HF 5205

2nd Engrossment - 93rd Legislature (2023 - 2024) Posted on 05/01/2024 12:00pm

A bill for an act
relating to economic development; making supplemental appropriations for
economic development and workforce development; establishing Explore
Minnesota Film; making various policy changes relating to economic development
and workforce development; appropriating money; amending Minnesota Statutes
2022, sections 116J.435, subdivisions 3, 4; 116J.5492, subdivision 2; 116J.8748,
subdivision 1; 116M.18; 116U.26; 116U.27, subdivision 5; 268.035, subdivision
20; Minnesota Statutes 2023 Supplement, sections 116J.682, subdivisions 1, 3;
116J.8733; 116J.8748, subdivisions 3, 4, 6; 116J.8751, by adding a subdivision;
116L.17, subdivision 1; 116L.43, subdivision 1; 116U.27, subdivisions 1, 4; Laws
2023, chapter 53, article 15, sections 32, subdivision 6; 33, subdivisions 4, 5; article
20, sections 2, subdivisions 1, 2, 3, 4, 6; 3; article 21, section 6; proposing coding
for new law in Minnesota Statutes, chapter 116U; repealing Minnesota Statutes
2022, sections 116J.435, subdivision 5; 116L.17, subdivision 5.

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

ARTICLE 1

ECONOMIC DEVELOPMENT APPROPRIATIONS

Section 1.

Laws 2023, chapter 53, article 20, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

382,802,000

$

deleted text begin 310,131,000 deleted text end new text begin 306,306,000 new text end

Appropriations by Fund
	2024	2025
General	352,525,000	deleted text begin 279,854,000 deleted text end new text begin 276,029,000 new text end
Remediation	700,000	700,000
Workforce Development	30,277,000	30,277,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Sec. 2.

Laws 2023, chapter 53, article 20, section 2, subdivision 2, is amended to read:

Subd. 2. Business and Community Development

195,061,000

deleted text begin 139,929,000 deleted text end new text begin 136,104,000 new text end

Appropriations by Fund
General	193,011,000	deleted text begin 137,879,000 deleted text end new text begin 134,054,000 new text end
Remediation	700,000	700,000
Workforce Development	1,350,000	1,350,000

(a) $2,287,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until June 30, 2027.

(b) $500,000 each year is for grants to small
business development centers under Minnesota
Statutes, section 116J.68. Money made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services or
to build additional SBDC network capacity to
serve entrepreneurs and small businesses.

(c) $2,500,000 deleted text begin each deleted text end new text begin the first new text end year is for Launch
Minnesota. deleted text begin These are deleted text end new text begin This is a new text end onetime
deleted text begin appropriations deleted text end new text begin appropriation new text end . Of this amount:

(1) $1,500,000 deleted text begin each year deleted text end is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs;

(2) $500,000 deleted text begin each year deleted text end is for administration
of Launch Minnesota; and

(3) $500,000 deleted text begin each year deleted text end is for grantee activities
at Launch Minnesota.

(d)(1) $500,000 each year is for grants to
MNSBIR, Inc., to support moving scientific
excellence and technological innovation from
the lab to the market for start-ups and small
businesses by securing federal research and
development funding. The purpose of the grant
is to build a strong Minnesota economy and
stimulate the creation of novel products,
services, and solutions in the private sector;
strengthen the role of small business in
meeting federal research and development
needs; increase the commercial application of
federally supported research results; and
develop and increase the Minnesota
workforce, especially by fostering and
encouraging participation by small businesses
owned by women and people who are Black,
Indigenous, or people of color. This is a
onetime appropriation.

(2) MNSBIR, Inc., shall use the grant money
to be the dedicated resource for federal
research and development for small businesses
of up to 500 employees statewide to support
research and commercialization of novel ideas,
concepts, and projects into cutting-edge
products and services for worldwide economic
impact. MNSBIR, Inc., shall use grant money
to:

(i) assist small businesses in securing federal
research and development funding, including
the Small Business Innovation Research and
Small Business Technology Transfer programs
and other federal research and development
funding opportunities;

(ii) support technology transfer and
commercialization from the University of
Minnesota, Mayo Clinic, and federal
laboratories;

(iii) partner with large businesses;

(iv) conduct statewide outreach, education,
and training on federal rules, regulations, and
requirements;

(v) assist with scientific and technical writing;

(vi) help manage federal grants and contracts;
and

(vii) support cost accounting and sole-source
procurement opportunities.

(e) $10,000,000 the first year is for the
Minnesota Expanding Opportunity Fund
Program under Minnesota Statutes, section
116J.8733. This is a onetime appropriation
and is available until June 30, 2025.

(f) $6,425,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
The base for this appropriation is $2,725,000
in fiscal year 2026 and each year thereafter.

(g) $350,000 each year is for administration
of the community energy transition office.

(h) $5,000,000 each year is transferred from
the general fund to the community energy
transition account for grants under Minnesota
Statutes, section 116J.55. This is a onetime
transfer.

(i) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.

(j) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.

(k) $389,000 each year is for the Center for
Rural Policy and Development. The base for
this appropriation is $139,000 in fiscal year
2026 and each year thereafter.

(l) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.

(m) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.

(n) $6,500,000 each year is for grants to local
communities to increase the number of quality
child care providers to support economic
development. Fifty percent of grant money
must go to communities located outside the
seven-county metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2. The base for this appropriation
is $1,500,000 in fiscal year 2026 and each year
thereafter.

Grant recipients must obtain a 50 percent
nonstate match to grant money in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
money available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.

Within one year of receiving grant money,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care openings, and
the amount of cash and in-kind local money
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.

(o) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:

(1) $450,000 each year is for administration
of the Office of Child Care Community
Partnerships; and

(2) $50,000 each year is for the Labor Market
Information Office to conduct research and
analysis related to the child care industry.

(p) $3,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations. This appropriation is available
until June 30, 2027. The base for this
appropriation is $1,000,000 in fiscal year 2026
and each year thereafter. The Minnesota
Initiative Foundations must use grant money
under this section to:

(1) facilitate planning processes for rural
communities resulting in a community solution
action plan that guides decision making to
sustain and increase the supply of quality child
care in the region to support economic
development;

(2) engage the private sector to invest local
resources to support the community solution
action plan and ensure quality child care is a
vital component of additional regional
economic development planning processes;

(3) provide locally based training and technical
assistance to rural business owners
individually or through a learning cohort.
Access to financial and business development
assistance must prepare child care businesses
for quality engagement and improvement by
stabilizing operations, leveraging funding from
other sources, and fostering business acumen
that allows child care businesses to plan for
and afford the cost of providing quality child
care; and

(4) recruit child care programs to participate
in quality rating and improvement
measurement programs. The Minnesota
Initiative Foundations must work with local
partners to provide low-cost training,
professional development opportunities, and
continuing education curricula. The Minnesota
Initiative Foundations must fund, through local
partners, an enhanced level of coaching to
rural child care providers to obtain a quality
rating through measurement programs.

(q) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended. Notwithstanding
Minnesota Statutes, section 116J.8748, money
appropriated for the job creation fund may be
used for redevelopment under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner.

(r) $12,370,000 each year is for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administration and monitoring of the program.
This appropriation is available until expended.
Notwithstanding Minnesota Statutes, section
116J.8731, money appropriated to the
commissioner for the Minnesota investment
fund may be used for the redevelopment
program under Minnesota Statutes, sections
116J.575 and 116J.5761, at the discretion of
the commissioner. Grants under this paragraph
are not subject to the grant amount limitation
under Minnesota Statutes, section 116J.8731.

(s) $4,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
The base for this appropriation is $2,246,000
in fiscal year 2026 and each year thereafter.
This appropriation is available until expended.

(t) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Money
available under this paragraph is for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.

(u) $325,000 deleted text begin each deleted text end new text begin the first new text end year is for the
Minnesota Film and TV Board. The
appropriation deleted text begin each year deleted text end is available only upon
receipt by the board of $1 in matching
contributions of money or in-kind
contributions from nonstate sources for every
$3 provided by this appropriation, except that
deleted text begin each year deleted text end up to $50,000 is available on July
1 even if the required matching contribution
has not been received by that date. new text begin This is a
onetime appropriation.
new text end

(v) $12,000 each year is for a grant to the
Upper Minnesota Film Office.

(w) $500,000 deleted text begin each deleted text end new text begin the first new text end year is for a grant
to the Minnesota Film and TV Board for the
film production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2027. new text begin This is a
onetime appropriation.
new text end

(x) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.

(y) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.

(z) $47,475,000 each year is for the PROMISE
grant program. This is a onetime appropriation
and is available until June 30, 2027. Of this
amount:

(1) $475,000 each year is for administration
of the PROMISE grant program;

(2) $7,500,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota. Of this amount, $600,000 each
year is for grants to businesses with less than
$100,000 in revenue in the prior year; and

(3) $39,500,000 each year is for grants to the
Neighborhood Development Center. Of this
amount, the following amounts are designated
for the following areas:

(i) $16,000,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods. Of this
amount, $1,000,000 each year is for grants to
businesses with less than $100,000 in revenue
in the prior year;

(ii) $13,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors.
Of this amount, $750,000 each year is for
grants to businesses with less than $100,000
in revenue in the prior year; and

(iii) $10,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods. Of this amount,
$750,000 each year is for grants to businesses
with less than $100,000 in revenue in the prior
year.

(aa) $15,150,000 each year is for the
PROMISE loan program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:

(1) $150,000 each year is for administration
of the PROMISE loan program;

(2) $3,000,000 each year is for grants in equal
amounts to each of the Minnesota Initiative
Foundations to serve businesses in greater
Minnesota; and

(3) $12,000,000 each year is for grants to the
Metropolitan Economic Development
Association (MEDA). Of this amount, the
following amounts are designated for the
following areas:

(i) $4,500,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;

(ii) $4,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
Franklin, Nicollet, and Riverside corridors;
and

(iii) $3,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.

(bb) $1,500,000 each year is for a grant to the
Metropolitan Consortium of Community
Developers for the community wealth-building
grant program pilot project. Of this amount,
up to two percent is for administration and
monitoring of the community wealth-building
grant program pilot project. This is a onetime
appropriation.

(cc) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.

(dd) $5,000,000 the first year is for a grant to
the Bloomington Port Authority to provide
funding for the Expo 2027 host organization.
The Bloomington Port Authority must enter
into an agreement with the host organization
over the use of money, which may be used for
activities, including but not limited to
finalizing the community dossier and staffing
the host organization and for infrastructure
design and planning, financial modeling,
development planning and coordination of
both real estate and public private partnerships,
and reimbursement of costs the Bloomington
Port Authority incurred. In selecting vendors
and exhibitors for Expo 2027, the host
organization shall prioritize outreach to,
collaboration with, and inclusion of businesses
that are majority owned by people of color,
women, and people with disabilities. The host
organization and Bloomington Port Authority
may be reimbursed for expenses 90 days prior
to encumbrance. This appropriation is
contingent on approval of the project by the
Bureau International des Expositions. If the
project is not approved by the Bureau
International des Expositions, the money shall
transfer to the Minnesota investment fund
under Minnesota Statutes, section 116J.8731.
Any unencumbered balance remaining at the
end of the first year does not cancel but is
available for the second year.

(ee) $5,000,000 the first year is for a grant to
the Neighborhood Development Center for
small business programs, including training,
lending, business services, and real estate
programming; small business incubator
development in the Twin Cities and outside
the seven-county metropolitan area; and
technical assistance activities for partners
outside the seven-county metropolitan area;
and for high-risk, character-based loan capital
for nonrecourse loans. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available for the second year.

(ff) $5,000,000 the first year is for transfer to
the emerging developer fund account in the
special revenue fund. Of this amount, up to
five percent is for administration and
monitoring of the emerging developer fund
program under Minnesota Statutes, section
116J.9926, and the remainder is for a grant to
the Local Initiatives Support Corporation -
Twin Cities to serve as a partner organization
under the program. This is a onetime
appropriation.

(gg) $5,000,000 the first year is for the
Canadian border counties economic relief
program under article 5. Of this amount, up
to $1,000,000 is for Tribal economic
development and $2,100,000 is for a grant to
Lake of the Woods County for the forgivable
loan program for remote recreational
businesses. This is a onetime appropriation
and is available until June 30, 2026.

(hh) $1,000,000 each year is for a grant to
African Economic Development Solutions.
This is a onetime appropriation and is
available until June 30, 2026. Of this amount:

(1) $500,000 each year is for a loan fund that
must address pervasive economic inequities
by supporting business ventures of
entrepreneurs in the African immigrant
community; and

(2) $250,000 each year is for workforce
development and technical assistance,
including but not limited to business
development, entrepreneur training, business
technical assistance, loan packing, and
community development services.

(ii) $1,500,000 each year is for a grant to the
Latino Economic Development Center. This
is a onetime appropriation and is available
until June 30, 2025. Of this amount:

(1) $750,000 each year is to assist, support,
finance, and launch microentrepreneurs by
delivering training, workshops, and
one-on-one consultations to businesses; and

(2) $750,000 each year is to guide prospective
entrepreneurs in their start-up process by
introducing them to key business concepts,
including business start-up readiness. Grant
proceeds must be used to offer workshops on
a variety of topics throughout the year,
including finance, customer service,
food-handler training, and food-safety
certification. Grant proceeds may also be used
to provide lending to business startups.

(jj) $627,000 the first year is for a grant to
Community and Economic Development
Associates (CEDA) to provide funding for
economic development technical assistance
and economic development project grants to
small communities across rural Minnesota and
for CEDA to design, implement, market, and
administer specific types of basic community
and economic development programs tailored
to individual community needs. Technical
assistance grants shall be based on need and
given to communities that are otherwise
unable to afford these services. Of the amount
appropriated, up to $270,000 may be used for
economic development project implementation
in conjunction with the technical assistance
received. This is a onetime appropriation. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year.

(kk) $2,000,000 the first year is for a grant to
WomenVenture to:

(1) support child care providers through
business training and shared services programs
and to create materials that could be used, free
of charge, for start-up, expansion, and
operation of child care businesses statewide,
with the goal of helping new and existing child
care businesses in underserved areas of the
state become profitable and sustainable; and

(2) support business expansion for women
food entrepreneurs throughout Minnesota's
food supply chain to help stabilize and
strengthen their business operations, create
distribution networks, offer technical
assistance and support to beginning women
food entrepreneurs, develop business plans,
develop a workforce, research expansion
strategies, and for other related activities.

Eligible uses of the money include but are not
limited to:

(i) leasehold improvements;

(ii) additions, alterations, remodeling, or
renovations to rented space;

(iii) inventory or supplies;

(iv) machinery or equipment purchases;

(v) working capital; and

(vi) debt refinancing.

Money distributed to entrepreneurs may be
loans, forgivable loans, and grants. Of this
amount, up to five percent may be used for
the WomenVenture's technical assistance and
administrative costs. This is a onetime
appropriation and is available until June 30,
2026.

By December 15, 2026, WomenVenture must
submit a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over agriculture
and employment and economic development.
The report must include a summary of the uses
of the appropriation, including the amount of
the appropriation used for administration. The
report must also provide a breakdown of the
amount of funding used for loans, forgivable
loans, and grants; information about the terms
of the loans issued; a discussion of how money
from repaid loans will be used; the number of
entrepreneurs assisted; and a breakdown of
how many entrepreneurs received assistance
in each county.

(ll) $2,000,000 the first year is for a grant to
African Career, Education, and Resource, Inc.,
for operational infrastructure and technical
assistance to small businesses. This
appropriation is available until June 30, 2025.

(mm) $5,000,000 the first year is for a grant
to the African Development Center to provide
loans to purchase commercial real estate and
to expand organizational infrastructure. This
appropriation is available until June 30, 2025.
Of this amount:

(1) $2,800,000 is for loans to purchase
commercial real estate targeted at African
immigrant small business owners;

(2) $364,000 is for loan loss reserves to
support loan volume growth and attract
additional capital;

(3) $836,000 is for increasing organizational
capacity;

(4) $300,000 is for the safe 2 eat project of
inclusive assistance with required restaurant
licensing examinations; and

(5) $700,000 is for a center for community
resources for language and technology
assistance for small businesses.

(nn) $7,000,000 the first year is for grants to
the Minnesota Initiative Foundations to
capitalize their revolving loan funds, which
address unmet financing needs of for-profit
business start-ups, expansions, and ownership
transitions; nonprofit organizations; and
developers of housing to support the
construction, rehabilitation, and conversion
of housing units. Of the amount appropriated:

(1) $1,000,000 is for a grant to the Southwest
Initiative Foundation;

(2) $1,000,000 is for a grant to the West
Central Initiative Foundation;

(3) $1,000,000 is for a grant to the Southern
Minnesota Initiative Foundation;

(4) $1,000,000 is for a grant to the Northwest
Minnesota Foundation;

(5) $2,000,000 is for a grant to the Initiative
Foundation of which $1,000,000 is for
redevelopment of the St. Cloud Youth and
Family Center; and

(6) $1,000,000 is for a grant to the Northland
Foundation.

(oo) $500,000 each year is for a grant to
Enterprise Minnesota, Inc., to reach and
deliver talent, leadership, employee retention,
continuous improvement, strategy, quality
management systems, revenue growth, and
manufacturing peer-to-peer advisory services
to small manufacturing companies employing
35 or fewer full-time equivalent employees.
This is a onetime appropriation. No later than
February 1, 2025, and February 1, 2026,
Enterprise Minnesota, Inc., must provide a
report to the chairs and ranking minority
members of the legislative committees with
jurisdiction over economic development that
includes:

(1) the grants awarded during the past 12
months;

(2) the estimated financial impact of the grants
awarded to each company receiving services
under the program;

(3) the actual financial impact of grants
awarded during the past 24 months; and

(4) the total amount of federal funds leveraged
from the Manufacturing Extension Partnership
at the United States Department of Commerce.

