SF 3035

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/10/2023 02:23pm

A bill for an act
relating to state government; establishing a biennial budget for Department of
Employment and Economic Development, Public Utilities Commission, and
Explore Minnesota; modifying various provisions governing economic
development, unemployment insurance, and Explore Minnesota; requiring reports;
appropriating money; amending Minnesota Statutes 2022, sections 116J.5492,
subdivisions 8, 10; 116J.8748, subdivisions 3, 4, 6, by adding a subdivision;
116J.8749, subdivisions 1, 3, 5, 10; 116L.361, subdivision 7; 116L.362, subdivision
1; 116L.364, subdivision 3; 116L.56, subdivision 2; 116L.561, subdivision 5;
116L.562, subdivision 2; 116U.05; 116U.10; 116U.15; 116U.20; 116U.25;
116U.30; 116U.35; 126C.43, subdivision 2; 127A.45, subdivision 12; 268.085,
subdivisions 7, 8; proposing coding for new law in Minnesota Statutes, chapters
116J; 116L; 116U; 124D.

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 453,892,000 new text end

new text begin $ new text end

new text begin 254,886,000 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 402,429,000 new text end	new text begin 203,395,000 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 50,763,000 new text end	new text begin 50,791,000 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 304,474,000 new text end

new text begin 114,474,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 302,424,000 new text end	new text begin 112,424,000 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) $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 (c) $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. The base funding for this
program is $1,000,000 each year starting in
fiscal year 2026. Of this amount, $500,000
must be used to improve the agency's digital
navigation and information services for small
businesses and entrepreneurs.
new text end

new text begin (d) $5,000,000 each year is for Launch
Minnesota. Of this amount: (1) $2,750,000
each year is for innovation grants to eligible
Minnesota entrepreneurs or start-up businesses
to assist with their operating needs; (2)
$750,000 each year is for administration of
Launch Minnesota; (3) $750,000 each year is
for grantee activities at Launch Minnesota;
and (4) $750,000 each year is for the Higher
Education Technology Commercialization
Hub. The base beginning in fiscal year 2026
is $2,500,000.
new text end

new text begin (e) $40,000,000 in fiscal year 2024 is for the
Minnesota Expanding Opportunity Fund
Program under Minnesota Statutes, section
116J.8733. This appropriation is onetime and
is available until June 30, 2025.
new text end

new text begin (f) $150,000,000 in fiscal year 2024 is for the
Minnesota forward fund under Minnesota
Statutes, section 116J.8752. Money awarded
under this program is made retroactive for
applications and projects to February 1, 2023.
This appropriation is onetime and is available
until spent.
new text end

new text begin (g) $8,925,000 each year is for the small
business assistance partnerships program
under Minnesota Statutes, section 116J.682.
All grant awards shall be for two consecutive
years. Grants shall be awarded in the first year.
The department may use up to five percent of
the appropriation for administrative purposes.
The base in fiscal year 2026 and beyond is
$1,425,000.
new text end

new text begin (h) $5,000,000 each year is transferred from
the general fund to the community energy
transition account for grants under Minnesota
Statutes, section 116J.55. These transfers are
onetime.
new text end

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

new text begin (j) $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 (k) $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 (l) $139,000 each year is for the Center for
Rural Policy and Development.
new text end

new text begin (m) $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 (n) $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 (o) $6,500,000 each year is for the child care
economic development grant program. The
base in fiscal year 2026 and beyond is
$3,000,000.
new text end

new text begin (p) $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 (q) $3,500,000 each year is for a grant to the
Minnesota Initiative Foundations. This
appropriation is available until June 30, 2027.
In fiscal year 2026 and beyond, the base
amount is $1,000,000. 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 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 (r) $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. Notwithstanding
Minnesota Statutes, section 116J.8748, money
appropriated for the job creation fund may be
used for redevelopment under Minnesota
Statutes, sections 116J.575 and 116J.5761, at
the discretion of the commissioner.
new text end

new text begin (s) $12,370,000 the first year and $12,370,000
the second year are 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.
In fiscal year 2026 and beyond, the base
amount is $12,370,000. 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 (t) $2,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761. In
fiscal year 2026 and beyond, the base amount
is $2,246,000. This appropriation is available
until expended.
new text end

new text begin (u) $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 (v) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation in 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 (w) $12,000 each year is for a grant to the
Upper Minnesota Film Office.
new text end

new text begin (x) $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, 2025.
new text end

new text begin (y) $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 (z) $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 (aa) $42,295,000 each year is for the Main
Street Economic Revitalization Program under
Minnesota Statutes, section 116J.8749. Of
these amounts, up to $300,000 is for the
commissioner's administration and monitoring
of the program. These appropriations are
onetime and are available until June 30, 2027.
new text end

new text begin (bb) $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 (cc) $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 Subd. 3. new text end new text begin Employment and Training Programs new text end

new text begin 81,298,000 new text end

new text begin 81,298,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 39,796,000 new text end	new text begin 39,796,000 new text end
new text begin Workforce Development new text end	new text begin 41,502,000 new text end	new text begin 41,502,000 new text end

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

new text begin (b) $5,000,000 in fiscal year 2024 and
$5,000,000 in fiscal year 2025 are for
competitive grants to organizations providing
services to Minnesota's older workers. Grant
awards must be used to support older
individuals to re-enter the labor force through
workforce recruitment and development,
outreach, paid essential training and upskilling,
on-the-job training through community service
assignments, and assistance for smaller
organizations to increase capacity. Of this
amount, up to five percent is for administration
and monitoring of the program. These are
onetime appropriations.
new text end

new text begin (c) $15,000,000 each year from the general
fund and $15,000,000 each year from the
workforce development fund are for the
targeted population workforce grants under
Minnesota Statutes, section 116L.43. The
department may use up to ten percent of this
appropriation for administration, monitoring,
and oversight of the program. Of this amount:
new text end

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

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

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

new text begin The base funding for this program is
$5,000,000 from the general fund and
$5,000,000 from the workforce development
fund in fiscal years 2026 and 2027.
new text end

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

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

new text begin (f) Competitive Grants for Workforce
Development Organizations. Of the amounts
appropriated in paragraph (e), the
commissioner must make $10,000,000 each
year available through a competitive request
for proposal process. The grant awards must
be used to provide education and training in
the five industries identified in paragraph (e).
Education and training may include:
new text end

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

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

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

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

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

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

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

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

new text begin (g) Competitive Grants for Trade
Associations for Job Placement. Of the
amount appropriated in paragraph (e),
$3,250,000 each year must be awarded
through competitive grants made to trade
associations or chambers of commerce for job
placement services. Grant awards must be used
to encourage workforce training efforts to
ensure that efforts are aligned with employer
demands and that graduates are connected with
employers looking to hire. Trade associations
or chambers must partner with employers with
current or anticipated employment
opportunities and nonprofit workforce training
partners participating in this program. The
trade associations or chambers must work
closely with the industry sector training
providers in the five industries identified in
paragraph (e). Grant awards may be used for:
new text end

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

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

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

new text begin (h) Business Services Representatives. Of
the amount appropriated in paragraph (e),
$1,750,000 each year is to hire, train, and
deploy business services representatives in
local workforce development areas throughout
the state. Business services representatives
must work with an assigned local workforce
development area to address the hiring needs
of Minnesota's businesses by connecting job
seekers and program participants in the
CareerForce system. Business services
representatives serve in the classified service
of the state and operate as part of the agency's
Employment and Training Office. The
commissioner shall develop and implement
training materials and reporting and evaluation
procedures for the activities of the business
services representatives. The business services
representatives must:
new text end

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

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

new text begin (3) work with the local area board and its
partners to identify candidates for openings in
small and mid-size companies in the local
area.
new text end

