SF 4481

3rd Engrossment - 91st Legislature (2019 - 2020) Posted on 05/13/2020 08:09am

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) the budget reserve account established in subdivision 1a until that account reaches
$1,596,522,000;

(3) 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;

(4) 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

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

new text begin (6) the amount necessary to increase the Minnesota 21st century fund by not more than
the difference between $5,000,000 and the sum of the amounts credited and canceled to it
in the previous 12 months under Laws 2020, chapter 71, article 1, section 11, until the sum
of all transfers under this section and all amounts credited or canceled under Laws 2020,
chapter 71, article 1, section 11, equals $20,000,000.
new 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.

new text begin (a) new text end 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. 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 (b) Beginning the day following the day in which the total amount transferred under
Minnesota Statutes, section 16A.152, and from repayments of loans and cancellations of
funds under this section to the Minnesota 21st century fund equals $20,000,000, all further
repayments of loans to the Minnesota 21st century fund under this section are transferred
to the general fund.
new text end

Sec. 3. new text begin SMALL BUSINESS EMERGENCY LOAN PROGRAM; TRANSFER.
new text end

new text begin $2,400,000 in fiscal year 2020 is transferred from the loan guarantee trust fund account
in the special revenue fund under Minnesota Statutes, section 116J.881, subdivision 4, to
the commissioner of employment and economic development for grants under section 4.
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

Sec. 4. new text begin SMALL BUSINESS RELIEF GRANTS; APPROPRIATION.
new text end

new text begin (a) $57,600,000 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) and transferred in section 3:
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 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 $2,400,000 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) have a permanent physical location;
new text end

new text begin (3) are in good standing with the secretary of state and the Department of Revenue;
new text end

new text begin (4) employ the equivalent of 50 full-time workers or less; and
new text end

new text begin (5) 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 six full-time workers or less; and
new text end

new text begin (2) a minimum of $15,000,000 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. Eligible
businesses may not receive more than one grant under this section.
new text end

new text begin (g) The commissioner may develop criteria, forms, applications, and reporting
requirements for use by the grantees in paragraph (b).
new text end

new text begin (h) Grants under paragraph (d) must be awarded by lottery after applications are collected
over a period of no more than ten calendar days.
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