(pp) $375,000 each year is for a grant to
PFund Foundation to provide grants to
LGBTQ+-owned small businesses and
entrepreneurs. Of this amount, up to five
percent may be used for PFund Foundation's
technical assistance and administrative costs.
This is a onetime appropriation and is
available until June 30, 2026. To the extent
practicable, money must be distributed by
PFund Foundation as follows:

(1) at least 33.3 percent to businesses owned
by members of racial minority communities;
and

(2) at least 33.3 percent to businesses outside
of the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2.

(qq) $125,000 each year is for a grant to
Quorum to provide business support, training,
development, technical assistance, and related
activities for LGBTQ+-owned small
businesses that are recipients of a PFund
Foundation grant. Of this amount, up to five
percent may be used for Quorum's technical
assistance and administrative costs. This is a
onetime appropriation and is available until
June 30, 2026.

(rr) $5,000,000 the first year is for a grant to
the Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services to
minority-owned businesses. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available the second year. Of this
amount:

(1) $3,000,000 is for a revolving loan fund to
provide additional minority-owned businesses
with access to capital; and

(2) $2,000,000 is for operating support
activities related to business development and
assistance services for minority business
enterprises.

By February 1, 2025, MEDA shall report to
the commissioner and the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development policy and finance on the loans
and operating support activities, including
outcomes and expenditures, supported by the
appropriation under this paragraph.

(ss) $2,500,000 each year is for a grant to a
Minnesota-based automotive component
manufacturer and distributor specializing in
electric vehicles and sensor technology that
manufactures all of their parts onshore to
expand their manufacturing. The grant
recipient under this paragraph shall submit
reports on the uses of the money appropriated,
the number of jobs created due to the
appropriation, wage information, and the city
and state in which the additional
manufacturing activity was located to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
economic development. An initial report shall
be submitted by December 15, 2023, and a
final report is due by December 15, 2025. This
is a onetime appropriation.

(tt)(1) $125,000 each year is for grants to the
Latino Chamber of Commerce Minnesota to
support the growth and expansion of small
businesses statewide. Funds may be used for
the cost of programming, outreach, staffing,
and supplies. This is a onetime appropriation.

(2) By January 15, 2026, the Latino Chamber
of Commerce Minnesota must submit a report
to the legislative committees with jurisdiction
over economic development that details the
use of grant funds and the grant's economic
impact.

(uu) $175,000 the first year is for a grant to
the city of South St. Paul new text begin to study options new text end for
repurposing the 1927 American Legion
Memorial Library after the property is no
longer used as a library. This appropriation is
available until the project is completed or
abandoned, subject to Minnesota Statutes,
section 16A.642.

(vv) $250,000 the first year is for a grant to
LatinoLEAD for organizational
capacity-building.

(ww) $80,000 the first year is for a grant to
the Neighborhood Development Center for
small business competitive grants to software
companies working to improve employee
engagement and workplace culture and to
reduce turnover.

(xx)(1) $3,000,000 in the first year is for a
grant to the Center for Economic Inclusion for
strategic, data-informed investments in job
creation strategies that respond to the needs
of underserved populations statewide. This
may include forgivable loans, revenue-based
financing, and equity investments for
entrepreneurs with barriers to growth. Of this
amount, up to five percent may be used for
the center's technical assistance and
administrative costs. This appropriation is
available until June 30, 2025.

(2) By January 15, 2026, the Center for
Economic Inclusion shall submit a report on
the use of grant funds, including any loans
made, to the legislative committees with
jurisdiction over economic development.

(yy) $500,000 deleted text begin each deleted text end new text begin the first new text end year is for a grant
to the Asian Economic Development
Association for asset building and financial
empowerment for entrepreneurs and small
business owners, small business development
and technical assistance, and cultural
placemaking. This is a onetime appropriation.

(zz) $500,000 each year is for a grant to
Isuroon to support primarily African
immigrant women with entrepreneurial
training to start, manage, and grow
self-sustaining microbusinesses, develop
incubator space for these businesses, and
provide support with financial and language
literacy, systems navigation to eliminate
capital access disparities, marketing, and other
technical assistance. This is a onetime
appropriation.

Sec. 3.

Laws 2023, chapter 53, article 20, section 3, is amended to read:

Sec. 3. EXPLORE MINNESOTA TOURISM

$

deleted text begin 40,954,000 deleted text end new text begin 40,554,000 new text end

$

21,369,000

(a) $500,000 each year must be matched from
nonstate sources to develop maximum private
sector involvement in tourism. Each $1 of state
incentive must be matched with $6 of private
sector money. "Matched" means revenue to
the state or documented in-kind, soft match,
or cash expenditures directly expended to
support Explore Minnesota Tourism under
Minnesota Statutes, section 116U.05. The
incentive in fiscal year 2024 is based on fiscal
year 2023 private sector contributions. The
incentive in fiscal year 2025 is based on fiscal
year 2024 private sector contributions. This
incentive is ongoing.

(b) $11,000,000 the first year is for the
development of Explore Minnesota for
Business under Minnesota Statutes, section
116U.07, to market the overall livability and
economic opportunities of Minnesota. This is
a onetime appropriation.

(c) $5,500,000 each year is for the
development of new initiatives for Explore
Minnesota Tourism. If the amount in the first
year is insufficient, the amount in the second
year is available in the first year. This is a
onetime appropriation.

(d) deleted text begin $6,047,000 deleted text end new text begin $5,647,000 new text end the first year and
$600,000 the second year is for grants for
infrastructure and associated costs for cultural
festivals and events, including but not limited
to buildout, permits, sanitation and
maintenance services, transportation, staffing,
event programming, public safety, facilities
and equipment rentals, signage, and insurance.
This is a onetime appropriation. Of this
amount:

(1) $1,847,000 the first year is for a grant to
the Minneapolis Downtown Council for the
Taste of Minnesota event;

(2) $1,200,000 the first year is for a grant to
the Stairstep Foundation for African American
cultural festivals and events;

(3) deleted text begin $1,200,000 deleted text end new text begin $800,000 new text end the first year is for
grants for Somali community and cultural
festivals and events, including festivals and
events in greater Minnesota, as follows:

(i) $400,000 is for a grant to Ka Joog; new text begin and
new text end

(ii) $400,000 is for a grant to the Somali
Museum of Minnesota; deleted text begin and
deleted text end

deleted text begin (iii) $400,000 is for a grant to ESHARA;
deleted text end

(4) $1,200,000 the first year is for a grant to
West Side Boosters for Latino cultural
festivals and events; and

(5) $600,000 the first year and $600,000 the
second year are for grants to the United
Hmong Family, Inc. for the Hmong
International Freedom Festival event.

(e) Money for marketing grants is available
either year of the biennium. Unexpended grant
money from the first year is available in the
second year.

(f) The base for Explore Minnesota is
$17,023,000 from the general fund in fiscal
year 2026 and each year thereafter.

Sec. 4. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Employment and Economic Development. new text end

new text begin $6,797,000
in fiscal year 2025 is appropriated from the general fund to the commissioner of employment
and economic development. This appropriation is onetime and in addition to the amounts
appropriated in Laws 2023, chapter 53. Of this amount:
new text end

new text begin (1) $500,000 is for a grant to the Asian Economic Development Association for asset
building and financial empowerment for entrepreneurs and small business owners, small
business development and technical assistance, and cultural placemaking. This amount is
available until June 30, 2027;
new text end

new text begin (2) $497,000 is for a grant to Propel Nonprofits for a microloan capital program to
provide assistance to organizations that primarily serve historically underserved communities,
including loans, forgivable loans, grants for working capital or regranting, and real estate
and technical assistance. Up to five percent of this amount may be used by the grantee for
administrative costs;
new text end

new text begin (3) $1,000,000 is for a grant to the New American Development Center to provide small
businesses and entrepreneurs with technical assistance, financial education, training, and
lending and to build the grantee's capacity;
new text end

new text begin (4) $1,000,000 is for a grant to the Entrepreneur Fund to capitalize their revolving loan
funds to address unmet financing needs in northeast Minnesota of for-profit business startups,
expansions, and ownership transitions;
new text end

new text begin (5) $500,000 is for a grant to the Coalition of Asian American Leaders to support
outreach, training, technical assistance, peer network development, and direct financial
assistance for Asian Minnesotan women entrepreneurs. This amount is available until June
30, 2026;
new text end

new text begin (6) $300,000 is for a grant to Fortis Capital for a revolving loan fund to provide
risk-mitigating capital for commercial development activities in underserved communities
and to entrepreneurs from disadvantaged groups statewide. This amount is available until
expended and up to ten percent of the amount may be used for administrative costs;
new text end

new text begin (7) $500,000 is for a grant to Arrowhead Economic Opportunity Agency to develop a
new service center; and
new text end

new text begin (8) $2,500,000 is for Launch Minnesota and is available until June 30, 2027. Of this
amount:
new text end

new text begin (i) $1,500,000 is for innovation grants to eligible Minnesota entrepreneurs or start-up
businesses to assist with their operating needs;
new text end

new text begin (ii) $500,000 is for administration of Launch Minnesota; and
new text end

new text begin (iii) $500,000 is for grantee activities at Launch Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Explore Minnesota. new text end

new text begin $3,425,000 in fiscal year 2025 is appropriated from the
general fund to Explore Minnesota. This appropriation is in addition to the amounts
appropriated in Laws 2023, chapter 53, and, except as otherwise specified, is onetime. Of
this amount:
new text end

new text begin (1) $725,000 is for Explore Minnesota Film. The base for this appropriation is $525,000
in fiscal year 2026 and $525,000 in fiscal year 2027;
new text end

new text begin (2) $300,000 is for Explore Minnesota Film for the film production jobs program under
Minnesota Statutes, section 116U.26. The base for this appropriation is $300,000 in fiscal
year 2026 and $300,000 in fiscal year 2027;
new text end

new text begin (3) $400,000 is for a grant to Ka Joog for Somali community and cultural festivals and
events, including festivals and events in greater Minnesota;
new text end

new text begin (4) $1,000,000 is for a grant to Minnesota Sports and Events for the World Junior Hockey
Championships; and
new text end

new text begin (5) $1,000,000 is for a grant to 2026 Special Olympics USA Games. This amount is
available until June 30, 2027.
new text end

Sec. 5. new text begin CANCELLATIONS OF PRIOR APPROPRIATIONS.
new text end

new text begin The $5,000,000 fiscal year 2024 appropriation from the general fund in Laws 2023,
chapter 53, article 20, section 2, subdivision 2, paragraph (dd), is canceled.
new text end

ARTICLE 2

ECONOMIC DEVELOPMENT

Section 1.

Minnesota Statutes 2022, section 116J.435, subdivision 3, is amended to read:

Subd. 3.

Grant program established.

(a) The commissioner shall make deleted text begin competitive deleted text end
grants to local governmental units to acquire and prepare land on which public infrastructure
required to support an eligible project will be located deleted text begin , including demolition of structures
and remediation of any hazardous conditions on the land, or to predesign, design, acquire, deleted text end
new text begin and to new text end construct, furnish, and equip public infrastructure required to support an eligible
project. The local governmental unit receiving a grant must provide for the remainder of
the public infrastructure costs from other sources. deleted text begin The commissioner may waive the
requirements related to an eligible project under subdivision 2 if a project would be eligible
under this section but for the fact that its location requires infrastructure improvements to
residential development.
deleted text end

(b) The amount of a grant may not exceed deleted text begin the lesser of the cost of the public infrastructure
or deleted text end 50 percent of the sum of the cost of the public infrastructure deleted text begin plus the cost of the completed
eligible deleted text end project.

(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax
base, or to expand or create new economic development through the growth of new
innovative businesses and organizations.

Sec. 2.

Minnesota Statutes 2022, section 116J.435, subdivision 4, is amended to read:

Subd. 4.

Application.

(a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for grants under this section. At a minimum, a local
governmental unit must include deleted text begin the following information deleted text end in its application new text begin a resolution
certifying that the money required to be supplied by the local governmental unit to complete
the public infrastructure project is available and committed. The commissioner must evaluate
complete applications for eligible projects using the following criteria new text end :

(1) deleted text begin a resolution of its governing body certifying that the money required to be supplied
by the local governmental unit to complete the public infrastructure is available and
committed deleted text end new text begin the project is an eligible project as defined under subdivision 2 new text end ;

(2) deleted text begin a detailed estimate, along with necessary supporting evidence, of the total development
costs for the public infrastructure and eligible project deleted text end new text begin the project is expected to result in or
will attract substantial public and private capital investment and provide substantial economic
benefit to the county or city in which the project would be located new text end ;

(3) deleted text begin an assessment of the potential or likely use of the site for innovative business activities
after completion of the public infrastructure and eligible project deleted text end new text begin the project is not relocating
substantially the same operation from another location in the state, unless the commissioner
determines the project cannot be reasonably accommodated within the county or city in
which the business is currently located, or the business would otherwise relocate to another
state new text end ; new text begin and
new text end

(4) deleted text begin a timeline indicating the major milestones of the public infrastructure and eligible
project and their anticipated completion dates; deleted text end new text begin the project is expected to create or retain
full-time jobs.
new text end

deleted text begin (5) a commitment from the governing body to repay the grant if the milestones are not
realized by the completion date identified in clause (4); and
deleted text end

deleted text begin (6) any additional information or material the commissioner prescribes.
deleted text end

(b) The determination of whether to make a grant deleted text begin under subdivision 3 deleted text end new text begin for a site new text end is within
the discretion of the commissioner, subject to this section. The commissioner's decisions
and application of the deleted text begin priorities deleted text end new text begin criteria new text end are not subject to judicial review, except for abuse
of discretion.

Sec. 3.

Minnesota Statutes 2022, section 116J.5492, subdivision 2, is amended to read:

Subd. 2.

Membership.

(a) The advisory committee consists of 18 voting members and
eight ex officio nonvoting members.

(b) The voting members of the advisory committee are appointed by the commissioner
of employment and economic development, except as specified below:

(1) two members of the senate, one appointed by the majority leader of the senate and
one appointed by the minority leader of the senate;

(2) two members of the house of representatives, one appointed by the speaker of the
house of representatives and one appointed by the minority leader of the house of
representatives;

(3) one representative of the Prairie Island Indian community;

(4) four representatives of impacted communities, of which two must represent counties
and two must represent municipalities, and, to the extent possible, of the impacted facilities
in those communities, at least one must be a coal plant, at least one must be a nuclear plant,
and at least one must be a natural gas plant;

(5) three representatives of impacted workers at impacted facilities;

(6) one representative of impacted workers employed by companies that, under contract,
regularly perform construction, maintenance, or repair work at an impacted facility;

(7) one representative with professional economic development or workforce retraining
experience;

(8) two representatives of utilities that operate an impacted facility;

(9) one representative from a nonprofit organization with expertise and experience
delivering energy efficiency and conservation programs; deleted text begin and
deleted text end

new text begin (10) one representative of a school district facing revenue loss due to energy transition;
and
new text end

deleted text begin (10) deleted text end new text begin (11) new text end one representative from the Coalition of Utility Cities.

(c) The ex officio nonvoting members of the advisory committee consist of:

(1) the governor or the governor's designee;

(2) the commissioner of employment and economic development or the commissioner's
designee;

(3) the commissioner of commerce or the commissioner's designee;

(4) the commissioner of labor and industry or the commissioner's designee;

(5) the commissioner of revenue or the commissioner's designee;

(6) the executive secretary of the Public Utilities Commission or the secretary's designee;

(7) the commissioner of the Pollution Control Agency or the commissioner's designee;
and

(8) the chancellor of the Minnesota State Colleges and Universities or the chancellor's
designee.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms in this
subdivision have the meanings given.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Partner organizations" or "partners" means:

(1) nonprofit organizations or public entities, including higher education institutions,
engaged in business development or economic development;

(2) community development financial institutions; deleted text begin or
deleted text end

(3) community development corporations new text begin ; and
new text end

new text begin (4) Tribal economic development entities new text end .

(d) "Small business" has the meaning given in section 3 of the Small Business Act,
United States Code, title 15, section 632.

(e) "Underserved populations and geographies" means individuals who are Black,
Indigenous, people of color, veterans, people with disabilities, people who are LGBTQ+,
and low-income individuals and includes people from rural Minnesota.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 3, is amended
to read:

Subd. 3.

Small business assistance partnerships grants.

(a) The commissioner shall
make small business assistance partnerships grants to local and regional community-based
organizations to provide small business development and technical assistance services to
entrepreneurs and small business owners. The commissioner must prioritize applications
that provide services to underserved populations and geographies.

(b) Grantees shall use the grant funds to provide high-quality, free deleted text begin or low-cost deleted text end
professional business development and technical assistance services that support the start-up,
growth, and success of Minnesota's entrepreneurs and small business owners.

new text begin (c) Grantees may use up to 15 percent of grant funds for expenses incurred while
administering the grant, including but not limited to expenses related to technology, utilities,
legal services, training, accounting, insurance, financial management, benefits, reporting,
servicing of loans, and audits.
new text end

Sec. 6.

Minnesota Statutes 2023 Supplement, section 116J.8733, is amended to read:

116J.8733 MINNESOTA EXPANDING OPPORTUNITY FUND PROGRAM.

Subdivision 1.

Establishment.

The Minnesota Expanding Opportunity Fund Program
is established to capitalize Minnesota nonprofit corporations new text begin , Tribal economic development
entities, and community development financial institutions new text end to increase lending activities
with Minnesota small businesses.

Subd. 2.

