1.1 	A bill for an act
1.2 	relating to state government; appropriating money for the Department of 
1.3 	Employment and Economic Development; making policy and technical changes; 
1.4 	requiring reports;amending Minnesota Statutes 2020, sections 116J.552, 
1.5 	subdivision 6; 116J.8747; 116J.8770; 116J.993, subdivision 3; 116L.04, subdivision 
1.6 	1a; 116L.17, subdivision 1; 116L.98, subdivisions 2, 3; Minnesota Statutes 2021 
1.7 	Supplement, sections 116J.8749; 116J.9924, subdivision 4; Laws 2021, First 
1.8 	Special Session chapter 10, article 1, section 2, subdivision 2; Laws 2021, First 
1.9 	Special Session chapter 14, article 11, section 42; proposing coding for new law 
1.10 	in Minnesota Statutes, chapter 116J; repealing Minnesota Statutes 2021 Supplement, 
1.11 	section 116J.9924, subdivision 6.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	ARTICLE 1
1.14 	APPROPRIATIONS

1.15	Section 1. APPROPRIATIONS.
 	
1.16 	The sums shown in the columns under "Appropriations" are added to the appropriations 
1.17 	in Laws 2021, First Special Session chapter 10, or other law to the specified agencies. The 
1.18 	appropriations are from the general fund, or another named fund, and are available for the 
1.19 	fiscal years indicated for each purpose. The figures "2022" and "2023" used in this article 
1.20 	mean that the appropriations listed under them are available for the fiscal year ending June 
1.21 	30, 2022, or June 30, 2023, respectively. Appropriations for the fiscal year ending June 30, 
1.22 	2022, are effective the day following final enactment.

1.23				APPROPRIATIONS
	
1.24				Available for the Year
	
1.25				Ending June 30
	
1.26					2022
		2023

2.1
2.2	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.3	Subdivision 1.Total Appropriation
 	$
	-0-
	$
	186,750,000

2.4	Appropriations by Fund
	
2.5		2020
	2021
	
2.6	General Fund
	-0-
	161,000,000
	
2.7
2.8	Workforce 
Development
	-0-
	25,750,000
	
2.9 	The amounts that may be spent for each 
2.10 	purpose are specified in the following 
2.11 	subdivisions.

2.12	Subd. 2.Business and Community Development
 		-0-
		134,300,000
	
2.13 	(a) $20,000,000 in fiscal year 2023 is for the 
2.14 	main street economic revitalization program 
2.15 	under Minnesota Statutes, section 116J.8749. 
2.16 	This is a onetime appropriation and is 
2.17 	available until June 30, 2025.
2.18 	(b) $45,000,000 in fiscal year 2023 is for 
2.19 	deposit in the spark small business loan 
2.20 	program account under Minnesota Statutes, 
2.21 	section 116J.9926. Of this amount, 
2.22 	$10,000,000 is for loans to community 
2.23 	businesses as defined in Minnesota Statutes, 
2.24 	section 116J.8751. Beginning in fiscal year 
2.25 	2024, the base amount is $3,000,000.
2.26 	(c) $20,000,000 in fiscal year 2023 is for 
2.27 	deposit in the emerging developer fund 
2.28 	account in the special revenue fund. Of this 
2.29 	amount, up to five percent is for the 
2.30 	administration and monitoring of the emerging 
2.31 	developer fund program under Minnesota 
2.32 	Statutes, section 116J.9926. Beginning in 
2.33 	fiscal year 2024, the base amount is 
2.34 	$1,000,000.
3.1 	(d) $7,500,000 in fiscal year 2023 is for the 
3.2 	Canadian border counties economic relief 
3.3 	program. This is a onetime appropriation.
3.4 	(e) $35,000,000 in fiscal year 2023 is for the 
3.5 	small business recovery grant program. This 
3.6 	is a onetime appropriation and is available 
3.7 	until June 30, 2024.
3.8 	(f) $800,000 in fiscal year 2023 is for a grant 
3.9 	to Enterprise Minnesota, Inc., for the small 
3.10 	business growth acceleration program under 
3.11 	Minnesota Statutes, section 116O.115. This 
3.12 	is a onetime appropriation.
3.13 	(g) $1,000,000 in fiscal year 2023 is for Join 
3.14 	Us Minnesota campaign to market the state of 
3.15 	Minnesota to businesses and potential workers. 
3.16 	This appropriation is available until June 30, 
3.17 	2024. Of this amount, up to five percent is for 
3.18 	administration and monitoring of the program. 
3.19 	Beginning in fiscal year 2024, the base amount 
3.20 	is $500,000.
3.21 	(h) $2,000,000 in fiscal year 2023 is for a 
3.22 	grant to the Center for Economic Inclusion for 
3.23 	strategic, data-informed investments in job 
3.24 	creation strategies that respond to the needs 
3.25 	of underserved populations statewide. This 
3.26 	may include pay-for-performance contracts 
3.27 	with nonprofit organizations to provide 
3.28 	outreach, training, and support services for 
3.29 	dislocated and chronically underemployed 
3.30 	people, as well as forgivable loans, 
3.31 	revenue-based financing, and equity 
3.32 	investments for entrepreneurs with barriers to 
3.33 	growth. Of this amount, up to ten percent may 
3.34 	be used for the center's technical assistance 
4.1 	and administrative costs. This is a onetime 
4.2 	appropriation.
4.3 	(i)(1) $1,000,000 in fiscal year 2023 is for a 
4.4 	grant to the Coalition of Asian American 
4.5 	Leaders to address employment and economic 
4.6 	disparities for Asian Minnesotan communities 
4.7 	in response to the COVID-19 pandemic and 
4.8 	incidents of bias by conducting and 
4.9 	disseminating research and by providing 
4.10 	grants, outreach, and technical assistance to 
4.11 	Asian Minnesotan individuals, small 
4.12 	businesses, and nonprofit organizations to 
4.13 	navigate state programs and grants related to 
4.14 	COVID-19 pandemic health and economic 
4.15 	recovery challenges. This is a onetime 
4.16 	appropriation and is available until December 
4.17 	31, 2024.
4.18 	(2) The Coalition of Asian American Leaders 
4.19 	must issue a report on the outcomes of the 
4.20 	grant to the commissioner of employment and 
4.21 	economic development by December 15, 2024.
4.22 	(j) $2,000,000 in fiscal year 2023 is for a grant 
4.23 	to Women's Foundation of Minnesota to invest 
4.24 	in economic structures that educate, mobilize, 
4.25 	and equip Black women with the necessary 
4.26 	tools to build, retain, and strengthen the 
4.27 	capacity to build generational wealth. This is 
4.28 	a onetime appropriation.

4.29	Subd. 3.Employment and Training Programs
 		-0-
		52,450,000

4.30	Appropriations by Fund
	
4.31	General Fund
	-0-
	26,700,000
	
4.32
4.33	Workforce 
Development Fund
	-0-
	25,750,000
	
4.34 	(a) $1,000,000 in fiscal year 2023 is for grants 
4.35 	to organizations providing support services to 
5.1 	new Americans in order to facilitate successful 
5.2 	community integration and entry into the 
5.3 	workforce. Services may include case 
5.4 	management, job training and employment 
5.5 	services, education programs, and legal 
5.6 	services. Of this amount:
5.7 	(1) $325,000 is for a grant to the International 
5.8 	Institute of Minnesota;
5.9 	(2) $325,000 is for a grant to the Minnesota 
5.10 	Council of Churches;
5.11 	(3) $223,000 is for a grant to Arrive 
5.12 	Ministries; and
5.13 	(4) $127,000 is for a grant to Catholic 
5.14 	Charities of the Diocese of Winona, Inc.
5.15 	This is a onetime appropriation.
5.16 	(b) $750,000 in fiscal year 2023 is from the 
5.17 	workforce development fund for a grant to the 
5.18 	Minneapolis Park and Recreation Board's Teen 
5.19 	Teamworks youth employment and training 
5.20 	programs. This is a onetime appropriation and 
5.21 	is available until spent.
5.22 	(c)(1) $20,000,000 in fiscal year 2023 is from 
5.23 	the workforce development fund for grants to 
5.24 	Minnesota's 16 local workforce development 
5.25 	boards for strategies identified in local 
5.26 	Workforce Innovation and Opportunity Act 
5.27 	plans to address Minnesota's current workforce 
5.28 	shortages by supporting training for 
5.29 	unemployed and underemployed Minnesotans 
5.30 	and the earning of industry-recognized 
5.31 	credentials to equip workers with in-demand 
5.32 	skills. Allowable uses of money include but 
5.33 	are not limited to helping job seekers prepare 
5.34 	for and find jobs, providing services to 
6.1 	employers, supporting CareerForce locations, 
6.2 	and conducting marketing and outreach for 
6.3 	CareerForce services. Grant money must not 
6.4 	be used for administrative costs. Grants shall 
6.5 	be distributed consistent with the distribution 
6.6 	and utilization of money under federal 
6.7 	legislation regarding job training and related 
6.8 	services. This is a onetime appropriation and 
6.9 	is available until expended.
6.10 	(2) By January 15 of each year that grant 
6.11 	money is used, beginning in 2023, all grant 
6.12 	recipients shall submit a report to the 
6.13 	governor's Workforce Development Board 
6.14 	that details the use of grant money, including 
6.15 	the number of businesses, job seekers, and 
6.16 	other stakeholders served.
6.17 	(d) $5,000,000 in fiscal year 2023 is from the 
6.18 	workforce development fund for a youth 
6.19 	technology competitive training grant program 
6.20 	to prepare people who are Black, Indigenous, 
6.21 	people of color, or women to meet the growing 
6.22 	labor needs in Minnesota's technology 
6.23 	industry. This is a onetime appropriation and 
6.24 	money is available until June 30, 2024. Of this 
6.25 	amount, up to five percent is for administration 
6.26 	and monitoring of the program. Grant money 
6.27 	must be used to:
6.28 	(1) provide career education, wraparound 
6.29 	support services, and job skills training for 
6.30 	high school aged youth in the technology 
6.31 	industry;
6.32 	(2) increase the number of summer internship 
6.33 	opportunities in the technology industry;
7.1 	(3) support outreach activities to businesses 
7.2 	and create pathways for employment and 
7.3 	internships for youth in the technology 
7.4 	industry; and
7.5 	(4) increase the number of young adults 
7.6 	employed in the technology industry and 
7.7 	ensure that they reflect Minnesota's diverse 
7.8 	workforce.
7.9 	Programs and services supported by grant 
7.10 	money must give priority to individuals and 
7.11 	groups that are economically disadvantaged 
7.12 	or historically underrepresented in the 
7.13 	technology industry, including but not limited 
7.14 	to women, veterans, and members of minority 
7.15 	and immigrant groups.
7.16 	(e) $470,000 in fiscal year 2023 is for 
7.17 	activities associated with the Office for New 
7.18 	Americans in Minnesota Statutes, section 
7.19 	116J.4231. Beginning in fiscal year 2024, the 
7.20 	base amount is $500,000.
7.21 	(f) $25,230,000 in fiscal year 2023 is for the 
7.22 	targeted community capital project grant 
7.23 	program under Minnesota Statutes, section 
7.24 	116J.9924. This is a onetime appropriation.

