrastructure
design and planning, financial modeling,
development planning and coordination of
both real estate and public private partnerships,
and reimbursement of costs the Bloomington
Port Authority incurred. In selecting vendors
and exhibitors for Expo 2027, the host
organization shall prioritize outreach to,
collaboration with, and inclusion of businesses
that are majority owned by people of color,
women, and people with disabilities. The host
organization and Bloomington Port Authority
may be reimbursed for expenses 90 days prior
to encumbrance. This appropriation is
contingent on approval of the project by the
Bureau International des Expositions. If the
project is not approved by the Bureau
International des Expositions, the money shall
transfer to the Minnesota investment fund
under Minnesota Statutes, section 116J.8731.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

(ee) $5,000,000 the first year is for a grant to
the Neighborhood Development Center for
small business programs, including training,
lending, business services, and real estate
programming; small business incubator
development in the Twin Cities and outside
the seven-county metropolitan area; and
technical assistance activities for partners
outside the seven-county metropolitan area;
and for high-risk, character-based loan capital
for nonrecourse loans. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.

(ff) $5,000,000 the first year is for transfer to
the emerging developer fund account in the
special revenue fund. Of this amount, up to
five percent is for administration and
monitoring of the emerging developer fund
program under Minnesota Statutes, section
116J.9926, and the remainder is for a grant to
the Local Initiatives Support Corporation -
Twin Cities to serve as a partner organization
under the program. This is a onetime
appropriation.

(gg) $5,000,000 the first year is for the
Canadian border counties economic relief
program under article 5. Of this amount, up
to $1,000,000 is for Tribal economic
development and $2,100,000 is for a grant to
Lake of the Woods County for the forgivable
loan program for remote recreational
businesses. This is a onetime appropriation
and is available until June 30, 2026.

(hh) $1,000,000 each year is for a grant to
African Economic Development Solutions.
This is a onetime appropriation and is
available until June 30, 2026. Of this amount:

(1) $500,000 each year is for a loan fund that
must address pervasive economic inequities
by supporting business ventures of
entrepreneurs in the African immigrant
community; and

(2) $250,000 each year is for workforce
development and technical assistance,
including but not limited to business
development, entrepreneur training, business
technical assistance, loan packing, and
community development services.

(ii) $1,500,000 each year is for a grant to the
Latino Economic Development Center. This
is a onetime appropriation and is available
until June 30, 2025. Of this amount:

(1) $750,000 each year is to assist, support,
finance, and launch microentrepreneurs by
delivering training, workshops, and
one-on-one consultations to businesses; and

(2) $750,000 each year is to guide prospective
entrepreneurs in their start-up process by
introducing them to key business concepts,
including business start-up readiness. Grant
proceeds must be used to offer workshops on
a variety of topics throughout the year,
including finance, customer service,
food-handler training, and food-safety
certification. Grant proceeds may also be used
to provide lending to business startups.

(jj) $627,000 the first year is for a grant to
Community and Economic Development
Associates (CEDA) to provide funding for
economic development technical assistance
and economic development project grants to
small communities across rural Minnesota and
for CEDA to design, implement, market, and
administer specific types of basic community
and economic development programs tailored
to individual community needs. Technical
assistance grants shall be based on need and
given to communities that are otherwise
unable to afford these services. Of the amount
appropriated, up to $270,000 may be used for
economic development project implementation
in conjunction with the technical assistance
received. This is a onetime appropriation. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year.

(kk) $2,000,000 the first year is for a grant to
WomenVenture to:

(1) support child care providers through
business training and shared services programs
and to create materials that could be used, free
of charge, for start-up, expansion, and
operation of child care businesses statewide,
with the goal of helping new and existing child
care businesses in underserved areas of the
state become profitable and sustainable; and

(2) support business expansion for women
food entrepreneurs throughout Minnesota's
food supply chain to help stabilize and
strengthen their business operations, create
distribution networks, offer technical
assistance and support to beginning women
food entrepreneurs, develop business plans,
develop a workforce, research expansion
strategies, and for other related activities.

Eligible uses of the money include but are not
limited to:

(i) leasehold improvements;

(ii) additions, alterations, remodeling, or
renovations to rented space;

(iii) inventory or supplies;

(iv) machinery or equipment purchases;

(v) working capital; and

(vi) debt refinancing.

Money distributed to entrepreneurs may be
loans, forgivable loans, and grants. Of this
amount, up to five percent may be used for
the WomenVenture's technical assistance and
administrative costs. This is a onetime
appropriation and is available until June 30,
2026.

By December 15, 2026, WomenVenture must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
and employment and economic development.
The report must include a summary of the uses
of the appropriation, including the amount of
the appropriation used for administration. The
report must also provide a breakdown of the
amount of funding used for loans, forgivable
loans, and grants; information about the terms
of the loans issued; a discussion of how money
from repaid loans will be used; the number of
entrepreneurs assisted; and a breakdown of
how many entrepreneurs received assistance
in each county.

(ll) $2,000,000 the first year is for a grant to
African Career, Education, and Resource, Inc.,
for operational infrastructure and technical
assistance to small businesses. This
appropriation is available until June 30, 2025.

(mm) $5,000,000 the first year is for a grant
to the African Development Center to provide
loans to purchase commercial real estate and
to expand organizational infrastructure. This
appropriation is available until June 30, 2025.
Of this amount:

(1) $2,800,000 is for loans to purchase
commercial real estate targeted at African
immigrant small business owners;

(2) $364,000 is for loan loss reserves to
support loan volume growth and attract
additional capital;

(3) $836,000 is for increasing organizational
capacity;

(4) $300,000 is for the safe 2 eat project of
inclusive assistance with required restaurant
licensing examinations; and

(5) $700,000 is for a center for community
resources for language and technology
assistance for small businesses.