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

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

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

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

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

new text begin (n) $2,093,000 each year is from the
workforce development fund for the
Minnesota Youthbuild program under
Minnesota Statutes, sections 116L.361 and
116L.336. The base funding for this program
is $1,000,000 per year from the workforce
development fund beginning in fiscal year
2026.
new text end

new text begin (o) $520,000 each year from the general fund
and $7,957,000 each year from the workforce
development fund are for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561. Beginning in fiscal
year 2026, the base funding for this program
is $0 from the general fund and $4,050,000
from the workforce development fund.
new text end

new text begin (p) $750,000 each year is to establish an Office
of New Americans.
new text end

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

new text begin 16,817,000 new text end

new text begin 7,811,000 new text end

new text begin Appropriations by Fund new text end
new text begin General Fund new text end	new text begin 16,736,000 new text end	new text begin 7,702,000 new text end
new text begin Workforce Development new text end	new text begin 81,000 new text end	new text begin 109,000 new text end

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

new text begin (b) $10,000,000 in fiscal year 2024 is for the
workforce digital transformation projects. This
appropriation is onetime and is available until
June 30, 2027.
new text end

new text begin Subd. 5. 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. The
base for this purpose in fiscal year 2024 and
beyond is $300,000.
new text end

new text begin (b) $180,000 each year is for the Invest
Minnesota marketing initiative in 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

new text begin Subd. 6. new text end new text begin Vocational Rehabilitation new text end

new text begin 38,636,000 new text end

new text begin 38,636,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 30,806,000 new text end	new text begin 30,806,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

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

new text begin (b) $8,995,000 each year from the general fund
and $6,830,000 each year from the workforce
development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $2,000,000 each year is for
maintaining prior rate increases to providers
of extended employment services for persons
with severe disabilities under Minnesota
Statutes, section 268A.15.
new text end

new text begin (c) $4,500,000 each year is for grants to
programs that provide employment support
services to persons with mental illness under
Minnesota Statutes, sections 268A.13 and
268A.14.
new text end

new text begin (d) $3,011,000 each year is for grants to
centers for independent living under
Minnesota Statutes, section 268A.11.
new text end

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

new text begin Subd. 7. new text end new text begin Services for the Blind new text end

new text begin 10,425,000 new text end

new text begin 10,425,000 new text end

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

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

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

new text begin $ new text end

new text begin 36,307,000 new text end

new text begin $ new text end

new text begin 21,169,000 new text end

new text begin (a) $500,000 the first year and $500,000 the
second 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 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 the first year and $5,900,000
the second year are for the development of
new initiatives for Explore Minnesota
Tourism. Of this amount, $3,000,000 the first
year and $3,000,000 the second year are for
competitive grants for large-scale sporting and
other major events; $1,100,000 the first year
and $1,100,000 the second year are for grants
to Minnesota's 11 Tribal Nations to promote
and support new tourism opportunities for
Tribal Nations; $1,000,000 the first year and
$1,000,000 the second year are to expand
diversity, equity, inclusion, and accessibility
through tourism marketing; $625,000 the first
year and $625,000 the second year are for the
tourism and hospitality industry and the
Governor's Opener events; $88,000 the first
year and $88,000 the second year are to
develop new resources and increase
engagement for the tourism industry; and
$87,000 the first year and $87,000 the second
year must be used to develop a long-term
sustainability plan for tourism.
new text end

new text begin (c) $12,000,000 the first year is for the
development of Explore Minnesota for
Business under section 116U.07 to market the
overall livability and economic opportunities
of Minnesota. This is a onetime appropriation.
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

Sec. 4. new text begin PUBLIC UTILITIES COMMISSION new text end

new text begin $ new text end

new text begin 9,836,000 new text end

new text begin $ new text end

new text begin 10,105,000 new text end

Sec. 5. new text begin DEPARTMENT OF EDUCATION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 200,000 new text end

new text begin Subdivision 1. new text end new text begin Amounts 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 Unemployment Insurance Aid Administration new text end

new text begin $200,000 in fiscal year 2025 is for
administration of unemployment insurance
aid under Minnesota Statutes, section
124D.995. The base for fiscal year 2026 and
thereafter is $175,000.
new text end

new text begin Subd. 3. new text end new text begin Unemployment Insurance Aid new text end

new text begin $161,755,000 in fiscal year 2026 and
thereafter are base amounts to the Department
of Education for unemployment insurance aid
under Minnesota Statutes, section 124D.995.
If the appropriation is insufficient, the
commissioner must proportionately reduce the
aid payment to each recipient pursuant to
Minnesota Statutes, section 124D.995,
paragraph (c).
new text end

Sec. 6. new text begin MINNESOTA STATE ACADEMIES new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 217,000 new text end

new text begin This amount is for unemployment insurance
costs.
new text end

Sec. 7. new text begin PERPICH CENTER FOR ARTS EDUCATION new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 66,000 new text end

new text begin This amount is for unemployment insurance
costs.
new text end

Sec. 8. new text begin MINNESOTA MANAGEMENT AND BUDGET new text end

new text begin $ new text end

new text begin 20,000 new text end

new text begin $ new text end

new text begin 3,000 new text end

new text begin This amount is for system programming and
notification costs associated with earned sick
and safe time.
new text end

ARTICLE 2

EXPLORE MINNESOTA

Section 1.

Minnesota Statutes 2022, section 116U.05, is amended to read:

116U.05 EXPLORE MINNESOTA deleted text begin TOURISM deleted text end .

Explore Minnesota deleted text begin Tourism deleted text end is deleted text begin created as deleted text end an office in the executive branch with a director
appointed by the governor. The director is under the supervision of the commissioner of
employment and economic development new text begin and oversees Explore Minnesota Tourism and
Explore Minnesota for Business divisions new text end . The director serves in the unclassified service
and must be qualified by experience and training in deleted text begin travel and tourism deleted text end new text begin related fields new text end .

Sec. 2.

new text begin [116U.06] EXPLORE MINNESOTA TOURISM.
new text end

new text begin Explore Minnesota Tourism is a division of Explore Minnesota and exists to support
Minnesota's economy through promotion and facilitation of travel to and within the state
of Minnesota.
new text end

Sec. 3.

new text begin [116U.07] EXPLORE MINNESOTA FOR BUSINESS.
new text end

new text begin Explore Minnesota for Business is a division of Explore Minnesota. Its mission is to
promote overall livability and workforce and economic opportunity in Minnesota. Explore
Minnesota for Business works in conjunction with the department of employment and
economic development to establish and meet statewide goals in these areas.
new text end

Sec. 4.

Minnesota Statutes 2022, section 116U.10, is amended to read:

116U.10 DEFINITIONS.

Subdivision 1.

Scope.

deleted text begin As used in deleted text end new text begin For the purposes of new text end this chapter, the terms deleted text begin defined deleted text end in
this section have the meanings given them.

Subd. 2.

Director.

"Director" means the new text begin executive new text end director of Explore Minnesota
deleted text begin Tourism deleted text end .

Subd. 3.

Office.

"Office" means Explore Minnesota deleted text begin Tourism deleted text end .

Sec. 5.

Minnesota Statutes 2022, section 116U.15, is amended to read:

116U.15 MISSION.

new text begin (a) new text end The mission of Explore Minnesota deleted text begin Tourism deleted text end is to promote and facilitate increased
travel to and within the state of Minnesota new text begin , promote overall livability, and promote workforce
and economic opportunity in Minnesota. To further the mission of Explore Minnesota, the
office is advised by councils focused on tourism and talent attraction and business marketing new text end .
Its goals are to:

(1) expand public and private partnerships through increased interagency efforts and
increased tourism new text begin and business new text end industry participation;

(2) increase productivity through enhanced flexibility and options; and

(3) use innovative fiscal and human resource practices to manage the state's resources
and operate the office as efficiently as possible.

new text begin (b) new text end The director shall report to the legislature on the performance of the office's operations
and the accomplishment of its goals in the office's biennial budget according to section
16A.10, subdivision 1.

