HF 2233

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/17/2023 11:32pm

A bill for an act
relating to economic development; establishing a budget for workforce development
efforts for the Department of Employment and Economic Development;
appropriating money to the Department of Corrections for workforce training;
modifying various workforce provisions; requiring reports; appropriating money;
amending Minnesota Statutes 2022, sections 116J.5492, subdivisions 8, 10; 116J.55,
subdivisions 1, 5, 6; 116L.361, subdivision 7; 116L.362, subdivision 1; 116L.364,
subdivision 3; 116L.365, subdivision 1; 116L.56, subdivision 2; 116L.561,
subdivision 5; 116L.562, subdivision 2; 268.035, subdivision 20; 268A.15, by
adding a subdivision; 469.40, subdivision 11; 469.47, subdivisions 1, 5; proposing
coding for new law in Minnesota Statutes, chapters 116J; 116L.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin (a) The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2024" and "2025" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2024, or June 30, 2025,
respectively. "The first year" is fiscal year 2024. "The second year" is fiscal year 2025. "The
biennium" is fiscal years 2024 and 2025.
new text end

new text begin (b) If an appropriation in this article is enacted more than once in the 2023 regular or
special legislative session, the appropriation must be given effect only once.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2024 new text end		new text begin 2025 new text end

Sec. 2. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 186,569,000 new text end

new text begin $ new text end

new text begin 176,469,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2024 new text end	new text begin 2025 new text end
new text begin General new text end	new text begin 163,982,000 new text end	new text begin 154,582,000 new text end
new text begin Workforce Development new text end	new text begin 22,587,000 new text end	new text begin 21,887,000 new text end

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

new text begin Subd. 2. new text end new text begin Business and Community Development new text end

new text begin 12,500,000 new text end

new text begin 12,500,000 new text end

new text begin (a)(1) $5,000,000 each year is for grants to
local communities to increase the number of
quality child care providers to support
economic development. This is a onetime
appropriation and is available through June
30, 2025. Fifty percent of grant money must
go to communities located outside the
seven-county metropolitan area as defined in
Minnesota Statutes, section 473.121,
subdivision 2.
new text end

new text begin (2) Grant recipients must obtain a 50 percent
nonstate match to grant money in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
money available under this subdivision must
be used to implement projects to reduce the
child care shortage in the state, including but
not limited to funding for child care business
start-ups or expansion, training, facility
modifications, direct subsidies or incentives
to retain employees, or improvements required
for licensing, and assistance with licensing
and other regulatory requirements. In awarding
grants, the commissioner must give priority
to communities that have demonstrated a
shortage of child care providers.
new text end

new text begin (3) Within one year of receiving grant money,
grant recipients must report to the
commissioner on the outcomes of the grant
program, including but not limited to the
number of new providers, the number of
additional child care provider jobs created, the
number of additional child care slots, and the
amount of cash and in-kind local money
invested. Within one month of all grant
recipients reporting on program outcomes, the
commissioner must report the grant recipients'
outcomes to the chairs and ranking members
of the legislative committees with jurisdiction
over early learning and child care and
economic development.
new text end

new text begin (b) $2,500,000 each year is for a grant to the
Minnesota Initiative Foundations. This is a
onetime appropriation and is available until
June 30, 2027. The Minnesota Initiative
Foundations must use grant money under this
section to:
new text end

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

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

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

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

new text begin (c) $5,000,000 each year is for the community
energy transition grant program under
Minnesota Statutes, section 116J.55. This is
a onetime appropriation and is available until
expended.
new text end

new text begin Subd. 3. new text end new text begin Employment and Training Programs new text end

new text begin 102,798,000 new text end

new text begin 102,698,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 88,096,000 new text end	new text begin 88,696,000 new text end
new text begin Workforce Development new text end	new text begin 14,702,000 new text end	new text begin 14,002,000 new text end

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

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

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

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

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

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

new text begin (g) $1,750,000 each year is for a grant to
Propel Nonprofits to provide capacity-building
grants and related technical assistance to small,
culturally specific organizations that primarily
serve historically underserved cultural
communities. Propel Nonprofits may only
award grants to nonprofit organizations that
have an annual organizational budget of less
than $1,000,000. These grants may be used
for:
new text end

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

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

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

new text begin Of this amount, up to ten percent may be used
by Propel Nonprofits for administrative costs.
This is a onetime appropriation.
new text end

new text begin (h) $5,230,000 each year from the general fund
and $3,348,000 each year from the workforce
development fund are for the youth-at-work
competitive grant program under Minnesota
Statutes, section 116L.562. Of this amount,
up to five percent is for administration and
monitoring of the youth workforce
development competitive grant program. All
grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
In fiscal year 2026 and beyond, the base
amount from the general fund is $750,000.
new text end

new text begin (i) $1,093,000 each year from the general fund
and $1,000,000 each year from the workforce
development fund are for the youthbuild
program under Minnesota Statutes, sections
116L.361 to 116L.366. In fiscal year 2026 and
beyond, the base amount from the general fund
is $0.
new text end

new text begin (j) $4,427,000 each year from the general fund
and $4,050,000 each year from the workforce
development fund are for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561. In fiscal year 2026
and beyond, the base amount from the general
fund is $0.
new text end

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

new text begin (l) $7,500,000 each year is for the Drive for
Five Initiative to conduct outreach and provide
job skills training, career counseling, case
management, and supportive services for
careers in (1) technology, (2) labor, (3) the
caring professions, (4) manufacturing, and (5)
educational and professional services. These
are onetime appropriations.
new text end

new text begin (m) Of the amounts appropriated in paragraph
(l), the commissioner must make $5,000,000
each year available through a competitive
request for proposal process. The grant awards
must be used to provide education and training
in the five industries identified in paragraph
(l). Education and training may include:
new text end

new text begin (1) student tutoring and testing support
services;
new text end

new text begin (2) training and employment placement in high
wage and high growth employment;
new text end

new text begin (3) assistance in obtaining industry-specific
certifications;
new text end

new text begin (4) remedial training leading to enrollment;
new text end

new text begin (5) real-time work experience in information;
new text end

new text begin (6) career and educational counseling;
new text end

new text begin (7) work experience and internships; and
new text end

new text begin (8) supportive services.
new text end

new text begin (n) Of the amount appropriated in paragraph
(l), $1,625,000 each year must be awarded
through competitive grants made to trade
associations or chambers of commerce for job
placement services. Grant awards must be used
to encourage workforce training efforts to
ensure that efforts are aligned with employer
demands and that graduates are connected with
employers that are hiring. Trade associations
or chambers must partner with employers with
current or anticipated employment
opportunities and nonprofit workforce training
partners participating in this program. The
trade associations or chambers must work
closely with the industry sector training
providers in the five industries identified in
paragraph (l). Grant awards may be used for:
new text end

