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HF 37

as introduced - 91st Legislature, 2020 2nd Special Session (2020 - 2020) Posted on 07/20/2020 10:25am

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

Bill Text Versions

Engrossments
Introduction Posted on 07/13/2020

Current Version - as introduced

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A bill for an act
relating to economic development; creating the civil unrest immediate relief
program; requiring reports; appropriating money.

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

Section 1. new text beginCIVIL UNREST IMMEDIATE RELIEF PROGRAM.
new text end

new text begin Subdivision 1. 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 organization" means:
new text end

new text begin (1) a federally certified community development financial institution;
new text end

new text begin (2) a city;
new text end

new text begin (3) the Minneapolis Community Development Agency; or
new text end

new text begin (4) the St. Paul Housing and Redevelopment Authority.
new text end

new text begin (d) "Entity" includes any registered business or nonprofit organization. This includes
businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit organizations.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a program to make grants to
eligible organizations to develop and implement local economic relief programs designed
with the primary goal of assisting areas adversely affected by civil unrest during the
peacetime emergency declared in governor's Executive Order No. 20-64 by preserving
incumbent entities and encouraging new entities to locate in those areas. To this end, local
programs should include outreach to cultural communities, support for microenterprises,
and preferences for entities that were already under stress from the COVID-19 peacetime
emergency.
new text end

new text begin Subd. 3. new text end

new text begin Available relief. new text end

new text begin (a) The local programs established by eligible organizations
under this section may include grants or loans as provided in this section, as well as subgrants
to local nonprofits to further the goals of the program. Prior to awarding a grant to an eligible
organization for a local program under this section:
new text end

new text begin (1) the eligible organization must develop criteria, procedures, and requirements for:
new text end

new text begin (i) determining eligibility for assistance;
new text end

new text begin (ii) the duration, terms, underwriting and security requirements, and repayment
requirements for loans;
new text end

new text begin (iii) evaluating applications for assistance;
new text end

new text begin (iv) awarding assistance; and
new text end

new text begin (v) administering the grant and loan programs authorized under this section, including
any subgrants to local nonprofits;
new text end

new text begin (2) the eligible organization must submit its criteria, procedures, and requirements
developed pursuant to clause (1) to the commissioner of employment and economic
development for review; and
new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements as
developed pursuant to clause (1) to be used by an eligible organization in determining
eligibility for assistance, evaluating, awarding, and administering a grant and loan program.
new text end

new text begin (b) The relief authorized under this section includes:
new text end

new text begin (1) grants to entities. These grants are not to exceed $250,000 per entity, must specify
that an entity receiving a grant must remain in the local community a minimum of three
years after the date of the grant, and must require submission of a plan for continued
operation. Grants may be awarded to applicants only when an eligible organization
determines that a loan is not appropriate to address the needs of the applicant; and
new text end

new text begin (2) loans to entities, with or without interest, and deferred or forgivable loans. The
maximum loan amount under this subdivision is $500,000 per entity. The lending criteria
adopted by an eligible organization for loans under this subdivision must:
new text end

new text begin (i) specify that an entity receiving a deferred or forgivable loan must remain in the local
community a minimum of three years after the date of the loan. The maximum loan deferral
period must not exceed three years from the date the loan is approved; and
new text end

new text begin (ii) require submission of a plan for continued operation. The plan must document the
probable success of the applicant's plan and probable success in repaying the loan according
to the terms established for the loan program.
new text end

new text begin (c) All loan repayment funds under this subdivision must be paid to the commissioner
of employment and economic development for deposit in the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Monitoring and reporting. new text end

new text begin (a) Participating eligible organizations must
establish performance measures that include but are not limited to the following components:
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 number of grants awarded, award amounts, and the reason that a grant award
was made in lieu of a loan;
new text end

new text begin (3) the loan default rate;
new text end

new text begin (4) 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; and
new text end

new text begin (5) the amount of business activity and changes in gross revenues of the grant or loan
recipient as a result of the assistance.
new text end

new text begin (b) The commissioner of employment and economic development must monitor the
participating eligible organizations' compliance with this section and the performance
measures developed under paragraph (a).
new text end

new text begin (c) Participating eligible organizations must comply with all requests made by the
commissioner under this section and are responsible for the reporting and compliance of
any subgrantees.
new text end

new text begin (d) By December 15 of each year the program is in existence, participating eligible
organizations must report their performance measures to the commissioner. By January 15
of each year the program is in existence, after the first, the commissioner must submit a
report of these performance measures to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over economic
development that details the use of funds under this section.
new text end

new text begin Subd. 5. new text end

new text begin Exemptions. new text end

new text begin (a) Minnesota Statutes, sections 116J.993 to 116J.995, do not
apply to assistance under this section. Entities 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 (b) Minnesota Statutes, sections 16A.15, 16B.97, 16B.98, 16B.991, 16C.05, and 16C.053,
do not apply to assistance under this section.
new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic
development may use up to seven percent of the appropriation made for this section for
administrative expenses of the department or for assisting participating eligible organizations
with their administrative expenses.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires the day after the last loan is repaid or forgiven as provided under this section.
new text end

Sec. 2. new text beginCIVIL UNREST IMMEDIATE RELIEF PROGRAM.
new text end

new text begin $167,570,000 in fiscal year 2021 is appropriated from the general fund to the
commissioner of employment and economic development for the civil unrest immediate
relief program. Of this onetime appropriation, which is available until June 30, 2021:
new text end

new text begin (1) at least $12,500,000 is for a grant to the city of Minneapolis;
new text end

new text begin (2) at least $12,500,000 is for a grant to the city of Saint Paul;
new text end

new text begin (3) at least $5,000,000 is for a grant to the Minneapolis Community Development Agency
to acquire and hold property in areas adversely affected by the civil unrest during the
peacetime emergency declared in governor's Executive Order No. 20-64, to prevent
displacement, retain existing businesses, and maintain the character of the community. Such
activities must involve ongoing consultation with groups of local residents;
new text end

new text begin (4) at least $5,000,000 is for a grant to the St. Paul Housing and Redevelopment Authority
to acquire and hold property in areas adversely affected by the civil unrest during the
peacetime emergency declared in governor's Executive Order No. 20-64, to prevent
displacement, retain existing businesses, and maintain the character of the community. Such
activities must involve ongoing consultation with groups of local residents;
new text end

new text begin (5) at least $1,000,000 is for grants to cities encompassing areas adversely affected by
civil unrest during the peacetime emergency declared in governor's Executive Order No.
20-64, for community re-imagining; and
new text end

new text begin (6) the commissioner of management and budget must transfer $750,000 to the Office
of the Legislative Auditor for fiscal agent responsibilities to the Civil Unrest Investigatory
Commission.
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