Sec. 6.

Minnesota Statutes 2022, section 116U.20, is amended to read:

116U.20 ORGANIZATION.

The director shall:

(1) employ assistants and other officers, employees, and agents that the director considers
necessary to discharge the functions of the office; deleted text begin and
deleted text end

(2) define the duties of the officers, employees, and agents, and delegate to them any of
the director's powers, duties, and responsibilities, subject to the director's control and under
conditions prescribed by the director deleted text begin . deleted text end new text begin ;
new text end

new text begin (3) oversee the overall strategy and budgets of the Tourism and Business divisions; and
new text end

new text begin (4) chair or cochair and oversee the Tourism and Business councils.
new text end

Sec. 7.

new text begin [116U.24] EXPLORE MINNESOTA COUNCILS.
new text end

new text begin (a) The director shall be advised by the Explore Minnesota Tourism Council and Explore
Minnesota for Business Council each consisting of voting members appointed by the governor
for four-year terms. The director of Explore Minnesota serves as the chair or cochair of
each council. The director may assign employees of the office to participate in oversight of
council operations.
new text end

new text begin (b) Each council shall act to serve the broader interests of the council's divisions by
promoting activities and programs of the office that support, maintain, and expand the state's
domestic and international travel and trade markets, thereby generating increased visitor
expenditures, revenue, and employment.
new text end

new text begin (c) Filling of membership vacancies is as provided in section 15.059. The terms of
one-half of the members shall be coterminous with the governor and the terms of the
remaining one-half of the members shall end on the first Monday in January one year after
the terms of the other members. Members may serve until their successors are appointed
and qualify. Members are not compensated. A member may be reappointed.
new text end

new text begin (d) The council shall meet at least four times per year and at other times determined by
each council.
new text end

new text begin (e) If compliance with section 13D.02 is impractical, the Explore Minnesota councils
may conduct a meeting of their members by telephone or other electronic means so long as
the following conditions are met:
new text end

new text begin (1) all members of each council participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;
new text end

new text begin (2) members of the public present at the regular meeting location of the council can hear
clearly all discussion and testimony and all votes of members of each council and, if needed,
receive those services required by sections 15.44 and 15.441;
new text end

new text begin (3) at least one member of each council is physically present at the regular meeting
location; and
new text end

new text begin (4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.
new text end

new text begin (f) Each member of each council participating in a meeting by telephone or other
electronic means is considered present at the meeting for purposes of determining a quorum
and participating in all proceedings.
new text end

new text begin (g) If telephone or other electronic means is used to conduct a meeting, each council, to
the extent practicable, shall allow a person to monitor the meeting electronically from a
remote location. Each council may require the person making such a connection to pay for
documented marginal costs that each council incurs as a result of the additional connection.
new text end

new text begin (h) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the council shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and whether
a cost will be incurred under paragraph (f). The timing and method of providing notice is
governed by section 13D.04.
new text end

Sec. 8.

Minnesota Statutes 2022, section 116U.25, is amended to read:

116U.25 EXPLORE MINNESOTA TOURISM COUNCIL.

(a) The director shall be advised by the Explore Minnesota Tourism Council consisting
of up to deleted text begin 28 deleted text end new text begin 35 new text end voting members appointed by the governor for four-year terms, including:

(1) the director of Explore Minnesota Tourism who serves as the chair;

(2) deleted text begin eleven deleted text end new text begin fourteen new text end representatives of statewide associations representing bed and
breakfast establishments, golf, festivals and events, counties, convention and visitor bureaus,
lodging, resorts, trails, campgrounds, restaurants, deleted text begin and deleted text end new text begin craft beverage establishments, new text end chambers
of commerce new text begin , chambers of commerce for underrepresented communities, and Tribal nations new text end ;

(3) one representative from each of the tourism marketing regions of the state as
designated by the office;

(4) deleted text begin six deleted text end new text begin ten new text end representatives of the tourism business representing transportation, retail,
travel agencies, tour operators, travel media, deleted text begin and deleted text end convention facilities new text begin , arts and culture,
sports, outdoor recreation, and tourism business owners from underrepresented communities new text end ;

(5) one or more ex officio nonvoting members including at least one from the University
of Minnesota Tourism Center;

(6) four legislators, two from each house, one each from the two largest political party
caucuses in each house, appointed according to the rules of the respective houses; and

(7) other persons, if any, as designated from time to time by the governor.

(b) The council shall act to serve the broader interests of tourism in Minnesota by
promoting activities that support, maintain, and expand the state's domestic and international
travel market, thereby generating increased visitor expenditures, tax revenue, and
employment.

(c) Filling of membership vacancies is as provided in section 15.059. The terms of
one-half of the members shall be coterminous with the governor and the terms of the
remaining one-half of the members shall end on the first Monday in January one year after
the terms of the other members. Members may serve until their successors are appointed
and qualify. Members are not compensated. A member may be reappointed.

(d) The council shall meet at least four times per year and at other times determined by
the council.

(e) If compliance with section 13D.02 is impractical, the Explore Minnesota Tourism
Council may conduct a meeting of its members by telephone or other electronic means so
long as the following conditions are met:

(1) all members of the council participating in the meeting, wherever their physical
location, can hear one another and can hear all discussion and testimony;

(2) members of the public present at the regular meeting location of the council can hear
clearly all discussion and testimony and all votes of members of the council and, if needed,
receive those services required by sections 15.44 and 15.441;

(3) at least one member of the council is physically present at the regular meeting location;
and

(4) all votes are conducted by roll call, so each member's vote on each issue can be
identified and recorded.

(f) Each member of the council participating in a meeting by telephone or other electronic
means is considered present at the meeting for purposes of determining a quorum and
participating in all proceedings.

(g) If telephone or other electronic means is used to conduct a meeting, the council, to
the extent practical, shall allow a person to monitor the meeting electronically from a remote
location. The council may require the person making such a connection to pay for
documented marginal costs that the council incurs as a result of the additional connection.

(h) If telephone or other electronic means is used to conduct a regular, special, or
emergency meeting, the council shall provide notice of the regular meeting location, of the
fact that some members may participate by telephone or other electronic means, and of the
provisions of paragraph (g). The timing and method of providing notice is governed by
section 13D.04.

Sec. 9.

new text begin [116U.242] EXPLORE MINNESOTA FOR BUSINESS COUNCIL.
new text end

new text begin (a) The director shall be advised by the Explore Minnesota for Business Council
consisting of up to 28 voting members appointed by the governor for four-year terms,
including:
new text end

new text begin (1) the director of Explore Minnesota and the commissioner of employment and economic
development who serve as cochairs;
new text end

new text begin (2) three representatives in marketing, human resources, or executive leadership from
Minnesota-based companies with more than 100 employees representing Minnesota's key
industries, including health care, technology, food and agriculture, manufacturing, retail,
energy, and support services;
new text end

new text begin (3) two representatives from statewide or regional marketing or business association
leadership, the Iron Range, and nonprofits focused on economic development or human
resource management;
new text end

new text begin (4) one representative from a Minnesota college or university staff, faculty, leadership,
student leadership, or alumni association;
new text end

new text begin (5) one member representing Minnesota's start-up and entrepreneurial industry who has
started at least one Minnesota-based business in the last five years and has at least 20
employees;
new text end

new text begin (6) two representatives from the Minnesota Indian Affairs Council and Minnesota Tribal
leadership, including casino management;
new text end

new text begin (7) two representatives from Minnesota's Ethnic Chambers of Commerce Leadership
and the Minnesota Chamber of Commerce; and
new text end

new text begin (8) one at-large representative in the field of general marketing, talent attraction, or
economic development.
new text end

new text begin (b) The council shall act to serve the broader interest of promoting overall livability and
workforce and economic opportunity in Minnesota. Members shall advise Explore Minnesota
for Business's marketing efforts by emphasizing and prioritizing diversity, equity, inclusion,
and accessibility and providing professional marketing insights.
new text end

Sec. 10.