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

new text begin (2) diversity, inclusion, and retention training
for members to increase the business
understanding of welcoming and retaining a
diverse workforce; and
new text end

new text begin (3) industry-specific training.
new text end

new text begin (o) Of the amount appropriated in paragraph
(l), $875,000 each year is to hire, train, and
deploy business services representatives in
local workforce development areas throughout
the state. Business services representatives
must work with an assigned local workforce
development area to address the hiring needs
of Minnesota's businesses by connecting job
seekers and program participants in the
CareerForce system. Business services
representatives serve in the classified service
of the state and operate as part of the agency's
Employment and Training Office. The
commissioner shall develop and implement
training materials and reporting and evaluation
procedures for the activities of the business
services representatives. The business services
representatives must:
new text end

new text begin (1) serve as the primary contact for businesses
in that area;
new text end

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

new text begin (3) work with the local area board and the
board's partners to identify candidates for
openings in small and midsize companies in
the local area.
new text end

new text begin (p) $30,000,000 each year is for the targeted
population workforce grants under Minnesota
Statutes, section 116L.43. The department
may use up to ten percent of this appropriation
for administration, monitoring, and oversight
of the program. Of this amount:
new text end

new text begin (1) $22,000,000 each year is for job and
entrepreneurial skills training grants under
Minnesota Statutes, section 116L.43,
subdivision 2;
new text end

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

new text begin (3) $6,000,000 each year is for capacity
building grants under Minnesota Statutes,
section 116L.43, subdivision 4.
new text end

new text begin Beginning in fiscal year 2026, the base amount
is $2,500,000.
new text end

new text begin (q) $1,500,000 each year is to establish an
Office of New Americans. This is a onetime
appropriation.
new text end

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

new text begin (s) $700,000 each year is for a grant to Avivo
to provide low-income individuals with career
education and job skills training that is fully
integrated with chemical and mental health
services. This is a onetime appropriation.
new text end

new text begin (t)(1) $450,000 each year is for a grant to
Better Futures Minnesota to provide job skills
training to individuals who have been released
from incarceration for a felony-level offense
and are no more than 12 months from the date
of release. This is a onetime appropriation.
new text end

new text begin (2) Better Futures Minnesota shall annually
report to the commissioner on how the money
was spent and what results were achieved. The
report must include, at a minimum,
information and data about the number of
participants; participant homelessness,
employment, recidivism, and child support
compliance; and job skills training provided
to program participants.
new text end

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

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

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

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

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

new text begin (w) $550,000 each year is for a grant to the
International Institute of Minnesota for
workforce training for new Americans in
industries in need of a trained workforce. This
is a onetime appropriation.
new text end

new text begin (x) $1,500,000 each year is for a grant to
Summit Academy OIC to expand employment
placement, GED preparation and
administration, and STEM programming in
the Twin Cities, Saint Cloud, and Bemidji.
This is a onetime appropriation.
new text end

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

new text begin (z) $400,000 each year is for a grant to the
White Bear Center for the Arts for establishing
a paid internship program for high school
students to learn professional development
skills through an arts perspective. This is a
onetime appropriation.
new text end

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

new text begin (bb) $400,000 each year is for a grant to Hired
to expand their career pathway job training
and placement program that connects
lower-skilled job seekers to entry-level and
gateway jobs in high-growth sectors. This is
a onetime appropriation.
new text end

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

new text begin (dd) $300,000 each year is for a grant to
Southeast Minnesota Workforce Development
Area 8 and Workforce Development, Inc., to
provide career planning, career pathway
training and education, wraparound support
services, and job skills advancement in
high-demand careers to individuals with
barriers to employment in Steele County, and
to help families build secure pathways out of
poverty and address worker shortages in the
Owatonna and Steele County area, as well as
supporting Employer Outreach Services that
provide solutions to workforce challenges and
direct connections to workforce programming.
Money may be used for program expenses,
including but not limited to hiring instructors
and navigators; space rental; and supportive
services to help participants attend classes,
including assistance with course fees, child
care, transportation, and safe and stable
housing. Up to five percent of grant money
may be used for Workforce Development,
Inc.'s administrative costs. This is a onetime
appropriation and is available until June 30,
2025.
new text end

new text begin (ee) $1,250,000 each year is for a grant to
Ujamaa Place to assist primarily African
American men with job training, employment
preparation, internships, education, vocational
housing, and organizational capacity building.
This is a onetime appropriation.
new text end

new text begin (ff) $500,000 each year is for grants to
Minnesota Diversified Industries, Inc., to
provide inclusive employment opportunities
and services for people with disabilities. This
is a onetime appropriation.
new text end

new text begin (gg) $1,000,000 each year is for performance
grants under Minnesota Statutes, section
116J.8747, to Twin Cities R!SE to provide
training to individuals facing barriers to
employment. This is a onetime appropriation
and is available until June 30, 2026.
new text end

new text begin (hh) $500,000 each year is for the getting to
work grant program under Minnesota Statutes,
section 116J.545. Of this amount, up to five
percent is for administration and monitoring
of the program. This is a onetime
appropriation.
new text end

new text begin (ii) $400,000 the first year is for a grant to the
ProStart and Hospitality Tourism Management
Program for a well-established, proven, and
successful education program that helps young
people advance careers in the hospitality
industry and addresses critical long-term
workforce shortages in the tourism industry.
new text end

new text begin (jj) $1,500,000 each year is for a grant to
Comunidades Latinas Unidas En Servicio -
Latino Communities United in Service
(CLUES) to address employment, economic,
and technology access disparities for
low-income, unemployed, or underemployed
individuals. Money must be used to support
short-term certifications and transferable skills
in high-demand fields, workforce readiness,
customized financial capability, and
employment supports. At least 50 percent of
this amount must be used for programming
targeted at greater Minnesota. This is a
onetime appropriation.
new text end

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

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

new text begin (mm) $750,000 each year is for grants to the
Minneapolis Park and Recreation Board's Teen
Teamworks youth employment and training
programs. This is a onetime appropriation and
is available in either year of the biennium and
is available until spent.
new text end

new text begin (nn) $700,000 each year is for grants to
support competitive robotics teams that
prepare youth for careers in STEM fields, by
creating internships for high school students
to work at private companies in STEM fields,
including the payment of student stipends.
This is a onetime appropriation.
new text end

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

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

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

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

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

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

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

new text begin (vv) $1,500,000 each year is for a grant to the
nonprofit Sanneh Foundation to fund
out-of-school summer programs focused on
mentoring and behavioral, social, and
emotional learning interventions and
enrichment activities directed toward
low-income students of color. This is a
onetime appropriation and is available until
spent.
new text end

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

new text begin (xx) $1,000,000 each year is for performance
grants under Minnesota Statutes, section
116J.8747, to Goodwill-Easter Seals
Minnesota and its partners. The grant shall be
used to continue the FATHER Project in
Rochester, St. Cloud, St. Paul, Minneapolis,
and the surrounding areas to assist fathers in
overcoming barriers that prevent fathers from
supporting their children economically and
emotionally, including with community
re-entry following confinement. This is a
onetime appropriation.
new text end

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

new text begin (zz) $400,000 each year is for a grant to
Project Restore Minnesota for the Social
Kitchen project, a pathway program for careers
in the culinary arts. This is a onetime
appropriation.
new text end

new text begin (aaa) $1,000,000 each year is for competitive
grants to organizations providing services to
relieve economic disparities in the African
immigrant community through workforce
recruitment, development, job creation,
assistance of smaller organizations to increase
capacity, and outreach. Of this amount, up to
five percent is for administration and
monitoring of the program. Beginning in fiscal
year 2026, the base amount is $200,000.
new text end