7.25 	Sec. 3. Laws 2021, First Special Session chapter 10, article 1, section 2, subdivision 2, is 
7.26 	amended to read:

7.287.27
	Subd. 2.Business and Community Development
 		208,015,000
		44,741,000
58,741,000

7.29	Appropriations by Fund
	
7.317.30
	General
	205,215,000
	41,941,000
55,941,000
	
7.32	Remediation
	700,000
	700,000
	
7.33
7.34	Workforce 
Development
	2,100,000
	2,100,000
	
8.1 	(a) $1,787,000 each year is for the greater 
8.2 	Minnesota business development public 
8.3 	infrastructure grant program under Minnesota 
8.4 	Statutes, section 116J.431. This appropriation 
8.5 	is available until June 30, 2025.
8.6 	(b) $8,425,000 in the first year and $1,425,000
8.7 	$6,425,000 in the second year are for the 
8.8 	small business partnership grant program 
8.9 	formerly known as the business development 
8.10 	competitive grant program. Of this amount, 
8.11 	up to five percent is for administration and 
8.12 	monitoring of the business development 
8.13 	competitive grant program and $7,000,000 in 
8.14 	the first year is and $5,000,000 in the second 
8.15 	year are for technical assistance to small 
8.16 	businesses. Funding for technical assistance 
8.17 	to small businesses in the second year shall 
8.18 	be divided proportionately between program 
8.19 	grantees from the first year. Except for awards 
8.20 	for technical assistance for small businesses, 
8.21 	all grant awards shall be for two consecutive 
8.22 	years. Grants and shall be awarded in the first 
8.23 	year. The small business partnership grant 
8.24 	program shall also provide business 
8.25 	development assistance and services to 
8.26 	commercial cooperatives, employee-owned 
8.27 	businesses, and commercial land trusts. 
8.28 	Beginning in fiscal year 2024, the base amount 
8.29 	is $4,925,000 of which $1,500,000 is for 
8.30 	technical assistance to small businesses 
8.31 	participating in the spark small business loan 
8.32 	program under Minnesota Statutes, section 
8.33 	116J.8751.
8.34 	(c) $1,772,000 each year is for contaminated 
8.35 	site cleanup and development grants under 
9.1 	Minnesota Statutes, sections 116J.551 to 
9.2 	116J.558. This appropriation is available until 
9.3 	expended.
9.4 	(d) $700,000 each year is from the remediation 
9.5 	fund for contaminated site cleanup and 
9.6 	development grants under Minnesota Statutes, 
9.7 	sections 116J.551 to 116J.558. This 
9.8 	appropriation is available until expended.
9.9 	(e) $139,000 each year is for the Center for 
9.10 	Rural Policy and Development.
9.11 	(f) $25,000 each year is for the administration 
9.12 	of state aid for the Destination Medical Center 
9.13 	under Minnesota Statutes, sections 469.40 to 
9.14 	469.47.
9.15 	(g) $875,000 each year is for the host 
9.16 	community economic development program 
9.17 	established in Minnesota Statutes, section 
9.18 	116J.548.
9.19 	(h)(1) $2,500,000 each year is the first year 
9.20 	and $6,500,000 the second year are for grants 
9.21 	to local communities to increase the number 
9.22 	of quality child care providers to support 
9.23 	economic development. This appropriation is 
9.24 	available through June 30, 2023. Fifty percent 
9.25 	of grant funds must go to communities located 
9.26 	outside the seven-county metropolitan area as 
9.27 	defined in Minnesota Statutes, section 
9.28 	473.121, subdivision 2. In fiscal year 2024 
9.29 	and beyond, the base amount is $1,500,000.
9.30 	(2) Grant recipients must obtain a 50 percent 
9.31 	nonstate match to grant funds in either cash 
9.32 	or in-kind contribution, unless the 
9.33 	commissioner waives the requirement. Grant 
9.34 	funds available under this subdivision must 
10.1 	be used to implement projects to reduce the 
10.2 	child care shortage in the state, including but 
10.3 	not limited to funding for child care business 
10.4 	start-ups or expansion, training, facility 
10.5 	modifications, direct subsidies or incentives 
10.6 	to retain employees, or improvements required 
10.7 	for licensing, and assistance with licensing 
10.8 	and other regulatory requirements. In awarding 
10.9 	grants, the commissioner must give priority 
10.10 	to communities that have demonstrated a 
10.11 	shortage of child care providers.
10.12 	(3) Within one year of receiving grant funds, 
10.13 	grant recipients must report to the 
10.14 	commissioner on the outcomes of the grant 
10.15 	program, including but not limited to the 
10.16 	number of new providers, the number of 
10.17 	additional child care provider jobs created, the 
10.18 	number of additional child care slots, and the 
10.19 	amount of cash and in-kind local funds 
10.20 	invested. Within one month of all grant 
10.21 	recipients reporting on program outcomes, the 
10.22 	commissioner must report the grant recipients' 
10.23 	outcomes to the chairs and ranking members 
10.24 	of the legislative committees with jurisdiction 
10.25 	over early learning and child care and 
10.26 	economic development.
10.27 	(i) $1,500,000 each year is for a grant to the 
10.28 	Minnesota Initiative Foundations. This 
10.29 	appropriation is available until June 30, 2025. 
10.30 	In fiscal year 2024 and beyond, the base 
10.31 	amount is $1,000,000. The Minnesota 
10.32 	Initiative Foundations must use grant funds 
10.33 	under this section to:
10.34 	(1) facilitate planning processes for rural 
10.35 	communities resulting in a community solution 
11.1 	action plan that guides decision making to 
11.2 	sustain and increase the supply of quality child 
11.3 	care in the region to support economic 
11.4 	development;
11.5 	(2) engage the private sector to invest local 
11.6 	resources to support the community solution 
11.7 	action plan and ensure quality child care is a 
11.8 	vital component of additional regional 
11.9 	economic development planning processes;
11.10 	(3) provide locally based training and technical 
11.11 	assistance to rural child care business owners 
11.12 	individually or through a learning cohort. 
11.13 	Access to financial and business development 
11.14 	assistance must prepare child care businesses 
11.15 	for quality engagement and improvement by 
11.16 	stabilizing operations, leveraging funding from 
11.17 	other sources, and fostering business acumen 
11.18 	that allows child care businesses to plan for 
11.19 	and afford the cost of providing quality child 
11.20 	care; and
11.21 	(4) recruit child care programs to participate 
11.22 	in quality rating and improvement 
11.23 	measurement programs. The Minnesota 
11.24 	Initiative Foundations must work with local 
11.25 	partners to provide low-cost training, 
11.26 	professional development opportunities, and 
11.27 	continuing education curricula. The Minnesota 
11.28 	Initiative Foundations must fund, through local 
11.29 	partners, an enhanced level of coaching to 
11.30 	rural child care providers to obtain a quality 
11.31 	rating through measurement programs.
11.32 	The Minnesota Initiative Foundations are 
11.33 	authorized to subgrant their allocation to 
11.34 	partner organizations who are assisting in their 
11.35 	child care work.
12.1 	(j) $8,000,000 each year is for the Minnesota 
12.2 	job creation fund under Minnesota Statutes, 
12.3 	section 116J.8748. Of this amount, the 
12.4 	commissioner of employment and economic 
12.5 	development may use up to three percent for 
12.6 	administrative expenses. This appropriation 
12.7 	is available until expended.
12.8 	(k) $10,029,000 the first year and $10,028,000 
12.9 	the second year are for the Minnesota 
12.10 	investment fund under Minnesota Statutes, 
12.11 	section 116J.8731. Of this amount, the 
12.12 	commissioner of employment and economic 
12.13 	development may use up to three percent for 
12.14 	administration and monitoring of the program. 
12.15 	In fiscal year 2024 and beyond, the base 
12.16 	amount is $12,370,000. This appropriation is 
12.17 	available until expended. Notwithstanding 
12.18 	Minnesota Statutes, section 116J.8731, money 
12.19 	appropriated to the commissioner for the 
12.20 	Minnesota investment fund may be used for 
12.21 	the redevelopment program under Minnesota 
12.22 	Statutes, sections 116J.575 and 116J.5761, at 
12.23 	the discretion of the commissioner. Grants 
12.24 	under this paragraph are not subject to the 
12.25 	grant amount limitation under Minnesota 
12.26 	Statutes, section 116J.8731.
12.27 	(l) $0 each $5,000,000 in the second year is 
12.28 	for the redevelopment program under 
12.29 	Minnesota Statutes, sections 116J.575
12.30 	116J.571 and 116J.5761. This appropriation 
12.31 	is available until spent. In fiscal year 2024 and 
12.32 	beyond, the base amount is $2,246,000
12.33 	$3,496,000.
12.34 	(2) For funding in fiscal year 2023, the 
12.35 	commissioner shall prioritize applications 
13.1 	from development authorities located in 
13.2 	low-income areas, defined as:
13.3 	(i) a census tract that has a poverty rate of at 
13.4 	least 20 percent, as reported by the United 
13.5 	States Bureau of the Census in the most recent 
13.6 	American Community Survey;
13.7 	(ii) a qualified census tract, as defined under 
13.8 	United States Code, title 26, section 42; or
13.9 	(iii) a census tract, city, township, or county 
13.10 	in which ten percent of the population have 
13.11 	an annual income of 200 percent or less of the 
13.12 	federal poverty level.
13.13 	(3) Notwithstanding any other law to the 
13.14 	contrary, no local matching funds are required 
13.15 	from development authorities located in 
13.16 	low-income areas in fiscal year 2023 and state 
13.17 	funds may be used for 100 percent of the cost 
13.18 	of the projects.
13.19 	(m) $1,000,000 each year is for the Minnesota 
13.20 	emerging entrepreneur loan program under 
13.21 	Minnesota Statutes, section 116M.18. Funds 
13.22 	available under this paragraph are for transfer 
13.23 	into the emerging entrepreneur program 
13.24 	special revenue fund account created under 
13.25 	Minnesota Statutes, chapter 116M, and are 
13.26 	available until expended. Of this amount, up 
13.27 	to four percent is for administration and 
13.28 	monitoring of the program.
13.29 	(n) $325,000 each year is for the Minnesota 
13.30 	Film and TV Board. The appropriation in each 
13.31 	year is available only upon receipt by the 
13.32 	board of $1 in matching contributions of 
13.33 	money or in-kind contributions from nonstate 
13.34 	sources for every $3 provided by this 
14.1 	appropriation, except that each year up to 
14.2 	$50,000 is available on July 1 even if the 
14.3 	required matching contribution has not been 
14.4 	received by that date.
14.5 	(o) $12,000 each year is for a grant to the 
14.6 	Upper Minnesota Film Office.
14.7 	(p) $500,000 each year is for a grant to the 
14.8 	Minnesota Film and TV Board for the film 
14.9 	production jobs program under Minnesota 
14.10 	Statutes, section 116U.26. This appropriation 
14.11 	is available until June 30, 2025.
14.12 	(q) $4,195,000 each year is for the Minnesota 
14.13 	job skills partnership program under 
14.14 	Minnesota Statutes, sections 116L.01 to 
14.15 	116L.17. If the appropriation for either year 
14.16 	is insufficient, the appropriation for the other 
14.17 	year is available. This appropriation is 
14.18 	available until expended.
14.19 	(r) $1,350,000 each year from the workforce 
14.20 	development fund is for jobs training grants 
14.21 	under Minnesota Statutes, section 116L.41.
14.22 	(s) $2,500,000 each year is for Launch 
14.23 	Minnesota. This appropriation is available 
14.24 	until June 30, 2025. The base in fiscal year 
14.25 	2026 is $0. Of this amount:
14.26 	(1) $1,500,000 each year is for innovation 
14.27 	grants to eligible Minnesota entrepreneurs or 
14.28 	start-up businesses to assist with their 
14.29 	operating needs;
14.30 	(2) $500,000 each year is for administration 
14.31 	of Launch Minnesota; and
14.32 	(3) $500,000 each year is for grantee activities 
14.33 	at Launch Minnesota.
15.1 	(t) $1,148,000 the first year is for a grant to 
15.2 	the Northeast Entrepreneur Fund, a small 
15.3 	business administration microlender and 
15.4 	community development financial institution 
15.5 	operating in northern Minnesota. Grant funds 
15.6 	must be used as capital for accessing 
15.7 	additional federal lending for small businesses 
15.8 	impacted by COVID-19 and must be returned 
15.9 	to the commissioner for deposit in the general 
15.10 	fund if the Northeast Entrepreneur Fund fails 
15.11 	to secure such federal funds before January 1, 
15.12 	2022.
15.13 	(u) $80,000,000 the first year is for the Main 
15.14 	Street Economic Revitalization Loan Program. 
15.15 	Of this amount, up to $300,000 is for the 
15.16 	commissioner's administration and monitoring 
15.17 	of the program. This appropriation is available 
15.18 	until June 30, 2025.
15.19 	(v) $70,000,000 the first year is for the Main 
15.20 	Street COVID-19 Relief Grant Program. Of 
15.21 	this amount, up to:
15.22 	(1) $34,950,000 is for grants to the Minnesota 
15.23 	Initiative Foundations to serve businesses 
15.24 	outside of the metropolitan area as defined in 
15.25 	Minnesota Statutes, section 473.121, 
15.26 	subdivision 2;
15.27 	(2) $34,950,000 is for grants to partner 
15.28 	organizations to serve businesses inside the 
15.29 	metropolitan area as defined in Minnesota 
15.30 	Statutes, section 473.121, subdivision 2; and
15.31 	(3) $100,000 is for the commissioner's 
15.32 	administration and monitoring of the program.
15.33 	(w) $250,000 each year is for the publication, 
15.34 	dissemination, and use of labor market 
16.1 	information under Minnesota Statutes, section 
16.2 	116J.401.
16.3 	(x) $500,000 each year is for the airport 
16.4 	infrastructure renewal (AIR) grant program 
16.5 	under Minnesota Statutes, section 116J.439. 
16.6 	In awarding grants with this appropriation, the 
16.7 	commissioner must prioritize eligible 
16.8 	applicants that did not receive a grant pursuant 
16.9 	to the appropriation in Laws 2019, First 
16.10 	Special Session chapter 7, article 1, section 2, 
16.11 	subdivision 2, paragraph (q).
16.12 	(y) $750,000 each year is from the workforce 
16.13 	development fund for grants to the 
16.14 	Neighborhood Development Center for small 
16.15 	business programs, including:
16.16 	(1) training, lending, and business services;
16.17 	(2) model outreach and training in greater 
16.18 	Minnesota; and
16.19 	(3) development of new business incubators.
16.20 	This is a onetime appropriation.
16.21 	(z) $5,000,000 in the first year is for a grant 
16.22 	to Lake of the Woods County for the 
16.23 	forgivable loan program for remote 
16.24 	recreational businesses. This appropriation is 
16.25 	available until April 1, 2022.

