SF 4027

1st Unofficial Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/18/2024 12:58pm

A bill for an act
relating to labor; appropriating money for a rideshare drivers fund program.

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

Section 1. new text begin APPROPRIATION; RIDESHARE DRIVERS FUND PROGRAM.
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new text begin (a) $2,000,000 in fiscal year 2025 is appropriated from the workforce development fund
to the commissioner of employment and economic development for a rideshare drivers fund
program. This appropriation is onetime.
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new text begin (b) The definitions in Minnesota Statutes, section 65B.472, subdivision 1, apply to this
section.
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new text begin (c) A rideshare drivers fund program is established to make loans to TNC drivers to
purchase a personal vehicle for the purposes of providing rideshare services. The
commissioner of employment and economic development must award grants to community
development financial institutions or comparable nonprofit corporations for the grantees to
make loans to TNC drivers.
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new text begin (d) To qualify for a loan under this section, a TNC driver must:
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new text begin (1) have been a TNC driver for at least one year prior to the loan application;
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new text begin (2) have a household income that does not exceed $80,000;
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new text begin (3) demonstrate ability to repay the loan;
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new text begin (4) agree to maintain all legally required vehicle insurance, including personal liability
insurance, on the personal vehicle purchased with the loan;
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new text begin (5) agree to keep vehicle registration current on the vehicle purchased with the loan;
and
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new text begin (6) agree to any other terms set by the lender.
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new text begin (e) The rideshare drivers fund program account is created as an account in the special
revenue fund. The commissioner of employment and economic development may exercise
the powers in Minnesota Statutes, section 116J.035, subdivision 6, for the purposes of this
section, and any gifts, grants, or loans received must be deposited in the rideshare drivers
fund program account. Funds in the rideshare drivers fund program account are appropriated
to the commissioner of employment and economic development for grants under this section.
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new text begin (f) A grantee under this section may use up to ten percent of the grant for administrative
costs. Loans must be zero interest and no more than $15,000, except that a loan for a
wheelchair-accessible vehicle may be up to $20,000. Loans must have no prepayment
penalties and must have flexible collateral requirements compared to traditional loans. Loans
must be for no shorter than six months and no longer than five years. A grantee may set
loan terms, subject to approval by the commissioner of employment and economic
development. Repayment on any loans must be paid by the grantee to the commissioner of
employment and economic development for deposit in the rideshare drivers fund program
account.
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