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

new text begin (ccc) $250,000 each year is for a grant to the
Center for Economic Inclusion for a strategic
intervention program designed to target and
connect program participants to meaningful,
sustainable living-wage employment. This is
a onetime appropriation.
new text end

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

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

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

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

new text begin (hhh) $700,000 in the first year is from the
workforce development fund for a grant to the
Southwest Initiative Foundation for the
southwestern Minnesota workforce
development scholarship pilot program. This
is a onetime appropriation and is available
until June 30, 2028.
new text end

new text begin Subd. 4. new text end new text begin General Support Services new text end

new text begin 17,505,000 new text end

new text begin 7,505,000 new text end

new text begin Appropriations by Fund new text end
new text begin General Fund new text end	new text begin 17,450,000 new text end	new text begin 7,450,000 new text end
new text begin Workforce Development new text end	new text begin 55,000 new text end	new text begin 55,000 new text end

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

new text begin (b) $10,000,000 in the first year is for the
workforce digital transformation projects. This
appropriation is available until June 30, 2027.
new text end

new text begin Subd. 5. new text end new text begin Vocational Rehabilitation new text end

new text begin 42,341,000 new text end

new text begin 42,341,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 34,511,000 new text end	new text begin 34,511,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

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

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

new text begin (c) $4,805,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14. Beginning in fiscal year 2026, the
base amount is $2,555,000.
new text end

new text begin (d) $3,911,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11.
Beginning in fiscal year 2026, the base amount
is $3,011,000.
new text end

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

new text begin Subd. 6. new text end new text begin Services for the Blind new text end

new text begin 11,425,000 new text end

new text begin 11,425,000 new text end

new text begin (a) $500,000 each year is for senior citizens
who are becoming blind. At least one-half of
the money for this purpose must be used to
provide training services for seniors who are
becoming blind. Training services must
provide independent living skills to seniors
who are becoming blind to allow them to
continue to live independently in their homes.
new text end

new text begin (b) $2,500,000 each year is for the employer
reasonable accommodation fund. This is a
onetime appropriation.
new text end

Sec. 3. new text begin DEPARTMENT OF CORRECTIONS new text end

new text begin $ new text end

new text begin 3,500,000 new text end

new text begin $ new text end

new text begin 3,500,000 new text end

new text begin (a) $2,250,000 each year is for contracts with
Minnesota's institutions of higher education
to provide instruction to incarcerated
individuals in state correctional facilities and
to support partnerships with public and private
employers, trades programs, and community
colleges in providing employment
opportunities for individuals after
incarceration. Funding must be used for
contracts with institutions of higher education
and other training providers and associated
re-entry and operational support services
provided by the agency. Beginning in fiscal
year 2026, the base amount is $200,000.
new text end

new text begin (b) $1,250,000 each year is to expand the use
of the existing work release program at the
Department of Corrections to increase the
availability of educational programming for
incarcerated individuals who are eligible and
approved for work release. Beginning in fiscal
year 2026, the base amount is $100,000.
new text end

ARTICLE 2

WORKFORCE DEVELOPMENT

Section 1.

new text begin [116J.545] GETTING TO WORK GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Creation. new text end

new text begin The commissioner of employment and economic development
shall make grants to nonprofit organizations to establish and operate programs under this
section that provide, repair, or maintain motor vehicles to assist eligible individuals to obtain
or maintain employment. All grants shall be for two years.
new text end

new text begin Subd. 2. new text end

new text begin Qualified grantee. new text end

new text begin A grantee must:
new text end

new text begin (1) qualify under section 501(c)(3) of the Internal Revenue Code; and
new text end

new text begin (2) at the time of application, offer or have the demonstrated capacity to offer a motor
vehicle program that provides the services required under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Program requirements. new text end

new text begin (a) A program must offer one or more of the following
services:
new text end

new text begin (1) provision of new or used motor vehicles by gift, sale, or lease;
new text end

new text begin (2) motor vehicle repair and maintenance services; or
new text end

new text begin (3) motor vehicle loans.
new text end

new text begin (b) In addition to the requirements of paragraph (a), a program must offer one or more
of the following services:
new text end

new text begin (1) financial literacy education;
new text end

new text begin (2) education on budgeting for vehicle ownership;
new text end

new text begin (3) car maintenance and repair instruction;
new text end

new text begin (4) credit counseling; or
new text end

new text begin (5) job training related to motor vehicle maintenance and repair.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin Applications for a grant must be on a form provided by the
commissioner and on a schedule set by the commissioner. Applications must, in addition
to any other information required by the commissioner, include the following:
new text end

new text begin (1) a detailed description of all services to be offered;
new text end

new text begin (2) the area to be served;
new text end

new text begin (3) the estimated number of program participants to be served by the grant; and
new text end

new text begin (4) a plan for leveraging resources from partners that may include but are not limited
to:
new text end

new text begin (i) automobile dealers;
new text end

new text begin (ii) automobile parts dealers;
new text end

new text begin (iii) independent local mechanics and automobile repair facilities;
new text end

new text begin (iv) banks and credit unions;
new text end

new text begin (v) employers;
new text end

new text begin (vi) employment and training agencies;
new text end

new text begin (vii) insurance companies and agents;
new text end

new text begin (viii) local workforce centers; and
new text end

new text begin (ix) educational institutions, including vocational institutions and jobs or skills training
programs.
new text end

new text begin Subd. 5. new text end

new text begin Participant eligibility. new text end

new text begin (a) To be eligible to receive program services, a person
must:
new text end

new text begin (1) have a household income at or below 200 percent of the federal poverty level;
new text end

new text begin (2) be at least 18 years of age;
new text end

new text begin (3) have a valid driver's license;
new text end

new text begin (4) provide the grantee with proof of motor vehicle insurance; and
new text end

new text begin (5) demonstrate to the grantee that a motor vehicle is required by the person to obtain
or maintain employment.
new text end

new text begin (b) This subdivision does not preclude a grantee from imposing additional requirements,
not inconsistent with paragraph (a), for the receipt of program services.
new text end

new text begin Subd. 6. new text end

new text begin Report to legislature. new text end

new text begin By January 15, 2026, and each January 15 in an
even-numbered year thereafter, the commissioner shall submit a report to the chairs of the
house of representatives and senate committees with jurisdiction over workforce and
economic development on program outcomes. At a minimum, the report must include:
new text end

new text begin (1) the total number of program participants;
new text end

new text begin (2) the number of program participants who received each of the following:
new text end

new text begin (i) provision of a motor vehicle;
new text end

new text begin (ii) motor vehicle repair services; and
new text end

new text begin (iii) motor vehicle loans;
new text end

new text begin (3) the number of program participants who report that they or their children were able
to increase their participation in community activities such as after school programs, other
youth programs, church or civic groups, or library services as a result of participation in the
program; and
new text end

new text begin (4) an analysis of the impact of the getting to work grant program on the employment
rate and wages of program participants.
new text end

Sec. 2.

