Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

HF 27

as introduced - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/14/2021 11:24am

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

Bill Text Versions

Engrossments
Introduction Posted on 06/14/2021

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4
1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30
4.1

A bill for an act
relating to arts and cultural heritage; appropriating money for the cultural
community rescue restart grant program; requiring a report.

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

Section 1. new text beginCULTURAL COMMUNITY RESCUE RESTART GRANTS.
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 terms in this
subdivision 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 a nonprofit organization the commissioner determines
to be eligible under subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin (a) $100,000,000 in fiscal year 2022 is appropriated from the
state fiscal recovery fund to the commissioner for grants to nonprofit arts and cultural
organizations that have suffered financial losses during the COVID-19 pandemic.
new text end

new text begin (b) For the purposes of this act, "state fiscal recovery fund" means funds received by
the state pursuant to Section 9901 of the American Rescue Plan Act, Public Law 117-2.
This is a onetime appropriation and is available until December 31, 2023. Any funds not
spent by eligible organizations by December 31, 2023, must be returned to the commissioner
and canceled back to the general fund.
new text end

new text begin Subd. 3. new text end

new text begin Eligible grantees; grant provisions. new text end

new text begin (a) To be eligible for a grant under this
subdivision, a nonprofit must:
new text end

new text begin (1) be a 501(c)(3) or equivalent not-for-profit arts or cultural organization;
new text end

new text begin (2) have primary operations located in the state of Minnesota;
new text end

new text begin (3) have received funding in fiscal year 2019 or fiscal year 2020 from the arts and cultural
heritage fund, the Minnesota State Arts Board, one of the regional arts councils, the
Minnesota Humanities Center, or the Minnesota Historical Society and must have conformed
to all granting requirements for that previous funding;
new text end

new text begin (4) have been an entity operating on May 1, 2020, and be able to demonstrate the
nonprofit will likely be an operating entity on May 1, 2022;
new text end

new text begin (5) have experienced financial hardship as a result of the COVID-19 pandemic and be
able to demonstrate at least a 25 percent reduction in gross receipts between comparable
quarters in 2019 and 2020; and
new text end

new text begin (6)(i) be coded in the North American Industry Classification System (NAICS) as 7111
Performing Arts Companies, 712110 Museum, 51112 Periodical Publishers, 51113 Book
Publishers, or 511199 All Other Publishers; or
new text end

new text begin (ii) if coded under a different North American Industry Classification System category,
maintain a budget for the arts and cultural affiliate's activities that is separate and distinct
from the host institution's budget that can be documented through financial statements; have
a citizen advisory or governing board independent from the host organization's board that
provides community oversight of the affiliate's activities as distinct from the host
organization's activities; demonstrate receipt of charitable arts support from multiple sources
beyond support from the host institution; provide arts and cultural programming or services
that are intended to primarily serve the general public in Minnesota and not just for a host
institution and its constituency; have a professional staff with expertise, training, and
qualifications in bringing arts and cultural programming or services to the public; and show
evidence of a broad community following of the arts and cultural programs it offers, as
demonstrated by season ticket sales, public classes attendance, or a charitable membership
program dedicated to its arts and cultural programs.
new text end

new text begin (b) Eligible organizations or host institutions must apply for a cultural community rescue
restart grant. No eligible organization or host institution may receive more than one grant.
Grants must be distributed as follows:
new text end

new text begin (1) grants to eligible arts and cultural organizations under the NAICS codes 7111, 712110,
51112, 51113, or 511199 will be awarded based on total revenue reported in the 2019 IRS
990 report as follows:
new text end

new text begin (i) revenue of $20,000,000 or more receive $725,000 each;
new text end

new text begin (ii) revenue of $9,000,000 to $19,999,999 receive $300,000 each;
new text end

new text begin (iii) revenue of $1,750,000 to $8,999,999 receive $130,000 each;
new text end

new text begin (iv) revenue of $500,000 to $1,749,999 receive $90,000 each;
new text end

new text begin (v) revenue of $150,000 to $499,999 receive $50,000 each;
new text end

new text begin (vi) revenue of $25,000 to $149,999 receive $20,000 each; and
new text end

new text begin (vii) revenue of under $25,000 receive $10,000 but may not exceed 100 percent of 2019
revenue; and
new text end

new text begin (2) eligible organizations coded under any other NAICS category will be awarded based
on the combined arts and culture 2019 program revenue of the host institution as follows:
new text end

new text begin (i) revenue of $20,000,000 or more receive $725,000 each;
new text end

new text begin (ii) revenue of $9,000,000 to $19,999,999 receive $300,000 each;
new text end

new text begin (iii) revenue of $1,750,000 to $8,999,999 receive $130,000 each;
new text end

new text begin (iv) revenue of $500,000 to $1,749,999 receive $90,000 each;
new text end

new text begin (v) revenue of $150,000 to $499,999 receive $50,000 each;
new text end

new text begin (vi) revenue of $25,000 to $149,999 receive $20,000 each; and
new text end

new text begin (vii) revenue of under $25,000 receive $10,000 but may not exceed 100 percent of 2019
revenue.
new text end

new text begin The commissioner may develop forms, applications, and reporting requirements for use by
eligible organizations. All organizations applying for a grant must include as part of their
application a plan for continued operation.
new text end

new text begin (c) Only revenues that can be confirmed as being spent for the benefit of Minnesotans
are eligible for the calculation of grants under this section. Grant funding must be used for
operating expenses for the organizations that qualify.
new text end

new text begin (d) All grants and grant-making processes 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 grant 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 Subd. 4. new text end

new text begin Report to the legislature. new text end

new text begin By January 15, 2023, the commissioner must submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over state government detailing the use of funds under this section.
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