1.1 	A bill for an act
1.2 	relating to transportation; employment and economic development; awarding 
1.3 	construction mitigation grants to businesses affected by Trunk Highway 65 
1.4 	construction; requiring a report; appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. TRUNK HIGHWAY 65 CONSTRUCTION MITIGATION GRANTS.
 1.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1.8 	the meanings given.
1.9 	(b) "Commissioner" means the commissioner of employment and economic development.
1.10 	(c) "Qualified business" means a business that employs up to 40 full-time or part-time 
1.11 	employees and experiences substantial business impacts as a result of the project.
1.12 	(d) "Substantial business impacts" means impairment of road access, parking, or visibility 
1.13 	for one or more qualified businesses as a result of the project, for a minimum period of one 
1.14 	month.
1.15 	(e) "Trunk Highway 65 construction project" or "project" means the construction work 
1.16 	to improve intersections along marked Trunk Highway 65 in the city of Blaine at 99th 
1.17 	Avenue Northeast; 105th Avenue Northeast; Anoka County State-Aid Highway 12, known 
1.18 	as 109th Avenue Northeast; and 117th Avenue Northeast, including the associated frontage 
1.19 	roads and backage roads within the trunk highway system.
1.20 		Subd. 2.Establishment. The commissioner, in consultation with the commissioner of 
1.21 	transportation, must award grants to qualified businesses that are negatively affected by the 
2.1 	Trunk Highway 65 construction project for the purpose of maintaining the businesses during 
2.2 	the project.
2.3 		Subd. 3.Grant awards. (a) The commissioner must prioritize the awarding of each 
2.4 	grant on a case-by-case basis, including but not limited to the following criteria:
2.5 	(1) rate of decline in revenue;
2.6 	(2) duration of construction;
2.7 	(3) proximity to construction;
2.8 	(4) severity of traffic disruption; and
2.9 	(5) lack of access for pedestrian traffic.
2.10 	(b) When determining grant awards, the commissioner must consult with the 
2.11 	commissioner of transportation and with the business liaison designated for the project 
2.12 	under Minnesota Statutes, section 160.165.
2.13 	(c) Grant funds awarded under this section may be used for employee payroll expenses, 
2.14 	operating expenses, or facilities expenses. Grant awards must not be used for bonuses; new 
2.15 	equipment, furniture, or capital improvements; or construction or expansion.
2.16 		Subd. 4.Report. By January 15, 2027, and annually thereafter on January 15 until the 
2.17 	project is completed, the commissioner must submit a report on the grants awarded under 
2.18 	this section to the chairs and ranking minority members of the legislative committees with 
2.19 	jurisdiction over employment and economic development and transportation finance and 
2.20 	policy. At a minimum, the report must include a complete list of grants awarded in the 
2.21 	previous calendar year, including business names and addresses, types of businesses, and 
2.22 	the amount of each award.

2.23 	EFFECTIVE DATE. This section is effective July 1, 2025.

2.24 	Sec. 2. APPROPRIATION.
 2.25 	$5,000,000 in fiscal year 2026 is appropriated from the general fund to the commissioner 
2.26 	of employment and economic development for the grant awards under section 1. 
2.27 	Notwithstanding Minnesota Statutes, section 16B.98, subdivision 14, the commissioner 
2.28 	may retain up to two percent of this appropriation for administrative costs. This is a onetime 
2.29 	appropriation and is available until June 30, 2029.

2.30 	EFFECTIVE DATE. This section is effective July 1, 2025.