Minnesota Statutes 2022, section 116J.5492, subdivision 8, is amended to read:

Subd. 8.

Meetings.

The advisory committee must meet deleted text begin monthly until the energy transition
plan is submitted deleted text end new text begin quarterly and submit an updated energy transition plan annually new text end to the
governor and the legislature. new text begin Once submitted, the committee shall develop a regular meeting
schedule as needed. new text end The chair may call additional meetings as necessary.

Sec. 3.

Minnesota Statutes 2022, section 116J.5492, subdivision 10, is amended to read:

Subd. 10.

Expiration.

This section expires deleted text begin the day after the Minnesota energy transition
plan required under section 116J.5493 is submitted to the legislature and the governor deleted text end new text begin on
June 30, 2027 new text end .

Sec. 4.

Minnesota Statutes 2022, section 116J.55, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, "eligible community" means
a county, municipality, or tribal government located in Minnesota in which an electric
generating plant owned by a public utility, as defined in section 216B.02, that is powered
by coal, nuclear energy, or natural gas:

(1) is currently operating and new text begin (i) new text end is scheduled to cease operations deleted text begin or deleted text end new text begin , (ii) new text end whose cessation
of operations has been proposed in an integrated resource plan filed with the commission
under section 216B.2422 new text begin , or (iii) whose current operating license expires within 15 years
of the effective date of this section new text end ; or

(2) ceased operations or was removed from the local property tax base no earlier than
five years before the date an application is made for a grant under this section.

Sec. 5.

Minnesota Statutes 2022, section 116J.55, subdivision 5, is amended to read:

Subd. 5.

Grant awards; limitations.

deleted text begin (a) The commissioner must award grants under
this section to eligible communities through a competitive grant process.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end A grant awarded to an eligible community under this section must not exceed
deleted text begin $500,000 deleted text end new text begin $1,000,000 in any calendar year. The commissioner may accept grant applications
on an ongoing or rolling basis new text end .

deleted text begin (c) deleted text end new text begin (b) new text end Grants funded with revenues from the renewable development account established
in section 116C.779 must be awarded to an eligible community located within the retail
electric service territory of the public utility that is subject to section 116C.779 or to an
eligible community in which an electric generating plant owned by that public utility is
located.

Sec. 6.

Minnesota Statutes 2022, section 116J.55, subdivision 6, is amended to read:

Subd. 6.

Eligible expenditures.

(a) Money in the account established in subdivision 3
must be used only to:

(1) award grants to eligible communities under this section; and

(2) reimburse the department's reasonable costs to administer this section, up to a
maximum of five percent of the appropriation made to the commissioner under this section. new text begin
The commissioner may transfer part of the allowable administrative portion of this
appropriation to the Environmental Quality Board to assist communities with regulatory
coordination and dedicated technical assistance on conversion for these communities.
new text end

(b) An eligible community awarded a grant under this section may use the grant to plan
for or address the economic and social impacts on the eligible community of the electric
generating plant's cessation of operations, including but not limited to new text begin land use studies,
economic planning, new text end researching, planning, and implementing activities new text begin , capital costs of
public infrastructure necessary for economic development, and impact studies and other
planning activities enabling communities to become shovel-ready and support the transition
from power plants to other economic activities to minimize the negative impacts of power
plant closures on tax revenues and jobs new text end designed to:

(1) assist workers at the plant find new employment, including worker retraining and
developing small business start-up skills;

(2) increase the eligible community's property tax base; and

(3) develop alternative economic development strategies to attract new employers to the
eligible community.

Sec. 7.

new text begin [116J.659] OFFICE OF NEW AMERICANS.
new text end

new text begin Subdivision 1. new text end

new text begin Office established; purpose. new text end

new text begin (a) The Office of New Americans is
established within the Department of Employment and Economic Development. The governor
must appoint an assistant commissioner who serves in the unclassified service. The assistant
commissioner must hire a program manager and an office assistant, as well as any staff
necessary to carry out the office's duties under subdivision 2.
new text end

new text begin (b) The purpose of the office is to serve immigrants and refugees in Minnesota by:
new text end

new text begin (1) addressing challenges that face immigrants and refugees in Minnesota, and creating
access in economic development and workforce programs and services; and
new text end

new text begin (2) providing interstate agency coordination, policy reviews, and guidance that assist in
creating access to immigrants and refugees.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin (a) The office has the duty to:
new text end

new text begin (1) create and implement a statewide strategy to support immigrant and refugee integration
into Minnesota communities;
new text end

new text begin (2) address the state's workforce needs by connecting employers and job seekers within
the immigrant and refugee community;
new text end

new text begin (3) identify strategies to reduce employment barriers, including the creation of alternative
pathways for immigrants and refugees;
new text end

new text begin (4) support programs and activities designed to ensure equitable access to the workforce
for immigrants and refugees, including those who are disabled;
new text end

new text begin (5) support equitable opportunities for immigrants and refugees to access state government
services and grants;
new text end

new text begin (6) work with state agencies and community and foundation partners to undertake studies
and research and analyze economic and demographic trends to better understand and serve
the state's immigrant and refugee communities;
new text end

new text begin (7) coordinate and establish best practices for language access initiatives to all state
agencies;
new text end

new text begin (8) convene stakeholders and provide assistance and recommendations to the governor
on issues impacting immigrants and refugees;
new text end

new text begin (9) make policy recommendations to the governor on issues impacting immigrants and
refugees;
new text end

new text begin (10) develop systems of communication and collaboration with local offices and service
providers to ensure that immigrants and refugees can access support available to them to
address multisectoral barriers to success, including in the areas of employment, housing,
legal services, health care, and education;
new text end

new text begin (11) collaborate with existing immigrant and refugee inclusion positions and offices at
the city and county level statewide;
new text end

new text begin (12) encourage and support the creation of new immigrant and refugee inclusion positions
and offices at the city and county level statewide;
new text end

new text begin (13) serve as the point of contact for immigrants and refugees accessing resources both
within the department and with boards charged with oversight of a profession;
new text end

new text begin (14) promulgate rules necessary to implement and effectuate this section;
new text end

new text begin (15) provide an annual report, as required by subdivision 3; and
new text end

new text begin (16) perform any other activities consistent with the office's purpose.
new text end

new text begin Subd. 3. new text end

new text begin Reporting. new text end

new text begin (a) Beginning January 15, 2024, and each year thereafter, the Office
of New Americans shall report to the legislative committees with jurisdiction over the
office's activities during the previous year.
new text end

new text begin (b) The report shall contain, at a minimum:
new text end

new text begin (1) a summary of the office's activities;
new text end

new text begin (2) suggested policies, incentives, and legislation designed to accelerate the achievement
of the duties under subdivision 2;
new text end

new text begin (3) any proposed legislative and policy initiatives;
new text end

new text begin (4) the amount and types of grants awarded under subdivision 6; and
new text end

new text begin (5) any other information deemed necessary and requested by the legislative committees
with jurisdiction over the office.
new text end

new text begin (c) The report may be submitted electronically and is subject to section 3.195, subdivision
1.
new text end

