SF 4481

2nd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/12/2020 01:24pm

A bill for an act
relating to economic development and state finances; appropriating money for
emergency small business grants and loans; reimbursing the Minnesota 21st century
minerals fund; adjusting the budget reserve forecast calculation; changing the fund
receiving small business loan repayments; making technical changes; amending
Minnesota Statutes 2018, section 16A.152, subdivision 2; Laws 2020, chapter 71,
article 1, section 11.

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

Section 1.

Minnesota Statutes 2018, section 16A.152, subdivision 2, is amended to read:

Subd. 2.

Additional revenues; priority.

(a) If on the basis of a forecast of general fund
revenues and expenditures, the commissioner of management and budget determines that
there will be a positive unrestricted budgetary general fund balance at the close of the
biennium, the commissioner of management and budget must allocate money to the following
accounts and purposes in priority order:

(1) the cash flow account established in subdivision 1 until that account reaches
$350,000,000;

(2) new text begin the Minnesota 21st century fund established in section 116J.423 until $20,000,000
has been transferred into the fund;
new text end

new text begin (3) new text end the budget reserve account established in subdivision 1a until that account reaches
deleted text begin $1,596,522,000 deleted text end new text begin $2,358,698,000 new text end ;

deleted text begin (3) deleted text end new text begin (4) new text end the amount necessary to increase the aid payment schedule for school district
aids and credits payments in section 127A.45 to not more than 90 percent rounded to the
nearest tenth of a percent without exceeding the amount available and with any remaining
funds deposited in the budget reserve; new text begin and
new text end

deleted text begin (4) deleted text end new text begin (5) new text end the amount necessary to restore all or a portion of the net aid reductions under
section 127A.441 and to reduce the property tax revenue recognition shift under section
123B.75, subdivision 5, by the same amount deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (5) the clean water fund established in section 114D.50 until $22,000,000 has been
transferred into the fund.
deleted text end

(b) The amounts necessary to meet the requirements of this section are appropriated
from the general fund within two weeks after the forecast is released or, in the case of
transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
schedules otherwise established in statute.

(c) The commissioner of management and budget shall certify the total dollar amount
of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education.
The commissioner of education shall increase the aid payment percentage and reduce the
property tax shift percentage by these amounts and apply those reductions to the current
fiscal year and thereafter.

(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been
made.

Sec. 2.

Laws 2020, chapter 71, article 1, section 11, is amended to read:

Sec. 11. TRANSFERS; SMALL BUSINESS EMERGENCY LOAN PROGRAM.

Notwithstanding Minnesota Statutes, sections 116J.423 and 116J.8731, in fiscal year
2020, the following amounts are transferred to the small business emergency loan account
in the special revenue fund under Minnesota Statutes, section 116M.18, subdivision 9:

(1) $20,000,000 from the special revenue fund account of the Minnesota 21st century
fund under Minnesota Statutes, section 116J.423, subdivision 1; and

(2) $10,000,000 from the Minnesota investment revolving loan account under Minnesota
Statutes, section 116J.8731, subdivision 5, in the special revenue fund.

Transferred amounts are appropriated to the commissioner of employment and economic
development to make loans as set forth in Governor's Executive Order 20-15, Providing
Immediate Relief to Small Businesses During the COVID-19 Peacetime Emergency. All
loan repayments are credited proportionately to the accounts from which the loan amounts
were originally transferred. new text begin Loan repayments credited to the special revenue fund account
of the Minnesota 21st century fund are transferred to the general fund. new text end Any amounts
remaining in the small business emergency loan account that are unexpended and unobligated
at the close of the fiscal year cancel proportionately to the accounts from which the amounts
were originally transferred.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text begin SMALL BUSINESS RELIEF GRANTS; APPROPRIATION.
new text end

new text begin (a) $60,000,000 in fiscal year 2020 is appropriated from the coronavirus relief fund to
the commissioner of employment and economic development for grants under paragraph
(b). Funds are available until December 30, 2020.
new text end

new text begin (b) Of the amount appropriated in paragraph (a):
new text end

new text begin (1) $30,000,000 is for a grant to the Minnesota Initiative Foundations to serve businesses
in greater Minnesota; and
new text end

new text begin (2) $30,000,000 is for grants to nonprofit corporations approved under the small business
emergency loan program pursuant to Laws 2020, chapter 71, section 11, to serve businesses
in the seven-county metropolitan area.
new text end

new text begin (c) No more than five percent of the amounts granted under paragraph (b) may be used
for administrative costs incurred from making grants under this section.
new text end

new text begin (d) Grant recipients under paragraph (b) shall use funds to make grants of up to $10,000
to individual businesses that:
new text end

new text begin (1) are located in the state of Minnesota and owned by a permanent resident of Minnesota;
new text end

new text begin (2) are in good standing with the secretary of state and the Department of Revenue;
new text end

new text begin (3) employ the equivalent of 50 full-time workers or less; and
new text end

new text begin (4) can demonstrate financial hardship as a result of the COVID-19 outbreak.
new text end

new text begin Grant funds received by individual businesses shall be used for working capital to support
payroll expenses, rent, mortgage payments, utility bills, and other similar expenses that
occur in the regular course of business.
new text end

new text begin (e) Of the amount granted under paragraph (b):
new text end

new text begin (1) a minimum of $18,000,000 must be awarded to businesses that employ the equivalent
of five full-time workers or less; and
new text end

new text begin (2) a minimum of $9,000,000 must be awarded to minority business enterprises, as
defined in Minnesota Statutes, section 116M.14, subdivision 5, businesses that are majority
owned and operated by veterans as defined in Minnesota Statutes, section 197.447, or
businesses that are majority owned and operated by women.
new text end

new text begin (f) Grants under this section may not be made to a business that previously received a
loan with funds appropriated in Laws 2020, chapter 71, article 1, section 11.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end