HF 3028

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/12/2023 12:56pm

A bill for an act
relating to state government; establishing a biennial budget for the Department of
Employment and Economic Development and Explore Minnesota; appropriating
money for Capitol area improvements; modifying various policy provisions;
requiring reports; appropriating money; amending Minnesota Statutes 2022, sections
116J.871, subdivisions 1, 2; 116J.8748, subdivisions 3, 4, 6, by adding a
subdivision; 116J.9924, subdivision 4; proposing coding for new law in Minnesota
Statutes, chapter 116J; repealing Minnesota Statutes 2022, section 116J.9924,
subdivision 6; Laws 2019, First Special Session chapter 7, article 2, section 8, as
amended.

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 695,532,000 new text end

new text begin $ new text end

new text begin 125,230,000 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 693,482,000 new text end	new text begin 123,180,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 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 693,290,000 new text end

new text begin 122,988,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 691,240,000 new text end	new text begin 120,938,000 new text end
new text begin Remediation new text end	new text begin 700,000 new text end	new text begin 700,000 new text end
new text begin Workforce Development new text end	new text begin 1,350,000 new text end	new text begin 1,350,000 new text end

new text begin (a) $1,787,000 each year is for the greater
Minnesota business development public
infrastructure grant program under Minnesota
Statutes, section 116J.431. This appropriation
is available until June 30, 2027.
new text end

new text begin (b) $6,425,000 each year is for the small
business partnership program under Minnesota
Statutes, section 116J.8746. In fiscal year 2026
and beyond, the base amount is $4,679,000.
new text end

new text begin (c) $1,772,000 each year is for contaminated
site cleanup and development grants under
Minnesota Statutes, sections 116J.551 to
116J.558. This appropriation is available until
expended.
new text end

new text begin (d) $700,000 each year is from the remediation
fund for contaminated site cleanup and
development grants under Minnesota Statutes,
sections 116J.551 to 116J.558. This
appropriation is available until expended.
new text end

new text begin (e) $389,000 each year is for the Center for
Rural Policy and Development. In fiscal year
2026 and beyond, the base amount is
$139,000.
new text end

new text begin (f) $25,000 each year is for the administration
of state aid for the Destination Medical Center
under Minnesota Statutes, sections 469.40 to
469.47.
new text end

new text begin (g) $875,000 each year is for the host
community economic development program
established in Minnesota Statutes, section
116J.548.
new text end

new text begin (h)(1) $1,500,000 each year is for grants to
local communities to increase the number of
quality child care providers to support
economic development. This appropriation is
available through June 30, 2025. Fifty percent
of grant funds 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 funds in either cash
or in-kind contribution, unless the
commissioner waives the requirement. Grant
funds 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 funds,
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 funds
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 minority
members of the legislative committees with
jurisdiction over early learning, child care, and
economic development.
new text end

new text begin (i) $1,000,000 each year is for a grant to the
Minnesota Initiative Foundations. This
appropriation is available until June 30, 2027.
The Minnesota Initiative Foundations must
use grant funds 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 (j) $8,000,000 each year is for the Minnesota
job creation fund under Minnesota Statutes,
section 116J.8748. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administrative expenses. This appropriation
is available until expended.
new text end

new text begin (k) $12,370,000 each year is for the Minnesota
investment fund under Minnesota Statutes,
section 116J.8731. Of this amount, the
commissioner of employment and economic
development may use up to three percent for
administration and monitoring of the program.
This appropriation is available until expended.
Notwithstanding Minnesota Statutes, section
116J.8731, money appropriated to the
commissioner for the Minnesota investment
fund may be used for the redevelopment
program under Minnesota Statutes, sections
116J.575 and 116J.5761, at the discretion of
the commissioner. Grants under this paragraph
are not subject to the grant amount limitation
under Minnesota Statutes, section 116J.8731.
new text end

new text begin (l) $2,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
new text end

new text begin (m) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Funds
available under this paragraph are for transfer
into the emerging entrepreneur program
special revenue fund account created under
Minnesota Statutes, chapter 116M, and are
available until expended. Of this amount, up
to four percent is for administration and
monitoring of the program.
new text end

new text begin (n) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.
new text end

new text begin (o) $12,000 each year is for a grant to the
Upper Minnesota Film Office.
new text end

new text begin (p) $500,000 each year is for a grant to the
Minnesota Film and TV Board for the film
production jobs program under Minnesota
Statutes, section 116U.26. This appropriation
is available until June 30, 2027.
new text end

new text begin (q) $4,195,000 each year is for the Minnesota
job skills partnership program under
Minnesota Statutes, sections 116L.01 to
116L.17. If the appropriation for either year
is insufficient, the appropriation for the other
year is available. This appropriation is
available until expended.
new text end

new text begin (r) $1,350,000 each year from the workforce
development fund is for jobs training grants
under Minnesota Statutes, section 116L.41.
new text end

new text begin (s) $2,500,000 each year is for Launch
Minnesota. This appropriation is available
until June 30, 2027. The base in fiscal year
2026 is $0. Of this amount:
new text end

new text begin (1) $1,500,000 each year is for innovation
grants to eligible Minnesota entrepreneurs or
start-up businesses to assist with their
operating needs;
new text end

new text begin (2) $500,000 each year is for administration
of Launch Minnesota; and
new text end

new text begin (3) $500,000 each year is for grantee activities
at Launch Minnesota.
new text end

new text begin (t) $250,000 each year is for the publication,
dissemination, and use of labor market
information under Minnesota Statutes, section
116J.401.
new text end

new text begin (u) $500,000 each year is for the airport
infrastructure renewal (AIR) grant program
under Minnesota Statutes, section 116J.439.
In awarding grants with this appropriation, the
commissioner must prioritize eligible
applicants that did not receive a grant pursuant
to the appropriation in Laws 2019, First
Special Session chapter 7, article 1, section 2,
subdivision 2, paragraph (q).
new text end

new text begin (v) $350,000 each year is for administration
of the community energy transition office.
new text end

new text begin (w) $500,000,000 in the first year is for
providing businesses with matching funds
required by federal programs. This
appropriation is available until spent. Of this
amount:
new text end

new text begin (1) $100,000,000 is to match no less than
$100,000,000 in federal funds provided by
Public Law 117-328 to establish a campus for
biomanufacturing pilot-scale testing and
commercialization, including site acquisition
and development;
new text end

new text begin (2) $100,000,000 is to match no less than
$100,000,000 in federal funds provided by
Public Law 117-328 for economic
development projects that expand Minnesota's
economy and job creation; and
new text end

new text begin (3) $300,000,000 is to match no less than
$300,000,000 in federal funds provided by
Public Law 117-167 for microelectronic
manufacturing facilities and workforce
development.
new text end

new text begin (x) $1,250,000 each year is to hire, train, and
deploy small business navigators in
communities and locations throughout the state
to assist small businesses and entrepreneurs,
especially historically underserved small
businesses and entrepreneurs, in accessing
state, federal, local, and private small business
assistance programs. Of this amount, $500,000
must be used to improve the agency's digital
navigation and information services for small
businesses and entrepreneurs. In fiscal year
2026 and beyond, the base amount is
$1,000,000.
new text end

new text begin (y) $500,000 each year is for the Office of
Child Care Community Partnerships. Of this
amount:
new text end

new text begin (1) $450,000 each year is for administration
of the Office of Child Care Community
Partnerships; and
new text end

new text begin (2) $50,000 each year is for the Labor Market
Information Office to conduct research and
analysis related to the child care industry.
new text end

new text begin (z) $5,000,000 in the first year is for a grant
to the Bloomington Port Authority to provide
funding for the Expo 2027 host organization.
The Bloomington Port Authority must enter
into an agreement with the host organization
over the use of funds, which may be used for
activities, including but not limited to
finalizing the community dossier and staffing
the host organization as well as infrastructure
design and planning, financial modeling,
development planning and coordination of
both real estate and public private partnerships,
and reimbursement of the Bloomington Port
Authority for costs incurred. In selecting
vendors and exhibitors for Expo 2027, the host
organization shall prioritize outreach to,
collaboration with, and inclusion of businesses
that are majority owned by people of color,
women, and people with disabilities. The host
organization and the Bloomington Port
Authority may be reimbursed for expenses 90
days prior to encumbrance. This appropriation
is contingent on approval of the project by the
Bureau International des Expositions.
new text end

new text begin (aa) $500,000 each year is for grants to small
business development centers under Minnesota
Statutes, section 116J.68. Money made
available under this paragraph may be used to
match funds under the federal Small Business
Development Center (SBDC) program under
United States Code, title 15, section 648, to
provide consulting and technical services or
to build additional SBDC network capacity to
serve entrepreneurs and small businesses.
new text end

new text begin (bb) $1,500,000 each year is for deposit in the
community wealth-building account in the
special revenue fund. Of this amount, up to
five percent is for administration and
monitoring of the community wealth-building
grant program under Minnesota Statutes,
section 116J.9925.
new text end