new text begin Subd. 4. new text end

new text begin Interdepartmental Coordinating Council on Immigrant and Refugee
Affairs. new text end

new text begin (a) An interdepartmental Coordinating Council on Immigrant and Refugee Affairs
is established to advise the Office of New Americans.
new text end

new text begin (b) The purpose of the council is to identify and establish ways in which state departments
and agencies can work together to deliver state programs and services effectively and
efficiently to Minnesota's immigrant and refugee populations. The council shall implement
policies, procedures, and programs requested by the governor through the state departments
and offices.
new text end

new text begin (c) The council shall be chaired by the assistant commissioner of the Office of New
Americans and shall be comprised of the commissioners, department directors, or senior
leadership designees, from the following state departments and offices:
new text end

new text begin (1) the governor's office;
new text end

new text begin (2) the Department of Administration;
new text end

new text begin (3) the Department of Employment and Economic Development;
new text end

new text begin (4) the Department of Human Services;
new text end

new text begin (5) the Department of Human Services Resettlement Program Office;
new text end

new text begin (6) the Department of Labor and Industry;
new text end

new text begin (7) the Department of Health;
new text end

new text begin (8) the Department of Education;
new text end

new text begin (9) the Office of Higher Education;
new text end

new text begin (10) the Department of Public Safety;
new text end

new text begin (11) the Department of Corrections;
new text end

new text begin (12) the Council for Minnesotans of African Heritage;
new text end

new text begin (13) the Minnesota Council on Latino Affairs; and
new text end

new text begin (14) the Council on Asian Pacific Minnesotans.
new text end

new text begin (d) Each department or office serving as a member of the council shall designate one
staff member as an immigrant and refugee services liaison. The liaisons' responsibilities
shall include:
new text end

new text begin (1) preparation and dissemination of information and services available to immigrants
and refugees; and
new text end

new text begin (2) interfacing with the Office of New Americans on issues that impact immigrants and
refugees and their communities.
new text end

new text begin Subd. 5. new text end

new text begin No right of action. new text end

new text begin Nothing in this section shall be construed to create any
right or benefit, substantive or procedural, enforceable at law or in equity by any party
against the state; its departments, agencies, or entities; its officers, employees, or agents;
or any other person.
new text end

new text begin Subd. 6. new text end

new text begin Grants. new text end

new text begin The office may apply for grants for interested state agencies, community
partners, and stakeholders under this section to carry out the duties under subdivision 2. In
awarding grants, the commissioner must allocate grants as evenly as practicable among
interested parties.
new text end

Sec. 8.

Minnesota Statutes 2022, section 116L.361, subdivision 7, is amended to read:

Subd. 7.

deleted text begin Very deleted text end Low income.

" deleted text begin Very deleted text end Low income" means incomes that are at or less than
deleted text begin 50 deleted text end new text begin 80 new text end percent of the area median income, adjusted for family size, as estimated by the
Department of Housing and Urban Development.

Sec. 9.

Minnesota Statutes 2022, section 116L.362, subdivision 1, is amended to read:

Subdivision 1.

Generally.

(a) The commissioner shall make grants to eligible
organizations for programs to provide education and training services to targeted youth.
The purpose of these programs is to provide specialized training and work experience for
targeted youth who have not been served effectively by the current educational system. The
programs are to include a work experience component with work projects that result in the
rehabilitation, improvement, or construction of (1) residential units for the homeless; (2)
improvements to the energy efficiency and environmental health of residential units and
other green jobs purposes; (3) facilities to support community garden projects; or (4)
education, social service, or health facilities which are owned by a public agency or a private
nonprofit organization.

(b) Eligible facilities must principally provide services to homeless or deleted text begin very deleted text end low income
individuals and families, and include the following:

(1) Head Start or day care centers new text begin , including playhouses or similar incidental structures new text end ;

(2) homeless, battered women, or other shelters;

(3) transitional housing new text begin and tiny houses new text end ;

(4) youth or senior citizen centers;

(5) community health centers; and

(6) community garden facilities.

Two or more eligible organizations may jointly apply for a grant. The commissioner
shall administer the grant program.

Sec. 10.

Minnesota Statutes 2022, section 116L.364, subdivision 3, is amended to read:

Subd. 3.

Work experience component.

A work experience component must be included
in each program. The work experience component must provide vocational skills training
in an industry where there is a viable expectation of job opportunities. A training subsidy,
living allowance, or stipend, not to exceed an amount equal to 100 percent of the poverty
line for a family of two as defined in deleted text begin United States Code, title 42, section 673, paragraph
(2) deleted text end new text begin the final rules and regulations of the Workforce Innovation and Opportunity Act new text end , may
be provided to program participants. The wage or stipend must be provided to participants
who are recipients of public assistance in a manner or amount which will not reduce public
assistance benefits. The work experience component must be designed so that work projects
result in (1) the expansion or improvement of residential units for homeless persons and
deleted text begin very deleted text end low income families; (2) improvements to the energy efficiency and environmental
health of residential units; (3) facilities to support community garden projects; or (4)
rehabilitation, improvement, or construction of eligible education, social service, or health
facilities that principally serve homeless or deleted text begin very deleted text end low income individuals and families. Any
work project must include direct supervision by individuals skilled in each specific vocation.
Program participants may earn credits toward the completion of their secondary education
from their participation in the work experience component.

Sec. 11.

Minnesota Statutes 2022, section 116L.365, subdivision 1, is amended to read:

Subdivision 1.

Priority for housing.

Any residential or transitional housing units that
become available through a work project that is part of the program described in section
116L.364 must be allocated in the following order:

(1) homeless targeted youth who have participated in constructing, rehabilitating, or
improving the unit;

(2) homeless families with at least one dependent;

(3) other homeless individuals;

(4) other deleted text begin very deleted text end low income families and individuals; and

(5) families or individuals that receive public assistance and that do not qualify in any
other priority group.

Sec. 12.

new text begin [116L.43] TARGETED POPULATIONS WORKFORCE GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Community-based organization" means a nonprofit organization that:
new text end

new text begin (1) provides workforce development programming or services;
new text end

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

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

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

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

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

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

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

new text begin (g) "Small business" has the same meaning as section 645.445.
new text end

new text begin Subd. 2. new text end

new text begin Job and entrepreneurial skills training grants. new text end

new text begin (a) The commissioner shall
establish a job and entrepreneurial skills training grant program that must provide competitive
funding to community-based organizations to provide skills training that leads to employment
or business development in high-growth industries.
new text end

new text begin (b) Eligible forms of skills training include:
new text end

new text begin (1) student tutoring and testing support services;
new text end

new text begin (2) training and employment placement in high-wage and high-growth employment;
new text end

new text begin (3) assistance in obtaining industry specific certifications;
new text end

new text begin (4) remedial training leading to enrollment in further training or education;
new text end

new text begin (5) real-time work experience or on-the-job training;
new text end

new text begin (6) career and educational counseling;
new text end

new text begin (7) work experience and internships;
new text end

new text begin (8) supportive services;
new text end

new text begin (9) tuition reimbursement for new entrants into public sector careers;
new text end