(nn) $7,000,000 the first year is for grants to
the Minnesota Initiative Foundations to
capitalize their revolving loan funds, which
address unmet financing needs of for-profit
business start-ups, expansions, and ownership
transitions; nonprofit organizations; and
developers of housing to support the
construction, rehabilitation, and conversion
of housing units. Of the amount appropriated:

(1) $1,000,000 is for a grant to the Southwest
Initiative Foundation;

(2) $1,000,000 is for a grant to the West
Central Initiative Foundation;

(3) $1,000,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $1,000,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $2,000,000 is for a grant to the Initiative
Foundation of which $1,000,000 is for
redevelopment of the St. Cloud Youth and
Family Center; and

(6) $1,000,000 is for a grant to the Northland
Foundation.

(oo) $500,000 each year is for a grant to
Enterprise Minnesota, Inc., to reach and
deliver talent, leadership, employee retention,
continuous improvement, strategy, quality
management systems, revenue growth, and
manufacturing peer-to-peer advisory services
to small manufacturing companies employing
35 or fewer full-time equivalent employees.
This is a onetime appropriation. No later than
February 1, 2025, and February 1, 2026,
Enterprise Minnesota, Inc., must provide a
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over economic development that
includes:

(1) the grants awarded during the past 12
months;

(2) the estimated financial impact of the grants
awarded to each company receiving services
under the program;

(3) the actual financial impact of grants
awarded during the past 24 months; and

(4) the total amount of federal funds leveraged
from the Manufacturing Extension Partnership
at the United States Department of Commerce.

(pp) $375,000 each year is for a grant to
PFund Foundation to provide grants to
LGBTQ+-owned small businesses and
entrepreneurs. Of this amount, up to five
percent may be used for PFund Foundation's
technical assistance and administrative costs.
This is a onetime appropriation and is
available until June 30, 2026. To the extent
practicable, money must be distributed by
PFund Foundation as follows:

(1) at least 33.3 percent to businesses owned
by members of racial minority communities;
and

(2) at least 33.3 percent to businesses outside
of the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2.

(qq) $125,000 each year is for a grant to
Quorum to provide business support, training,
development, technical assistance, and related
activities for LGBTQ+-owned small
businesses that are recipients of a PFund
Foundation grant. Of this amount, up to five
percent may be used for Quorum's technical
assistance and administrative costs. This is a
onetime appropriation and is available until
June 30, 2026.

(rr) $5,000,000 the first year is for a grant to
the Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services to
minority-owned businesses. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available the second year. Of this
amount:

(1) $3,000,000 is for a revolving loan fund to
provide additional minority-owned businesses
with access to capital; and

(2) $2,000,000 is for operating support
activities related to business development and
assistance services for minority business
enterprises.

By February 1, 2025, MEDA shall report to
the commissioner and the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development policy and finance on the loans
and operating support activities, including
outcomes and expenditures, supported by the
appropriation under this paragraph.

(ss) $2,500,000 each year is for a grant to a
Minnesota-based automotive component
manufacturer and distributor specializing in
electric vehicles and sensor technology that
manufactures all of their parts onshore to
expand their manufacturing. The grant
recipient under this paragraph shall submit
reports on the uses of the money appropriated,
the number of jobs created due to the
appropriation, wage information, and the city
and state in which the additional
manufacturing activity was located to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development. An initial report shall
be submitted by December 15, 2023, and a
final report is due by December 15, 2025. This
is a onetime appropriation.

(tt)(1) $125,000 each year is for grants to the
Latino Chamber of Commerce Minnesota to
support the growth and expansion of small
businesses statewide. Funds may be used for
the cost of programming, outreach, staffing,
and supplies. This is a onetime appropriation.

(2) By January 15, 2026, the Latino Chamber
of Commerce Minnesota must submit a report
to the legislative committees with jurisdiction
over economic development that details the
use of grant funds and the grant's economic
impact.

(uu) $175,000 the first year is for a grant to
the city of South St. Paul for repurposing the
1927 American Legion Memorial Library after
the property is no longer used as a library. This
appropriation is available until the project is
completed or abandoned, subject to Minnesota
Statutes, section 16A.642.

(vv) $250,000 the first year is for a grant to
LatinoLEAD for organizational
capacity-building.

(ww) $80,000 the first year is for a grant to
the Neighborhood Development Center for
small business competitive grants to software
companies working to improve employee
engagement and workplace culture and to
reduce turnover.

(xx)(1) $3,000,000 in the first year 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 forgivable loans, revenue-based
financing, and equity investments for
entrepreneurs with barriers to growth. Of this
amount, up to five percent may be used for
the center's technical assistance and
administrative costs. This appropriation is
available until June 30, 2025.

(2) By January 15, 2026, the Center for
Economic Inclusion shall submit a report on
the use of grant funds, including any loans
made, to the legislative committees with
jurisdiction over economic development.

(yy) $500,000 each year is for a grant to the
Asian Economic Development Association
for asset building and financial empowerment
for entrepreneurs and small business owners,
small business development and technical
assistance, and cultural placemaking. This is
a onetime appropriation new text begin that is available until
June 30, 2027 new text end .

(zz) $500,000 each year is for a grant to
Isuroon to support primarily African
immigrant women with entrepreneurial
training to start, manage, and grow
self-sustaining microbusinesses, develop
incubator space for these businesses, and
provide support with financial and language
literacy, systems navigation to eliminate
capital access disparities, marketing, and other
technical assistance. This is a onetime
appropriation.