1.1 	A bill for an act
1.2 	relating to state government; establishing a biennial budget for the Department of 
1.3 	Employment and Economic Development and Explore Minnesota; appropriating 
1.4 	money for Capitol area improvements; modifying various policy provisions; 
1.5 	requiring reports; appropriating money;amending Minnesota Statutes 2022, sections 
1.6 	116J.871, subdivisions 1, 2; 116J.8748, subdivisions 3, 4, 6, by adding a 
1.7 	subdivision; 116J.9924, subdivision 4; proposing coding for new law in Minnesota 
1.8 	Statutes, chapter 116J; repealing Minnesota Statutes 2022, section 116J.9924, 
1.9 	subdivision 6; Laws 2019, First Special Session chapter 7, article 2, section 8, as 
1.10 	amended.
1.11 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.12 	ARTICLE 1
1.13 	APPROPRIATIONS

1.14	Section 1. APPROPRIATIONS.
 	
1.15 	(a) The sums shown in the columns marked "Appropriations" are appropriated to the 
1.16 	agencies and for the purposes specified in this article. The appropriations are from the 
1.17 	general fund, or another named fund, and are available for the fiscal years indicated for 
1.18 	each purpose. The figures "2024" and "2025" used in this article mean that the appropriations 
1.19 	listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025, 
1.20 	respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The 
1.21 	biennium" is fiscal years 2024 and 2025.
1.22 	(b) If an appropriation in this article is enacted more than once in the 2023 regular or 
1.23 	special legislative session, the appropriation must be given effect only once.

