SF 2504

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

  1.1                          A bill for an act 
  1.2             relating to economic development; imposing certain 
  1.3             conditions for the use of economic recovery grants; 
  1.4             amending Minnesota Statutes 1994, section 116J.873, 
  1.5             subdivision 4; Minnesota Statutes 1995 Supplement, 
  1.6             section 116J.873, subdivision 3. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1995 Supplement, section 
  1.9   116J.873, subdivision 3, is amended to read: 
  1.10     Subd. 3.  [GRANT EVALUATION.] The commissioner shall 
  1.11  accept, review, and evaluate applications for grants to local 
  1.12  units of government made in accordance with rules adopted for 
  1.13  economic development grants in the small cities development 
  1.14  program.  Projects must be evaluated based on the existence of 
  1.15  the following conditions: 
  1.16     (1) whether assistance is necessary to provide equity to 
  1.17  business owners who do not have the capacity to invest in a 
  1.18  project; 
  1.19     (2) whether there is an inability to secure sufficient 
  1.20  financing from other public or private sources at market 
  1.21  interest rates or on favorable market terms; 
  1.22     (3) whether assistance is necessary to attract out-of-state 
  1.23  businesses or to retain existing business within the state; and 
  1.24     (4) whether there are excessive public infrastructure or 
  1.25  improvement costs beyond the means of the affected community and 
  1.26  private participants in the project. 
  2.1      A grant or loan cannot may be made based solely on a 
  2.2   finding that the condition in clause (3) exists, but the grant 
  2.3   or loan may be used only for workforce training.  For any other 
  2.4   use of a grant or loan, a finding must be made that a condition 
  2.5   in clause (1), (2), or (4) also exists. 
  2.6      Applications recommended for funding shall must be 
  2.7   submitted to the commissioner. 
  2.8      Sec. 2.  Minnesota Statutes 1994, section 116J.873, 
  2.9   subdivision 4, is amended to read: 
  2.10     Subd. 4.  [GRANT LIMITS.] An economic recovery grant may 
  2.11  not be approved for an amount over in excess of $500,000.  If 
  2.12  the amount of the a requested grant is reduced to less than 
  2.13  $500,000, the reasons for the reduction shall must be given to 
  2.14  the applicant.  The portion of an economic recovery grant that 
  2.15  exceeds $100,000 must be repaid to the state when it is repaid 
  2.16  to the local community or recognized Indian tribal government by 
  2.17  the person or entity to which it was loaned by the local 
  2.18  community or Indian tribal government.  Money repaid to the 
  2.19  state must be credited to the general fund.  A grant may not be 
  2.20  loaned to a person or entity for the operation or expansion of a 
  2.21  business involved solely or principally in retail sales.  
  2.22  Persons or entities receiving loans must pay their employees at 
  2.23  a rate equal to at least 175 percent of the minimum wage set by 
  2.24  section 177.24, subdivision 1.