SF 3593

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2022 09:43am

A bill for an act
relating to economic development; establishing a nonprofit relief grant program;
requiring a report; appropriating money.

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

Section 1. new text begin MINNESOTA NONPROFIT RELIEF GRANTS; APPROPRIATION.
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new text begin (a) $200,000,000 in fiscal year 2023 is appropriated from the ..... fund to the commissioner
of employment and economic development for grants under this section to nonprofits
experiencing financial hardship as a result of the COVID-19 pandemic. Of the total amount,
half is for eligible nonprofits in the seven-county metropolitan area and half is for eligible
nonprofits outside the seven-county metropolitan area. The commissioner of employment
and economic development shall make grants to the Saint Paul & Minnesota Foundation
and the six Minnesota Initiative Foundations, as intermediaries, to support distribution of
funds as a result of the randomized selection process described in paragraph (e).
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new text begin (b) Of this amount:
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new text begin (1) $150,000 is for the commissioner of employment and economic development to
administer the program; and
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new text begin (2) up to five percent may be used by the intermediaries for administrative costs incurred
to administer the program. Thirty percent of allowable administrative expenses must be
made available to intermediaries up front to ensure intermediaries have the infrastructure
and staffing in place to efficiently administer this program. The schedule for payment of
the remaining allowable administrative expenses must be determined by the commissioner
of employment and economic development in consultation with the intermediaries.
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new text begin (c) To be eligible for a grant under this section, a nonprofit must:
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new text begin (1) be located in the state of Minnesota;
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new text begin (2) provide the organization's federal taxpayer ID number (EIN);
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new text begin (3) be a 501(c)(3) public charity; provide evidence of a submitted application for 501(c)(3)
status awaiting approval if dated before December 31, 2019; or provide written fiscal sponsor
agreement signed by the 501(c)(3) fiscal sponsor and the sponsored organization;
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new text begin (4) be currently registered with and have no current tax liens on record with the secretary
of state as of the time of application for a grant;
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new text begin (5) not be a hospital, private school, credit union, house of worship, or institution of
higher education;
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new text begin (6) be eligible for state sales tax exemption; and
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new text begin (7) be able to prove financial hardship as a result of the COVID-19 pandemic by showing
one of the following:
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new text begin (i) a decline in total revenue, as reported by the nonprofit on the federal Internal Revenue
Services Form 990, of at least ten percent from 2019 to 2020 or from 2019 to 2021;
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new text begin (ii) an increase in total expenses, as reported by the nonprofit on the federal Internal
Revenue Services Form 990, of at least ten percent from 2019 to 2020 or from 2019 to 2021;
or
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new text begin (iii) that the nonprofit fits into the categories of organizations that were directly impacted
by an executive order related to the COVID-19 pandemic. Categories of impacted
organizations include all human service organizations as defined in paragraph (i) as well
as other categories of nonprofit organizations as determined by the commissioner of
employment and economic development in consultation with the intermediaries.
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new text begin (d) Nonprofits may use grant funds under this section for working capital to support
providing continued or expanded services, including the expenses of payroll, rent, mortgage,
utilities, and other similar expenses that occur in the regular course of operations.
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new text begin (e) The commissioner of employment and economic development shall develop criteria,
forms, and applications necessary to issue these grants. The commissioner shall work with
nonprofit partners to ensure that all criteria, forms, applications, and reporting requirements
are appropriate for the nonprofit entities and create similar accountability standards as the
Small Business Relief Grants program administered by the Department of Employment and
Economic Development under Laws 2020, First Special Session chapter 1, section 4. The
commissioner shall accept applications and complete a randomized selection process to
determine award recipients.
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new text begin (f) To be eligible for a grant under this section, a nonprofit must meet the criteria listed
in paragraph (c) and one of the following criteria:
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new text begin (1) be headquartered outside the seven-county metropolitan area and have organizational
revenue for fiscal year 2019 of equal to or less than $1,500,000;
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new text begin (2) provide human services and have organizational revenue for fiscal year 2019 of equal
to or less than $1,500,000;
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new text begin (3) provide human services and have organizational revenue for fiscal year 2019 between
$1,500,000 and $5,000,000;
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new text begin (4) provide human services and have organizational revenue for fiscal year 2019 between
$5,000,001 and $35,000,000;