Long-term loans.

The department may make long-term loans of ten to 12 years
at 0.5 percent or lower interest rates to nonprofit corporations new text begin , Tribal economic development
entities, and community development financial institutions new text end to enable nonprofit corporations new text begin ,
Tribal economic development entities, and community development financial institutions new text end
to make more loans to Minnesota small businesses. The department may use the interest
received to offset the cost of administering small business lending programs.

Subd. 3.

Loan eligibility deleted text begin ; nonprofit corporation deleted text end .

(a) The eligible nonprofit corporation new text begin ,
Tribal economic development entity, or community development financial institution new text end must
not meet the definition of recipient under section 116J.993, subdivision 6.

(b) The commissioner may enter into loan agreements with Minnesota nonprofit
corporations new text begin , Tribal economic development entities, and community development financial
institutions new text end that apply to participate in the Minnesota Expanding Opportunity Fund Program.
The commissioner shall evaluate applications from applicant nonprofit corporations new text begin , Tribal
economic development entities, and community development financial institutions new text end . In
evaluating applications, the department must consider, among other things, whether the
nonprofit corporation new text begin , Tribal economic development entity, or community development
financial institution new text end :

(1) meets the statutory definition of a community development financial institution as
defined in section 103 of the Riegle Community Development and Regulatory Improvement
Act of 1994, United States Code, title 12, section 4702;

(2) has a board of directors or loan or credit committee that includes citizens experienced
in small business services and community development;

(3) has the technical skills to analyze small business loan requests;

(4) is familiar with other available public and private funding sources and economic
development programs;

(5) is enrolled in one or more eligible federally funded state programs; and

(6) has the administrative capacity to manage a loan portfolio.

Subd. 4.

Revolving loan fund.

(a) The commissioner shall establish a revolving loan
fund to make loans to nonprofit corporations new text begin , Tribal economic development entities, and
community development financial institutions new text end for the purpose of increasing nonprofit
corporation new text begin , Tribal economic development entity, and community development financial
institution new text end capital and lending activities with Minnesota small businesses.

(b) Nonprofit corporations new text begin , Tribal economic development entities, and community
development financial institutions new text end that receive loans from the commissioner under the
program must establish appropriate accounting practices for the purpose of tracking eligible
loans.

Subd. 5.

Loan portfolio administration.

(a) The new text begin fee or new text end interest rate charged by a
nonprofit corporation new text begin , Tribal economic development entity, or community development
financial institution new text end for a loan under this subdivision must not exceed deleted text begin the Wall Street Journal
prime rate plus two deleted text end new text begin ten new text end percent. A nonprofit corporation new text begin , Tribal economic development
entity, or community development financial institution new text end participating in the Minnesota
Expanding Opportunity Fund Program may charge a loan closing fee equal to or less than
deleted text begin two deleted text end new text begin one new text end percent of the loan value.

(b) The nonprofit corporation new text begin , Tribal economic development entity, or community
development financial institution new text end may retain all earnings from fees and interest from loans
to small businesses.

new text begin (c) The department must provide the nonprofit corporation, Tribal economic development
entity, or community development financial institution making the loan with a fee equal to
one percent of the loan value for every loan closed to offset related expenses for loan
processing, loan servicing, legal filings, and reporting.
new text end

Subd. 6.

Cooperation.

A nonprofit corporation new text begin , Tribal economic development entity,
or community development financial institution new text end that receives a program loan shall cooperate
with other organizations, including but not limited to community development corporations,
community action agencies, and the Minnesota small business development centers.

Subd. 7.

Reporting requirements.

(a) A nonprofit corporation new text begin , Tribal economic
development entity, or community development financial institution new text end that receives a program
loan must submit an annual report to the commissioner by February 15 of each year that
includes:

(1) the number of businesses to which a loan was made;

(2) a description of businesses supported by the program;

(3) demographic information, as specified by the commissioner, regarding each borrower;

(4) an account of loans made during the calendar year;

(5) the program's impact on job creation and retention;

(6) the source and amount of money collected and distributed by the program;

(7) the program's assets and liabilities; and

(8) an explanation of administrative expenses.

(b) A nonprofit corporation new text begin , Tribal economic development entity, or community
development financial institution new text end that receives a program loan must provide for an
independent annual audit to be performed in accordance with generally accepted accounting
practices and auditing standards and submit a copy of each annual audit report to the
commissioner.

Sec. 7.

Minnesota Statutes 2023 Supplement, section 116J.8751, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2027.
new text end

Sec. 8.

Minnesota Statutes 2022, section 116M.18, is amended to read:

116M.18 MINNESOTA EMERGING ENTREPRENEUR PROGRAM.

Subdivision 1.

Establishment.

The Minnesota emerging entrepreneur program is
established to award grants to nonprofit corporations new text begin , Tribal economic development entities,
and community development financial institutions new text end to fund loans to businesses owned by
minority or low-income persons, women, veterans, or people with disabilities.

Subd. 1a.

Statewide loans.

To the extent there is sufficient eligible demand, loans shall
be made so that an approximately equal dollar amount of loans are made to businesses in
the metropolitan area as in the nonmetropolitan area. After March 31 of each fiscal year,
the department may allow loans to be made anywhere in the state without regard to
geographic area.

Subd. 1b.

Grants.

The department shall make grants to nonprofit corporations new text begin , Tribal
economic development entities, and community development financial institutions new text end to fund
loans to businesses owned by minority or low-income persons, women, veterans, or people
with disabilities to encourage private investment, to provide jobs for minority and low-income
persons, to create and strengthen minority business enterprises, and to promote economic
development in a low-income area.

Subd. 2.

Grant eligibility deleted text begin ; nonprofit corporation deleted text end .

(a) The department may enter into
agreements with nonprofit corporations new text begin , Tribal economic development entities, and
community development financial institutions new text end to fund loans the nonprofit corporation new text begin , Tribal
economic development entity, or community development financial institution new text end makes to
businesses owned by minority or low-income persons, women, veterans, or people with
disabilities. The department shall evaluate applications from nonprofit corporations new text begin , Tribal
economic development entities, and community development financial institutions new text end . In
evaluating applications, the department must consider, among other things, whether the
nonprofit corporation new text begin , Tribal economic development entity, or community development
financial institution new text end :

(1) has a board of directors that includes citizens experienced in business and community
development, minority business enterprises, addressing racial income disparities, and creating
jobs for low-income and minority persons;

(2) has the technical skills to analyze projects;

(3) is familiar with other available public and private funding sources and economic
development programs;

(4) can initiate and implement economic development projects;

(5) can establish and administer a revolving loan account or has operated a revolving
loan account;

(6) can work with job referral networks which assist minority and low-income persons;
and

(7) has established relationships with minority communities.

(b) The department shall review existing agreements with nonprofit corporations new text begin , Tribal
economic development entities, and community development financial institutions new text end every
five years and may renew or terminate the agreement based on the review. In making its
review, the department shall consider, among other criteria, the criteria in paragraph (a). new text begin
The department shall open the program to new applicants every two years.
new text end

Subd. 3.

Revolving loan fund.

(a) The department shall establish a revolving loan fund
to make grants to nonprofit corporations new text begin , Tribal economic development entities, and
community development financial institutions new text end for the purpose of making loans to businesses
owned by minority or low-income persons, women, veterans, or people with disabilities,
and to support minority business enterprises and job creation for minority and low-income
persons.

(b) Nonprofit corporations new text begin , Tribal economic development entities, and community
development financial institutions new text end that receive grants from the department under the program
must establish a commissioner-certified revolving loan fund for the purpose of making
eligible loans.

(c) Eligible business enterprises include, but are not limited to, technologically innovative
industries, value-added manufacturing, and information industries.

(d) Loan applications given preliminary approval by the nonprofit corporation new text begin , Tribal
economic development entity, or community development financial institution new text end must be
forwarded to the department deleted text begin for approval deleted text end . deleted text begin The commissioner must give final approval for
each loan made by the nonprofit corporation. deleted text end new text begin Nonprofit corporations, Tribal economic
development entities, and community development financial institutions designated as
preferred partners do not need final approval by the commissioner. All other loans must be
approved by the commissioner and the commissioner must make approval decisions within
20 days of receiving a loan application unless the application contains insufficient information
to make an approval decision. new text end The amount of the state funds contributed to any loan may
not exceed 50 percent of each loan. new text begin The commissioner must develop the criteria necessary
to receive loan forgiveness.
new text end

Subd. 4.

Business loan criteria.

(a) The criteria in this subdivision apply to loans made
by nonprofit corporations new text begin , Tribal economic development entities, and community
development financial institutions new text end under the program.

(b) Loans must be made to businesses that are not likely to undertake a project for which
loans are sought without assistance from the program.

(c) A loan must be used to support a business owned by a minority or a low-income
person, woman, veteran, or a person with disabilities. Priority must be given for loans to
the lowest income areas.

(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.

(e) The state contribution must be matched by at least an equal amount of new private
investment.

(f) A loan may not be used for a retail development project.

(g) The business must agree to work with job referral networks that focus on minority
and low-income applicants.

(h) Up to ten percent of a loan's principal amount may be forgiven if deleted text begin the department
approves and deleted text end the borrower has met lender new text begin and agency new text end criteria new text begin , new text end including being current with
all payments new text begin , for at least two years new text end . new text begin The commissioner must develop the criteria for receiving
loan forgiveness.
new text end

Subd. 4a.

Microenterprise loan.

(a) Program grants may be used to make microenterprise
loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans
are subject to this section except that:

(1) they may also be made to qualified retail businesses;

(2) they may be made for a minimum of $5,000 and a maximum of deleted text begin $35,000 deleted text end new text begin $40,000 new text end ;

(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum
of deleted text begin $50,000 deleted text end new text begin $55,000 new text end ; and

(4) they do not require a match.

(b) Up to ten percent of a loan's principal amount may be forgiven if deleted text begin the department
approves and deleted text end the borrower has met lender criteria new text begin , new text end including being current with all payments new text begin ,
for at least two years new text end .

Subd. 5.

Revolving fund administration.

(a) The department shall establish a minimum
interest rate new text begin or fee new text end for loans or guarantees to ensure that necessary loan administration costs
are covered. The interest rate charged by a nonprofit corporation new text begin , Tribal economic
development entity, or community development financial institution new text end for a loan under this
subdivision must not exceed the Wall Street Journal prime rate plus deleted text begin four deleted text end new text begin two new text end percent new text begin , with
a maximum rate of ten percent new text end . For a loan under this subdivision, the nonprofit corporation new text begin ,
Tribal economic development entity, or community development financial institution new text end may
charge a loan origination fee equal to or less than one percent of the loan value. The nonprofit
corporation new text begin , Tribal economic development entity, or community development financial
institution new text end may retain the amount of the origination fee.

(b) Loan repayment of principal must be paid to the department for deposit in the
revolving loan fund. Loan interest payments must be deposited in a revolving loan fund
created by the nonprofit corporation new text begin , Tribal economic development entity, or community
development financial institution new text end originating the loan being repaid for further distribution
or use, consistent with the criteria of this section.

(c) Administrative expenses of the nonprofit corporations new text begin , Tribal economic development
entities, and community development financial institutions new text end with whom the department enters
into agreements, including expenses incurred by a nonprofit corporation new text begin , Tribal economic
development entity, or community development financial institution new text end in providing financial,
technical, managerial, and marketing assistance to a business enterprise receiving a loan
under subdivision 4, may be paid out of the interest earned on loans and out of interest
earned on money invested by the state Board of Investment under section 116M.16,
subdivision 2, as may be provided by the department.

new text begin (d) The department must provide the nonprofit corporation, Tribal economic development
entity, or community development financial institution making the loan with a fee equal to
one percent of the loan value for every loan closed to offset related expenses for loan
processing, loan servicing, legal filings, and reporting.
new text end

Subd. 7.

Cooperation.

A nonprofit corporation new text begin , Tribal economic development entity,
or community development financial institution new text end that receives a program grant shall cooperate
with other organizations, including but not limited to, community development corporations,
community action agencies, and the Minnesota small business development centers.

Subd. 8.

Reporting requirements.

A nonprofit corporation new text begin , Tribal economic
development entity, or community development financial institution new text end that receives a program
grant shall:

(1) submit an annual report to the department by February 15 of each year that includes
a description of businesses supported by the grant program, an account of loans made during
the calendar year, the program's impact on minority business enterprises and job creation
for minority persons and low-income persons, the source and amount of money collected
and distributed by the program, the program's assets and liabilities, and an explanation of
administrative expenses; and

(2) provide for an independent annual audit to be performed in accordance with generally
accepted accounting practices and auditing standards and submit a copy of each annual
audit report to the department.

Subd. 9.

Small business emergency loan account.

The small business emergency loan
account is created as an account in the special revenue fund.

Sec. 9.

new text begin [116U.255] EXPLORE MINNESOTA FILM.
new text end

new text begin Subdivision 1. new text end

new text begin Office established; director. new text end

new text begin (a) Explore Minnesota Film is established
as an office within Explore Minnesota.
new text end

new text begin (b) The director of Explore Minnesota shall appoint the director of Explore Minnesota
Film. The director of Explore Minnesota Film must be qualified by experience with issues
related to film and television production and economic development.
new text end

new text begin (c) The office may employ staff necessary to carry out the duties required in this section.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The director of Explore Minnesota Film is authorized to:
new text end

new text begin (1) administer the film production jobs program and the film production credit program;
new text end

new text begin (2) promote Minnesota as a location for film and television production;
new text end

new text begin (3) assist in the establishment and implementation of programs related to film and
television production, including but not limited to permitting and workforce development;
new text end

new text begin (4) improve communication among local, state, federal, and private entities regarding
film and television production logistics and best practices;
new text end

new text begin (5) coordinate the development of statewide policies addressing film and television
production; and
new text end

new text begin (6) act as a liaison to production entities, workers, and state agencies.
new text end

Sec. 10.

Minnesota Statutes 2022, section 116U.26, is amended to read:

116U.26 FILM PRODUCTION JOBS PROGRAM.

(a) The film production jobs program is created. The program shall be operated by deleted text begin the
Minnesota Film and TV Board deleted text end new text begin Explore Minnesota Film new text end with administrative oversight and
control by the deleted text begin commissioner of employment and economic development deleted text end new text begin director of Explore
Minnesota new text end . The program shall make payment to producers of feature films, national television
or Internet programs, documentaries, music videos, and commercials that directly create
new film jobs in Minnesota. To be eligible for a payment, a producer must submit
documentation to deleted text begin the Minnesota Film and TV Board deleted text end new text begin Explore Minnesota Film new text end of expenditures
for production costs incurred in Minnesota that are directly attributable to the production
in Minnesota of a film product.

deleted text begin The Minnesota Film and TV Board deleted text end new text begin Explore Minnesota Film new text end shall make recommendations
to the deleted text begin commissioner of employment and economic development deleted text end new text begin director of Explore
Minnesota new text end about program payment, but the deleted text begin commissioner deleted text end new text begin director new text end has the authority to make
the final determination on payments. The deleted text begin commissioner's deleted text end new text begin director's new text end determination must be
based on proper documentation of eligible production costs submitted for payments. No
more than five percent of the funds appropriated for the program in any year may be expended
for administration, including costs for independent audits and financial reviews of projects.

(b) For the purposes of this section:

(1) "production costs" means the cost of the following:

(i) a story and scenario to be used for a film;

(ii) salaries of talent, management, and labor, including payments to personal services
corporations for the services of a performing artist;

(iii) set construction and operations, wardrobe, accessories, and related services;

(iv) photography, sound synchronization, lighting, and related services;

(v) editing and related services;

(vi) rental of facilities and equipment;

(vii) other direct costs of producing the film in accordance with generally accepted
entertainment industry practice;

(viii) above-the-line talent fees for nonresident talent; or

(ix) costs incurred during postproduction; and

(2) "film" means a feature film, television or Internet pilot, program, series, documentary,
music video, or television commercial, whether on film, video, or digital media. Film does
not include news, current events, public programming, or a program that includes weather
or market reports; a talk show; a production with respect to a questionnaire or contest; a
sports event or sports activity; a gala presentation or awards show; a finished production
that solicits funds; or a production for which the production company is required under
United States Code, title 18, section 2257, to maintain records with respect to a performer
portrayed in a single-media or multimedia program.

(c) Notwithstanding any other law to the contrary, deleted text begin the Minnesota Film and TV Board deleted text end new text begin
Explore Minnesota Film new text end may make reimbursements of: (1) up to 25 percent of production
costs for films that locate production outside the metropolitan area, as defined in section
473.121, subdivision 2, or that incur a minimum Minnesota expenditure of $1,000,000 in
the metropolitan area within a 12-month period; or (2) up to 20 percent of production costs
for films that incur less than $1,000,000 in Minnesota production costs in the metropolitan
area within a 12-month period.

Sec. 11.

Minnesota Statutes 2023 Supplement, section 116U.27, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer
upon receipt and approval of an initial application for a credit for a project that has not yet
been completed.

(c) "Application" means the application for a credit under subdivision 4.

deleted text begin (d) "Commissioner" means the commissioner of employment and economic development.
deleted text end

deleted text begin (e) deleted text end new text begin (d) new text end "Credit certificate" means a certificate issued by the commissioner upon receipt
and approval of the cost verification report in subdivision 4, paragraph (e).

new text begin (e) "Director" means the director of Explore Minnesota.
new text end

(f) "Eligible production costs" means eligible production costs as defined in section
116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
the production of a film project in Minnesota.

(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).

