SF 270

as introduced - 89th Legislature (2015 - 2016) Posted on 02/03/2015 08:45am

A bill for an act
relating to transportation; establishing a business relocation revolving loan fund
for businesses displaced due to a trunk highway or rail project; appropriating
money; proposing coding for new law in Minnesota Statutes, chapter 161.

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

Section 1.

new text begin [161.443] BUSINESS RELOCATION REVOLVING LOAN FUND.
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new text begin Subdivision 1. new text end

new text begin Establishment and purpose of fund. new text end

new text begin A business relocation
revolving loan fund is established in the state treasury. Money in the fund is for loans to
relocate businesses displaced as a result of a trunk highway or rail project that causes the
business substantial impairment of road access, parking, or visibility. The commissioner
of transportation shall manage and administer the fund. Money in the fund is annually
appropriated to the Department of Transportation and does not lapse. The fund must be
credited with investment income, and with repayments of principal and interest.
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new text begin Subd. 2. 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) "Business" is a lawful activity, whether for profit or nonprofit, excluding a farm
operation, conducted primarily for:
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new text begin (1) purchase, sale, lease, or rental of personal or real property, and for the
manufacture, processing, or marketing of products, commodities, or other personal
property; or
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new text begin (2) sale of services to the public.
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new text begin (c) "Eligible expenses" are:
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new text begin (1) actual, reasonable expenses in moving the business;
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new text begin (2) actual, direct, reasonable losses of tangible personal property as a result of
moving a business;
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new text begin (3) actual, reasonable expenses in searching for a replacement business location; and
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new text begin (4) actual, reasonable expenses necessary to reestablish a business at its new site.
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new text begin Subd. 3. new text end

new text begin Maximum loan amount. new text end

new text begin A loan from the business relocation revolving
loan fund may not exceed the lesser of $....... or the total of eligible expenses, as
determined by the commissioner.
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new text begin Subd. 4. new text end

new text begin Applications and eligibility requirements. new text end

new text begin An applicant for a loan must
submit an application to the commissioner on forms prescribed by the commissioner.
An eligible applicant must provide the following information to the satisfaction of the
commissioner:
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new text begin (1) the estimated amount of eligible expenses and the amount of the loan sought;
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new text begin (2) other possible sources of funding, including payments through eminent domain,
in addition to loans sought from the business relocation revolving loan fund;
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new text begin (3) proposed methods and sources of funds to be used for repayment of loans received;
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new text begin (4) information showing the financial status and ability of the applicant to repay
the loan;
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new text begin (5) proof of maintenance of property insurance;
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new text begin (6) property taxes paid and current; and
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new text begin (7) freedom from judgments, liens, agreements, consent decrees, or stipulations for
settlement that could affect the applicant's ability to repay the loan.
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new text begin Subd. 5. new text end

new text begin Loan conditions. new text end

new text begin A loan made under this section must:
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new text begin (1) bear interest at or below market rates;
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new text begin (2) have a repayment term not longer than 20 years; and
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new text begin (3) be subject to repayment of principal and interest beginning not later than two
years after the business relocation has taken place.
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Sec. 2. new text begin APPROPRIATION.
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new text begin $10,000,000 is appropriated in fiscal year ....... to the commissioner of transportation
from the general fund for deposit in the business relocation revolving loan fund established
in section 1.
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Sec. 3. new text begin EFFECTIVE DATE.
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new text begin Sections 1 and 2 are effective July 1, 2015.
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