new text begin (cc) $4,000,000 in the first year and
$1,000,000 in the second year are for grants
to the Neighborhood Development Center.
This is a onetime appropriation. Of these
amounts:
new text end

new text begin (1) $750,000 each year is for small business
programs, including training, lending, business
services, and real estate programming;
new text end

new text begin (2) $250,000 each year is for technical
assistance activities for partners located
outside the seven-county metropolitan area,
as defined in Minnesota Statutes, section
473.121, subdivision 2;
new text end

new text begin (3) $1,000,000 in the first year is for
development of permanently affordable,
concentrated commercial space and
wraparound business services outside the
seven-county metropolitan area, as defined in
Minnesota Statutes, section 473.121,
subdivision 2; and
new text end

new text begin (4) $2,000,000 in the first year is for high-risk,
character-based loan capital for nonrecourse
loans to be used to leverage at least
$10,000,000 in recourse lending capital.
new text end

new text begin (dd)(1) $5,000,000 in the first year is for a
grant to the Center for Economic Inclusion for
strategic, data-informed investments in job
creation strategies that respond to the needs
of underserved populations statewide. This
may include pay-for-performance contracts
with nonprofit organizations to provide
outreach, training, and support services for
dislocated and chronically underemployed
people, as well as forgivable loans,
revenue-based financing, and equity
investments for entrepreneurs with barriers to
growth. Of this amount, up to ten percent may
be used for the center's technical assistance
and administrative costs. This appropriation
is available until June 30, 2025.
new text end

new text begin (2) By January 15, 2026, the Center for
Economic Inclusion shall submit a report on
the use of grant funds, including any loans
made, to the legislative committees with
jurisdiction over economic development.
new text end

new text begin (ee) $4,000,000 in the first year is for the
Canadian border counties economic relief
program. Of this amount, $1,000,000 is for
Tribal economic development. This
appropriation is available until June 30, 2025.
new text end

new text begin (ff) $10,000,000 in the first year is for the
targeted community capital project grant
program under Minnesota Statutes, section
116J.9924.
new text end

new text begin (gg) $13,550,000 in the first year is for deposit
in the emerging developer fund account in the
special revenue fund. Of this amount, up to
five percent is for the administration and
monitoring of the emerging developer fund
program under Minnesota Statutes, section
116J.9926.
new text end

new text begin (hh) $2,000,000 in the first year is for a grant
to African Economic Development Solutions
for a loan fund that must address pervasive
economic inequities by supporting business
ventures of entrepreneurs in the African
immigrant community. This appropriation is
available until June 30, 2026.
new text end

new text begin (ii) $500,000 each year is for grants to
Enterprise Minnesota, Inc., to directly invest
in Minnesota manufacturers for the small
business growth acceleration program under
Minnesota Statutes, section 116O.115. This
is a onetime appropriation.
new text end

new text begin (jj)(1) $1,500,000 each year is for grants to
MNSBIR, Inc., to support moving scientific
excellence and technological innovation from
the lab to the market for start-ups and small
businesses by securing federal research and
development funding. The purpose of the grant
is to build a strong Minnesota economy and
stimulate the creation of novel products,
services, and solutions in the private sector;
strengthen the role of small business in
meeting federal research and development
needs; increase the commercial application of
federally supported research results; and
develop and increase the Minnesota
workforce, especially by fostering and
encouraging participation by small businesses
owned by women and people who are Black,
Indigenous, or people of color. This is a
onetime appropriation.
new text end

new text begin (2) MNSBIR, Inc., shall use the grant money
to be the dedicated resource for federal
research and development for small businesses
of up to 500 employees statewide to support
research and commercialization of novel ideas,
concepts, and projects into cutting-edge
products and services for worldwide economic
impact. MNSBIR, Inc., shall use grant money
to:
new text end

new text begin (i) assist small businesses in securing federal
research and development funding, including
the Small Business Innovation Research and
Small Business Technology Transfer programs
and other federal research and development
funding opportunities;
new text end

new text begin (ii) support technology transfer and
commercialization from the University of
Minnesota, Mayo Clinic, and federal
laboratories;
new text end

new text begin (iii) partner with large businesses;
new text end

new text begin (iv) conduct statewide outreach, education,
and training on federal rules, regulations, and
requirements;
new text end

new text begin (v) assist with scientific and technical writing;
new text end

new text begin (vi) help manage federal grants and contracts;
and
new text end

new text begin (vii) support cost accounting and sole-source
procurement opportunities.
new text end

new text begin (kk) $2,000,000 in the first year is for a grant
to African Career, Education, and Resource,
Inc., for operational infrastructure and
technical assistance to small businesses. This
appropriation is available until June 30, 2025.
new text end

new text begin (ll) $4,000,000 in the first year is for a grant
to the African Development Center to provide
loans to purchase commercial real estate and
to expand organizational infrastructure. This
appropriation is available until June 30, 2025.
Of this amount:
new text end

new text begin (1) $2,800,000 is for loans to purchase
commercial real estate targeted at African
immigrant small business owners;
new text end

new text begin (2) $364,000 is for loan loss reserves to
support loan volume growth and attract
additional capital; and
new text end

new text begin (3) $836,000 is for increasing organizational
capacity.
new text end

new text begin (mm)(1) $375,000 each year is for grants to
PFund Foundation to provide grants to
LGBTQ+-owned small businesses and
entrepreneurs. Of this amount, up to ten
percent may be used for PFund Foundation's
technical assistance and administrative costs.
This appropriation is onetime and is available
until June 30, 2026. To the extent practicable,
money must be distributed by PFund
Foundation as follows:
new text end

new text begin (i) at least 33.3 percent to racial
minority-owned businesses; and
new text end

new text begin (ii) at least 33.3 percent to businesses outside
of the seven-county metropolitan area as
defined in Minnesota Statutes, section
473.121, subdivision 2.
new text end

new text begin (nn) $125,000 each year is for grants to
Quorum to provide business support, training,
development, technical assistance, and related
activities for LGBTQ+-owned small
businesses that are recipients of a PFund
Foundation grant. Of this amount, up to ten
percent may be used for Quorum's technical
assistance and administrative costs. This
appropriation is onetime and is available until
June 30, 2026.
new text end

new text begin (oo) $6,000,000 in the first year is for grants
to the Minnesota initiative foundations to
capitalize their revolving loan funds, which
address unmet financing needs of for-profit
business start-ups, expansions, and ownership
transitions; nonprofit organizations; and
developers of housing to support the
construction, rehabilitation, and conversion
of housing units. Of this amount:
new text end

new text begin (1) $1,000,000 is for a grant to the Southwest
Initiative Foundation;
new text end

new text begin (2) $1,000,000 is for a grant to the West
Central Initiative Foundation;
new text end

new text begin (3) $1,000,000 is for a grant to the Southern
Minnesota Initiative Foundation;
new text end

new text begin (4) $1,000,000 is for a grant to the Northwest
Minnesota Foundation;
new text end

new text begin (5) $1,000,000 is for a grant to the Initiative
Foundation; and
new text end

new text begin (6) $1,000,000 is for a grant to the Northland
Foundation.
new text end

new text begin (pp) $627,000 in the first year is for a grant to
Community and Economic Development
Associates (CEDA) to provide funding for
economic development technical assistance
and economic development project grants to
small communities across rural Minnesota and
for CEDA to design, implement, market, and
administer specific types of basic community
and economic development programs tailored
to individual community needs. Technical
assistance grants shall be based on need and
given to communities that are otherwise
unable to afford these services. Of this amount,
up to $270,000 may be used for economic
development project implementation in
conjunction with the technical assistance
received.
new text end

new text begin (qq) $3,000,000 in the first year is for a grant
to the Latino Economic Development Center.
This appropriation is available until June 30,
2025. Of this amount:
new text end

new text begin (1) $1,500,000 is to assist, support, finance,
and launch microentrepreneurs by delivering
training, workshops, and one-on-one
consultations to businesses; and
new text end

new text begin (2) $1,500,000 is to guide prospective
entrepreneurs in their start-up process by
introducing them to key business concepts,
including business start-up readiness. Grant
proceeds must be used to offer workshops on
a variety of topics throughout the year,
including finance, customer service,
food-handler training, and food-safety
certification. Grant proceeds may also be used
to provide lending to business startups.
new text end

new text begin (rr)(1) $125,000 each year is for grants to the
Latino Chamber of Commerce Minnesota to
support the growth and expansion of small
businesses statewide. Funds may be used for
the cost of programming, outreach, staffing,
and supplies. This is a onetime appropriation.
new text end

new text begin (2) By January 15, 2026, the Latino Chamber
of Commerce Minnesota must submit a report
to the legislative committees with jurisdiction
over economic development that details the
use of grant funds and the grant's economic
impact.
new text end