1.24				APPROPRIATIONS
	
1.25				Available for the Year
	
2.1				Ending June 30
	
2.2					2024
		2025

2.3
2.4	Sec. 2. DEPARTMENT OF EMPLOYMENT 
AND ECONOMIC DEVELOPMENT

2.5	Subdivision 1.Total Appropriation
 	$
	695,532,000
	$
	125,230,000

2.6	Appropriations by Fund
	
2.7		2024
	2025
	
2.8	General
	693,482,000
	123,180,000
	
2.9	Remediation
	700,000
	700,000
	
2.10
2.11	Workforce 
Development
	1,350,000
	1,350,000
	
2.12 	The amounts that may be spent for each 
2.13 	purpose are specified in the following 
2.14 	subdivisions.

2.15	Subd. 2.Business and Community Development
 		693,290,000
		122,988,000

2.16	Appropriations by Fund
	
2.17	General
	691,240,000
	120,938,000
	
2.18	Remediation
	700,000
	700,000
	
2.19
2.20	Workforce 
Development
	1,350,000
	1,350,000
	
2.21 	(a) $1,787,000 each year is for the greater 
2.22 	Minnesota business development public 
2.23 	infrastructure grant program under Minnesota 
2.24 	Statutes, section 116J.431. This appropriation 
2.25 	is available until June 30, 2027.
2.26 	(b) $6,425,000 each year is for the small 
2.27 	business partnership program under Minnesota 
2.28 	Statutes, section 116J.8746. In fiscal year 2026 
2.29 	and beyond, the base amount is $4,679,000.
2.30 	(c) $1,772,000 each year is for contaminated 
2.31 	site cleanup and development grants under 
2.32 	Minnesota Statutes, sections 116J.551 to 
2.33 	116J.558. This appropriation is available until 
2.34 	expended.
3.1 	(d) $700,000 each year is from the remediation 
3.2 	fund for contaminated site cleanup and 
3.3 	development grants under Minnesota Statutes, 
3.4 	sections 116J.551 to 116J.558. This 
3.5 	appropriation is available until expended.
3.6 	(e) $389,000 each year is for the Center for 
3.7 	Rural Policy and Development. In fiscal year 
3.8 	2026 and beyond, the base amount is 
3.9 	$139,000.
3.10 	(f) $25,000 each year is for the administration 
3.11 	of state aid for the Destination Medical Center 
3.12 	under Minnesota Statutes, sections 469.40 to 
3.13 	469.47.
3.14 	(g) $875,000 each year is for the host 
3.15 	community economic development program 
3.16 	established in Minnesota Statutes, section 
3.17 	116J.548.
3.18 	(h)(1) $1,500,000 each year is for grants to 
3.19 	local communities to increase the number of 
3.20 	quality child care providers to support 
3.21 	economic development. This appropriation is 
3.22 	available through June 30, 2025. Fifty percent 
3.23 	of grant funds must go to communities located 
3.24 	outside the seven-county metropolitan area as 
3.25 	defined in Minnesota Statutes, section 
3.26 	473.121, subdivision 2.
3.27 	(2) Grant recipients must obtain a 50 percent 
3.28 	nonstate match to grant funds in either cash 
3.29 	or in-kind contribution, unless the 
3.30 	commissioner waives the requirement. Grant 
3.31 	funds available under this subdivision must 
3.32 	be used to implement projects to reduce the 
3.33 	child care shortage in the state, including but 
3.34 	not limited to funding for child care business 
4.1 	start-ups or expansion, training, facility 
4.2 	modifications, direct subsidies or incentives 
4.3 	to retain employees, or improvements required 
4.4 	for licensing and assistance with licensing and 
4.5 	other regulatory requirements. In awarding 
4.6 	grants, the commissioner must give priority 
4.7 	to communities that have demonstrated a 
4.8 	shortage of child care providers.
4.9 	(3) Within one year of receiving grant funds, 
4.10 	grant recipients must report to the 
4.11 	commissioner on the outcomes of the grant 
4.12 	program, including but not limited to the 
4.13 	number of new providers, the number of 
4.14 	additional child care provider jobs created, the 
4.15 	number of additional child care slots, and the 
4.16 	amount of cash and in-kind local funds 
4.17 	invested. Within one month of all grant 
4.18 	recipients reporting on program outcomes, the 
4.19 	commissioner must report the grant recipients' 
4.20 	outcomes to the chairs and ranking minority 
4.21 	members of the legislative committees with 
4.22 	jurisdiction over early learning, child care, and 
4.23 	economic development.
4.24 	(i) $1,000,000 each year is for a grant to the 
4.25 	Minnesota Initiative Foundations. This 
4.26 	appropriation is available until June 30, 2027. 
4.27 	The Minnesota Initiative Foundations must 
4.28 	use grant funds under this section to:
4.29 	(1) facilitate planning processes for rural 
4.30 	communities resulting in a community solution 
4.31 	action plan that guides decision making to 
4.32 	sustain and increase the supply of quality child 
4.33 	care in the region to support economic 
4.34 	development;
5.1 	(2) engage the private sector to invest local 
5.2 	resources to support the community solution 
5.3 	action plan and ensure quality child care is a 
5.4 	vital component of additional regional 
5.5 	economic development planning processes;
5.6 	(3) provide locally based training and technical 
5.7 	assistance to rural child care business owners 
5.8 	individually or through a learning cohort. 
5.9 	Access to financial and business development 
5.10 	assistance must prepare child care businesses 
5.11 	for quality engagement and improvement by 
5.12 	stabilizing operations, leveraging funding from 
5.13 	other sources, and fostering business acumen 
5.14 	that allows child care businesses to plan for 
5.15 	and afford the cost of providing quality child 
5.16 	care; and
5.17 	(4) recruit child care programs to participate 
5.18 	in quality rating and improvement 
5.19 	measurement programs. The Minnesota 
5.20 	Initiative Foundations must work with local 
5.21 	partners to provide low-cost training, 
5.22 	professional development opportunities, and 
5.23 	continuing education curricula. The Minnesota 
5.24 	Initiative Foundations must fund, through local 
5.25 	partners, an enhanced level of coaching to 
5.26 	rural child care providers to obtain a quality 
5.27 	rating through measurement programs.
5.28 	(j) $8,000,000 each year is for the Minnesota 
5.29 	job creation fund under Minnesota Statutes, 
5.30 	section 116J.8748. Of this amount, the 
5.31 	commissioner of employment and economic 
5.32 	development may use up to three percent for 
5.33 	administrative expenses. This appropriation 
5.34 	is available until expended.
6.1 	(k) $12,370,000 each year is for the Minnesota 
6.2 	investment fund under Minnesota Statutes, 
6.3 	section 116J.8731. Of this amount, the 
6.4 	commissioner of employment and economic 
6.5 	development may use up to three percent for 
6.6 	administration and monitoring of the program. 
6.7 	This appropriation is available until expended. 
6.8 	Notwithstanding Minnesota Statutes, section 
6.9 	116J.8731, money appropriated to the 
6.10 	commissioner for the Minnesota investment 
6.11 	fund may be used for the redevelopment 
6.12 	program under Minnesota Statutes, sections 
6.13 	116J.575 and 116J.5761, at the discretion of 
6.14 	the commissioner. Grants under this paragraph 
6.15 	are not subject to the grant amount limitation 
6.16 	under Minnesota Statutes, section 116J.8731.
6.17 	(l) $2,246,000 each year is for the 
6.18 	redevelopment program under Minnesota 
6.19 	Statutes, sections 116J.575 and 116J.5761.
6.20 	(m) $1,000,000 each year is for the Minnesota 
6.21 	emerging entrepreneur loan program under 
6.22 	Minnesota Statutes, section 116M.18. Funds 
6.23 	available under this paragraph are for transfer 
6.24 	into the emerging entrepreneur program 
6.25 	special revenue fund account created under 
6.26 	Minnesota Statutes, chapter 116M, and are 
6.27 	available until expended. Of this amount, up 
6.28 	to four percent is for administration and 
6.29 	monitoring of the program.
6.30 	(n) $325,000 each year is for the Minnesota 
6.31 	Film and TV Board. The appropriation each 
6.32 	year is available only upon receipt by the 
6.33 	board of $1 in matching contributions of 
6.34 	money or in-kind contributions from nonstate 
6.35 	sources for every $3 provided by this 
7.1 	appropriation, except that each year up to 
7.2 	$50,000 is available on July 1 even if the 
7.3 	required matching contribution has not been 
7.4 	received by that date.
7.5 	(o) $12,000 each year is for a grant to the 
7.6 	Upper Minnesota Film Office.
7.7 	(p) $500,000 each year is for a grant to the 
7.8 	Minnesota Film and TV Board for the film 
7.9 	production jobs program under Minnesota 
7.10 	Statutes, section 116U.26. This appropriation 
7.11 	is available until June 30, 2027.
7.12 	(q) $4,195,000 each year is for the Minnesota 
7.13 	job skills partnership program under 
7.14 	Minnesota Statutes, sections 116L.01 to 
7.15 	116L.17. If the appropriation for either year 
7.16 	is insufficient, the appropriation for the other 
7.17 	year is available. This appropriation is 
7.18 	available until expended.
7.19 	(r) $1,350,000 each year from the workforce 
7.20 	development fund is for jobs training grants 
7.21 	under Minnesota Statutes, section 116L.41.
7.22 	(s) $2,500,000 each year is for Launch 
7.23 	Minnesota. This appropriation is available 
7.24 	until June 30, 2027. The base in fiscal year 
7.25 	2026 is $0. Of this amount:
7.26 	(1) $1,500,000 each year is for innovation 
7.27 	grants to eligible Minnesota entrepreneurs or 
7.28 	start-up businesses to assist with their 
7.29 	operating needs;
7.30 	(2) $500,000 each year is for administration 
7.31 	of Launch Minnesota; and
7.32 	(3) $500,000 each year is for grantee activities 
7.33 	at Launch Minnesota.
8.1 	(t) $250,000 each year is for the publication, 
8.2 	dissemination, and use of labor market 
8.3 	information under Minnesota Statutes, section 
8.4 	116J.401.
8.5 	(u) $500,000 each year is for the airport 
8.6 	infrastructure renewal (AIR) grant program 
8.7 	under Minnesota Statutes, section 116J.439. 
8.8 	In awarding grants with this appropriation, the 
8.9 	commissioner must prioritize eligible 
8.10 	applicants that did not receive a grant pursuant 
8.11 	to the appropriation in Laws 2019, First 
8.12 	Special Session chapter 7, article 1, section 2, 
8.13 	subdivision 2, paragraph (q).
8.14 	(v) $350,000 each year is for administration 
8.15 	of the community energy transition office.
8.16 	(w) $500,000,000 in the first year is for 
8.17 	providing businesses with matching funds 
8.18 	required by federal programs. This 
8.19 	appropriation is available until spent. Of this 
8.20 	amount:
8.21 	(1) $100,000,000 is to match no less than 
8.22 	$100,000,000 in federal funds provided by 
8.23 	Public Law 117-328 to establish a campus for 
8.24 	biomanufacturing pilot-scale testing and 
8.25 	commercialization, including site acquisition 
8.26 	and development;
8.27 	(2) $100,000,000 is to match no less than 
8.28 	$100,000,000 in federal funds provided by 
8.29 	Public Law 117-328 for economic 
8.30 	development projects that expand Minnesota's 
8.31 	economy and job creation; and
8.32 	(3) $300,000,000 is to match no less than 
8.33 	$300,000,000 in federal funds provided by 
8.34 	Public Law 117-167 for microelectronic 
9.1 	manufacturing facilities and workforce 
9.2 	development.
9.3 	(x) $1,250,000 each year is to hire, train, and 
9.4 	deploy small business navigators in 
9.5 	communities and locations throughout the state 
9.6 	to assist small businesses and entrepreneurs, 
9.7 	especially historically underserved small 
9.8 	businesses and entrepreneurs, in accessing 
9.9 	state, federal, local, and private small business 
9.10 	assistance programs. Of this amount, $500,000 
9.11 	must be used to improve the agency's digital 
9.12 	navigation and information services for small 
9.13 	businesses and entrepreneurs. In fiscal year 
9.14 	2026 and beyond, the base amount is 
9.15 	$1,000,000.
9.16 	(y) $500,000 each year is for the Office of 
9.17 	Child Care Community Partnerships. Of this 
9.18 	amount:
9.19 	(1) $450,000 each year is for administration 
9.20 	of the Office of Child Care Community 
9.21 	Partnerships; and
9.22 	(2) $50,000 each year is for the Labor Market 
9.23 	Information Office to conduct research and 
9.24 	analysis related to the child care industry.
9.25 	(z) $5,000,000 in the first year is for a grant 
9.26 	to the Bloomington Port Authority to provide 
9.27 	funding for the Expo 2027 host organization. 
9.28 	The Bloomington Port Authority must enter 
9.29 	into an agreement with the host organization 
9.30 	over the use of funds, which may be used for 
9.31 	activities, including but not limited to 
9.32 	finalizing the community dossier and staffing 
9.33 	the host organization as well as infrastructure 
9.34 	design and planning, financial modeling, 
10.1 	development planning and coordination of 
10.2 	both real estate and public private partnerships, 
10.3 	and reimbursement of the Bloomington Port 
10.4 	Authority for costs incurred. In selecting 
10.5 	vendors and exhibitors for Expo 2027, the host 
10.6 	organization shall prioritize outreach to, 
10.7 	collaboration with, and inclusion of businesses 
10.8 	that are majority owned by people of color, 
10.9 	women, and people with disabilities. The host 
10.10 	organization and the Bloomington Port 
10.11 	Authority may be reimbursed for expenses 90 
10.12 	days prior to encumbrance. This appropriation 
10.13 	is contingent on approval of the project by the 
10.14 	Bureau International des Expositions.
10.15 	(aa) $500,000 each year is for grants to small 
10.16 	business development centers under Minnesota 
10.17 	Statutes, section 116J.68. Money made 
10.18 	available under this paragraph may be used to 
10.19 	match funds under the federal Small Business 
10.20 	Development Center (SBDC) program under 
10.21 	United States Code, title 15, section 648, to 
10.22 	provide consulting and technical services or 
10.23 	to build additional SBDC network capacity to 
10.24 	serve entrepreneurs and small businesses.
10.25 	(bb) $1,500,000 each year is for deposit in the 
10.26 	community wealth-building account in the 
10.27 	special revenue fund. Of this amount, up to 
10.28 	five percent is for administration and 
10.29 	monitoring of the community wealth-building 
10.30 	grant program under Minnesota Statutes, 
10.31 	section 116J.9925.
10.32 	(cc) $4,000,000 in the first year and 
10.33 	$1,000,000 in the second year are for grants 
10.34 	to the Neighborhood Development Center. 
11.1 	This is a onetime appropriation. Of these 
11.2 	amounts:
11.3 	(1) $750,000 each year is for small business 
11.4 	programs, including training, lending, business 
11.5 	services, and real estate programming;
11.6 	(2) $250,000 each year is for technical 
11.7 	assistance activities for partners located 
11.8 	outside the seven-county metropolitan area, 
11.9 	as defined in Minnesota Statutes, section 
11.10 	473.121, subdivision 2;
11.11 	(3) $1,000,000 in the first year is for 
11.12 	development of permanently affordable, 
11.13 	concentrated commercial space and 
11.14 	wraparound business services outside the 
11.15 	seven-county metropolitan area, as defined in 
11.16 	Minnesota Statutes, section 473.121, 
11.17 	subdivision 2; and
11.18 	(4) $2,000,000 in the first year is for high-risk, 
11.19 	character-based loan capital for nonrecourse 
11.20 	loans to be used to leverage at least 
11.21 	$10,000,000 in recourse lending capital.
11.22 	(dd)(1) $5,000,000 in the first year is for a 
11.23 	grant to the Center for Economic Inclusion for 
11.24 	strategic, data-informed investments in job 
11.25 	creation strategies that respond to the needs 
11.26 	of underserved populations statewide. This 
11.27 	may include pay-for-performance contracts 
11.28 	with nonprofit organizations to provide 
11.29 	outreach, training, and support services for 
11.30 	dislocated and chronically underemployed 
11.31 	people, as well as forgivable loans, 
11.32 	revenue-based financing, and equity 
11.33 	investments for entrepreneurs with barriers to 
11.34 	growth. Of this amount, up to ten percent may 
12.1 	be used for the center's technical assistance 
12.2 	and administrative costs. This appropriation 
12.3 	is available until June 30, 2025.
12.4 	(2) By January 15, 2026, the Center for 
12.5 	Economic Inclusion shall submit a report on 
12.6 	the use of grant funds, including any loans 
12.7 	made, to the legislative committees with 
12.8 	jurisdiction over economic development.
12.9 	(ee) $4,000,000 in the first year is for the 
12.10 	Canadian border counties economic relief 
12.11 	program. Of this amount, $1,000,000 is for 
12.12 	Tribal economic development. This 
12.13 	appropriation is available until June 30, 2025.
12.14 	(ff) $10,000,000 in the first year is for the 
12.15 	targeted community capital project grant 
12.16 	program under Minnesota Statutes, section 
12.17 	116J.9924.
12.18 	(gg) $13,550,000 in the first year is for deposit 
12.19 	in the emerging developer fund account in the 
12.20 	special revenue fund. Of this amount, up to 
12.21 	five percent is for the administration and 
12.22 	monitoring of the emerging developer fund 
12.23 	program under Minnesota Statutes, section 
12.24 	116J.9926.
12.25 	(hh) $2,000,000 in the first year is for a grant 
12.26 	to African Economic Development Solutions 
12.27 	for a loan fund that must address pervasive 
12.28 	economic inequities by supporting business 
12.29 	ventures of entrepreneurs in the African 
12.30 	immigrant community. This appropriation is 
12.31 	available until June 30, 2026.
12.32 	(ii) $500,000 each year is for grants to 
12.33 	Enterprise Minnesota, Inc., to directly invest 
12.34 	in Minnesota manufacturers for the small 
13.1 	business growth acceleration program under 
13.2 	Minnesota Statutes, section 116O.115. This 
13.3 	is a onetime appropriation.
13.4 	(jj)(1) $1,500,000 each year is for grants to 
13.5 	MNSBIR, Inc., to support moving scientific 
13.6 	excellence and technological innovation from 
13.7 	the lab to the market for start-ups and small 
13.8 	businesses by securing federal research and 
13.9 	development funding. The purpose of the grant 
13.10 	is to build a strong Minnesota economy and 
13.11 	stimulate the creation of novel products, 
13.12 	services, and solutions in the private sector; 
13.13 	strengthen the role of small business in 
13.14 	meeting federal research and development 
13.15 	needs; increase the commercial application of 
13.16 	federally supported research results; and 
13.17 	develop and increase the Minnesota 
13.18 	workforce, especially by fostering and 
13.19 	encouraging participation by small businesses 
13.20 	owned by women and people who are Black, 
13.21 	Indigenous, or people of color. This is a 
13.22 	onetime appropriation.
13.23 	(2) MNSBIR, Inc., shall use the grant money 
13.24 	to be the dedicated resource for federal 
13.25 	research and development for small businesses 
13.26 	of up to 500 employees statewide to support 
13.27 	research and commercialization of novel ideas, 
13.28 	concepts, and projects into cutting-edge 
13.29 	products and services for worldwide economic 
13.30 	impact. MNSBIR, Inc., shall use grant money 
13.31 	to:
13.32 	(i) assist small businesses in securing federal 
13.33 	research and development funding, including 
13.34 	the Small Business Innovation Research and 
13.35 	Small Business Technology Transfer programs 
14.1 	and other federal research and development 
14.2 	funding opportunities;
14.3 	(ii) support technology transfer and 
14.4 	commercialization from the University of 
14.5 	Minnesota, Mayo Clinic, and federal 
14.6 	laboratories;
14.7 	(iii) partner with large businesses;
14.8 	(iv) conduct statewide outreach, education, 
14.9 	and training on federal rules, regulations, and 
14.10 	requirements;
14.11 	(v) assist with scientific and technical writing;
14.12 	(vi) help manage federal grants and contracts; 
14.13 	and
14.14 	(vii) support cost accounting and sole-source 
14.15 	procurement opportunities.
14.16 	(kk) $2,000,000 in the first year is for a grant 
14.17 	to African Career, Education, and Resource, 
14.18 	Inc., for operational infrastructure and 
14.19 	technical assistance to small businesses. This 
14.20 	appropriation is available until June 30, 2025.
14.21 	(ll) $4,000,000 in the first year is for a grant 
14.22 	to the African Development Center to provide 
14.23 	loans to purchase commercial real estate and 
14.24 	to expand organizational infrastructure. This 
14.25 	appropriation is available until June 30, 2025. 
14.26 	Of this amount:
14.27 	(1) $2,800,000 is for loans to purchase 
14.28 	commercial real estate targeted at African 
14.29 	immigrant small business owners;
14.30 	(2) $364,000 is for loan loss reserves to 
14.31 	support loan volume growth and attract 
14.32 	additional capital; and
15.1 	(3) $836,000 is for increasing organizational 
15.2 	capacity.
15.3 	(mm)(1) $375,000 each year is for grants to 
15.4 	PFund Foundation to provide grants to 
15.5 	LGBTQ+-owned small businesses and 
15.6 	entrepreneurs. Of this amount, up to ten 
15.7 	percent may be used for PFund Foundation's 
15.8 	technical assistance and administrative costs. 
15.9 	This appropriation is onetime and is available 
15.10 	until June 30, 2026. To the extent practicable, 
15.11 	money must be distributed by PFund 
15.12 	Foundation as follows:
15.13 	(i) at least 33.3 percent to racial 
15.14 	minority-owned businesses; and
15.15 	(ii) at least 33.3 percent to businesses outside 
15.16 	of the seven-county metropolitan area as 
15.17 	defined in Minnesota Statutes, section 
15.18 	473.121, subdivision 2.
15.19 	(nn) $125,000 each year is for grants to 
15.20 	Quorum to provide business support, training, 
15.21 	development, technical assistance, and related 
15.22 	activities for LGBTQ+-owned small 
15.23 	businesses that are recipients of a PFund 
15.24 	Foundation grant. Of this amount, up to ten 
15.25 	percent may be used for Quorum's technical 
15.26 	assistance and administrative costs. This 
15.27 	appropriation is onetime and is available until 
15.28 	June 30, 2026.
15.29 	(oo) $6,000,000 in the first year is for grants 
15.30 	to the Minnesota initiative foundations to 
15.31 	capitalize their revolving loan funds, which 
15.32 	address unmet financing needs of for-profit 
15.33 	business start-ups, expansions, and ownership 
15.34 	transitions; nonprofit organizations; and 
16.1 	developers of housing to support the 
16.2 	construction, rehabilitation, and conversion 
16.3 	of housing units. Of this amount:
16.4 	(1) $1,000,000 is for a grant to the Southwest 
16.5 	Initiative Foundation;
16.6 	(2) $1,000,000 is for a grant to the West 
16.7 	Central Initiative Foundation;
16.8 	(3) $1,000,000 is for a grant to the Southern 
16.9 	Minnesota Initiative Foundation;
16.10 	(4) $1,000,000 is for a grant to the Northwest 
16.11 	Minnesota Foundation;
16.12 	(5) $1,000,000 is for a grant to the Initiative 
16.13 	Foundation; and
16.14 	(6) $1,000,000 is for a grant to the Northland 
16.15 	Foundation.
16.16 	(pp) $627,000 in the first year is for a grant to 
16.17 	Community and Economic Development 
16.18 	Associates (CEDA) to provide funding for 
16.19 	economic development technical assistance 
16.20 	and economic development project grants to 
16.21 	small communities across rural Minnesota and 
16.22 	for CEDA to design, implement, market, and 
16.23 	administer specific types of basic community 
16.24 	and economic development programs tailored 
16.25 	to individual community needs. Technical 
16.26 	assistance grants shall be based on need and 
16.27 	given to communities that are otherwise 
16.28 	unable to afford these services. Of this amount, 
16.29 	up to $270,000 may be used for economic 
16.30 	development project implementation in 
16.31 	conjunction with the technical assistance 
16.32 	received.
17.1 	(qq) $3,000,000 in the first year is for a grant 
17.2 	to the Latino Economic Development Center. 
17.3 	This appropriation is available until June 30, 
17.4 	2025. Of this amount:
17.5 	(1) $1,500,000 is to assist, support, finance, 
17.6 	and launch microentrepreneurs by delivering 
17.7 	training, workshops, and one-on-one 
17.8 	consultations to businesses; and
17.9 	(2) $1,500,000 is to guide prospective 
17.10 	entrepreneurs in their start-up process by 
17.11 	introducing them to key business concepts, 
17.12 	including business start-up readiness. Grant 
17.13 	proceeds must be used to offer workshops on 
17.14 	a variety of topics throughout the year, 
17.15 	including finance, customer service, 
17.16 	food-handler training, and food-safety 
17.17 	certification. Grant proceeds may also be used 
17.18 	to provide lending to business startups.
17.19 	(rr)(1) $125,000 each year is for grants to the 
17.20 	Latino Chamber of Commerce Minnesota to 
17.21 	support the growth and expansion of small 
17.22 	businesses statewide. Funds may be used for 
17.23 	the cost of programming, outreach, staffing, 
17.24 	and supplies. This is a onetime appropriation.
17.25 	(2) By January 15, 2026, the Latino Chamber 
17.26 	of Commerce Minnesota must submit a report 
17.27 	to the legislative committees with jurisdiction 
17.28 	over economic development that details the 
17.29 	use of grant funds and the grant's economic 
17.30 	impact.
17.31 	(ss)(1) $7,500,000 in the first year is for a 
17.32 	grant to the Metropolitan Economic 
17.33 	Development Association (MEDA) for 
17.34 	statewide business development and assistance 
18.1 	services to minority-owned businesses. Of this 
18.2 	amount:
18.3 	(i) $5,000,000 is for a revolving loan fund to 
18.4 	provide additional minority-owned businesses 
18.5 	with access to capital; and
18.6 	(ii) $2,500,000 is for operating support 
18.7 	activities related to business development and 
18.8 	assistance services for minority business 
18.9 	enterprises.
18.10 	(2) By February 1, 2025, MEDA shall report 
18.11 	to the commissioner and the legislative 
18.12 	committees with jurisdiction over economic 
18.13 	development on the use of grant funds and 
18.14 	grant outcomes.
18.15 	(tt) $175,000 in the first year is for a grant to 
18.16 	the city of South St. Paul for repurposing the 
18.17 	1927 American Legion Memorial Library after 
18.18 	the property is no longer used as a library. This 
18.19 	appropriation is available until the project is 
18.20 	completed or abandoned, subject to Minnesota 
18.21 	Statutes, section 16A.642.
18.22 	(uu) $62,934,000 each year is for the 
18.23 	empowering enterprise program. This is a 
18.24 	onetime appropriation, of which:
18.25 	(1) at least $31,000,000 each year is for a grant 
18.26 	to the city of Minneapolis;
18.27 	(2) $11,000,000 each year is for a grant to the 
18.28 	city of St. Paul;
18.29 	(3) $5,425,000 each year is for a grant to the 
18.30 	Northside Economic Opportunity Network;
18.31 	(4) $5,425,000 each year is for a grant to the 
18.32 	Lake Street Council;
19.1 	(5) $5,425,000 each year is for a grant to the 
19.2 	Midway Chamber of Commerce; and
19.3 	(6) $250,000 each year is for a grant to the 
19.4 	Asian Economic Development Association.
19.5 	(vv) $250,000 in the first year is for a grant to 
19.6 	LatinoLEAD for organizational 
19.7 	capacity-building.
19.8 	(ww) $200,000 in the first year is for a grant 
19.9 	to the Neighborhood Development Center for 
19.10 	small business competitive grants to software 
19.11 	companies working to improve employee 
19.12 	engagement and workplace culture and to 
19.13 	reduce turnover.
19.14 	(xx) $2,000,000 in the first year and 
19.15 	$1,000,000 in the second year are for grants 
19.16 	to the Local Initiatives Support Corporation. 
19.17 	This is a onetime appropriation. Of these 
19.18 	amounts:
19.19 	(1) $200,000 in the first year and $100,000 in 
19.20 	the second year are for predevelopment grants 
19.21 	and technical assistance in support of real 
19.22 	estate development in areas negatively affected 
19.23 	by civil unrest; and
19.24 	(2) $1,800,000 in the first year and $900,000 
19.25 	in the second year are for capitalizing a loan 
19.26 	program for the development and construction 
19.27 	of commercial and residential projects in areas 
19.28 	negatively affected by civil unrest. A priority 
19.29 	for use of these funds shall be participants in 
19.30 	programs for emerging developers.
19.31 	(yy) $1,000,000 in fiscal year 2024 is for a 
19.32 	grant to WomenVenture to support child care 
19.33 	providers through business training and shared 
19.34 	services programs and to create materials that 
20.1 	could be used, free of charge, for start-up, 
20.2 	expansion, and operation of child care 
20.3 	businesses statewide, with the goal of helping 
20.4 	new and existing child care businesses in 
20.5 	underserved areas of the state become 
20.6 	profitable and sustainable. The commissioner 
20.7 	shall report data on outcomes and 
20.8 	recommendations for replication of this 
20.9 	training program throughout Minnesota to the 
20.10 	governor and relevant committees of the 
20.11 	legislature by December 15, 2025. This is a 
20.12 	onetime appropriation and is available until 
20.13 	June 20, 2025.

