1.1 	A bill for an act
1.2 	relating to economic development; making supplemental appropriation changes 
1.3 	to programs relating to the Department of Employment and Economic Development 
1.4 	and Explore Minnesota; modifying economic development policy; establishing 
1.5 	Explore Minnesota Film; creating a Brooklyn Park Biotech Innovation District; 
1.6 	appropriating money;amending Minnesota Statutes 2022, sections 116J.435, 
1.7 	subdivisions 3, 4; 116J.5492, subdivision 2; 116M.18; 116U.26; 116U.27, 
1.8 	subdivision 5; 446A.072, subdivision 5a; 446A.073, subdivision 1; Minnesota 
1.9 	Statutes 2023 Supplement, sections 116J.682, subdivisions 1, 3; 116J.8733; 
1.10 	116J.8751, by adding a subdivision; 116U.27, subdivisions 1, 4; Laws 2023, 
1.11 	chapter 53, article 15, sections 32, subdivision 6; 33, subdivisions 4, 5; article 20, 
1.12 	sections 2, subdivisions 1, 2; 3; proposing coding for new law in Minnesota Statutes, 
1.13 	chapter 116U; repealing Minnesota Statutes 2022, section 116J.435, subdivision 
1.14 	5.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	APPROPRIATIONS

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

1.201.19
	Subdivision 1.Total Appropriation
 	$
	382,802,000
	$
	310,131,000
306,306,000

1.21	Appropriations by Fund
	
1.22		2024
	2025
	
1.241.23
	General
	352,525,000
	279,854,000
276,029,000
	
1.25	Remediation
	700,000
	700,000
	
1.26
1.27	Workforce 
Development
	30,277,000
	30,277,000
	
2.1 	The amounts that may be spent for each 
2.2 	purpose are specified in the following 
2.3 	subdivisions.

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

2.62.5
	Subd. 2.Business and Community Development
 		195,061,000
		139,929,000
136,104,000

2.7	Appropriations by Fund
	
2.92.8
	General
	193,011,000
	137,879,000
134,054,000
	
2.10	Remediation
	700,000
	700,000
	
2.11
2.12	Workforce 
Development
	1,350,000
	1,350,000
	
2.13 	(a) $2,287,000 each year is for the greater 
2.14 	Minnesota business development public 
2.15 	infrastructure grant program under Minnesota 
2.16 	Statutes, section 116J.431. This appropriation 
2.17 	is available until June 30, 2027.
2.18 	(b) $500,000 each year is for grants to small 
2.19 	business development centers under Minnesota 
2.20 	Statutes, section 116J.68. Money made 
2.21 	available under this paragraph may be used to 
2.22 	match funds under the federal Small Business 
2.23 	Development Center (SBDC) program under 
2.24 	United States Code, title 15, section 648, to 
2.25 	provide consulting and technical services or 
2.26 	to build additional SBDC network capacity to 
2.27 	serve entrepreneurs and small businesses.
2.28 	(c) $2,500,000 each the first year is for Launch 
2.29 	Minnesota. These are This is a onetime 
2.30 	appropriations appropriation. Of this amount:
2.31 	(1) $1,500,000 each year is for innovation 
2.32 	grants to eligible Minnesota entrepreneurs or 
2.33 	start-up businesses to assist with their 
2.34 	operating needs;
3.1 	(2) $500,000 each year is for administration 
3.2 	of Launch Minnesota; and
3.3 	(3) $500,000 each year is for grantee activities 
3.4 	at Launch Minnesota.
3.5 	(d)(1) $500,000 each year is for grants to 
3.6 	MNSBIR, Inc., to support moving scientific 
3.7 	excellence and technological innovation from 
3.8 	the lab to the market for start-ups and small 
3.9 	businesses by securing federal research and 
3.10 	development funding. The purpose of the grant 
3.11 	is to build a strong Minnesota economy and 
3.12 	stimulate the creation of novel products, 
3.13 	services, and solutions in the private sector; 
3.14 	strengthen the role of small business in 
3.15 	meeting federal research and development 
3.16 	needs; increase the commercial application of 
3.17 	federally supported research results; and 
3.18 	develop and increase the Minnesota 
3.19 	workforce, especially by fostering and 
3.20 	encouraging participation by small businesses 
3.21 	owned by women and people who are Black, 
3.22 	Indigenous, or people of color. This is a 
3.23 	onetime appropriation.
3.24 	(2) MNSBIR, Inc., shall use the grant money 
3.25 	to be the dedicated resource for federal 
3.26 	research and development for small businesses 
3.27 	of up to 500 employees statewide to support 
3.28 	research and commercialization of novel ideas, 
3.29 	concepts, and projects into cutting-edge 
3.30 	products and services for worldwide economic 
3.31 	impact. MNSBIR, Inc., shall use grant money 
3.32 	to:
3.33 	(i) assist small businesses in securing federal 
3.34 	research and development funding, including 
3.35 	the Small Business Innovation Research and 
4.1 	Small Business Technology Transfer programs 
4.2 	and other federal research and development 
4.3 	funding opportunities;
4.4 	(ii) support technology transfer and 
4.5 	commercialization from the University of 
4.6 	Minnesota, Mayo Clinic, and federal 
4.7 	laboratories;
4.8 	(iii) partner with large businesses;
4.9 	(iv) conduct statewide outreach, education, 
4.10 	and training on federal rules, regulations, and 
4.11 	requirements;
4.12 	(v) assist with scientific and technical writing;
4.13 	(vi) help manage federal grants and contracts; 
4.14 	and
4.15 	(vii) support cost accounting and sole-source 
4.16 	procurement opportunities.
4.17 	(e) $10,000,000 the first year is for the 
4.18 	Minnesota Expanding Opportunity Fund 
4.19 	Program under Minnesota Statutes, section 
4.20 	116J.8733. This is a onetime appropriation 
4.21 	and is available until June 30, 2025.
4.22 	(f) $6,425,000 each year is for the small 
4.23 	business assistance partnerships program 
4.24 	under Minnesota Statutes, section 116J.682. 
4.25 	All grant awards shall be for two consecutive 
4.26 	years. Grants shall be awarded in the first year. 
4.27 	The department may use up to five percent of 
4.28 	the appropriation for administrative purposes. 
4.29 	The base for this appropriation is $2,725,000 
4.30 	in fiscal year 2026 and each year thereafter.
4.31 	(g) $350,000 each year is for administration 
4.32 	of the community energy transition office.
5.1 	(h) $5,000,000 each year is transferred from 
5.2 	the general fund to the community energy 
5.3 	transition account for grants under Minnesota 
5.4 	Statutes, section 116J.55. This is a onetime 
5.5 	transfer.
5.6 	(i) $1,772,000 each year is for contaminated 
5.7 	site cleanup and development grants under 
5.8 	Minnesota Statutes, sections 116J.551 to 
5.9 	116J.558. This appropriation is available until 
5.10 	expended.
5.11 	(j) $700,000 each year is from the remediation 
5.12 	fund for contaminated site cleanup and 
5.13 	development grants under Minnesota Statutes, 
5.14 	sections 116J.551 to 116J.558. This 
5.15 	appropriation is available until expended.
5.16 	(k) $389,000 each year is for the Center for 
5.17 	Rural Policy and Development. The base for 
5.18 	this appropriation is $139,000 in fiscal year 
5.19 	2026 and each year thereafter.
5.20 	(l) $25,000 each year is for the administration 
5.21 	of state aid for the Destination Medical Center 
5.22 	under Minnesota Statutes, sections 469.40 to 
5.23 	469.47.
5.24 	(m) $875,000 each year is for the host 
5.25 	community economic development program 
5.26 	established in Minnesota Statutes, section 
5.27 	116J.548.
5.28 	(n) $6,500,000 each year is for grants to local 
5.29 	communities to increase the number of quality 
5.30 	child care providers to support economic 
5.31 	development. Fifty percent of grant money 
5.32 	must go to communities located outside the 
5.33 	seven-county metropolitan area as defined in 
5.34 	Minnesota Statutes, section 473.121, 
6.1 	subdivision 2. The base for this appropriation 
6.2 	is $1,500,000 in fiscal year 2026 and each year 
6.3 	thereafter.
6.4 	Grant recipients must obtain a 50 percent 
6.5 	nonstate match to grant money in either cash 
6.6 	or in-kind contribution, unless the 
6.7 	commissioner waives the requirement. Grant 
6.8 	money available under this subdivision must 
6.9 	be used to implement projects to reduce the 
6.10 	child care shortage in the state, including but 
6.11 	not limited to funding for child care business 
6.12 	start-ups or expansion, training, facility 
6.13 	modifications, direct subsidies or incentives 
6.14 	to retain employees, or improvements required 
6.15 	for licensing, and assistance with licensing 
6.16 	and other regulatory requirements. In awarding 
6.17 	grants, the commissioner must give priority 
6.18 	to communities that have demonstrated a 
6.19 	shortage of child care providers.
6.20 	Within one year of receiving grant money, 
6.21 	grant recipients must report to the 
6.22 	commissioner on the outcomes of the grant 
6.23 	program, including but not limited to the 
6.24 	number of new providers, the number of 
6.25 	additional child care provider jobs created, the 
6.26 	number of additional child care openings, and 
6.27 	the amount of cash and in-kind local money 
6.28 	invested. Within one month of all grant 
6.29 	recipients reporting on program outcomes, the 
6.30 	commissioner must report the grant recipients' 
6.31 	outcomes to the chairs and ranking members 
6.32 	of the legislative committees with jurisdiction 
6.33 	over early learning and child care and 
6.34 	economic development.
7.1 	(o) $500,000 each year is for the Office of 
7.2 	Child Care Community Partnerships. Of this 
7.3 	amount:
7.4 	(1) $450,000 each year is for administration 
7.5 	of the Office of Child Care Community 
7.6 	Partnerships; and
7.7 	(2) $50,000 each year is for the Labor Market 
7.8 	Information Office to conduct research and 
7.9 	analysis related to the child care industry.
7.10 	(p) $3,500,000 each year is for grants in equal 
7.11 	amounts to each of the Minnesota Initiative 
7.12 	Foundations. This appropriation is available 
7.13 	until June 30, 2027. The base for this 
7.14 	appropriation is $1,000,000 in fiscal year 2026 
7.15 	and each year thereafter. The Minnesota 
7.16 	Initiative Foundations must use grant money 
7.17 	under this section to:
7.18 	(1) facilitate planning processes for rural 
7.19 	communities resulting in a community solution 
7.20 	action plan that guides decision making to 
7.21 	sustain and increase the supply of quality child 
7.22 	care in the region to support economic 
7.23 	development;
7.24 	(2) engage the private sector to invest local 
7.25 	resources to support the community solution 
7.26 	action plan and ensure quality child care is a 
7.27 	vital component of additional regional 
7.28 	economic development planning processes;
7.29 	(3) provide locally based training and technical 
7.30 	assistance to rural business owners 
7.31 	individually or through a learning cohort. 
7.32 	Access to financial and business development 
7.33 	assistance must prepare child care businesses 
7.34 	for quality engagement and improvement by 
8.1 	stabilizing operations, leveraging funding from 
8.2 	other sources, and fostering business acumen 
8.3 	that allows child care businesses to plan for 
8.4 	and afford the cost of providing quality child 
8.5 	care; and
8.6 	(4) recruit child care programs to participate 
8.7 	in quality rating and improvement 
8.8 	measurement programs. The Minnesota 
8.9 	Initiative Foundations must work with local 
8.10 	partners to provide low-cost training, 
8.11 	professional development opportunities, and 
8.12 	continuing education curricula. The Minnesota 
8.13 	Initiative Foundations must fund, through local 
8.14 	partners, an enhanced level of coaching to 
8.15 	rural child care providers to obtain a quality 
8.16 	rating through measurement programs.
8.17 	(q) $8,000,000 each year is for the Minnesota 
8.18 	job creation fund under Minnesota Statutes, 
8.19 	section 116J.8748. Of this amount, the 
8.20 	commissioner of employment and economic 
8.21 	development may use up to three percent for 
8.22 	administrative expenses. This appropriation 
8.23 	is available until expended. Notwithstanding 
8.24 	Minnesota Statutes, section 116J.8748, money 
8.25 	appropriated for the job creation fund may be 
8.26 	used for redevelopment under Minnesota 
8.27 	Statutes, sections 116J.575 and 116J.5761, at 