16.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.1 	Sec. 4. Laws 2021, First Special Session chapter 14, article 11, section 42, is amended to 
17.2 	read:
17.3 	Sec. 42. APPROPRIATION; MEAT PROCESSING BUSINESSES IN 
17.4 	REDEVELOPMENT AREA.
 17.5 	Of an appropriation in fiscal year 2022 for the targeted community capital project grant 
17.6 	program under Minnesota Statutes, section 116J.9924, the commissioner of employment 
17.7 	and economic development must grant $6,000,000 for one or more grants to any business 
17.8 	engaged in the meat processing industry and currently conducting operations in a building 
17.9 	or buildings constructed on or before January 1, 1947, and located in a city of the second 
17.10 	class that was designated as a redevelopment area by the United States Department of 
17.11 	Commerce under the Public Works and Economic Development Act of 1965, Public Law 
17.12 	89-136, title IV, section 401(a)(4). This appropriation includes: site acquisition costs; 
17.13 	relocation costs; predesign; design; sewer, water, and stormwater infrastructure; site 
17.14 	preparation; engineering; and the cost of improvements to real property locally zoned to 
17.15 	allow a meat processing land use that are incurred by any qualified business under this 
17.16 	section. A grantee under this section must work in consultation with a local government 
17.17 	unit with jurisdiction over the area where the property is located on activities funded by the 
17.18 	grant. This is a onetime appropriation. A grant issued under this section is not subject to 
17.19 	the grant requirements under Minnesota Statutes, section 116J.9924. to the city of South 
17.20 	St. Paul for economic development, redevelopment, and job creation and retention programs 
17.21 	and projects. This grant is not subject to the requirements under Minnesota Statutes, chapter 
17.22 	116J.

17.23 	Sec. 5. CANCELLATION AND APPROPRIATION.
 17.24 	(a) All unspent money, estimated to be $889,000, appropriated under Laws 2015, First 
17.25 	Special Session chapter 1, article 1, section 2, subdivision 2, paragraphs (k) and (l), is 
17.26 	canceled to the general fund.
17.27 	(b) All money canceled under paragraph (a) is appropriated in fiscal year 2023 to the 
17.28 	commissioner of employment and economic development for the targeted community capital 
17.29 	project grant program under Minnesota Statutes, section 116J.9924. This is a onetime 
17.30 	appropriation.

17.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.1 	ARTICLE 2
18.2 	ECONOMIC DEVELOPMENT POLICY

18.3 	Section 1. [116J.015] EXPIRATION OF REPORT MANDATES.
18.4 	(a) If the submission of a report by the commissioner of employment and economic 
18.5 	development to the legislature is mandated by law and the enabling legislation does not 
18.6 	include a date for the submission of a final report, the mandate to submit the report expires 
18.7 	according to this section.
18.8 	(b) If the mandate requires the submission of an annual report and the mandate was 
18.9 	enacted before January 1, 2021, the mandate expires January 1, 2023. If the mandate requires 
18.10 	the submission of a biennial or less frequent report and the mandate was enacted before 
18.11 	January 1, 2021, the mandate expires January 1, 2024.
18.12 	(c) Any reporting mandate enacted on or after January 1, 2021, expires three years after 
18.13 	the date of enactment if the mandate requires the submission of an annual report and expires 
18.14 	five years after the date of enactment if the mandate requires the submission of a biennial 
18.15 	or less frequent report unless the enacting legislation provides for a different expiration 
18.16 	date.
18.17 	(d) The commissioner shall submit to the chairs and ranking minority members of the 
18.18 	legislative committees with jurisdiction over employment and economic development by 
18.19 	February 15 of each year, beginning February 15, 2022, a list of all reports set to expire 
18.20 	during the following calendar year according to this section.

18.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.22 	Sec. 2. [116J.4231] OFFICE OF NEW AMERICANS.
18.23 		Subdivision 1.Office established; purpose. (a) The Office of New Americans is 
18.24 	established within the Department of Employment and Economic Development. The governor 
18.25 	must appoint an executive director who serves in the unclassified service. The executive 
18.26 	director must hire a program manager and an office assistant, as well as any staff necessary 
18.27 	to carry out the office's duties under subdivision 2.
18.28 	(b) The purpose of the office is to serve immigrants and refugees in Minnesota by:
18.29 	(1) addressing challenges that face immigrants and refugees in Minnesota, and creating 
18.30 	access in economic development and workforce programs and services;
18.31 	(2) providing interstate agency coordination, policy reviews, and guidance that assist in 
18.32 	creating access to immigrants and refugees.
19.1 		Subd. 2.Duties. (a) The office has the duty to:
19.2 	(1) create and implement a statewide strategy to support immigrant and refugee integration 
19.3 	into Minnesota communities;
19.4 	(2) address the state's workforce needs by connecting employers and job seekers within 
19.5 	the immigrant and refugee community;
19.6 	(3) identify strategies to reduce employment barriers for immigrants and refugees;
19.7 	(4) ensure equitable opportunities and access to services within state government for 
19.8 	immigrants and refugees;
19.9 	(5) work with state agencies and community and foundation partners to undertake studies 
19.10 	and research and analyze economic and demographic trends to better understand and serve 
19.11 	the state's immigrant and refugee communities;
19.12 	(6) coordinate and establish best practices for language access initiatives to all state 
19.13 	agencies;
19.14 	(7) convene stakeholders and make policy recommendations to the governor on issues 
19.15 	impacting immigrants and refugees;
19.16 	(8) promulgate rules necessary to implement and effectuate this section;
19.17 	(9) provide an annual report, as required by subdivision 3;
19.18 	(10) perform any other activities consistent with the office's purpose.
19.19 		Subd. 3.Reporting. (a) Beginning January 15, 2024, and each year thereafter, the Office 
19.20 	of New Americans shall report to the legislative committees with jurisdiction over the 
19.21 	office's activities during the previous year.
19.22 	(b) The report shall contain, at a minimum:
19.23 	(1) a summary of the office's activities;
19.24 	(2) suggested policies, incentives, and legislation designed to accelerate the achievement 
19.25 	of the duties under subdivision 2;
19.26 	(3) any proposed legislative and policy initiatives;
19.27 	(4) the amount and types of grants awarded under subdivision 6; and
19.28 	(5) any other information deemed necessary and requested by the legislative committees 
19.29 	with jurisdiction over the office.
20.1 	(c) The report may be submitted electronically and is subject to section 3.195, subdivision 
20.2 	1.
20.3 		Subd. 4.Interdepartmental Coordinating Council on Immigrant and Refugee 
20.4 	Affairs. (a) An interdepartmental Coordinating Council on Immigrant and Refugee Affairs 
20.5 	is established to advise the Office of New Americans.
20.6 	(b) The purpose of the council is to identify and establish ways in which state departments 
20.7 	and agencies can work together to deliver state programs and services effectively and 
20.8 	efficiently to Minnesota's immigrant and refugee populations. The council shall implement 
20.9 	policies, procedures, and programs requested by the governor through the state departments 
20.10 	and offices.
20.11 	(c) The council shall be chaired by the executive director of the Office of New Americans 
20.12 	and shall be comprised of the commissioners, department directors, or designees, from the 
20.13 	following state departments and offices:
20.14 	(1) the governor's office;
20.15 	(2) the Department of Administration;
20.16 	(3) the Department of Employment and Economic Development;
20.17 	(4) the Department of Human Services;
20.18 	(5) the Department of Human Services Resettlement Program Office;
20.19 	(6) the Department of Labor and Industry;
20.20 	(7) the Department of Health;
20.21 	(8) the Department of Education;
20.22 	(9) the Office of Higher Education;
20.23 	(10) the Department of Public Safety;
20.24 	(11) the Department of Corrections; and
20.25 	(12) the Office of New Americans.
20.26 	(d) Each department or office serving as a member of the council shall designate one 
20.27 	staff member as an immigrant and refugee services liaison. The liaisons' responsibilities 
20.28 	shall include:
20.29 	(1) preparation and dissemination of information and services available to immigrants 
20.30 	and refugees;
21.1 	(2) interfacing with the Office of New Americans on issues that impact immigrants and 
21.2 	refugees and their communities; and
21.3 	(3) where applicable, serving as the point of contact for immigrants and refugees accessing 
21.4 	resources both within the department and with boards charged with oversight of a profession.
21.5 		Subd. 5.No right of action. Nothing in this section shall be construed to create any 
21.6 	right or benefit, substantive or procedural, enforceable at law or in equity by any party 
21.7 	against the state; its departments, agencies, or entities; its officers, employees, or agents; 
21.8 	or any other person.
21.9 		Subd. 6.Grants. Within the limits of available appropriations, the office may apply for 
21.10 	grants for interested state agencies, community partners, and stakeholders under this section 
21.11 	to carry out the duties under subdivision 2.