Minnesota Statutes 2022, section 116U.30, is amended to read:

116U.30 DUTIES OF DIRECTOR.

(a) The director shall:

(1) publish, disseminate, and distribute informational and promotional materials;

(2) promote and encourage the coordination of Minnesota new text begin travel, new text end tourism new text begin , overall
livability, and workforce and economic opportunity new text end promotion efforts with other state
agencies and develop multiagency marketing strategies when appropriate;

(3) promote and encourage the expansion and development of international tourism new text begin ,
trade, and Minnesota livability new text end marketing;

(4) advertise and disseminate information about Minnesota travel new text begin , tourism, and workforce
and economic development new text end opportunities;

(5) aid various local communities to improve their new text begin travel, new text end tourism new text begin , and overall livability new text end
marketing programs;

(6) coordinate and implement deleted text begin a deleted text end comprehensive state new text begin travel, new text end tourism new text begin , workforce and
economic development, and overall livability new text end marketing deleted text begin program deleted text end new text begin programs new text end that deleted text begin takes deleted text end new text begin take new text end
into consideration public and private businesses and attractions;

(7) contract, in accordance with section 16C.08, for professional services if the work or
services cannot be satisfactorily performed by employees of the agency or by any other
state agency;

(8) provide local, regional, and statewide deleted text begin tourism deleted text end organizations with information,
technical assistance, training, and advice on using state tourism new text begin and livability information
and new text end programs; and

(9) generally gather, compile, and make available statistical information relating to
Minnesota new text begin travel, new text end tourism new text begin , workforce and economic development, overall livability, new text end and
related areas in this state deleted text begin , with deleted text end new text begin . The director has the new text end authority to call upon other state agencies
for statistical data and results obtained by them and to arrange and compile that statistical
information.

(b) The director may:

(1) apply for, receive, and spend money for new text begin travel, new text end tourism new text begin , workforce and economic
development, and overall livability new text end development and marketing from other agencies deleted text begin and
tourism deleted text end new text begin , new text end organizations new text begin , new text end and businesses;

(2) apply for, accept, and disburse grants and other aids for tourism development and
marketing from the federal government and other sources;

(3) enter into joint powers or cooperative agreements with agencies of the federal
government, local governmental units, regional development commissions, other state
agencies, the University of Minnesota and other educational institutions, other states,
Canadian provinces, new text begin and new text end local, statewide, and regional deleted text begin tourism deleted text end organizations as necessary
to perform the director's duties;

(4) enter into interagency agreements and agree to share net revenues with the contributing
agencies;

(5) make grants;

(6) conduct market research and analysis to improve marketing techniques in the area
of new text begin travel, new text end tourism new text begin , workforce and economic development, and overall livability new text end ;

(7) monitor and study trends in the deleted text begin tourism industry deleted text end new text begin related industries new text end and provide
resources and training to address change;

(8) annually convene conferences of Minnesota deleted text begin tourism deleted text end providers for the purposes of
exchanging information on tourism development, coordinating marketing activities, and
formulating tourism new text begin , overall livability, and workforce and economic opportunity promotion new text end
development strategies; and

(9) enter into deleted text begin tourism deleted text end promotion contracts or other agreements with private persons and
public entities, including agreements to establish and maintain offices and other types of
representation in foreign countries deleted text begin , deleted text end to promote international travel and to implement this
chapter.

(c) Contracts for goods and nonprofessional technical services made under paragraph
(b), clauses (3) and (9), are not subject to the provisions of sections 16C.03, subdivision 3,
and 16C.06 concerning competitive bidding and section 16C.055 concerning barter
arrangements. deleted text begin Unless otherwise determined by the commissioner of administration, all other
provisions of chapter 16C apply to this section, including section 16C.08, relating to
professional and technical services. deleted text end new text begin Contracts may be negotiated and are not subject to the
provisions of chapter 16C relating to competitive bidding.
new text end

Sec. 11.

Minnesota Statutes 2022, section 116U.35, is amended to read:

116U.35 PROMOTIONAL EXPENSES.

To promote new text begin travel, new text end tourism new text begin , workforce and economic development, and overall livability new text end
of the state, the director may expend money appropriated by the legislature for these purposes
in the same manner as private persons, firms, corporations, and associations make
expenditures for these purposes. Policies on promotional expenses must be approved by deleted text begin the
Explore Minnesota Tourism Council and deleted text end the commissioner of administration. A policy for
expenditures on food, lodging, and travel must be approved by the commissioner of
management and budget. No money may be expended for the appearance in radio or
television broadcasts by an elected public official.

ARTICLE 3

PAID FAMILY AND MEDICAL BENEFITS; APPROPRIATIONS

Section 1. new text begin DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT new text end

new text begin $ new text end

new text begin 41,659,000 new text end

new text begin $ new text end

new text begin 36,492,000 new text end

new text begin This amount is for the paid family and medical
leave fund in Minnesota Statutes, chapter
268A. The base for the paid family and
medical leave fund is $64,657,000 in fiscal
year 2026 and $92,640,000 in fiscal year 2027.
new text end

Sec. 2. new text begin DEPARTMENT OF LABOR AND INDUSTRY new text end

new text begin $ new text end

new text begin 601,000 new text end

new text begin $ new text end

new text begin 480,000 new text end

new text begin This amount is from the paid family and
medical leave fund.
new text end

new text begin The base from the paid family and medical
leave fund for fiscal year 2026 is $646,000.
new text end

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

new text begin $ new text end

new text begin 367,000 new text end

new text begin $ new text end

new text begin 316,000 new text end

new text begin This amount is from the paid family and
medical leave fund.
new text end

new text begin The base from the paid family and medical
leave fund for fiscal year 2026 is $128,000.
new text end

Sec. 4. new text begin TRANSFER.
new text end

new text begin The Commissioner of Minnesota Management and Budget shall transfer $668,321,000
in fiscal year 2024 from the general fund to the Paid Family and Medical Leave Fund.
new text end

Sec. 5. new text begin ENTERPRISE COSTS BASE ESTABLISHMENT.
new text end

new text begin A general fund appropriation base of $75,000 in fiscal year 2026 and $5,824,000 in
fiscal year 2027 are established to fund enterprise requirements imposed by Minnesota
Statutes, chapter 268A, employee notification, and the costs incurred by state agencies due
to employer-paid premiums established in Minnesota Statutes, chapter 268A. The
commissioner of management and budget shall allocate these amounts to agency base
budgets based on the expected costs incurred by those agencies.
new text end

Sec. 6. new text begin MINNESOTA MANAGEMENT AND BUDGET.
new text end

new text begin The base from the Paid Family and Medical Leave Fund for fiscal year 2026 is $43,000
and in fiscal year 2027 is $44,000.
new text end

Sec. 7. new text begin DEPARTMENT OF HUMAN SERVICES.
new text end

new text begin The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $3,635,000
and for fiscal year 2027 is $0.
new text end

Sec. 8. new text begin SUPREME COURT.
new text end

new text begin The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $20,000
and for fiscal year 2027 is $0.
new text end

Sec. 9. new text begin MINNESOTA STATE LEGISLATURE.
new text end

new text begin The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $11,000
and for fiscal year 2027 is $0.
new text end

Sec. 10. new text begin COURT OF APPEALS.
new text end

new text begin The base from the Paid Family and Medical Leave fund for fiscal year 2026 is $0 and
for fiscal year 2027 is $5,600,000.
new text end

ARTICLE 4

DEED 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.

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

Subd. 8.

Meetings.

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

Sec. 3.

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

Subd. 10.

Expiration.

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

Sec. 4.

