1.1                          A bill for an act 
  1.2             relating to economic development; creating a revolving 
  1.3             loan program for American Indian business loans; 
  1.4             appropriating money; proposing coding for new law in 
  1.5             Minnesota Statutes, chapter 116J. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [116J.956] [AMERICAN INDIAN BUSINESS LOAN 
  1.8   REVOLVING ACCOUNT.] 
  1.9      Subdivision 1.  [CREATED.] The commissioner shall contract 
  1.10  with the nonprofit American Indian Chamber of Commerce, or a 
  1.11  similar nonprofit organization with membership comprised of 
  1.12  American Indian businesses, to administer a revolving loan 
  1.13  program for business loans to American Indians residing in 
  1.14  Minnesota.  The contract must, among other things, contain the 
  1.15  terms of this section. 
  1.16     Subd. 2.  [PROGRAM MANAGEMENT.] The revolving loan program 
  1.17  must be managed by a loan board of nine members, including four 
  1.18  members representing Minnesota banks. 
  1.19     Subd. 3.  [LOAN TERMS.] All loans must meet commercial loan 
  1.20  underwriting standards.  The minimum rate of interest is five 
  1.21  percent per annum. 
  1.22     Subd. 4.  [DEPARTMENT OVERSIGHT.] A report must be 
  1.23  submitted annually by March 1 to the department detailing loan 
  1.24  activity for the previous year.  The department may, on a random 
  1.25  basis or otherwise, audit the program. 
  2.1      Subd. 5.  [ANNUAL AUDIT.] The revolving loan program must 
  2.2   be audited annually by an independent auditor.  A report of the 
  2.3   audit must be provided to the department upon completion of the 
  2.4   audit. 
  2.5      Subd. 6.  [USE OF INCOME AND PRINCIPAL.] Investment 
  2.6   earnings and loan repayments may be used for administrative 
  2.7   costs and for loans. 
  2.8      Sec. 2.  [APPROPRIATION.] 
  2.9      $....... is appropriated from the general fund to the 
  2.10  commissioner of trade and economic development for the revolving 
  2.11  loan program created by section 1.  The appropriation does not 
  2.12  cancel.