21.12 	Sec. 3. Minnesota Statutes 2020, section 116J.552, subdivision 6, is amended to read:
21.13 		Subd. 6.Municipality. "Municipality" means the statutory or home rule charter city, 
21.14 	town, federally recognized Tribe, or, in the case of unorganized territory, the county in 
21.15 	which the site is located.

21.16 	Sec. 4. Minnesota Statutes 2020, section 116J.8747, is amended to read:
21.17 	116J.8747 JOB TRAINING PROGRAM GRANT.
21.18 		Subdivision 1.Grant allowed. The commissioner may provide a grant to a qualified 
21.19 	job training program from money appropriated for the purposes of this section as follows:
21.20 	(1) an $11,000 placement grant paid to a job training program upon placement in 
21.21 	employment of a qualified graduate of the program; and
21.22 	(2) an $11,000 retention grant paid to a job training program upon retention in 
21.23 	employment of a qualified graduate of the program for at least one year.
21.24 	(1) up to ten percent of the appropriation may be allocated for administrative expenses 
21.25 	by the program;
21.26 	(2) up to 20 percent of the appropriation may be allocated for direct service expenses 
21.27 	by the program;
21.28 	(3) a placement grant paid to a job training program upon placement in employment of 
21.29 	a qualified graduate of the job training program as follows:
22.1 	(i) $2,500 for placement in part-time employment (20 hours a week or more) of at least 
22.2 	150 percent of the state minimum wage hourly;
22.3 	(ii) $2,500 for placement in full-time employment (32 hours a week or more) at the state 
22.4 	minimum wage but below 150 percent of the state minimum wage hourly; and
22.5 	(iii) $5,000 for placement in full-time employment (32 hours a week or more) of at least 
22.6 	150 percent of the state minimum wage hourly; and
22.7 	(4) a retention grant paid to a job training program upon retention in employment of a 
22.8 	qualified graduate of the job training program for at least one year as follows:
22.9 	(i) $5,000 for one year of retained part-time employment (20 hours a week or more) of 
22.10 	at least 150 percent of the state minimum wage;
22.11 	(ii) $5,000 for one year of retained full-time employment (32 hours a week or more) at 
22.12 	the state minimum wage but below 150 percent of the state minimum wage; and
22.13 	(iii) $10,000 for one year of retained full-time employment (32 hours a week or more) 
22.14 	of at least 150 percent of the state minimum wage hourly.
22.15 		Subd. 2.Qualified job training program. To qualify for grants under this section, a 
22.16 	job training program must satisfy the following requirements:
22.17 	(1) the program must be operated by a nonprofit corporation that qualifies under section 
22.18 	501(c)(3) of the Internal Revenue Code;
22.19 	(2) the program may spend up to $5,500 in total training per participant;
22.20 	(3) the program must provide education and training in:
22.21 	(i) basic skills, such as reading, writing, financial literacy, digital literacy, mathematics, 
22.22 	and communications;
22.23 	(ii) long-term plans for success including participant coaching for two years after 
22.24 	placement;
22.25 	(iii) soft skills, including skills critical to success on the job; and
22.26 	(iv) access to internships, technology training, personal and emotional intelligence skill 
22.27 	development, and other support services;
22.28 	(4) the program may provide income supplements not to exceed $2,000 per participant
22.29 	support services, when needed, to participants for housing, counseling, tuition, and other 
22.30 	basic needs;
23.1 	(5) individuals served by the program must be 18 years of age or older as of the date of 
23.2 	enrollment, and have household income in the six months immediately before entering the 
23.3 	program that is 200 percent or less of the federal poverty guideline for Minnesota, based 
23.4 	on family size; and
23.5 	(6) the program must be certified by the commissioner of employment and economic 
23.6 	development, or the commissioner's designee, as meeting the requirements of this subdivision.
23.7 		Subd. 3.Graduation and retention grant Employment requirements. For purposes 
23.8 	of a placement grant under this section, a qualified graduate is a graduate of a job training 
23.9 	program qualifying under subdivision 2 who is placed in a job in Minnesota that pays at 
23.10 	least the current state minimum wage. To qualify for a retention grant under this section for 
23.11 	a retention fee, a job in which the graduate is retained must pay at least the current state 
23.12 	minimum wage. (a) For employment to qualify under subdivision 1, the employment must 
23.13 	be permanent, unsubsidized, private or public sector employment, eligible for unemployment 
23.14 	insurance under section 268.035, or otherwise eligible for unemployment insurance under 
23.15 	section 268.035 if hours were above 32 per week.
23.16 	(b) Programs are limited to one placement and one retention payment for a qualified 
23.17 	graduate in a performance program within the two years following a placement or retention 
23.18 	payment made under this section.
23.19 		Subd. 4.Duties of program. (a) A program certified by the commissioner under 
23.20 	subdivision 2 must comply with the requirements of this subdivision.
23.21 	(b) A program must maintain and provide upon request records for each qualified graduate 
23.22 	in compliance with state record retention requirements. The records must include information 
23.23 	sufficient to verify the graduate's eligibility under this section, identify the employer, and 
23.24 	describe the job including its compensation rate and, benefits, and average hours per week.
23.25 	(c) A program is subject to the reporting requirements under section 116L.98.