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

new text begin Subdivision 1. new text end

new text begin Office established; purpose. new text end

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

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

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

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

new text begin Subd. 2. new text end

new text begin Duties. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Reporting. new text end

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin No right of action. new text end

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

new text begin Subd. 6. new text end

new text begin Grants. new text end

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

Sec. 5.

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" means a small business concern as defined under section 3 of the
Small Business Act, United States Code, title 15, section 632.
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. 6.

new text begin [116J.682] SMALL BUSINESS ASSISTANCE PARTNERSHIPS 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 terms in this
subdivision 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) "Partner organizations" or "partners" means:
new text end

new text begin (1) nonprofit organizations or public entities, including higher education institutions,
engaged in business development or economic development;
new text end

new text begin (2) community development financial institutions; or
new text end

new text begin (3) community development corporations.
new text end

new text begin (d) "Small business" has the same meaning as defined under section 3 of the Small
Business Act, United States Code, title 15, section 632.
new text end

new text begin (e) "Underserved populations and geographies" means individuals who are Black,
Indigenous, people of color, veterans, people with disabilities, and low-income individuals
and includes people from rural Minnesota.
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 the small business assistance
partnerships program to make grants to local and regional community-based organizations
to provide small business development and technical assistance services to entrepreneurs
and small business owners.
new text end

new text begin Subd. 3. new text end

new text begin Small business assistance partnerships grants. new text end

new text begin (a) The commissioner shall
make small business assistance partnerships grants to local and regional community-based
organizations to provide small business development and technical assistance services to
entrepreneurs and small business owners. The commissioner must prioritize applications
that provide services to underserved populations and geographies.
new text end

new text begin (b) Grantees shall use the grant funds to provide high-quality, free or low-cost
professional business development and technical assistance services that support the start-up,
growth, and success of Minnesota's entrepreneurs and small business owners.
new text end

new text begin Subd. 4. new text end

new text begin Report. new text end

new text begin By January 31 of each year, partner organizations participating in the
program must provide a report to the commissioner on the outcomes of the program including
but not limited to the number of entrepreneurs and small businesses served, number of hours
of business assistance services provided, number of new businesses started, number of
full-time equivalent jobs created and retained, and demographic and geographic details of
the individuals being served.
new text end

Sec. 7.

new text begin [116J.8733] MINNESOTA EXPANDING OPPORTUNITY FUND PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Minnesota Expanding Opportunity Fund Program
is established to capitalize Minnesota nonprofit corporations to increase lending activities
with Minnesota small businesses.
new text end

new text begin Subd. 2. new text end

new text begin Long-term loans. new text end

new text begin The department may make long-term loans of ten to 12 years
at 0.5 percent or lower interest rates to nonprofit corporations to enable nonprofit corporations
to make more loans to Minnesota small businesses. The department may use the interest
received to offset the cost of administering small business lending programs.
new text end

new text begin Subd. 3. new text end

new text begin Loan eligibility; nonprofit corporation. new text end

new text begin (a) The eligible nonprofit corporation
must not meet the definition of recipient under section 116J.993, subdivision 6.
new text end

new text begin (b) The commissioner may enter into loan agreements with Minnesota nonprofit
corporations that apply to participate in the Minnesota Expanding Opportunity Fund Program.
The commissioner shall evaluate applications from applicant nonprofit corporations. In
evaluating applications, the department must consider, among other things, whether the
nonprofit corporation:
new text end

new text begin (1) meets the statutory definition of a community development financial institution as
defined in section 103 of the Riegle Community Development and Regulatory Improvement
Act of 1994, United States Code, title 12, section 4702;
new text end

new text begin (2) has a board of directors or loan or credit committee that includes citizens experienced
in small business services and community development;
new text end

new text begin (3) has the technical skills to analyze small business loan requests;
new text end

new text begin (4) is familiar with other available public and private funding sources and economic
development programs;
new text end

new text begin (5) is enrolled in one or more eligible federally funded state programs; and
new text end

new text begin (6) has the administrative capacity to manage a loan portfolio.
new text end

new text begin Subd. 4. new text end

new text begin Revolving loan fund. new text end

new text begin (a) The commissioner shall establish a revolving loan
fund to make loans to nonprofit corporations for the purpose of increasing nonprofit
corporation capital and lending activities with Minnesota small businesses.
new text end

new text begin (b) Nonprofit corporations that receive loans from the commissioner under the program
must establish appropriate accounting practices for the purpose of tracking eligible loans.
new text end

new text begin Subd. 5. new text end

new text begin Loan portfolio administration. new text end

new text begin (a) The interest rate charged by a nonprofit
corporation for a loan under this subdivision must not exceed the Wall Street Journal prime
rate plus two percent. A nonprofit corporation participating in the Minnesota Expanding
Opportunity Fund Program may charge a loan closing fee equal to or less than two percent
of the loan value.
new text end

new text begin (b) The nonprofit corporation may retain all earnings from fees and interest from loans
to small businesses.
new text end

new text begin Subd. 6. new text end

new text begin Cooperation. new text end

new text begin A nonprofit corporation that receives a program loan shall
cooperate with other organizations, including but not limited to community development
corporations, community action agencies, and the Minnesota small business development
centers.
new text end

new text begin Subd. 7. new text end

new text begin Reporting requirements. new text end

new text begin (a) A nonprofit corporation that receives a program
loan must submit an annual report to the commissioner by February 15 of each year that
includes:
new text end

new text begin (1) the number of businesses to which a loan was made;
new text end

new text begin (2) a description of businesses supported by the program;
new text end

new text begin (3) demographic information, as specified by the commissioner, regarding each borrower;
new text end

new text begin (4) an account of loans made during the calendar year;
new text end

new text begin (5) the program's impact on job creation and retention;
new text end

new text begin (6) the source and amount of money collected and distributed by the program;
new text end

new text begin (7) the program's assets and liabilities; and
new text end

new text begin (8) an explanation of administrative expenses.
new text end

new text begin (b) A nonprofit corporation that receives a program loan must provide for an independent
annual audit to be performed in accordance with generally accepted accounting practices
and auditing standards and submit a copy of each annual audit report to the commissioner.
new text end

Sec. 8.

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. 9.

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. 10.

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. 11.

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. 12.

Minnesota Statutes 2022, section 116J.8749, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Borrower" means an eligible recipient receiving a loan guaranteed under this section.

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

(d) "Eligible project" means the development, redevelopment, demolition, site preparation,
predesign, design, engineering, repair, or renovation of real property or capital improvements.
Eligible projects must be designed to address the greatest economic development and
redevelopment needs that have arisen in the community surrounding that real property since
March 15, 2020. Eligible project includes but is not limited to the construction of buildings,
infrastructure, and related site amenities, landscaping, or street-scaping. Eligible project
does not include the purchase of real estate or business operations or business operating
expenses, such as inventory, wages, or working capital.

(e) "Eligible recipient" means a:

(1) business;

(2) nonprofit organization; or

(3) developer

that is seeking funding to complete an eligible project. Eligible recipient does not include
a partner organization or a local unit of government.

(f) "Guaranteed loan" means a loan guaranteed by the state for 80 percent of the loan
amount for a maximum period of 15 years from the origination of the loan.

(g) "Leveraged grant" means a grant that is matched by the eligible recipient's
commitment to the eligible project of nonstate funds deleted text begin at a level of 200 percent of the grant
amount deleted text end . The nonstate match may include but is not limited to funds contributed by a partner
organization and insurance proceeds. new text begin A leveraged grant is subject to the following limits:
new text end

new text begin (1) if awarding grants under $150,000, state funds may make up no more than 50 percent
of an eligible project; and
new text end

new text begin (2) if awarding grants of $150,000 or more, state funds may make up no more than 30
percent of an eligible project.
new text end

(h) "Loan guarantee trust fund" means a dedicated account established under this section
for the purpose of compensation for defaulted loan guarantees.

(i) "Partner organizations" or "partners" means:

(1) foundations engaged in economic development;

(2) community development financial institutions; and

(3) community development corporations.