new text begin (ss)(1) $7,500,000 in the first year is for a
grant to the Metropolitan Economic
Development Association (MEDA) for
statewide business development and assistance
services to minority-owned businesses. Of this
amount:
new text end

new text begin (i) $5,000,000 is for a revolving loan fund to
provide additional minority-owned businesses
with access to capital; and
new text end

new text begin (ii) $2,500,000 is for operating support
activities related to business development and
assistance services for minority business
enterprises.
new text end

new text begin (2) By February 1, 2025, MEDA shall report
to the commissioner and the legislative
committees with jurisdiction over economic
development on the use of grant funds and
grant outcomes.
new text end

new text begin (tt) $175,000 in the first year is for a grant to
the city of South St. Paul for repurposing the
1927 American Legion Memorial Library after
the property is no longer used as a library. This
appropriation is available until the project is
completed or abandoned, subject to Minnesota
Statutes, section 16A.642.
new text end

new text begin (uu) $62,934,000 each year is for the
empowering enterprise program. This is a
onetime appropriation, of which:
new text end

new text begin (1) at least $31,000,000 each year is for a grant
to the city of Minneapolis;
new text end

new text begin (2) $11,000,000 each year is for a grant to the
city of St. Paul;
new text end

new text begin (3) $5,425,000 each year is for a grant to the
Northside Economic Opportunity Network;
new text end

new text begin (4) $5,425,000 each year is for a grant to the
Lake Street Council;
new text end

new text begin (5) $5,425,000 each year is for a grant to the
Midway Chamber of Commerce; and
new text end

new text begin (6) $250,000 each year is for a grant to the
Asian Economic Development Association.
new text end

new text begin (vv) $250,000 in the first year is for a grant to
LatinoLEAD for organizational
capacity-building.
new text end

new text begin (ww) $200,000 in the first year is for a grant
to the Neighborhood Development Center for
small business competitive grants to software
companies working to improve employee
engagement and workplace culture and to
reduce turnover.
new text end

new text begin (xx) $2,000,000 in the first year and
$1,000,000 in the second year are for grants
to the Local Initiatives Support Corporation.
This is a onetime appropriation. Of these
amounts:
new text end

new text begin (1) $200,000 in the first year and $100,000 in
the second year are for predevelopment grants
and technical assistance in support of real
estate development in areas negatively affected
by civil unrest; and
new text end

new text begin (2) $1,800,000 in the first year and $900,000
in the second year are for capitalizing a loan
program for the development and construction
of commercial and residential projects in areas
negatively affected by civil unrest. A priority
for use of these funds shall be participants in
programs for emerging developers.
new text end

new text begin (yy) $1,000,000 in fiscal year 2024 is for a
grant to WomenVenture to support child care
providers through business training and shared
services programs and to create materials that
could be used, free of charge, for start-up,
expansion, and operation of child care
businesses statewide, with the goal of helping
new and existing child care businesses in
underserved areas of the state become
profitable and sustainable. The commissioner
shall report data on outcomes and
recommendations for replication of this
training program throughout Minnesota to the
governor and relevant committees of the
legislature by December 15, 2025. This is a
onetime appropriation and is available until
June 20, 2025.
new text end

new text begin Subd. 3. new text end new text begin Minnesota Trade Office new text end

new text begin $2,242,000 new text end

new text begin $2,242,000 new text end

new text begin (a) $300,000 each year is for the STEP grants
in Minnesota Statutes, section 116J.979.
new text end

new text begin (b) $180,000 each year is for the Invest
Minnesota marketing initiative under
Minnesota Statutes, section 116J.9781.
new text end

new text begin (c) $270,000 each year is for the Minnesota
Trade Offices under Minnesota Statutes,
section 116J.978.
new text end

Sec. 3. new text begin EXPLORE MINNESOTA TOURISM new text end

new text begin $ new text end

new text begin 26,307,000 new text end

new text begin $ new text end

new text begin 21,169,000 new text end

new text begin (a) $500,000 each year must be matched from
nonstate sources to develop maximum private
sector involvement in tourism. Each $1 of state
incentive must be matched with $6 of private
sector money. "Matched" means revenue to
the state or documented in-kind, soft match,
or cash expenditures directly expended to
support Explore Minnesota Tourism under
section 116U.05. The incentive in fiscal year
2024 is based on fiscal year 2023 private
sector contributions. The incentive in fiscal
year 2025 is based on fiscal year 2024 private
sector contributions. This incentive is ongoing.
new text end

new text begin (b) $5,900,000 each year is for the
development of new initiatives for Explore
Minnesota Tourism. This is a onetime
appropriation and of this amount:
new text end

new text begin (1) $3,000,000 each year is for competitive
grants for large-scale sporting and other major
events;
new text end

new text begin (2) $1,100,000 each year is for grants to
Minnesota's 11 Tribal Nations to promote and
support new tourism opportunities for Tribal
Nations;
new text end

new text begin (3) $1,000,000 each year is to expand
diversity, equity, inclusion, and accessibility
through tourism marketing;
new text end

new text begin (4) $625,000 each year is for the tourism and
hospitality industry and the Governor's Opener
events;
new text end

new text begin (5) $88,000 each year is to develop new
resources and increase engagement for the
tourism industry; and
new text end

new text begin (6) $87,000 each year is to develop a
long-term sustainability plan for tourism.
new text end

new text begin (c)(1) $2,000,000 in the first year is for a
tourism industry recovery grant program to
provide grants to organizations, Tribal
governments, underserved community groups,
and communities to accelerate the recovery of
the state's tourism industry, with preference
for applicants who have not previously
received grants. Grant money may be used to
support meetings, conventions and group
business, multicommunity and high-visibility
events, and tourism marketing. Explore
Minnesota Tourism must accept grant
applications for at least five business days
beginning at 8:00 a.m. on the first business
day and, if total applications exceed
$10,000,000, the grants must be awarded to
eligible applicants at random until the funding
is exhausted. Of this amount:
new text end

new text begin (i) at least 25 percent must go to groups in
Hennepin and Ramsey counties;
new text end

new text begin (ii) at least 25 percent must go to groups in
Anoka, Carver, Dakota, Scott, and Washington
counties;
new text end

new text begin (iii) at least 25 percent must go to groups
outside of the metropolitan area, as defined
under Minnesota Statutes, section 473.121,
subdivision 2;
new text end

new text begin (iv) at least 25 percent must be distributed as
small grants of no more than $10,000 each for
tourism promotional activities; and
new text end

new text begin (v) up to three percent may be used for
program administration, including promotional
activities and reporting.
new text end

new text begin (2) Explore Minnesota Tourism must submit
a preliminary report by November 1, 2023,
and a final report by January 1, 2025, to the
legislative committees with jurisdiction over
tourism that detail the use of grant funds.
new text end

new text begin (d) Money for marketing grants is available
either year of the biennium. Unexpended grant
money from the first year is available in the
second year.
new text end

ARTICLE 2

ECONOMIC DEVELOPMENT POLICY

Section 1.

new text begin [116J.418] OFFICE OF CHILD CARE COMMUNITY PARTNERSHIPS.
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 in this
subdivision have the meanings given them.
new text end

new text begin (b) "Child care" means the care of children while parents or guardians are at work or
absent for another reason.
new text end

new text begin (c) "Local unit of government" has the meaning given in section 116G.03, subdivision
3.
new text end

new text begin (d) "Office" means the Office of Child Care Community Partnerships established in
subdivision 2, paragraph (a).
new text end

new text begin Subd. 2. new text end

new text begin Office established; purpose. new text end

new text begin (a) An Office of Child Care Community
Partnerships is established within the Department of Employment and Economic
Development. The department may employ a director and staff necessary to carry out the
office's duties under subdivision 4.
new text end

new text begin (b) The purpose of the office is to support child care businesses within the state in order
to:
new text end

new text begin (1) increase the quantity of quality child care available; and
new text end

new text begin (2) improve accessibility to child care for underserved communities and populations.
new text end

new text begin Subd. 3. new text end

new text begin Organization. new text end

new text begin The office shall consist of a director of the Office of Child Care
Community Partnerships, as well as any staff necessary to carry out the office's duties under
subdivision 4.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The office shall have the power and duty to:
new text end

new text begin (1) coordinate with state, regional, local, and private entities to promote investment in
increasing the quantity of quality child care in Minnesota;
new text end

new text begin (2) coordinate with other agencies including but not limited to Minnesota Management
and Budget, the Department of Human Services, and the Department of Education to develop,
recommend, and implement solutions to increase the quantity of quality child care openings;
new text end

new text begin (3) administer the child care economic development grant program and other
appropriations to the department for this purpose;
new text end

new text begin (4) monitor the child care business development efforts of other states and countries;
new text end

new text begin (5) provide support to the governor's Children's Cabinet;
new text end

new text begin (6) provide an annual report, as required by subdivision 5; and
new text end

new text begin (7) perform any other activities consistent with the office's purpose.
new text end

new text begin Subd. 5. 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 Child Care Community Partnerships shall report to the legislative committees with
jurisdiction over child care policy and finance on 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) an analysis of the current access to child care within the state;
new text end

new text begin (2) an analysis of the current shortage of child care workers within the state;
new text end

new text begin (3) a summary of the office's activities;
new text end

new text begin (4) any proposed legislative and policy initiatives; and
new text end

new text begin (5) any other information requested by the legislative committees with jurisdiction over
child care, or that the office deems necessary.
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