20.14	Subd. 3.Minnesota Trade Office
 		$2,242,000
		$2,242,000
	
20.15 	(a) $300,000 each year is for the STEP grants 
20.16 	in Minnesota Statutes, section 116J.979.
20.17 	(b) $180,000 each year is for the Invest 
20.18 	Minnesota marketing initiative under 
20.19 	Minnesota Statutes, section 116J.9781.
20.20 	(c) $270,000 each year is for the Minnesota 
20.21 	Trade Offices under Minnesota Statutes, 
20.22 	section 116J.978.

20.23	Sec. 3. EXPLORE MINNESOTA TOURISM
 	$
	26,307,000
	$
	21,169,000
	
20.24 	(a) $500,000 each year must be matched from 
20.25 	nonstate sources to develop maximum private 
20.26 	sector involvement in tourism. Each $1 of state 
20.27 	incentive must be matched with $6 of private 
20.28 	sector money. "Matched" means revenue to 
20.29 	the state or documented in-kind, soft match, 
20.30 	or cash expenditures directly expended to 
20.31 	support Explore Minnesota Tourism under 
20.32 	section 116U.05. The incentive in fiscal year 
20.33 	2024 is based on fiscal year 2023 private 
20.34 	sector contributions. The incentive in fiscal 
21.1 	year 2025 is based on fiscal year 2024 private 
21.2 	sector contributions. This incentive is ongoing.
21.3 	(b) $5,900,000 each year is for the 
21.4 	development of new initiatives for Explore 
21.5 	Minnesota Tourism. This is a onetime 
21.6 	appropriation and of this amount:
21.7 	(1) $3,000,000 each year is for competitive 
21.8 	grants for large-scale sporting and other major 
21.9 	events;
21.10 	(2) $1,100,000 each year is for grants to 
21.11 	Minnesota's 11 Tribal Nations to promote and 
21.12 	support new tourism opportunities for Tribal 
21.13 	Nations;
21.14 	(3) $1,000,000 each year is to expand 
21.15 	diversity, equity, inclusion, and accessibility 
21.16 	through tourism marketing;
21.17 	(4) $625,000 each year is for the tourism and 
21.18 	hospitality industry and the Governor's Opener 
21.19 	events;
21.20 	(5) $88,000 each year is to develop new 
21.21 	resources and increase engagement for the 
21.22 	tourism industry; and
21.23 	(6) $87,000 each year is to develop a 
21.24 	long-term sustainability plan for tourism.
21.25 	(c)(1) $2,000,000 in the first year is for a 
21.26 	tourism industry recovery grant program to 
21.27 	provide grants to organizations, Tribal 
21.28 	governments, underserved community groups, 
21.29 	and communities to accelerate the recovery of 
21.30 	the state's tourism industry, with preference 
21.31 	for applicants who have not previously 
21.32 	received grants. Grant money may be used to 
21.33 	support meetings, conventions and group 
22.1 	business, multicommunity and high-visibility 
22.2 	events, and tourism marketing. Explore 
22.3 	Minnesota Tourism must accept grant 
22.4 	applications for at least five business days 
22.5 	beginning at 8:00 a.m. on the first business 
22.6 	day and, if total applications exceed 
22.7 	$10,000,000, the grants must be awarded to 
22.8 	eligible applicants at random until the funding 
22.9 	is exhausted. Of this amount:
22.10 	(i) at least 25 percent must go to groups in 
22.11 	Hennepin and Ramsey counties;
22.12 	(ii) at least 25 percent must go to groups in 
22.13 	Anoka, Carver, Dakota, Scott, and Washington 
22.14 	counties;
22.15 	(iii) at least 25 percent must go to groups 
22.16 	outside of the metropolitan area, as defined 
22.17 	under Minnesota Statutes, section 473.121, 
22.18 	subdivision 2;
22.19 	(iv) at least 25 percent must be distributed as 
22.20 	small grants of no more than $10,000 each for 
22.21 	tourism promotional activities; and
22.22 	(v) up to three percent may be used for 
22.23 	program administration, including promotional 
22.24 	activities and reporting.
22.25 	(2) Explore Minnesota Tourism must submit 
22.26 	a preliminary report by November 1, 2023, 
22.27 	and a final report by January 1, 2025, to the 
22.28 	legislative committees with jurisdiction over 
22.29 	tourism that detail the use of grant funds.
22.30 	(d) Money for marketing grants is available 
22.31 	either year of the biennium. Unexpended grant 
22.32 	money from the first year is available in the 
22.33 	second year.

23.1 	ARTICLE 2
23.2 	ECONOMIC DEVELOPMENT POLICY

23.3 	Section 1. [116J.418] OFFICE OF CHILD CARE COMMUNITY PARTNERSHIPS.
23.4 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
23.5 	subdivision have the meanings given them.
23.6 	(b) "Child care" means the care of children while parents or guardians are at work or 
23.7 	absent for another reason.
23.8 	(c) "Local unit of government" has the meaning given in section 116G.03, subdivision 
23.9 	3.
23.10 	(d) "Office" means the Office of Child Care Community Partnerships established in 
23.11 	subdivision 2, paragraph (a).
23.12 		Subd. 2.Office established; purpose. (a) An Office of Child Care Community 
23.13 	Partnerships is established within the Department of Employment and Economic 
23.14 	Development. The department may employ a director and staff necessary to carry out the 
23.15 	office's duties under subdivision 4.
23.16 	(b) The purpose of the office is to support child care businesses within the state in order 
23.17 	to:
23.18 	(1) increase the quantity of quality child care available; and
23.19 	(2) improve accessibility to child care for underserved communities and populations.
23.20 		Subd. 3.Organization. The office shall consist of a director of the Office of Child Care 
23.21 	Community Partnerships, as well as any staff necessary to carry out the office's duties under 
23.22 	subdivision 4.
23.23 		Subd. 4.Duties. The office shall have the power and duty to:
23.24 	(1) coordinate with state, regional, local, and private entities to promote investment in 
23.25 	increasing the quantity of quality child care in Minnesota;
23.26 	(2) coordinate with other agencies including but not limited to Minnesota Management 
23.27 	and Budget, the Department of Human Services, and the Department of Education to develop, 
23.28 	recommend, and implement solutions to increase the quantity of quality child care openings;
23.29 	(3) administer the child care economic development grant program and other 
23.30 	appropriations to the department for this purpose;
23.31 	(4) monitor the child care business development efforts of other states and countries;
24.1 	(5) provide support to the governor's Children's Cabinet;
24.2 	(6) provide an annual report, as required by subdivision 5; and
24.3 	(7) perform any other activities consistent with the office's purpose.
24.4 		Subd. 5.Reporting. (a) Beginning January 15, 2024, and each year thereafter, the Office 
24.5 	of Child Care Community Partnerships shall report to the legislative committees with 
24.6 	jurisdiction over child care policy and finance on the office's activities during the previous 
24.7 	year.
24.8 	(b) The report shall contain, at a minimum:
24.9 	(1) an analysis of the current access to child care within the state;
24.10 	(2) an analysis of the current shortage of child care workers within the state;
24.11 	(3) a summary of the office's activities;
24.12 	(4) any proposed legislative and policy initiatives; and
24.13 	(5) any other information requested by the legislative committees with jurisdiction over 
24.14 	child care, or that the office deems necessary.
24.15 	(c) The report may be submitted electronically and is subject to section 3.195, subdivision 
24.16 	1.

24.17 	Sec. 2. [116J.681] SMALL BUSINESS NAVIGATORS.
24.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
24.19 	the meanings given.
24.20 	(b) "Commissioner" means the commissioner of employment and economic development.
24.21 	(c) "Small business" has the meaning given in section 645.445.
24.22 	(d) "Underserved" means Black, Indigenous, people of color, veterans, people with 
24.23 	disabilities, rural Minnesotans, and low-income individuals.
24.24 		Subd. 2.Generally. Small business navigators must work with small businesses and 
24.25 	entrepreneurs to help navigate state programs, as well as programs managed by 
24.26 	nongovernmental partners and other public and private organizations. The purpose of small 
24.27 	business navigators is to connect small businesses and entrepreneurs with the services needed 
24.28 	to be successful.
24.29 		Subd. 3.Staffing. Staff of small business navigators serve in the classified service of 
24.30 	the state and operate as part of the department's Small Business Assistance Office.
25.1 		Subd. 4.Commissioner. The commissioner shall develop and implement training 
25.2 	materials and reporting and evaluation procedures for the activities of small business 
25.3 	navigators.
25.4 		Subd. 5.Duties. Small business navigators shall:
25.5 	(1) provide information and direction to small businesses and entrepreneurs in a timely, 
25.6 	accurate, and comprehensive manner, connecting them with appropriate assistance services 
25.7 	from the state and other governmental and nongovernmental organizations;
25.8 	(2) build relationships with and provide targeted outreach to historically underserved 
25.9 	populations and communities;
25.10 	(3) provide for the delivery of information and assistance, including but not limited to 
25.11 	the use of media, in a culturally appropriate manner that accommodates businesses and 
25.12 	entrepreneurs with limited English proficiency;
25.13 	(4) ensure the availability of small business navigators and materials in all media to 
25.14 	persons with physical disabilities; and
25.15 	(5) coordinate with and augment the services and outreach of the agency's Small Business 
25.16 	Assistance Office, Small Business Development Center, Office of Small Business 
25.17 	Partnerships, and Launch Minnesota.