23.26 	Sec. 5. Minnesota Statutes 2021 Supplement, section 116J.8749, is amended to read:
23.27 	116J.8749 MAIN STREET ECONOMIC REVITALIZATION PROGRAM.
23.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
23.29 	the meanings given.
23.30 	(b) "Borrower" means an eligible recipient receiving a loan guaranteed or capitalized 
23.31 	under this section.
24.1 	(c) "Capitalized loan" means a loan for which the state provides up to 20 percent of the 
24.2 	loan funding with the state funds payment subordinate in the event of default.
24.3 	(c) (d) "Commissioner" means the commissioner of employment and economic 
24.4 	development.
24.5 	(d) (e) "Eligible project" means the development, redevelopment, demolition, site 
24.6 	preparation, predesign, design, engineering, repair, or renovation of real property or capital 
24.7 	improvements. Eligible projects must be designed to address the greatest economic 
24.8 	development and redevelopment needs that have arisen in the community surrounding that 
24.9 	real property since March 15, 2020. Eligible project includes but is not limited to the 
24.10 	construction of buildings, infrastructure, and related site amenities, landscaping, or 
24.11 	street-scaping. Eligible project does not include the purchase of real estate or business 
24.12 	operations or business operating expenses, such as inventory, wages, or working capital.
24.13 	(e) (f) "Eligible recipient" means a:
24.14 	(1) business;
24.15 	(2) nonprofit organization; or
24.16 	(3) developer
24.17 	that is seeking funding to complete an eligible project. Eligible recipient does not include 
24.18 	a partner organization or a local unit of government.
24.19 	(f) (g) "Guaranteed loan" means a loan guaranteed by the state for 80 percent of the loan 
24.20 	amount for a maximum period of 15 years from the origination of the loan.
24.21 	(g) (h) "Leveraged grant" means a grant that is matched by the eligible recipient's 
24.22 	commitment to the eligible project of nonstate funds at a level of 200 percent of the grant 
24.23 	amount. The nonstate match may include but is not limited to funds contributed by a partner 
24.24 	organization and insurance proceeds.
24.25 	(h) (i) "Loan guarantee trust fund" means a dedicated account established under this 
24.26 	section for the purpose of compensation for defaulted loan guarantees.
24.27 	(j) "Low-income area" means a census tract that has a poverty rate of at least 20 percent 
24.28 	as reported in the most recently completed decennial census published by the United States 
24.29 	Bureau of the Census.
24.30 	(i) (k) "Partner organizations" or "partners" means:
24.31 	(1) foundations engaged in economic development;
25.1 	(2) community development financial institutions; and
25.2 	(3) community development corporations.
25.3 	(j) (l) "Program" means the Main Street Economic Revitalization Program under this 
25.4 	section.
25.5 	(k) (m) "Subordinated loan" means a loan secured by a lien that is lower in priority than 
25.6 	one or more specified other liens.
25.7 		Subd. 2.Establishment. The commissioner shall establish the Main Street Economic 
25.8 	Revitalization Program to make grants to partner organizations to fund leveraged grants, 
25.9 	capitalized loans, and guaranteed loans to specific named eligible recipients for eligible 
25.10 	projects that are designed to address the greatest economic development and redevelopment 
25.11 	needs that have arisen in the surrounding community since March 15, 2020.
25.12 		Subd. 3.Grants to partner organizations. (a) The commissioner shall make grants to 
25.13 	partner organizations to provide leveraged grants, capitalized loans, and guaranteed loans 
25.14 	to eligible recipients using criteria, forms, applications, and reporting requirements developed 
25.15 	by the commissioner.
25.16 	(b) To be eligible for a grant, a partner organization must:
25.17 	(1) outline a plan to provide leveraged grants, capitalized loans, and guaranteed loans 
25.18 	to eligible recipients for specific eligible projects that represent the greatest economic 
25.19 	development and redevelopment needs in the surrounding community. This plan must 
25.20 	include an analysis of the economic impact of the eligible projects the partner organization 
25.21 	proposes to make these investments in;
25.22 	(2) establish a process of ensuring there are no conflicts of interest in determining awards 
25.23 	under the program; and
25.24 	(3) demonstrate that the partner organization has raised funds for the specific purposes 
25.25 	of this program to commit to the proposed eligible projects or will do so within the 15-month 
25.26 	period following the encumbrance of funds. Existing assets and state or federal funds may 
25.27 	not be used to meet this requirement.
25.28 	(c) Grants shall be made in up to three rounds:
25.29 	(1) a first round with an application date before September 1, 2021, during which no 
25.30 	more than 50 percent of available funds will be granted;
25.31 	(2) a second round with an application date after September 1, 2021, but before March 
25.32 	1, 2022; and
26.1 	(3) a third round with an application date after June 30, 2023, if any funds remain after 
26.2 	the first two rounds.
26.3 	A partner may apply in multiple rounds for projects that were not funded in earlier rounds 
26.4 	or for new projects.
26.5 	(d) Up to four percent of a grant under this subdivision may be used by the partner 
26.6 	organization for administration and monitoring of the program.
26.7 		Subd. 4.Award criteria. In awarding grants under this section, the commissioner shall 
26.8 	give funding preference to applications that:
26.9 	(1) have the greatest regional economic impact under subdivision 3, paragraph (b), clause 
26.10 	(1), particularly with regard to increasing the local tax base; and
26.11 	(2) have the greatest portion of the estimated cost of the eligible projects met through 
26.12 	nonstate funds.
26.13 		Subd. 5.Leveraged grants to eligible recipients. (a) A leveraged grant to an eligible 
26.14 	recipient shall be for no more than $750,000.
26.15 	(b) A leveraged grant may be used to finance no more than 30 percent of an eligible 
26.16 	project.
26.17 	(c) An eligible project must have secured commitments for all required matching funds 
26.18 	and all required development approvals before a leveraged grant may be distributed.
26.19 	(d) The commissioner may waive the matching fund requirement for projects located 
26.20 	in low-income areas.
26.21 		Subd. 6.Capitalized and guaranteed loans to eligible recipients. (a) A capitalized or 
26.22 	guaranteed loan to an eligible recipient must:
26.23 	(1) be for no more than $2,000,000; and
26.24 	(2) be for a term of no more than 15 years; and.
26.25 	(3)(b) All capitalized loans shall comply with the terms under subdivision 6a and all 
26.26 	guaranteed loans shall comply with the terms under subdivision 7.
26.27 	(b) (c) An eligible project must have all required development approvals before a 
26.28 	capitalized or guaranteed loan may be distributed.
26.29 	(d) Upon origination of a capitalized loan, the commissioner shall authorize disbursement 
26.30 	of up to 20 percent of the loan amount to the partner organization.
27.1 	(c) (e) Upon origination of a guaranteed loan, the commissioner must reserve ten percent 
27.2 	of the loan amount into the loan guarantee trust fund created under subdivision 8.
27.3 	(d) (f) No capitalized or guaranteed loan may be made to an eligible recipient after 
27.4 	December 31, 2024.
27.5 		Subd. 6a.Required terms for capitalized loans. For a capitalized loan under the 
27.6 	program:
27.7 	(1) principal and interest payments made by the borrower under the terms of the loan 
27.8 	shall be allocated first to the nonstate portion of the loan and second to the state portion of 
27.9 	the loan;
27.10 	(2) the partner organization shall not accelerate repayment of the loan or exercise other 
27.11 	remedies if the borrower defaults, unless:
27.12 	(i) the borrower fails to make a required payment of principal or interest within 60 days 
27.13 	of the due date; or
27.14 	(ii) the commissioner consents in writing;
27.15 	(3) the partner organization must timely prepare and deliver to the commissioner, annually 
27.16 	by the date specified in the loan agreement, an audited or reviewed financial statement for 
27.17 	the loan, prepared by a certified public accountant according to generally accepted accounting 
27.18 	principles, if available, and documentation that the borrower used the loan proceeds solely 
27.19 	for an eligible project;
27.20 	(4) the commissioner shall have access to loan documents at any time subsequent to the 
27.21 	loan documents being submitted to the partner organization;
27.22 	(5) the partner organization must maintain adequate records and documents concerning 
27.23 	the loan so that the commissioner may determine the borrower's financial condition and 
27.24 	compliance with program requirements;
27.25 	(6) the state portion of the loan may be subordinate to other loans made by lenders in 
27.26 	the overall financing package; and
27.27 	(7) repayments of the state portion of the loan may be retained by the partner organization 
27.28 	for capitalizing additional redevelopment projects.
27.29 		Subd. 7.Required terms for guaranteed loans. For a guaranteed loan under the 
27.30 	program:
27.31 	(1) principal and interest payments made by the borrower under the terms of the loan 
27.32 	are to reduce the guaranteed and nonguaranteed portion of the loan on a proportionate basis. 
28.1 	The nonguaranteed portion shall not receive preferential treatment over the guaranteed 
28.2 	portion;
28.3 	(2) the partner organization shall not accelerate repayment of the loan or exercise other 
28.4 	remedies if the borrower defaults, unless:
28.5 	(i) the borrower fails to make a required payment of principal or interest within 60 days 
28.6 	of the due date; or
28.7 	(ii) the commissioner consents in writing;
28.8 	(3) in the event of a default, the partner organization may not make a demand for payment 
28.9 	pursuant to the guarantee unless the commissioner agrees in writing that the default has 
28.10 	materially affected the rights or security of the parties;
28.11 	(4) the partner organization must timely prepare and deliver to the commissioner, annually 
28.12 	by the date specified in the loan guarantee, an audited or reviewed financial statement for 
28.13 	the loan, prepared by a certified public accountant according to generally accepted accounting 
28.14 	principles, if available, and documentation that the borrower used the loan proceeds solely 
28.15 	for an eligible project;
28.16 	(5) the commissioner shall have access to loan documents at any time subsequent to the 
28.17 	loan documents being submitted to the partner organization;
28.18 	(6) the partner organization must maintain adequate records and documents concerning 
28.19 	the loan so that the commissioner may determine the borrower's financial condition and 
28.20 	compliance with program requirements;
28.21 	(7) orderly liquidation of collateral securing the loan must be provided for in the event 
28.22 	of default, pursuant to the loan guarantee; and
28.23 	(8) the guaranteed portion of the loan may be subordinate to other loans made by lenders 
28.24 	in the overall financing package.
28.25 		Subd. 8.Loan guarantee trust fund established. A loan guarantee trust fund account 
28.26 	in the special revenue fund is created in the state treasury to pay for defaulted loan guarantees. 
28.27 	The commissioner shall administer this account. The day that this section expires, all 
28.28 	remaining funds in the account are canceled to the general fund.
28.29 		Subd. 9.Statewide program. In proportion to eligible demand, leveraged grants, 
28.30 	capitalized loans, and guaranteed loans under this section shall be made so that an 
28.31 	approximately equal dollar amount of leveraged grants, capitalized loans, and guaranteed 
28.32 	loans are made to businesses in the metropolitan area as in the nonmetropolitan area, not 
29.1 	to exceed 65 percent in any one area. After June 30, 2023, the department may allow 
29.2 	leveraged grants, capitalized loans, and guaranteed loans to be made anywhere in the state 
29.3 	without regard to geographic area.
29.4 		Subd. 10.Exemptions. All grants and grant-making processes under this section are 
29.5 	exempt from Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98, 
29.6 	subdivisions 5, 7, and 8. The commissioner must audit the use of funds under this section 
29.7 	in accordance with standard accounting practices. The exemptions under this subdivision 
29.8 	expire on December 31, 2023.
29.9 		Subd. 11.Reports. (a) By January 31, 2022, and annually until December 31, 2026, 
29.10 	after which biennial reporting will be permitted after the commissioner consults with the 
29.11 	legislature, partner organizations participating in the program must provide a report to the 
29.12 	commissioner that includes descriptions of the eligible projects supported by the program, 
29.13 	the type and amount of support provided, any economic development gains attributable to 
29.14 	the support, and an explanation of administrative expenses.
29.15 	(b) By February 15, 2022, and annually until December 31, 2026, after which biennial 
29.16 	reporting will be permitted after the commissioner consults with the legislature, the 
29.17 	commissioner must report to the legislative committees in the house of representatives and 
29.18 	senate with jurisdiction over economic development about funding provided under this 
29.19 	program based on the information received under paragraph (a) and about the performance 
29.20 	of the loan guarantee trust fund.
29.21 		Subd. 12.Expiration. This section expires December 31, 2036.

29.22 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2021.

