Agenda - Economic Development Authority - 08/10/1999

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Fact Sheet: 1999 Business Subsidies Law v' With their reports, DTED will ask grantors to include a list of recipients that did not report, as well as a list of those failing to meet any goals outlined in the agreement and a description of the steps being taken to bdng them into compliance or recoup the subsidy. DTED wilt post an MBAF on DTED's website this fall and mail the form in February. if DTED has not received an MBAF by April 1 from an entity required to report, DTED must issue a warning. If DTED has still not received the MBAF by June 1, the agency in default may not award any business subsidies until the report has been filed. State funds passed through local agencies to businesses (e.g. Minnesota Investment Fund awards) are reported by the state grantor. However, local agencies must report on applicable local funds awarded in conjunction with state funds and on state funds which have been repaid to and reinvested by the local agency (e.g. revolving funds). How is non-business subsidy financial assistance reported? v' Recipients of the four types of financial assistance with different reporting requirements must provide grantors with the information outlined in Minn. Stat. {}116J.994, subdivision 7(c), and wiil be subject to a penalty as defined in Minn. Stat. §116J.994, subdivision 7(d)for failing to report. v' DTED will ask grantors to report, at a minimum, the information that Minn. Stat. §116J.994, subdivision 7(c) requires recipients to provide to them on these four types of financial assistance. ,/ DTED will determine this fall whether to develop a separate form or ask grantors to use the MBAF for reporting on these agreements. The form(s) will be posted on DTED's website this fall and mailed to agencies in February. As with their business subsidy reports, grantors will have until April I to file these reports with DTED. How will information reported by agencies be used? ,/ DTED is required to publish a report summarizing information reported through the MBAF each year by Juty 1. DTED's report must include a list of recipients that have failed to meet the terms of a subsidy agreement in the past five years and have not satisfied their repayment obligations. Copies of the report will be submitted to the Legislature and posted on DTED's website. Where can I find the law? The business subsidies law can be found on DTED's website at http://www.dted.state, mn.us/busasst /bareport. html and may be pdnted from your web browser. Clarifications tO the law The following clarifications are in response to commonly asked questions about the law: · Regarding Minn. Stat. §116J.994, subdivision 7(b), the statute's author agrees that recipients should continue reporting to the granting agency, not to DTED. The granting agency will be responsible for reporting to DTED. DTED will be collecting information only on public funds originating in Minnesota; therefore, DTED will not ask agencies to report on federal funds they administer unless the funds have been repaid to the agency and reinvested according to local policies. This fact sheet is intended to help agencies understand the 1999 business subsidies law, and does not serve as a substitute for statute language. Agencies are responsible for complying with the law and should view the law for questions and specific details and requirements that are not outlined in this fact sheet. Questions about the law can be directed to D TED: Minnesota Department of Trade and Economic Development Analysis and Evaluation Office 500 Metro Square 121 7~ Place East St. Paul, MN 55101-2146 Phone: (651) 296-3646 I Fax: (65I)215-3841 I E-mail: caryn.mohr@state.mn.us /(Departmentof Trade and Economic Development www. dted.state.m n.us Page 3 of 4 July 27, 1999