25.18 	Sec. 3. Minnesota Statutes 2022, section 116J.871, subdivision 1, is amended to read:
25.19 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
25.20 	the meanings given them.
25.21 	(b) "Economic development" means financial assistance provided to a person directly 
25.22 	or to a local unit of government or nonprofit organization on behalf of a person who is 
25.23 	engaged in the manufacture or sale of goods and services. Economic development does not 
25.24 	include (1) financial assistance for rehabilitation of existing housing or, (2) financial 
25.25 	assistance for new housing construction in which total financial assistance at a single project 
25.26 	site is less than $100,000, or (3) financial assistance for detached single-family affordable 
25.27 	homeownership units in which the single project site consists of fewer than five units.
25.28 	(c) "Financial assistance" means (1) a grant awarded by a state agency for economic 
25.29 	development related purposes if a single business receives $200,000 or more of the grant 
25.30 	proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for 
25.31 	economic development related purposes if a single business receives $500,000 or more of 
25.32 	the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under chapter 
26.1 	297A where the tax reduction, credit, or abatement applies to a geographic area smaller 
26.2 	than the entire state and was granted for economic development related purposes. Financial 
26.3 	assistance does not include payments by the state of aids and credits under chapter 273 or 
26.4 	477A to a political subdivision.
26.5 	(d) "Project site" means the location where improvements are made that are financed in 
26.6 	whole or in part by the financial assistance; or the location of employees that receive financial 
26.7 	assistance in the form of employment and training services as defined in section 116L.19, 
26.8 	subdivision 4, or customized training from a technical college.
26.9 	(e) "State agency" means any agency defined under section 16B.01, subdivision 2, 
26.10 	Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

26.11 	Sec. 4. Minnesota Statutes 2022, section 116J.871, subdivision 2, is amended to read:
26.12 		Subd. 2.Prevailing wage required. (a) A state agency may provide financial assistance 
26.13 	to a person only if the person receiving or benefiting from the financial assistance certifies 
26.14 	to the commissioner of labor and industry that laborers and mechanics at the project site 
26.15 	during construction, installation, remodeling, and repairs for which the financial assistance 
26.16 	was provided will be paid the prevailing wage rate as defined in section 177.42, subdivision 
26.17 	6, and be subject to the requirements and enforcement provisions of sections 177.27, 177.30, 
26.18 	177.32, 177.41 to 177.435, and 177.45.
26.19 	(b) For the purposes of a person subject to paragraph (a) who is required to comply with 
26.20 	section 177.30, paragraph (a), clauses (6) and (7), the state agency awarding the financial 
26.21 	assistance is considered the contracting authority and the project is considered a public 
26.22 	works project. The person receiving or benefiting from the financial assistance shall notify 
26.23 	all employers on the project of the record keeping and reporting requirements of section 
26.24 	177.30, paragraph (a), clauses (6) and (7). Each employer shall submit the required 
26.25 	information to the contracting authority.

26.26 	Sec. 5. [116J.8746] SMALL BUSINESS PARTNERSHIP PROGRAM.
26.27 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
26.28 	the meanings given.
26.29 	(b) "Commissioner" means the commissioner of employment and economic development.
26.30 	(c) "Eligible business" means an entity that:
26.31 	(1) is a business, commercial cooperative, employee-owned business, or commercial 
26.32 	land trust; and
27.1 	(2) is either:
27.2 	(i) located in greater Minnesota;
27.3 	(ii) in the field of high technology; or
27.4 	(iii) at least 51 percent owned by people who are either:
27.5 	(A) Black, indigenous, or people of color;
27.6 	(B) women;
27.7 	(C) immigrants;
27.8 	(D) veterans;
27.9 	(E) people with disabilities;
27.10 	(F) low-income; or
27.11 	(G) LGBTQ+.
27.12 	(d) "Program" means the small business partnership program established in this section.
27.13 		Subd. 2.Establishment. The commissioner of employment and economic development 
27.14 	shall establish a small business partnership program to make statewide grants to local and 
27.15 	regional community-based nonprofit organizations to support the start-up, growth, and 
27.16 	success of eligible businesses through the delivery of high-quality free or low-cost 
27.17 	professional business development and technical assistance services.
27.18 		Subd. 3.Grants to nonprofits. (a) Nonprofit organizations shall apply for grants using 
27.19 	a competitive process established by the commissioner.
27.20 	(b) All grants shall be made in the first year of the biennium and shall be for two years.
27.21 	(c) Up to ten percent of the grant amount may be used by the nonprofit for administrative 
27.22 	expenses.
27.23 	(d) Preference shall be given to applications from nonprofits that can demonstrate a 
27.24 	record of successful outcomes serving historically underserved communities or increasing 
27.25 	the upward economic mobility of clients.
27.26 		Subd. 4.Administration. The commissioner may use up to five percent of program 
27.27 	funds for administering and monitoring the program.
27.28 		Subd. 5.Reporting. (a) Grant recipients shall report to the commissioner each year they 
27.29 	receive grant funds. This report shall detail the use of grant funds and shall include data on 
28.1 	the number of individuals served and other measures of program impact, along with any 
28.2 	other information requested by the commissioner.
28.3 	(b) By January 15, 2025, and by January 15 each odd-numbered year thereafter, the 
28.4 	commissioner shall submit a report to the chairs and ranking minority members of the 
28.5 	committees of the house of representatives and the senate having jurisdiction over business 
28.6 	development that details the use of program funds and the program's impact. This report is 
28.7 	in addition to the reporting required under section 3.195.

28.8 	Sec. 6. Minnesota Statutes 2022, section 116J.8748, subdivision 3, is amended to read:
28.9 		Subd. 3.Minnesota job creation fund business designation; requirements. (a) To 
28.10 	receive designation as a Minnesota job creation fund business, a business must satisfy all 
28.11 	of the following conditions:
28.12 	(1) the business is or will be engaged in, within Minnesota, one of the following as its 
28.13 	primary business activity:
28.14 	(i) manufacturing;
28.15 	(ii) warehousing;
28.16 	(iii) distribution;
28.17 	(iv) information technology;
28.18 	(v) finance;
28.19 	(vi) insurance; or
28.20 	(vii) professional or technical services;
28.21 	(2) the business must not be primarily engaged in lobbying; gambling; entertainment; 
28.22 	professional sports; political consulting; leisure; hospitality; or professional services provided 
28.23 	by attorneys, accountants, business consultants, physicians, or health care consultants, or 
28.24 	primarily engaged in making retail sales to purchasers who are physically present at the 
28.25 	business's location;
28.26 	(3) the business must enter into a binding construction and job creation business subsidy 
28.27 	agreement with the commissioner to expend directly, or ensure expenditure by or in 
28.28 	partnership with a third party constructing or managing the project, at least $500,000 in 
28.29 	capital investment in a capital investment project that includes a new, expanded, or remodeled 
28.30 	facility within one year following designation as a Minnesota job creation fund business or 
28.31 	$250,000 if the project is located outside the metropolitan area as defined in section 200.02, 
29.1 	subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans, 
29.2 	women, or persons with a disability; and:
29.3 	(i) create at least ten new full-time employee positions within two years of the benefit 
29.4 	date following the designation as a Minnesota job creation fund business or five new full-time 
29.5 	employee positions within two years of the benefit date if the project is located outside the 
29.6 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
29.7 	is cumulatively owned by minorities, veterans, women, or persons with a disability; or
29.8 	(ii) expend at least $25,000,000, which may include the installation and purchase of 
29.9 	machinery and equipment, in capital investment and retain at least 200 100 employees for 
29.10 	projects located in the metropolitan area as defined in section 200.02, subdivision 24, and 
29.11 	75 or expend at least $10,000,000, which may include the installation and purchase of 
29.12 	machinery and equipment, in capital investment and retain at least 50 employees for projects 
29.13 	located outside the metropolitan area;
29.14 	(4) positions or employees moved or relocated from another Minnesota location of the 
29.15 	Minnesota job creation fund business must not be included in any calculation or determination 
29.16 	of job creation or new positions under this paragraph; and
29.17 	(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the 
29.18 	working hours of an employee for the purpose of hiring an individual to satisfy job creation 
29.19 	goals under this subdivision.
29.20 	(b) Prior to approving the proposed designation of a business under this subdivision, the 
29.21 	commissioner shall consider the following:
29.22 	(1) the economic outlook of the industry in which the business engages;
29.23 	(2) the projected sales of the business that will be generated from outside the state of 
29.24 	Minnesota;
29.25 	(3) how the business will build on existing regional, national, and international strengths 
29.26 	to diversify the state's economy;
29.27 	(4) whether the business activity would occur without financial assistance;
29.28 	(5) whether the business is unable to expand at an existing Minnesota operation due to 
29.29 	facility or land limitations;
29.30 	(6) whether the business has viable location options outside Minnesota;
29.31 	(7) the effect of financial assistance on industry competitors in Minnesota;
29.32 	(8) financial contributions to the project made by local governments; and
30.1 	(9) any other criteria the commissioner deems necessary.
30.2 	(c) Upon receiving notification of local approval under subdivision 2, the commissioner 
30.3 	shall review the determination by the local government and consider the conditions listed 
30.4 	in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local 
30.5 	area to designate a business as a Minnesota job creation fund business.
30.6 	(d) If the commissioner designates a business as a Minnesota job creation fund business, 
30.7 	the business subsidy agreement shall include the performance outcome commitments and 
30.8 	the expected financial value of any Minnesota job creation fund benefits.
30.9 	(e) The commissioner may amend an agreement once, upon request of a local government 
30.10 	on behalf of a business, only if the performance is expected to exceed thresholds stated in 
30.11 	the original agreement.
30.12 	(f) A business may apply to be designated as a Minnesota job creation fund business at 
30.13 	the same location more than once only if all goals under a previous Minnesota job creation 
30.14 	fund agreement have been met and the agreement is completed.

30.15 	Sec. 7. Minnesota Statutes 2022, section 116J.8748, subdivision 4, is amended to read:
30.16 		Subd. 4.Certification; benefits. (a) The commissioner may certify a Minnesota job 
30.17 	creation fund business as eligible to receive a specific value of benefit under paragraphs (b) 
30.18 	and (c) when the business has achieved its job creation and capital investment goals noted 
30.19 	in its agreement under subdivision 3.
30.20 	(b) A qualified Minnesota job creation fund business may be certified eligible for the 
30.21 	benefits in this paragraph for up to five years for projects located in the metropolitan area 
30.22 	as defined in section 200.02, subdivision 24, and seven years for projects located outside 
30.23 	the metropolitan area, as determined by the commissioner when considering the best interests 
30.24 	of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a), 
30.25 	clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located 
30.26 	outside the metropolitan area may be for up to seven years in length. The eligibility for the 
30.27 	following benefits begins the date the commissioner certifies the business as a qualified 
30.28 	Minnesota job creation fund business under this subdivision:
30.29 	(1) up to five percent rebate for projects located in the metropolitan area as defined in 
30.30 	section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan 
30.31 	area, on capital investment on qualifying purchases as provided in subdivision 5 with the 
30.32 	total rebate for a project not to exceed $500,000;
31.1 	(2) an award of up to $500,000 based on full-time job creation and wages paid as provided 
31.2 	in subdivision 6 with the total award not to exceed $500,000;
31.3 	(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards 
31.4 	are allowable for projects that have at least $25,000,000 in capital investment and 200 100
31.5 	new employees in the metropolitan area as defined in section 200.02, subdivision 24, and 
31.6 	75 50 new employees for projects located outside the metropolitan area;
31.7 	(4) up to $1,000,000 in capital investment rebates and up to $1,000,000 in job creation 
31.8 	awards are allowable for projects that have at least $25,000,000 in capital investment, which 
31.9 	may include the installation and purchase of machinery and equipment, and 200 100 retained 
31.10 	employees for projects located in the metropolitan area as defined in section 200.02, 
31.11 	subdivision 24, and 75or at least $10,000,000 in capital investment, which may include the 
31.12 	installation and purchase of machinery and equipment, and 50 retained employees for 
31.13 	projects located outside the metropolitan area; and
31.14 	(5) for clauses (3) and (4) only, the capital investment expenditure requirements may 
31.15 	include the installation and purchases of machinery and equipment. These expenditures are 
31.16 	not eligible for the capital investment rebate provided under subdivision 5.
31.17 	(c) The job creation award may be provided in multiple years as long as the qualified 
31.18 	Minnesota job creation fund business continues to meet the job creation goals provided for 
31.19 	in its agreement under subdivision 3 and the total award does not exceed $500,000 except 
31.20 	as provided under paragraph (b), clauses (3) and (4). Under paragraph (b) clause (4), a job 
31.21 	creation award of $2,000 per retained job may be provided one time if the qualified Minnesota 
31.22 	job creation fund business meets the minimum capital investment and retained employee 
31.23 	requirement as provided in paragraph (b), clause (4), for at least two years.
31.24 	(d) No rebates or award may be provided until the Minnesota job creation fund business 
31.25 	or a third party constructing or managing the project has at least $500,000 in capital 
31.26 	investment in the project and at least ten full-time jobs have been created and maintained 
31.27 	for at least one year or the retained employees, as provided in paragraph (b), clause (4), 
31.28 	remain for at least one year. The agreement may require additional performance outcomes 
31.29 	that need to be achieved before rebates and awards are provided. If fewer retained jobs are 
31.30 	maintained, but still above the minimum under this subdivision, the capital investment 
31.31 	award shall be reduced on a proportionate basis.
31.32 	(e) The forms needed to be submitted to document performance by the Minnesota job 
31.33 	creation fund business must be in the form and be made under the procedures specified by 
31.34 	the commissioner. The forms shall include documentation and certification by the business 
32.1 	that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66, 
32.2 	and other provisions as specified by the commissioner.
32.3 	(f) Minnesota job creation fund businesses must pay each new full-time employee added 
32.4 	pursuant to the agreement total compensation, including benefits not mandated by law, that 
32.5 	on an annualized basis is equal to at least 110 percent of the federal poverty level for a 
32.6 	family of four.
32.7 	(g) A Minnesota job creation fund business must demonstrate reasonable progress on 
32.8 	capital investment expenditures within six months following designation as a Minnesota 
32.9 	job creation fund business to ensure that the capital investment goal in the agreement under 
32.10 	subdivision 1 will be met. Businesses not making reasonable progress will not be eligible 
32.11 	for benefits under the submitted application and will need to work with the local government 
32.12 	unit to resubmit a new application and request to be a Minnesota job creation fund business. 
32.13 	Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not 
32.14 	be considered a default of the business subsidy agreement.