29.23 	Sec. 6. [116J.8751] SPARK SMALL BUSINESS LOAN PROGRAM.
29.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
29.25 	the meanings given.
29.26 	(b) "Account" means the spark small business loan program account created under 
29.27 	subdivision 5.
29.28 	(c) "Commissioner" means the commissioner of employment and economic development.
29.29 	(d) "Community business" means a cooperative, an employee-owned business, or a 
29.30 	commercial land trust that is at least 51 percent owned by individuals from targeted groups.
29.31 	(e) "Immigrant" means a lawful permanent resident who has been in the United States 
29.32 	for a maximum of seven years at the time of application.
30.1 	(f) "Partner organization" means a community development financial institution or 
30.2 	nonprofit corporation.
30.3 	(g) "Program" means the spark small business loan program established under this 
30.4 	section.
30.5 	(h) "Targeted groups" means people who are Black, Indigenous, People of Color, 
30.6 	immigrants, low income, women, veterans, or people with disabilities.
30.7 		Subd. 2.Establishment. The spark small business loan program is established to award 
30.8 	grants to partner organizations to fund loans statewide to businesses that employ the 
30.9 	equivalent of 50 full-time workers or less, to encourage private investment, provide jobs, 
30.10 	create and strengthen business enterprises, and promote economic development.
30.11 		Subd. 3.Grants to partner organizations. (a) The commissioner shall award grants to 
30.12 	partner organizations through a competitive grant process where applicants apply using a 
30.13 	form designed by the commissioner. In evaluating applications, the commissioner must 
30.14 	consider, among other things, whether the applicant:
30.15 	(1) has a board of directors that includes citizens experienced in business and community 
30.16 	development and creating jobs;
30.17 	(2) has the technical skills to analyze projects;
30.18 	(3) is familiar with other available public and private funding sources and economic 
30.19 	development programs;
30.20 	(4) can initiate and implement economic development projects;
30.21 	(5) can establish and administer a revolving loan account or has operated a revolving 
30.22 	loan account; and
30.23 	(6) can work with job referral networks.
30.24 	(b) The commissioner shall ensure that, to the extent there is sufficient eligible demand, 
30.25 	loans are made to businesses inside and outside the metropolitan area, as defined in section 
30.26 	473.121, subdivision 2, in a manner approximating each region's proportion of the state 
30.27 	population. After March 31 of each fiscal year, the commissioner may allow loans to be 
30.28 	made anywhere in the state without regard to geographic area.
30.29 	(c) Partner organizations that receive grants under this subdivision may use up to ten 
30.30 	percent of the award for administrative expenses, including providing specialized technical 
30.31 	and legal assistance, either directly or through partnership with nonprofit organizations, to 
30.32 	businesses eligible to apply for loans under this program.
31.1 	(d) The commissioner shall review existing agreements with partner organizations every 
31.2 	five years and may renew or terminate the agreement based on that review. In making the 
31.3 	review, the commissioner shall consider, among other criteria, the criteria in paragraph (a).
31.4 		Subd. 4.Loans to businesses. (a) A partner organization that receives a grant under 
31.5 	subdivision 3 shall establish a plan for making loans to businesses. The plan requires approval 
31.6 	by the commissioner.
31.7 	(b) Under the plan:
31.8 	(1) the partner organization shall establish a commissioner-certified revolving loan fund 
31.9 	for the purpose of making loans to businesses;
31.10 	(2) loans shall be for projects that are unlikely to be undertaken unless a loan is received 
31.11 	under the program;
31.12 	(3) a partner organization may not make a loan to a project in which it has an ownership 
31.13 	interest;
31.14 	(4) the state contribution to each loan shall be no less than $5,000 and no more than:
31.15 	(i) $35,000 if the loan is for a retail development project;
31.16 	(ii) $600,000 if the loan is for a community business; and
31.17 	(iii) $150,000 for all other loans;
31.18 	(5) the interest rate on a loan shall not be higher than the Wall Street Journal prime rate 
31.19 	and may be zero;
31.20 	(6) loans shall be for a maximum term of seven years;
31.21 	(7) the partner organization may charge a loan origination fee of no more than one 
31.22 	percent of the loan value and may retain that origination fee;
31.23 	(8) a loan application given preliminary approval by the partner organization must be 
31.24 	forwarded to the commissioner for final approval;
31.25 	(9) repayments may be deferred for up to one year if justified by the project proposed 
31.26 	and approved by the commissioner;
31.27 	(10) all repayments of interest on loans shall be deposited in the partner organization's 
31.28 	revolving loan fund for use in making further loans consistent with this section;
31.29 	(11) all repayments of loan principal must be paid to the commissioner for deposit in 
31.30 	the spark small business loan program account; and
32.1 	(12) up to ten percent of a loan's principal amount may be forgiven if the commissioner 
32.2 	approves and the borrower has met lender criteria, including being current with all payments.
32.3 		Subd. 5.Creation of account. A spark small business loan program account is created 
32.4 	in the special revenue fund in the state treasury. Money in the account is appropriated to 
32.5 	the commissioner for the grants under this section. Annually, the commissioner may use 
32.6 	an amount equal to no more than four percent of the value of grants made in the previous 
32.7 	year for the administrative costs of the program. In fiscal year 2023, the commissioner may 
32.8 	use $500,000 for administration. Notwithstanding section 16A.28, money deposited in the 
32.9 	account from any source is available until expended.
32.10 		Subd. 6.Reporting requirements. (a) A partner organization that receives a grant shall:
32.11 	(1) submit an annual report to the commissioner by February 15 of each year, beginning 
32.12 	in 2024, that includes a description of businesses supported by the program, an account of 
32.13 	loans made during the calendar year, the program's impact on business enterprises and job 
32.14 	creation, the source and amount of money collected and distributed by the program, the 
32.15 	program's assets and liabilities, and an explanation of administrative expenses; and
32.16 	(2) provide for an independent annual audit to be performed in accordance with generally 
32.17 	accepted accounting practices and auditing standards and submit a copy of each annual 
32.18 	audit report to the commissioner.
32.19 	(b) By March 1 of each year, beginning in 2024, the commissioner shall submit a report 
32.20 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
32.21 	over economic development on program outcomes, including copies of all reports and audits 
32.22 	received under paragraph (a).

32.23 	Sec. 7. Minnesota Statutes 2020, section 116J.8770, is amended to read:
32.24 	116J.8770 EQUITY INVESTMENTS.
32.25 	The commissioner may invest funds from the capital access account to make equity 
32.26 	investments in community development early stage and venture capital funds for the purpose 
32.27 	of providing capital for small and emerging businesses. The community development early 
32.28 	stage and venture capital fund must have experience in equity investments with small 
32.29 	businesses and the ability to raise private capital.

33.1 	Sec. 8. Minnesota Statutes 2021 Supplement, section 116J.9924, subdivision 4, is amended 
33.2 	to read:
33.3 		Subd. 4.Grant amount; project phasing. (a) The commissioner shall award grants in 
33.4 	an amount not to exceed $1,500,000 $3,000,000 per grant.
33.5 	(b) A grant awarded under this section must be no less than the amount required to 
33.6 	complete one or more phases of the project, less any nonstate funds already committed for 
33.7 	such activities.

33.8 	Sec. 9. [116J.9926] EMERGING DEVELOPER FUND PROGRAM.
33.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
33.10 	the meanings given.
33.11 	(b) "Commissioner" means the commissioner of employment and economic development.
33.12 	(c) "Disadvantaged community" means a community where the median household 
33.13 	income is less than 80 percent of the area median income.
33.14 	(d) "Eligible project" means a project that is based in Minnesota and meets one or more 
33.15 	of the following criteria:
33.16 	(1) it will stimulate community stabilization or revitalization;
33.17 	(2) it will be located within a census tract identified as a disadvantaged community or 
33.18 	low-income community;
33.19 	(3) it will directly benefit residents of a low-income household;
33.20 	(4) it will increase the supply and improve the condition of affordable housing and 
33.21 	homeownership;
33.22 	(5) it will support the growth needs of new and existing community-based enterprises 
33.23 	that promote economic stability or improve the supply or quality of job opportunities; or
33.24 	(6) it will promote wealth creation, including by being a project in a neighborhood 
33.25 	traditionally not served by real estate developers.
33.26 	(e) "Emerging developer" means a developer who:
33.27 	(1) has limited access to loans from traditional financial institutions; or
33.28 	(2) is a new or smaller developer who has engaged in educational training in real estate 
33.29 	development; and
33.30 	(3) is either a:
34.1 	(i) minority as defined in section 116M.14, subdivision 6;
34.2 	(ii) woman;
34.3 	(iii) person with a disability, as defined in section 116M.14, subdivision 9; or
34.4 	(iv) low-income person.
34.5 	(f) "Low-income person" means a person who:
34.6 	(1) has a household income at or below 200 percent of the federal poverty level; or
34.7 	(2) has a family income that does not exceed 60 percent of the area median income as 
34.8 	determined by the United States Department of Housing and Urban Development.
34.9 	(g) "Partner organization" means a community development financial institution or a 
34.10 	similarly qualified nonprofit corporation, as determined by the commissioner.
34.11 	(h) "Program" means the emerging developer fund program created under this section.
34.12 		Subd. 2.Establishment. The commissioner shall establish an emerging developer fund 
34.13 	program to make grants to partner organizations to make loans to emerging developers for 
34.14 	eligible projects to transform neighborhoods statewide and promote economic development 
34.15 	and the creation and retention of jobs in Minnesota. The program must also reduce racial 
34.16 	and socioeconomic disparities by growing the financial capacity of emerging developers.
34.17 		Subd. 3.Grants to partner organizations. (a) The commissioner shall design a 
34.18 	competitive process to award grants to partner organizations to make loans to emerging 
34.19 	developers under subdivision 4.
34.20 	(b) A partner organization may use up to ten percent of grant funds for the administrative 
34.21 	costs of the program.
34.22 		Subd. 4.Loans to emerging developers. (a) Through the program, partner organizations 
34.23 	shall offer emerging developers predevelopment, construction, and bridge loans for eligible 
34.24 	projects according to a plan submitted to and approved by the commissioner.
34.25 	(b) Predevelopment loans must be for no more than $50,000. All other types of loans 
34.26 	must be for no more than $500,000.
34.27 	(c) Loans must be for a term set by the partner organization and approved by the 
34.28 	commissioner of no less than six months and no more than five years, depending on the use 
34.29 	of loan proceeds.
35.1 	(d) Loans must be for zero interest or an interest rate of no more than the Wall Street 
35.2 	Journal prime rate, as determined by the partner organization and approved by the 
35.3 	commissioner based on the individual project risk and type of loan sought.
35.4 	(e) Loans must have flexible collateral requirements compared to traditional loans, but 
35.5 	may require a personal guaranty from the emerging developer and may be largely unsecured 
35.6 	when the appraised value of the real estate is low.
35.7 	(f) Loans must have no prepayment penalties and are expected to be repaid from 
35.8 	permanent financing or a conventional loan, once that is secured.
35.9 	(g) Loans must have the ability to bridge many types of receivables, such as tax credits, 
35.10 	grants, developer fees, and other forms of long-term financing.
35.11 	(h) At the partner organization's request and the commissioner's discretion, an emerging 
35.12 	developer may be required to work with an experienced developer or professional services 
35.13 	consultant who can offer expertise and advice throughout the development of the project.
35.14 	(i) All loan repayments must be paid into the emerging developer fund account created 
35.15 	in this section to fund additional loans.
35.16 		Subd. 5.Eligible expenses. (a) The following are eligible expenses for a predevelopment 
35.17 	loan under the program:
35.18 	(1) earnest money or purchase deposit;
35.19 	(2) building inspection fees and environmental reviews;
35.20 	(3) appraisal and surveying;
35.21 	(4) design and tax credit application fees;
35.22 	(5) title and recording fees;
35.23 	(6) site preparation, demolition, and stabilization;
35.24 	(7) interim maintenance and project overhead;
35.25 	(8) property taxes and insurance;
35.26 	(9) construction bonds or letters of credit;
35.27 	(10) market and feasibility studies; and
35.28 	(11) professional fees.
35.29 	(b) The following are eligible expenses for a construction or bridge loan under the 
35.30 	program:
36.1 	(1) land or building acquisition;
36.2 	(2) construction-related expenses;
36.3 	(3) developer and contractor fees;
36.4 	(4) site preparation and demolition;
36.5 	(5) financing fees, including title and recording;
36.6 	(6) professional fees;
36.7 	(7) carrying costs;
36.8 	(8) construction period interest;
36.9 	(9) project reserves; and
36.10 	(10) leasehold improvements and equipment purchase.
36.11 		Subd. 6.Emerging developer fund account. An emerging developer fund account is 
36.12 	created in the special revenue fund in the state treasury. Money in the account is appropriated 
36.13 	to the commissioner for grants to partner organizations to make loans under this section.
36.14 		Subd. 7.Reports to the legislature. (a) By January 15 of each year, beginning in 2024, 
36.15 	each partner organization shall submit a report to the commissioner on the use of program 
36.16 	funds and program outcomes.
36.17 	(b) By February 15 of each year, beginning in 2024, the commissioner shall submit a 
36.18 	report to the chairs of the house of representatives and senate committees with jurisdiction 
36.19 	over economic development on the use of program funds and program outcomes.