8.28 	the discretion of the commissioner.
8.29 	(r) $12,370,000 each year is for the Minnesota 
8.30 	investment fund under Minnesota Statutes, 
8.31 	section 116J.8731. Of this amount, the 
8.32 	commissioner of employment and economic 
8.33 	development may use up to three percent for 
8.34 	administration and monitoring of the program. 
8.35 	This appropriation is available until expended. 
9.1 	Notwithstanding Minnesota Statutes, section 
9.2 	116J.8731, money appropriated to the 
9.3 	commissioner for the Minnesota investment 
9.4 	fund may be used for the redevelopment 
9.5 	program under Minnesota Statutes, sections 
9.6 	116J.575 and 116J.5761, at the discretion of 
9.7 	the commissioner. Grants under this paragraph 
9.8 	are not subject to the grant amount limitation 
9.9 	under Minnesota Statutes, section 116J.8731.
9.10 	(s) $4,246,000 each year is for the 
9.11 	redevelopment program under Minnesota 
9.12 	Statutes, sections 116J.575 and 116J.5761. 
9.13 	The base for this appropriation is $2,246,000 
9.14 	in fiscal year 2026 and each year thereafter. 
9.15 	This appropriation is available until expended.
9.16 	(t) $1,000,000 each year is for the Minnesota 
9.17 	emerging entrepreneur loan program under 
9.18 	Minnesota Statutes, section 116M.18. Money 
9.19 	available under this paragraph is for transfer 
9.20 	into the emerging entrepreneur program 
9.21 	special revenue fund account created under 
9.22 	Minnesota Statutes, chapter 116M, and are 
9.23 	available until expended. Of this amount, up 
9.24 	to four percent is for administration and 
9.25 	monitoring of the program.
9.26 	(u) $325,000 each the first year is for the 
9.27 	Minnesota Film and TV Board. The 
9.28 	appropriation each year is available only upon 
9.29 	receipt by the board of $1 in matching 
9.30 	contributions of money or in-kind 
9.31 	contributions from nonstate sources for every 
9.32 	$3 provided by this appropriation, except that 
9.33 	each year up to $50,000 is available on July 
9.34 	1 even if the required matching contribution 
10.1 	has not been received by that date. This is a 
10.2 	onetime appropriation.
10.3 	(v) $12,000 each year is for a grant to the 
10.4 	Upper Minnesota Film Office.
10.5 	(w) $500,000 each the first year is for a grant 
10.6 	to the Minnesota Film and TV Board for the 
10.7 	film production jobs program under Minnesota 
10.8 	Statutes, section 116U.26. This appropriation 
10.9 	is available until June 30, 2027. This is a 
10.10 	onetime appropriation.
10.11 	(x) $4,195,000 each year is for the Minnesota 
10.12 	job skills partnership program under 
10.13 	Minnesota Statutes, sections 116L.01 to 
10.14 	116L.17. If the appropriation for either year 
10.15 	is insufficient, the appropriation for the other 
10.16 	year is available. This appropriation is 
10.17 	available until expended.
10.18 	(y) $1,350,000 each year from the workforce 
10.19 	development fund is for jobs training grants 
10.20 	under Minnesota Statutes, section 116L.41.
10.21 	(z) $47,475,000 each year is for the PROMISE 
10.22 	grant program. This is a onetime appropriation 
10.23 	and is available until June 30, 2027. Of this 
10.24 	amount:
10.25 	(1) $475,000 each year is for administration 
10.26 	of the PROMISE grant program;
10.27 	(2) $7,500,000 each year is for grants in equal 
10.28 	amounts to each of the Minnesota Initiative 
10.29 	Foundations to serve businesses in greater 
10.30 	Minnesota. Of this amount, $600,000 each 
10.31 	year is for grants to businesses with less than 
10.32 	$100,000 in revenue in the prior year; and
11.1 	(3) $39,500,000 each year is for grants to the 
11.2 	Neighborhood Development Center. Of this 
11.3 	amount, the following amounts are designated 
11.4 	for the following areas:
11.5 	(i) $16,000,000 each year is for North 
11.6 	Minneapolis' West Broadway, Camden, or 
11.7 	other Northside neighborhoods. Of this 
11.8 	amount, $1,000,000 each year is for grants to 
11.9 	businesses with less than $100,000 in revenue 
11.10 	in the prior year;
11.11 	(ii) $13,500,000 each year is for South 
11.12 	Minneapolis' Lake Street, 38th and Chicago, 
11.13 	Franklin, Nicollet, and Riverside corridors. 
11.14 	Of this amount, $750,000 each year is for 
11.15 	grants to businesses with less than $100,000 
11.16 	in revenue in the prior year; and
11.17 	(iii) $10,000,000 each year is for St. Paul's 
11.18 	University Avenue, Midway, Eastside, or other 
11.19 	St. Paul neighborhoods. Of this amount, 
11.20 	$750,000 each year is for grants to businesses 
11.21 	with less than $100,000 in revenue in the prior 
11.22 	year.
11.23 	(aa) $15,150,000 each year is for the 
11.24 	PROMISE loan program. This is a onetime 
11.25 	appropriation and is available until June 30, 
11.26 	2027. Of this amount:
11.27 	(1) $150,000 each year is for administration 
11.28 	of the PROMISE loan program;
11.29 	(2) $3,000,000 each year is for grants in equal 
11.30 	amounts to each of the Minnesota Initiative 
11.31 	Foundations to serve businesses in greater 
11.32 	Minnesota; and
11.33 	(3) $12,000,000 each year is for grants to the 
11.34 	Metropolitan Economic Development 
12.1 	Association (MEDA). Of this amount, the 
12.2 	following amounts are designated for the 
12.3 	following areas:
12.4 	(i) $4,500,000 each year is for North 
12.5 	Minneapolis' West Broadway, Camden, or 
12.6 	other Northside neighborhoods;
12.7 	(ii) $4,500,000 each year is for South 
12.8 	Minneapolis' Lake Street, 38th and Chicago, 
12.9 	Franklin, Nicollet, and Riverside corridors; 
12.10 	and
12.11 	(iii) $3,000,000 each year is for St. Paul's 
12.12 	University Avenue, Midway, Eastside, or other 
12.13 	St. Paul neighborhoods.
12.14 	(bb) $1,500,000 each year is for a grant to the 
12.15 	Metropolitan Consortium of Community 
12.16 	Developers for the community wealth-building 
12.17 	grant program pilot project. Of this amount, 
12.18 	up to two percent is for administration and 
12.19 	monitoring of the community wealth-building 
12.20 	grant program pilot project. This is a onetime 
12.21 	appropriation.
12.22 	(cc) $250,000 each year is for the publication, 
12.23 	dissemination, and use of labor market 
12.24 	information under Minnesota Statutes, section 
12.25 	116J.401.
12.26 	(dd) $5,000,000 the first year is for a grant to 
12.27 	the Bloomington Port Authority to provide 
12.28 	funding for the Expo 2027 host organization. 
12.29 	The Bloomington Port Authority must enter 
12.30 	into an agreement with the host organization 
12.31 	over the use of money, which may be used for 
12.32 	activities, including but not limited to 
12.33 	finalizing the community dossier and staffing 
12.34 	the host organization and for infrastructure 
13.1 	design and planning, financial modeling, 
13.2 	development planning and coordination of 
13.3 	both real estate and public private partnerships, 
13.4 	and reimbursement of costs the Bloomington 
13.5 	Port Authority incurred. In selecting vendors 
13.6 	and exhibitors for Expo 2027, the host 
13.7 	organization shall prioritize outreach to, 
13.8 	collaboration with, and inclusion of businesses 
13.9 	that are majority owned by people of color, 
13.10 	women, and people with disabilities. The host 
13.11 	organization and Bloomington Port Authority 
13.12 	may be reimbursed for expenses 90 days prior 
13.13 	to encumbrance. This appropriation is 
13.14 	contingent on approval of the project by the 
13.15 	Bureau International des Expositions. If the 
13.16 	project is not approved by the Bureau 
13.17 	International des Expositions, the money shall 
13.18 	transfer to the Minnesota investment fund 
13.19 	under Minnesota Statutes, section 116J.8731. 
13.20 	Any unencumbered balance remaining at the 
13.21 	end of the first year does not cancel but is 
13.22 	available for the second year.
13.23 	(ee) $5,000,000 the first year is for a grant to 
13.24 	the Neighborhood Development Center for 
13.25 	small business programs, including training, 
13.26 	lending, business services, and real estate 
13.27 	programming; small business incubator 
13.28 	development in the Twin Cities and outside 
13.29 	the seven-county metropolitan area; and 
13.30 	technical assistance activities for partners 
13.31 	outside the seven-county metropolitan area; 
13.32 	and for high-risk, character-based loan capital 
13.33 	for nonrecourse loans. This is a onetime 
13.34 	appropriation. Any unencumbered balance 
13.35 	remaining at the end of the first year does not 
13.36 	cancel but is available for the second year.
14.1 	(ff) $5,000,000 the first year is for transfer to 
14.2 	the emerging developer fund account in the 
14.3 	special revenue fund. Of this amount, up to 
14.4 	five percent is for administration and 
14.5 	monitoring of the emerging developer fund 
14.6 	program under Minnesota Statutes, section 
14.7 	116J.9926, and the remainder is for a grant to 
14.8 	the Local Initiatives Support Corporation - 
14.9 	Twin Cities to serve as a partner organization 
14.10 	under the program. This is a onetime 
14.11 	appropriation.
14.12 	(gg) $5,000,000 the first year is for the 
14.13 	Canadian border counties economic relief 
14.14 	program under article 5. Of this amount, up 
14.15 	to $1,000,000 is for Tribal economic 
14.16 	development and $2,100,000 is for a grant to 
14.17 	Lake of the Woods County for the forgivable 
14.18 	loan program for remote recreational 
14.19 	businesses. This is a onetime appropriation 
14.20 	and is available until June 30, 2026.
14.21 	(hh) $1,000,000 each year is for a grant to 
14.22 	African Economic Development Solutions. 
14.23 	This is a onetime appropriation and is 
14.24 	available until June 30, 2026. Of this amount:
14.25 	(1) $500,000 each year is for a loan fund that 
14.26 	must address pervasive economic inequities 
14.27 	by supporting business ventures of 
14.28 	entrepreneurs in the African immigrant 
14.29 	community; and
14.30 	(2) $250,000 each year is for workforce 
14.31 	development and technical assistance, 
14.32 	including but not limited to business 
14.33 	development, entrepreneur training, business 
14.34 	technical assistance, loan packing, and 
14.35 	community development services.
15.1 	(ii) $1,500,000 each year is for a grant to the 
15.2 	Latino Economic Development Center. This 
15.3 	is a onetime appropriation and is available 
15.4 	until June 30, 2025. Of this amount:
15.5 	(1) $750,000 each year is to assist, support, 
15.6 	finance, and launch microentrepreneurs by 
15.7 	delivering training, workshops, and 
15.8 	one-on-one consultations to businesses; and
15.9 	(2) $750,000 each year is to guide prospective 
15.10 	entrepreneurs in their start-up process by 
15.11 	introducing them to key business concepts, 
15.12 	including business start-up readiness. Grant 
15.13 	proceeds must be used to offer workshops on 
15.14 	a variety of topics throughout the year, 
15.15 	including finance, customer service, 
15.16 	food-handler training, and food-safety 
15.17 	certification. Grant proceeds may also be used 
15.18 	to provide lending to business startups.
15.19 	(jj) $627,000 the first year is for a grant to 
15.20 	Community and Economic Development 
15.21 	Associates (CEDA) to provide funding for 
15.22 	economic development technical assistance 
15.23 	and economic development project grants to 
15.24 	small communities across rural Minnesota and 
15.25 	for CEDA to design, implement, market, and 
15.26 	administer specific types of basic community 
15.27 	and economic development programs tailored 
15.28 	to individual community needs. Technical 
15.29 	assistance grants shall be based on need and 
15.30 	given to communities that are otherwise 
15.31 	unable to afford these services. Of the amount 
15.32 	appropriated, up to $270,000 may be used for 
15.33 	economic development project implementation 
15.34 	in conjunction with the technical assistance 
15.35 	received. This is a onetime appropriation. Any 
16.1 	unencumbered balance remaining at the end 
16.2 	of the first year does not cancel but is available 
16.3 	the second year.