32.15 	Sec. 8. Minnesota Statutes 2022, section 116J.8748, subdivision 6, is amended to read:
32.16 		Subd. 6.Job creation award. (a) A qualified Minnesota job creation fund business is 
32.17 	eligible for an annual award for each new job created and maintained under subdivision 4, 
32.18 	paragraph (b), clauses (2) and (3), by the business using the following schedule: $1,000 for 
32.19 	each job position paying annual wages at least $26,000 but less than $35,000; $2,000 for 
32.20 	each job position paying at least $35,000 but less than $45,000; and $3,000 for each job 
32.21 	position paying at least $45,000 but less than $55,000; and $4,000 for each job position 
32.22 	paying at least $55,000; and as noted in the goals under the agreement provided under 
32.23 	subdivision 1. These awards are increased by $1,000 if the business is located outside the 
32.24 	metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business 
32.25 	is cumulatively owned by minorities, veterans, women, or persons with a disability.
32.26 	(b) A qualified Minnesota job creation fund business is eligible for a onetime $2,000 
32.27 	award for each job retained and maintained under subdivision 4, paragraph (b), clause (4), 
32.28 	provided that each retained job pays total compensation, including benefits not mandated 
32.29 	by law, that on an annualized basis is equal to at least 150 percent of the federal poverty 
32.30 	level for a family of four.
32.31 	(b) (c) The job creation award schedule must be adjusted annually using the percentage 
32.32 	increase in the federal poverty level for a family of four.
33.1 	(c) (d) Minnesota job creation fund businesses seeking an award credit provided under 
33.2 	subdivision 4 must submit forms and applications to the Department of Employment and 
33.3 	Economic Development as prescribed by the commissioner.

33.4 	Sec. 9. Minnesota Statutes 2022, section 116J.8748, is amended by adding a subdivision 
33.5 	to read:
33.6 		Subd. 6a.Transfer. The commissioner may transfer up to $2,000,000 of a fiscal year 
33.7 	appropriation between the Minnesota job creation fund program and the redevelopment 
33.8 	grant program to meet business demand.

33.9 	Sec. 10. [116J.8751] LAUNCH MINNESOTA.
33.10 		Subdivision 1.Establishment. Launch Minnesota is established within the Business 
33.11 	and Community Development Division of the Department of Employment and Economic 
33.12 	Development to encourage and support the development of new private sector technologies 
33.13 	and support the science and technology policies under Minnesota Statutes, section 3.222. 
33.14 	Launch Minnesota must provide entrepreneurs and emerging technology-based companies 
33.15 	business development assistance and financial assistance to spur growth.
33.16 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
33.17 	have the meanings given.
33.18 	(b) "Advisory board" means the board established under subdivision 10.
33.19 	(c) "Commissioner" means the commissioner of employment and economic development.
33.20 	(d) "Department" means the Department of Employment and Economic Development.
33.21 	(e) "Entrepreneur" means a Minnesota resident who is involved in establishing a business 
33.22 	entity and secures resources directed to its growth while bearing the risk of loss.
33.23 	(f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan 
33.24 	area as defined in Minnesota Statutes, section 473.121, subdivision 2.
33.25 	(g) "Innovative technology and business" means a new novel business model or product; 
33.26 	a derivative product incorporating new elements into an existing product; a new use for a 
33.27 	product; or a new process or method for the manufacture, use, or assessment of any product 
33.28 	or activity, patentability, or scalability. Innovative technology or business model does not 
33.29 	include locally based retail, lifestyle, or business services. The business must not be primarily 
33.30 	engaged in real estate development, insurance, banking, lending, lobbying, political 
33.31 	consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, 
34.1 	transportation, construction, ethanol production from corn, or professional services provided 
34.2 	by attorneys, accountants, business consultants, physicians, or health care consultants.
34.3 	(h) "Institution of higher education" has the meaning given in Minnesota Statutes, section 
34.4 	136A.28, subdivision 6.
34.5 	(i) "Minority group member" means a United States citizen or lawful permanent resident 
34.6 	who is Asian, Pacific Islander, Black, Hispanic, or Native American.
34.7 	(j) "Research and development" means any activity that is:
34.8 	(1) a systematic, intensive study directed toward greater knowledge or understanding 
34.9 	of the subject studies;
34.10 	(2) a systematic study directed specifically toward applying new knowledge to meet a 
34.11 	recognized need; or
34.12 	(3) a systematic application of knowledge toward the production of useful materials, 
34.13 	devices, systems and methods, including design, development and improvement of prototypes 
34.14 	and new processes to meet specific requirements.
34.15 	(k) "Start-up" means a business entity that has been in operation for less than ten years, 
34.16 	has operations in Minnesota, and is in the development stage defined as devoting substantially 
34.17 	all of its efforts to establishing a new business and either of the following conditions exists:
34.18 	(1) planned principal operations have not commenced; or
34.19 	(2) planned principal operations have commenced, but have raised at least $1,000,000 
34.20 	in equity financing.
34.21 	(l) "Technology-related assistance" means the application and utilization of 
34.22 	technological-information and technologies to assist in the development and production of 
34.23 	new technology-related products or services or to increase the productivity or otherwise 
34.24 	enhance the production or delivery of existing products or services.
34.25 	(m) "Trade association" means a nonprofit membership organization organized to promote 
34.26 	businesses and business conditions and having an election under Internal Revenue Code 
34.27 	section 501(c)(3) or 501(c)(6).
34.28 	(n) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.
34.29 		Subd. 3.Duties. The commissioner, by and through Launch Minnesota, shall:
34.30 	(1) support innovation and initiatives designed to accelerate the growth of innovative 
34.31 	technology and business start-ups in Minnesota;
35.1 	(2) in partnership with other organizations, offer classes and instructional sessions on 
35.2 	how to start an innovative technology and business start-up;
35.3 	(3) promote activities for entrepreneurs and investors regarding the state's growing 
35.4 	innovation economy;
35.5 	(4) hold events and meetings that gather key stakeholders in the state's innovation sector;
35.6 	(5) conduct outreach and education on innovation activities and related financial programs 
35.7 	available from the department and other organizations, particularly for underserved 
35.8 	communities;
35.9 	(6) interact and collaborate with statewide partners including but not limited to businesses, 
35.10 	nonprofits, trade associations, and higher education institutions;
35.11 	(7) administer an advisory board to assist with direction, grant application review, 
35.12 	program evaluation, report development, and partnerships;
35.13 	(8) accept grant applications under subdivisions 5, 6, and 7 and work with the advisory 
35.14 	board to review and prioritize the applications and provide recommendations to the 
35.15 	commissioner; and
35.16 	(9) perform other duties at the commissioner's discretion.
35.17 		Subd. 4.Administration. (a) The executive director shall:
35.18 	(1) assist the commissioner and the advisory board in performing the duties of Launch 
35.19 	Minnesota; and
35.20 	(2) comply with all state and federal program requirements, and all state and federal 
35.21 	securities and tax laws and regulations.
35.22 	(b) Launch Minnesota may occupy and lease physical space in a private coworking 
35.23 	facility that includes office space for staff and space for community engagement for training 
35.24 	entrepreneurs. The physical space leased under this paragraph is exempt from the 
35.25 	requirements in Minnesota Statutes, section 16B.24, subdivision 6.
35.26 	(c) At least three times per month, Launch Minnesota staff shall communicate with 
35.27 	organizations in greater Minnesota that have received a grant under subdivision 7. To the 
35.28 	extent possible, Launch Minnesota shall form partnerships with organizations located 
35.29 	throughout the state.
35.30 	(d) Launch Minnesota must accept grant applications under this section and provide 
35.31 	funding recommendations to the commissioner and the commissioner shall distribute grants 
35.32 	based in part on the recommendations.
36.1 		Subd. 5.Application process. (a) The commissioner shall establish the application form 
36.2 	and procedures for grants.
36.3 	(b) Upon receiving recommendations from Launch Minnesota, the commissioner is 
36.4 	responsible for evaluating all applications using evaluation criteria which shall be developed 
36.5 	by Launch Minnesota in consultation with the advisory board.
36.6 	(c) For grants under subdivision 6, priority shall be given if the applicant is:
36.7 	(1) a business or entrepreneur located in greater Minnesota; or
36.8 	(2) a business owner, individual with a disability, or entrepreneur who is a woman, 
36.9 	veteran, or minority group member.
36.10 	(d) For grants under subdivision 7, priority shall be given if the applicant is planning to 
36.11 	serve:
36.12 	(1) businesses or entrepreneurs located in greater Minnesota; or
36.13 	(2) business owners, individuals with disabilities, or entrepreneurs who are women, 
36.14 	veterans, or minority group members.
36.15 	(e) The department staff, and not Launch Minnesota staff, are responsible for awarding 
36.16 	funding, disbursing funds, and monitoring grantee performance for all grants awarded under 
36.17 	this section.
36.18 	(f) Grantees must provide matching funds by equal expenditures and grant payments 
36.19 	must be provided on a reimbursement basis after review of submitted receipts by the 
36.20 	department.
36.21 	(g) Grant applications must be accepted on a regular periodic basis by Launch Minnesota 
36.22 	and must be reviewed by Launch Minnesota and the advisory board before being submitted 
36.23 	to the commissioner with their recommendations.
36.24 		Subd. 6.Innovation grants. (a) The commissioner shall distribute innovation grants 
36.25 	under this subdivision.
36.26 	(b) The commissioner shall provide a grant of up to $35,000 to an eligible business or 
36.27 	entrepreneur for research and development expenses, direct business expenses, and the 
36.28 	purchase of technical assistance or services from public higher education institutions and 
36.29 	nonprofit entities. Research and development expenditures may include but are not limited 
36.30 	to proof of concept activities, intellectual property protection, prototype designs and 
36.31 	production, and commercial feasibility. Expenditures funded under this subdivision are not 
36.32 	eligible for the research and development tax credit under Minnesota Statutes, section 
37.1 	290.068. Direct business expenses may include rent, equipment purchases, and supplier 
37.2 	invoices. Taxes imposed by federal, state, or local government entities may not be reimbursed 
37.3 	under this paragraph. Technical assistance or services must be purchased to assist in the 
37.4 	development or commercialization of a product or service to be eligible. Each business or 
37.5 	entrepreneur may receive only one grant per biennium under this paragraph.
37.6 	(c) The commissioner shall provide a grant of up to $35,000 in Phase 1 or $50,000 in 
37.7 	Phase 2 to an eligible business or entrepreneur that, as a registered client of the Small 
37.8 	Business Innovation Research (SBIR) program, has been awarded a first time Phase 1 or 
37.9 	Phase 2 award pursuant to the SBIR or Small Business Technology Transfer (STTR) 
37.10 	programs after July 1, 2019. Each business or entrepreneur may receive only one grant per 
37.11 	biennium under this paragraph. Grants under this paragraph are not subject to the 
37.12 	requirements of subdivision 2, paragraph (k).
37.13 		Subd. 7.Entrepreneur education grants. (a) The commissioner shall make entrepreneur 
37.14 	education grants to institutions of higher education and other organizations to provide 
37.15 	educational programming to entrepreneurs and provide outreach to and collaboration with 
37.16 	businesses, federal and state agencies, institutions of higher education, trade associations, 
37.17 	and other organizations working to advance innovative technology businesses throughout 
37.18 	Minnesota.
37.19 	(b) Applications for entrepreneur education grants under this subdivision must be 
37.20 	submitted to the commissioner and evaluated by department staff other than Launch 
37.21 	Minnesota. The evaluation criteria must be developed by Launch Minnesota, in consultation 
37.22 	with the advisory board, and the commissioner, and priority must be given to an applicant 
37.23 	who demonstrates activity assisting business owners or entrepreneurs residing in greater 
37.24 	Minnesota or who are women, veterans, or minority group members.
37.25 	(c) Department staff other than Launch Minnesota staff are responsible for awarding 
37.26 	funding, disbursing funds, and monitoring grantee performance under this subdivision.
37.27 	(d) Grantees may use the grant funds to deliver the following services:
37.28 	(1) development and delivery to innovative technology businesses of industry specific 
37.29 	or innovative product or process specific counseling on issues of business formation, market 
37.30 	structure, market research and strategies, securing first mover advantage or overcoming 
37.31 	barriers to entry, protecting intellectual property, and securing debt or equity capital. This 
37.32 	counseling is to be delivered in a classroom setting or using distance media presentations;
37.33 	(2) outreach and education to businesses and organizations on the small business 
37.34 	investment tax credit program under Minnesota Statutes, section 116J.8737, the MNvest 
38.1 	crowd-funding program under Minnesota Statutes, section 80A.461, and other state programs 
38.2 	that support innovative technology business creation especially in underserved communities;
38.3 	(3) collaboration with institutions of higher education, local organizations, federal and 
38.4 	state agencies, the Small Business Development Center, and the Small Business Assistance 
38.5 	Office to create and offer educational programming and ongoing counseling in greater 
38.6 	Minnesota that is consistent with those services offered in the metropolitan area; and
38.7 	(4) events and meetings with other innovation-related organizations to inform 
38.8 	entrepreneurs and potential investors about Minnesota's growing innovation economy.
38.9 		Subd. 8.Report. (a) Launch Minnesota shall annually report by December 31 to the 
38.10 	chairs and ranking minority members of the committees of the house of representatives and 
38.11 	senate having jurisdiction over economic development policy and finance. Each report shall 
38.12 	include information on the work completed, including awards made by the department under 
38.13 	this section and progress toward transferring the activities of Launch Minnesota to an entity 
38.14 	outside of state government.
38.15 	(b) By December 31, 2024, Launch Minnesota shall provide a comprehensive transition 
38.16 	plan to the chairs and ranking minority members of the committees of the house of 
38.17 	representatives and senate having jurisdiction over economic development policy and 
38.18 	finance. The transition plan shall include: (1) a detailed strategy for the transfer of Launch 
38.19 	Minnesota activities to an entity outside of state government; (2) the projected date of the 
38.20 	transfer; and (3) the role of the state, if any, in ongoing activities of Launch Minnesota or 
38.21 	its successor entity.
38.22 		Subd. 9.Advisory board. (a) The commissioner shall establish an advisory board to 
38.23 	advise the executive director regarding the activities of Launch Minnesota, make the 
38.24 	recommendations described in this section, and develop and initiate a strategic plan for 
38.25 	transferring some activities of Launch Minnesota to a new or existing public-private 
38.26 	partnership or nonprofit organization outside of state government.
38.27 	(b) The advisory board shall consist of ten members and is governed by Minnesota 
38.28 	Statutes, section 15.059. A minimum of seven members must be from the private sector 
38.29 	representing business and at least two members but no more than three members must be 
38.30 	from government and higher education. At least three of the members of the advisory board 
38.31 	shall be from greater Minnesota and at least three members shall be minority group members. 
38.32 	Appointees shall represent a range of interests, including entrepreneurs, large businesses, 
38.33 	industry organizations, investors, and both public and private small business service 
38.34 	providers.
39.1 	(c) The advisory board shall select a chair from its private sector members. The executive 
39.2 	director shall provide administrative support to the committee.
39.3 	(d) The commissioner, or a designee, shall serve as an ex-officio, nonvoting member of 
39.4 	the advisory board.

