HF 6

1st Engrossment - 91st Legislature, 2020 1st Special Session (2019 - 2020) Posted on 06/20/2020 06:24pm

A bill for an act
relating to economic development; creating a program to award grants to cities
for programs to assist entities harmed by civil unrest; requiring reports;
appropriating money.

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

Section 1. new text begin CIVIL UNREST IMMEDIATE RELIEF PROGRAM.
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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.
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new text begin (b) "Commissioner" means the commissioner of employment and economic development.
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new text begin (c) "Community organization" means an organization that has the experience and capacity
to make grants and loans to entities under this section, including providing outreach to
affected populations and technical assistance to applicants. The cities of Minneapolis and
St. Paul qualify as community organizations under this section.
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new text begin (d) "Entity" includes any business or nonprofit organization. This includes businesses,
cooperatives, utilities, industrial, commercial, retail, and nonprofit organizations.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a program to make grants to
community organizations to develop and implement local economic relief programs designed
with the primary goal of assisting areas adversely affected by civil unrest during the
peacetime emergency declared in governor's Executive Order No. 20-64 by preserving
incumbent entities and encouraging new entities to locate in those areas. To this end, local
programs should include outreach to cultural communities, support for microenterprises,
and preferences for entities that were already under stress from the COVID-19 peacetime
emergency.
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new text begin Subd. 3. new text end

new text begin Available relief. new text end

new text begin (a) The local programs established by community organizations
under this section may include grants or loans as provided in this section. Prior to awarding
a grant to a community organization for a local program under this section:
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new text begin (1) the community organization must develop criteria, procedures, and requirements
for:
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new text begin (i) determining eligibility for assistance;
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new text begin (ii) the duration, terms, underwriting and security requirements, and repayment
requirements for loans;
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new text begin (iii) evaluating applications for assistance;
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new text begin (iv) awarding assistance; and
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new text begin (v) administering the grant and loan programs authorized under this section;
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new text begin (2) the community organization must submit its criteria, procedures, and requirements
developed pursuant to clause (1) to the commissioner of employment and economic
development for review; and
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new text begin (3) the commissioner must approve the criteria, procedures, and requirements as
developed pursuant to clause (1) to be used by a community organization in determining
eligibility for assistance, evaluating, awarding, and administering a grant and loan program.
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new text begin (b) The relief authorized under this section includes:
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new text begin (1) grants to entities. These grants are not to exceed $250,000 per entity. Grants may be
awarded to applicants only when a community organization determines that a loan is not
appropriate to address the needs of the applicant; and
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new text begin (2) loans to entities, with or without interest, and deferred or forgivable loans. The
maximum loan amount under this subdivision is $500,000 per entity. The lending criteria
adopted by a community organization for loans under this subdivision must:
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new text begin (i) specify that an entity receiving a deferred or forgivable loan must remain in the local
community a minimum of three years after the date of the loan. The maximum loan deferral
period must not exceed three years from the date the loan is approved; and
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new text begin (ii) require submission of a plan for continued operation. The plan must document the
probable success of the applicant's plan and probable success in repaying the loan according
to the terms established for the loan program.
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new text begin (c) All loan repayment funds under this subdivision must be paid to the commissioner
of employment and economic development for deposit in the general fund.
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new text begin Subd. 4. new text end

new text begin Monitoring and reporting. new text end

new text begin (a) Participating community organizations must
establish performance measures that include but are not limited to the following components:
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new text begin (1) the number of loans approved and the amounts and terms of the loans;
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new text begin (2) the number of grants awarded, award amounts, and the reason that a grant award
was made in lieu of a loan;
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new text begin (3) the loan default rate;
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new text begin (4) 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;
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new text begin (5) the amount of business activity and changes in gross revenues of the grant or loan
recipient as a result of the assistance; and
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new text begin (6) the new tax revenue generated as a result of the assistance.
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new text begin (b) The commissioner of employment and economic development must monitor the
participating community organizations' compliance with this section and the performance
measures developed under paragraph (a).
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new text begin (c) Participating community organizations must comply with all requests made by the
commissioner under this section.
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new text begin (d) By December 15 of each year the program is in existence, participating community
organizations must report their performance measures to the commissioner. By January 15
of each year the program is in existence, after the first, the commissioner must submit a
report of these performance measures to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over economic
development that details the use of funds under this section.
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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. Entities in receipt of assistance under
this section must provide for job creation and retention goals and wage and benefit goals.
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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 four percent of the appropriation made for this section for
administrative expenses of the department or for assisting participating community
organizations with their administrative expenses.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires the day after the last loan is repaid or forgiven as provided under this section.
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Sec. 2. new text begin CIVIL UNREST IMMEDIATE RELIEF PROGRAM.
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new text begin $167,570,000 in fiscal year 2020 is appropriated from the general fund to the
commissioner of employment and economic development for the civil unrest immediate
relief program. Of this amount, $17,500,000 is for a grant to the city of Minneapolis and
$17,500,000 is for a grant to the city of St. Paul. Of the amount granted to the city of
Minneapolis, $5,000,000 is for the city to acquire and hold property, either directly or
through an appropriate entity, in the area of the Lake Street business corridor to prevent
displacement, retain existing businesses, and maintain the character of the community. Of
the amount granted to the city of St. Paul, $5,000,000 is for the city to acquire and hold
property, either directly or through an appropriate entity, in affected areas to prevent
displacement, retain existing businesses, and maintain the character of the community. This
is a onetime appropriation and is available until June 30, 2021.
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new text begin EFFECTIVE DATE. new text end

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