1.2relating to disaster assistance; making miscellaneous corrections to the 2012
1.3First Special Session flood relief legislation;amending Minnesota Statutes 2010,
1.4section 116J.8731, subdivision 9, as added if enacted; 2012 First Special Session
1.5H.F. 1, article 1, sections 5, if enacted; 10, subdivision 3, if enacted.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. 2012 First Special Session H.F. No. 1, article 1, section 5, if enacted,
1.8is amended to read:

1.9 1.10

Sec. 5. EMPLOYMENT AND ECONOMIC DEVELOPMENT

$

15,000,000

1.11

Minnesota Investment Fund

1.12From the general fund to the commissioner
1.13of employment and economic development
1.14for Minnesota investment fund grants under
1.15Minnesota Statutes, section 12A.07.
1.16Before any grants under this section are
1.17awarded to a local unit of government,
1.18the commissioner of employment and
1.19economic development shall report to the
1.20chairs and ranking minority members of
1.21the senate Finance Committee and house of
1.22representatives Ways and Means Committee
1.23the criteria and requirements to be used
1.24by local units of government in the grant
2.1or loan programs they will administer. All
2.2business loan agreements must be executed
2.3by December 31, 2013. Any uncommitted
2.4balance remaining must be transferred to
2.5the general fund. Appropriations under this
2.6section are available through December 31,
2.72013.

2.8    Sec. 2. 2012 First Special Session H.F. No. 1, article 1, section 10, subdivision 3,
2.9if enacted, is amended to read:

2.10 2.11

Subd. 3.Erosion, Sediment, and Water Quality Control Cost-Share Program

11,000,000

2.12From the general fund for the purposes
2.13specified in Minnesota Statutes, section
2.1412A.05, subdivision 2 , in the area included
2.15in DR-4069. Priority use of these funds shall
2.16be to supplement or match federal funds
2.17whenever possible and practical.
2.18Wetland conservation procedures. For
2.19projects funded in this section article, the
2.20board may develop alternative standards and
2.21procedures for Minnesota Statutes, sections
2.22103G.222 to 103G.2242, that may be used
2.23temporarily by local government units to
2.24address emergency situations or disaster
2.25recovery efforts in the area included in
2.26DR-4069.

2.27    Sec. 3. Minnesota Statutes 2010, section 116J.8731, subdivision 9, as added by 2012
2.28First Special Session H.F. No. 1, article 1, section 21, if enacted, is amended to read:
2.29    Subd. 9. Requirements for assistance. All awards under subdivision 8 section
2.3012A.07 are subject to the following requirements.
2.31(a) Eligible applicants include the following:
2.32(1) Applicants may be any business or nonprofit organization in the area included
2.33in the disaster declaration that was directly and adversely affected by the disaster. This
2.34includes: businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit
3.1organizations, including those nonprofits that provide residential, health care, child care,
3.2social, or other services on behalf of the Department of Human Services to residents
3.3included in the disaster area.
3.4    (2) Business applicants must be organized as a proprietorship, partnership, LLC, or
3.5a corporation.
3.6    (3) Applicants must have been in operation before the date of the disaster.
3.7    (b) Eligible activities. Loan funds may be used to assist businesses only in their
3.8recovery efforts but are not available to provide relief from economic losses.
3.9    (c) Eligible costs. Eligible costs may include the following: repair of buildings,
3.10leasehold improvements, fixtures and/or equipment, loss of inventory, and cleanup costs.
3.11    (d) Ineligible activities:
3.12    (1) Ineligible applicants. Any applicants not meeting the eligibility requirements
3.13outlined in this subdivision are ineligible to receive recovery loan funds.
3.14    (2) Ineligible activities. Funds may not be used for lending or investment operations,
3.15land speculation, or any activity deemed illegal by federal, state, or local law or ordinance.
3.16    (3) Ineligible costs. Ineligible costs include but are not limited to: economic injury
3.17losses, relocation, management fees, financing costs, franchise fees, debt consolidation,
3.18moving costs, refinancing debt existing prior to the date of the disaster, and operating costs.
3.19    (e) Loan application:
3.20    (1) Application process. All parties seeking recovery loan funds must file an
3.21application with the local unit of government. Small Business Administration (SBA)
3.22application forms may be used. Applications must be transmitted in the form and manner
3.23prescribed by the commissioner.
3.24    (f) Application information. Only completed applications will be reviewed for
3.25consideration. Submittal of the following information constitutes a complete application:
3.26    (1) MIF recovery loan fund application;
3.27    (2) business SBA disaster application if applicable;
3.28    (3) regional development organization or responsible local government application,
3.29if applicable;
3.30    (4) administrative contact;
3.31    (5) business release for local government to review SBA damage assessment/loss
3.32verification, if applicable;
3.33    (6) proof of loss statement from insurer;
3.34    (7) construction cost estimates;
3.35    (8) invoices for work completed;
3.36    (9) quotes for equipment;
4.1    (10) proposed security;
4.2    (11) company historical financial statements for the 24 months immediately prior to
4.3the application date;
4.4    (12) credit check release;
4.5    (13) number of jobs to be retained;
4.6    (14) wages paid;
4.7    (15) amount of loan request;
4.8    (16) documentation of damages incurred;
4.9    (17) property taxes paid and current;
4.10    (18) judgments, liens, agreements, consent decrees, stipulations for settlements, or
4.11other such actions which would prevent the applicant from participating in any program
4.12administered by the responsible local, state, or regional government;
4.13    (19) compliance with all applicable local ordinances and plans;
4.14    (20) documentation through financial and tax records that the business was a viable
4.15operating entity at the time of the flood;
4.16    (21) business tax identification number; and
4.17    (22) other documentation as requested.
4.18    (g) Incomplete applications will be assigned pending status and the applicant will be
4.19informed in writing of the missing documentation.
4.20    (h) Determination of eligibility. Applicant eligibility will be determined using
4.21criteria enumerated in paragraph (a). A credit check for the company and each of its
4.22principal owners may be conducted. An owner's encumbrance report will be completed
4.23by the Recorder's Office.
4.24    A grant recipient is eligible for assistance provided under this section only after the
4.25recipient has claimed all applicable private insurance and the recipient has utilized all other
4.26sources of applicable assistance available under the act appropriating funding for the grant.