(j) "Program" means the Main Street Economic Revitalization Program under this section.

(k) "Subordinated loan" means a loan secured by a lien that is lower in priority than one
or more specified other liens.

Sec. 13.

Minnesota Statutes 2022, section 116J.8749, subdivision 3, is amended to read:

Subd. 3.

Grants to partner organizations.

(a) The commissioner shall make grants to
partner organizations to provide leveraged grants and guaranteed loans to eligible recipients
using criteria, forms, applications, and reporting requirements developed by the
commissioner.

(b) To be eligible for a grant, a partner organization must:

(1) outline a plan to provide leveraged grants and guaranteed loans to eligible recipients
deleted text begin for specific eligible projects that deleted text end new text begin who new text end represent the greatest economic development and
redevelopment needs in the surrounding community. This plan must include an analysis of
the economic impact of the eligible projects the partner organization proposes to make these
investments in;

(2) establish a process of ensuring there are no conflicts of interest in determining awards
under the program; and

(3) demonstrate that the partner organization has raised funds for the specific purposes
of this program to commit to the proposed eligible projects or will do so within the deleted text begin 15-month deleted text end new text begin
18-month new text end period following the encumbrance of funds. deleted text begin Existing assets and deleted text end State or federal
funds may not be used to meet this requirement.

(c) Grants shall be made in up to deleted text begin three deleted text end new text begin five new text end rounds:

(1) a first round with an application date before September 1, 2021, during which no
more than 50 percent of available funds will be granted;

(2) a second round with an application date after September 1, 2021, but before March
1, 2022; deleted text begin and
deleted text end

(3) a third round with an application date after June 30, 2023, if any funds remain after
the first two rounds deleted text begin . deleted text end new text begin ;
new text end

new text begin (4) a fourth round with an application date after June 30, 2024, if any funds remain after
the first three rounds; and
new text end

new text begin (5) a fifth round with an application date after June 30, 2025, if any funds remain after
the first four rounds.
new text end

A partner may apply in multiple rounds for projects that were not funded in earlier rounds
or for new projects.

(d) Up to deleted text begin four deleted text end new text begin five new text end percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program.

Sec. 14.

Minnesota Statutes 2022, section 116J.8749, subdivision 5, is amended to read:

Subd. 5.

Leveraged grants to eligible recipients.

(a) A leveraged grant to an eligible
recipient shall be for no more than $750,000.

deleted text begin (b) A leveraged grant may be used to finance no more than 30 percent of an eligible
project.
deleted text end

new text begin (b) A leveraged grant is subject to the following limits:
new text end

new text begin (1) if awarding grants under $150,000, state funds may make up no more than 50 percent
of an eligible project; and
new text end

new text begin (2) if awarding grants of $150,000 or more, state funds may make up no more than 30
percent of an eligible project.
new text end

(c) An eligible project must have secured commitments for all required matching funds
and all required development approvals before a leveraged grant may be distributed.

Sec. 15.

Minnesota Statutes 2022, section 116J.8749, subdivision 10, is amended to read:

Subd. 10.

Exemptions.

All grants and grant-making processes under this section are
exempt from Minnesota Statutes, sections 16A.15, subdivision 3; 16B.97; and 16B.98,
subdivisions 5, 7, and 8. The commissioner must audit the use of funds under this section
in accordance with standard accounting practices. The exemptions under this subdivision
expire on December 31, deleted text begin 2023 deleted text end new text begin 2027 new text end .

Sec. 16.

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 Higher education technology commercialization program. new text end

new text begin (a) The
commissioner shall distribute higher education technology commercialization program
grants to no more than five systems or institutions of higher education to provide technical
assistance and subject matter expertise to entrepreneurs working to scale new innovations.
new text end

new text begin (b) Grantees shall collaborate with the Launch Minnesota network, private sector, and
other organizations working to advance innovative technology businesses when delivering
this assistance.
new text end

new text begin (c) Priority must be given to applicants with experience assisting business owners or
entrepreneurs residing in greater Minnesota or who are women, veterans, or minority group
members.
new text end

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

new text begin (1) services to advance product development and to more clearly define a commercial
path for products and services, including education, prototyping, technical assistance,
marketing research, and subject matter expertise; and
new text end

new text begin (2) funding to offset staff costs in organizing and administering the technology
commercialization program.
new text end

new text begin Subd. 9. 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. 10. 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. 17.

new text begin [116J.8752] MINNESOTA FORWARD FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Agreement" or "business subsidy agreement" means a business subsidy agreement
under section 116J.994 that must include but is not limited to specification of the duration
of the agreement, job goals and a timeline for achieving those goals over the duration of
the agreement, construction and other investment goals and a timeline for achieving those
goals over the duration of the agreement, and the value of benefits the firm may receive
following achievement of capital investment and employment goals. The municipality, local
unit of government, or business must report to the commissioner on the business performance
using the forms developed by the commissioner.
new text end

new text begin (c) "Business" means an individual, corporation, partnership, limited liability company,
association, or other entity.
new text end

new text begin (d) "Capital investment" means money that is expended for the purpose of building or
improving real fixed property where employees are or will be employed, equipment and
machinery in the building, and operating expenses related to the building.
new text end

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

new text begin (f) "Fund" means the Minnesota forward fund.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota forward fund account. new text end

new text begin The Minnesota forward fund account is
created as a separate account in the treasury. Money in the account is appropriated to the
commissioner of employment and economic development for the purposes of this section.
All money earned by the account, loan repayments of principal, and interest must be credited
to the account. The commissioner shall operate the account as a revolving account.
new text end

new text begin Subd. 3. new text end

new text begin Purpose. new text end

new text begin The Minnesota forward fund is created to increase the state's
competitiveness by providing the state the authority and flexibility to facilitate private
investment. The fund serves as a closing fund to allow the authority and flexibility to
negotiate incentives to better compete with other states for business retention, expansion
and attraction of projects in existing and new industries, develop properties for business
use, and leverage to meet matching requirements of federal funding for resiliency in economic
security and economic enhancement opportunities that provide the public high-quality
employment opportunities. The commissioner shall use money appropriated to the fund to:
new text end

new text begin (1) create and retain permanent private-sector jobs in order to create above-average
economic growth consistent with environmental protection;
new text end

new text begin (2) stimulate or leverage private investment to ensure economic renewal and
competitiveness;
new text end

new text begin (3) increase the local tax base, based on demonstrated measurable outcomes, to guarantee
a diversified industry mix;
new text end

new text begin (4) improve the quality of existing jobs, based on increases in wages or improvements
in the job duties, training, or education associated with those jobs;
new text end

new text begin (5) improve employment and economic opportunity for citizens in the region to create
a reasonable standard of living, consistent with federal and state guidelines on low- to
moderate-income persons;
new text end

new text begin (6) stimulate productivity growth through improved manufacturing or new technologies;
and
new text end

new text begin (7) match or leverage private or public funding to increase investment and opportunity
in the state.
new text end

new text begin Subd. 4. new text end

new text begin Use of fund. new text end

new text begin The commissioner may use money in the fund to make grants,
loans and forgivable loans, to businesses that are making large private capital investments
in existing and new industries. The commissioner may also use money in the fund to make
grants to communities and higher education institutions to support such capital investments
and related activities to support the industries. Money may be used to address capital needs
of businesses for machinery and equipment purchases; building construction and remodeling;
land development; water and sewer lines, roads, rail lines, and natural gas and electric
infrastructure; working capital; and workforce training. Money may also be used for matching
federal grants for research and development projects and industry workforce training grants
for existing and new industries that require state and local match. Money in the fund may
also be used to pay for the costs of carrying out the commissioner's due diligence duties
under this section.
new text end