(h) "Project" means a film:

(1) that includes the promotion of Minnesota;

(2) for which the taxpayer has expended at least $1,000,000 in any consecutive 12-month
period beginning after expenditures are first paid in Minnesota for eligible production costs;
and

(3) to the extent practicable, that employs Minnesota residents.

new text begin Television commercials are exempt from the requirement under clause (1).
new text end

(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated
logo, approved by the deleted text begin commissioner and lasting approximately five seconds deleted text end new text begin director new text end , that
promotes Minnesota within its presentation in the end credits deleted text begin before the below-the-line crew
crawl deleted text end for the life of the project.

Sec. 12.

Minnesota Statutes 2023 Supplement, section 116U.27, subdivision 4, is amended
to read:

Subd. 4.

Applications; allocations.

(a) To qualify for a credit under this section, a
taxpayer must submit to the deleted text begin commissioner deleted text end new text begin director new text end an application for a credit in the form
prescribed by the deleted text begin commissioner deleted text end new text begin director new text end , in consultation with the commissioner of revenue.

(b) Upon approving an application for a credit that meets the requirements of this section,
the deleted text begin commissioner deleted text end new text begin director new text end shall issue allocation certificates that:

(1) verify eligibility for the credit;

(2) state the amount of credit anticipated for the eligible project, with the credit amount
up to 25 percent of eligible project costs; and

(3) state the taxable year in which the credit is allocated.

deleted text begin The commissioner must consult with the Minnesota Film and TV Board prior to issuing an
allocation certificate.
deleted text end

(c) The deleted text begin commissioner deleted text end new text begin director new text end must not issue allocation certificates for more than
$24,950,000 of credits each year. If the entire amount is not allocated in that taxable year,
any remaining amount is available for allocation for the four following taxable years until
the entire allocation has been made. The deleted text begin commissioner deleted text end new text begin director new text end must not award any credits
for taxable years beginning after December 31, 2030, and any unallocated amounts cancel
on that date.

(d) The deleted text begin commissioner deleted text end new text begin director new text end must allocate credits on a first-come, first-served basis.

(e) Upon completion of a project, the taxpayer shall submit to the deleted text begin commissioner deleted text end new text begin director new text end
a report prepared by an independent certified public accountant licensed in the state of
Minnesota to verify the amount of eligible production costs related to the project. The report
must be prepared in accordance with generally accepted accounting principles. Upon receipt
and approval of the cost verification report and other documents required by the
deleted text begin commissioner deleted text end new text begin director new text end , the deleted text begin commissioner deleted text end new text begin director new text end shall determine the final amount of eligible
production costs and issue a credit certificate to the taxpayer. The credit may not exceed
the anticipated credit amount on the allocation certificate. If the credit is less than the
anticipated amount on the allocation credit, the difference is returned to the amount available
for allocation under paragraph (c). To claim the credit under section 290.06, subdivision
39, or 297I.20, subdivision 4, a taxpayer must include a copy of the credit certificate as part
of the taxpayer's return.

Sec. 13.

Minnesota Statutes 2022, section 116U.27, subdivision 5, is amended to read:

Subd. 5.

Report required.

By January 15, 2025, the commissioner of revenue, in
consultation with the deleted text begin commissioner deleted text end new text begin director new text end , must provide a report to the chairs and ranking
minority members of the legislative committees with jurisdiction over economic development
and taxes. The report must comply with sections 3.195 and 3.197, and must detail the
following:

(1) the amount of credit certifications issued annually;

(2) the number of applications submitted, the number of allocation certificates issued,
the amount of allocation certificates issued, the number of reports submitted upon completion
of a project, and the number of credit certificates issued;

(3) the types of projects eligible for the credit;

(4) the total economic impact of the credit in Minnesota, including the calendar year
over calendar year percentage changes in the number of jobs held by Minnesota residents
in businesses having a primary North American Industry Classification System code of
512110 as reported to the commissioner, for calendar years 2019 through 2023;

(5) the number of taxpayers per tax type which are assignees of credit certificates under
subdivision 3;

(6) annual Minnesota taxes paid by businesses having a primary North American Industry
Classification System code of 512110, for taxable years beginning after December 31, 2018,
and before January 1, 2024; and

(7) any other information the commissioner of revenue, in consultation with the
deleted text begin commissioner deleted text end new text begin director new text end , deems necessary for purposes of claiming and administering the
credit.

Sec. 14.

Laws 2023, chapter 53, article 15, section 32, subdivision 6, is amended to read:

Subd. 6.

Administrative costs.

The commissioner of employment and economic
development may use up to one percent of the appropriation made for this section for
administrative expenses of the department. new text begin Of this amount, the Northland Foundation may
use up to five percent for administrative expenses.
new text end

Sec. 15.

Laws 2023, chapter 53, article 15, section 33, subdivision 4, is amended to read:

Subd. 4.

Loans to community businesses.

(a) A partner organization that receives a
grant under subdivision 3 shall establish a plan for making low-interest loans to community
businesses. The plan requires approval by the commissioner.

(b) Under the plan:

(1) the state contribution to each loan shall be no less than $50,000 and no more than
$500,000;

(2) loans shall be made for projects that are unlikely to be undertaken unless a loan is
received under the program;

(3) priority shall be given to loans to businesses in the lowest income areas;

(4) the new text begin fee or new text end interest rate on a loan shall not be higher than deleted text begin the Wall Street Journal prime
rate deleted text end new text begin ten percent new text end ;

(5) 50 percent of all repayments of principal on a loan under the program shall be used
to fund additional new text begin related new text end lending. The partner organization may retain the remainder of
loan repayments to service loans and provide further technical assistance;

(6) the partner organization may charge a loan origination fee of no more than one
percent of the loan value and may retain that origination fee; deleted text begin and
deleted text end

(7) a partner organization may not make a loan to a project in which it has an ownership
interest deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) up to 15 percent of a loan's principal amount may be forgiven by the partner
organization if the borrower has met all lending criteria developed by the partner organization
and the commissioner, including creating or retaining jobs and being current with all loan
payments, for at least two years.
new text end

Sec. 16.

Laws 2023, chapter 53, article 15, section 33, subdivision 5, is amended to read:

Subd. 5.

Reports.

(a) The partner organization shall submit a report to the commissioner
by deleted text begin January deleted text end new text begin December new text end 31 of 2024, 2025, and 2026. The report shall include:

(1) an account of all loans made through the program the preceding calendar year and
the impact of those loans on community businesses and job creation for targeted groups;

(2) information on the source and amount of money collected and distributed under the
program, its assets and liabilities, and an explanation of administrative expenses; and

(3) an independent audit of grant funds performed in accordance with generally accepted
accounting practices and auditing standards.

(b) By February 15 of deleted text begin 2024, deleted text end 2025, deleted text begin and deleted text end 2026, new text begin and 2027, new text end the commissioner shall submit
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over workforce and economic development on program outcomes, including
copies of all reports received under paragraph (a).

Sec. 17. new text begin BROOKLYN PARK BIOTECH INNOVATION DISTRICT.
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 following terms have
the meanings given.
new text end

new text begin (b) "Authority" means the Brooklyn Park Economic Development Authority.
new text end

new text begin (c) "Biotech innovation district" means a geographic area in the city identified in the
development plan.
new text end

new text begin (d) "City" means the city of Brooklyn Park.
new text end

new text begin (e) "Development plan" means the plan adopted under subdivision 2.
new text end

new text begin (f) "Project" means a project to implement the development plan.
new text end

new text begin (g) "Public infrastructure project" means a project financed at least partially with public
money to:
new text end

new text begin (1) acquire or remediate real property, including site improvement;
new text end

new text begin (2) demolish, repair, or rehabilitate buildings;
new text end

new text begin (3) install, construct, or reconstruct public infrastructure necessary for the biotech
innovation district;
new text end

new text begin (4) acquire, construct, reconstruct, develop, or equip parking facilities and other
transit-related facilities; and
new text end

new text begin (5) acquire, install, construct, reconstruct, develop, or equip recreational, social, cultural,
or tourism facilities.
new text end

new text begin Subd. 2. new text end

new text begin Development plan. new text end

new text begin (a) The authority must prepare a plan for the development
of a biotech innovation district within the city. At least 60 days prior to a hearing on adopting
the proposed development plan, the economic development authority must provide copies
of the proposed development plan to the city, which the city must make available to the
public in its offices and on the city's website. At least ten days before the hearing, the
authority must publish notice of the hearing in a newspaper selected by the city for
publication of the notice. At the hearing, the authority may only adopt the plan if it finds
that:
new text end

new text begin (1) the plan provides an outline for the development of the city as a site of biotech
innovation;
new text end

new text begin (2) the plan identifies the location of the proposed biotech innovation district;
new text end

new text begin (3) the plan is sufficiently complete, including the identification of planned and
anticipated projects, to indicate its relationship to definite state and local objectives;
new text end

new text begin (4) the proposed development affords maximum opportunity, consistent with the needs
of the city, county, and state, for the development of the city by private enterprise as a
biotech innovation district;
new text end

new text begin (5) the plan conforms to the general plan for the development of the city; and
new text end

new text begin (6) the plan includes:
new text end

new text begin (i) strategic planning consistent with a biotech innovation district;
new text end

new text begin (ii) a framework to identify and prioritize short- and long-term public investment and
public infrastructure project development and to facilitate private investment and
development;
new text end

new text begin (iii) land use planning;
new text end

new text begin (iv) multimodal transportation planning;
new text end

new text begin (v) goals, objectives, and strategies to increase racial equity and to create community
wealth for city residents, local businesses, and businesses owned by women and people of
color, guided by the city's racial equity principles; and
new text end

new text begin (vi) ongoing market research plans.
new text end

new text begin (b) In identifying planned and anticipated projects under paragraph (a), clause (2), the
authority must prioritize projects that will pay a wage covering the cost of living for Hennepin
County, calculated using the most recent report completed pursuant to Minnesota Statutes,
section 116J.013.
new text end

new text begin (c) The city must adopt the development plan within 60 days following its adoption by
the authority and may incorporate the development plan into the city's comprehensive plan.
Minnesota Statutes, section 15.99, does not apply to review and approval of the development
plan.
new text end

new text begin (d) The authority may modify the development plan at any time and must modify the
plan at least once every five years. To modify the development plan, the authority must
follow the same procedures set out in paragraph (a) for the development plan.
new text end

new text begin (e) When preparing the proposed development plan, the authority must seek input from
the community and other partners such as biotech trade associations, the City of Brooklyn
Park Planning Commission, the City of Brooklyn Park Community Long-Range Improvement
Committee, skilled trades, and other regional partners.
new text end

new text begin Subd. 3. new text end

new text begin Special powers; requirements; limitations. new text end

new text begin (a) In implementing the
development plan, the city may exercise the powers of a port authority under Minnesota
Statutes, sections 469.048 to 469.068.
new text end

new text begin (b) The city must provide financial and administrative support to the authority and may
appropriate city funds to the authority for its work in developing and implementing the
development plan.
new text end

new text begin (c) The city may issue general obligation bonds, revenue bonds, or other obligations to
finance the development and implementation of the development project. Debt undertaken
pursuant to this paragraph is not subject to the net debt limit in Minnesota Statutes, section
475.53. Approval of the electors is not necessary to issue bonds or other obligations under
this paragraph. The city may pledge any of its revenues, including property taxes and state
aid issued pursuant to Minnesota Statutes, section 469.47, to the obligations issued pursuant
to this paragraph. The city must not issue obligations that are only payable from or secured
by state aid issued pursuant to Minnesota Statutes, section 469.47.
new text end

new text begin (d) Notwithstanding Minnesota Statutes, section 469.068, the city and its authority need
not require competitive bidding on a parking facility or other public improvement constructed
to implement the development plan.
new text end

new text begin (e) Except as otherwise specified, all activities to develop and implement the development
plan must comply with applicable state law and regulations and city ordinances, zoning,
and planning requirements.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin Beginning in 2025, by February 15 of each year, the city and authority
must submit a joint report to the chairs and ranking minority members of the legislative
committees and divisions with jurisdiction over jobs and economic development. The report
must include:
new text end

new text begin (1) the development plan and any proposed changes to the development plan;
new text end

new text begin (2) information on the progress of projects identified in the development plan;
new text end

new text begin (3) costs and financing sources for the costs, including the amount paid with state aid
and local contributions of projects completed in the previous two years;
new text end

new text begin (4) estimated costs and financing sources for projects anticipated to start in the next two
years; and
new text end

new text begin (5) debt service schedules for all outstanding obligations of the city and authority for
debt issued for projects identified in the plan.
new text end

Sec. 18. new text begin PROMISE ACT GRANTS; 2023 APPROPRIATION.
new text end

new text begin The appropriation for the PROMISE grant program in Laws 2023, chapter 53, article
20, section 2, subdivision 2, paragraph (z), clause (3), item (ii), includes, in addition to the
corridors listed in item (ii), the following designated areas in South Minneapolis:
new text end

new text begin (1) Hennepin Avenue Commercial corridor;
new text end

new text begin (2) South Hennepin Community corridor; and
new text end

new text begin (3) Uptown Special Service District.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2023.
new text end

Sec. 19. new text begin PROMISE ACT LOANS; 2023 APPROPRIATION.
new text end

new text begin The appropriation for the PROMISE loan program in Laws 2023, chapter 53, article 20,
section 2, subdivision 2, paragraph (aa), clause (3), item (ii), includes, in addition to the
corridors listed in item (ii), the following designated areas in South Minneapolis:
new text end

new text begin (1) Hennepin Avenue Commercial corridor;
new text end

new text begin (2) South Hennepin Community corridor; and
new text end

new text begin (3) Uptown Special Service District.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from July 1, 2023.
new text end

Sec. 20. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 116J.435, subdivision 5, new text end new text begin is repealed.
new text end

ARTICLE 3

WORKFORCE DEVELOPMENT APPROPRIATIONS

Section 1.

Laws 2023, chapter 53, article 20, section 2, subdivision 4, is amended to read:

Subd. 4. General Support Services

18,045,000

8,045,000

Appropriations by Fund
	2024	2025
General Fund	17,950,000	7,950,000
Workforce Development	95,000	95,000

new text begin The base for the general support services
division in fiscal year 2026 is $5,950,000 for
the general fund and $95,000 for the
workforce development fund.
new text end

(a) $1,269,000 each year is for transfer to the
Minnesota Housing Finance Agency for
operating the Olmstead Compliance Office.

(b) $10,000,000 the first year is for the
workforce digital transformation projects. This
appropriation is onetime and is available until
June 30, 2027.

Sec. 2.

Laws 2023, chapter 53, article 20, section 2, subdivision 6, is amended to read:

Subd. 6. Vocational Rehabilitation

45,691,000

deleted text begin 45,691,000 deleted text end new text begin 40,636,000 new text end

Appropriations by Fund
	2024	2025
General	37,861,000	deleted text begin 37,861,000 deleted text end new text begin 32,806,000 new text end
Workforce Development	7,830,000	7,830,000

(a) $14,300,000 each year is for the state's
vocational rehabilitation program under
Minnesota Statutes, chapter 268A.

(b) $11,495,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $4,500,000 each year is for
maintaining prior rate increases to providers
of extended employment services for persons
with severe disabilities under Minnesota
Statutes, section 268A.15.

(c) $5,055,000 deleted text begin each year deleted text end new text begin in the first year new text end is for
grants to programs that provide employment
support services to persons with mental illness
under Minnesota Statutes, sections 268A.13
and 268A.14 new text begin , and is available until June 30,
2025 new text end . The base for this appropriation is
$2,555,000 in fiscal year 2026 and each year
thereafter.

(d) $7,011,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11. This
appropriation is available until June 30, 2027.
The base for this appropriation is $3,011,000
in fiscal year 2026 and each year thereafter.

(e) $1,000,000 each year is from the workforce
development fund for grants under Minnesota
Statutes, section 268A.16, for employment
services for persons, including transition-age
youth, who are deaf, deafblind, or
hard-of-hearing. If the amount in the first year
is insufficient, the amount in the second year
is available in the first year.

