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SF 3712

as introduced - 91st Legislature (2019 - 2020) Posted on 02/27/2020 03:44pm

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

Current Version - as introduced

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A bill for an act
relating to economic development; establishing the northern resorts relief loan
program; requiring reports; appropriating money; proposing coding for new law
in Minnesota Statutes, chapter 116J.

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

Section 1.

new text begin [116J.441] NORTHERN RESORTS RELIEF PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic
development shall establish the northern resorts relief program to award low-interest loans
to businesses adversely affected by winter weather conditions.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Eligible business" means a business that:
new text end

new text begin (1) provides lodging for winter recreational activity such as ice fishing or snowmobiling;
new text end

new text begin (2) can document a reduction of ten percent or more in gross receipts during the winter
of 2019-2020 due to poor ice or snow conditions; and
new text end

new text begin (3) is located within the counties of Beltrami, Cass, Hubbard, Itasca, or St. Louis.
new text end

new text begin (d) "Program" means the northern resorts relief program established under this section.
new text end

new text begin Subd. 3. new text end

new text begin Available relief. new text end

new text begin (a) Under the program, the commissioner shall offer loans to
eligible businesses. Loans shall include interest at a rate determined by the commissioner
and may be deferred or forgivable. The maximum loan amount is $100,000 per business.
The maximum loan deferral period must not exceed five years from the date the loan is
approved. The maximum amount of a loan that may be forgiven must not exceed 50 percent
of the principle amount.
new text end

new text begin (b) All loan repayments under this section must be paid to the commissioner for deposit
in the Minnesota investment fund disaster contingency account under section 116J.8731.
new text end

new text begin Subd. 4. new text end

new text begin Applications. new text end

new text begin To receive a loan, an eligible business must submit a written
application to the commissioner using a form developed by the commissioner. This loan
application must include:
new text end

new text begin (1) a declaration that the business qualifies as an eligible business;
new text end

new text begin (2) documentation of the reduction in gross receipts during the winter of 2019-2020;
new text end

new text begin (3) what the loan funds will be used for;
new text end

new text begin (4) a business plan for continued operation of the eligible business if current weather
trends continue;
new text end

new text begin (5) an analysis of the probable success of the applicant's business plan and probable
success in repaying the loan according to the terms established for the loan program; and
new text end

new text begin (6) any additional information requested by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Reports to the legislature. new text end

new text begin By February 15, 2022, and by February 15 of every
even year until all loans are either repaid or forgiven, the commissioner shall submit a report
to the chairs of the house of representatives and senate committees with jurisdiction over
economic development that details the use of loan funds. At a minimum, the report must
include:
new text end

new text begin (1) the number of loans approved and the amounts and terms of the loans;
new text end

new text begin (2) the loan default rate;
new text end

new text begin (3) the number of jobs created or retained as a result of the assistance, including
information on the wages and benefit levels, the status of the jobs as full-time or part-time,
and the status of the jobs as temporary or permanent;
new text end

new text begin (4) the amount of business activity and changes in gross revenues of the loan recipients
as a result of the assistance; and
new text end

new text begin (5) the new tax revenue generated as a result of the assistance.
new text end

new text begin Subd. 6. new text end

new text begin Business subsidy requirements. new text end

new text begin Sections 116J.993 to 116J.995 do not apply
to assistance under this section. Businesses in receipt of assistance under this section must
provide for job creation and retention goals and wage and benefit goals.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2020, and expires on the date the
last loan is repaid or forgiven as provided under this section.
new text end

Sec. 2. new text beginAPPROPRIATION; NORTHERN RESORTS RELIEF.
new text end

new text begin $10,000,000 in fiscal year 2021 is appropriated from the general fund to the commissioner
of employment and economic development for the northern resorts relief program. Of this
amount, up to one percent is for administration and monitoring of the program. This is a
onetime appropriation.
new text end