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SF 991

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:12am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to state government; appropriating money for projected budget deficiencies
for various state programs and other state government purposes; establishing the
small business COVID-19 loan program; requiring reports.

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

Section 1. new text beginAPPROPRIATION; ADMINISTRATIVE SPACE CONSOLIDATION
AND MOVING.
new text end

new text begin $5,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of administration to complete and implement a comprehensive strategic plan for locating
state agencies and for agency space consolidation, reconfiguration, and relocation costs.
This is a onetime appropriation and is available until June 30, 2023.
new text end

Sec. 2. new text beginAPPROPRIATION; DISASTER ASSISTANCE CONTINGENCY ACCOUNT.
new text end

new text begin $15,000,000 in fiscal year 2021 is appropriated to the commissioner of public safety
from the general fund for transfer to the disaster assistance contingency account established
under Minnesota Statutes, section 12.221, subdivision 6. This is a onetime appropriation.
new text end

Sec. 3. new text beginAPPROPRIATION; MINNESOTA ZOOLOGICAL BOARD.
new text end

new text begin $1,595,000 in fiscal year 2021 is appropriated from the general fund to the Minnesota
Zoological Board to supplement the appropriation in Laws 2019, First Special Session
chapter 4, article 1, section 7. This is a onetime appropriation and is available until June 30,
2023.
new text end

Sec. 4. new text beginAPPROPRIATION; DEPARTMENT OF PUBLIC SAFETY FOR COSTS
RELATED TO CIVIL UNREST.
new text end

new text begin Subdivision 1. new text end

new text begin Appropriations. new text end

new text begin The appropriations in this section are to the commissioner
of public safety. The amounts that may be spent for each purpose are specified in the
following subdivisions.
new text end

new text begin Subd. 2. new text end

new text begin Alcohol and Gambling Enforcement. new text end

new text begin $59,000 in fiscal year 2021 is
appropriated from the general fund for costs related to responding to civil unrest. This is a
onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Bureau of Criminal Apprehension. new text end

new text begin $299,000 in fiscal year 2021 is appropriated
from the general fund for costs related to responding to civil unrest. This is a onetime
appropriation.
new text end

new text begin Subd. 4. new text end

new text begin Capitol Security. new text end

new text begin $2,700,000 in fiscal year 2021 is appropriated from the
general fund for costs related to responding to civil unrest. This is a onetime appropriation.
new text end

new text begin Subd. 5. new text end

new text begin Patrolling highways. new text end

new text begin $2,382,000 in fiscal year 2021 is appropriated from the
trunk highway fund for costs related to responding to civil unrest. This is a onetime
appropriation.
new text end

Sec. 5. new text beginAPPROPRIATION; DEPARTMENT OF NATURAL RESOURCES FOR
COSTS RELATED TO CIVIL UNREST.
new text end

new text begin $2,585,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of natural resources for costs related to responding to civil unrest. This is a onetime
appropriation.
new text end

Sec. 6. new text beginAPPROPRIATION; SMALL BUSINESS COVID-19 LOAN PROGRAM.
new text end

new text begin (a) For purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "commissioner" means the commissioner of employment and economic development;
new text end

new text begin (2) "department" means the Department of Employment and Economic Development;
and
new text end

new text begin (3) "program" means the small business COVID-19 loan program established under this
section.
new text end

new text begin (b) $50,000,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner for transfer to the special revenue fund for grants to organizations to provide
forgivable loans under paragraph (c). Funds are available until December 30, 2021. Any
unspent funds are canceled to the general fund December 31, 2021.
new text end

new text begin (c) Of the amounts appropriated in paragraph (b):
new text end

new text begin (1) $24,900,000 is for a grant to the Minnesota Initiative Foundations to provide loans
for businesses in greater Minnesota;
new text end

new text begin (2) $24,900,000 is for grants to nonprofit corporations that meet the criteria under the
COVID-19 small business emergency loan program pursuant to Laws 2020, chapter 71,
article 1, section 11, to serve businesses in the seven-county metropolitan area. The
department must select from the approved lenders a list of those lenders that have the capacity
to operate the program; and
new text end

new text begin (3) $200,000 is to provide staff support for the program at the department.
new text end