Sec. 3. new text begin APPROPRIATIONS; DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT.
new text end

new text begin $16,750,000 in fiscal year 2025 is appropriated from the workforce development fund
to the commissioner of employment and economic development. This is a onetime
appropriation and is in addition to the amounts appropriated in Laws 2023, chapter 53. Of
this amount:
new text end

new text begin (1) $550,000 is for a grant to Sabathani Community Center for specialized community
outreach and engagement, a marketing and communication plan, program evaluation,
personal empowerment training for men, empowerment and truancy curriculum for youth,
wellness training for seniors, a workforce strategies mentorship and jobs training program,
a 15-passenger van, and service kiosks for the Sabathani Community Center, including a
onetime paid internship to support these programs;
new text end

new text begin (2) $700,000 is for a grant to the Shakopee Chamber Foundation for the Shakopee area
workforce development scholarship pilot program;
new text end

new text begin (3) $2,000,000 is for a grant to PFund Foundation for: (i) workforce development and
job skills training for LGBTQIA2S+ individuals; and (ii) medical, mental health, social,
and other service providers who serve those individuals. Up to five percent of this amount
may be used for the grantee's administrative costs;
new text end

new text begin (4) $200,000 is for a grant to Bolder Options Youth Mentoring Program for disadvantaged
youth ages 12 to 22 in the Bolder Options program in the Twin Cities and Rochester for
providing mentorship, programming, and educational, job placement, and job training
services;
new text end

new text begin (5) $200,000 is for a grant to the Greater Minneapolis Council of Churches for a STEM
training and career preparation program targeted at the needs of BIPOC youth who are at
least 11 years of age and less than 24 years of age. This amount is available until June 30,
2027;
new text end

new text begin (6) $255,000 is for a grant to the International Institute of Minnesota to expand their
business career pathways for new Americans by paying the costs of adding a new
employment counselor, a digital literacy instructor, and a professional leadership training
instructor, and associated program costs including entrepreneurship training and work
readiness training;
new text end

new text begin (7) $350,000 is for a grant to the city of Austin to develop and implement training
programs offered by Riverland Community College for water operators and for wastewater
operators. This amount is available until June 30, 2027. Of this amount: $100,000 is to
develop training programs for water supply system operators and wastewater treatment
facility operators; $100,000 is for personnel to staff the programs within the Riverland
Customized Training and Education division of Riverland Community College; $65,000 is
for marketing the programs; $35,000 is for the costs of Riverland Community College for
administering the programs; $35,000 is for equipment for the programs; and $15,000 is for
the costs of the city of Austin for administering the programs;
new text end

new text begin (8) $200,000 is for a grant to the Jobs Foundation for direct training, support services,
safety enhancements, and economic support for formerly incarcerated individuals
participating in the Repowered work readiness program;
new text end

new text begin (9) $280,000 is for a grant to Hired to create services for low-income Minnesotans
designed to increase job retention by offering a continuum of employment coaching,
navigation, and support services to economically disadvantaged employees leading to a
more stable workforce for employers;
new text end

new text begin (10) $100,000 is for a grant to Equaspace for work space, IT support, human resources
assistance, accounting, fundraising, and executive director support to be used to provide
work space and wrap-around services to small and startup nonprofit organizations;
new text end

new text begin (11) $1,000,000 is for a grant to Lakeview Methodist Health Care Center to expand
child care program capacity;
new text end

new text begin (12) $500,000 is for a grant to Change Starts With Community for the Change Starts
With Community Violence Prevention Program;
new text end

new text begin (13) $1,000,000 is for a grant to African Immigrants Community Services for workforce
development for new Americans;
new text end

new text begin (14) $1,000,000 is for a grant to WomenVenture for supporting child care providers by
providing business training, mentorship, services, and educational materials, by facilitating
shared administrative staff and pooled management of services such as banking and payroll,
by providing child care management software and software training, and by distributing
subgrants and loans, which may be forgivable at WomenVenture's discretion. This amount
is available until June 30, 2027;
new text end

new text begin (15) $1,000,000 is for a grant to the Black Chamber of Commerce for technical support
to Black-owned small businesses, for implementing initiatives to address barriers facing
the Black business community, and for networking, mentorship, and training programs.
This amount is available until June 30, 2027;
new text end

new text begin (16) $375,000 is to provide grants to secondary career and technical education programs
for the purpose of offering instruction in meat cutting and butchery, including the costs of
faculty training and of obtaining necessary equipment and facilities. The commissioner of
employment and economic development may prioritize funding to applicants that are
coordinating with Minnesota State Colleges and Universities institutions or with local
industry partners and may enter into an interagency agreement with the Department of
Agriculture for operation of the program, including agreements to transfer funds. By
November 1, 2025, the commissioner of employment and economic development must
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over agriculture finance, education finance, and workforce development finance
regarding all grants issued under this clause by county and the number and amount of grant
requests not fulfilled;
new text end

new text begin (17) $75,000 is for a grant to InspireMSP to develop programming to assist
middle-school-aged children in Minneapolis and St. Paul to develop an interest in and
connect with the creative industry in Minnesota;
new text end

new text begin (18) $150,000 is for a grant to Summit Academy OIC to start and enroll students in a
dental assistant program and to work with employers to place students in the field upon
successful completion of the program;
new text end

new text begin (19) $250,000 is for a grant to the Karen Organization of Minnesota for job training and
financial support and incentives for job training participants;
new text end

new text begin (20) $100,000 is for a grant to Indigenous Roots for soft skills training and career
readiness training for youth and dance instructors of the Cypher Side Dance School;
new text end

new text begin (21) $100,000 is for a grant to Ramsey County for a subgrant with Milestone Community
Development to provide competitive grants for culturally specific East African-led youth
workforce development programs, which must be awarded through at least two requests
for proposals, and this amount is available until June 30, 2026;
new text end

new text begin (22) $100,000 is for a grant to Ramsey County for a subgrant with People in Action to
provide workforce development programming. This amount is available until June 30, 2026,
and 40 percent of the amount must be expended within the city of St. Paul. Grants provided
by People in Action must be awarded through at least two requests for proposals;
new text end

new text begin (23) $700,000 is for a grant to the Metro Youth Diversion Center to support its
Youth-Care Assessment and Readiness Education program to enhance workforce
development opportunities for youth with a focus on underrepresented East African students;
new text end

new text begin (24) $174,000 is for a grant to Independent School District No. 709, Duluth, for a software
subscription to facilitate the career planning of students;
new text end

new text begin (25) $171,000 is for a grant to Independent School District No. 704, Proctor, to develop
a regional career and technical education program to serve Independent School District No.
704, Proctor, Independent School District No. 700, Hermantown, and Independent School
District No. 99, Esko;
new text end

new text begin (26) $100,000 is for a grant to Lake County Ambulance Service to establish a training
program for Cook County and Lake County high school students interested in pursuing
careers as emergency medical technicians;
new text end

new text begin (27) $2,000,000 is for a grant to the city of Brooklyn Park for the Brooklyn Park Small
Business Center and for the city to expand the workforce development programming of
Brooklyn Park and Brooklyn Center through workforce development programs serving
primarily underrepresented populations, including such programs as Brooklynk, Career
Pathways, Youth Entrepreneurship, and Community Partnership. This appropriation is
available until June 30, 2027;
new text end

new text begin (28) $750,000 is for a grant to Riverside Plaza Tenant Association to address employment,
economic, and technology access disparities for low-income unemployed or underemployed
individuals through training in health care, technology, and construction or skilled trades
industries;
new text end

new text begin (29) $150,000 is for a grant to African Career, Education, and Resources, Inc., to develop
a program for health care skills training and computer skills training in collaboration with
the Organization of Liberians in Minnesota;
new text end

new text begin (30) $150,000 is for a grant to the Organization of Liberians in Minnesota to develop a
program for health care skills training and computer skills training in collaboration with the
African Career, Education, and Resources, Inc.;
new text end

new text begin (31) $180,000 is for a grant to Equitable Development Action for it to fund programs
and provide technical assistance to underserved businesses;
new text end

new text begin (32) $50,000 is to for a grant to Ka Joog to operate a workforce technology training
center to provide job readiness, skills training, entrepreneurship training, digital literacy,
and ongoing career learning;
new text end

new text begin (33) $50,000 is for a grant to HIRPHA International for use on youth apprenticeships,
entrepreneurship training, computer skills, and work readiness training;
new text end

new text begin (34) $300,000 is for a grant to Theater Mu for planning and to design, redesign, renovate,
construct, furnish, and equip a building located in the city of St. Paul that will house a
workforce development program for working and aspiring BIPOC artists, administrative
offices, and a public gathering space for theater art;
new text end

new text begin (35) $100,000 is for a grant to Higher Works Collaborative to act as the fiscal agent for
the Center for African Immigrants and Refugees Organization to provide workforce training
by enhancing their youth programs that help students gain work experience, earn experience
in high-demand fields, and transition into family-sustaining careers;
new text end

new text begin (36) $450,000 is for a grant to YWCA St. Paul for a strategic intervention program
designed to target and connect program participants to meaningful, sustainable living wage
employment;
new text end

new text begin (37) $50,000 is for a grant to United Senior Lao American Association to provide job
and skills training for an underserved population;
new text end

new text begin (38) $100,000 is for a grant to Hmong American Farmers Association for workforce
readiness, employment exploration, and skills development;
new text end

new text begin (39) $240,000 is for a grant to MN Zej Zog for workforce readiness, employment
exploration, and skills development;
new text end

new text begin (40) $250,000 is for the Minnesota Family Resiliency Partnership under Minnesota
Statutes, section 116L.96;
new text end

new text begin (41) $150,000 is for a grant to Ramsey County for a Justice Impact Navigator to support
Ramsey County residents who have a justice impact or who are reentering the community
after incarceration to connect to resources with a focus on employment and training supports.
Funds will be used for a navigator pilot and other administrative expenses such as outreach,
marketing, and resources for residents; and
new text end

new text begin (42) $150,000 is for a grant to Ramsey County for a Digital Equity Specialist to support
Ramsey County residents with digital literacy resources and skills to connect to employment
and training supports. Funds must be used for a digital navigator pilot serving in Ramsey
County Career Labs and community-based locations and other administrative expenses,
such as outreach, marketing, and resources for residents.
new text end

Sec. 4. new text begin APPROPRIATION; UNIVERSITY OF MINNESOTA; THE CENTER FOR
NURSING EQUITY AND EXCELLENCE.
new text end

new text begin $250,000 in fiscal year 2025 is appropriated from the workforce development fund to
the Board of Regents of the University of Minnesota to perform the duties required to
establish and carry out the duties of the Center for Nursing Equity and Excellence. This is
a onetime appropriation.
new text end

Sec. 5. new text begin APPROPRIATIONS.
new text end

new text begin $5,055,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of employment and economic development for grants to programs that provide employment
support services to persons with mental illness under Minnesota Statutes, sections 268A.13
and 268A.14. This is a onetime appropriation and available until June 30, 2027.
new text end

ARTICLE 4

WORKFORCE DEVELOPMENT

Section 1.

Minnesota Statutes 2022, section 116J.8748, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following terms have
the meanings given.

(b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
under section 116J.994 that must include, but is not limited to: specification of the duration
of the agreement, job goals and a timeline for achieving those goals over the duration of
the agreement, construction and other investment goals and a timeline for achieving those
goals over the duration of the agreement, and the value of benefits the firm may receive
following achievement of capital investment and employment goals. The local government
and business must report to the commissioner on the business performance using the forms
developed by the commissioner.

(c) "Business" means an individual, corporation, partnership, limited liability company,
association, or other entity.

(d) "Capital investment" means money that is expended for the purpose of building or
improving real fixed property where employees under paragraphs (g) and (h) are or will be
employed and also includes construction materials, services, and supplies, and the purchase
and installation of equipment and machinery as provided under subdivision 4, paragraph
(b), clause (5).

(e) "Commissioner" means the commissioner of employment and economic development.

(f) "Minnesota job creation fund business" means a business that is designated by the
commissioner under subdivision 3.

(g) "Minority person" means a person belonging to a racial or ethnic minority as defined
in Code of Federal Regulations, title 49, section 23.5.

(h) "New full-time new text begin equivalent new text end employee" means an employee who:

(1) begins work at a Minnesota job creation fund business facility noted in a business
subsidy agreement and following the designation as a job creation fund business; and

(2) has expected work hours of at least 2,080 hours annually new text begin or the equivalent of
annualized expected hours of work equal to 2,080 hours of one or more employees new text end .

(i) "Persons with disabilities" means an individual with a disability, as defined under
the Americans with Disabilities Act, United States Code, title 42, section 12102.

(j) "Retained job new text begin equivalent new text end " means a full-time new text begin equivalent new text end position:

(1) that existed at the facility prior to the designation as a job creation fund business;
and

(2) has expected work hours of at least 2,080 hours annually new text begin or the equivalent of
annualized expected hours of work equal to 2,080 hours of one or more employees new text end .

(k) "Veteran" means a veteran as defined in section 197.447.

(l) "Wages" has the meaning given in section 290.92, subdivision 1, clause (1).

Sec. 2.

Minnesota Statutes 2023 Supplement, section 116J.8748, subdivision 3, is amended
to read:

Subd. 3.

Minnesota job creation fund business designation; requirements.

(a) To
receive designation as a Minnesota job creation fund business, a business must satisfy all
of the following conditions:

(1) the business is or will be engaged in, within Minnesota, one of the following as its
primary business activity:

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services provided
by attorneys, accountants, business consultants, physicians, or health care consultants, or
primarily engaged in making retail sales to purchasers who are physically present at the
business's location;

(3) the business must enter into a binding construction and job creation business subsidy
agreement with the commissioner to expend directly, or ensure expenditure by or in
partnership with a third party constructing or managing the project, at least $500,000 in
capital investment in a capital investment project that includes a new, expanded, or remodeled
facility within one year following designation as a Minnesota job creation fund business or
$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability; and:

(i) create at least ten new full-time new text begin equivalent new text end employee positions within two years of
the benefit date following the designation as a Minnesota job creation fund business or five
new full-time new text begin equivalent new text end employee positions within two years of the benefit date if the
project is located outside the metropolitan area as defined in section 200.02, subdivision
24, or if 51 percent of the business is cumulatively owned by minorities, veterans, women,
or persons with a disability; or

(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 100 new text begin full-time equivalent
new text end employees for projects located in the metropolitan area as defined in section 200.02,
subdivision 24, or expend at least $10,000,000, which may include the installation and
purchase of machinery and equipment, in capital investment and retain at least 50 new text begin full-time
equivalent new text end employees for projects located outside the metropolitan area;

(4) positions or employees moved or relocated from another Minnesota location of the
Minnesota job creation fund business must not be included in any calculation or determination
of job creation or new positions under this paragraph; and

(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
working hours of an employee for the purpose of hiring an individual to satisfy job creation
goals under this subdivision.

(b) Prior to approving the proposed designation of a business under this subdivision, the
commissioner shall consider the following:

(1) the economic outlook of the industry in which the business engages;

(2) the projected sales of the business that will be generated from outside the state of
Minnesota;

(3) how the business will build on existing regional, national, and international strengths
to diversify the state's economy;

(4) whether the business activity would occur without financial assistance;

(5) whether the business is unable to expand at an existing Minnesota operation due to
facility or land limitations;

(6) whether the business has viable location options outside Minnesota;

(7) the effect of financial assistance on industry competitors in Minnesota;

(8) financial contributions to the project made by local governments; and

(9) any other criteria the commissioner deems necessary.

(c) Upon receiving notification of local approval under subdivision 2, the commissioner
shall review the determination by the local government and consider the conditions listed
in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
area to designate a business as a Minnesota job creation fund business.

(d) If the commissioner designates a business as a Minnesota job creation fund business,
the business subsidy agreement shall include the performance outcome commitments and
the expected financial value of any Minnesota job creation fund benefits.

(e) The commissioner may amend an agreement once, upon request of a local government
on behalf of a business, only if the performance is expected to exceed thresholds stated in
the original agreement.

(f) A business may apply to be designated as a Minnesota job creation fund business at
the same location more than once only if all goals under a previous Minnesota job creation
fund agreement have been met and the agreement is completed.

Sec. 3.

Minnesota Statutes 2023 Supplement, section 116J.8748, subdivision 4, is amended
to read:

Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
outside the metropolitan area may be for up to seven years in length. The eligibility for the
following benefits begins the date the commissioner certifies the business as a qualified
Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and 100 new
new text begin full-time equivalent new text end employees in the metropolitan area as defined in section 200.02,
subdivision 24, or at least $10,000,000 in capital investment and 50 new new text begin full-time equivalent
new text end employees for projects located outside the metropolitan area;

(4) up to $1,000,000 in capital investment rebates and up to $1,000,000 in job creation
awards are allowable for projects that have at least $25,000,000 in capital investment, which
may include the installation and purchase of machinery and equipment, and 100 retained
new text begin full-time equivalent new text end employees for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, or at least $10,000,000 in capital investment, which may
include the installation and purchase of machinery and equipment, and 50 retained new text begin full-time
equivalent new text end employees for projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4). Under paragraph (b), clause (4), a job
creation award of $2,000 per new text begin full-time equivalent job new text end retained deleted text begin job deleted text end may be provided one time
if the qualified Minnesota job creation fund business meets the minimum capital investment
and retained employee requirement as provided in paragraph (b), clause (4), for at least two
years.

(d) No rebates or award may be provided until the Minnesota job creation fund business
or a third party constructing or managing the project has at least $500,000 in capital
investment in the project and at least ten full-time new text begin equivalent new text end jobs have been created and
maintained for at least one year or the retained employees, as provided in paragraph (b),
clause (4), remain for at least one year. The agreement may require additional performance
outcomes that need to be achieved before rebates and awards are provided. If fewer retained
jobs are maintained, but still above the minimum under this subdivision, the capital
investment award shall be reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time new text begin equivalent
new text end employee added pursuant to the agreement total compensation, including benefits not
mandated by law, that on an annualized basis is equal to at least 110 percent of the federal
poverty level for a family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.

Sec. 4.

Minnesota Statutes 2023 Supplement, section 116J.8748, subdivision 6, is amended
to read:

Subd. 6.

Job creation award.

(a) A qualified Minnesota job creation fund business is
eligible for an annual award for each new new text begin full-time equivalent new text end job created and maintained
under subdivision 4, paragraph (b), clauses (2) and (3), by the business using the following
schedule: $1,000 for each job position paying annual wages at least $26,000 but less than
$35,000; $2,000 for each job position paying at least $35,000 but less than $45,000; $3,000
for each job position paying at least $45,000 but less than $55,000; and $4,000 for each job
position paying at least $55,000; and as noted in the goals under the agreement provided
under subdivision 1. These awards are increased by $1,000 if the business is located outside
the metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the
business is cumulatively owned by minorities, veterans, women, or persons with a disability.

(b) A qualified Minnesota job creation fund business is eligible for a onetime $2,000
award for each new text begin full-time equivalent new text end job retained and maintained under subdivision 4,
paragraph (b), clause (4), provided that each retained job pays total compensation, including
benefits not mandated by law, that on an annualized basis is equal to at least 150 percent
of the federal poverty level for a family of four.

(c) The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.

(d) Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.

Sec. 5.

Minnesota Statutes 2023 Supplement, section 116L.17, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given them in this subdivision.

(b) "Commissioner" means the commissioner of employment and economic development.