16.4 	(kk) $2,000,000 the first year is for a grant to 
16.5 	WomenVenture to:
16.6 	(1) support child care providers through 
16.7 	business training and shared services programs 
16.8 	and to create materials that could be used, free 
16.9 	of charge, for start-up, expansion, and 
16.10 	operation of child care businesses statewide, 
16.11 	with the goal of helping new and existing child 
16.12 	care businesses in underserved areas of the 
16.13 	state become profitable and sustainable; and
16.14 	(2) support business expansion for women 
16.15 	food entrepreneurs throughout Minnesota's 
16.16 	food supply chain to help stabilize and 
16.17 	strengthen their business operations, create 
16.18 	distribution networks, offer technical 
16.19 	assistance and support to beginning women 
16.20 	food entrepreneurs, develop business plans, 
16.21 	develop a workforce, research expansion 
16.22 	strategies, and for other related activities.
16.23 	Eligible uses of the money include but are not 
16.24 	limited to:
16.25 	(i) leasehold improvements;
16.26 	(ii) additions, alterations, remodeling, or 
16.27 	renovations to rented space;
16.28 	(iii) inventory or supplies;
16.29 	(iv) machinery or equipment purchases;
16.30 	(v) working capital; and
16.31 	(vi) debt refinancing.
17.1 	Money distributed to entrepreneurs may be 
17.2 	loans, forgivable loans, and grants. Of this 
17.3 	amount, up to five percent may be used for 
17.4 	the WomenVenture's technical assistance and 
17.5 	administrative costs. This is a onetime 
17.6 	appropriation and is available until June 30, 
17.7 	2026.
17.8 	By December 15, 2026, WomenVenture must 
17.9 	submit a report to the chairs and ranking 
17.10 	minority members of the legislative 
17.11 	committees with jurisdiction over agriculture 
17.12 	and employment and economic development. 
17.13 	The report must include a summary of the uses 
17.14 	of the appropriation, including the amount of 
17.15 	the appropriation used for administration. The 
17.16 	report must also provide a breakdown of the 
17.17 	amount of funding used for loans, forgivable 
17.18 	loans, and grants; information about the terms 
17.19 	of the loans issued; a discussion of how money 
17.20 	from repaid loans will be used; the number of 
17.21 	entrepreneurs assisted; and a breakdown of 
17.22 	how many entrepreneurs received assistance 
17.23 	in each county.
17.24 	(ll) $2,000,000 the first year is for a grant to 
17.25 	African Career, Education, and Resource, Inc., 
17.26 	for operational infrastructure and technical 
17.27 	assistance to small businesses. This 
17.28 	appropriation is available until June 30, 2025.
17.29 	(mm) $5,000,000 the first year is for a grant 
17.30 	to the African Development Center to provide 
17.31 	loans to purchase commercial real estate and 
17.32 	to expand organizational infrastructure. This 
17.33 	appropriation is available until June 30, 2025. 
17.34 	Of this amount:
18.1 	(1) $2,800,000 is for loans to purchase 
18.2 	commercial real estate targeted at African 
18.3 	immigrant small business owners;
18.4 	(2) $364,000 is for loan loss reserves to 
18.5 	support loan volume growth and attract 
18.6 	additional capital;
18.7 	(3) $836,000 is for increasing organizational 
18.8 	capacity;
18.9 	(4) $300,000 is for the safe 2 eat project of 
18.10 	inclusive assistance with required restaurant 
18.11 	licensing examinations; and
18.12 	(5) $700,000 is for a center for community 
18.13 	resources for language and technology 
18.14 	assistance for small businesses.
18.15 	(nn) $7,000,000 the first year is for grants to 
18.16 	the Minnesota Initiative Foundations to 
18.17 	capitalize their revolving loan funds, which 
18.18 	address unmet financing needs of for-profit 
18.19 	business start-ups, expansions, and ownership 
18.20 	transitions; nonprofit organizations; and 
18.21 	developers of housing to support the 
18.22 	construction, rehabilitation, and conversion 
18.23 	of housing units. Of the amount appropriated:
18.24 	(1) $1,000,000 is for a grant to the Southwest 
18.25 	Initiative Foundation;
18.26 	(2) $1,000,000 is for a grant to the West 
18.27 	Central Initiative Foundation;
18.28 	(3) $1,000,000 is for a grant to the Southern 
18.29 	Minnesota Initiative Foundation;
18.30 	(4) $1,000,000 is for a grant to the Northwest 
18.31 	Minnesota Foundation;
18.32 	(5) $2,000,000 is for a grant to the Initiative 
18.33 	Foundation of which $1,000,000 is for 
19.1 	redevelopment of the St. Cloud Youth and 
19.2 	Family Center; and
19.3 	(6) $1,000,000 is for a grant to the Northland 
19.4 	Foundation.
19.5 	(oo) $500,000 each year is for a grant to 
19.6 	Enterprise Minnesota, Inc., to reach and 
19.7 	deliver talent, leadership, employee retention, 
19.8 	continuous improvement, strategy, quality 
19.9 	management systems, revenue growth, and 
19.10 	manufacturing peer-to-peer advisory services 
19.11 	to small manufacturing companies employing 
19.12 	35 or fewer full-time equivalent employees. 
19.13 	This is a onetime appropriation. No later than 
19.14 	February 1, 2025, and February 1, 2026, 
19.15 	Enterprise Minnesota, Inc., must provide a 
19.16 	report to the chairs and ranking minority 
19.17 	members of the legislative committees with 
19.18 	jurisdiction over economic development that 
19.19 	includes:
19.20 	(1) the grants awarded during the past 12 
19.21 	months;
19.22 	(2) the estimated financial impact of the grants 
19.23 	awarded to each company receiving services 
19.24 	under the program;
19.25 	(3) the actual financial impact of grants 
19.26 	awarded during the past 24 months; and
19.27 	(4) the total amount of federal funds leveraged 
19.28 	from the Manufacturing Extension Partnership 
19.29 	at the United States Department of Commerce.
19.30 	(pp) $375,000 each year is for a grant to 
19.31 	PFund Foundation to provide grants to 
19.32 	LGBTQ+-owned small businesses and 
19.33 	entrepreneurs. Of this amount, up to five 
19.34 	percent may be used for PFund Foundation's 
20.1 	technical assistance and administrative costs. 
20.2 	This is a onetime appropriation and is 
20.3 	available until June 30, 2026. To the extent 
20.4 	practicable, money must be distributed by 
20.5 	PFund Foundation as follows:
20.6 	(1) at least 33.3 percent to businesses owned 
20.7 	by members of racial minority communities; 
20.8 	and
20.9 	(2) at least 33.3 percent to businesses outside 
20.10 	of the seven-county metropolitan area as 
20.11 	defined in Minnesota Statutes, section 
20.12 	473.121, subdivision 2.
20.13 	(qq) $125,000 each year is for a grant to 
20.14 	Quorum to provide business support, training, 
20.15 	development, technical assistance, and related 
20.16 	activities for LGBTQ+-owned small 
20.17 	businesses that are recipients of a PFund 
20.18 	Foundation grant. Of this amount, up to five 
20.19 	percent may be used for Quorum's technical 
20.20 	assistance and administrative costs. This is a 
20.21 	onetime appropriation and is available until 
20.22 	June 30, 2026.
20.23 	(rr) $5,000,000 the first year is for a grant to 
20.24 	the Metropolitan Economic Development 
20.25 	Association (MEDA) for statewide business 
20.26 	development and assistance services to 
20.27 	minority-owned businesses. This is a onetime 
20.28 	appropriation. Any unencumbered balance 
20.29 	remaining at the end of the first year does not 
20.30 	cancel but is available the second year. Of this 
20.31 	amount:
20.32 	(1) $3,000,000 is for a revolving loan fund to 
20.33 	provide additional minority-owned businesses 
20.34 	with access to capital; and
21.1 	(2) $2,000,000 is for operating support 
21.2 	activities related to business development and 
21.3 	assistance services for minority business 
21.4 	enterprises.
21.5 	By February 1, 2025, MEDA shall report to 
21.6 	the commissioner and the chairs and ranking 
21.7 	minority members of the legislative 
21.8 	committees with jurisdiction over economic 
21.9 	development policy and finance on the loans 
21.10 	and operating support activities, including 
21.11 	outcomes and expenditures, supported by the 
21.12 	appropriation under this paragraph.
21.13 	(ss) $2,500,000 each year is for a grant to a 
21.14 	Minnesota-based automotive component 
21.15 	manufacturer and distributor specializing in 
21.16 	electric vehicles and sensor technology that 
21.17 	manufactures all of their parts onshore to 
21.18 	expand their manufacturing. The grant 
21.19 	recipient under this paragraph shall submit 
21.20 	reports on the uses of the money appropriated, 
21.21 	the number of jobs created due to the 
21.22 	appropriation, wage information, and the city 
21.23 	and state in which the additional 
21.24 	manufacturing activity was located to the 
21.25 	chairs and ranking minority members of the 
21.26 	legislative committees with jurisdiction over 
21.27 	economic development. An initial report shall 
21.28 	be submitted by December 15, 2023, and a 
21.29 	final report is due by December 15, 2025. This 
21.30 	is a onetime appropriation.
21.31 	(tt)(1) $125,000 each year is for grants to the 
21.32 	Latino Chamber of Commerce Minnesota to 
21.33 	support the growth and expansion of small 
21.34 	businesses statewide. Funds may be used for 
22.1 	the cost of programming, outreach, staffing, 
22.2 	and supplies. This is a onetime appropriation.
22.3 	(2) By January 15, 2026, the Latino Chamber 
22.4 	of Commerce Minnesota must submit a report 
22.5 	to the legislative committees with jurisdiction 
22.6 	over economic development that details the 
22.7 	use of grant funds and the grant's economic 
22.8 	impact.
22.9 	(uu) $175,000 the first year is for a grant to 
22.10 	the city of South St. Paul to study options for 
22.11 	repurposing the 1927 American Legion 
22.12 	Memorial Library after the property is no 
22.13 	longer used as a library. This appropriation is 
22.14 	available until the project is completed or 
22.15 	abandoned, subject to Minnesota Statutes, 
22.16 	section 16A.642.
22.17 	(vv) $250,000 the first year is for a grant to 
22.18 	LatinoLEAD for organizational 
22.19 	capacity-building.
22.20 	(ww) $80,000 the first year is for a grant to 
22.21 	the Neighborhood Development Center for 
22.22 	small business competitive grants to software 
22.23 	companies working to improve employee 
22.24 	engagement and workplace culture and to 
22.25 	reduce turnover.
22.26 	(xx)(1) $3,000,000 in the first year is for a 
22.27 	grant to the Center for Economic Inclusion for 
22.28 	strategic, data-informed investments in job 
22.29 	creation strategies that respond to the needs 
22.30 	of underserved populations statewide. This 
22.31 	may include forgivable loans, revenue-based 
22.32 	financing, and equity investments for 
22.33 	entrepreneurs with barriers to growth. Of this 
22.34 	amount, up to five percent may be used for 
23.1 	the center's technical assistance and 
23.2 	administrative costs. This appropriation is 
23.3 	available until June 30, 2025.
23.4 	(2) By January 15, 2026, the Center for 
23.5 	Economic Inclusion shall submit a report on 
23.6 	the use of grant funds, including any loans 
23.7 	made, to the legislative committees with 
23.8 	jurisdiction over economic development.
23.9 	(yy) $500,000 each the first year is for a grant 
23.10 	to the Asian Economic Development 
23.11 	Association for asset building and financial 
23.12 	empowerment for entrepreneurs and small 
23.13 	business owners, small business development 
23.14 	and technical assistance, and cultural 
23.15 	placemaking. This is a onetime appropriation.
23.16 	(zz) $500,000 each year is for a grant to 
23.17 	Isuroon to support primarily African 
23.18 	immigrant women with entrepreneurial 
23.19 	training to start, manage, and grow 
23.20 	self-sustaining microbusinesses, develop 
23.21 	incubator space for these businesses, and 
23.22 	provide support with financial and language 
23.23 	literacy, systems navigation to eliminate 
23.24 	capital access disparities, marketing, and other 
23.25 	technical assistance. This is a onetime 
23.26 	appropriation.