new text begin (d) On the placing of a loan under the program, the lender may keep an amount equal
to ten percent of the loan for the purpose of administrative costs.
new text end

new text begin (e) In making loans, interest may not be charged on loans made in the program by any
of the lenders in paragraph (c), and no fees may be imposed other than those approved by
the department.
new text end

new text begin (f) Up to 50 percent of a loan may be forgiven if the commissioner approves and the
business remains operating in the community at substantially the same levels for two years
following loan disbursement. Any reduction in operations will result in the loan being
forgiven on a proportional basis.
new text end

new text begin (g) The commissioner is authorized to accept applications from additional nonprofit
corporation lenders to administer loans in the program.
new text end

new text begin (h) Lenders participating in the program must provide quarterly reports of small business
COVID-19 loans to the commissioner that include a description of businesses supported
by the program, an accounting of the loans made during the quarter, the source and amount
of money collected and distributed by the program, the program's assets and liabilities, and
an explanation of administrative expenses.
new text end

new text begin (i) Grant recipients under paragraph (c) must use funds to make loans of between $5,000
and up to $100,000 to individual businesses that:
new text end

new text begin (1) have primary business operations located in the state of Minnesota;
new text end

new text begin (2) are owned by a resident of the state of Minnesota;
new text end

new text begin (3) employ the equivalent of 100 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 Loan funds received by individual businesses must be used for working capital to support
payroll expenses, rent or mortgage payments, utility bills, and other similar expenses that
occur or have occurred since November 1, 2020, in the regular course of business. The loan
must not be used to refinance debt that existed at the time of the governor's COVID-19
peacetime emergency declaration. No matching contribution is required.
new text end

new text begin (j) Of the amount loaned under paragraph (c):
new text end

new text begin (1) a minimum of $10,000,000 must be awarded to businesses that employ the equivalent
of six full-time workers or less;
new text end

new text begin (2) a minimum of $10,000,000 must be awarded to minority business enterprises, as
defined in Minnesota Statutes, section 116M.14, subdivision 5; and
new text end

new text begin (3) a minimum of $3,000,000 is for loans to operators of a privately owned permanent
indoor retail space and food market that has an ethnic cultural emphasis having at least 12
tenants primarily comprised of businesses with fewer than 20 employees. Loans under this
clause: (i) may be made for up to $250,000 per operator, and of that amount, all but $20,000
of the loan must be made as credits to existing tenants of the operator; (ii) must be used
primarily for maintaining existing tenants; and (iii) require that at least 40 percent of the
loan be used to forgive the rent of existing tenants. A tenant who receives benefits from this
loan is subject to the requirements in paragraph (i), clauses (1) to (4), only.
new text end

new text begin (k) Eligible businesses may not receive more than one loan under this section.
new text end

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

new text begin (m) All loan recipients must include as part of their applications a business plan that
includes a path for continued operations and success in repayment of the loan.
new text end

new text begin (n) Loans and the process of making loans under this section are exempt from Minnesota
Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98, subdivisions 5, 7, and 8. The
commissioner must audit the use of loan funds under this section in accordance with standard
accounting practices. The exemptions under this paragraph expire on December 30, 2021.
new text end

new text begin (o) Any funds not spent by the lenders in paragraph (c) by December 31, 2021, must be
returned to the department to be canceled back to the general fund.
new text end

new text begin (p) By February 15, 2022, the commissioner must report to the legislative committees
with jurisdiction over economic development policy and finance on the loans provided to
borrowers under this section.
new text end

new text begin (q) By February 15, 2022, and each year thereafter, the commissioner must report to the
commissioner of management and budget the total amount of loan repayment funds expected
to be received in the current fiscal year.
new text end

new text begin (r) By June 30, 2022, and each year thereafter, all loan repayment funds under this section
must be canceled to the general fund until all loans have been repaid.
new text end

Sec. 7. new text beginSTATE PARKING ACCOUNT.
new text end

new text begin Notwithstanding Laws 2014, chapter 287, section 25, as amended by Laws 2015, chapter
77, article 2, section 78, for fiscal years 2021 and 2022, the state parking account is not
required to make the transfer to the general fund mandated by Laws 2014, chapter 287,
section 25, as amended by Laws 2015, chapter 77, article 2, section 78.
new text end

Sec. 8. new text beginEFFECTIVE DATE.
new text end

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