36.20 	Sec. 10. Minnesota Statutes 2020, section 116J.993, subdivision 3, is amended to read:
36.21 		Subd. 3.Business subsidy. "Business subsidy" or "subsidy" means a state or local 
36.22 	government agency grant, contribution of personal property, real property, infrastructure, 
36.23 	the principal amount of a loan at rates below those commercially available to the recipient, 
36.24 	any reduction or deferral of any tax or any fee, any guarantee of any payment under any 
36.25 	loan, lease, or other obligation, or any preferential use of government facilities given to a 
36.26 	business.
36.27 	The following forms of financial assistance are not a business subsidy:
36.28 	(1) a business subsidy of less than $150,000;
36.29 	(2) assistance that is generally available to all businesses or to a general class of similar 
36.30 	businesses, such as a line of business, size, location, or similar general criteria;
37.1 	(3) public improvements to buildings or lands owned by the state or local government 
37.2 	that serve a public purpose and do not principally benefit a single business or defined group 
37.3 	of businesses at the time the improvements are made;
37.4 	(4) redevelopment property polluted by contaminants as defined in section 116J.552, 
37.5 	subdivision 3;
37.6 	(5) assistance provided for the sole purpose of renovating old or decaying building stock 
37.7 	or bringing it up to code and assistance provided for designated historic preservation districts, 
37.8 	provided that the assistance is equal to or less than 50 percent of the total cost;
37.9 	(6) assistance to provide job readiness and training services if the sole purpose of the 
37.10 	assistance is to provide those services;
37.11 	(7) assistance for housing;
37.12 	(8) assistance for pollution control or abatement, including assistance for a tax increment 
37.13 	financing hazardous substance subdistrict as defined under section 469.174, subdivision 
37.14 	23;
37.15 	(9) assistance for energy conservation;
37.16 	(10) tax reductions resulting from conformity with federal tax law;
37.17 	(11) workers' compensation and unemployment insurance;
37.18 	(12) benefits derived from regulation;
37.19 	(13) indirect benefits derived from assistance to educational institutions;
37.20 	(14) funds from bonds allocated under chapter 474A, bonds issued to refund outstanding 
37.21 	bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) 
37.22 	of the Internal Revenue Code of 1986, as amended through December 31, 1999;
37.23 	(15) assistance for a collaboration between a Minnesota higher education institution and 
37.24 	a business;
37.25 	(16) assistance for a tax increment financing soils condition district as defined under 
37.26 	section 469.174, subdivision 19;
37.27 	(17) redevelopment when the recipient's investment in the purchase of the site and in 
37.28 	site preparation is 70 percent or more of the assessor's current year's estimated market value;
37.29 	(18) general changes in tax increment financing law and other general tax law changes 
37.30 	of a principally technical nature;
38.1 	(19) federal assistance until the assistance has been repaid to, and reinvested by, the 
38.2 	state or local government agency;
38.3 	(20) funds from dock and wharf bonds issued by a seaway port authority;
38.4 	(21) business loans and loan guarantees of $150,000 or less;
38.5 	(22) federal loan funds provided through the United States Department of Commerce, 
38.6 	Economic Development Administration, Department of the Treasury; and
38.7 	(23) property tax abatements granted under section 469.1813 to property that is subject 
38.8 	to valuation under Minnesota Rules, chapter 8100.

38.9 	Sec. 11. Minnesota Statutes 2020, section 116L.04, subdivision 1a, is amended to read:
38.10 		Subd. 1a.Pathways program. The pathways program may provide grants-in-aid for 
38.11 	developing programs which assist in the transition of persons from welfare to work and 
38.12 	assist individuals at or below 200 percent of the federal poverty guidelines. The program 
38.13 	is to be operated by the board. The board shall consult and coordinate with program 
38.14 	administrators at the Department of Employment and Economic Development to design 
38.15 	and provide services for temporary assistance for needy families recipients.
38.16 	Pathways grants-in-aid may be awarded to educational or other nonprofit training 
38.17 	institutions or to workforce development intermediaries for education and training programs 
38.18 	and services supporting education and training programs that serve eligible recipients.
38.19 	Preference shall be given to projects that:
38.20 	(1) provide employment with benefits paid to employees;
38.21 	(2) provide employment where there are defined career paths for trainees;
38.22 	(3) pilot the development of an educational pathway that can be used on a continuing 
38.23 	basis for transitioning persons from welfare to work; and
38.24 	(4) demonstrate the active participation of Department of Employment and Economic 
38.25 	Development workforce centers, Minnesota State College and University institutions and 
38.26 	other educational institutions, and local welfare agencies.
38.27 	Pathways projects must demonstrate the active involvement and financial commitment 
38.28 	of private participating business. Pathways projects must be matched with cash or in-kind 
38.29 	contributions on at least a one-half-to-one ratio by participating private business.
38.30 	A single grant to any one institution shall not exceed $400,000. A portion of a grant may 
38.31 	be used for preemployment training.

39.1 	Sec. 12. Minnesota Statutes 2020, section 116L.17, subdivision 1, is amended to read:
39.2 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
39.3 	the meanings given them in this subdivision.
39.4 	(b) "Commissioner" means the commissioner of employment and economic development.
39.5 	(c) "Dislocated worker" means an individual who is a resident of Minnesota at the time 
39.6 	employment ceased or was working in the state at the time employment ceased and:
39.7 	(1) has been permanently separated or has received a notice of permanent separation 
39.8 	from public or private sector employment and is eligible for or has exhausted entitlement 
39.9 	to unemployment benefits, and is unlikely to return to the previous industry or occupation;
39.10 	(2) has been long-term unemployed and has limited opportunities for employment or 
39.11 	reemployment in the same or a similar occupation in the area in which the individual resides, 
39.12 	including older individuals who may have substantial barriers to employment by reason of 
39.13 	age;
39.14 	(3) has been terminated or has received a notice of termination of employment as a result 
39.15 	of a plant closing or a substantial layoff at a plant, facility, or enterprise;
39.16 	(4) has been self-employed, including farmers and ranchers, and is unemployed as a 
39.17 	result of general economic conditions in the community in which the individual resides or 
39.18 	because of natural disasters;
39.19 	(5) is a veteran as defined by section 197.447, has been discharged or released from 
39.20 	active duty under honorable conditions within the last 36 months, and (i) is unemployed or 
39.21 	(ii) is employed in a job verified to be below the skill level and earning capacity of the 
39.22 	veteran;
39.23 	(6) is an individual determined by the United States Department of Labor to be covered 
39.24 	by trade adjustment assistance under United States Code, title 19, sections 2271 to 2331, 
39.25 	as amended; or
39.26 	(7) is a displaced homemaker. A "displaced homemaker" is an individual who has spent 
39.27 	a substantial number of years in the home providing homemaking service and (i) has been 
39.28 	dependent upon the financial support of another; and now due to divorce, separation, death, 
39.29 	or disability of that person, must now find employment to self support; or (ii) derived the 
39.30 	substantial share of support from public assistance on account of dependents in the home 
39.31 	and no longer receives such support. To be eligible under this clause, the support must have 
39.32 	ceased while the worker resided in Minnesota.
40.1 	For the purposes of this section, "dislocated worker" does not include an individual who 
40.2 	was an employee, at the time employment ceased, of a political committee, political fund, 
40.3 	principal campaign committee, or party unit, as those terms are used in chapter 10A, or an 
40.4 	organization required to file with the federal elections commission.
40.5 	(d) "Eligible organization" means a state or local government unit, nonprofit organization, 
40.6 	community action agency, business organization or association, or labor organization.
40.7 	(e) "Plant closing" means the announced or actual permanent shutdown of a single site 
40.8 	of employment, or one or more facilities or operating units within a single site of 
40.9 	employment.
40.10 	(f) "Substantial layoff" means a permanent reduction in the workforce, which is not a 
40.11 	result of a plant closing, and which results in an employment loss at a single site of 
40.12 	employment during any 30-day period for at least 50 employees excluding those employees 
40.13 	that work less than 20 hours per week.

40.14 	Sec. 13. Minnesota Statutes 2020, section 116L.98, subdivision 2, is amended to read:
40.15 		Subd. 2.Definitions. (a) For the purposes of this section, the terms defined in this 
40.16 	subdivision have the meanings given.
40.17 	(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates 
40.18 	awarded in recognition of an individual's attainment of measurable technical or occupational 
40.19 	skills necessary to obtain employment or advance with an occupation. This definition does 
40.20 	not include certificates awarded by workforce investment boards or work-readiness 
40.21 	certificates.
40.22 	(c) "Exit" means to have not received service under a workforce program for 90 
40.23 	consecutive calendar days. The exit date is the last date of service.
40.24 	(d) "Net impact" means the use of matched control groups and regression analysis to 
40.25 	estimate the impacts attributable to program participation net of other factors, including 
40.26 	observable personal characteristics and economic conditions.
40.27 	(e) "Pre-enrollment" means the period of time before an individual was enrolled in a 
40.28 	workforce program.

40.29 	Sec. 14. Minnesota Statutes 2020, section 116L.98, subdivision 3, is amended to read:
40.30 		Subd. 3.Uniform outcome report card; reporting by commissioner. (a) By December 
40.31 	31 of each even-numbered year, the commissioner must report to the chairs and ranking 
41.1 	minority members of the committees of the house of representatives and the senate having 
41.2 	jurisdiction over economic development and workforce policy and finance the following 
41.3 	information separately for each of the previous two fiscal or calendar years, for each program 
41.4 	subject to the requirements of subdivision 1:
41.5 	(1) the total number of participants enrolled;
41.6 	(2) the median pre-enrollment wages based on participant wages for the second through 
41.7 	the fifth calendar quarters immediately preceding the quarter of enrollment excluding those 
41.8 	with zero income;
41.9 	(3) the total number of participants with zero income in the second through fifth calendar 
41.10 	quarters immediately preceding the quarter of enrollment;
41.11 	(4) the total number of participants enrolled in training;
41.12 	(5) the total number of participants enrolled in training by occupational group;
41.13 	(6) the total number of participants that exited the program and the average enrollment 
41.14 	duration of participants that have exited the program during the year;
41.15 	(7) the total number of exited participants who completed training;
41.16 	(8) the total number of exited participants who attained a credential;
41.17 	(9) the total number of participants employed during three consecutive quarters 
41.18 	immediately following the quarter of exit, by industry;
41.19 	(10) the median wages of participants employed during three consecutive quarters 
41.20 	immediately following the quarter of exit;
41.21 	(11) the total number of participants employed during eight consecutive quarters 
41.22 	immediately following the quarter of exit, by industry; and
41.23 	(12) the median wages of participants employed during eight consecutive quarters 
41.24 	immediately following the quarter of exit;.
41.25 	(13) the total cost of the program;
41.26 	(14) the total cost of the program per participant;
41.27 	(15) the cost per credential received by a participant; and
41.28 	(16) the administrative cost of the program.
42.1 	(b) The report to the legislature must contain participant information by education level, 
42.2 	race and ethnicity, gender, and geography, and a comparison of exited participants who 
42.3 	completed training and those who did not.
42.4 	(c) The requirements of this section apply to programs administered directly by the 
42.5 	commissioner or administered by other organizations under a grant made by the department.