39.5 	Sec. 11. Minnesota Statutes 2022, section 116J.9924, subdivision 4, is amended to read:
39.6 		Subd. 4.Grant amount; project phasing. (a) The commissioner shall award grants in 
39.7 	an amount not to exceed $1,500,000 $3,000,000 per grant.
39.8 	(b) A grant awarded under this section must be no less than the amount required to 
39.9 	complete one or more phases of the project, less any nonstate funds already committed for 
39.10 	such activities.

39.11 	Sec. 12. [116J.9925] COMMUNITY WEALTH-BUILDING GRANT PROGRAM.
39.12 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
39.13 	the meanings given.
39.14 	(b) "Commissioner" means the commissioner of employment and economic development.
39.15 	(c) "Community business" means a cooperative, an employee-owned business, or a 
39.16 	commercial land trust that is at least 51 percent owned by individuals from targeted groups.
39.17 	(d) "Partner organization" means a community development financial institution or 
39.18 	nonprofit corporation.
39.19 	(e) "Program" means the community wealth-building grant program created under this 
39.20 	section.
39.21 	(f) "Targeted groups" means persons who are Black, Indigenous, People of Color, 
39.22 	immigrants, low-income, women, veterans, or persons with disabilities.
39.23 		Subd. 2.Establishment. The commissioner shall establish a community wealth-building 
39.24 	grant program to award grants to partner organizations to fund low-interest loans to 
39.25 	community businesses. The program must encourage tax-base revitalization, private 
39.26 	investment, job creation for targeted groups, creation and strengthening of business 
39.27 	enterprises, assistance to displaced businesses, and promotion of economic development in 
39.28 	low-income areas.
39.29 		Subd. 3.Grants to partner organizations. (a) The commissioner shall award grants to 
39.30 	partner organizations through a competitive grant process where applicants apply using a 
40.1 	form designed by the commissioner. In evaluating applications, the commissioner shall 
40.2 	consider whether the applicant:
40.3 	(1) has a board of directors that includes members experienced in business and community 
40.4 	development, operating community businesses, addressing racial income disparities, and 
40.5 	creating jobs for targeted groups;
40.6 	(2) has the technical skills to analyze projects;
40.7 	(3) is familiar with other available public and private funding sources and economic 
40.8 	development programs;
40.9 	(4) can initiate and implement economic development projects;
40.10 	(5) can establish a program and administer funds;
40.11 	(6) can work with job referral networks assisting targeted groups; and
40.12 	(7) has established relationships with communities of targeted groups.
40.13 	(b) The commissioner shall ensure that loans through the program will fund community 
40.14 	businesses statewide and shall make reasonable attempts to balance the amount of funding 
40.15 	available to community businesses inside and outside of the metropolitan area as defined 
40.16 	under section 473.121, subdivision 2.
40.17 	(c) Partner organizations that receive grants under this subdivision shall use up to ten 
40.18 	percent of their award to provide specialized technical and legal assistance, either directly 
40.19 	or through a partnership with organizations with expertise in shared ownership structures, 
40.20 	to community businesses and businesses in the process of transitioning to community 
40.21 	ownership.
40.22 	(d) Grants under this subdivision are available for five years. The commissioner shall 
40.23 	review existing grant agreements every five years and may renew or terminate the agreement 
40.24 	based on that review and consideration of the criteria under paragraph (a).
40.25 		Subd. 4.Loans to community businesses. (a) A partner organization that receives a 
40.26 	grant under subdivision 3 shall establish a plan for making low-interest loans to community 
40.27 	businesses. The plan requires approval by the commissioner.
40.28 	(b) Under the plan:
40.29 	(1) the state contribution to each loan shall be no less than $50,000 and no more than 
40.30 	$2,500,000;
41.1 	(2) loans shall be made for projects that are unlikely to be undertaken unless a loan is 
41.2 	received under the program;
41.3 	(3) priority shall be given to loans to businesses in the lowest income areas;
41.4 	(4) the interest rate on a loan shall not be higher than the Wall Street Journal prime rate;
41.5 	(5) 50 percent of all repayments of principal on a loan under the program shall be repaid 
41.6 	to the community wealth-building account created under subdivision 5. The partner 
41.7 	organization may retain the remainder of loan repayments to service loans and provide 
41.8 	further technical assistance;
41.9 	(6) the partner organization may charge a loan origination fee of no more than one 
41.10 	percent of the loan value and may retain that origination fee; and
41.11 	(7) a partner organization may not make a loan to a project in which it has an ownership 
41.12 	interest.
41.13 		Subd. 5.Community wealth-building account. A community wealth-building account 
41.14 	is created in the special revenue fund in the state treasury. Money in the account is 
41.15 	appropriated to the commissioner for grants under this section.
41.16 		Subd. 6.Reports. (a) Grant recipients shall submit an annual report to the commissioner 
41.17 	by January 31 of each year they participate in the program. The report shall include:
41.18 	(1) an account of all loans made through the program the preceding calendar year and 
41.19 	the impact of those loans on community businesses and job creation for targeted groups;
41.20 	(2) information on the source and amount of money collected and distributed under the 
41.21 	program, its assets and liabilities, and an explanation of administrative expenses; and
41.22 	(3) an independent audit of grant funds performed in accordance with generally accepted 
41.23 	accounting practices and auditing standards.
41.24 	(b) By February 15 of each year beginning in 2024, the commissioner shall submit a 
41.25 	report to the chairs and ranking minority members of the legislative committees with 
41.26 	jurisdiction over workforce and economic development on program outcomes, including 
41.27 	copies of all reports received under paragraph (a).

41.28 	Sec. 13. [116J.9926] EMERGING DEVELOPER FUND PROGRAM.
41.29 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
41.30 	the meanings given.
41.31 	(b) "Commissioner" means the commissioner of employment and economic development.
42.1 	(c) "Disadvantaged community" means a community where the median household 
42.2 	income is less than 80 percent of the area median income.
42.3 	(d) "Eligible project" means a project that is based in Minnesota and meets one or more 
42.4 	of the following criteria:
42.5 	(1) it will stimulate community stabilization or revitalization;
42.6 	(2) it will be located within a census tract identified as a disadvantaged community or 
42.7 	low-income community;
42.8 	(3) it will directly benefit residents of a low-income household;
42.9 	(4) it will increase the supply and improve the condition of affordable housing and 
42.10 	homeownership;
42.11 	(5) it will support the growth needs of new and existing community-based enterprises 
42.12 	that promote economic stability or improve the supply or quality of job opportunities; or
42.13 	(6) it will promote wealth creation, including by being a project in a neighborhood 
42.14 	traditionally not served by real estate developers.
42.15 	(e) "Emerging developer" means a developer who:
42.16 	(1) has limited access to loans from traditional financial institutions; or
42.17 	(2) is a new or smaller developer who has engaged in educational training in real estate 
42.18 	development; and
42.19 	(3) is either a:
42.20 	(i) minority as defined in section 116M.14, subdivision 6;
42.21 	(ii) woman;
42.22 	(iii) person with a disability, as defined in section 116M.14, subdivision 9; or
42.23 	(iv) low-income person.
42.24 	(f) "Low-income person" means a person who:
42.25 	(1) has a household income at or below 200 percent of the federal poverty level; or
42.26 	(2) has a family income that does not exceed 60 percent of the area median income as 
42.27 	determined by the United States Department of Housing and Urban Development.
42.28 	(g) "Partner organization" means a community development financial institution or a 
42.29 	similarly qualified nonprofit corporation, as determined by the commissioner.
43.1 	(h) "Program" means the emerging developer fund program created under this section.
43.2 		Subd. 2.Establishment. The commissioner shall establish an emerging developer fund 
43.3 	program to make grants to partner organizations to make grants and loans to emerging 
43.4 	developers for eligible projects to transform neighborhoods statewide and promote economic 
43.5 	development and the creation and retention of jobs in Minnesota. The program must also 
43.6 	reduce racial and socioeconomic disparities by growing the financial capacity of emerging 
43.7 	developers.
43.8 		Subd. 3.Grants to partner organizations. (a) The commissioner shall design a 
43.9 	competitive process to award grants to partner organizations to make grants and loans to 
43.10 	emerging developers under subdivision 4.
43.11 	(b) A partner organization may use up to ten percent of grant funds for the administrative 
43.12 	costs of the program.
43.13 		Subd. 4.Grants and loans to emerging developers. (a) Through the program, partner 
43.14 	organizations shall offer emerging developers predevelopment grants and predevelopment, 
43.15 	construction, and bridge loans for eligible projects according to a plan submitted to and 
43.16 	approved by the commissioner.
43.17 	(b) Predevelopment grants must be for no more than $100,000. All loans must be for no 
43.18 	more than $1,000,000.
43.19 	(c) Loans must be for a term set by the partner organization and approved by the 
43.20 	commissioner of no less than six months and no more than eight years, depending on the 
43.21 	use of loan proceeds.
43.22 	(d) Loans must be for zero interest or an interest rate of no more than the Wall Street 
43.23 	Journal prime rate, as determined by the partner organization and approved by the 
43.24 	commissioner based on the individual project risk and type of loan sought.
43.25 	(e) Loans must have flexible collateral requirements compared to traditional loans, but 
43.26 	may require a personal guaranty from the emerging developer and may be largely unsecured 
43.27 	when the appraised value of the real estate is low.
43.28 	(f) Loans must have no prepayment penalties and are expected to be repaid from 
43.29 	permanent financing or a conventional loan, once that is secured.
43.30 	(g) Loans must have the ability to bridge many types of receivables, such as tax credits, 
43.31 	grants, developer fees, and other forms of long-term financing.
44.1 	(h) At the partner organization's request and the commissioner's discretion, an emerging 
44.2 	developer may be required to work with an experienced developer or professional services 
44.3 	consultant who can offer expertise and advice throughout the development of the project.
44.4 	(i) All loan repayments must be paid into the emerging developer fund account created 
44.5 	in this section to fund additional loans.
44.6 		Subd. 5.Eligible expenses. (a) The following are eligible expenses for a predevelopment 
44.7 	grant or loan under the program:
44.8 	(1) earnest money or purchase deposit;
44.9 	(2) building inspection fees and environmental reviews;
44.10 	(3) appraisal and surveying;
44.11 	(4) design and tax credit application fees;
44.12 	(5) title and recording fees;
44.13 	(6) site preparation, demolition, and stabilization;
44.14 	(7) interim maintenance and project overhead;
44.15 	(8) property taxes and insurance;
44.16 	(9) construction bonds or letters of credit;
44.17 	(10) market and feasibility studies; and
44.18 	(11) professional fees.
44.19 	(b) The following are eligible expenses for a construction or bridge loan under the 
44.20 	program:
44.21 	(1) land or building acquisition;
44.22 	(2) construction-related expenses;
44.23 	(3) developer and contractor fees;
44.24 	(4) site preparation, environmental cleanup, and demolition;
44.25 	(5) financing fees, including title and recording;
44.26 	(6) professional fees;
44.27 	(7) carrying costs;
44.28 	(8) construction period interest;
45.1 	(9) project reserves; and
45.2 	(10) leasehold improvements and equipment purchase.
45.3 		Subd. 6.Emerging developer fund account. An emerging developer fund account is 
45.4 	created in the special revenue fund in the state treasury. Money in the account is appropriated 
45.5 	to the commissioner for grants to partner organizations to make loans under this section.
45.6 		Subd. 7.Reports to the legislature. (a) By January 15 of each year, beginning in 2025, 
45.7 	each partner organization shall submit a report to the commissioner on the use of program 
45.8 	funds and program outcomes.
45.9 	(b) By February 15 of each year, beginning in 2025, the commissioner shall submit a 
45.10 	report to the chairs of the house of representatives and senate committees with jurisdiction 
45.11 	over economic development on the use of program funds and program outcomes.