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new text begin (5) be a culturally specific organization, defined as primarily serving historically
underserved cultural communities and possessing two out of the three following criterion:
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new text begin (i) the organization's governing board has a majority representation of the base community
or communities it serves;
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new text begin (ii) the majority of the people who interact with the organization as clients are from the
base cultural community or communities the organization serves; and
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new text begin (iii) either a majority of the leadership staff or a majority of the entire staff are from the
base cultural community or communities the organization serves; or
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new text begin (6) meet the basic eligibility requirements listed in paragraph (c).
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new text begin (g) The amounts available for grants for each category listed in paragraph (f) are allocated
by the following percentages and grant award amounts:
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new text begin (1) for grants awarded to a nonprofit eligible under paragraph (f), clause (1), 15 percent
of the amounts available for grants and the grant award per grant is $50,000;
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new text begin (2) for grants awarded to a nonprofit eligible under paragraph (f), clause (2), 40 percent
of the amounts available for grants and the grant award per grant is $50,000;
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new text begin (3) for grants awarded to a nonprofit eligible under paragraph (f), clause (3), 12.5 percent
of the amounts available for grants and the grant award per grant is $100,000;
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new text begin (4) for grants awarded to a nonprofit eligible under paragraph (f), clause (4), 12.5 percent
of the amounts available for grants and the grant award per grant is $150,000;
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new text begin (5) for grants awarded to a nonprofit eligible under paragraph (f), clause (5), ten percent
of the amounts available for grants and the grant award per grant is $75,000; and
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new text begin (6) for grants awarded to a nonprofit eligible under paragraph (f), clause (6), ten percent
of the amounts available for grants and the grant award per grant is $50,000.
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new text begin (h) Any amounts not awarded for the categories listed in paragraph (f), clauses (1) to
(5), as allocated under paragraph (g) by ....., 2022, shall be eligible for awards to eligible
nonprofits under paragraph (f), clause (6).
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new text begin (i) For purposes of this section, "human services" includes one or more of the following
categories:
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new text begin (1) community health services, including medical and dental services;
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new text begin (2) services for those experiencing housing insecurity and homelessness, including those
making homes safe for occupancy;
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new text begin (3) food insecurity and food assistance services;
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new text begin (4) services for youth and families in crisis;
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new text begin (5) services providing advocacy, safety, and protection from abuse;
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new text begin (6) behavioral health and chemical dependency services;
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new text begin (7) income assistance, employment services, or job training;
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new text begin (8) services for individuals with physical or developmental disabilities;
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new text begin (9) educational support services;
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new text begin (10) services for aging adults;
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new text begin (11) mental health services;
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new text begin (12) technology access services to support educational, employment, and telehealth
access; and
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new text begin (13) childcare.
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new text begin (j) Nonprofits eligible for grants in the categories provided in paragraph (f), clause (2),
(3), or (4), that operate from more than one location may apply for a grant for each
nonheadquarter location in the category provided in paragraph (f), clause (2). Headquarter
locations should apply in the applicable clause provided under paragraph (f), clause (2),
(3), or (4).
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new text begin (k) Grants and the process of making grants under this section are exempt from the
following statutes and related policies: Minnesota Statutes, sections 16A.15, subdivision 3;
16B.97; and 16B.98, subdivisions 5, 7, and 8.
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new text begin (l) Priority in awarding grants may be given to eligible nonprofits that did not receive a
grant under Laws 2020, Seventh Special Session chapter 2, article 5.
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new text begin (m) By December 31, 2023, the commissioner of employment and economic development
shall submit a report to the chairs and ranking minority members of the legislative committees
with jurisdiction over economic development detailing the use of funds under this section.
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new text begin (n) Any funds not awarded as grants by the intermediaries by June 20, 2023, must be
returned to the commissioner and canceled back to the general fund.
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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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