Sec. 2.

new text begin [116J.681] SMALL BUSINESS NAVIGATORS.
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) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Small business" has the meaning given in section 645.445.
new text end

new text begin (d) "Underserved" means Black, Indigenous, people of color, veterans, people with
disabilities, rural Minnesotans, and low-income individuals.
new text end

new text begin Subd. 2. new text end

new text begin Generally. new text end

new text begin Small business navigators must work with small businesses and
entrepreneurs to help navigate state programs, as well as programs managed by
nongovernmental partners and other public and private organizations. The purpose of small
business navigators is to connect small businesses and entrepreneurs with the services needed
to be successful.
new text end

new text begin Subd. 3. new text end

new text begin Staffing. new text end

new text begin Staff of small business navigators serve in the classified service of
the state and operate as part of the department's Small Business Assistance Office.
new text end

new text begin Subd. 4. new text end

new text begin Commissioner. new text end

new text begin The commissioner shall develop and implement training
materials and reporting and evaluation procedures for the activities of small business
navigators.
new text end

new text begin Subd. 5. new text end

new text begin Duties. new text end

new text begin Small business navigators shall:
new text end

new text begin (1) provide information and direction to small businesses and entrepreneurs in a timely,
accurate, and comprehensive manner, connecting them with appropriate assistance services
from the state and other governmental and nongovernmental organizations;
new text end

new text begin (2) build relationships with and provide targeted outreach to historically underserved
populations and communities;
new text end

new text begin (3) provide for the delivery of information and assistance, including but not limited to
the use of media, in a culturally appropriate manner that accommodates businesses and
entrepreneurs with limited English proficiency;
new text end

new text begin (4) ensure the availability of small business navigators and materials in all media to
persons with physical disabilities; and
new text end

new text begin (5) coordinate with and augment the services and outreach of the agency's Small Business
Assistance Office, Small Business Development Center, Office of Small Business
Partnerships, and Launch Minnesota.
new text end

Sec. 3.

Minnesota Statutes 2022, section 116J.871, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Economic development" means financial assistance provided to a person directly
or to a local unit of government or nonprofit organization on behalf of a person who is
engaged in the manufacture or sale of goods and services. Economic development does not
include (1) financial assistance for rehabilitation of existing housing deleted text begin or deleted text end new text begin , new text end (2) financial
assistance for new housing construction in which total financial assistance at a single project
site is less than $100,000 new text begin , or (3) financial assistance for detached single-family affordable
homeownership units in which the single project site consists of fewer than five units new text end .

(c) "Financial assistance" means (1) a grant awarded by a state agency for economic
development related purposes if a single business receives $200,000 or more of the grant
proceeds; (2) a loan or the guaranty or purchase of a loan made by a state agency for
economic development related purposes if a single business receives $500,000 or more of
the loan proceeds; or (3) a reduction, credit, or abatement of a tax assessed under chapter
297A where the tax reduction, credit, or abatement applies to a geographic area smaller
than the entire state and was granted for economic development related purposes. Financial
assistance does not include payments by the state of aids and credits under chapter 273 or
477A to a political subdivision.

(d) "Project site" means the location where improvements are made that are financed in
whole or in part by the financial assistance; or the location of employees that receive financial
assistance in the form of employment and training services as defined in section 116L.19,
subdivision 4, or customized training from a technical college.

(e) "State agency" means any agency defined under section 16B.01, subdivision 2,
Enterprise Minnesota, Inc., and the Iron Range Resources and Rehabilitation Board.

Sec. 4.

Minnesota Statutes 2022, section 116J.871, subdivision 2, is amended to read:

Subd. 2.

Prevailing wage required.

new text begin (a) new text end A state agency may provide financial assistance
to a person only if the person receiving or benefiting from the financial assistance certifies
to the commissioner of labor and industry that laborers and mechanics at the project site
during construction, installation, remodeling, and repairs for which the financial assistance
was provided will be paid the prevailing wage rate as defined in section 177.42, subdivision
6 new text begin , and be subject to the requirements and enforcement provisions of sections 177.27, 177.30,
177.32, 177.41 to 177.435, and 177.45 new text end .

new text begin (b) For the purposes of a person subject to paragraph (a) who is required to comply with
section 177.30, paragraph (a), clauses (6) and (7), the state agency awarding the financial
assistance is considered the contracting authority and the project is considered a public
works project. The person receiving or benefiting from the financial assistance shall notify
all employers on the project of the record keeping and reporting requirements of section
177.30, paragraph (a), clauses (6) and (7). Each employer shall submit the required
information to the contracting authority.
new text end

Sec. 5.

new text begin [116J.8746] SMALL BUSINESS PARTNERSHIP PROGRAM.
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) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Eligible business" means an entity that:
new text end

new text begin (1) is a business, commercial cooperative, employee-owned business, or commercial
land trust; and
new text end

new text begin (2) is either:
new text end

new text begin (i) located in greater Minnesota;
new text end

new text begin (ii) in the field of high technology; or
new text end

new text begin (iii) at least 51 percent owned by people who are either:
new text end

new text begin (A) Black, indigenous, or people of color;
new text end

new text begin (B) women;
new text end

new text begin (C) immigrants;
new text end

new text begin (D) veterans;
new text end

new text begin (E) people with disabilities;
new text end

new text begin (F) low-income; or
new text end

new text begin (G) LGBTQ+.
new text end

new text begin (d) "Program" means the small business partnership program established in this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner of employment and economic development
shall establish a small business partnership program to make statewide grants to local and
regional community-based nonprofit organizations to support the start-up, growth, and
success of eligible businesses through the delivery of high-quality free or low-cost
professional business development and technical assistance services.
new text end

new text begin Subd. 3. new text end

new text begin Grants to nonprofits. new text end

new text begin (a) Nonprofit organizations shall apply for grants using
a competitive process established by the commissioner.
new text end

new text begin (b) All grants shall be made in the first year of the biennium and shall be for two years.
new text end

new text begin (c) Up to ten percent of the grant amount may be used by the nonprofit for administrative
expenses.
new text end

new text begin (d) Preference shall be given to applications from nonprofits that can demonstrate a
record of successful outcomes serving historically underserved communities or increasing
the upward economic mobility of clients.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner may use up to five percent of program
funds for administering and monitoring the program.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) Grant recipients shall report to the commissioner each year they
receive grant funds. This report shall detail the use of grant funds and shall include data on
the number of individuals served and other measures of program impact, along with any
other information requested by the commissioner.
new text end

new text begin (b) By January 15, 2025, and by January 15 each odd-numbered year thereafter, the
commissioner shall submit a report to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over business
development that details the use of program funds and the program's impact. This report is
in addition to the reporting required under section 3.195.
new text end

Sec. 6.

Minnesota Statutes 2022, section 116J.8748, subdivision 3, is amended to read:

Subd. 3.

Minnesota job creation fund business designation; requirements.

(a) To
receive designation as a Minnesota job creation fund business, a business must satisfy all
of the following conditions:

(1) the business is or will be engaged in, within Minnesota, one of the following as its
primary business activity:

(i) manufacturing;

(ii) warehousing;

(iii) distribution;

(iv) information technology;

(v) finance;

(vi) insurance; or

(vii) professional or technical services;

(2) the business must not be primarily engaged in lobbying; gambling; entertainment;
professional sports; political consulting; leisure; hospitality; or professional services provided
by attorneys, accountants, business consultants, physicians, or health care consultants, or
primarily engaged in making retail sales to purchasers who are physically present at the
business's location;

(3) the business must enter into a binding construction and job creation business subsidy
agreement with the commissioner to expend directly, or ensure expenditure by or in
partnership with a third party constructing or managing the project, at least $500,000 in
capital investment in a capital investment project that includes a new, expanded, or remodeled
facility within one year following designation as a Minnesota job creation fund business or
$250,000 if the project is located outside the metropolitan area as defined in section 200.02,
subdivision 24, or if 51 percent of the business is cumulatively owned by minorities, veterans,
women, or persons with a disability; and:

(i) create at least ten new full-time employee positions within two years of the benefit
date following the designation as a Minnesota job creation fund business or five new full-time
employee positions within two years of the benefit date if the project is located outside the
metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
is cumulatively owned by minorities, veterans, women, or persons with a disability; or

(ii) expend at least $25,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least deleted text begin 200 deleted text end new text begin 100 new text end employees for
projects located in the metropolitan area as defined in section 200.02, subdivision 24, deleted text begin and
75 deleted text end new text begin or expend at least $10,000,000, which may include the installation and purchase of
machinery and equipment, in capital investment and retain at least 50 new text end employees for projects
located outside the metropolitan area;

(4) positions or employees moved or relocated from another Minnesota location of the
Minnesota job creation fund business must not be included in any calculation or determination
of job creation or new positions under this paragraph; and

(5) a Minnesota job creation fund business must not terminate, lay off, or reduce the
working hours of an employee for the purpose of hiring an individual to satisfy job creation
goals under this subdivision.