new text begin (10) career mentorship;
new text end

new text begin (11) postprogram case management services;
new text end

new text begin (12) job placement services; and
new text end

new text begin (13) the cost of corporate board of director training for people of color.
new text end

new text begin (c) Grant awards must not exceed $750,000 per year per organization and all funding
awards must be made for the duration of a biennium. An organization may partner with
another organization to utilize grant awards, provided that the organizations must not be
funded to deliver the same services. Grants awarded under this subdivision are not subject
to section 116L.98.
new text end

new text begin Subd. 3. new text end

new text begin Diversity and inclusion training for small employers. new text end

new text begin (a) The commissioner
shall establish a diversity and inclusion training grant program which shall provide
competitive grants to small businesses for diversity and inclusion training, including the
creation and implementation of a plan to actively engage, hire, and retain people of color
for both entry level and high-wage opportunities, including management and board of
director positions.
new text end

new text begin (b) Grant awards must not exceed $300,000 per year per business. A business may only
receive one grant for diversity and inclusion training per biennium.
new text end

new text begin (c) Applicants are required to submit a plan for use of the funds. Grant recipients are
required to submit a diversity and inclusion implementation plan after training is completed.
new text end

new text begin (d) Grants awarded under this subdivision are not subject to section 116L.98.
new text end

new text begin (e) Sections 116J.993 to 116J.995 do not apply to assistance under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Capacity building. new text end

new text begin (a) The commissioner shall establish a capacity building
grant program to provide training services and funding for capacity building to
community-based organizations.
new text end

new text begin (b) Eligible uses of grant awards include covering the cost of workforce program delivery
staff, program infrastructure costs, and workforce training related service model development.
new text end

new text begin (c) Grant awards must not exceed $50,000 per organization and are limited to one grant
per community-based organization.
new text end

new text begin (d) Grants awarded under this subdivision are not subject to section 116L.98.
new text end

new text begin (e) Grant recipients must submit a report to the commissioner outlining the use of grant
funds and the impact of that funding on the community-based organization's future ability
to provide workforce development services.
new text end

Sec. 13.

Minnesota Statutes 2022, section 116L.56, subdivision 2, is amended to read:

Subd. 2.

Eligible applicant.

"Eligible applicant" means an individual who is between
the ages of 14 and deleted text begin 21 deleted text end new text begin 24 new text end and economically disadvantaged.

An at-risk youth who is classified as a family of one is deemed economically
disadvantaged. For purposes of eligibility determination the following individuals are
considered at risk:

(1) a pregnant or parenting youth;

(2) a youth with limited English proficiency;

(3) a potential or actual school dropout;

(4) a youth in an offender or diversion program;

(5) a public assistance recipient or a recipient of group home services;

(6) a youth with disabilities including learning disabilities;

(7) a child of drug or alcohol abusers or a youth with substance use disorder;

(8) a homeless or runaway youth;

(9) a youth with basic skills deficiency;

(10) a youth with an educational attainment of one or more levels below grade level
appropriate to age; or

(11) a foster child.

Sec. 14.

Minnesota Statutes 2022, section 116L.561, subdivision 5, is amended to read:

Subd. 5.

Allocation formula.

Seventy percent of Minnesota youth program funds must
be allocated based on the county's share of economically disadvantaged youth. The remaining
30 percent must be allocated based on the county's share of population ages 14 to deleted text begin 21 deleted text end new text begin 24 new text end .

Sec. 15.

Minnesota Statutes 2022, section 116L.562, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section:

(1) "eligible organization" or "eligible applicant" means a local government unit, nonprofit
organization, community action agency, or a public school district;

(2) "at-risk youth" means youth classified as at-risk under section 116L.56, subdivision
2; and

(3) "economically disadvantaged" means youth who are economically disadvantaged as
defined in deleted text begin United States Code, title 29, section 1503 deleted text end new text begin the rules and regulations of the
Workforce Innovation and Opportunity Act new text end .

Sec. 16.

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

Subd. 20.

Noncovered employment.

"Noncovered employment" means:

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

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

(3) employment for a foreign government;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 17.

Minnesota Statutes 2022, section 268A.15, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Provider rate increases. new text end

new text begin (a) Effective July 1, 2023, subject to the availability
of additional funding, an annual growth factor adjustment of no less than a three percent
increase for providers of extended employment services for persons with severe disabilities
shall be authorized. If there is sufficient funding appropriated, the commissioner shall
increase reimbursement rates by the percentage of this adjustment.
new text end

new text begin (b) The commissioner of management and budget must include an annual inflationary
adjustment in reimbursement rates for providers of extended employment services for
persons with severe disabilities as a budget change request in each biennial detailed
expenditure budget submitted to the legislature under section 16A.11.
new text end

Sec. 18.

Minnesota Statutes 2022, section 469.40, subdivision 11, is amended to read:

Subd. 11.

Public infrastructure project.

(a) "Public infrastructure project" means a
project financed in part or in whole with public money in order to support the medical
business entity's development plans, as identified in the DMCC development plan. A public
infrastructure project may:

(1) acquire real property and other assets associated with the real property;

(2) demolish, repair, or rehabilitate buildings;

(3) remediate land and buildings as required to prepare the property for acquisition or
development;

(4) install, construct, or reconstruct elements of public infrastructure required to support
the overall development of the destination medical center development district including deleted text begin , deleted text end
but not limited to deleted text begin , deleted text end new text begin : new text end streets, roadways, utilities systems and related facilities deleted text begin , deleted text end new text begin ; new text end utility relocations
and replacements deleted text begin , deleted text end new text begin ; new text end network and communication systems deleted text begin , deleted text end new text begin ; new text end streetscape improvements deleted text begin , deleted text end new text begin ; new text end
drainage systems deleted text begin , deleted text end new text begin ; new text end sewer and water systems deleted text begin , deleted text end new text begin ; new text end subgrade structures and associated
improvements deleted text begin , deleted text end new text begin ; new text end landscaping deleted text begin , deleted text end new text begin ; new text end facade construction and restoration deleted text begin , deleted text end new text begin ; design and predesign,
including architectural, engineering, and similar services; legal, regulatory, and other
compliance services; construction costs, including all materials and supplies; new text end wayfinding
and signage deleted text begin , deleted text end new text begin ; community engagement; transit costs incurred on or after March 16, 2020; new text end
and other components of community infrastructure;

(5) acquire, construct or reconstruct, and equip parking facilities and other facilities to
encourage intermodal transportation and public transit;

(6) install, construct or reconstruct, furnish, and equip parks, cultural, and recreational
facilities, facilities to promote tourism and hospitality, conferencing and conventions, and
broadcast and related multimedia infrastructure;

(7) make related site improvements including, without limitation, excavation, earth
retention, soil stabilization and correction, and site improvements to support the destination
medical center development district;

(8) prepare land for private development and to sell or lease land;

(9) provide costs of relocation benefits to occupants of acquired properties; and

(10) construct and equip all or a portion of one or more suitable structures on land owned
by the city for sale or lease to private development; provided, however, that the portion of
any structure directly financed by the city as a public infrastructure project must not be sold
or leased to a medical business entity.

(b) A public infrastructure project is not a business subsidy under section 116J.993.