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

23.2923.28
	Sec. 3. EXPLORE MINNESOTA TOURISM
 	$
	40,954,000
40,554,000
	$
	21,369,000
	
23.30 	(a) $500,000 each year must be matched from 
23.31 	nonstate sources to develop maximum private 
23.32 	sector involvement in tourism. Each $1 of state 
23.33 	incentive must be matched with $6 of private 
23.34 	sector money. "Matched" means revenue to 
24.1 	the state or documented in-kind, soft match, 
24.2 	or cash expenditures directly expended to 
24.3 	support Explore Minnesota Tourism under 
24.4 	Minnesota Statutes, section 116U.05. The 
24.5 	incentive in fiscal year 2024 is based on fiscal 
24.6 	year 2023 private sector contributions. The 
24.7 	incentive in fiscal year 2025 is based on fiscal 
24.8 	year 2024 private sector contributions. This 
24.9 	incentive is ongoing.
24.10 	(b) $11,000,000 the first year is for the 
24.11 	development of Explore Minnesota for 
24.12 	Business under Minnesota Statutes, section 
24.13 	116U.07, to market the overall livability and 
24.14 	economic opportunities of Minnesota. This is 
24.15 	a onetime appropriation.
24.16 	(c) $5,500,000 each year is for the 
24.17 	development of new initiatives for Explore 
24.18 	Minnesota Tourism. If the amount in the first 
24.19 	year is insufficient, the amount in the second 
24.20 	year is available in the first year. This is a 
24.21 	onetime appropriation.
24.22 	(d) $6,047,000 $5,647,000 the first year and 
24.23 	$600,000 the second year is for grants for 
24.24 	infrastructure and associated costs for cultural 
24.25 	festivals and events, including but not limited 
24.26 	to buildout, permits, sanitation and 
24.27 	maintenance services, transportation, staffing, 
24.28 	event programming, public safety, facilities 
24.29 	and equipment rentals, signage, and insurance. 
24.30 	This is a onetime appropriation. Of this 
24.31 	amount:
24.32 	(1) $1,847,000 the first year is for a grant to 
24.33 	the Minneapolis Downtown Council for the 
24.34 	Taste of Minnesota event;
25.1 	(2) $1,200,000 the first year is for a grant to 
25.2 	the Stairstep Foundation for African American 
25.3 	cultural festivals and events;
25.4 	(3) $1,200,000 $800,000 the first year is for 
25.5 	grants for Somali community and cultural 
25.6 	festivals and events, including festivals and 
25.7 	events in greater Minnesota, as follows:
25.8 	(i) $400,000 is for a grant to Ka Joog; and
25.9 	(ii) $400,000 is for a grant to the Somali 
25.10 	Museum of Minnesota; and
25.11 	(iii) $400,000 is for a grant to ESHARA;
25.12 	(4) $1,200,000 the first year is for a grant to 
25.13 	West Side Boosters for Latino cultural 
25.14 	festivals and events; and
25.15 	(5) $600,000 the first year and $600,000 the 
25.16 	second year are for grants to the United 
25.17 	Hmong Family, Inc. for the Hmong 
25.18 	International Freedom Festival event.
25.19 	(e) Money for marketing grants is available 
25.20 	either year of the biennium. Unexpended grant 
25.21 	money from the first year is available in the 
25.22 	second year.
25.23 	(f) The base for Explore Minnesota is 
25.24 	$17,023,000 from the general fund in fiscal 
25.25 	year 2026 and each year thereafter.

25.26 	Sec. 4. APPROPRIATIONS.
 25.27 		Subdivision 1.Department of Employment and Economic Development. $6,797,000 
25.28 	in fiscal year 2025 is appropriated from the general fund to the commissioner of employment 
25.29 	and economic development. This appropriation is onetime and in addition to the amounts 
25.30 	appropriated in Laws 2023, chapter 53. Of this amount:
25.31 	(1) $500,000 is for a grant to the Asian Economic Development Association for asset 
25.32 	building and financial empowerment for entrepreneurs and small business owners, small 
26.1 	business development and technical assistance, and cultural placemaking. This amount is 
26.2 	available until June 30, 2027;
26.3 	(2) $497,000 is for a grant to Propel Nonprofits for a microloan capital program to 
26.4 	provide assistance to organizations that primarily serve historically underserved communities, 
26.5 	including loans, forgivable loans, grants for working capital or regranting, and real estate 
26.6 	and technical assistance. Up to five percent of this amount may be used by the grantee for 
26.7 	administrative costs;
26.8 	(3) $1,000,000 is for a grant to the New American Development Center to provide small 
26.9 	businesses and entrepreneurs with technical assistance, financial education, training, and 
26.10 	lending and to build the grantee's capacity;
26.11 	(4) $1,000,000 is for a grant to the Entrepreneur Fund to capitalize their revolving loan 
26.12 	funds to address unmet financing needs in northeast Minnesota of for-profit business startups, 
26.13 	expansions, and ownership transitions;
26.14 	(5) $500,000 is for a grant to the Coalition of Asian American Leaders to support 
26.15 	outreach, training, technical assistance, peer network development, and direct financial 
26.16 	assistance for Asian Minnesotan women entrepreneurs. This amount is available until June 
26.17 	30, 2026;
26.18 	(6) $300,000 is for a grant to Fortis Capital for a revolving loan fund to provide 
26.19 	risk-mitigating capital for commercial development activities in underserved communities 
26.20 	and to entrepreneurs from disadvantaged groups statewide. This amount is available until 
26.21 	expended and up to ten percent of the amount may be used for administrative costs;
26.22 	(7) $500,000 is for a grant to Arrowhead Economic Opportunity Agency to develop a 
26.23 	new service center; and
26.24 	(8) $2,500,000 is for Launch Minnesota and is available until June 30, 2027. Of this 
26.25 	amount:
26.26 	(i) $1,500,000 is for innovation grants to eligible Minnesota entrepreneurs or start-up 
26.27 	businesses to assist with their operating needs;
26.28 	(ii) $500,000 is for administration of Launch Minnesota; and
26.29 	(iii) $500,000 is for grantee activities at Launch Minnesota.
26.30 		Subd. 2.Explore Minnesota. $3,425,000 in fiscal year 2025 is appropriated from the 
26.31 	general fund to Explore Minnesota. This appropriation is in addition to the amounts 
27.1 	appropriated in Laws 2023, chapter 53, and, except as otherwise specified, is onetime. Of 
27.2 	this amount:
27.3 	(1) $725,000 is for Explore Minnesota Film. The base for this appropriation is $525,000 
27.4 	in fiscal year 2026 and $525,000 in fiscal year 2027;
27.5 	(2) $300,000 is for Explore Minnesota Film for the film production jobs program under 
27.6 	Minnesota Statutes, section 116U.26. The base for this appropriation is $300,000 in fiscal 
27.7 	year 2026 and $300,000 in fiscal year 2027;
27.8 	(3) $400,000 is for a grant to Ka Joog for Somali community and cultural festivals and 
27.9 	events, including festivals and events in greater Minnesota;
27.10 	(4) $1,000,000 is for a grant to Minnesota Sports and Events for the World Junior Hockey 
27.11 	Championships; and
27.12 	(5) $1,000,000 is for a grant to 2026 Special Olympics USA Games. This amount is 
27.13 	available until June 30, 2027.

27.14 	Sec. 5. CANCELLATIONS OF PRIOR APPROPRIATIONS.
 27.15 	The $5,000,000 fiscal year 2024 appropriation from the general fund in Laws 2023, 
27.16 	chapter 53, article 20, section 2, subdivision 2, paragraph (dd), is canceled.

27.17 	ARTICLE 2
27.18 	ECONOMIC DEVELOPMENT POLICY

27.19 	Section 1. Minnesota Statutes 2022, section 116J.435, subdivision 3, is amended to read:
27.20 		Subd. 3.Grant program established. (a) The commissioner shall make competitive
27.21 	grants to local governmental units to acquire and prepare land on which public infrastructure 
27.22 	required to support an eligible project will be located, including demolition of structures 
27.23 	and remediation of any hazardous conditions on the land, or to predesign, design, acquire,
27.24 	and to construct, furnish, and equip public infrastructure required to support an eligible 
27.25 	project. The local governmental unit receiving a grant must provide for the remainder of 
27.26 	the public infrastructure costs from other sources. The commissioner may waive the 
27.27 	requirements related to an eligible project under subdivision 2 if a project would be eligible 
27.28 	under this section but for the fact that its location requires infrastructure improvements to 
27.29 	residential development.
28.1 	(b) The amount of a grant may not exceed the lesser of the cost of the public infrastructure 
28.2 	or 50 percent of the sum of the cost of the public infrastructure plus the cost of the completed 
28.3 	eligible project.
28.4 	(c) The purpose of the program is to keep or enhance jobs in the area, increase the tax 
28.5 	base, or to expand or create new economic development through the growth of new 
28.6 	innovative businesses and organizations.