(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time
employment ceased or was working in the state at the time employment ceased and:

(1) has been permanently separated or has received a notice of permanent separation
from public or private sector employment and is eligible for or has exhausted entitlement
to unemployment benefits, and is unlikely to return to the previous industry or occupation;

(2) has been long-term unemployed and has limited opportunities for employment or
reemployment in the same or a similar occupation in the area in which the individual resides,
including older individuals who may have substantial barriers to employment by reason of
age;

(3) has been terminated or has received a notice of termination of employment as a result
of a plant closing or a substantial layoff at a plant, facility, or enterprise;

(4) has been self-employed, including farmers and ranchers, and is unemployed as a
result of general economic conditions in the community in which the individual resides or
because of natural disasters;

(5) is a veteran as defined by section 197.447, has been discharged or released from
active duty under honorable conditions within the last 36 months, and (i) is unemployed or
(ii) is employed in a job verified to be below the skill level and earning capacity of the
veteran;

(6) is an individual determined by the United States Department of Labor to be covered
by trade adjustment assistance under United States Code, title 19, sections 2271 to 2331,
as amended; deleted text begin or
deleted text end

(7) is a displaced homemaker. A "displaced homemaker" is an individual who has spent
a substantial number of years in the home providing homemaking service and (i) has been
dependent upon the financial support of another; and due to divorce, separation, death, or
disability of that person, must now find employment to self support; or (ii) derived the
substantial share of support from public assistance on account of dependents in the home
and no longer receives such support. To be eligible under this clause, the support must have
ceased while the worker resided in Minnesota deleted text begin . deleted text end new text begin ;
new text end

new text begin (8) is the spouse of a member of the United States armed forces who is on active duty
and who meets at least one of the following: (i) has lost employment as a direct result of
relocation to accommodate a permanent change in the service member's duty station; or (ii)
is unemployed or underemployed and facing barriers to obtaining or upgrading employment;
new text end

new text begin (9) is an individual with non-work-related injuries or illnesses who does not have a
workers' compensation case but needs support to re-enter or remain in the workforce; or
new text end

new text begin (10) is an adult with a low income, is a recipient of public assistance, or is deficient in
basic skills.
new text end

For the purposes of this section, "dislocated worker" does not include an individual who
was an employee, at the time employment ceased, of a political committee, political fund,
principal campaign committee, or party unit, as those terms are used in chapter 10A, or an
organization required to file with the federal elections commission.

(d) "Eligible organization" means a state or local government unit, nonprofit organization,
community action agency, business organization or association, or labor organization.

(e) "Plant closing" means the announced or actual permanent shutdown of a single site
of employment, or one or more facilities or operating units within a single site of
employment.

(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a
result of a plant closing, and which results in an employment loss at a single site of
employment during any 30-day period for at least 50 employees excluding those employees
that work less than 20 hours per week.

Sec. 6.

Minnesota Statutes 2023 Supplement, section 116L.43, subdivision 1, is amended
to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms have
the meanings given.

(b) "Community-based organization" means a nonprofit organization that:

(1) provides workforce development programming or services;

deleted text begin (2) has an annual organizational budget of no more than $1,000,000;
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end has its primary office located in a historically underserved community of color
or low-income community; and

deleted text begin (4) deleted text end new text begin (3) new text end serves a population that generally reflects the demographics of that local
community.

(c) "Entry level jobs" means part-time or full-time jobs that an individual can perform
without any prior education or experience.

(d) "High wage" means the income needed for a family to cover minimum necessary
expenses in a given geographic area, including food, child care, health care, housing, and
transportation.

(e) "Industry specific certification" means a credential an individual can earn to show
proficiency in a particular area or skill.

(f) "Remedial training" means additional training provided to staff following the
identification of a need and intended to increase proficiency in performing job tasks.

(g) "Small business" has the same meaning as section 645.445.

Sec. 7.

Minnesota Statutes 2022, section 268.035, subdivision 20, is amended to read:

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

(1) employment for the United States government or an instrumentality thereof, including
military service;

(2) employment for a state, other than Minnesota, or a political subdivision or
instrumentality thereof;

(3) employment for a foreign government;

(4) employment covered under the federal Railroad Unemployment Insurance Act;

(5) employment for a church or convention or association of churches, or a nonprofit
organization operated primarily for religious purposes that is operated, supervised, controlled,
or principally supported by a church or convention or association of churches;

(6) employment for an elementary or secondary school with a curriculum that includes
religious education that is operated by a church, a convention or association of churches,
or a nonprofit organization that is operated, supervised, controlled, or principally supported
by a church or convention or association of churches;

(7) employment for Minnesota or a political subdivision, or a nonprofit organization, of
a duly ordained or licensed minister of a church in the exercise of a ministry or by a member
of a religious order in the exercise of duties required by the order;

(8) employment for Minnesota or a political subdivision, or a nonprofit organization, of
an individual receiving rehabilitation of "sheltered" work in a facility conducted for the
purpose of carrying out a program of rehabilitation for individuals whose earning capacity
is impaired by age or physical or mental deficiency or injury or a program providing
"sheltered" work for individuals who because of an impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market. This clause applies only to
services performed in a facility certified by the Rehabilitation Services Branch of the
department or in a day training or habilitation program licensed by the Department of Human
Services;

(9) employment for Minnesota or a political subdivision, or a nonprofit organization, of
an individual receiving work relief or work training as part of an unemployment work relief
or work training program financed in whole or in part by any federal agency or an agency
of a state or political subdivision thereof. This clause does not apply to programs that require
unemployment benefit coverage for the participants;

(10) employment for Minnesota or a political subdivision, as an elected official, a member
of a legislative body, or a member of the judiciary;

(11) employment as a member of the Minnesota National Guard or Air National Guard;

(12) employment for Minnesota or a political subdivision, or instrumentality thereof, of
an individual serving on a temporary basis in case of fire, flood, tornado, or similar
emergency;

(13) employment as an election official or election worker for Minnesota or a political
subdivision, if the compensation for that employment was less than $1,000 in a calendar
year;

(14) employment for Minnesota that is a major policy-making or advisory position in
the unclassified service;

(15) employment for Minnesota in an unclassified position established under section
43A.08, subdivision 1a;

(16) employment for a political subdivision of Minnesota that is a nontenured major
policy making or advisory position;

(17) domestic employment in a private household, local college club, or local chapter
of a college fraternity or sorority, if the wages paid in any calendar quarter in either the
current or prior calendar year to all individuals in domestic employment totaled less than
$1,000.

"Domestic employment" includes all service in the operation and maintenance of a
private household, for a local college club, or local chapter of a college fraternity or sorority
as distinguished from service as an employee in the pursuit of an employer's trade or business;

(18) employment of an individual by a son, daughter, or spouse, and employment of a
child under the age of 18 by the child's father or mother;

(19) employment of an inmate of a custodial or penal institution;

(20) employment for a school, college, or university, by a student who is enrolled and
whose primary relation to the school, college, or university is as a student. This does not
include an individual whose primary relation to the school, college, or university is as an
employee who also takes courses;

(21) employment of an individual who is enrolled as a student in a full-time program at
a nonprofit or public educational institution that maintains a regular faculty and curriculum
and has a regularly organized body of students in attendance at the place where its educational
activities are carried on, taken for credit at the institution, that combines academic instruction
with work experience, if the employment is an integral part of the program, and the institution
has so certified to the employer, except that this clause does not apply to employment in a
program established for or on behalf of an employer or group of employers;

(22) employment of a foreign college or university student who works on a seasonal or
temporary basis under the J-1 visa summer work travel program described in Code of Federal
Regulations, title 22, section 62.32;

(23) employment of university, college, or professional school students in an internship
or other training program with the city of St. Paul or the city of Minneapolis under Laws
1990, chapter 570, article 6, section 3;

(24) employment for a hospital by a patient of the hospital. "Hospital" means an institution
that has been licensed by the Department of Health as a hospital;

(25) employment as a student nurse for a hospital or a nurses' training school by an
individual who is enrolled and is regularly attending classes in an accredited nurses' training
school;

(26) employment as an intern for a hospital by an individual who has completed a
four-year course in an accredited medical school;

(27) employment as an insurance salesperson, by other than a corporate officer, if all
the wages from the employment is solely by way of commission. The word "insurance"
includes an annuity and an optional annuity;

(28) employment as an officer of a township mutual insurance company or farmer's
mutual insurance company under chapter 67A;

(29) employment of a corporate officer, if the officer directly or indirectly, including
through a subsidiary or holding company, owns 25 percent or more of the employer
corporation, and employment of a member of a limited liability company, if the member
directly or indirectly, including through a subsidiary or holding company, owns 25 percent
or more of the employer limited liability company;

(30) employment as a real estate salesperson, other than a corporate officer, if all the
wages from the employment is solely by way of commission;

(31) employment as a direct seller as defined in United States Code, title 26, section
3508;

(32) employment of an individual under the age of 18 in the delivery or distribution of
newspapers or shopping news, not including delivery or distribution to any point for
subsequent delivery or distribution;

(33) casual employment performed for an individual, other than domestic employment
under clause (17), that does not promote or advance that employer's trade or business;

(34) employment in "agricultural employment" unless it is "covered agricultural
employment" under subdivision 11; deleted text begin or
deleted text end

(35) if employment during one-half or more of any pay period was covered employment,
all the employment for the pay period is covered employment; but if during more than
one-half of any pay period the employment was noncovered employment, then all of the
employment for the pay period is noncovered employment. "Pay period" means a period
of not more than a calendar month for which a payment or compensation is ordinarily made
to the employee by the employer deleted text begin . deleted text end new text begin ; or
new text end

new text begin (36) employment of a foreign agricultural worker who works on a seasonal or temporary
basis under the H-2A visa temporary agricultural employment program described in Code
of Federal Regulations, title 20, part 655.
new text end

Sec. 8.

Laws 2023, chapter 53, article 20, section 2, subdivision 3, is amended to read:

Subd. 3. Employment and Training Programs

112,038,000

104,499,000

Appropriations by Fund
	2024	2025
General	91,036,000	83,497,000
Workforce Development	21,002,000	21,002,000

(a) $500,000 each year from the general fund
and $500,000 each year from the workforce
development fund are for rural career
counseling coordinators in the workforce
service areas and for the purposes specified
under Minnesota Statutes, section 116L.667.

(b) $25,000,000 each year is for the targeted
population workforce grants under Minnesota
Statutes, section 116L.43. The department
may use up to five percent of this
appropriation for administration, monitoring,
and oversight of the program. Of this amount:

(1) $18,500,000 each year is for job and
entrepreneurial skills training grants under
Minnesota Statutes, section 116L.43,
subdivision 2;

(2) $1,500,000 each year is for diversity and
inclusion training for small employers under
Minnesota Statutes, section 116L.43,
subdivision 3; and

(3) $5,000,000 each year is for capacity
building grants under Minnesota Statutes,
section 116L.43, subdivision 4.

The base for this appropriation is $1,275,000
in fiscal year 2026 and each year thereafter.

(c) $750,000 each year is for the women and
high-wage, high-demand, nontraditional jobs
grant program under Minnesota Statutes,
section 116L.99. Of this amount, up to five
percent is for administration and monitoring
of the program.

(d) $10,000,000 each year is for the Drive for
Five Initiative to conduct outreach and provide
job skills training, career counseling, case
management, and supportive services for
careers in (1) technology, (2) labor, (3) the
caring professions, (4) manufacturing, and (5)
educational and professional services. This is
a onetime appropriation.

(e) Of the amounts appropriated in paragraph
(d), the commissioner must make $7,000,000
each year available through a competitive
request for proposal process. The grant awards
must be used to provide education and training
in the five industries identified in paragraph
(d). Education and training may include:

(1) student tutoring and testing support
services;

(2) training and employment placement in high
wage and high growth employment;

(3) assistance in obtaining industry-specific
certifications;

(4) remedial training leading to enrollment in
employment training programs or services;

(5) real-time work experience;

(6) career and educational counseling;

(7) work experience and internships; and

(8) supportive services.

(f) Of the amount appropriated in paragraph
(d), $2,000,000 each year must be awarded
through competitive grants made to trade
associations or chambers of commerce for job
placement services. Grant awards must be used
to encourage workforce training efforts to
ensure that efforts are aligned with employer
demands and that graduates are connected with
employers that are currently hiring. Trade
associations or chambers must partner with
employers with current or anticipated
employment opportunities and nonprofit
workforce training partners participating in
this program. The trade associations or
chambers must work closely with the industry
sector training providers in the five industries
identified in paragraph (d). Grant awards may
be used for:

(1) employer engagement strategies to align
employment opportunities for individuals
exiting workforce development training
programs. These strategies may include
business recruitment, job opening
development, employee recruitment, and job
matching. Trade associations must utilize the
state's labor exchange system;

(2) diversity, inclusion, and retention training
of their members to increase the business'
understanding of welcoming and retaining a
diverse workforce; and

(3) industry-specific training.

(g) Of the amount appropriated in paragraph
(d), $1,000,000 each year is to hire, train, and
deploy business services representatives in
local workforce development areas throughout
the state. Business services representatives
must work with an assigned local workforce
development area to address the hiring needs
of Minnesota's businesses by connecting job
seekers and program participants in the
CareerForce system. Business services
representatives serve in the classified service
of the state and operate as part of the agency's
Employment and Training Office. The
commissioner shall develop and implement
training materials and reporting and evaluation
procedures for the activities of the business
services representatives. The business services
representatives must:

(1) serve as the primary contact for businesses
in that area;

(2) actively engage employers by assisting
with matching employers to job seekers by
referring candidates, convening job fairs, and
assisting with job announcements; and

(3) work with the local area board and its
partners to identify candidates for openings in
small and midsize companies in the local area.

(h) $2,546,000 each year from the general fund
and $4,604,000 each year from the workforce
development fund are for the pathways to
prosperity competitive grant program. Of this
amount, up to five percent is for administration
and monitoring of the program.

(i) $500,000 each year is from the workforce
development fund for current Minnesota
affiliates of OIC of America, Inc. This
appropriation shall be divided equally among
the eligible centers.

(j) $1,000,000 each year is for competitive
grants to organizations providing services to
relieve economic disparities in the Southeast
Asian community through workforce
recruitment, development, job creation,
assistance of smaller organizations to increase
capacity, and outreach. Of this amount, up to
five percent is for administration and
monitoring of the program.

(k) $1,000,000 each year is for a competitive
grant program to provide grants to
organizations that provide support services for
individuals, such as job training, employment
preparation, internships, job assistance to
parents, financial literacy, academic and
behavioral interventions for low-performing
students, and youth intervention. Grants made
under this section must focus on low-income
communities, young adults from families with
a history of intergenerational poverty, and
communities of color. Of this amount, up to
five percent is for administration and
monitoring of the program.

(l) $750,000 each year from the general fund
and $6,698,000 each year from the workforce
development fund are for the youth-at-work
competitive grant program under Minnesota
Statutes, section 116L.562. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The base for this appropriation is $750,000
from the general fund and $3,348,000 from
the workforce development fund beginning in
fiscal year 2026 and each year thereafter.

(m) $1,093,000 each year is from the general
fund and $1,000,000 each year is from the
workforce development fund for the
youthbuild program under Minnesota Statutes,
sections 116L.361 to 116L.366. The base for
this appropriation is $1,000,000 from the
workforce development fund in fiscal year
2026 and each year thereafter.

(n) $4,511,000 each year from the general fund
and $4,050,000 each year from the workforce
development fund are for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561. The base for this
appropriation is $0 from the general fund and
$4,050,000 from the workforce development
fund in fiscal year 2026 and each year
thereafter.

(o) $750,000 each year is for the Office of
New Americans under Minnesota Statutes,
section 116J.4231.

(p) $1,000,000 each year from the workforce
development fund is for a grant to the
Minnesota Technology Association to support
the SciTech internship program, a program
that supports science, technology, engineering,
and math (STEM) internship opportunities for
two- and four-year college students and
graduate students in their fields of study. The
internship opportunities must match students
with paid internships within STEM disciplines
at small, for-profit companies located in
Minnesota having fewer than 250 employees
worldwide. At least 325 students must be
matched each year. No more than 15 percent
of the hires may be graduate students. Selected
hiring companies shall receive from the grant
50 percent of the wages paid to the intern,
capped at $3,000 per intern. The program must
work toward increasing the participation
among women or other underserved
populations. This is a onetime appropriation.

(q) $750,000 each year is for grants to the
Minneapolis Park and Recreation Board's Teen
Teamworks youth employment and training
programs. This is a onetime appropriation and
available until June 30, 2027. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
in the second year.

(r) $900,000 each year is for a grant to Avivo
to provide low-income individuals with career
education and job skills training that is fully
integrated with chemical and mental health
services. Of this amount, up to $250,000 each
year is for a grant to Avivo to provide
resources and support services to survivors of
sex trafficking and domestic abuse in the
greater St. Cloud area as they search for
employment. Program resources include but
are not limited to costs for day care,
transportation, housing, legal advice, procuring
documents required for employment, interview
clothing, technology, and Internet access. The
program shall also include public outreach and
corporate training components to communicate
to the public and potential employers about
the specific struggles faced by survivors as
they re-enter the workforce. This is a onetime
appropriation.

(s) $1,000,000 each year is for the getting to
work grant program under Minnesota Statutes,
section 116J.545. Of this amount, up to five
percent is for administration and monitoring
of the program. This is a onetime
appropriation.

(t) $400,000 each year is for a grant to the
nonprofit 30,000 Feet to fund youth
apprenticeship jobs, wraparound services,
after-school programming, and summer
learning loss prevention efforts targeted at
African American youth. This is a onetime
appropriation.