(c) Public infrastructure project includes the planning, preparation, and modification of
the development plan under section 469.43. The cost of that planning, preparation, and any
modification is a capital cost of the public infrastructure project.

new text begin EFFECTIVE DATE. new text end

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

Sec. 19.

Minnesota Statutes 2022, section 469.47, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

(c) "Construction projects" means:

(1) for expenditures by a medical business entity, construction of buildings in the city
for which the building permit was issued after June 30, 2013; and

(2) for any other expenditures, construction of privately owned buildings and other
improvements that are undertaken pursuant to or as part of the development plan and are
located within a medical center development district.

(d) "Expenditures" means expenditures made by a medical business entity or by an
individual or private entity on construction projects for the capital cost of the project
including deleted text begin , deleted text end but not limited to:

(1) design and predesign, including architectural, engineering, and similar services;

(2) legal, regulatory, and other compliance costs of the project;

(3) land acquisition, demolition of existing improvements, and other site preparation
costs;

(4) construction costs, including all materials and supplies of the project; and

(5) equipment and furnishings that are attached to or become part of the real property.

Expenditures excludes supplies and other items with a useful life of less than a year that
are not used or consumed in constructing improvements to real property or are otherwise
chargeable to capital costs.

(e) "Qualified expenditures for the year" means the total certified expenditures since
June 30, 2013, through the end of the preceding year, minus $200,000,000.

(f) "Transit costs" means the portions of a public infrastructure project that are for public
transit intended primarily to serve the district, deleted text begin such as deleted text end new text begin including but not limited to buses
and other means of transit, new text end transit stations, equipment, new text begin bus charging stations or bus charging
equipment, new text end rights-of-way, and deleted text begin similar deleted text end costs new text begin permitted under section 469.40, subdivision
11. This provision includes transit costs incurred on or after March 16, 2020 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 20.

Minnesota Statutes 2022, section 469.47, subdivision 5, is amended to read:

Subd. 5.

State transit aid.

(a) The city qualifies for state transit aid under this section
if the county contributes the required local matching contribution under subdivision 6 or
the city or county has agreed to make an equivalent contribution out of other funds for the
year.

(b) If the city qualifies for aid under paragraph (a), the commissioner must pay the city
the state transit aid in the amount calculated under this paragraph. The amount of the state
transit aid for a year equals the qualified expenditures for the year, as certified by the
commissioner, multiplied by 0.75 percent, deleted text begin reduced by deleted text end new text begin subject to new text end the amount of the new text begin required
new text end local contribution under subdivision 6. new text begin City or county contributions that are in excess of
this ratio carry forward and are credited toward subsequent years. new text end The maximum amount
of state transit aid payable in any year is limited to no more than $7,500,000. If the
commissioner determines that the city or county has not made the full required matching
local contribution for the year, the commissioner must pay state new text begin transit new text end aid only deleted text begin in proportion
to the amount of deleted text end new text begin for new text end the matching contribution made deleted text begin for the year deleted text end and any unpaid amount
is a carryover aid. The carryover aid must be paid in the first year after the required matching
contribution deleted text begin for that prior year deleted text end is made and in which the aid entitlement for the current year
is less than the maximum annual limit, but only to the extent the carryover, when added to
the current year aid, is less than the maximum annual limit.

(c) The commissioner, in consultation with the commissioner of management and budget,
and representatives of the city and the corporation, must establish a total limit on the amount
of state aid payable under this subdivision that will be adequate to finance, in combination
with the local contribution, $116,000,000 of transit costs.

(d) The city must use state transit aid it receives under this subdivision for transit costs.
The city must maintain appropriate records to document the use of the funds under this
requirement.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21. new text begin MINNESOTA EMPLOYER REASONABLE ACCOMMODATION FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Applicant" means any person, whether employed or unemployed, seeking or entering
into any arrangement for employment or change of employment with an eligible employer.
new text end

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

new text begin (d) "Eligible employer" means an employer domiciled within the legal boundaries of
Minnesota and having its principal place of business as identified in its certificate of
incorporation in the state of Minnesota who:
new text end

new text begin (1) employs not more than 500 employees on any business day during the preceding
calendar year; and
new text end

new text begin (2) generates $5,000,000 or less in gross annual revenue.
new text end

new text begin (e) "Employee" has the meaning given in Minnesota Statutes, section 363A.03,
subdivision 15.
new text end

new text begin (f) "Individual with a disability" has the meaning given to "qualified disabled person"
in Minnesota Statutes, section 363A.03, subdivision 36.
new text end

new text begin (g) "Reasonable accommodation" has the meaning given in Minnesota Statutes, section
363A.08, subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Reimbursement grant program established. new text end

new text begin The commissioner shall establish
a reasonable accommodation reimbursement grant program that reimburses eligible
employers for the cost of expenses incurred in providing reasonable accommodations for
individuals with a disability who are either applicants or employees of the eligible employer.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) The commissioner must develop forms and procedures for
soliciting and reviewing applications for reimbursement under this section.
new text end

new text begin (b) The program shall award reimbursements to eligible employers to the extent that
funds are available in the account established under subdivision 5 for this purpose.
new text end

new text begin (c) Applications shall be processed on a first-received, first-processed basis within each
fiscal year until funding is exhausted. Applications received after funding has been exhausted
in a fiscal year are not eligible for reimbursement.
new text end

new text begin (d) Documentation for reimbursement shall be provided by eligible employers in a form
approved by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Reimbursement awards. new text end

new text begin The maximum total reimbursement per eligible
employer in a fiscal year is $30,000 and:
new text end

new text begin (1) submissions for onetime reasonable accommodation expenses must be no less than
$250 and no more than $15,000 per individual with a disability; and
new text end

new text begin (2) submissions for ongoing reasonable accommodation expenses have no minimum or
maximum requirements.
new text end

new text begin Subd. 5. new text end

new text begin Employer reasonable accommodation fund account established. new text end

new text begin The
employer reasonable accommodation fund account is created as an account in the special
revenue fund. Money in the account is appropriated to the commissioner for the purposes
of reimbursing eligible employers under this section.
new text end

new text begin Subd. 6. new text end

new text begin Technical assistance and consultation. new text end

new text begin The commissioner may provide
technical assistance regarding requests for reasonable accommodations.
new text end

new text begin Subd. 7. new text end

new text begin Administration and marketing costs. new text end

new text begin The commissioner may use up to 20
percent of the biennial appropriation for administration and marketing of this section.
new text end

new text begin Subd. 8. new text end

new text begin Notification. new text end

new text begin By September 1, 2023, or within 60 days following final enactment,
whichever is later, and each year thereafter by June 30, the commissioner shall make publicly
available information regarding the availability of funds for reasonable accommodation
reimbursement and the procedure for requesting reimbursement under this section.
new text end

new text begin Subd. 9. new text end

new text begin Reports to the legislature. new text end

new text begin By January 15, 2024, and each January 15 thereafter
until expiration, the commissioner must submit a report to the chairs and ranking minority
members of the house of representatives and the senate committees with jurisdiction over
workforce development that details the use of grant funds. This report must include data on
the number of employer reimbursements the program made in the preceding calendar year.
The report must include:
new text end

new text begin (1) the number and type of accommodations requested;
new text end

new text begin (2) the cost of accommodations requested;
new text end

new text begin (3) the employers from which the requests were made;
new text end

new text begin (4) the number and type of accommodations that were denied and why;
new text end

new text begin (5) any remaining balance left in the account; and
new text end

new text begin (6) if the account was depleted, the date on which funds were exhausted and the number,
type, and cost of accommodations that were not reimbursed to employers.
new text end