28.7 	Sec. 2. Minnesota Statutes 2022, section 116J.435, subdivision 4, is amended to read:
28.8 		Subd. 4.Application. (a) The commissioner must develop forms and procedures for 
28.9 	soliciting and reviewing applications for grants under this section. At a minimum, a local 
28.10 	governmental unit must include the following information in its application a resolution 
28.11 	certifying that the money required to be supplied by the local governmental unit to complete 
28.12 	the public infrastructure project is available and committed. The commissioner must evaluate 
28.13 	complete applications for eligible projects using the following criteria:
28.14 	(1) a resolution of its governing body certifying that the money required to be supplied 
28.15 	by the local governmental unit to complete the public infrastructure is available and 
28.16 	committed the project is an eligible project as defined under subdivision 2;
28.17 	(2) a detailed estimate, along with necessary supporting evidence, of the total development 
28.18 	costs for the public infrastructure and eligible project the project is expected to result in or 
28.19 	will attract substantial public and private capital investment and provide substantial economic 
28.20 	benefit to the county or city in which the project would be located;
28.21 	(3) an assessment of the potential or likely use of the site for innovative business activities 
28.22 	after completion of the public infrastructure and eligible project the project is not relocating 
28.23 	substantially the same operation from another location in the state, unless the commissioner 
28.24 	determines the project cannot be reasonably accommodated within the county or city in 
28.25 	which the business is currently located, or the business would otherwise relocate to another 
28.26 	state; and
28.27 	(4) a timeline indicating the major milestones of the public infrastructure and eligible 
28.28 	project and their anticipated completion dates; the project is expected to create or retain 
28.29 	full-time jobs.
28.30 	(5) a commitment from the governing body to repay the grant if the milestones are not 
28.31 	realized by the completion date identified in clause (4); and
28.32 	(6) any additional information or material the commissioner prescribes.
29.1 	(b) The determination of whether to make a grant under subdivision 3 for a site is within 
29.2 	the discretion of the commissioner, subject to this section. The commissioner's decisions 
29.3 	and application of the priorities criteria are not subject to judicial review, except for abuse 
29.4 	of discretion.

29.5 	Sec. 3. Minnesota Statutes 2022, section 116J.5492, subdivision 2, is amended to read:
29.6 		Subd. 2.Membership. (a) The advisory committee consists of 18 voting members and 
29.7 	eight ex officio nonvoting members.
29.8 	(b) The voting members of the advisory committee are appointed by the commissioner 
29.9 	of employment and economic development, except as specified below:
29.10 	(1) two members of the senate, one appointed by the majority leader of the senate and 
29.11 	one appointed by the minority leader of the senate;
29.12 	(2) two members of the house of representatives, one appointed by the speaker of the 
29.13 	house of representatives and one appointed by the minority leader of the house of 
29.14 	representatives;
29.15 	(3) one representative of the Prairie Island Indian community;
29.16 	(4) four representatives of impacted communities, of which two must represent counties 
29.17 	and two must represent municipalities, and, to the extent possible, of the impacted facilities 
29.18 	in those communities, at least one must be a coal plant, at least one must be a nuclear plant, 
29.19 	and at least one must be a natural gas plant;
29.20 	(5) three representatives of impacted workers at impacted facilities;
29.21 	(6) one representative of impacted workers employed by companies that, under contract, 
29.22 	regularly perform construction, maintenance, or repair work at an impacted facility;
29.23 	(7) one representative with professional economic development or workforce retraining 
29.24 	experience;
29.25 	(8) two representatives of utilities that operate an impacted facility;
29.26 	(9) one representative from a nonprofit organization with expertise and experience 
29.27 	delivering energy efficiency and conservation programs; and
29.28 	(10) one representative of a school district facing revenue loss due to energy transition; 
29.29 	and
29.30 	(10) (11) one representative from the Coalition of Utility Cities.
29.31 	(c) The ex officio nonvoting members of the advisory committee consist of:
30.1 	(1) the governor or the governor's designee;
30.2 	(2) the commissioner of employment and economic development or the commissioner's 
30.3 	designee;
30.4 	(3) the commissioner of commerce or the commissioner's designee;
30.5 	(4) the commissioner of labor and industry or the commissioner's designee;
30.6 	(5) the commissioner of revenue or the commissioner's designee;
30.7 	(6) the executive secretary of the Public Utilities Commission or the secretary's designee;
30.8 	(7) the commissioner of the Pollution Control Agency or the commissioner's designee; 
30.9 	and
30.10 	(8) the chancellor of the Minnesota State Colleges and Universities or the chancellor's 
30.11 	designee.

30.12 	Sec. 4. Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 1, is amended 
30.13 	to read:
30.14 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms in this 
30.15 	subdivision have the meanings given.
30.16 	(b) "Commissioner" means the commissioner of employment and economic development.
30.17 	(c) "Partner organizations" or "partners" means:
30.18 	(1) nonprofit organizations or public entities, including higher education institutions, 
30.19 	engaged in business development or economic development;
30.20 	(2) community development financial institutions; or
30.21 	(3) community development corporations; and
30.22 	(4) Tribal economic development entities.
30.23 	(d) "Small business" has the meaning given in section 3 of the Small Business Act, 
30.24 	United States Code, title 15, section 632.
30.25 	(e) "Underserved populations and geographies" means individuals who are Black, 
30.26 	Indigenous, people of color, veterans, people with disabilities, people who are LGBTQ+, 
30.27 	and low-income individuals and includes people from rural Minnesota.

31.1 	Sec. 5. Minnesota Statutes 2023 Supplement, section 116J.682, subdivision 3, is amended 
31.2 	to read:
31.3 		Subd. 3.Small business assistance partnerships grants. (a) The commissioner shall 
31.4 	make small business assistance partnerships grants to local and regional community-based 
31.5 	organizations to provide small business development and technical assistance services to 
31.6 	entrepreneurs and small business owners. The commissioner must prioritize applications 
31.7 	that provide services to underserved populations and geographies.
31.8 	(b) Grantees shall use the grant funds to provide high-quality, free or low-cost
31.9 	professional business development and technical assistance services that support the start-up, 
31.10 	growth, and success of Minnesota's entrepreneurs and small business owners.
31.11 	(c) Grantees may use up to 15 percent of grant funds for expenses incurred while 
31.12 	administering the grant, including but not limited to expenses related to technology, utilities, 
31.13 	legal services, training, accounting, insurance, financial management, benefits, reporting, 
31.14 	servicing of loans, and audits.

31.15 	Sec. 6. Minnesota Statutes 2023 Supplement, section 116J.8733, is amended to read:
31.16 	116J.8733 MINNESOTA EXPANDING OPPORTUNITY FUND PROGRAM.
31.17 		Subdivision 1.Establishment. The Minnesota Expanding Opportunity Fund Program 
31.18 	is established to capitalize Minnesota nonprofit corporations, Tribal economic development 
31.19 	entities, and community development financial institutions to increase lending activities 
31.20 	with Minnesota small businesses.
31.21 		Subd. 2.Long-term loans. The department may make long-term loans of ten to 12 years 
31.22 	at 0.5 percent or lower interest rates to nonprofit corporations, Tribal economic development 
31.23 	entities, and community development financial institutions to enable nonprofit corporations, 
31.24 	Tribal economic development entities, and community development financial institutions
31.25 	to make more loans to Minnesota small businesses. The department may use the interest 
31.26 	received to offset the cost of administering small business lending programs.
31.27 		Subd. 3.Loan eligibility; nonprofit corporation. (a) The eligible nonprofit corporation, 
31.28 	Tribal economic development entity, or community development financial institution must 
31.29 	not meet the definition of recipient under section 116J.993, subdivision 6.
31.30 	(b) The commissioner may enter into loan agreements with Minnesota nonprofit 
31.31 	corporations, Tribal economic development entities, and community development financial 
31.32 	institutions that apply to participate in the Minnesota Expanding Opportunity Fund Program. 
31.33 	The commissioner shall evaluate applications from applicant nonprofit corporations, Tribal 
32.1 	economic development entities, and community development financial institutions. In 
32.2 	evaluating applications, the department must consider, among other things, whether the 
32.3 	nonprofit corporation, Tribal economic development entity, or community development 
32.4 	financial institution:
32.5 	(1) meets the statutory definition of a community development financial institution as 
32.6 	defined in section 103 of the Riegle Community Development and Regulatory Improvement 
32.7 	Act of 1994, United States Code, title 12, section 4702;
32.8 	(2) has a board of directors or loan or credit committee that includes citizens experienced 
32.9 	in small business services and community development;
32.10 	(3) has the technical skills to analyze small business loan requests;
32.11 	(4) is familiar with other available public and private funding sources and economic 
32.12 	development programs;
32.13 	(5) is enrolled in one or more eligible federally funded state programs; and
32.14 	(6) has the administrative capacity to manage a loan portfolio.
32.15 		Subd. 4.Revolving loan fund. (a) The commissioner shall establish a revolving loan 
32.16 	fund to make loans to nonprofit corporations, Tribal economic development entities, and 
32.17 	community development financial institutions for the purpose of increasing nonprofit 
32.18 	corporation, Tribal economic development entity, and community development financial 
32.19 	institution capital and lending activities with Minnesota small businesses.
32.20 	(b) Nonprofit corporations, Tribal economic development entities, and community 
32.21 	development financial institutions that receive loans from the commissioner under the 
32.22 	program must establish appropriate accounting practices for the purpose of tracking eligible 
32.23 	loans.
32.24 		Subd. 5.Loan portfolio administration. (a) The fee or interest rate charged by a 
32.25 	nonprofit corporation, Tribal economic development entity, or community development 
32.26 	financial institution for a loan under this subdivision must not exceed the Wall Street Journal 
32.27 	prime rate plus twoten percent. A nonprofit corporation, Tribal economic development 
32.28 	entity, or community development financial institution participating in the Minnesota 
32.29 	Expanding Opportunity Fund Program may charge a loan closing fee equal to or less than 
32.30 	two one percent of the loan value.
32.31 	(b) The nonprofit corporation, Tribal economic development entity, or community 
32.32 	development financial institution may retain all earnings from fees and interest from loans 
32.33 	to small businesses.
33.1 	(c) The department must provide the nonprofit corporation, Tribal economic development 
33.2 	entity, or community development financial institution making the loan with a fee equal to 
33.3 	one percent of the loan value for every loan closed to offset related expenses for loan 
33.4 	processing, loan servicing, legal filings, and reporting.
33.5 		Subd. 6.Cooperation. A nonprofit corporation, Tribal economic development entity, 
33.6 	or community development financial institution that receives a program loan shall cooperate 
33.7 	with other organizations, including but not limited to community development corporations, 
33.8 	community action agencies, and the Minnesota small business development centers.
33.9 		Subd. 7.Reporting requirements. (a) A nonprofit corporation, Tribal economic 
33.10 	development entity, or community development financial institution that receives a program 
33.11 	loan must submit an annual report to the commissioner by February 15 of each year that 
33.12 	includes:
33.13 	(1) the number of businesses to which a loan was made;
33.14 	(2) a description of businesses supported by the program;
33.15 	(3) demographic information, as specified by the commissioner, regarding each borrower;
33.16 	(4) an account of loans made during the calendar year;
33.17 	(5) the program's impact on job creation and retention;
33.18 	(6) the source and amount of money collected and distributed by the program;
33.19 	(7) the program's assets and liabilities; and
33.20 	(8) an explanation of administrative expenses.
33.21 	(b) A nonprofit corporation, Tribal economic development entity, or community 
33.22 	development financial institution that receives a program loan must provide for an 
33.23 	independent annual audit to be performed in accordance with generally accepted accounting 
33.24 	practices and auditing standards and submit a copy of each annual audit report to the 
33.25 	commissioner.

33.26 	Sec. 7. Minnesota Statutes 2023 Supplement, section 116J.8751, is amended by adding a 
33.27 	subdivision to read:
33.28 		Subd. 10.Expiration. This section expires June 30, 2027.

