SF 1222

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the environment; establishing a small 
  1.3             business environmental loan program; providing for 
  1.4             rulemaking; appropriating money; proposing coding for 
  1.5             new law in Minnesota Statutes, chapter 116. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116.991] [SMALL BUSINESS ENVIRONMENTAL LOAN 
  1.8   PROGRAM.] 
  1.9      Subdivision 1.  [ESTABLISHMENT.] A small business 
  1.10  environmental revolving loan program is established to provide 
  1.11  loans to small businesses for purposes of complying with the 
  1.12  Clean Air Act, United States Code, title 42, section 7401, et 
  1.13  seq.  
  1.14     Subd. 2.  [RULES.] (a) The commissioner may adopt rules 
  1.15  regarding practices and procedures including, but not limited to:
  1.16     (1) form and procedure for loan application; 
  1.17     (2) terms for loans and repayment; and 
  1.18     (3) criteria for eligibility.  
  1.19     (b) The commissioner may adopt emergency rules under this 
  1.20  subdivision until July 1, 1997.  
  1.21     Subd. 3.  [ELIGIBLE BORROWER.] To be eligible for a loan 
  1.22  under this section, a borrower must:  
  1.23     (1) be subject to Clean Air Act requirements; 
  1.24     (2) need to make a process change or equipment purchase to 
  1.25  comply with the Clean Air Act; 
  2.1      (3) be the owner or operator of a small business; 
  2.2      (4) have less than 50 full-time employees; 
  2.3      (5) have an after-tax profit of less than $500,000; and 
  2.4      (6) have a net worth of less than $1,000,000.  
  2.5      Subd. 4.  [LOAN APPLICATION PROCEDURE.] An eligible 
  2.6   borrower may apply for a loan after the commissioner determines 
  2.7   the business to be subject to Clean Air Act requirements and 
  2.8   approves the process change or equipment needed to achieve 
  2.9   compliance.  Loans will be awarded to eligible borrowers in the 
  2.10  order that applications are received by the agency.  
  2.11     Subd. 5.  [LIMITATION ON LOAN OBLIGATION.] A loan made 
  2.12  under this section is limited to the money available in the 
  2.13  small business environmental loan account.  
  2.14     Subd. 6.  [LOAN CONDITIONS.] A loan made under this section 
  2.15  must include:  
  2.16     (1) an interest rate that is the lesser of four percent or 
  2.17  50 percent of prime rate; 
  2.18     (2) a term of payment of not more than seven years; and 
  2.19     (3) an amount not less than $1,000 or more than $50,000.  
  2.20     Sec. 2.  [116.992] [SMALL BUSINESS ENVIRONMENTAL LOAN 
  2.21  ACCOUNT.] 
  2.22     The small business environmental loan account is 
  2.23  established in the environmental fund.  Loan repayments must be 
  2.24  credited to this account.  
  2.25     Sec. 3.  [APPROPRIATION.] 
  2.26     Up to $200,000 in fiscal year 1996 and $200,000 in fiscal 
  2.27  year 1997 shall be transferred from the pollution control 
  2.28  agency's air quality appropriation to the small business 
  2.29  revolving loan account.