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SF 3206

as introduced - 86th Legislature (2009 - 2010) Posted on 03/10/2010 12:29pm

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; expanding the Minnesota investment fund;
removing a restriction on construction mitigation pilot program grants; amending
Minnesota Statutes 2008, section 116J.8731, subdivisions 1, 4; Minnesota
Statutes 2009 Supplement, section 116J.8731, subdivision 3; Laws 2009, chapter
78, article 1, section 3, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 116J.8731, subdivision 1, is amended to
read:


Subdivision 1.

Purpose.

The Minnesota investment fund is created to provide
financialnew text begin and technicalnew text end assistance, through partnership with communities, for the creation
of new employment or to maintain existing employment, and for business start-up,
expansions, and retention. It shall accomplish these goals by the following means:

(1) creation or retention of permanent private-sector jobs in order to create
above-average economic growth consistent with environmental protection, which includes
investments in technology and equipment that increase productivity and provide for a
higher wage;

(2) stimulation or leverage of private investment to ensure economic renewal and
competitiveness;

(3) increasing the local tax base, based on demonstrated measurable outcomes, to
guarantee a diversified industry mix;

(4) improving the quality of existing jobs, based on increases in wages or
improvements in the job duties, training, or education associated with those jobs;

(5) improvement of employment and economic opportunity for citizens in the region
to create a reasonable standard of living, consistent with federal and state guidelines
on low- to moderate-income persons; and

(6) stimulation of productivity growth through improved manufacturing or new
technologies, including cold weather testing.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 116J.8731, subdivision 3, is
amended to read:


Subd. 3.

Eligible expenditures.

The money appropriated for this section may be
used to deleted text begin funddeleted text end :

(1)new text begin fundnew text end grants for infrastructure, loans, loan guarantees, interest buy-downs, and
other forms of participation with private sources of financing, provided that a loan to a
private enterprise must be for a principal amount not to exceed one-half of the cost of the
project for which financing is sought; deleted text begin and
deleted text end

(2) new text begin fund new text end strategic investments in renewable energy market development, such as
low interest loans for renewable energy equipment manufacturing, training grants to
support renewable energy workforce, development of a renewable energy supply chain
that represents and strengthens the industry throughout the state, and external marketing
to garner more national and international investment into Minnesota's renewable sector.
Expenditures in external marketing for renewable energy market development are not
subject to the limitations in clause (1)deleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) provide private entrepreneurs with training, other technical assistance, and
financial assistance, as provided in the small cities development block grant program.
new text end

Sec. 3.

Minnesota Statutes 2008, section 116J.8731, subdivision 4, is amended to read:


Subd. 4.

Eligible projects.

Assistance must be evaluated on the existence of the
following conditions:

(1) creation of new jobs, retention of existing jobs, or improvements in the quality of
existing jobs as measured by the wages, skills, or education associated with those jobs;

(2) increase in the tax base;

(3) the project can demonstrate that investment of public dollars induces private
funds;

(4) the project can demonstrate an excessive public infrastructure or improvement
cost beyond the means of the affected community and private participants in the project;

(5) the project provides higher wage levels to the community or will add value to
current workforce skills;

new text begin (6) the project supports the development of microenterprises, as defined by federal
statutes, through financial assistance, technical assistance, advice, or business services;
new text end

deleted text begin (6)deleted text end new text begin (7)new text end whether assistance is necessary to retain existing business;

deleted text begin (7)deleted text end new text begin (8)new text end whether assistance is necessary to attract out-of-state business; and

deleted text begin (8)deleted text end new text begin (9)new text end the project promotes or advances the green economy as defined in section
116J.437.

A grant or loan cannot be made based solely on a finding that the conditions in
clause deleted text begin (6)deleted text end new text begin (7)new text end or deleted text begin (7)deleted text end new text begin (8)new text end exist. A finding must be made that a condition in clause (1), (2),
(3), (4), deleted text begin ordeleted text end new text begin ,new text end (5)new text begin , or (6)new text end also exists.

Applications recommended for funding shall be submitted to the commissioner.

Sec. 4.

Laws 2009, chapter 78, article 1, section 3, subdivision 2, is amended to read:


Subd. 2.

Business and Community
Development

8,980,000
8,980,000
Appropriations by Fund
General
7,941,000
7,941,000
Remediation
700,000
700,000
Workforce
Development
339,000
339,000

(a) $700,000 the first year and $700,000 the
second year are from the remediation fund for
contaminated site cleanup and development
grants under Minnesota Statutes, section
116J.554. This appropriation is available
until expended.

(b) $200,000 each year is from the general
fund for a grant to WomenVenture for
women's business development programs
and for programs that encourage and assist
women to enter nontraditional careers in the
trades; manual and technical occupations;
science, technology, engineering, and
mathematics-related occupations; and green
jobs. This appropriation may be matched
dollar for dollar with any resources available
from the federal government for these
purposes with priority given to initiatives
that have a goal of increasing by at least ten
percent the number of women in occupations
where women currently comprise less than 25
percent of the workforce. The appropriation
is available until expended.

(c) $105,000 each year is from the general
fund and $50,000 each year is from the
workforce development fund for a grant to
the Metropolitan Economic Development
Association for continuing minority business
development programs in the metropolitan
area. This appropriation must be used for the
sole purpose of providing free or reduced
fee business consulting services to minority
entrepreneurs and contractors.