34.1 	Sec. 8. Minnesota Statutes 2022, section 116M.18, is amended to read:
34.2 	116M.18 MINNESOTA EMERGING ENTREPRENEUR PROGRAM.
34.3 		Subdivision 1.Establishment. The Minnesota emerging entrepreneur program is 
34.4 	established to award grants to nonprofit corporations, Tribal economic development entities, 
34.5 	and community development financial institutions to fund loans to businesses owned by 
34.6 	minority or low-income persons, women, veterans, or people with disabilities.
34.7 		Subd. 1a.Statewide loans. To the extent there is sufficient eligible demand, loans shall 
34.8 	be made so that an approximately equal dollar amount of loans are made to businesses in 
34.9 	the metropolitan area as in the nonmetropolitan area. After March 31 of each fiscal year, 
34.10 	the department may allow loans to be made anywhere in the state without regard to 
34.11 	geographic area.
34.12 		Subd. 1b.Grants. The department shall make grants to nonprofit corporations, Tribal 
34.13 	economic development entities, and community development financial institutions to fund 
34.14 	loans to businesses owned by minority or low-income persons, women, veterans, or people 
34.15 	with disabilities to encourage private investment, to provide jobs for minority and low-income 
34.16 	persons, to create and strengthen minority business enterprises, and to promote economic 
34.17 	development in a low-income area.
34.18 		Subd. 2. Grant eligibility; nonprofit corporation. (a) The department may enter into 
34.19 	agreements with nonprofit corporations, Tribal economic development entities, and 
34.20 	community development financial institutions to fund loans the nonprofit corporation, Tribal 
34.21 	economic development entity, or community development financial institution makes to 
34.22 	businesses owned by minority or low-income persons, women, veterans, or people with 
34.23 	disabilities. The department shall evaluate applications from nonprofit corporations, Tribal 
34.24 	economic development entities, and community development financial institutions. In 
34.25 	evaluating applications, the department must consider, among other things, whether the 
34.26 	nonprofit corporation, Tribal economic development entity, or community development 
34.27 	financial institution:
34.28 	(1) has a board of directors that includes citizens experienced in business and community 
34.29 	development, minority business enterprises, addressing racial income disparities, and creating 
34.30 	jobs for low-income and minority persons;
34.31 	(2) has the technical skills to analyze projects;
34.32 	(3) is familiar with other available public and private funding sources and economic 
34.33 	development programs;
35.1 	(4) can initiate and implement economic development projects;
35.2 	(5) can establish and administer a revolving loan account or has operated a revolving 
35.3 	loan account;
35.4 	(6) can work with job referral networks which assist minority and low-income persons; 
35.5 	and
35.6 	(7) has established relationships with minority communities.
35.7 	(b) The department shall review existing agreements with nonprofit corporations, Tribal 
35.8 	economic development entities, and community development financial institutions every 
35.9 	five years and may renew or terminate the agreement based on the review. In making its 
35.10 	review, the department shall consider, among other criteria, the criteria in paragraph (a).
35.11 	The department shall open the program to new applicants every two years.
35.12 		Subd. 3.Revolving loan fund. (a) The department shall establish a revolving loan fund 
35.13 	to make grants to nonprofit corporations, Tribal economic development entities, and 
35.14 	community development financial institutions for the purpose of making loans to businesses 
35.15 	owned by minority or low-income persons, women, veterans, or people with disabilities, 
35.16 	and to support minority business enterprises and job creation for minority and low-income 
35.17 	persons.
35.18 	(b) Nonprofit corporations, Tribal economic development entities, and community 
35.19 	development financial institutions that receive grants from the department under the program 
35.20 	must establish a commissioner-certified revolving loan fund for the purpose of making 
35.21 	eligible loans.
35.22 	(c) Eligible business enterprises include, but are not limited to, technologically innovative 
35.23 	industries, value-added manufacturing, and information industries.
35.24 	(d) Loan applications given preliminary approval by the nonprofit corporation, Tribal 
35.25 	economic development entity, or community development financial institution must be 
35.26 	forwarded to the department for approval. The commissioner must give final approval for 
35.27 	each loan made by the nonprofit corporation.Nonprofit corporations, Tribal economic 
35.28 	development entities, and community development financial institutions designated as 
35.29 	preferred partners do not need final approval by the commissioner. All other loans must be 
35.30 	approved by the commissioner and the commissioner must make approval decisions within 
35.31 	20 days of receiving a loan application unless the application contains insufficient information 
35.32 	to make an approval decision. The amount of the state funds contributed to any loan may 
36.1 	not exceed 50 percent of each loan. The commissioner must develop the criteria necessary 
36.2 	to receive loan forgiveness.
36.3 		Subd. 4.Business loan criteria. (a) The criteria in this subdivision apply to loans made 
36.4 	by nonprofit corporations, Tribal economic development entities, and community 
36.5 	development financial institutions under the program.
36.6 	(b) Loans must be made to businesses that are not likely to undertake a project for which 
36.7 	loans are sought without assistance from the program.
36.8 	(c) A loan must be used to support a business owned by a minority or a low-income 
36.9 	person, woman, veteran, or a person with disabilities. Priority must be given for loans to 
36.10 	the lowest income areas.
36.11 	(d) The minimum state contribution to a loan is $5,000 and the maximum is $150,000.
36.12 	(e) The state contribution must be matched by at least an equal amount of new private 
36.13 	investment.
36.14 	(f) A loan may not be used for a retail development project.
36.15 	(g) The business must agree to work with job referral networks that focus on minority 
36.16 	and low-income applicants.
36.17 	(h) Up to ten percent of a loan's principal amount may be forgiven if the department 
36.18 	approves and the borrower has met lender and agency criteria, including being current with 
36.19 	all payments, for at least two years. The commissioner must develop the criteria for receiving 
36.20 	loan forgiveness.
36.21 		Subd. 4a.Microenterprise loan. (a) Program grants may be used to make microenterprise 
36.22 	loans to small, beginning businesses, including a sole proprietorship. Microenterprise loans 
36.23 	are subject to this section except that:
36.24 	(1) they may also be made to qualified retail businesses;
36.25 	(2) they may be made for a minimum of $5,000 and a maximum of $35,000 $40,000;
36.26 	(3) in a low-income area, they may be made for a minimum of $5,000 and a maximum 
36.27 	of $50,000 $55,000; and
36.28 	(4) they do not require a match.
36.29 	(b) Up to ten percent of a loan's principal amount may be forgiven if the department 
36.30 	approves and the borrower has met lender criteria, including being current with all payments, 
36.31 	for at least two years.
37.1 		Subd. 5.Revolving fund administration. (a) The department shall establish a minimum 
37.2 	interest rate or fee for loans or guarantees to ensure that necessary loan administration costs 
37.3 	are covered. The interest rate charged by a nonprofit corporation, Tribal economic 
37.4 	development entity, or community development financial institution for a loan under this 
37.5 	subdivision must not exceed the Wall Street Journal prime rate plus four two percent, with 
37.6 	a maximum rate of ten percent. For a loan under this subdivision, the nonprofit corporation, 
37.7 	Tribal economic development entity, or community development financial institution may 
37.8 	charge a loan origination fee equal to or less than one percent of the loan value. The nonprofit 
37.9 	corporation, Tribal economic development entity, or community development financial 
37.10 	institution may retain the amount of the origination fee.
37.11 	(b) Loan repayment of principal must be paid to the department for deposit in the 
37.12 	revolving loan fund. Loan interest payments must be deposited in a revolving loan fund 
37.13 	created by the nonprofit corporation, Tribal economic development entity, or community 
37.14 	development financial institution originating the loan being repaid for further distribution 
37.15 	or use, consistent with the criteria of this section.
37.16 	(c) Administrative expenses of the nonprofit corporations, Tribal economic development 
37.17 	entities, and community development financial institutions with whom the department enters 
37.18 	into agreements, including expenses incurred by a nonprofit corporation, Tribal economic 
37.19 	development entity, or community development financial institution in providing financial, 
37.20 	technical, managerial, and marketing assistance to a business enterprise receiving a loan 
37.21 	under subdivision 4, may be paid out of the interest earned on loans and out of interest 
37.22 	earned on money invested by the state Board of Investment under section 116M.16, 
37.23 	subdivision 2, as may be provided by the department.
37.24 	(d) The department must provide the nonprofit corporation, Tribal economic development 
37.25 	entity, or community development financial institution making the loan with a fee equal to 
37.26 	one percent of the loan value for every loan closed to offset related expenses for loan 
37.27 	processing, loan servicing, legal filings, and reporting.
37.28 		Subd. 7.Cooperation. A nonprofit corporation, Tribal economic development entity, 
37.29 	or community development financial institution that receives a program grant shall cooperate 
37.30 	with other organizations, including but not limited to, community development corporations, 
37.31 	community action agencies, and the Minnesota small business development centers.
37.32 		Subd. 8.Reporting requirements. A nonprofit corporation, Tribal economic 
37.33 	development entity, or community development financial institution that receives a program 
37.34 	grant shall:
38.1 	(1) submit an annual report to the department by February 15 of each year that includes 
38.2 	a description of businesses supported by the grant program, an account of loans made during 
38.3 	the calendar year, the program's impact on minority business enterprises and job creation 
38.4 	for minority persons and low-income persons, the source and amount of money collected 
38.5 	and distributed by the program, the program's assets and liabilities, and an explanation of 
38.6 	administrative expenses; and
38.7 	(2) provide for an independent annual audit to be performed in accordance with generally 
38.8 	accepted accounting practices and auditing standards and submit a copy of each annual 
38.9 	audit report to the department.
38.10 		Subd. 9.Small business emergency loan account. The small business emergency loan 
38.11 	account is created as an account in the special revenue fund.

38.12 	Sec. 9. [116U.255] EXPLORE MINNESOTA FILM.
38.13 		Subdivision 1.Office established; director. (a) Explore Minnesota Film is established 
38.14 	as an office within Explore Minnesota.
38.15 	(b) The director of Explore Minnesota shall appoint the director of Explore Minnesota 
38.16 	Film. The director of Explore Minnesota Film must be qualified by experience with issues 
38.17 	related to film and television production and economic development.
38.18 	(c) The office may employ staff necessary to carry out the duties required in this section.
38.19 		Subd. 2.Duties. The director of Explore Minnesota Film is authorized to:
38.20 	(1) administer the film production jobs program and the film production credit program;
38.21 	(2) promote Minnesota as a location for film and television production;
38.22 	(3) assist in the establishment and implementation of programs related to film and 
38.23 	television production, including but not limited to permitting and workforce development;
38.24 	(4) improve communication among local, state, federal, and private entities regarding 
38.25 	film and television production logistics and best practices;
38.26 	(5) coordinate the development of statewide policies addressing film and television 
38.27 	production; and
38.28 	(6) act as a liaison to production entities, workers, and state agencies.