new text begin Subd. 5. new text end

new text begin Grant limits. new text end

new text begin (a) Individual business expansion projects are limited to no more
than $20,000,000 in grants or loans combined. The commissioner shall not be precluded
from using other funding sources from the Department of Employment and Economic
Development to facilitate a project. Total funding per business under this section shall not
exceed $20,000,000, of which no more than $10,000,000 may be grants and $10,000,000
may be loans.
new text end

new text begin (b) The commissioner may use money in the fund to make grants to a municipality or
local unit of government for public and private infrastructure needed to support an eligible
project under this section. Grant money may be used by the municipality or local unit of
government to predesign, design, construct, and equip roads and rail lines; acquire and
prepare land for development; and, in cooperation with municipal utilities, to predesign,
design, construct, and equip natural gas pipelines, electric infrastructure, water supply
systems, and wastewater collection and treatment systems. The maximum grant award per
local unit of government under this section is $10,000,000.
new text end

new text begin (c) The commissioner may use money in the fund to make grants to institutions of higher
education for developing and deploying training programs and to increase the capacity of
the institution to serve industrial requirements for research and development that coincide
with current and future requirements of projects eligible under this section. Grant money
may be used to construct and equip facilities that serve the purpose of the industry. The
maximum grant award per institution of higher education under this section is $5,000,000
and may not represent more than 33 percent of the total project funding from other sources.
new text end

new text begin (d) Grants under this subdivision are available until expended.
new text end

new text begin Subd. 6. new text end

new text begin Administration. new text end

new text begin (a) Eligible applicants for the state-funded portion of the fund
also include development authorities as defined in section 116J.552, subdivision 4, provided
that the governing body of the municipality approves, by resolution, the application of the
development authority. Institutions of higher education also constitute eligible applicants
for the purpose of developing and deploying workforce training programs and for developing
and deploying research and development partnerships for projects eligible under this section.
new text end

new text begin (b) The business, municipality, or local unit of government must request and submit an
application to the commissioner. Applications must be in the form and procedure specified
by the commissioner.
new text end

new text begin (c) The commissioner must conduct due diligence, including contracting with
professionals as needed to assist in the due diligence.
new text end

new text begin (d) Notwithstanding any other law to the contrary, grant and loan agreements through
the Minnesota forward fund may exceed five years but not more than ten years.
new text end

new text begin Subd. 7. new text end

new text begin Requirements prior to committing funds. new text end

new text begin Prior to the commissioner making
a commitment for grant or loan under this section, the Legislative Advisory Commission
and governor must jointly provide written authorization. The commissioner shall provide
a written report to the Legislative Advisory Commission and governor, including but not
limited to the purpose of the award, the project overview, financial details, and the
performance requirements required 14 days prior to any meeting or decision.
new text end

new text begin Subd. 8. new text end

new text begin Eligible projects. new text end

new text begin (a) The governor and the Legislative Advisory Commission
must evaluate applications under this section on the existence of one or more of the following
conditions:
new text end

new text begin (1) creation of new jobs, retention of existing jobs, or improvements in the quality of
existing jobs as measured by the wages, skills, or education associated with those jobs;
new text end

new text begin (2) whether the project can demonstrate that investment of public dollars induces private
and other public funds as follows;
new text end

new text begin (i) businesses in the seven-county metropolitan area must invest more than $40,000,000
in capital expenditures and create at least 70 jobs or retain at least 150 jobs;
new text end

new text begin (ii) businesses outside of the seven-county metropolitan area must invest more than
$25,000,000 in capital expenditures and create at least 40 new jobs or retain at least 75 jobs;
and
new text end

new text begin (iii) cash wages of each new employee must exceed 120 percent of federal poverty
guidelines for a family of four, adjusted annually;
new text end

new text begin (3) whether the project can demonstrate an excessive public infrastructure or improvement
cost beyond the means of the affected community and private participants in the project;
new text end

new text begin (4) whether assistance is necessary to retain existing business or whether assistance is
necessary to attract out-of-state business;
new text end

new text begin (5) the project promotes or advances an industry in which the federal government is
making large investments to strengthen domestic production and supply chains that are
resilient for economic security and economic enhancement opportunities;
new text end

new text begin (6) the project promotes or advances the green economy as defined in section 116J.437;
new text end

new text begin (7) the project requires state resources beyond the capability of existing programs at the
department and by its significance, requires the governor and legislature's involvement; and
new text end

new text begin (8) written support from the municipality or local unit of government in which the project
will be located.
new text end

new text begin (b) The governor and the Legislative Advisory Commission shall submit applications
recommended for funding to the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin Requirements for fund disbursements. new text end

new text begin Disbursements of loan funds pursuant
to a commitment may not be made until:
new text end

new text begin (1) commitments for the remainder of a project's funding are made that are satisfactory
to the commissioner and disbursements made from the other commitments are sufficient to
protect the interests of the state in its grant or loan;
new text end

new text begin (2) performance requirements are met, if any;
new text end

new text begin (3) the municipality or local unit of government in which the project will be located has
passed a resolution of support for the project and submitted this resolution of support to the
department; and
new text end

new text begin (4) all of a project's funding is satisfactory to the commissioner and disbursements made
from other commitments are sufficient to protect the interests of the state.
new text end

new text begin Subd. 10. new text end

new text begin Reporting. new text end

new text begin The commissioner shall provide the Legislative Advisory
Commission and the ranking members of the committees with jurisdiction over economic
development with an annual report on all projects that have been approved by February 15
of each year until this section is repealed or the funding has been exhausted.
new text end

Sec. 18.

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

Subd. 7.

deleted text begin Very deleted text end Low income.

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

Sec. 19.

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

Subdivision 1.

Generally.

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

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

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

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

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

(4) youth or senior citizen centers;

(5) community health centers; and

(6) community garden facilities.

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

Sec. 20.

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

Subd. 3.

Work experience component.

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

Sec. 21.

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

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

new text begin (g) "Workforce development community-based organization" means a nonprofit
organization with under $1,000,000 in annual revenue that performs workforce development
activities.
new text end

new text begin Subd. 2. new text end

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

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

new text begin (b) Grants must be used to provide skills training including:
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (c) The commissioner must award grants to community based organizations meeting
the following criteria:
new text end

new text begin (1) the organization's primary operations are located in communities of color;
new text end

new text begin (2) 80 percent of the organization's participants reflect the demographics of the
community; and
new text end

new text begin (3) the organization's community has a high unemployment rate or poverty rate.
new text end

new text begin (d) Grant awards must not exceed $750,0000 per year per organization and all funding
awards must be made for the duration of a biennium. An organization may partner with
another organization to utilize grant awards, provided that the organizations must not be
funded to deliver the same services. Grants awarded under this subdivision are not subject
to section 116L.98.
new text end

new text begin Subd. 3. new text end

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

new text begin (a) The commissioner
shall establish a diversity and inclusion training grant program which shall provide
competitive grants to businesses that commit to actively engage, hire, and retain people of
color for both entry level and high-wage opportunities.
new text end

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

new text begin (c) Grant funds must be used to train small businesses in outreach, recruitment, and
retention of entry-level, mid-level, and senior-level management and a board of directors.
Grant recipients are required to submit a plan for use of the funds and an implementation
plan after training is completed.
new text end

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

new text begin Subd. 4. new text end

new text begin Capacity building. new text end

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

new text begin (b) Eligible organizations include nonprofit organizations which have:
new text end

new text begin (1) primary offices located in low-income communities;
new text end

new text begin (2) an annual client service base of over 80 percent of people of color; and
new text end

new text begin (3) an annual budget of less than $1,000,000.
new text end

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

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

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

new text begin (f) By January 15, 2025, and each January 15 thereafter, the commissioner must submit
a report to the chairs and ranking minority members of the committees of the house of
representatives and the senate having jurisdiction over workforce development that details
the use of grant awards. If data is available, the report must contain data that is disaggregated
by race, cultural groups, family income, age, geographical location, migrant or foreign
immigrant status, primary language, whether the participant is an English learner under
section 124D.59, disability, and status of homelessness.
new text end

Sec. 22.