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2025, or when money appropriated
for its purpose expires, whichever is later.
new text end

Sec. 22. new text begin ENGAGEMENT TO ADDRESS BARRIERS TO EMPLOYMENT.
new text end

new text begin The commissioner of employment and economic development shall engage stakeholders
to identify barriers that adults with mental illness face in obtaining and retaining employment
and recommend strategies to address those barriers. The commissioner shall solicit feedback
from advocacy organizations for people with mental illness, mental health providers, people
with mental illness, organizations that support people with mental illness in obtaining
employment, and employers. The commissioner shall submit a plan to the legislative
committees with jurisdiction over employment and human services before February 1, 2024,
identifying the barriers to employment and making recommendations on how to best improve
the employment rate among people with mental illness.
new text end

Sec. 23. new text begin SOUTHWESTERN MINNESOTA WORKFORCE DEVELOPMENT
SCHOLARSHIP PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Southwest Initiative Foundation" or "foundation" means a nonprofit organization
that provides services to the following counties in southwest Minnesota: Big Stone,
Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker,
Murray, Nobles, Pipestone, Redwood, Renville, Rock, Swift, and Yellow Medicine, and
the Lower Sioux Indian Community and Upper Sioux Community.
new text end

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

new text begin (e) "Eligible student" means a student applicant who:
new text end

new text begin (1) is eligible for resident or nonresident tuition;
new text end

new text begin (2) is enrolling in an eligible program as determined by the regional workforce
development board; and
new text end

new text begin (3) is enrolling at least half-time at a Minnesota West college listed in subdivision 4.
new text end

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

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner shall establish a southwestern
Minnesota workforce development scholarship pilot program administered by the foundation
to assist in meeting the workforce challenges in southwest Minnesota and enhance long-term
economic self-sufficiency by connecting students, higher education facilities, employers,
and communities.
new text end

new text begin Subd. 3. new text end

new text begin Grant to the Southwest Initiative Foundation. new text end

new text begin The commissioner shall award
all grant funds to the foundation, which shall administer the southwestern Minnesota
workforce development scholarship pilot program. The foundation may use up to seven
percent of grant funds for administrative costs.
new text end

new text begin Subd. 4. new text end

new text begin Scholarship awards. new text end

new text begin (a) The foundation shall coordinate available funds and
award scholarships to the following Minnesota West colleges:
new text end

new text begin (1) Canby;
new text end

new text begin (2) Granite Falls;
new text end

new text begin (3) Pipestone;
new text end

new text begin (4) Worthington;
new text end

new text begin (5) Jackson;
new text end

new text begin (6) Luverne; and
new text end

new text begin (7) Marshall.
new text end

new text begin (b) Scholarships shall be coordinated by the individual colleges listed in paragraph (a)
and applied only after all other available grant funding through a last-dollar-in model.
new text end

new text begin (c) In awarding grants, priority shall first be given to applicants that are
program-continuing applicants. Priority shall then be given to employer-sponsored applicants.
new text end

new text begin (d) Scholarships are intended to supplement all other grant opportunities and to cover
the full cost of attendance to the eligible students.
new text end

new text begin Subd. 5. new text end

new text begin Program eligibility. new text end

new text begin Scholarships shall be awarded to eligible students who
are enrolled in or enrolling in a high-demand occupation associate degree, diploma, or
certificate or industry-recognized credential program as defined annually by the applicable
regional workforce development board. Students must complete the Free Application for
Federal Student Aid if applicable to the program to which they are applying.
new text end

new text begin Subd. 6. new text end

new text begin Renewal; cap. new text end

new text begin A student who has been awarded a scholarship may apply in
subsequent academic years, but total lifetime awards are not to exceed two full scholarships
per student. Students may only be awarded a second scholarship upon successful completion
of the program and subsequent work period requirement.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin (a) The foundation and Minnesota West colleges shall establish
an application process and other guidelines for implementing the pilot program.
new text end

new text begin (b) Each college shall receive from their respective workforce development board by
December 1 of each year, commencing in 2023, a list of eligible programs administered by
the college that are eligible for subsequent year scholarships. The applicable workforce
development board must consider data based on a workforce shortage for full-time
employment requiring postsecondary education that is unique to the specific region, as
reported in the most recent Department of Employment and Economic Development job
vacancy survey data for the economic development region in which the college is located.
A workforce shortage area is one in which the job vacancy rate for full-time employment
in a specific occupation in a region is higher than the state average vacancy rate for that
same occupation.
new text end

new text begin Subd. 8. new text end

new text begin Scholarship recipient requirements. new text end

new text begin (a) A recipient of a scholarship awarded
under the program established in this section shall:
new text end

new text begin (1) be enrolled in a high-demand occupation associate degree, diploma, or certificate or
industry-recognized credential program as defined by the regional workforce development
board and offered by a Minnesota West college;
new text end

new text begin (2) adhere to any applicable participating local employer program requirements;
new text end

new text begin (3) commit to three years of full-time employment with:
new text end

new text begin (i) a sponsoring local employer; or
new text end

new text begin (ii) any qualified local employer within the high-demand occupations as defined by the
regional workforce development board; and
new text end

new text begin (4) fulfill the three-year full-time employment commitment in a county within the service
area of the foundation as listed in subdivision 1, paragraph (c).
new text end

new text begin (b) If a recipient of a scholarship fails to fulfill the requirements of paragraph (a), the
foundation may convert the scholarship to a loan. Amounts repaid from a loan shall be used
to fund scholarship awards under this section.
new text end

new text begin Subd. 9. new text end

new text begin Employer partnerships. new text end

new text begin The foundation and Minnesota West colleges shall
establish partnerships with qualified local employers and work to ensure that a percentage
of the state funds appropriated to each college for the southwestern Minnesota workforce
development scholarship program are equally matched with employer funds.
new text end

new text begin Subd. 10. new text end

new text begin Report required. new text end

new text begin The foundation must submit an annual report by December
31 of each year regarding the scholarship program to the chairs and ranking minority
members of the legislative committees with jurisdiction over employment and economic
development policy. The first report is due no later than December 31, 2023. The annual
report shall include:
new text end

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

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

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

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

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

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

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

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

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

Sec. 24. new text begin UNEMPLOYMENT INSURANCE FINE REDUCTION AND INTEREST
ELIMINATION.
new text end

new text begin By January 1, 2024, the commissioner of employment and economic development must
make recommendations to the legislative committees with jurisdiction over workforce
development for how the unemployment insurance system will reduce the fines and interest
applied to misrepresentation overpayments. The commissioner must provide a timeline for
implementing a reduction of the 40 percent fine to 15 percent and an elimination of the 12
percent interest rate.
new text end