(d)(1) $500,000 each year is from the
general fund for a grant to BioBusiness
Alliance of Minnesota for bioscience
business development programs to promote
and position the state as a global leader
in bioscience business activities. This
appropriation is added to the department's
base. These funds may be used to create,
recruit, retain, and expand biobusiness
activity in Minnesota; implement the
destination 2025 statewide plan; update
a statewide assessment of the bioscience
industry and the competitive position of
Minnesota-based bioscience businesses
relative to other states and other nations;
and develop and implement business and
scenario-planning models to create, recruit,
retain, and expand biobusiness activity in
Minnesota.

(2) The BioBusiness Alliance must report
each year by February 15 to the committees
of the house of representatives and the senate
having jurisdiction over bioscience industry
activity in Minnesota on the use of funds;
the number of bioscience businesses and
jobs created, recruited, retained, or expanded
in the state since the last reporting period;
the competitive position of the biobusiness
industry; and utilization rates and results of
the business and scenario-planning models
and outcomes resulting from utilization of
the business and scenario-planning models.

(e)(1) Of the money available in the
Minnesota Investment Fund, Minnesota
Statutes, section 116J.8731, to the
commissioner of the Department of
Employment and Economic Development,
up to $3,000,000 is appropriated in fiscal year
2010 for a loan to an aircraft manufacturing
and assembly company, associated with the
aerospace industry, for equipment utilized
to establish an aircraft completion center
at the Minneapolis-St. Paul International
Airport. The finishing center must use the
state's vocational training programs designed
specifically for aircraft maintenance training,
and to the extent possible, work to recruit
employees from these programs. The center
must create at least 200 new manufacturing
jobs within 24 months of receiving the
loan, and create not less than 500 new
manufacturing jobs over a five-year period
in Minnesota.

(2) This loan is not subject to loan limitations
under Minnesota Statutes, section 116J.8731,
subdivision 5
. Any match requirements
under Minnesota Statutes, section 116J.8731,
subdivision 3
, may be made from current
resources. This is a onetime appropriation
and is effective the day following final
enactment.

(f) $65,000 each year is from the general
fund for a grant to the Minnesota Inventors
Congress, of which at least $6,500 must be
used for youth inventors.

(g) $200,000 the first year and $200,000 the
second year are for the Office of Science and
Technology. This is a onetime appropriation.

(h) $500,000 the first year and $500,000 the
second year are for a grant to Enterprise
Minnesota, Inc., for the small business
growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation and is available
until expended.

(i)(1) $100,000 each year is from the
workforce development fund for a grant
under Minnesota Statutes, section 116J.421,
to the Rural Policy and Development
Center at St. Peter, Minnesota. The grant
shall be used for research and policy
analysis on emerging economic and social
issues in rural Minnesota, to serve as a
policy resource center for rural Minnesota
communities, to encourage collaboration
across higher education institutions, to
provide interdisciplinary team approaches
to research and problem-solving in rural
communities, and to administer overall
operations of the center.

(2) The grant shall be provided upon the
condition that each state-appropriated
dollar be matched with a nonstate dollar.
Acceptable matching funds are nonstate
contributions that the center has received and
have not been used to match previous state
grants. Any funds not spent the first year are
available the second year.

(j) Notwithstanding Minnesota Statutes,
section 268.18, subdivision 2, $414,000 of
funds collected for unemployment insurance
administration under this subdivision is
appropriated as follows: $250,000 to Lake
County for ice storm damage; $64,000 is for
the city of Green Isle for reimbursement of
fire relief efforts and other expenses incurred
as a result of the fire in the city of Green Isle;
and $100,000 is to develop the construction
mitigation pilot program to make grants deleted text begin for
up to five projects statewide available
deleted text end to local
government units to mitigate the impacts of
transportation construction on local small
business. These are onetime appropriations
and are available until expended.

(k) Up to $10,000,000 is appropriated
from the Minnesota minerals 21st century
fund to the commissioner of Iron Range
resources and rehabilitation to make a grant
or forgivable loan to a manufacturer of
windmill blades at a facility to be located
within the taconite tax relief area defined in
Minnesota Statutes, section 273.134.

(l) $1,000,000 is appropriated from the
Minnesota minerals 21st century fund to
the Board of Trustees of the Minnesota
State Colleges and Universities for a grant
to the Northeast Higher Education District
for planning, design, and construction of
classrooms and housing facilities for upper
division students in the engineering program.

(m)(1) $189,000 each year is appropriated
from the workforce development fund for
grants of $63,000 to eligible organizations
each year to assist in the development of
entrepreneurs and small businesses. Each
state grant dollar must be matched with $1
of nonstate funds. Any balance in the first
year does not cancel but is available in the
second year.

(2) Three grants must be awarded to
continue or to develop a program. One
grant must be awarded to the Riverbend
Center for Entrepreneurial Facilitation
in Blue Earth County, and two to other
organizations serving Faribault and Martin
Counties. Grant recipients must report to the
commissioner by February 1 of each year
that the organization receives a grant with the
number of customers served; the number of
businesses started, stabilized, or expanded;
the number of jobs created and retained; and
business success rates. The commissioner
must report to the house of representatives
and senate committees with jurisdiction
over economic development finance on the
effectiveness of these programs for assisting
in the development of entrepreneurs and
small businesses.