SF 1720

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/17/2023 09:35am

A bill for an act
relating to business development; codifying the small business partnership program;
appropriating money; requiring reports; proposing coding for new law in Minnesota
Statutes, chapter 116J.

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

Section 1.

new text begin [116J.8746] SMALL BUSINESS PARTNERSHIP 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) "Eligible business" means an entity that:
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new text begin (1) is a business, commercial cooperative, employee-owned business, or commercial
land trust; and
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new text begin (2) is either:
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new text begin (i) located in greater Minnesota;
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new text begin (ii) in the field of high technology; or
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new text begin (iii) at least 51 percent owned by people who are either:
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new text begin (A) Black, indigenous, or people of color;
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new text begin (B) women;
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new text begin (C) immigrants;
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new text begin (D) veterans;
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new text begin (E) people with disabilities; or
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new text begin (F) low-income.
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new text begin (d) "Program" means the small business partnership program established in this section.
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new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic development
shall establish a small business partnership program to make statewide grants to local and
regional community-based nonprofit organizations to support the start-up, growth, and
success of eligible businesses through the delivery of high-quality free or low-cost
professional business development and technical assistance services.
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new text begin Subd. 3. new text end

new text begin Grants to nonprofits. new text end

new text begin (a) Nonprofit organizations shall apply for grants using
a competitive process established by the commissioner.
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new text begin (b) All grants shall be made in the first year of the biennium and shall be for two years.
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new text begin (c) Up to ten percent of the grant amount may be used by the nonprofit for administrative
expenses.
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new text begin (d) Preference shall be given to applications from nonprofits that can demonstrate a
record of successful outcomes serving historically underserved communities or increasing
the upward economic mobility of clients.
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new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner may use up to five percent of program
funds for administering and monitoring the program.
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new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Grant recipients shall report to the commissioner each year they
receive grant funds. This report shall detail the use of grant funds and shall include data on
the number of individuals served and other measures of program impact, along with any
other information requested by the commissioner.
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new text begin (b) By January 15, 2025, and by January 15 each odd-numbered year thereafter, the
commissioner shall submit a report to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over business
development that details the use of program funds and the program's impact. This report is
in addition to the reporting required under section 3.195.
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Sec. 2. new text begin SMALL BUSINESS PARTNERSHIP PROGRAM; APPROPRIATION.
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new text begin $12,500,000 in fiscal year 2024 and $12,500,000 in fiscal year 2025 are appropriated
from the general fund to the commissioner of employment and economic development for
the small business partnership program under Minnesota Statutes, section 116J.8746.
new text end