45.12 	Sec. 14. EMPOWERING ENTERPRISE PROGRAM.
 45.13 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
45.14 	the meanings given.
45.15 	(b) "Commissioner" means the commissioner of employment and economic development.
45.16 	(c) "Eligible organization" means:
45.17 	(1) a federally certified community development financial institution;
45.18 	(2) a nonprofit organization; or
45.19 	(3) a city.
45.20 	(d) "Entity" includes any registered business or nonprofit organization. This includes 
45.21 	businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit organizations.
45.22 		Subd. 2.Establishment. The commissioner shall establish a program to make grants to 
45.23 	eligible organizations to develop and implement local economic relief programs designed 
45.24 	with the primary goal of assisting communities adversely affected by civil unrest during 
45.25 	the peacetime emergency declared in governor's Executive Order No. 20-64 by preserving 
45.26 	incumbent entities and encouraging new entities to locate in those areas. To this end, local 
45.27 	programs should include outreach to cultural communities and support for microenterprises.
45.28 		Subd. 3.Available relief. (a) The local programs established by eligible organizations 
45.29 	under this section may include grants or loans as provided in this section, as well as subgrants 
45.30 	to local nonprofits to further the goals of the program. Prior to awarding a grant to an eligible 
45.31 	organization for a local program under this section:
46.1 	(1) the eligible organization must develop criteria, procedures, and requirements for:
46.2 	(i) determining eligibility for assistance;
46.3 	(ii) the duration, terms, underwriting and security requirements, and repayment 
46.4 	requirements for loans;
46.5 	(iii) evaluating applications for assistance;
46.6 	(iv) awarding assistance; and
46.7 	(v) administering the grant and loan programs authorized under this section, including 
46.8 	any subgrants to local nonprofits;
46.9 	(2) the eligible organization must submit its criteria, procedures, and requirements 
46.10 	developed pursuant to clause (1) to the commissioner of employment and economic 
46.11 	development for review; and
46.12 	(3) the commissioner must approve the criteria, procedures, and requirements as 
46.13 	developed pursuant to clause (1) to be used by an eligible organization in determining 
46.14 	eligibility for assistance, evaluating, awarding, and administering a grant and loan program.
46.15 	(b) Relief under this section includes grants to entities. These grants must not exceed 
46.16 	$500,000 per entity, must specify that an entity receiving a grant must remain in the local 
46.17 	community a minimum of three years after the date of the grant, and must require submission 
46.18 	of a plan for continued operation. Grants may be awarded to applicants only when an eligible 
46.19 	organization determines that a loan is not appropriate to address the needs of the applicant.
46.20 	(c) Relief under this section includes loans to entities, with or without interest, and 
46.21 	deferred or forgivable loans. The maximum loan amount under this subdivision is $500,000 
46.22 	per entity. The lending criteria adopted by an eligible organization for loans under this 
46.23 	subdivision must:
46.24 	(1) specify that an entity receiving a deferred or forgivable loan must remain in the local 
46.25 	community a minimum of three years after the date of the loan. The maximum loan deferral 
46.26 	period must not exceed three years from the date the loan is approved; and
46.27 	(2) require submission of a plan for continued operation. The plan must document the 
46.28 	probable success of the applicant's plan and probable success in repaying the loan according 
46.29 	to the terms established for the loan program.
46.30 	(d) All loan repayment funds under this subdivision must be paid to the commissioner 
46.31 	of employment and economic development for deposit in the general fund.
47.1 		Subd. 4.Monitoring and reporting. (a) Participating eligible organizations must 
47.2 	establish performance measures that include but are not limited to the following components:
47.3 	(1) the number of loans approved and the amounts and terms of the loans;
47.4 	(2) the number of grants awarded, award amounts, and the reason that a grant award 
47.5 	was made in lieu of a loan;
47.6 	(3) the loan default rate;
47.7 	(4) the number of jobs created or retained as a result of the assistance, including 
47.8 	information on the wages and benefit levels, the status of the jobs as full-time or part-time, 
47.9 	and the status of the jobs as temporary or permanent; and
47.10 	(5) the amount of business activity and changes in gross revenues of the grant or loan 
47.11 	recipient as a result of the assistance.
47.12 	(b) The commissioner of employment and economic development must monitor the 
47.13 	participating eligible organizations' compliance with this section and the performance 
47.14 	measures developed under paragraph (a).
47.15 	(c) Participating eligible organizations must comply with all requests made by the 
47.16 	commissioner under this section and are responsible for the reporting and compliance of 
47.17 	any subgrantees.
47.18 	(d) By December 15 of each year the program is in existence, participating eligible 
47.19 	organizations must report their performance measures to the commissioner. By January 15 
47.20 	of each year the program is in existence, after the first, the commissioner must submit a 
47.21 	report of these performance measures to the chairs and ranking minority members of the 
47.22 	committees of the house of representatives and the senate having jurisdiction over economic 
47.23 	development that details the use of funds under this section.
47.24 		Subd. 5.Exemptions. (a) Minnesota Statutes, sections 116J.993 to 116J.995, do not 
47.25 	apply to assistance under this section. Entities in receipt of assistance under this section 
47.26 	must provide for job creation and retention goals and wage and benefit goals.
47.27 	(b) Minnesota Statutes, sections 16A.15, 16B.97, 16B.98, 16B.991, 16C.05, and 16C.053, 
47.28 	do not apply to assistance under this section.
47.29 		Subd. 6.Administrative costs. The commissioner of employment and economic 
47.30 	development may use up to seven percent of the appropriation made for this section for 
47.31 	administrative expenses of the department or for assisting participating eligible organizations 
47.32 	with their administrative expenses.

48.1 	EFFECTIVE DATE. This section is effective the day following final enactment and 
48.2 	expires the day after the last loan is repaid or forgiven as provided under this section.

48.3 	Sec. 15. CANADIAN BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
 48.4 		Subdivision 1.Relief program established. The Northland Foundation must develop 
48.5 	and implement a Canadian border counties economic relief program to assist businesses 
48.6 	adversely affected by the 2021 closure of the Boundary Waters Canoe Area Wilderness or 
48.7 	the closures of the Canadian border since 2020.
48.8 		Subd. 2.Available relief. (a) The economic relief program established under this section 
48.9 	may include grants provided in this section to the extent that funds are available. Before 
48.10 	awarding a grant to the Northland Foundation for the relief program under this section:
48.11 	(1) the Northland Foundation must develop criteria, procedures, and requirements for:
48.12 	(i) determining eligibility for assistance;
48.13 	(ii) evaluating applications for assistance;
48.14 	(iii) awarding assistance; and
48.15 	(iv) administering the grant program authorized under this section;
48.16 	(2) the Northland Foundation must submit its criteria, procedures, and requirements 
48.17 	developed under clause (1) to the commissioner of employment and economic development 
48.18 	for review; and
48.19 	(3) the commissioner must approve the criteria, procedures, and requirements submitted 
48.20 	under clause (2).
48.21 	(b) The maximum grant to a business under this section is $50,000 per business.
48.22 		Subd. 3.Qualification requirements. To qualify for assistance under this section, a 
48.23 	business must:
48.24 	(1) be located within a county that shares a border with Canada;
48.25 	(2) document a reduction of at least ten percent in gross receipts in 2021 compared to 
48.26 	2019; and
48.27 	(3) provide a written explanation for how the 2021 closure of the Boundary Waters 
48.28 	Canoe Area Wilderness or the closures of the Canadian border since 2020 resulted in the 
48.29 	reduction in gross receipts documented under clause (2).
49.1 		Subd. 4.Monitoring. (a) The Northland Foundation must establish performance 
49.2 	measures, including but not limited to the following components:
49.3 	(1) the number of grants awarded and award amounts for each grant;
49.4 	(2) the number of jobs created or retained as a result of the assistance, including 
49.5 	information on the wages and benefit levels, the status of the jobs as full time or part time, 
49.6 	and the status of the jobs as temporary or permanent;
49.7 	(3) the amount of business activity and changes in gross revenues of the grant recipient 
49.8 	as a result of the assistance; and
49.9 	(4) the new tax revenue generated as a result of the assistance.
49.10 	(b) The commissioner of employment and economic development must monitor the 
49.11 	Northland Foundation's compliance with this section and the performance measures 
49.12 	developed under paragraph (a).
49.13 	(c) The Northland Foundation must comply with all requests made by the commissioner 
49.14 	under this section.
49.15 		Subd. 5.Business subsidy requirements. Minnesota Statutes, sections 116J.993 to 
49.16 	116J.995, do not apply to assistance under this section. Businesses in receipt of assistance 
49.17 	under this section must provide for job creation and retention goals, and wage and benefit 
49.18 	goals.
49.19 		Subd. 6.Administrative costs. The commissioner of employment and economic 
49.20 	development may use up to one percent of the appropriation made for this section for 
49.21 	administrative expenses of the department.

49.22 	EFFECTIVE DATE. This section is effective July 1, 2023, and expires June 30, 2024.

49.23 	Sec. 16. REPEALER.
 49.24 	Minnesota Statutes 2022, section 116J.9924, subdivision 6, and Laws 2019, First Special 
49.25 	Session chapter 7, article 2, section 8, as amended by Laws 2021, First Special Session 
49.26 	chapter 10, article 2, section 19,  is repealed.

50.1 	ARTICLE 3
50.2 	CAPITOL AREA

50.3 	Section 1. CAPITOL AREA COMMUNITY VITALITY TASK FORCE; 
50.4 	APPROPRIATION.
 50.5 		Subdivision 1.Task force established; membership. (a) A Capitol Area Community 
50.6 	Vitality Task Force is established. The task force consists of the following members:
50.7 	(1) the executive secretary of the Capitol Area Architectural and Planning Board;
50.8 	(2) one member of the Capitol Area Architectural and Planning Board, appointed by the 
50.9 	board;
50.10 	(3) two members of the house of representatives appointed by the speaker of the house, 
50.11 	of whom one must be a member of the majority caucus of the house, and one must be a 
50.12 	member of the minority caucus of the house;
50.13 	(4) two members of the senate appointed by the majority leader of the senate, of whom 
50.14 	one must be a member of the majority caucus of the senate, and one must be a member of 
50.15 	the minority caucus of the senate;
50.16 	(5) four members who are residents, businesspeople, or members of local organizations 
50.17 	in the Capitol Area, appointed by the mayor of St. Paul; and
50.18 	(6) one member of the public appointed by the governor.
50.19 	(b) The task force must elect a chair and other officers from among its members. 
50.20 	Appointments to the task force must be made no later than July 15, 2023. The executive 
50.21 	secretary of the Capitol Area Architectural and Planning Board must convene the first 
50.22 	meeting of the task force no later than August 15, 2023.
50.23 	(c) As used in this section, "Capitol Area" includes that part of the city of St. Paul within 
50.24 	the boundaries described in Minnesota Statutes, section 15B.02.
50.25 		Subd. 2.Terms; compensation. The terms and compensation of members of the task 
50.26 	force are governed by Minnesota Statutes, section 15.059, subdivision 6.
50.27 		Subd. 3.Administrative support. The Capitol Area Architectural and Planning Board 
50.28 	must provide administrative support to assist the task force in its work.
50.29 		Subd. 4.Duties; report. The task force must consider and develop recommendations 
50.30 	for the administration, program plan, and oversight of the Capitol Area community vitality 
50.31 	account established by this act. The task force must submit its recommendations to the 
50.32 	Capitol Area Architectural and Planning Board for approval. A report including the approved 
51.1 	recommendations must be submitted by the Capitol Area Architectural and Planning Board 
51.2 	to the chairs and ranking minority members of the committees of the legislature with 
51.3 	jurisdiction over the board no later than February 1, 2024.
51.4 		Subd. 5.Expiration. Notwithstanding Minnesota Statutes, section 15.059, subdivision 
51.5 	6, the task force expires upon submission of the report required by subdivision 4.
51.6 		Subd. 6.Appropriation. $150,000 in fiscal year 2024 is appropriated from the general 
51.7 	fund to the Capitol Area Architectural and Planning Board to support the work of the task 
51.8 	force, including but not limited to payment of fees and other expenses necessary to retain 
51.9 	appropriate professional consultants, conduct public meetings, and facilitate other activities 
51.10 	as requested by the task force.