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

Subd. 2.

Eligible applicant.

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

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

(1) a pregnant or parenting youth;

(2) a youth with limited English proficiency;

(3) a potential or actual school dropout;

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

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

(6) a youth with disabilities including learning disabilities;

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

(8) a homeless or runaway youth;

(9) a youth with basic skills deficiency;

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

(11) a foster child.

Sec. 23.

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

Subd. 5.

Allocation formula.

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

Sec. 24.

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

Subd. 2.

Definitions.

For purposes of this section:

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

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

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

Sec. 25. new text begin MINNESOTA EMPLOYER REASONABLE ACCOMMODATION FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Reimbursement grant program established. new text end

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

new text begin Subd. 3. new text end

new text begin Application. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Reimbursement awards. new text end

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

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

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

new text begin Subd. 5. new text end

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

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

new text begin Subd. 6. new text end

new text begin Technical assistance and consultation. new text end

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

new text begin Subd. 7. new text end

new text begin Administration and marketing costs. new text end

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

new text begin Subd. 8. new text end

new text begin Notification. new text end

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

new text begin Subd. 9. new text end

new text begin Reports to the legislature. new text end

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

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

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

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

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

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

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

new text begin Subd. 10. new text end

new text begin Expiration. new text end

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

ARTICLE 5

UNEMPLOYMENT INSURANCE

Section 1.

new text begin [124D.995] UNEMPLOYMENT INSURANCE AID.
new text end

new text begin (a) School districts and charter schools, including intermediate school districts and other
cooperative units under section 123A.24, subdivision 2, are eligible to receive unemployment
insurance aid under this section. For each fiscal year, an eligible entity's aid is the difference
between:
new text end

new text begin (1) net audited unemployment costs, as reported under section 123B.76, for the prior
fiscal year; and
new text end

new text begin (2) the base period net audited unemployment costs pursuant to paragraph (b).
new text end

new text begin (b) The base period net audited unemployment costs equals the average of an eligible
entity's fiscal year 2023 and fiscal year 2024 net audited unemployment costs.
new text end

new text begin (c) If the total eligible unemployment insurance aid for a fiscal year is greater than the
annual appropriation for that year, the commissioner must proportionately reduce the aid
payment to each eligible entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aid beginning in fiscal year 2026.
new text end

Sec. 2.

Minnesota Statutes 2022, section 126C.43, subdivision 2, is amended to read:

Subd. 2.

Payment to unemployment insurance program trust fund by state and
political subdivisions.

(a) A district may levy the amount necessary (1) to pay the district's
obligations under section 268.052, subdivision 1, and (2) to pay for job placement services
offered to employees who may become eligible for benefits pursuant to section 268.085 for
the fiscal year the levy is certified.

(b) Districts with a balance remaining in their reserve for reemployment as of June 30,
2003, may not expend the reserved funds for future reemployment expenditures. Each year
a levy reduction must be made to return these funds to taxpayers. The amount of the levy
reduction must be equal to the lesser of: (1) the remaining reserved balance for reemployment,
or (2) the amount of the district's current levy under paragraph (a).

new text begin (c) The amount in paragraph (a) must be reduced by any amount received by the district
under section 124D.995.
new text end

new text begin (d) A district that is a member of an intermediate school district or other cooperative
unit under section 123A.24, subdivision 2, may include in its authority under this section
the costs associated with qualifying obligations under paragraph (a) for the cooperative unit.
Revenue raised under this paragraph must be transferred to the cooperative unit.
new text end

Sec. 3.

Minnesota Statutes 2022, section 127A.45, subdivision 12, is amended to read:

Subd. 12.

Payment percentage for certain aids.

One hundred percent of the aid for
the current fiscal year must be paid for the following aids: reimbursement for enrollment
options transportation, according to sections 124D.03, subdivision 8, and 124D.09,
subdivision 22, and chapter 124E; school lunch aid, according to section 124D.111; deleted text begin and deleted text end
support services aid, for persons who are deaf, deafblind, and hard-of-hearing according to
section 124D.57 new text begin ; and unemployment insurance aid according to section 124D.995 new text end .

Sec. 4.

Minnesota Statutes 2022, section 268.085, subdivision 7, is amended to read:

Subd. 7.

School employees; between terms denial.

(a) Wage credits from employment
new text begin in an instructional, research, or principal administrative capacity new text end with an new text begin elementary or
secondary school new text end educational institution or institutions new text begin or in any capacity with a
post-secondary educational institution or institutions new text end may not be used for unemployment
benefit purposes for any week during the period between two successive academic years
or terms if:

(1) the applicant had employment for an educational institution or institutions in the
prior academic year or term; and

(2) there is a reasonable assurance that the applicant will have employment for an
educational institution or institutions in the following academic year or term.

This paragraph applies to a vacation period or holiday recess if the applicant was
employed new text begin with an educational institution or institutions in any position new text end immediately before
the vacation period or holiday recess, and there is a reasonable assurance that the applicant
will be employed immediately following the vacation period or holiday recess. This paragraph
also applies to the period between two regular but not successive terms if there is an
agreement for that schedule between the applicant and the educational institution.

This paragraph does not apply if the subsequent employment is substantially less
favorable than the employment of the prior academic year or term, or the employment prior
to the vacation period or holiday recess.

(b) Paragraph (a) does not apply to an applicant who, at the end of the prior academic
year or term, had an agreement for a definite period of employment between academic years
or terms in other than an instructional, research, or principal administrative capacity and
the educational institution or institutions failed to provide that employment.

(c) If unemployment benefits are denied to any applicant under paragraph (a) who was
employed in the prior academic year or term in other than an instructional, research, or
principal administrative capacity and who was not offered an opportunity to perform the
employment in the following academic year or term, the applicant is entitled to retroactive
unemployment benefits for each week during the period between academic years or terms
that the applicant filed a timely continued request for unemployment benefits, but
unemployment benefits were denied solely because of paragraph (a).

(d) This subdivision applies to employment with an educational service agency if the
applicant performed the services at an educational institution or institutions. "Educational
service agency" means a governmental entity established and operated for the purpose of
providing services to one or more educational institutions.

(e) This subdivision applies to employment with Minnesota, a political subdivision, or
a nonprofit organization, if the services are provided to or on behalf of an educational
institution or institutions.

(f) Paragraph (a) applies beginning the Sunday of the week that there is a reasonable
assurance of employment.

(g) Employment and a reasonable assurance with multiple education institutions must
be aggregated for purposes of application of this subdivision.

(h) If all of the applicant's employment with any educational institution or institutions
during the prior academic year or term consisted of on-call employment, and the applicant
has a reasonable assurance of any on-call employment with any educational institution or
institutions for the following academic year or term, it is not considered substantially less
favorable employment.

(i) A "reasonable assurance" may be written, oral, implied, or established by custom or
practice.

(j) An "educational institution" is a school, college, university, or other educational entity
operated by Minnesota, a political subdivision or instrumentality thereof, or a nonprofit
organization.

(k) An "instructional, research, or principal administrative capacity" does not include
an educational assistant.

Sec. 5.

Minnesota Statutes 2022, section 268.085, subdivision 8, is amended to read:

Subd. 8.

Services for school contractors.

(a) Wage credits from an employer are subject
to subdivision 7, if:

(1) the employment was provided under a contract between the employer and an
elementary or secondary school; and

(2) the contract was for services that the elementary or secondary school could have had
performed by its employees.

(b) Wage credits from an employer are not subject to subdivision 7 if:

(1) those wage credits were earned by an employee of a private employer performing
work under a contract between the employer and an elementary or secondary school; and

(2) the employment was related to food services new text begin or student transportation new text end provided to
the school by the employer.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024.
new text end