42.6 	Sec. 15. CANADIAN BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
 42.7 		Subdivision 1.Relief program established. The Northland Foundation and the Northwest 
42.8 	Minnesota Foundation must develop and implement a Canadian border counties economic 
42.9 	relief program to assist businesses adversely affected by the 2021 closure of the Boundary 
42.10 	Waters Canoe Area Wilderness or the closures of the Canadian border since 2020.
42.11 		Subd. 2.Available relief. (a) The economic relief program established under this section 
42.12 	may include grants provided in this section to the extent that funds are available. Before 
42.13 	awarding grants to the Northland Foundation and the Northwest Minnesota Foundation for 
42.14 	the relief program under this section:
42.15 	(1) the Northland Foundation and the Northwest Minnesota Foundation must develop 
42.16 	criteria, procedures, and requirements for:
42.17 	(i) determining eligibility for assistance;
42.18 	(ii) evaluating applications for assistance;
42.19 	(iii) awarding assistance; and
42.20 	(iv) administering the grant program authorized under this section;
42.21 	(2) the Northland Foundation and the Northwest Minnesota Foundation must submit 
42.22 	criteria, procedures, and requirements developed under clause (1) to the commissioner of 
42.23 	employment and economic development for review; and
42.24 	(3) the commissioner must approve the criteria, procedures, and requirements submitted 
42.25 	under clause (2).
42.26 	(b) The maximum grant to a business under this section is $50,000 per business.
42.27 		Subd. 3.Qualification requirements. To qualify for assistance under this section, a 
42.28 	business must:
42.29 	(1) be located within a county that shares a border with Canada;
42.30 	(2) document a reduction of at least 20 percent in gross receipts in 2021 compared to 
42.31 	2019; and
43.1 	(3) provide a written explanation for how the 2021 closure of the Boundary Waters 
43.2 	Canoe Area Wilderness or the closures of the Canadian border since 2020 resulted in the 
43.3 	reduction in gross receipts documented under clause (2).
43.4 		Subd. 4.Monitoring. (a) The Northland Foundation and the Northwest Minnesota 
43.5 	Foundation must establish performance measures, including but not limited to the following 
43.6 	components:
43.7 	(1) the number of grants awarded and award amounts for each grant;
43.8 	(2) the number of jobs created or retained as a result of the assistance, including 
43.9 	information on the wages and benefit levels, the status of the jobs as full time or part time, 
43.10 	and the status of the jobs as temporary or permanent;
43.11 	(3) the amount of business activity and changes in gross revenues of the grant recipient 
43.12 	as a result of the assistance; and
43.13 	(4) the new tax revenue generated as a result of the assistance.
43.14 	(b) The commissioner of employment and economic development must monitor the 
43.15 	Northland Foundation's and the Northwest Minnesota Foundation's compliance with this 
43.16 	section and the performance measures developed under paragraph (a).
43.17 	(c) The Northland Foundation and the Northwest Minnesota Foundation must comply 
43.18 	with all requests made by the commissioner under this section.
43.19 		Subd. 5.Business subsidy requirements. Minnesota Statutes, sections 116J.993 to 
43.20 	116J.995, do not apply to assistance under this section. Businesses in receipt of assistance 
43.21 	under this section must provide for job creation and retention goals and wage and benefit 
43.22 	goals.
43.23 		Subd. 6.Administrative costs. The commissioner of employment and economic 
43.24 	development may use up to three percent of the appropriation made for this section for 
43.25 	administrative expenses of the department.

43.26 	EFFECTIVE DATE. This section is effective July 1, 2022, and expires June 30, 2023.

43.27 	Sec. 16. SMALL BUSINESS RECOVERY GRANT PROGRAM.
 43.28 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
43.29 	the meanings given.
44.1 	(b) "Business" means both for-profit businesses and nonprofit organizations that earn 
44.2 	revenue in ways similar to businesses, including but not limited to ticket sales and 
44.3 	membership fees.
44.4 	(c) "Commissioner" means the commissioner of employment and economic development.
44.5 	(d) "Partner organization" or "partner" means the Minnesota Initiative Foundations and 
44.6 	nonprofit corporations on the certified lenders list that the commissioner determines to be 
44.7 	qualified to provide grants to businesses under this section.
44.8 	(e) "Program" means the small business recovery grant program under this section.
44.9 		Subd. 2.Establishment. The commissioner shall establish the small business recovery 
44.10 	grant program to make grants to partner organizations to provide grants to businesses that 
44.11 	have been directly or indirectly impacted by the COVID-19 pandemic and other economic 
44.12 	challenges.
44.13 		Subd. 3.Grants to partner organizations. (a) The commissioner shall make grants to 
44.14 	partner organizations to provide grants to businesses under subdivision 4 using criteria, 
44.15 	forms, applications, and reporting requirements developed by the commissioner.
44.16 	(b) The commissioner must, to the degree practical, grant an equal amount of money to 
44.17 	partner organizations serving the seven-county metropolitan area, as defined under Minnesota 
44.18 	Statutes, section 473.121, subdivision 2, as the commissioner grants to organizations serving 
44.19 	greater Minnesota.
44.20 	(c) Up to four percent of a grant under this subdivision may be used by the partner 
44.21 	organization for administration and monitoring of the program.
44.22 	(d) Any money not spent by partner organizations by December 31, 2023, must be 
44.23 	returned to the commissioner and canceled back to the general fund.
44.24 		Subd. 4.Grants to businesses. (a) Partners shall make grants to businesses using criteria, 
44.25 	forms, applications, and reporting requirements developed by the commissioner.
44.26 	(b) To be eligible for a grant under this subdivision, a business must:
44.27 	(1) have primary business operations located in Minnesota;
44.28 	(2) be at least 50 percent owned by a resident of Minnesota;
44.29 	(3) employ the equivalent of 50 full-time workers or less;
44.30 	(4) be able to demonstrate financial hardship during 2021 or 2022;
44.31 	(5) include as part of the application a business plan for continued operation; and
45.1 	(6) primarily do business in one or more of the industries listed under subdivision 5.
45.2 	(c) Grants under this subdivision shall be awarded by randomized selection process after 
45.3 	applications are collected over a period of no more than ten calendar days.
45.4 	(d) Grants under this subdivision must be for up to $25,000 per business.
45.5 	(e) No business may receive more than one grant under this section.
45.6 	(f) Grant money must be used for working capital to support payroll expenses, rent or 
45.7 	mortgage payments, utility bills, and other similar expenses that occur or have occurred 
45.8 	since January 1, 2022, in the regular course of business, but not to refinance debt that existed 
45.9 	at the time of the governor's COVID-19 peacetime emergency declaration.
45.10 		Subd. 5.Eligible industries. To be eligible for a grant under subdivision 4, a business 
45.11 	must primarily do business in one or more of the following industries:
45.12 	(1) serving food or beverages, such as restaurants, cafes, bars, breweries, wineries, and 
45.13 	distilleries;
45.14 	(2) personal services, such as hair care, nail care, skin care, or massage;
45.15 	(3) indoor entertainment, such as a business providing arcade games, escape rooms, or 
45.16 	indoor trampoline parks;
45.17 	(4) indoor fitness and recreational sports centers, such as gyms, fitness studios, indoor 
45.18 	ice rinks, and indoor swimming pools;
45.19 	(5) wellness and recreation, such as the teaching of yoga, dance, or martial arts;
45.20 	(6) catering services;
45.21 	(7) temporary lodging, such as hotels and motels; or
45.22 	(8) performance venues.
45.23 		Subd. 6.Distribution of awards. Of grant funds awarded under subdivision 4, a 
45.24 	minimum of:
45.25 	(1) $15,000,000 must be awarded to businesses that employ the equivalent of six full-time 
45.26 	workers or less;
45.27 	(2) $10,000,000 must be awarded to minority business enterprises, as defined in 
45.28 	Minnesota Statutes, section 116M.14, subdivision 5;
45.29 	(3) $2,500,000 must be awarded to businesses that are majority owned and operated by 
45.30 	veterans as defined in Minnesota Statutes, section 197.447; and
46.1 	(4) $2,500,000 must be awarded to businesses that are majority owned and operated by 
46.2 	women.
46.3 		Subd. 7.Exemptions. All grants and grant-making processes under this section are 
46.4 	exempt from Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98, 
46.5 	subdivisions 5, 7, and 8. The commissioner must audit the use of grant money under this 
46.6 	section in accordance with standard accounting practices. This subdivision expires on 
46.7 	December 31, 2023.
46.8 		Subd. 8.Reports. (a) By January 31, 2024, partner organizations participating in the 
46.9 	program must provide a report to the commissioner that includes descriptions of the 
46.10 	businesses supported by the program, the amounts granted, and an explanation of 
46.11 	administrative expenses.
46.12 	(b) By February 15, 2024, the commissioner must report to the legislative committees 
46.13 	in the house of representatives and senate with jurisdiction over economic development 
46.14 	about grants made under this section based on the information received under paragraph 
46.15 	(a).

46.16 	Sec. 17. ENCUMBRANCE EXCEPTION.
 46.17 	Notwithstanding Minnesota Statutes, section 16B.98, subdivision 5, paragraph (a), clause 
46.18 	(2), or 16C.05, subdivision 2, paragraph (a), clause (3), the commissioner of employment 
46.19 	and economic development may permit grant recipients of the Minnesota investment fund 
46.20 	program under Minnesota Statutes, section 116J.8731; the job creation fund program under 
46.21 	Minnesota Statutes, section 116J.8748; and the border-to-border broadband program under 
46.22 	Minnesota Statutes, section 116J.395, to incur eligible expenses based on an agreed upon 
46.23 	work plan and budget for up to 90 days prior to an encumbrance being established in the 
46.24 	accounting system.

46.25 	EFFECTIVE DATE. This section is effective the day following final enactment and 
46.26 	expires on June 30, 2025.

46.27 	Sec. 18. REPEALER.
 46.28 	Minnesota Statutes 2021 Supplement, section 116J.9924, subdivision 6, is repealed.

APPENDIX 

Repealed Minnesota Statutes: H4355-1 

116J.9924 TARGETED COMMUNITY CAPITAL PROJECT GRANT PROGRAM.Subd. 6.Applicability of other laws. 
The provisions of chapter 16A that apply to general fund appropriations for capital projects also apply to grants under this section. Money granted under this section is available until the project is completed or abandoned subject to section 16A.642.