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SF 2

as introduced - 87th Legislature, 2012 1st Special Session (2011 - 2012) Posted on 08/24/2012 01:55pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to disaster assistance; making miscellaneous corrections to the 2012
First Special Session flood relief legislation; amending Minnesota Statutes 2010,
section 116J.8731, subdivision 9, as added if enacted; 2012 First Special Session
H.F. 1, article 1, sections 5, if enacted; 10, subdivision 3, if enacted.


Section 1.

2012 First Special Session H.F. No. 1, article 1, section 5, if enacted,
is amended to read:


Minnesota Investment Fund

From the general fund to the commissioner
of employment and economic development
for Minnesota investment fund grants under
Minnesota Statutes, section 12A.07.

Before any grants under this section are
awarded to a local unit of government,
the commissioner of employment and
economic development shall report to the
chairs and ranking minority members of
the senate Finance Committee and house of
representatives Ways and Means Committee
the criteria and requirements to be used
by local units of government in the grant
or loan programs they will administer. All
business loan agreements must be executed
by December 31, 2013. deleted text beginAny uncommitted
balance remaining must be transferred to
the general fund.
deleted text endnew text begin Appropriations under this
section are available through December 31,
new text end

Sec. 2.

2012 First Special Session H.F. No. 1, article 1, section 10, subdivision 3,
if enacted, is amended to read:

Subd. 3.

Erosion, Sediment, and Water Quality
Control Cost-Share Program


From the general fund for the purposes
specified in Minnesota Statutes, section
12A.05, subdivision 2, in the area included
in DR-4069. Priority use of these funds shall
be to supplement or match federal funds
whenever possible and practical.

Wetland conservation procedures. For
projects funded in this deleted text beginsectiondeleted text endnew text begin articlenew text end, the
board may develop alternative standards and
procedures for Minnesota Statutes, sections
103G.222 to 103G.2242, that may be used
temporarily by local government units to
address emergency situations or disaster
recovery efforts in the area included in

Sec. 3.

Minnesota Statutes 2010, section 116J.8731, subdivision 9, as added by 2012
First Special Session H.F. No. 1, article 1, section 21, if enacted, is amended to read:

Subd. 9.

Requirements for assistance.

All awards under deleted text beginsubdivision 8deleted text endnew text begin section
new text end are subject to the following requirements.

(a) Eligible applicants include the following:

(1) Applicants may be any business or nonprofit organization in the area included
in the disaster declaration that was directly and adversely affected by the disaster. This
includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit
organizations, including those nonprofits that provide residential, health care, child care,
social, or other services on behalf of the Department of Human Services to residents
included in the disaster area.

(2) Business applicants must be organized as a proprietorship, partnership, LLC, or
a corporation.

(3) Applicants must have been in operation before the date of the disaster.

(b) Eligible activities. Loan funds may be used to assist businesses only in their
recovery efforts but are not available to provide relief from economic losses.

(c) Eligible costs. Eligible costs may include the following: repair of buildings,
leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.

(d) Ineligible activities:

(1) Ineligible applicants. Any applicants not meeting the eligibility requirements
outlined in this subdivision are ineligible to receive recovery loan funds.

(2) Ineligible activities. Funds may not be used for lending or investment operations,
land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.

(3) Ineligible costs. Ineligible costs include but are not limited to: economic injury
losses, relocation, management fees, financing costs, franchise fees, debt consolidation,
moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.

(e) Loan application:

(1) Application process. All parties seeking recovery loan funds must file an
application with the local unit of government. Small Business Administration (SBA)
application forms may be used. Applications must be transmitted in the form and manner
prescribed by the commissioner.

(f) Application information. Only completed applications will be reviewed for
consideration. Submittal of the following information constitutes a complete application:

(1) MIF recovery loan fund application;

(2) business SBA disaster application if applicable;

(3) regional development organization or responsible local government application,
if applicable;

(4) administrative contact;

(5) business release for local government to review SBA damage assessment/loss
verification, if applicable;

(6) proof of loss statement from insurer;

(7) construction cost estimates;

(8) invoices for work completed;

(9) quotes for equipment;

(10) proposed security;

(11) company historical financial statements for the 24 months immediately prior to
the application date;

(12) credit check release;

(13) number of jobs to be retained;

(14) wages paid;

(15) amount of loan request;

(16) documentation of damages incurred;

(17) property taxes paid and current;

(18) judgments, liens, agreements, consent decrees, stipulations for settlements, or
other such actions which would prevent the applicant from participating in any program
administered by the responsible local, state, or regional government;

(19) compliance with all applicable local ordinances and plans;

(20) documentation through financial and tax records that the business was a viable
operating entity at the time of the flood;

(21) business tax identification number; and

(22) other documentation as requested.

(g) Incomplete applications will be assigned pending status and the applicant will be
informed in writing of the missing documentation.

(h) Determination of eligibility. Applicant eligibility will be determined using
criteria enumerated in paragraph (a). A credit check for the company and each of its
principal owners may be conducted. An owner's encumbrance report will be completed
by the Recorder's Office.

A grant recipient is eligible for assistance provided under this section only after the
recipient has claimed all applicable private insurance and the recipient has utilized all other
sources of applicable assistance available under the act appropriating funding for the grant.