39.1 	Sec. 10. Minnesota Statutes 2022, section 116U.26, is amended to read:
39.2 	116U.26 FILM PRODUCTION JOBS PROGRAM.
39.3 	(a) The film production jobs program is created. The program shall be operated by the 
39.4 	Minnesota Film and TV Board Explore Minnesota Film with administrative oversight and 
39.5 	control by the commissioner of employment and economic development director of Explore 
39.6 	Minnesota. The program shall make payment to producers of feature films, national television 
39.7 	or Internet programs, documentaries, music videos, and commercials that directly create 
39.8 	new film jobs in Minnesota. To be eligible for a payment, a producer must submit 
39.9 	documentation to the Minnesota Film and TV Board Explore Minnesota Film of expenditures 
39.10 	for production costs incurred in Minnesota that are directly attributable to the production 
39.11 	in Minnesota of a film product.
39.12 	The Minnesota Film and TV Board Explore Minnesota Film shall make recommendations 
39.13 	to the commissioner of employment and economic development director of Explore 
39.14 	Minnesota about program payment, but the commissioner director has the authority to make 
39.15 	the final determination on payments. The commissioner's director's determination must be 
39.16 	based on proper documentation of eligible production costs submitted for payments. No 
39.17 	more than five percent of the funds appropriated for the program in any year may be expended 
39.18 	for administration, including costs for independent audits and financial reviews of projects.
39.19 	(b) For the purposes of this section:
39.20 	(1) "production costs" means the cost of the following:
39.21 	(i) a story and scenario to be used for a film;
39.22 	(ii) salaries of talent, management, and labor, including payments to personal services 
39.23 	corporations for the services of a performing artist;
39.24 	(iii) set construction and operations, wardrobe, accessories, and related services;
39.25 	(iv) photography, sound synchronization, lighting, and related services;
39.26 	(v) editing and related services;
39.27 	(vi) rental of facilities and equipment;
39.28 	(vii) other direct costs of producing the film in accordance with generally accepted 
39.29 	entertainment industry practice;
39.30 	(viii) above-the-line talent fees for nonresident talent; or
39.31 	(ix) costs incurred during postproduction; and
40.1 	(2) "film" means a feature film, television or Internet pilot, program, series, documentary, 
40.2 	music video, or television commercial, whether on film, video, or digital media. Film does 
40.3 	not include news, current events, public programming, or a program that includes weather 
40.4 	or market reports; a talk show; a production with respect to a questionnaire or contest; a 
40.5 	sports event or sports activity; a gala presentation or awards show; a finished production 
40.6 	that solicits funds; or a production for which the production company is required under 
40.7 	United States Code, title 18, section 2257, to maintain records with respect to a performer 
40.8 	portrayed in a single-media or multimedia program.
40.9 	(c) Notwithstanding any other law to the contrary, the Minnesota Film and TV Board
40.10 	Explore Minnesota Film may make reimbursements of: (1) up to 25 percent of production 
40.11 	costs for films that locate production outside the metropolitan area, as defined in section 
40.12 	473.121, subdivision 2, or that incur a minimum Minnesota expenditure of $1,000,000 in 
40.13 	the metropolitan area within a 12-month period; or (2) up to 20 percent of production costs 
40.14 	for films that incur less than $1,000,000 in Minnesota production costs in the metropolitan 
40.15 	area within a 12-month period.

40.16 	Sec. 11. Minnesota Statutes 2023 Supplement, section 116U.27, subdivision 1, is amended 
40.17 	to read:
40.18 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
40.19 	the meanings given.
40.20 	(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer 
40.21 	upon receipt and approval of an initial application for a credit for a project that has not yet 
40.22 	been completed.
40.23 	(c) "Application" means the application for a credit under subdivision 4.
40.24 	(d) "Commissioner" means the commissioner of employment and economic development.
40.25 	(e) (d) "Credit certificate" means a certificate issued by the commissioner upon receipt 
40.26 	and approval of the cost verification report in subdivision 4, paragraph (e).
40.27 	(e) "Director" means the director of Explore Minnesota.
40.28 	(f) "Eligible production costs" means eligible production costs as defined in section 
40.29 	116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to 
40.30 	the production of a film project in Minnesota.
40.31 	(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).
40.32 	(h) "Project" means a film:
41.1 	(1) that includes the promotion of Minnesota;
41.2 	(2) for which the taxpayer has expended at least $1,000,000 in any consecutive 12-month 
41.3 	period beginning after expenditures are first paid in Minnesota for eligible production costs; 
41.4 	and
41.5 	(3) to the extent practicable, that employs Minnesota residents.
41.6 	Television commercials are exempt from the requirement under clause (1).
41.7 	(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated 
41.8 	logo, approved by the commissioner and lasting approximately five seconds director, that 
41.9 	promotes Minnesota within its presentation in the end credits before the below-the-line crew 
41.10 	crawl for the life of the project.

41.11 	Sec. 12. Minnesota Statutes 2023 Supplement, section 116U.27, subdivision 4, is amended 
41.12 	to read:
41.13 		Subd. 4.Applications; allocations. (a) To qualify for a credit under this section, a 
41.14 	taxpayer must submit to the commissioner director an application for a credit in the form 
41.15 	prescribed by the commissioner director, in consultation with the commissioner of revenue.
41.16 	(b) Upon approving an application for a credit that meets the requirements of this section, 
41.17 	the commissioner director shall issue allocation certificates that:
41.18 	(1) verify eligibility for the credit;
41.19 	(2) state the amount of credit anticipated for the eligible project, with the credit amount 
41.20 	up to 25 percent of eligible project costs; and
41.21 	(3) state the taxable year in which the credit is allocated.
41.22 	The commissioner must consult with the Minnesota Film and TV Board prior to issuing an 
41.23 	allocation certificate.
41.24 	(c) The commissioner director must not issue allocation certificates for more than 
41.25 	$24,950,000 of credits each year. If the entire amount is not allocated in that taxable year, 
41.26 	any remaining amount is available for allocation for the four following taxable years until 
41.27 	the entire allocation has been made. The commissioner director must not award any credits 
41.28 	for taxable years beginning after December 31, 2030, and any unallocated amounts cancel 
41.29 	on that date.
41.30 	(d) The commissioner director must allocate credits on a first-come, first-served basis.
42.1 	(e) Upon completion of a project, the taxpayer shall submit to the commissioner director
42.2 	a report prepared by an independent certified public accountant licensed in the state of 
42.3 	Minnesota to verify the amount of eligible production costs related to the project. The report 
42.4 	must be prepared in accordance with generally accepted accounting principles. Upon receipt 
42.5 	and approval of the cost verification report and other documents required by the 
42.6 	commissioner director, the commissioner director shall determine the final amount of eligible 
42.7 	production costs and issue a credit certificate to the taxpayer. The credit may not exceed 
42.8 	the anticipated credit amount on the allocation certificate. If the credit is less than the 
42.9 	anticipated amount on the allocation credit, the difference is returned to the amount available 
42.10 	for allocation under paragraph (c). To claim the credit under section 290.06, subdivision 
42.11 	39, or 297I.20, subdivision 4, a taxpayer must include a copy of the credit certificate as part 
42.12 	of the taxpayer's return.

42.13 	Sec. 13. Minnesota Statutes 2022, section 116U.27, subdivision 5, is amended to read:
42.14 		Subd. 5.Report required. By January 15, 2025, the commissioner of revenue, in 
42.15 	consultation with the commissioner director, must provide a report to the chairs and ranking 
42.16 	minority members of the legislative committees with jurisdiction over economic development 
42.17 	and taxes. The report must comply with sections 3.195 and 3.197, and must detail the 
42.18 	following:
42.19 	(1) the amount of credit certifications issued annually;
42.20 	(2) the number of applications submitted, the number of allocation certificates issued, 
42.21 	the amount of allocation certificates issued, the number of reports submitted upon completion 
42.22 	of a project, and the number of credit certificates issued;
42.23 	(3) the types of projects eligible for the credit;
42.24 	(4) the total economic impact of the credit in Minnesota, including the calendar year 
42.25 	over calendar year percentage changes in the number of jobs held by Minnesota residents 
42.26 	in businesses having a primary North American Industry Classification System code of 
42.27 	512110 as reported to the commissioner, for calendar years 2019 through 2023;
42.28 	(5) the number of taxpayers per tax type which are assignees of credit certificates under 
42.29 	subdivision 3;
42.30 	(6) annual Minnesota taxes paid by businesses having a primary North American Industry 
42.31 	Classification System code of 512110, for taxable years beginning after December 31, 2018, 
42.32 	and before January 1, 2024; and
43.1 	(7) any other information the commissioner of revenue, in consultation with the 
43.2 	commissioner director, deems necessary for purposes of claiming and administering the 
43.3 	credit.

43.4 	Sec. 14. Minnesota Statutes 2022, section 446A.072, subdivision 5a, is amended to read:
43.5 		Subd. 5a.Type and amount of assistance. (a) For a governmental unit receiving grant 
43.6 	funding from the USDA/RECD, the authority may provide assistance in the form of a grant 
43.7 	of up to 65 percent of the eligible grant need determined by USDA/RECD. A governmental 
43.8 	unit may not receive a grant under this paragraph for more than $5,000,000 $10,000,000
43.9 	per project or $20,000 per existing connection, whichever is less, unless specifically approved 
43.10 	by law.
43.11 	(b) For a governmental unit receiving a loan from the clean water revolving fund under 
43.12 	section 446A.07, the authority may provide assistance under this section in the form of a 
43.13 	grant if the average annual residential wastewater system cost after completion of the project 
43.14 	would otherwise exceed 1.4 percent of the median household income of the project service 
43.15 	area. In determining whether the average annual residential wastewater system cost would 
43.16 	exceed 1.4 percent, the authority must consider the total costs associated with building, 
43.17 	operating, and maintaining the wastewater system, including existing wastewater debt 
43.18 	service, debt service on the eligible project cost, and operation and maintenance costs. Debt 
43.19 	service costs for the proposed project are calculated based on the maximum loan term 
43.20 	permitted for the clean water revolving fund loan under section 446A.07, subdivision 7. 
43.21 	The amount of the grant is equal to 80 percent of the amount needed to reduce the average 
43.22 	annual residential wastewater system cost to 1.4 percent of median household income in 
43.23 	the project service area, to a maximum of $5,000,000 $10,000,000 per project or $20,000 
43.24 	per existing connection, whichever is less, unless specifically approved by law. The eligible 
43.25 	project cost is determined by multiplying the total project costs minus any other grants by 
43.26 	the essential project component percentage calculated under subdivision 3, paragraph (c), 
43.27 	clause (1). In no case may the amount of the grant exceed 80 percent of the eligible project 
43.28 	cost.
43.29 	(c) For a governmental unit receiving a loan from the drinking water revolving fund 
43.30 	under section 446A.081, the authority may provide assistance under this section in the form 
43.31 	of a grant if the average annual residential drinking water system cost after completion of 
43.32 	the project would otherwise exceed 1.2 percent of the median household income of the 
43.33 	project service area. In determining whether the average annual residential drinking water 
43.34 	system cost would exceed 1.2 percent, the authority must consider the total costs associated 
44.1 	with building, operating, and maintaining the drinking water system, including existing 
44.2 	drinking water debt service, debt service on the eligible project cost, and operation and 
44.3 	maintenance costs. Debt service costs for the proposed project are calculated based on the 
44.4 	maximum loan term permitted for the drinking water revolving fund loan under section 
44.5 	446A.081, subdivision 8, paragraph (c). The amount of the grant is equal to 80 percent of 
44.6 	the amount needed to reduce the average annual residential drinking water system cost to 
44.7 	1.2 percent of median household income in the project service area, to a maximum of 
44.8 	$5,000,000 $10,000,000 per project or $20,000 per existing connection, whichever is less, 
44.9 	unless specifically approved by law. The eligible project cost is determined by multiplying 
44.10 	the total project costs minus any other grants by the essential project component percentage 
44.11 	calculated under subdivision 3, paragraph (c), clause (1). In no case may the amount of the 
44.12 	grant exceed 80 percent of the eligible project cost.
44.13 	(d) Notwithstanding the limits in paragraphs (a), (b), and (c), for a governmental unit 
44.14 	receiving supplemental assistance under this section after January 1, 2002, if the authority 
44.15 	determines that the governmental unit's construction and installation costs are significantly 
44.16 	increased due to geological conditions of crystalline bedrock or karst areas and discharge 
44.17 	limits that are more stringent than secondary treatment, the maximum award under this 
44.18 	section shall not be more than $25,000 per existing connection.