(b) Prior to approving the proposed designation of a business under this subdivision, the
commissioner shall consider the following:

(1) the economic outlook of the industry in which the business engages;

(2) the projected sales of the business that will be generated from outside the state of
Minnesota;

(3) how the business will build on existing regional, national, and international strengths
to diversify the state's economy;

(4) whether the business activity would occur without financial assistance;

(5) whether the business is unable to expand at an existing Minnesota operation due to
facility or land limitations;

(6) whether the business has viable location options outside Minnesota;

(7) the effect of financial assistance on industry competitors in Minnesota;

(8) financial contributions to the project made by local governments; and

(9) any other criteria the commissioner deems necessary.

(c) Upon receiving notification of local approval under subdivision 2, the commissioner
shall review the determination by the local government and consider the conditions listed
in paragraphs (a) and (b) to determine whether it is in the best interests of the state and local
area to designate a business as a Minnesota job creation fund business.

(d) If the commissioner designates a business as a Minnesota job creation fund business,
the business subsidy agreement shall include the performance outcome commitments and
the expected financial value of any Minnesota job creation fund benefits.

(e) The commissioner may amend an agreement once, upon request of a local government
on behalf of a business, only if the performance is expected to exceed thresholds stated in
the original agreement.

(f) A business may apply to be designated as a Minnesota job creation fund business at
the same location more than once only if all goals under a previous Minnesota job creation
fund agreement have been met and the agreement is completed.

Sec. 7.

Minnesota Statutes 2022, section 116J.8748, subdivision 4, is amended to read:

Subd. 4.

Certification; benefits.

(a) The commissioner may certify a Minnesota job
creation fund business as eligible to receive a specific value of benefit under paragraphs (b)
and (c) when the business has achieved its job creation and capital investment goals noted
in its agreement under subdivision 3.

(b) A qualified Minnesota job creation fund business may be certified eligible for the
benefits in this paragraph for up to five years for projects located in the metropolitan area
as defined in section 200.02, subdivision 24, and seven years for projects located outside
the metropolitan area, as determined by the commissioner when considering the best interests
of the state and local area. Notwithstanding section 16B.98, subdivision 5, paragraph (a),
clause (3), or 16B.98, subdivision 5, paragraph (b), grant agreements for projects located
outside the metropolitan area may be for up to seven years in length. The eligibility for the
following benefits begins the date the commissioner certifies the business as a qualified
Minnesota job creation fund business under this subdivision:

(1) up to five percent rebate for projects located in the metropolitan area as defined in
section 200.02, subdivision 24, and 7.5 percent for projects located outside the metropolitan
area, on capital investment on qualifying purchases as provided in subdivision 5 with the
total rebate for a project not to exceed $500,000;

(2) an award of up to $500,000 based on full-time job creation and wages paid as provided
in subdivision 6 with the total award not to exceed $500,000;

(3) up to $1,000,000 in capital investment rebates and $1,000,000 in job creation awards
are allowable for projects that have at least $25,000,000 in capital investment and deleted text begin 200 deleted text end new text begin 100 new text end
new employees in the metropolitan area as defined in section 200.02, subdivision 24, and
deleted text begin 75 deleted text end new text begin 50 new text end new employees for projects located outside the metropolitan area;

(4) up to $1,000,000 in capital investment rebates new text begin and up to $1,000,000 in job creation
awards new text end are allowable for projects that have at least $25,000,000 in capital investment new text begin , which
may include the installation and purchase of machinery and equipment, new text end and deleted text begin 200 deleted text end new text begin 100 new text end retained
employees for projects located in the metropolitan area as defined in section 200.02,
subdivision 24, deleted text begin and 75 deleted text end new text begin or at least $10,000,000 in capital investment, which may include the
installation and purchase of machinery and equipment, and 50 retained new text end employees for
projects located outside the metropolitan area; and

(5) for clauses (3) and (4) only, the capital investment expenditure requirements may
include the installation and purchases of machinery and equipment. These expenditures are
not eligible for the capital investment rebate provided under subdivision 5.

(c) The job creation award may be provided in multiple years as long as the qualified
Minnesota job creation fund business continues to meet the job creation goals provided for
in its agreement under subdivision 3 and the total award does not exceed $500,000 except
as provided under paragraph (b), clauses (3) and (4). new text begin Under paragraph (b) clause (4), a job
creation award of $2,000 per retained job may be provided one time if the qualified Minnesota
job creation fund business meets the minimum capital investment and retained employee
requirement as provided in paragraph (b), clause (4), for at least two years.
new text end

(d) No rebates or award may be provided until the Minnesota job creation fund business
or a third party constructing or managing the project has at least $500,000 in capital
investment in the project and at least ten full-time jobs have been created and maintained
for at least one year or the retained employees, as provided in paragraph (b), clause (4),
remain for at least one year. The agreement may require additional performance outcomes
that need to be achieved before rebates and awards are provided. If fewer retained jobs are
maintained, but still above the minimum under this subdivision, the capital investment
award shall be reduced on a proportionate basis.

(e) The forms needed to be submitted to document performance by the Minnesota job
creation fund business must be in the form and be made under the procedures specified by
the commissioner. The forms shall include documentation and certification by the business
that it is in compliance with the business subsidy agreement, sections 116J.871 and 116L.66,
and other provisions as specified by the commissioner.

(f) Minnesota job creation fund businesses must pay each new full-time employee added
pursuant to the agreement total compensation, including benefits not mandated by law, that
on an annualized basis is equal to at least 110 percent of the federal poverty level for a
family of four.

(g) A Minnesota job creation fund business must demonstrate reasonable progress on
capital investment expenditures within six months following designation as a Minnesota
job creation fund business to ensure that the capital investment goal in the agreement under
subdivision 1 will be met. Businesses not making reasonable progress will not be eligible
for benefits under the submitted application and will need to work with the local government
unit to resubmit a new application and request to be a Minnesota job creation fund business.
Notwithstanding the goals noted in its agreement under subdivision 1, this action shall not
be considered a default of the business subsidy agreement.

Sec. 8.

Minnesota Statutes 2022, section 116J.8748, subdivision 6, is amended to read:

Subd. 6.

Job creation award.

(a) A qualified Minnesota job creation fund business is
eligible for an annual award for each new job created and maintained new text begin under subdivision 4,
paragraph (b), clauses (2) and (3), new text end by the business using the following schedule: $1,000 for
each job position paying annual wages at least $26,000 but less than $35,000; $2,000 for
each job position paying at least $35,000 but less than $45,000; deleted text begin and deleted text end $3,000 for each job
position paying at least $45,000 new text begin but less than $55,000; and $4,000 for each job position
paying at least $55,000 new text end ; and as noted in the goals under the agreement provided under
subdivision 1. These awards are increased by $1,000 if the business is located outside the
metropolitan area as defined in section 200.02, subdivision 24, or if 51 percent of the business
is cumulatively owned by minorities, veterans, women, or persons with a disability.

new text begin (b) A qualified Minnesota job creation fund business is eligible for a onetime $2,000
award for each job retained and maintained under subdivision 4, paragraph (b), clause (4),
provided that each retained job pays total compensation, including benefits not mandated
by law, that on an annualized basis is equal to at least 150 percent of the federal poverty
level for a family of four.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end The job creation award schedule must be adjusted annually using the percentage
increase in the federal poverty level for a family of four.

deleted text begin (c) deleted text end new text begin (d) new text end Minnesota job creation fund businesses seeking an award credit provided under
subdivision 4 must submit forms and applications to the Department of Employment and
Economic Development as prescribed by the commissioner.

Sec. 9.