51.11 	Sec. 2. CAPITOL AREA COMMUNITY VITALITY ACCOUNT.
 51.12 		Subdivision 1.Account established; appropriation. (a) A Capitol Area community 
51.13 	vitality account is established in the special revenue fund. Money in the account is 
51.14 	appropriated to the commissioner of administration to improve the livability, economic 
51.15 	health, and safety of communities within the Capitol Area, provided that no funds may be 
51.16 	expended until a detailed program and oversight plan to govern their use, in accordance 
51.17 	with the spending recommendations of the Capitol Area Community Vitality Task Force 
51.18 	as approved by the Capitol Area Architectural and Planning Board, has been further approved 
51.19 	by law.
51.20 	(b) As used in this section, "Capitol Area" includes that part of the city of St. Paul within 
51.21 	the boundaries described in Minnesota Statutes, section 15B.02.
51.22 		Subd. 2.Appropriation. $5,000,000 in fiscal year 2024 is transferred from the general 
51.23 	fund to the Capitol Area community vitality account.

51.24 	Sec. 3. APPROPRIATION; CAPITOL AREA TRANSPORTATION CORRIDORS.
 51.25 	(a) $5,000,000 in fiscal year 2024 is appropriated from the general fund to the 
51.26 	commissioner of administration for one or more grants to the city of St. Paul, Ramsey 
51.27 	County, or both, for road projects that improve the livability, economic health, and safety 
51.28 	of communities within the Capitol Area. Funded projects must be consistent with the 
51.29 	recommendations of the Capitol Area Community Vitality Task Force, as approved by the 
51.30 	Capitol Area Architectural and Planning Board. This is a onetime appropriation and is 
51.31 	available until June 30, 2027.
51.32 	(b) Funds under this section are available:
52.1 	(1) for planning, predesign, design, engineering, environmental analysis and mitigation, 
52.2 	land acquisition, and reconstruction of streets and highways; and
52.3 	(2) only upon approval of the expenditure by the Capitol Area Architectural and Planning 
52.4 	Board.
52.5 	(c) For purposes of this section, "Capitol Area" means that part of the city of St. Paul 
52.6 	within the boundaries described in Minnesota Statutes, section 15B.02.

APPENDIX 

Repealed Minnesota Statutes: H3028-1 

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. 

Repealed Minnesota Session Laws: H3028-1 

Laws 2019, First Special Session chapter 7, article 2, section 8, as amended by Laws 2021, First Special Session chapter 10, article 2, section 19
Sec. 19. Laws 2019, First Special Session chapter 7, article 2, section 8, is amended to read:Sec. 8. LAUNCH MINNESOTA. Subdivision 1.Establishment. 
Launch Minnesota is established within the Business and Community Development Division of the Department of Employment and Economic Development to encourage and support the development of new private sector technologies and support the science and technology policies under Minnesota Statutes, section 3.222. Launch Minnesota must provide entrepreneurs and emerging technology-based companies business development assistance and financial assistance to spur growth. 

Subd. 2.Definitions. 
(a) For purposes of this section, the terms defined in this subdivision have the meanings given. 

(b) "Advisory board" means the board established under subdivision 9. 

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

(d) "Department" means the Department of Employment and Economic Development. 

(e) "Entrepreneur" means a Minnesota resident who is involved in establishing a business entity and secures resources directed to its growth while bearing the risk of loss. 

(f) "Greater Minnesota" means the area of Minnesota located outside of the metropolitan area as defined in Minnesota Statutes, section 473.121, subdivision 2. 

(g) "Innovative technology and business" means a new novel business model or product; a derivative product incorporating new elements into an existing product; a new use for a product; or a new process or method for the manufacture, use, or assessment of any product or activity, patentability, or scalability. Innovative technology or business model does not include locally based retail, lifestyle, or business services. The business must not be primarily engaged in real estate development, insurance, banking, lending, lobbying, political consulting, information technology consulting, wholesale or retail trade, leisure, hospitality, transportation, construction, ethanol production from corn, or professional services provided by attorneys, accountants, business consultants, physicians, or health care consultants. 

(h) "Institution of higher education" has the meaning given in Minnesota Statutes, section 136A.28, subdivision 6. 

(i) "Minority group member" means a United States citizen or lawful permanent resident who is Asian, Pacific Islander, Black, Hispanic, or Native American. 

(j) "Research and development" means any activity that is:  

(1) a systematic, intensive study directed toward greater knowledge or understanding of the subject studies;  

(2) a systematic study directed specifically toward applying new knowledge to meet a recognized need; or  

(3) a systematic application of knowledge toward the production of useful materials, devices, systems and methods, including design, development and improvement of prototypes and new processes to meet specific requirements. 

(k) "Start-up" means a business entity that has been in operation for less than ten years, has operations in Minnesota, and is in the development stage defined as devoting substantially all of its efforts to establishing a new business and either of the following conditions exists: 

(1) planned principal operations have not commenced; or  

(2) planned principal operations have commenced, but have generated less than $1,000,000 in revenue. 

(l) "Technology-related assistance" means the application and utilization of technological-information and technologies to assist in the development and production of new technology-related products or services or to increase the productivity or otherwise enhance the production or delivery of existing products or services. 

(m) "Trade association" means a nonprofit membership organization organized to promote businesses and business conditions and having an election under Internal Revenue Code section 501(c)(3) or 501(c)(6). 

(n) "Veteran" has the meaning given in Minnesota Statutes, section 197.447. 

Subd. 3.Duties. 
The commissioner, by and through Launch Minnesota, shall: 

(1) support innovation and initiatives designed to accelerate the growth of innovative technology and business start-ups in Minnesota;  

(2) in partnership with other organizations, offer classes and instructional sessions on how to start an innovative technology and business start-up;  

(3) promote activities for entrepreneurs and investors regarding the state's growing innovation economy;  

(4) hold events and meetings that gather key stakeholders in the state's innovation sector;  

(5) conduct outreach and education on innovation activities and related financial programs available from the department and other organizations, particularly for underserved communities;  

(6) interact and collaborate with statewide partners including but not limited to businesses, nonprofits, trade associations, and higher education institutions;  

(7) administer an advisory board to assist with direction, grant application review, program evaluation, report development, and partnerships;  

(8) accept grant applications under subdivisions 5, 6, and 7 and work with the advisory board to review and prioritize the applications and provide recommendations to the commissioner; and 

(9) perform other duties at the commissioner's discretion. 

Subd. 4.Administration. 
(a) The commissioner shall employ an executive director in the unclassified service, one staff member to support Launch Minnesota, and one staff member in the business and community development division to manage grants. The executive director shall: 

(1) assist the commissioner and the advisory board in performing the duties of Launch Minnesota; and 

(2) comply with all state and federal program requirements, and all state and federal securities and tax laws and regulations. 

(b) Launch Minnesota may occupy and lease physical space in a private coworking facility that includes office space for staff and space for community engagement for training entrepreneurs. The physical space leased under this paragraph is exempt from the requirements in Minnesota Statutes, section 16B.24, subdivision 6. 

(c) At least three times per month, Launch Minnesota staff shall communicate with organizations in greater Minnesota that have received a grant under subdivision 7. To the extent possible, Launch Minnesota shall form partnerships with organizations located throughout the state. 

(d) Launch Minnesota must accept grant applications under this section and provide funding recommendations to the commissioner and the commissioner shall distribute grants based in part on the recommendations. 

Subd. 5.Application process. 
(a) The commissioner shall establish the application form and procedures for grants. 

(b) Upon receiving recommendations from Launch Minnesota, the commissioner is responsible for evaluating all applications using evaluation criteria which shall be developed by Launch Minnesota in consultation with the advisory board. 

(c) For grants under subdivision 6, priority shall be given if the applicant is: 

(1) a business or entrepreneur located in greater Minnesota; or 

(2) a business owner, individual with a disability, or entrepreneur who is a woman, veteran, or minority group member. 

(d) For grants under subdivision 7, priority shall be given if the applicant is planning to serve: 

(1) businesses or entrepreneurs located in greater Minnesota; or 

(2) business owners, individuals with disabilities, or entrepreneurs who are women, veterans, or minority group members. 

(e) The department staff, and not Launch Minnesota staff, are responsible for awarding funding, disbursing funds, and monitoring grantee performance for all grants awarded under this section. 

(f) Grantees must provide matching funds by equal expenditures and grant payments must be provided on a reimbursement basis after review of submitted receipts by the department. 

(g) Grant applications must be accepted on a regular periodic basis by Launch Minnesota and must be reviewed by Launch Minnesota and the advisory board before being submitted to the commissioner with their recommendations. 

Subd. 6.Innovation grants. 
(a) The commissioner shall distribute innovation grants under this subdivision. 

(b) The commissioner shall provide a grant of up to $35,000 to an eligible business or entrepreneur for research and development expenses, direct business expenses, and the purchase of technical assistance or services from public higher education institutions and nonprofit entities. Research and development expenditures may include but are not limited to proof of concept activities, intellectual property protection, prototype designs and production, and commercial feasibility. Expenditures funded under this subdivision are not eligible for the research and development tax credit under Minnesota Statutes, section 290.068. Direct business expenses may include rent, equipment purchases, and supplier invoices. Taxes imposed by federal, state, or local government entities may not be reimbursed under this paragraph. Technical assistance or services must be purchased to assist in the development or commercialization of a product or service to be eligible. Each business or entrepreneur may receive only one grant per biennium under this paragraph. 

(c) The commissioner shall provide a grant of up to $35,000 in Phase 1 or $50,000 in Phase 2 to an eligible business or entrepreneur that, as a registered client of the Small Business Innovation Research (SBIR) program, has been awarded a first time Phase 1 or Phase 2 award pursuant to the SBIR or Small Business Technology Transfer (STTR) programs after July 1, 2019. Each business or entrepreneur may receive only one grant per biennium under this paragraph. Grants under this paragraph are not subject to the requirements of subdivision 2, paragraph (k), but do require a recommendation from the Launch Minnesota advisory board. 

Subd. 7.Entrepreneur education grants. 
(a) The commissioner shall make entrepreneur education grants to institutions of higher education and other organizations to provide educational programming to entrepreneurs and provide outreach to and collaboration with businesses, federal and state agencies, institutions of higher education, trade associations, and other organizations working to advance innovative technology businesses throughout Minnesota.  

(b) Applications for entrepreneur education grants under this subdivision must be submitted to the commissioner and evaluated by department staff other than Launch Minnesota. The evaluation criteria must be developed by Launch Minnesota, in consultation with the advisory board, and the commissioner, and priority must be given to an applicant who demonstrates activity assisting business owners or entrepreneurs residing in greater Minnesota or who are women, veterans, or minority group members. 

(c) Department staff other than Launch Minnesota staff are responsible for awarding funding, disbursing funds, and monitoring grantee performance under this subdivision. 

(d) Grantees may use the grant funds to deliver the following services:  

(1) development and delivery to innovative technology businesses of industry specific or innovative product or process specific counseling on issues of business formation, market structure, market research and strategies, securing first mover advantage or overcoming barriers to entry, protecting intellectual property, and securing debt or equity capital. This counseling is to be delivered in a classroom setting or using distance media presentations; 

(2) outreach and education to businesses and organizations on the small business investment tax credit program under Minnesota Statutes, section 116J.8737, the MNvest crowd-funding program under Minnesota Statutes, section 80A.461, and other state programs that support innovative technology business creation especially in underserved communities; 

(3) collaboration with institutions of higher education, local organizations, federal and state agencies, the Small Business Development Center, and the Small Business Assistance Office to create and offer educational programming and ongoing counseling in greater Minnesota that is consistent with those services offered in the metropolitan area; and 

(4) events and meetings with other innovation-related organizations to inform entrepreneurs and potential investors about Minnesota's growing innovation economy. 

Subd. 8.Report. 
(a) Launch Minnesota shall report by December 31, 2022, and again by December 31, 2023, to the chairs and ranking minority members of the committees of the house of representatives and senate having jurisdiction over economic development policy and finance. Each report shall include information on the work completed, including awards made by the department under this section and progress toward transferring the activities of Launch Minnesota to an entity outside of state government. 

(b) By December 31, 2024, Launch Minnesota shall provide a comprehensive transition plan to the chairs and ranking minority members of the committees of the house of representatives and senate having jurisdiction over economic development policy and finance. The transition plan shall include: (1) a detailed strategy for the transfer of Launch Minnesota activities to an entity outside of state government; (2) the projected date of the transfer; and (3) the role of the state, if any, in ongoing activities of Launch Minnesota or its successor entity.  

Subd. 9.Advisory board. 
(a) The commissioner shall establish an advisory board to advise the executive director regarding the activities of Launch Minnesota, make the recommendations described in this section, and develop and initiate a strategic plan for transferring some activities of Launch Minnesota to a new or existing public-private partnership or nonprofit organization outside of state government.  

(b) The advisory board shall consist of ten members and is governed by Minnesota Statutes, section 15.059. A minimum of seven members must be from the private sector representing business and at least two members but no more than three members must be from government and higher education. At least three of the members of the advisory board shall be from greater Minnesota and at least three members shall be minority group members. Appointees shall represent a range of interests, including entrepreneurs, large businesses, industry organizations, investors, and both public and private small business service providers. 

(c) The advisory board shall select a chair from its private sector members. The executive director shall provide administrative support to the committee.  

(d) The commissioner, or a designee, shall serve as an ex-officio, nonvoting member of the advisory board. 

Subd. 10.Expiration. 
This section expires January 1, 2026.