44.19 	Sec. 15. Minnesota Statutes 2022, section 446A.073, subdivision 1, is amended to read:
44.20 		Subdivision 1.Program established. When money is appropriated for grants under this 
44.21 	program, the authority shall award grants up to a maximum of $7,000,000 $12,000,000 to 
44.22 	governmental units to cover 80 percent of the cost of water infrastructure projects made 
44.23 	necessary by:
44.24 	(1) a wasteload reduction prescribed under a total maximum daily load plan required by 
44.25 	section 303(d) of the federal Clean Water Act, United States Code, title 33, section 1313(d);
44.26 	(2) a phosphorus concentration or mass limit which requires discharging one milligram 
44.27 	per liter or less at permitted design flow which is incorporated into a permit issued by the 
44.28 	Pollution Control Agency;
44.29 	(3) any other water quality-based effluent limit established under section 115.03, 
44.30 	subdivision 1, paragraph (e), clause (8), and incorporated into a permit issued by the Pollution 
44.31 	Control Agency that exceeds secondary treatment limits; or
44.32 	(4) a total nitrogen concentration or mass limit that requires discharging ten milligrams 
44.33 	per liter or less at permitted design flow.

45.1 	Sec. 16. Laws 2023, chapter 53, article 15, section 32, subdivision 6, is amended to read:
45.2 		Subd. 6.Administrative costs. The commissioner of employment and economic 
45.3 	development may use up to one percent of the appropriation made for this section for 
45.4 	administrative expenses of the department. Of this amount, the Northland Foundation may 
45.5 	use up to five percent for administrative expenses.

45.6 	Sec. 17. Laws 2023, chapter 53, article 15, section 33, subdivision 4, is amended to read:
45.7 		Subd. 4.Loans to community businesses. (a) A partner organization that receives a 
45.8 	grant under subdivision 3 shall establish a plan for making low-interest loans to community 
45.9 	businesses. The plan requires approval by the commissioner.
45.10 	(b) Under the plan:
45.11 	(1) the state contribution to each loan shall be no less than $50,000 and no more than 
45.12 	$500,000;
45.13 	(2) loans shall be made for projects that are unlikely to be undertaken unless a loan is 
45.14 	received under the program;
45.15 	(3) priority shall be given to loans to businesses in the lowest income areas;
45.16 	(4) the fee or interest rate on a loan shall not be higher than the Wall Street Journal prime 
45.17 	rate ten percent;
45.18 	(5) 50 percent of all repayments of principal on a loan under the program shall be used 
45.19 	to fund additional related lending. The partner organization may retain the remainder of 
45.20 	loan repayments to service loans and provide further technical assistance;
45.21 	(6) the partner organization may charge a loan origination fee of no more than one 
45.22 	percent of the loan value and may retain that origination fee; and
45.23 	(7) a partner organization may not make a loan to a project in which it has an ownership 
45.24 	interest.; and
45.25 	(8) up to 15 percent of a loan's principal amount may be forgiven by the partner 
45.26 	organization if the borrower has met all lending criteria developed by the partner organization 
45.27 	and the commissioner, including creating or retaining jobs and being current with all loan 
45.28 	payments, for at least two years.

46.1 	Sec. 18. Laws 2023, chapter 53, article 15, section 33, subdivision 5, is amended to read:
46.2 		Subd. 5.Reports. (a) The partner organization shall submit a report to the commissioner 
46.3 	by January December 31 of 2024, 2025, and 2026. The report shall include:
46.4 	(1) an account of all loans made through the program the preceding calendar year and 
46.5 	the impact of those loans on community businesses and job creation for targeted groups;
46.6 	(2) information on the source and amount of money collected and distributed under the 
46.7 	program, its assets and liabilities, and an explanation of administrative expenses; and
46.8 	(3) an independent audit of grant funds performed in accordance with generally accepted 
46.9 	accounting practices and auditing standards.
46.10 	(b) By February 15 of 2024, 2025, and 2026, and 2027, the commissioner shall submit 
46.11 	a report to the chairs and ranking minority members of the legislative committees with 
46.12 	jurisdiction over workforce and economic development on program outcomes, including 
46.13 	copies of all reports received under paragraph (a).

46.14 	Sec. 19. BROOKLYN PARK BIOTECH INNOVATION DISTRICT.
 46.15 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
46.16 	the meanings given.
46.17 	(b) "Authority" means the Brooklyn Park Economic Development Authority.
46.18 	(c) "Biotech innovation district" means a geographic area in the city identified in the 
46.19 	development plan.
46.20 	(d) "City" means the city of Brooklyn Park.
46.21 	(e) "Development plan" means the plan adopted under subdivision 2.
46.22 	(f) "Project" means a project to implement the development plan.
46.23 	(g) "Public infrastructure project" means a project financed at least partially with public 
46.24 	money to:
46.25 	(1) acquire or remediate real property, including site improvement;
46.26 	(2) demolish, repair, or rehabilitate buildings;
46.27 	(3) install, construct, or reconstruct public infrastructure necessary for the biotech 
46.28 	innovation district;
46.29 	(4) acquire, construct, reconstruct, develop, or equip parking facilities and other 
46.30 	transit-related facilities; and
47.1 	(5) acquire, install, construct, reconstruct, develop, or equip recreational, social, cultural, 
47.2 	or tourism facilities.
47.3 		Subd. 2.Development plan. (a) The authority must prepare a plan for the development 
47.4 	of a biotech innovation district within the city. At least 60 days prior to a hearing on adopting 
47.5 	the proposed development plan, the economic development authority must provide copies 
47.6 	of the proposed development plan to the city, which the city must make available to the 
47.7 	public in its offices and on the city's website. At least ten days before the hearing, the 
47.8 	authority must publish notice of the hearing in a newspaper selected by the city for 
47.9 	publication of the notice. At the hearing, the authority may only adopt the plan if it finds 
47.10 	that:
47.11 	(1) the plan provides an outline for the development of the city as a site of biotech 
47.12 	innovation;
47.13 	(2) the plan identifies the location of the proposed biotech innovation district;
47.14 	(3) the plan is sufficiently complete, including the identification of planned and 
47.15 	anticipated projects, to indicate its relationship to definite state and local objectives;
47.16 	(4) the proposed development affords maximum opportunity, consistent with the needs 
47.17 	of the city, county, and state, for the development of the city by private enterprise as a 
47.18 	biotech innovation district;
47.19 	(5) the plan conforms to the general plan for the development of the city and is consistent 
47.20 	with the city comprehensive plan;
47.21 	(6) the city has approved the plan; and
47.22 	(7) the plan includes:
47.23 	(i) strategic planning consistent with a biotech innovation district;
47.24 	(ii) a framework to identify and prioritize short- and long-term public investment and 
47.25 	public infrastructure project development and to facilitate private investment and 
47.26 	development;
47.27 	(iii) land use planning;
47.28 	(iv) multimodal transportation planning;
47.29 	(v) goals, objectives, and strategies to increase racial equity and to create community 
47.30 	wealth for city residents, local businesses, and businesses owned by women and people of 
47.31 	color, guided by the city's racial equity principles; and
48.1 	(vi) ongoing market research plans.
48.2 	(b) In identifying planned and anticipated projects under paragraph (a), clause (2), the 
48.3 	authority must prioritize projects that will pay a wage covering the cost of living for Hennepin 
48.4 	County, calculated using the most recent report completed pursuant to Minnesota Statutes, 
48.5 	section 116J.013.
48.6 	(c) The city must adopt the development plan within 60 days following its adoption by 
48.7 	the authority and may incorporate the development plan into the city's comprehensive plan. 
48.8 	Minnesota Statutes, section 15.99, does not apply to review and approval of the development 
48.9 	plan.
48.10 	(d) The authority may modify the development plan at any time and must modify the 
48.11 	plan at least once every five years. To modify the development plan, the authority must 
48.12 	follow the same procedures set out in paragraph (a) for the development plan.
48.13 	(e) When preparing the proposed development plan, the authority must seek input from 
48.14 	the community and other partners such as biotech trade associations, the City of Brooklyn 
48.15 	Park Planning Commission, the City of Brooklyn Park Community Long-Range Improvement 
48.16 	Committee, skilled trades, and other regional partners.
48.17 		Subd. 3.Special powers; requirements; limitations. (a) In implementing the 
48.18 	development plan, the city may exercise the powers of a port authority under Minnesota 
48.19 	Statutes, sections 469.048 to 469.068.
48.20 	(b) The city must provide financial and administrative support to the authority and may 
48.21 	appropriate city funds to the authority for its work in developing and implementing the 
48.22 	development plan.
48.23 	(c) The city may issue general obligation bonds, revenue bonds, or other obligations to 
48.24 	finance the development and implementation of the development project. Debt undertaken 
48.25 	pursuant to this paragraph is not subject to the net debt limit in Minnesota Statutes, section 
48.26 	475.53. Approval of the electors is not necessary to issue bonds or other obligations under 
48.27 	this paragraph. The city may pledge any of its revenues, including property taxes and state 
48.28 	aid issued pursuant to Minnesota Statutes, section 469.47, to the obligations issued pursuant 
48.29 	to this paragraph. The city must not issue obligations that are only payable from or secured 
48.30 	by state aid issued pursuant to Minnesota Statutes, section 469.47.
48.31 	(d) Notwithstanding Minnesota Statutes, section 469.068, the city and its authority need 
48.32 	not require competitive bidding on a parking facility or other public improvement constructed 
48.33 	to implement the development plan.
49.1 	(e) Except as otherwise specified, all activities to develop and implement the development 
49.2 	plan must comply with applicable state law and regulations and city ordinances, zoning, 
49.3 	and planning requirements.
49.4 		Subd. 4.Report. Beginning in 2025, by February 15 of each year, the city and authority 
49.5 	must submit a joint report to the chairs and ranking minority members of the legislative 
49.6 	committees and divisions with jurisdiction over jobs and economic development. The report 
49.7 	must include:
49.8 	(1) the development plan and any proposed changes to the development plan;
49.9 	(2) information on the progress of projects identified in the development plan;
49.10 	(3) costs and financing sources for the costs, including the amount paid with state aid 
49.11 	and local contributions of projects completed in the previous two years;
49.12 	(4) estimated costs and financing sources for projects anticipated to start in the next two 
49.13 	years; and
49.14 	(5) debt service schedules for all outstanding obligations of the city and authority for 
49.15 	debt issued for projects identified in the plan.

49.16 	Sec. 20. REPEALER.
 49.17 	Minnesota Statutes 2022, section 116J.435, subdivision 5, is repealed.

APPENDIX 

Repealed Minnesota Statutes: H3449-1 

116J.435 INNOVATIVE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.Subd. 5.Priorities. 
(a) If applications for grants exceed the available appropriations, grants must be made for public infrastructure that, in the commissioner's judgment, provides the highest return in public benefits for the public costs incurred. "Public benefits" include job creation, environmental benefits to the state and region, efficient use of public transportation, efficient use of existing infrastructure, provision of affordable housing, multiuse development that constitutes community rebuilding rather than single-use development, crime reduction, blight reduction, community stabilization, and property tax base maintenance or improvement. In making this judgment, the commissioner shall give priority to eligible projects with one or more of the following characteristics: 

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

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

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

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

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

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