Minnesota Statutes 2022, section 116J.8748, is amended by adding a subdivision
to read:

new text begin Subd. 6a. new text end

new text begin Transfer. new text end

new text begin The commissioner may transfer up to $2,000,000 of a fiscal year
appropriation between the Minnesota job creation fund program and the redevelopment
grant program to meet business demand.
new text end

Sec. 10.

new text begin [116J.8751] LAUNCH MINNESOTA.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Launch Minnesota is established within the Business
and Community Development Division of the Department of Employment and Economic
Development to encourage and support the development of new private sector technologies
and support the science and technology policies under Minnesota Statutes, section 3.222.
Launch Minnesota must provide entrepreneurs and emerging technology-based companies
business development assistance and financial assistance to spur growth.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Advisory board" means the board established under subdivision 10.
new text end

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

new text begin (d) "Department" means the Department of Employment and Economic Development.
new text end

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

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

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

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

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

new text begin (j) "Research and development" means any activity that is:
new text end

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

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

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

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

new text begin (1) planned principal operations have not commenced; or
new text end

new text begin (2) planned principal operations have commenced, but have raised at least $1,000,000
in equity financing.
new text end

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

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

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

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin The commissioner, by and through Launch Minnesota, shall:
new text end

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

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

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

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

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

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

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

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

new text begin (9) perform other duties at the commissioner's discretion.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The executive director shall:
new text end

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Application process. new text end

new text begin (a) The commissioner shall establish the application form
and procedures for grants.
new text end

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

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

new text begin (1) a business or entrepreneur located in greater Minnesota; or
new text end

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

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

new text begin (1) businesses or entrepreneurs located in greater Minnesota; or
new text end

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

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

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

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

new text begin Subd. 6. new text end

new text begin Innovation grants. new text end

new text begin (a) The commissioner shall distribute innovation grants
under this subdivision.
new text end

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

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

new text begin Subd. 7. new text end

new text begin Entrepreneur education grants. new text end

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

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

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

new text begin (d) Grantees may use the grant funds to deliver the following services:
new text end

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

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

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

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

new text begin Subd. 8. new text end

new text begin Report. new text end

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

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

new text begin Subd. 9. new text end

new text begin Advisory board. new text end

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

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

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

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

Sec. 11.

Minnesota Statutes 2022, section 116J.9924, subdivision 4, is amended to read:

Subd. 4.

Grant amount; project phasing.

(a) The commissioner shall award grants in
an amount not to exceed deleted text begin $1,500,000 deleted text end new text begin $3,000,000 new text end per grant.

(b) A grant awarded under this section must be no less than the amount required to
complete one or more phases of the project, less any nonstate funds already committed for
such activities.

Sec. 12.

new text begin [116J.9925] COMMUNITY WEALTH-BUILDING GRANT PROGRAM.
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) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Community business" means a cooperative, an employee-owned business, or a
commercial land trust that is at least 51 percent owned by individuals from targeted groups.
new text end

new text begin (d) "Partner organization" means a community development financial institution or
nonprofit corporation.
new text end

new text begin (e) "Program" means the community wealth-building grant program created under this
section.
new text end

new text begin (f) "Targeted groups" means persons who are Black, Indigenous, People of Color,
immigrants, low-income, women, veterans, or persons with disabilities.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a community wealth-building
grant program to award grants to partner organizations to fund low-interest loans to
community businesses. The program must encourage tax-base revitalization, private
investment, job creation for targeted groups, creation and strengthening of business
enterprises, assistance to displaced businesses, and promotion of economic development in
low-income areas.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall award grants to
partner organizations through a competitive grant process where applicants apply using a
form designed by the commissioner. In evaluating applications, the commissioner shall
consider whether the applicant:
new text end

new text begin (1) has a board of directors that includes members experienced in business and community
development, operating community businesses, addressing racial income disparities, and
creating jobs for targeted groups;
new text end

new text begin (2) has the technical skills to analyze projects;
new text end

new text begin (3) is familiar with other available public and private funding sources and economic
development programs;
new text end

new text begin (4) can initiate and implement economic development projects;
new text end

new text begin (5) can establish a program and administer funds;
new text end

new text begin (6) can work with job referral networks assisting targeted groups; and
new text end

new text begin (7) has established relationships with communities of targeted groups.
new text end

new text begin (b) The commissioner shall ensure that loans through the program will fund community
businesses statewide and shall make reasonable attempts to balance the amount of funding
available to community businesses inside and outside of the metropolitan area as defined
under section 473.121, subdivision 2.
new text end

new text begin (c) Partner organizations that receive grants under this subdivision shall use up to ten
percent of their award to provide specialized technical and legal assistance, either directly
or through a partnership with organizations with expertise in shared ownership structures,
to community businesses and businesses in the process of transitioning to community
ownership.
new text end

new text begin (d) Grants under this subdivision are available for five years. The commissioner shall
review existing grant agreements every five years and may renew or terminate the agreement
based on that review and consideration of the criteria under paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Loans to community businesses. new text end

new text begin (a) A partner organization that receives a
grant under subdivision 3 shall establish a plan for making low-interest loans to community
businesses. The plan requires approval by the commissioner.
new text end

new text begin (b) Under the plan:
new text end

new text begin (1) the state contribution to each loan shall be no less than $50,000 and no more than
$2,500,000;
new text end

new text begin (2) loans shall be made for projects that are unlikely to be undertaken unless a loan is
received under the program;
new text end

new text begin (3) priority shall be given to loans to businesses in the lowest income areas;
new text end

new text begin (4) the interest rate on a loan shall not be higher than the Wall Street Journal prime rate;
new text end

new text begin (5) 50 percent of all repayments of principal on a loan under the program shall be repaid
to the community wealth-building account created under subdivision 5. The partner
organization may retain the remainder of loan repayments to service loans and provide
further technical assistance;
new text end

new text begin (6) the partner organization may charge a loan origination fee of no more than one
percent of the loan value and may retain that origination fee; and
new text end

new text begin (7) a partner organization may not make a loan to a project in which it has an ownership
interest.
new text end

new text begin Subd. 5. new text end

new text begin Community wealth-building account. new text end

new text begin A community wealth-building account
is created in the special revenue fund in the state treasury. Money in the account is
appropriated to the commissioner for grants under this section.
new text end

new text begin Subd. 6. new text end

new text begin Reports. new text end

new text begin (a) Grant recipients shall submit an annual report to the commissioner
by January 31 of each year they participate in the program. The report shall include:
new text end

new text begin (1) an account of all loans made through the program the preceding calendar year and
the impact of those loans on community businesses and job creation for targeted groups;
new text end

new text begin (2) information on the source and amount of money collected and distributed under the
program, its assets and liabilities, and an explanation of administrative expenses; and
new text end

new text begin (3) an independent audit of grant funds performed in accordance with generally accepted
accounting practices and auditing standards.
new text end

new text begin (b) By February 15 of each year beginning in 2024, the commissioner shall submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over workforce and economic development on program outcomes, including
copies of all reports received under paragraph (a).
new text end

Sec. 13.

new text begin [116J.9926] EMERGING DEVELOPER FUND PROGRAM.
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) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Disadvantaged community" means a community where the median household
income is less than 80 percent of the area median income.
new text end

new text begin (d) "Eligible project" means a project that is based in Minnesota and meets one or more
of the following criteria:
new text end

new text begin (1) it will stimulate community stabilization or revitalization;
new text end

new text begin (2) it will be located within a census tract identified as a disadvantaged community or
low-income community;
new text end

new text begin (3) it will directly benefit residents of a low-income household;
new text end

new text begin (4) it will increase the supply and improve the condition of affordable housing and
homeownership;
new text end

new text begin (5) it will support the growth needs of new and existing community-based enterprises
that promote economic stability or improve the supply or quality of job opportunities; or
new text end

new text begin (6) it will promote wealth creation, including by being a project in a neighborhood
traditionally not served by real estate developers.
new text end

new text begin (e) "Emerging developer" means a developer who:
new text end

new text begin (1) has limited access to loans from traditional financial institutions; or
new text end

new text begin (2) is a new or smaller developer who has engaged in educational training in real estate
development; and
new text end

new text begin (3) is either a:
new text end

new text begin (i) minority as defined in section 116M.14, subdivision 6;
new text end

new text begin (ii) woman;
new text end

new text begin (iii) person with a disability, as defined in section 116M.14, subdivision 9; or
new text end

new text begin (iv) low-income person.
new text end

new text begin (f) "Low-income person" means a person who:
new text end

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

new text begin (2) has a family income that does not exceed 60 percent of the area median income as
determined by the United States Department of Housing and Urban Development.
new text end

new text begin (g) "Partner organization" means a community development financial institution or a
similarly qualified nonprofit corporation, as determined by the commissioner.
new text end

new text begin (h) "Program" means the emerging developer fund program created under this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish an emerging developer fund
program to make grants to partner organizations to make grants and loans to emerging
developers for eligible projects to transform neighborhoods statewide and promote economic
development and the creation and retention of jobs in Minnesota. The program must also
reduce racial and socioeconomic disparities by growing the financial capacity of emerging
developers.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall design a
competitive process to award grants to partner organizations to make grants and loans to
emerging developers under subdivision 4.
new text end

new text begin (b) A partner organization may use up to ten percent of grant funds for the administrative
costs of the program.
new text end

new text begin Subd. 4. new text end

new text begin Grants and loans to emerging developers. new text end

new text begin (a) Through the program, partner
organizations shall offer emerging developers predevelopment grants and predevelopment,
construction, and bridge loans for eligible projects according to a plan submitted to and
approved by the commissioner.
new text end