(u) $463,000 the first year is for a grant to the
Boys and Girls Club of Central Minnesota.
This is a onetime appropriation. Of this
amount:

(1) $313,000 is to fund one year of free
full-service programming for a new program
in Waite Park that will employ part-time youth
development staff and provide community
volunteer opportunities for people of all ages.
Career exploration and life skills programming
will be a significant dimension of
programming at this new site; and

(2) $150,000 is for planning and design for a
new multiuse facility for the Boys and Girls
Club of Waite Park and other community
partners, including the Waite Park Police
Department and the Whitney Senior Center.

(v) $1,000,000 each year is for a grant to the
Minnesota Alliance of Boys and Girls Clubs
to administer a statewide project of youth job
skills and career development. This project,
which may have career guidance components
including health and life skills, must be
designed to encourage, train, and assist youth
in early access to education and job-seeking
skills, work-based learning experience,
including career pathways in STEM learning,
career exploration and matching, and first job
placement through local community
partnerships and on-site job opportunities. This
grant requires a 25 percent match from
nonstate resources. This is a onetime
appropriation.

(w) $1,000,000 the first year is for a grant to
the Owatonna Area Chamber of Commerce
Foundation for the Learn and Earn Initiative
to help the Owatonna and Steele County
region grow and retain a talented workforce.
This is a onetime appropriation and is
available until June 30, 2025. Of this amount:

(1) $900,000 is to develop an advanced
manufacturing career pathway program for
youth and adult learners with shared learning
spaces, state-of-the-art equipment, and
instructional support to grow and retain talent
in Owatonna; and

(2) $100,000 is to create the Owatonna
Opportunity scholarship model for the Learn
and Earn Initiative for students and employers.

(x) $250,000 each year from the workforce
development fund is for a grant to the White
Bear Center for the Arts for establishing a paid
internship program for high school students
to learn professional development skills
through an arts perspective. This is a onetime
appropriation.

(y) $250,000 each year is for the Minnesota
Family Resiliency Partnership under
Minnesota Statutes, section 116L.96. The
commissioner, through the adult career
pathways program, shall distribute the money
to existing nonprofit and state displaced
homemaker programs. This is a onetime
appropriation.

(z) $600,000 each year is for a grant to East
Side Neighborhood Services. This is a onetime
appropriation of which:

(1) $300,000 each year is for the senior
community service employment program,
which provides work readiness training to
low-income adults ages 55 and older to
provide ongoing support and mentoring
services to the program participants as well as
the transition period from subsidized wages
to unsubsidized wages; and

(2) $300,000 each year is for the nursing
assistant plus program to serve the increased
need for growth of medical talent pipelines
through expansion of the existing program and
development of in-house training.

The amounts specified in clauses (1) and (2)
may also be used to enhance employment
programming for youth and young adults, ages
14 to 24, to introduce them to work culture,
develop essential work readiness skills, and
make career plans through paid internship
experiences and work readiness training.

(aa) $1,500,000 each year from the workforce
development fund is for a grant to Ujamaa
Place to assist primarily African American
men with job training, employment
preparation, internships, education, vocational
housing, and organizational capacity building.
This is a onetime appropriation.

(bb) $500,000 each year is for a grant to
Comunidades Organizando el Poder y la
Acción Latina (COPAL) for worker center
programming that supports primarily
low-income, migrant, and Latinx workers with
career planning, workforce training and
education, workers' rights advocacy, health
resources and navigation, and wealth creation
resources. This is a onetime appropriation.

(cc) $2,000,000 each year is for a grant to
Propel Nonprofits to provide capacity-building
grants and related technical assistance to small,
culturally specific organizations that primarily
serve historically underserved cultural
communities. Propel Nonprofits may only
award grants to nonprofit organizations that
have an annual organizational budget of less
than $1,000,000. These grants may be used
for:

(1) organizational infrastructure
improvements, including developing database
management systems and financial systems,
or other administrative needs that increase the
organization's ability to access new funding
sources;

(2) organizational workforce development,
including hiring culturally competent staff,
training and skills development, and other
methods of increasing staff capacity; or

(3) creating or expanding partnerships with
existing organizations that have specialized
expertise in order to increase capacity of the
grantee organization to improve services to
the community.

Of this amount, up to five percent may be used
by Propel Nonprofits for administrative costs.
This is a onetime appropriation.

(dd) $1,000,000 each year is for a grant to
Goodwill Easter Seals Minnesota and its
partners. The grant must be used to continue
the FATHER Project in Rochester, St. Cloud,
St. Paul, Minneapolis, and the surrounding
areas to assist fathers in overcoming barriers
that prevent fathers from supporting their
children economically and emotionally,
including with community re-entry following
confinement. This is a onetime appropriation.

(ee) $250,000 the first year is for a grant to
the ProStart and Hospitality Tourism
Management Program for a well-established,
proven, and successful education program that
helps young people advance careers in the
hospitality industry and addresses critical
long-term workforce shortages in that industry.

(ff) $450,000 each year is for grants to
Minnesota Diversified Industries to provide
inclusive employment opportunities and
services for people with disabilities. This is a
onetime appropriation.

(gg) $1,000,000 the first year is for a grant to
Minnesota Diversified Industries to assist
individuals with disabilities through the
unified work model by offering virtual and
in-person career skills classes augmented with
virtual reality tools. Minnesota Diversified
Industries shall submit a report on the number
and demographics of individuals served, hours
of career skills programming delivered,
outreach to employers, and recommendations
for future career skills delivery methods to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
labor and workforce development policy and
finance by January 15, 2026. This is a onetime
appropriation and is available until June 30,
2025.

(hh) $1,264,000 each year is for a grant to
Summit Academy OIC to expand employment
placement, GED preparation and
administration, and STEM programming in
the Twin Cities, Saint Cloud, and Bemidji.
This is a onetime appropriation.

(ii) $500,000 each year is for a grant to
Minnesota Independence College and
Community to provide employment
preparation, job placement, job retention, and
service coordination services to adults with
autism and learning differences. This is a
onetime appropriation.

(jj) $1,000,000 the first year and $2,000,000
the second year are for a clean economy
equitable workforce grant program. Money
must be used for grants to support partnership
development, planning, and implementation
of workforce readiness programs aimed at
workers who are Black, Indigenous, and
People of Color. Programs must include
workforce training, career development,
workers' rights training, employment
placement, and culturally appropriate job
readiness and must prepare workers for careers
in the high-demand fields of construction,
clean energy, and energy efficiency. Grants
must be given to nonprofit organizations that
serve historically disenfranchised
communities, including new Americans, with
preference for organizations that are new
providers of workforce programming or which
have partnership agreements with registered
apprenticeship programs. This is a onetime
appropriation.

(kk) $350,000 the first year and $25,000 the
second year are for a grant to the University
of Minnesota Tourism Center for the creation
and operation of an online hospitality training
program in partnership with Explore
Minnesota Tourism. This training program
must be made available at no cost to
Minnesota residents in an effort to address
critical workforce shortages in the hospitality
and tourism industries and assist in career
development. The base for this appropriation
is $25,000 in fiscal year 2026 and each year
thereafter for ongoing system maintenance,
management, and content updates.

(ll) $3,000,000 the first year is for competitive
grants to support high school robotics teams
and prepare youth for careers in STEM fields.
Of this amount, $2,000,000 is for creating
internships for high school students to work
at private companies in STEM fields,
including the payment of student stipends.
This is a onetime appropriation and is
available until June 30, 2028.

(mm) $750,000 each year is for grants to the
nonprofit Sanneh Foundation to fund
out-of-school new text begin and new text end summer programs focused
on mentoring and behavioral, social, and
emotional learning interventions and
enrichment activities directed toward
low-income students of color. This is a
onetime appropriation and available until June
30, deleted text begin 2026 deleted text end new text begin 2027 new text end .

(nn) $1,000,000 each year is for a grant to the
Hmong American Partnership to expand job
training and placement programs primarily
serving the Southeast Asian community. This
is a onetime appropriation.

(oo) $1,000,000 each year is for a grant to
Comunidades Latinas Unidas En Servicio
(CLUES) to address employment, economic,
and technology access disparities for
low-income unemployed or underemployed
individuals. Grant money must support
short-term certifications and transferable skills
in high-demand fields, workforce readiness,
customized financial capability, and
employment supports. At least 50 percent of
this amount must be used for programming
targeted at greater Minnesota. This is a
onetime appropriation.

(pp) $300,000 each year is for a grant to All
Square. The grant must be used to support the
operations of All Square's Fellowship and
Prison to Law Pipeline programs which
operate in Minneapolis, St. Paul, and
surrounding correctional facilities to assist
incarcerated and formerly incarcerated
Minnesotans in overcoming employment
barriers that prevent economic and emotional
freedom. This is a onetime appropriation.

(qq) $1,000,000 each year is for a grant to the
Redemption Project to provide employment
services to adults leaving incarceration,
including recruiting, educating, training, and
retaining employment mentors and partners.
This is a onetime appropriation.

(rr) $500,000 each year is for a grant to
Greater Twin Cities United Way to make
grants to partner organizations to provide
workforce training using the career pathways
model that helps students gain work
experience, earn experience in high-demand
fields, and transition into family-sustaining
careers. This is a onetime appropriation.

(ss) $3,000,000 each year is for a grant to
Community Action Partnership of Hennepin
County. This is a onetime appropriation. Of
this amount:

(1) $1,500,000 each year is for grants to 21
Days of Peace for social equity building and
community engagement activities; and

(2) $1,500,000 each year is for grants to A
Mother's Love for community outreach,
empowerment training, and employment and
career exploration services.

(tt) $750,000 each year is for a grant to Mind
the G.A.P.P. (Gaining Assistance to Prosperity
Program) to improve the quality of life of
unemployed and underemployed individuals
by improving their employment outcomes and
developing individual earnings potential. This
is a onetime appropriation. Any unencumbered
balance remaining at the end of the first year
does not cancel but is available in the second
year.

(uu) $550,000 each year is for a grant to the
International Institute of Minnesota. Grant
money must be used for workforce training
for new Americans in industries in need of a
trained workforce. This is a onetime
appropriation.

(vv) $400,000 each year from the workforce
development fund is for a grant to Hired to
expand their career pathway job training and
placement program that connects lower-skilled
job seekers to entry-level and gateway jobs in
high-growth sectors. This is a onetime
appropriation.

(ww) $500,000 each year is for a grant to the
American Indian Opportunities and
Industrialization Center for workforce
development programming, including reducing
academic disparities for American Indian
students and adults. This is a onetime
appropriation.

(xx) $500,000 each year from the workforce
development fund is for a grant to the Hmong
Chamber of Commerce to train ethnically
Southeast Asian business owners and
operators in better business practices. Of this
amount, up to $5,000 may be used for
administrative costs. This is a onetime
appropriation.

(yy) $275,000 each year is for a grant to
Southeast Minnesota Workforce Development
Area 8 and Workforce Development, Inc., to
provide career planning, career pathway
training and education, wraparound support
services, and job skills advancement in
high-demand careers to individuals with
barriers to employment in Steele County, and
to help families build secure pathways out of
poverty and address worker shortages in the
Owatonna and Steele County area, as well as
supporting Employer Outreach Services that
provide solutions to workforce challenges and
direct connections to workforce programming.
Money may be used for program expenses,
including but not limited to hiring instructors
and navigators; space rental; and supportive
services to help participants attend classes,
including assistance with course fees, child
care, transportation, and safe and stable
housing. Up to five percent of grant money
may be used for Workforce Development,
Inc.'s administrative costs. This is a onetime
appropriation and is available until June 30,
2027.

(zz) $589,000 the first year and $588,000 the
second year are for grants to the Black
Women's Wealth Alliance to provide
low-income individuals with job skills
training, career counseling, and job placement
assistance. This is a onetime appropriation.

(aaa) $250,000 each year is for a grant to
Abijahs on the Backside to provide equine
experiential mental health therapy to first
responders suffering from job-related trauma
and post-traumatic stress disorder. For
purposes of this paragraph, a "first responder"
is a peace officer as defined in Minnesota
Statutes, section 626.84, subdivision 1,
paragraph (c); a full-time firefighter as defined
in Minnesota Statutes, section 299N.03,
subdivision 5; or a volunteer firefighter as
defined in Minnesota Statutes, section
299N.03, subdivision 7.

Abijahs on the Backside must report to the
commissioner of employment and economic
development and the chairs and ranking
minority members of the legislative
committees with jurisdiction over employment
and economic development policy and finance
on the equine experiential mental health
therapy provided to first responders under this
paragraph. The report must include an
overview of the program's budget, a detailed
explanation of program expenditures, the
number of first responders served by the
program, and a list and explanation of the
services provided to and benefits received by
program participants. An initial report is due
by January 15, 2024, and a final report is due
by January 15, 2026. This is a onetime
appropriation.

(bbb) $500,000 each year is for a grant to
Ramsey County to provide job training and
workforce development for underserved
communities. Grant money may be subgranted
to Milestone Community Development for the
Milestone Tech program. This is a onetime
appropriation.

(ccc) $500,000 each year is for a grant to
Ramsey County for a technology training
pathway program focused on intergenerational
community tech work for residents who are
at least 18 years old and no more than 24 years
old and deleted text begin who live in a census tract that has a
poverty rate of at least 20 percent as reported
in the most recently completed decennial
census published by the United States Bureau
of the Census deleted text end new text begin whose household income is at
or below 200 percent of the federal poverty
level new text end . Grant money may be used for program
administration, training, training stipends,
wages, and support services. This is a onetime
appropriation.

(ddd) $200,000 each year is for a grant to
Project Restore Minnesota for the Social
Kitchen project, a pathway program for careers
in the culinary arts. This is a onetime
appropriation and is available until June 30,
2027.

(eee) $100,000 each year is for grants to the
Minnesota Grocers Association Foundation
for Carts to Careers, a statewide initiative to
promote careers, conduct outreach, provide
job skills training, and award scholarships for
students pursuing careers in the food industry.
This is a onetime appropriation.

(fff) $1,200,000 each year is for a grant to
Twin Cities R!SE. Of this amount, $700,000
each year is for performance grants under
Minnesota Statutes, section 116J.8747, to
Twin Cities R!SE to provide training to
individuals facing barriers to employment;
and $500,000 each year is to increase the
capacity of the Empowerment Institute through
employer partnerships across Minnesota and
expansion of the youth personal empowerment
curriculum. This is a onetime appropriation
and available until June 30, 2026.

(ggg) $750,000 each year is for a grant to
Bridges to Healthcare to provide career
education, wraparound support services, and
job skills training in high-demand health care
fields to low-income parents, nonnative
speakers of English, and other hard-to-train
individuals, helping families build secure
pathways out of poverty while also addressing
worker shortages in one of Minnesota's most
innovative industries. Grants may be used for
program expenses, including but not limited
to hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant money may be used for
Bridges to Healthcare's administrative costs.
This is a onetime appropriation.

(hhh) $500,000 each year is for a grant to Big
Brothers Big Sisters of the Greater Twin Cities
to provide disadvantaged youth ages 12 to 21
with job-seeking skills, connections to job
training and education opportunities, and
mentorship while exploring careers. The grant
shall serve youth in the Big Brothers Big
Sisters chapters in the Twin Cities, central
Minnesota, and southern Minnesota. This is a
onetime appropriation.

(iii) $3,000,000 each year is for a grant to
Youthprise to provide economic development
services designed to enhance long-term
economic self-sufficiency in communities with
concentrated African populations statewide.
Of these amounts, 50 percent is for subgrants
to Ka Joog and 50 percent is for competitive
subgrants to community organizations. This
is a onetime appropriation.

(jjj) $350,000 each year is for a grant to the
YWCA Minneapolis to provide training to
eligible individuals, including job skills
training, career counseling, and job placement
assistance necessary to secure a child
development associate credential and to have
a career path in early education. This is a
onetime appropriation.

(kkk) $500,000 each year is for a grant to
Emerge Community Development to support
and reinforce critical workforce training at the
Emerge Career and Technical Center, Cedar
Riverside Opportunity Center, and Emerge
Second Chance programs in the city of
Minneapolis. This is a onetime appropriation.

(lll) $425,000 each year is for a grant to Better
Futures Minnesota to provide job skills
training to individuals who have been released
from incarceration for a felony-level offense
and are no more than 12 months from the date
of release. This is a onetime appropriation.

Better Futures Minnesota shall annually report
to the commissioner on how the money was
spent and what results were achieved. The
report must include, at a minimum,
information and data about the number of
participants; participant homelessness,
employment, recidivism, and child support
compliance; and job skills training provided
to program participants.

(mmm) $500,000 each year is for a grant to
Pillsbury United Communities to provide job
training and workforce development services
for underserved communities. This is a
onetime appropriation.

(nnn) $500,000 each year is for a grant to
Project for Pride in Living for job training and
workforce development services for
underserved communities. This is a onetime
appropriation.

(ooo) $300,000 each year is for a grant to
YMCA of the North to provide career
exploration, job training, and workforce
development services for underserved youth
and young adults. This is a onetime
appropriation.

(ppp) $500,000 each year is for a grant to Al
Maa'uun, formerly the North at Work program,
for a strategic intervention program designed
to target and connect program participants to
meaningful, sustainable living wage
employment. This is a onetime appropriation.

(qqq) $500,000 each year is for a grant to
CAIRO to provide workforce development
services in health care, technology, and
transportation (CDL) industries. This is a
onetime appropriation.

(rrr) $500,000 each year is for a grant to the
Central Minnesota Community Empowerment
Organization for providing services to relieve
economic disparities in the African immigrant
community through workforce recruitment,
development, job creation, assistance of
smaller organizations to increase capacity, and
outreach. Of this amount, up to five percent
is for administration and monitoring of the
program. This is a onetime appropriation.