new text begin (b) Predevelopment grants must be for no more than $100,000. All loans must be for no
more than $1,000,000.
new text end

new text begin (c) Loans must be for a term set by the partner organization and approved by the
commissioner of no less than six months and no more than eight years, depending on the
use of loan proceeds.
new text end

new text begin (d) Loans must be for zero interest or an interest rate of no more than the Wall Street
Journal prime rate, as determined by the partner organization and approved by the
commissioner based on the individual project risk and type of loan sought.
new text end

new text begin (e) Loans must have flexible collateral requirements compared to traditional loans, but
may require a personal guaranty from the emerging developer and may be largely unsecured
when the appraised value of the real estate is low.
new text end

new text begin (f) Loans must have no prepayment penalties and are expected to be repaid from
permanent financing or a conventional loan, once that is secured.
new text end

new text begin (g) Loans must have the ability to bridge many types of receivables, such as tax credits,
grants, developer fees, and other forms of long-term financing.
new text end

new text begin (h) At the partner organization's request and the commissioner's discretion, an emerging
developer may be required to work with an experienced developer or professional services
consultant who can offer expertise and advice throughout the development of the project.
new text end

new text begin (i) All loan repayments must be paid into the emerging developer fund account created
in this section to fund additional loans.
new text end

new text begin Subd. 5. new text end

new text begin Eligible expenses. new text end

new text begin (a) The following are eligible expenses for a predevelopment
grant or loan under the program:
new text end

new text begin (1) earnest money or purchase deposit;
new text end

new text begin (2) building inspection fees and environmental reviews;
new text end

new text begin (3) appraisal and surveying;
new text end

new text begin (4) design and tax credit application fees;
new text end

new text begin (5) title and recording fees;
new text end

new text begin (6) site preparation, demolition, and stabilization;
new text end

new text begin (7) interim maintenance and project overhead;
new text end

new text begin (8) property taxes and insurance;
new text end

new text begin (9) construction bonds or letters of credit;
new text end

new text begin (10) market and feasibility studies; and
new text end

new text begin (11) professional fees.
new text end

new text begin (b) The following are eligible expenses for a construction or bridge loan under the
program:
new text end

new text begin (1) land or building acquisition;
new text end

new text begin (2) construction-related expenses;
new text end

new text begin (3) developer and contractor fees;
new text end

new text begin (4) site preparation, environmental cleanup, and demolition;
new text end

new text begin (5) financing fees, including title and recording;
new text end

new text begin (6) professional fees;
new text end

new text begin (7) carrying costs;
new text end

new text begin (8) construction period interest;
new text end

new text begin (9) project reserves; and
new text end

new text begin (10) leasehold improvements and equipment purchase.
new text end

new text begin Subd. 6. new text end

new text begin Emerging developer fund account. new text end

new text begin An emerging developer fund account is
created in the special revenue fund in the state treasury. Money in the account is appropriated
to the commissioner for grants to partner organizations to make loans under this section.
new text end

new text begin Subd. 7. new text end

new text begin Reports to the legislature. new text end

new text begin (a) By January 15 of each year, beginning in 2025,
each partner organization shall submit a report to the commissioner on the use of program
funds and program outcomes.
new text end

new text begin (b) By February 15 of each year, beginning in 2025, the commissioner shall submit a
report to the chairs of the house of representatives and senate committees with jurisdiction
over economic development on the use of program funds and program outcomes.
new text end

Sec. 14. new text begin EMPOWERING ENTERPRISE PROGRAM.
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) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (c) "Eligible organization" means:
new text end

new text begin (1) a federally certified community development financial institution;
new text end

new text begin (2) a nonprofit organization; or
new text end

new text begin (3) a city.
new text end

new text begin (d) "Entity" includes any registered business or nonprofit organization. This includes
businesses, cooperatives, utilities, industrial, commercial, retail, and nonprofit organizations.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a program to make grants to
eligible organizations to develop and implement local economic relief programs designed
with the primary goal of assisting communities adversely affected by civil unrest during
the peacetime emergency declared in governor's Executive Order No. 20-64 by preserving
incumbent entities and encouraging new entities to locate in those areas. To this end, local
programs should include outreach to cultural communities and support for microenterprises.
new text end

new text begin Subd. 3. new text end

new text begin Available relief. new text end

new text begin (a) The local programs established by eligible organizations
under this section may include grants or loans as provided in this section, as well as subgrants
to local nonprofits to further the goals of the program. Prior to awarding a grant to an eligible
organization for a local program under this section:
new text end

new text begin (1) the eligible organization must develop criteria, procedures, and requirements for:
new text end

new text begin (i) determining eligibility for assistance;
new text end

new text begin (ii) the duration, terms, underwriting and security requirements, and repayment
requirements for loans;
new text end

new text begin (iii) evaluating applications for assistance;
new text end

new text begin (iv) awarding assistance; and
new text end

new text begin (v) administering the grant and loan programs authorized under this section, including
any subgrants to local nonprofits;
new text end

new text begin (2) the eligible organization must submit its criteria, procedures, and requirements
developed pursuant to clause (1) to the commissioner of employment and economic
development for review; and
new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements as
developed pursuant to clause (1) to be used by an eligible organization in determining
eligibility for assistance, evaluating, awarding, and administering a grant and loan program.
new text end

new text begin (b) Relief under this section includes grants to entities. These grants must not exceed
$500,000 per entity, must specify that an entity receiving a grant must remain in the local
community a minimum of three years after the date of the grant, and must require submission
of a plan for continued operation. Grants may be awarded to applicants only when an eligible
organization determines that a loan is not appropriate to address the needs of the applicant.
new text end

new text begin (c) Relief under this section includes loans to entities, with or without interest, and
deferred or forgivable loans. The maximum loan amount under this subdivision is $500,000
per entity. The lending criteria adopted by an eligible organization for loans under this
subdivision must:
new text end

new text begin (1) specify that an entity receiving a deferred or forgivable loan must remain in the local
community a minimum of three years after the date of the loan. The maximum loan deferral
period must not exceed three years from the date the loan is approved; and
new text end

new text begin (2) require submission of a plan for continued operation. The plan must document the
probable success of the applicant's plan and probable success in repaying the loan according
to the terms established for the loan program.
new text end

new text begin (d) All loan repayment funds under this subdivision must be paid to the commissioner
of employment and economic development for deposit in the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Monitoring and reporting. new text end

new text begin (a) Participating eligible organizations must
establish performance measures that include but are not limited to the following components:
new text end

new text begin (1) the number of loans approved and the amounts and terms of the loans;
new text end

new text begin (2) the number of grants awarded, award amounts, and the reason that a grant award
was made in lieu of a loan;
new text end

new text begin (3) the loan default rate;
new text end

new text begin (4) the number of jobs created or retained as a result of the assistance, including
information on the wages and benefit levels, the status of the jobs as full-time or part-time,
and the status of the jobs as temporary or permanent; and
new text end

new text begin (5) the amount of business activity and changes in gross revenues of the grant or loan
recipient as a result of the assistance.
new text end

new text begin (b) The commissioner of employment and economic development must monitor the
participating eligible organizations' compliance with this section and the performance
measures developed under paragraph (a).
new text end

new text begin (c) Participating eligible organizations must comply with all requests made by the
commissioner under this section and are responsible for the reporting and compliance of
any subgrantees.
new text end

new text begin (d) By December 15 of each year the program is in existence, participating eligible
organizations must report their performance measures to the commissioner. By January 15
of each year the program is in existence, after the first, the commissioner must submit a
report of these performance measures to the chairs and ranking minority members of the
committees of the house of representatives and the senate having jurisdiction over economic
development that details the use of funds under this section.
new text end

new text begin Subd. 5. new text end

new text begin Exemptions. new text end

new text begin (a) Minnesota Statutes, sections 116J.993 to 116J.995, do not
apply to assistance under this section. Entities in receipt of assistance under this section
must provide for job creation and retention goals and wage and benefit goals.
new text end

new text begin (b) Minnesota Statutes, sections 16A.15, 16B.97, 16B.98, 16B.991, 16C.05, and 16C.053,
do not apply to assistance under this section.
new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic
development may use up to seven percent of the appropriation made for this section for
administrative expenses of the department or for assisting participating eligible organizations
with their administrative expenses.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
expires the day after the last loan is repaid or forgiven as provided under this section.
new text end