(sss) $270,000 each year is for a grant to the
Stairstep Foundation for community-based
workforce development efforts. This is a
onetime appropriation.

(ttt) $400,000 each year is for a grant to
Building Strong Communities, Inc, for a
statewide apprenticeship readiness program
to prepare women, BIPOC community
members, and veterans to enter the building
and construction trades. This is a onetime
appropriation.

(uuu) $150,000 each year is for prevailing
wage staff under Minnesota Statutes, section
116J.871, subdivision 2.

(vvv) $250,000 each year is for the purpose
of awarding a grant to Minnesota Community
of African People with Disabilities
(MNCAPD), Roots Connect, and Fortune
Relief and Youth Empowerment Organization
(FRAYEO). This is a onetime appropriation.
MNCAPD, Roots Connect, and FRAYEO
must use grant proceeds to provide funding
for workforce development activities for
at-risk youth from low-income families and
unengaged young adults experiencing
disabilities, including:

(1) job readiness training for at-risk youth,
including resume building, interview skills,
and job search strategies;

(2) on-the-job training opportunities with local
businesses;

(3) support services such as transportation
assistance and child care to help youth attend
job training programs; and

(4) mentorship and networking opportunities
to connect youth with professionals in the
youth's desired fields.

(www)(1) $250,000 each year is for a grant
to Greater Rochester Advocates for
Universities and Colleges (GRAUC), a
collaborative organization representing health
care, business, workforce development, and
higher education institutions, for expenses
relating to starting up a state-of-the-art
simulation center for training health care
workers in southeast Minnesota. Once
established, this center must be self-sustaining
through user fees. Eligible expenses include
leasing costs, developing and providing
training, and operational costs. This is a
onetime appropriation.

(2) By January 15, 2025, GRAUC must submit
a report, including an independent financial
audit of the use of grant money, to the chairs
and ranking minority members of the
legislative committees having jurisdiction over
higher education and economic development.
This report must include details on the training
provided at the simulation center, including
the names of all organizations that use the
center for training, the number of individuals
each organization trained, and the type of
training provided.

(xxx)(1) $350,000 each year is for a grant to
the Minnesota Association of Black Lawyers
for a pilot program supporting black
undergraduate students pursuing admission to
law school. This is a onetime appropriation.

(2) The program must:

(i) enroll an initial cohort of ten to 20 black
Minnesota resident students attending a
baccalaureate degree-granting postsecondary
institution in Minnesota full time;

(ii) support each of the program's students with
an academic scholarship in the amount of
$4,000 per academic year;

(iii) organize events and programming,
including but not limited to one-on-one
mentoring, to familiarize enrolled students
with law school and legal careers; and

(iv) provide the program's students free test
preparation materials, academic support, and
registration for the Law School Admission
Test (LSAT) examination.

(3) The Minnesota Association of Black
Lawyers may use grant funds under clause (1)
for costs related to:

(i) student scholarships;

(ii) academic events and programming,
including food and transportation costs for
students;

(iii) LSAT preparation materials, courses, and
registrations; and

(iv) hiring staff for the program.

(4) By January 30, 2024, and again by January
30, 2025, the Minnesota Association of Black
Lawyers must submit a report to the
commissioner and to the chairs and ranking
minority members of legislative committees
with jurisdiction over workforce development
finance and policy and higher education
finance and policy. The report must include
an accurate and detailed account of the pilot
program, its outcomes, and its revenues and
expenses, including the use of all state funds
appropriated in clause (1).

(yyy) $2,000,000 the first year is for a grant
to the Power of People Leadership Institute
(POPLI) to expand pre- and post-release
personal development and leadership training
and community reintegration services, to
reduce recidivism, and increase access to
employment. This is a onetime appropriation
and is available until June 30, 2025.

(zzz) $500,000 the first year is to the
Legislative Coordinating Commission for the
Working Group on Youth Interventions. This
is a onetime appropriation.

Sec. 9.

Laws 2023, chapter 53, article 21, section 6, is amended to read:

Sec. 6. TRANSFERS.

(a) In the biennium ending on June 30, 2025, the commissioner of management and
budget must transfer $400,000,000 from the general fund to the Minnesota forward fund
account established in Minnesota Statutes, section 116J.8752, subdivision 2. The base for
this transfer is $0.

(b) In the biennium ending on June 30, 2025, the commissioner of management and
budget shall transfer $25,000,000 from the general fund to the Minnesota climate innovation
authority account established in Minnesota Statutes, section 216C.441, subdivision 11. The
base for this transfer is $0.

(c) In the biennium ending on June 30, 2025, the commissioner of management and
budget must transfer $75,000,000 from the general fund to the state competitiveness fund
account established in Minnesota Statutes, section 216C.391, subdivision 2. Notwithstanding
Minnesota Statutes, section 216C.391, subdivision 2, the commissioner of commerce must
use this transfer for grants to eligible entities for projects receiving federal loans or tax
credits where the benefits are in disadvantaged communities. The base for this transfer is
$0. Up to three percent of money transferred under this paragraph is for administrative costs.

(d) deleted text begin In the biennium ending on June 30, 2027, deleted text end The commissioners of management and
budget, in consultation with the commissioners of employment and economic development
and commerce, may transfer money between the Minnesota forward fund account, the
Minnesota climate innovation authority account, and the state competitiveness fund account.
The commissioner of management and budget must notify the Legislative Advisory
Commission within 15 days of making transfers under this paragraph.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 10. new text begin CHANGE STARTS WITH COMMUNITY VIOLENCE PREVENTION
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Objectives. new text end

new text begin Change Starts With Community must:
new text end

new text begin (1) develop and implement year-round job training programs for at-risk youth and adults
and provide trusted adult mentorship for at-risk BIPOC youth, providing them with the
skills needed for gainful employment and career opportunities; and
new text end

new text begin (2) create on-site job opportunities at Shiloh Cares Food Shelf, promoting community
engagement and economic development.
new text end

new text begin Subd. 2. new text end

new text begin Partnerships. new text end

new text begin (a) Change Starts With Community shall partner with the Cargill
Foundation to support at-risk youth educational career field trips and mental health check-ins,
exposing participants to multiple career paths and preventing further trauma through mental
health check-ins for youth.
new text end

new text begin (b) Change Starts With Community shall partner with Hennepin County juvenile
corrections and the Minneapolis Police Department to receive referrals for at-risk youth
who would benefit from enrollment in the program to prevent risky behaviors and community
violence.
new text end

new text begin Subd. 3. new text end

new text begin At-risk youth and adult job program positions. new text end

new text begin Change Starts With
Community must use grant proceeds to add positions to the program's complement, including
but not limited to youth mentorships, food service workers, an executive director, a director,
and a program director.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin Change Starts With Community shall report to the commissioner of
employment and economic development, outlining the utilization of grant money, program
outcomes, and the impact on the targeted population. The report shall be submitted no later
than six months after the end of fiscal year 2025.
new text end

Sec. 11. new text begin CENTER FOR NURSING EQUITY AND EXCELLENCE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Center for Nursing Equity and Excellence is
established within the University of Minnesota, in collaboration with Minnesota State
Colleges and Universities, to address nursing workforce needs, including issues of health
equity, recruitment, retention, and utilization of nursing workforce resources that are within
the current scope of the practice of nurses.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The center shall:
new text end

new text begin (1) develop a strategic statewide plan for nursing workforce supply based on a detailed
analysis of workforce needs by conducting a statistically valid biennial data-driven gap
analysis of the supply and demand of the health care workforce. The center shall:
new text end

new text begin (i) establish and maintain a database on nursing supply and demand in the state, including
current supply and demand; and
new text end

new text begin (ii) analyze the current and future supply and demand in the state;
new text end

new text begin (2) establish and maintain a database on nursing workforce needs, including current data
and future projections;
new text end

new text begin (3) develop recommendations to increase nurse faculty and clinical preceptors, support
nurse faculty development, and promote advanced nurse education;
new text end

new text begin (4) develop best practices in the academic preparation and continuing education needs
of qualified nurse educators, nurse faculty, and clinical preceptors;
new text end

new text begin (5) collect data on nurse faculty, employment, distribution, and retention;
new text end

new text begin (6) pilot innovative projects to support the recruitment, development, and retention of
qualified nurse faculty and clinical preceptors;
new text end

new text begin (7) encourage and coordinate the development of academic practice partnerships,
including partnerships with hospitals that provide opportunities for nursing students to
obtain clinical experience to support nurse faculty employment and advancement;
new text end

new text begin (8) develop distance learning infrastructure for advancing faculty competencies in the
pedagogy of teaching and the evidence-based use of technology, simulation, and distance
learning techniques;
new text end

new text begin (9) enhance and promote recognition, reward, and renewal activities for nurses in the
state by:
new text end

new text begin (i) promoting nursing excellence programs such as magnet recognition by the American
Nurses Credentialing Center;
new text end

new text begin (ii) proposing and creating additional reward, recognition, and renewal activities for
nurses; and
new text end

new text begin (iii) promoting media and positive image-building efforts for nursing; and
new text end

new text begin (10) routinely convene various groups representative of nurses, health care professionals,
business and industry consumers, lawmakers, and educators to:
new text end

new text begin (i) review and comment on data analysis prepared for the center;
new text end

new text begin (ii) recommend systemic changes, including strategies for implementation of
recommended changes; and
new text end

new text begin (iii) evaluate and report the results of these efforts to the legislature and other entities.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin Beginning in 2025, by no later than January 15 of each year, the center
shall submit a report to the governor and the chairs and ranking minority members of the
legislative committees having jurisdiction over higher education, health care, and workforce
development, providing details of the center's activities during the preceding calendar year
in pursuit of its goals and in the execution of its duties.
new text end

Sec. 12. new text begin SHAKOPEE AREA WORKFORCE DEVELOPMENT SCHOLARSHIPS
PILOT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Employer-sponsored applicant" means a student applicant with a local employer
scholarship equal to or greater than 25 percent of the workforce development scholarship.
new text end

new text begin (c) "Local employer" means an employer with a physical location in a county within the
service area of the foundation as listed in paragraph (d).
new text end

new text begin (d) "Shakopee Chamber Foundation" or "foundation" means a nonprofit organization
which provides workforce and charitable services to Scott County as well as the Shakopee
Mdewakanton Sioux Community.
new text end

new text begin Subd. 2. new text end

new text begin Grants and administration. new text end

new text begin (a) The commissioner of employment and
economic development must award appropriated grant funds to the foundation to administer
the Shakopee area workforce development scholarship pilot program. The foundation may
use up to ten percent of grant funds for administrative costs.
new text end

new text begin (b) The foundation and participating college or university from the Minnesota State
Colleges and Universities system must establish an application process and other guidelines
for implementing this program.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship recipient requirements. new text end

new text begin (a) To be eligible for a scholarship from
the foundation, a student must:
new text end

new text begin (1) be enrolling or enrolled at least half-time in a program at a college or university from
the Minnesota State Colleges and Universities system approved by the Dakota-Scott
Workforce Development Board under subdivision 4; and
new text end

new text begin (2) complete the Free Application for Federal Student Aid (FAFSA), if applicable to
the program for which they are enrolling or enrolled.
new text end

new text begin (b) A recipient of a scholarship awarded under this section must:
new text end

new text begin (1) adhere to any applicable participating local employer program requirements; and
new text end

new text begin (2) sign a contract agreeing to fulfill the employment obligation under paragraph (c).
new text end

new text begin (c) A scholarship recipient must fulfill a three-year full-time employment commitment
within the service area of the foundation as listed in subdivision 1, paragraph (d). The
employment may be with the local employer sponsoring the student or any qualified local
employer in a high-demand occupation as defined by the Dakota-Scott Workforce
Development Board. If a recipient of a scholarship fails to fulfill the requirements of this
paragraph, the foundation may convert the scholarship to a loan. Amounts repaid from a
loan must be used to fund scholarship awards under this section.
new text end

new text begin Subd. 4. new text end

new text begin Program eligibility. new text end

new text begin (a) The Dakota-Scott Workforce Development Board
must annually identify eligible undergraduate degree, diploma, or certificate or
industry-recognized credential programs in advanced manufacturing, health care, law
enforcement, hospitality, or other high-demand occupations. The Dakota-Scott Workforce
Development Board must consider data based on a workforce shortage for full-time
employment requiring postsecondary education that is unique to the region, as reported in
the most recent Department of Employment and Economic Development job vacancy survey
data for the economic development region. A workforce shortage area is one in which the
job vacancy rate for full-time employment in a specific occupation in the region is higher
than the state average vacancy rate for that same occupation.
new text end

new text begin (b) By December 1, 2024, and annually through December 1, 2029, the Dakota-Scott
Workforce Development Board must provide a list of eligible programs administered by
each Minnesota state college and university that are eligible for scholarships in the subsequent
year.
new text end

new text begin Subd. 5. new text end

new text begin Employer partnerships. new text end

new text begin The foundation and Minnesota State Colleges and
Universities must establish partnerships with qualified local employers to ensure that 25
percent of the Shakopee area workforce development scholarship is matched with employer
or foundation funds.
new text end

new text begin Subd. 6. new text end

new text begin Scholarship awards. new text end

new text begin (a) The foundation must coordinate available funds and
award scholarships to Minnesota state colleges and universities with programs approved
by the Dakota-Scott Workforce Development Board. Scholarships must be coordinated by
the individual colleges approved by the Dakota-Scott Workforce Development Board and
applied only after all other available tuition waivers and grant and scholarship funding
through a last-dollar-in model. Scholarships are intended to supplement all other tuition
waivers and grant and scholarship opportunities and to cover the full cost of attendance to
the eligible students.
new text end

new text begin (b) If the appropriated grant is insufficient to award scholarships to all eligible applicants,
priority must first be given to applicants that are program continuing applicants. Priority
must then be given to employer-sponsored applicants.
new text end

new text begin Subd. 7. new text end

new text begin Renewal; cap. new text end

new text begin A student who has been awarded a scholarship may apply in
subsequent academic years until the student completes a qualifying program. A student who
successfully completes an eligible program and the subsequent work period requirement is
eligible for a scholarship for a second program, but total lifetime awards must not exceed
scholarships for two programs.
new text end

new text begin Subd. 8. new text end

new text begin Report required. new text end

new text begin The foundation must submit an annual report by December
31 of each year regarding the scholarship program to the chairs and ranking minority
members of the legislative committees with jurisdiction over employment and economic
development policy. The first report is due no later than December 31, 2025. The annual
report must describe the following:
new text end

new text begin (1) the number of students receiving a scholarship at each participating college during
the previous calendar year;
new text end

new text begin (2) the number of scholarships awarded for each program and the type of each program
during the previous calendar year;
new text end

new text begin (3) the number of scholarship recipients who completed a program of study or
certification;
new text end

new text begin (4) the number of scholarship recipients who secured employment by their graduation
date and those who secured employment within three months of their graduation date;
new text end

new text begin (5) a list of the colleges that received funding, the amount of funding each institution
received, and whether all withheld funds were distributed;
new text end

new text begin (6) a list of occupations scholarship recipients are entering;
new text end

new text begin (7) the number of students who were denied a scholarship;
new text end

new text begin (8) a list of participating local employers and amounts of any applicable employer
contributions; and
new text end

new text begin (9) a list of recommendations to the legislature regarding potential program improvements.
new text end

Sec. 13. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall codify Laws 2023, chapter 53, article 21, section 6, paragraph
(d), as Minnesota Statutes, section 116J.8752, subdivision 4a. The revisor may make any
technical, grammatical, or cross-reference changes necessary to effectuate this recodification.
new text end

Sec. 14. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 116L.17, subdivision 5, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: H5205-2

116J.435 INNOVATIVE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.

Subd. 5.

Priorities.

(a) If applications for grants exceed the available appropriations, grants must be made for public infrastructure that, in the commissioner's judgment, provides the highest return in public benefits for the public costs incurred. "Public benefits" include job creation, environmental benefits to the state and region, efficient use of public transportation, efficient use of existing infrastructure, provision of affordable housing, multiuse development that constitutes community rebuilding rather than single-use development, crime reduction, blight reduction, community stabilization, and property tax base maintenance or improvement. In making this judgment, the commissioner shall give priority to eligible projects with one or more of the following characteristics:

(1) the potential of the local governmental unit to attract viable innovative businesses;

(2) proximity to public transit if located in a metropolitan county, as defined in section 473.121, subdivision 4;

(3) multijurisdictional eligible projects that take into account the need for affordable housing, transportation, and environmental impact;

(4) the eligible project is not relocating substantially the same operation from another location in the state, unless the commissioner determines the eligible project cannot be reasonably accommodated within the local governmental unit in which the business is currently located, or the business would otherwise relocate to another state or country; and

(5) the number of jobs that will be created.

(b) The factors in paragraph (a) are not listed in a rank order of priority; rather, the commissioner may weigh each factor, depending upon the facts and circumstances, as the commissioner considers appropriate.

116L.17 STATE DISLOCATED WORKER PROGRAM.

Subd. 5.

Cost limitations.

(a) Funds allocated to a grantee are subject to the following cost limitations:

(1) no more than ten percent may be allocated for administration;

(2) at least 50 percent must be allocated for training assistance as provided in subdivision 4, clause (4); and

(3) no more than 15 percent may be allocated for support services as provided in subdivision 4, clause (2).

(b) A waiver of the training assistance minimum in clause (4) may be sought, but no waiver shall allow less than 30 percent of the grant to be spent on training assistance. A waiver of the support services maximum in clause (2) may be sought, but no waiver shall allow more than 20 percent of the grant to be spent on support services. A waiver may be granted below the minimum and above the maximum otherwise allowed by this paragraph if funds other than state funds appropriated for the dislocated worker program are used to fund training assistance.