Sec. 15. new text begin CANADIAN BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

new text begin The Northland Foundation must develop
and implement a Canadian border counties economic relief program to assist businesses
adversely affected by the 2021 closure of the Boundary Waters Canoe Area Wilderness or
the closures of the Canadian border since 2020.
new text end

new text begin Subd. 2. new text end

new text begin Available relief. new text end

new text begin (a) The economic relief program established under this section
may include grants provided in this section to the extent that funds are available. Before
awarding a grant to the Northland Foundation for the relief program under this section:
new text end

new text begin (1) the Northland Foundation must develop criteria, procedures, and requirements for:
new text end

new text begin (i) determining eligibility for assistance;
new text end

new text begin (ii) evaluating applications for assistance;
new text end

new text begin (iii) awarding assistance; and
new text end

new text begin (iv) administering the grant program authorized under this section;
new text end

new text begin (2) the Northland Foundation must submit its criteria, procedures, and requirements
developed under clause (1) to the commissioner of employment and economic development
for review; and
new text end

new text begin (3) the commissioner must approve the criteria, procedures, and requirements submitted
under clause (2).
new text end

new text begin (b) The maximum grant to a business under this section is $50,000 per business.
new text end

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

new text begin To qualify for assistance under this section, a
business must:
new text end

new text begin (1) be located within a county that shares a border with Canada;
new text end

new text begin (2) document a reduction of at least ten percent in gross receipts in 2021 compared to
2019; and
new text end

new text begin (3) provide a written explanation for how the 2021 closure of the Boundary Waters
Canoe Area Wilderness or the closures of the Canadian border since 2020 resulted in the
reduction in gross receipts documented under clause (2).
new text end

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

new text begin (a) The Northland Foundation must establish performance
measures, including but not limited to the following components:
new text end

new text begin (1) the number of grants awarded and award amounts for each grant;
new text end

new text begin (2) the number of jobs created or retained as a result of the assistance, including
information on the wages and benefit levels, the status of the jobs as full time or part time,
and the status of the jobs as temporary or permanent;
new text end

new text begin (3) the amount of business activity and changes in gross revenues of the grant recipient
as a result of the assistance; and
new text end

new text begin (4) the new tax revenue generated as a result of the assistance.
new text end

new text begin (b) The commissioner of employment and economic development must monitor the
Northland Foundation's compliance with this section and the performance measures
developed under paragraph (a).
new text end

new text begin (c) The Northland Foundation must comply with all requests made by the commissioner
under this section.
new text end

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

new text begin Minnesota Statutes, sections 116J.993 to
116J.995, do not apply to assistance under this section. Businesses in receipt of assistance
under this section must provide for job creation and retention goals, and wage and benefit
goals.
new text end

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

new text begin The commissioner of employment and economic
development may use up to one percent of the appropriation made for this section for
administrative expenses of the department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023, and expires June 30, 2024.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 116J.9924, subdivision 6, new text end new text begin and new text end new text begin Laws 2019, First Special
Session chapter 7, article 2, section 8, as amended by Laws 2021, First Special Session
chapter 10, article 2, section 19, new text end new text begin is repealed.
new text end

ARTICLE 3

CAPITOL AREA

Section 1. new text begin CAPITOL AREA COMMUNITY VITALITY TASK FORCE;
APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Task force established; membership. new text end

new text begin (a) A Capitol Area Community
Vitality Task Force is established. The task force consists of the following members:
new text end

new text begin (1) the executive secretary of the Capitol Area Architectural and Planning Board;
new text end

new text begin (2) one member of the Capitol Area Architectural and Planning Board, appointed by the
board;
new text end

new text begin (3) two members of the house of representatives appointed by the speaker of the house,
of whom one must be a member of the majority caucus of the house, and one must be a
member of the minority caucus of the house;
new text end

new text begin (4) two members of the senate appointed by the majority leader of the senate, of whom
one must be a member of the majority caucus of the senate, and one must be a member of
the minority caucus of the senate;
new text end

new text begin (5) four members who are residents, businesspeople, or members of local organizations
in the Capitol Area, appointed by the mayor of St. Paul; and
new text end

new text begin (6) one member of the public appointed by the governor.
new text end

new text begin (b) The task force must elect a chair and other officers from among its members.
Appointments to the task force must be made no later than July 15, 2023. The executive
secretary of the Capitol Area Architectural and Planning Board must convene the first
meeting of the task force no later than August 15, 2023.
new text end

new text begin (c) As used in this section, "Capitol Area" includes that part of the city of St. Paul within
the boundaries described in Minnesota Statutes, section 15B.02.
new text end

new text begin Subd. 2. new text end

new text begin Terms; compensation. new text end

new text begin The terms and compensation of members of the task
force are governed by Minnesota Statutes, section 15.059, subdivision 6.
new text end

new text begin Subd. 3. new text end

new text begin Administrative support. new text end

new text begin The Capitol Area Architectural and Planning Board
must provide administrative support to assist the task force in its work.
new text end

new text begin Subd. 4. new text end

new text begin Duties; report. new text end

new text begin The task force must consider and develop recommendations
for the administration, program plan, and oversight of the Capitol Area community vitality
account established by this act. The task force must submit its recommendations to the
Capitol Area Architectural and Planning Board for approval. A report including the approved
recommendations must be submitted by the Capitol Area Architectural and Planning Board
to the chairs and ranking minority members of the committees of the legislature with
jurisdiction over the board no later than February 1, 2024.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin Notwithstanding Minnesota Statutes, section 15.059, subdivision
6, the task force expires upon submission of the report required by subdivision 4.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin $150,000 in fiscal year 2024 is appropriated from the general
fund to the Capitol Area Architectural and Planning Board to support the work of the task
force, including but not limited to payment of fees and other expenses necessary to retain
appropriate professional consultants, conduct public meetings, and facilitate other activities
as requested by the task force.
new text end

Sec. 2. new text begin CAPITOL AREA COMMUNITY VITALITY ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Account established; appropriation. new text end

new text begin (a) A Capitol Area community
vitality account is established in the special revenue fund. Money in the account is
appropriated to the commissioner of administration to improve the livability, economic
health, and safety of communities within the Capitol Area, provided that no funds may be
expended until a detailed program and oversight plan to govern their use, in accordance
with the spending recommendations of the Capitol Area Community Vitality Task Force
as approved by the Capitol Area Architectural and Planning Board, has been further approved
by law.
new text end

new text begin (b) As used in this section, "Capitol Area" includes that part of the city of St. Paul within
the boundaries described in Minnesota Statutes, section 15B.02.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin $5,000,000 in fiscal year 2024 is transferred from the general
fund to the Capitol Area community vitality account.
new text end

Sec. 3. new text begin APPROPRIATION; CAPITOL AREA TRANSPORTATION CORRIDORS.
new text end

new text begin (a) $5,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of administration for one or more grants to the city of St. Paul, Ramsey
County, or both, for road projects that improve the livability, economic health, and safety
of communities within the Capitol Area. Funded projects must be consistent with the
recommendations of the Capitol Area Community Vitality Task Force, as approved by the
Capitol Area Architectural and Planning Board. This is a onetime appropriation and is
available until June 30, 2027.
new text end

new text begin (b) Funds under this section are available:
new text end

new text begin (1) for planning, predesign, design, engineering, environmental analysis and mitigation,
land acquisition, and reconstruction of streets and highways; and
new text end

new text begin (2) only upon approval of the expenditure by the Capitol Area Architectural and Planning
Board.
new text end

new text begin (c) For purposes of this section, "Capitol Area" means that part of the city of St. Paul
within the boundaries described in Minnesota Statutes, section 15B.02.
new text end

APPENDIX

Repealed Minnesota Statutes: H3028-1

116J.9924 TARGETED COMMUNITY CAPITAL PROJECT GRANT PROGRAM.

Subd. 6.

Applicability of other laws.

The provisions of chapter 16A that apply to general fund appropriations for capital projects also apply to grants under this section. Money granted under this section is available until the project is completed or abandoned subject to section 16A.642.

Repealed Minnesota Session Laws: H3028-1

Laws 2019, First Special Session chapter 7, article 2, section 8, as amended by Laws 2021, First Special Session chapter 10, article 2, section 19

Sec. 19.

Laws 2019, First Special Session chapter 7, article 2, section 8, is amended to read:

Sec. 8. LAUNCH MINNESOTA.

Subdivision 1.

Establishment.

Launch Minnesota is established within the Business and Community Development Division of the Department of Employment and Economic Development to encourage and support the development of new private sector technologies and support the science and technology policies under Minnesota Statutes, section 3.222. Launch Minnesota must provide entrepreneurs and emerging technology-based companies business development assistance and financial assistance to spur growth.

Subd. 2.

Definitions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(1) planned principal operations have not commenced; or

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

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

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

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

Subd. 3.

Duties.

The commissioner, by and through Launch Minnesota, shall:

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

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

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

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

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

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

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

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

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

Subd. 4.

Administration.

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

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

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

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

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

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

Subd. 5.

Application process.

(a) The commissioner shall establish the application form and procedures for grants.

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

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

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

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

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

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

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

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

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

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

Subd. 6.

Innovation grants.

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

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

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

Subd. 7.

Entrepreneur education grants.

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

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

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

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

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

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

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

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

Subd. 8.

Report.

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

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

Subd. 9.

Advisory board.

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

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

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

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

Subd. 10.

Expiration.

This section expires January 1, 2026.