SF 3035

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/13/2023 12:41pm

A bill for an act
relating to economic development; establishing a budget for the Department of
Employment and Economic Development; modifying various economic
development, Explore Minnesota, and workforce development provisions; requiring
reports; appropriating money; amending Minnesota Statutes 2022, sections
116J.5492, subdivisions 8, 10; 116J.55, subdivisions 1, 5, 6; 116J.8748,
subdivisions 3, 4, 6, by adding a subdivision; 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.30; 116U.35; 469.40, subdivision 11; 469.47, subdivisions 1, 5, 6; Laws
2021, First Special Session chapter 10, article 2, section 24; proposing coding for
new law in Minnesota Statutes, chapters 116J; 116L; 116U.

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 927,998,000 new text end

new text begin $ new text end

new text begin 336,068,000 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 872,942,000 new text end	new text begin 280,984,000 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 54,356,000 new text end	new text begin 54,384,000 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 697,699,000 new text end

new text begin 124,279,000 new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 695,649,000 new text end	new text begin 122,299,000 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) $2,287,000 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) $5,500,000 each year is for Launch
Minnesota. Of this amount: (1) $1,500,000
each year is for innovation grants to eligible
Minnesota entrepreneurs or start-up businesses
to assist with operating needs; (2) $500,000
each year is for administration of Launch
Minnesota; (3) $500,000 each year is for
grantee activities at Launch Minnesota; and
(4) $3,000,000 each year is for a grant to
MNSBIR, Inc., to support moving scientific
excellence and technological innovation from
the lab to the market for start-ups and small
businesses by securing federal research and
development funding. These are onetime
appropriations.
new text end

new text begin (d) $35,296,000 the first year 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 (e) $150,000,000 the first year is for the
Minnesota forward fund under Minnesota
Statutes, section 116J.8752. Money awarded
under this program is made retroactive to
February 1, 2023, for applications and
projects. Of this amount, up to five percent is
for administration and monitoring of the
program. This appropriation is onetime and is
available until June 30, 2027.
new text end

new text begin (f) $100,000,000 the first year is for the
purpose of matching $100,000,000 in existing
federal funds made available in the
Consolidated Appropriations Act, Public Law
117-328, for the purpose of constructing and
operating a bioindustrial manufacturing pilot
innovation facility, biorefinery, and
commercial campus utilizing agricultural
feedstocks. This is a onetime appropriation
and is available until June 30, 2027.
new text end

new text begin (g) $250,000,000 the first year is for the
purpose of matching $250,000,000 in existing
federal funds made available in the Chips and
Science Act, Public Law 117-167, for the
purpose of: (1) constructing, modernizing, or
expanding commercial facilities on the front-
and back-end fabrication of leading-edge,
current-generation, and mature-node
semiconductors; and (2) funding
semiconductor materials and manufacturing
equipment facilities, and for research and
development facilities. This is a onetime
appropriation and is available until June 30,
2027.
new text end

new text begin (h) $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 (i) $2,500,000 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 (j) $350,000 each year is for administration
of the community energy transition office.
new text end

new text begin (k) $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 (l) $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 (m) $239,000 each year is for the Center for
Rural Policy and Development. The base in
fiscal year 2026 and beyond is $139,000.
new text end

new text begin (n) $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 (o) $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 (p) $6,500,000 each year is appropriated from
the general fund to the commissioner of
employment and economic development for
grants to local communities to increase the
number of quality child care providers to
support economic development. Fifty percent
of grant money must go to communities
located outside the seven-county metropolitan
area as defined in Minnesota Statutes, section
473.121, subdivision 2. The base in fiscal year
2026 and beyond is $1,500,000.
new text end

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

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

new text begin (q) $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 (r) $6,000,000 the first year and $1,000,000
the second 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 money under this
section to:
new text end

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

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

new text begin (3) provide locally based training and technical
assistance to rural 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 (s) $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 (t) $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.
The base in fiscal year 2026 and beyond 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 (u) $4,246,000 each year is for the
redevelopment program under Minnesota
Statutes, sections 116J.575 and 116J.5761.
The base in fiscal year 2026 and beyond is
$2,246,000. This appropriation is available
until expended.
new text end

new text begin (v) $1,000,000 each year is for the Minnesota
emerging entrepreneur loan program under
Minnesota Statutes, section 116M.18. Money
available under this paragraph is 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 (w) $325,000 each year is for the Minnesota
Film and TV Board. The appropriation each
year is available only upon receipt by the
board of $1 in matching contributions of
money or in-kind contributions from nonstate
sources for every $3 provided by this
appropriation, except that each year up to
$50,000 is available on July 1 even if the
required matching contribution has not been
received by that date.
new text end

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

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

new text begin (z) $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 (aa) $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 (bb) $30,000,000 each year is for the
PROMISE grant program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:
new text end

new text begin (1) $6,500,000 each year is for grants to the
Minnesota Initiative Foundations to serve
businesses in greater Minnesota; and
new text end

new text begin (2) $23,000,000 each year is for grants to the
Neighborhood Development Center. Of this
amount, the following amounts are designated
for the following areas:
new text end

new text begin (i) $10,500,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;
new text end

new text begin (ii) $6,500,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
and Riverside corridors; and
new text end

new text begin (iii) $6,500,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.
new text end

new text begin (cc) $20,000,000 each year is for the
PROMISE loan program. This is a onetime
appropriation and is available until June 30,
2027. Of this amount:
new text end

new text begin (1) $4,000,000 each year is for grants to the
Minnesota Initiative Foundations to serve
businesses in greater Minnesota; and
new text end

new text begin (2) $16,000,000 each year is for grants to the
Metropolitan Economic Development
Association (MEDA). Of this amount, the
following amounts are designated for the
following areas:
new text end

new text begin (i) $8,000,000 each year is for North
Minneapolis' West Broadway, Camden, or
other Northside neighborhoods;
new text end

new text begin (ii) $4,000,000 each year is for South
Minneapolis' Lake Street, 38th and Chicago,
and Riverside corridors; and
new text end

new text begin (iii) $4,000,000 each year is for St. Paul's
University Avenue, Midway, Eastside, or other
St. Paul neighborhoods.
new text end

new text begin (dd) $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 (ee) $500,000 each year is for the airport
infrastructure renewal 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 (ff) $5,000,000 the first year is for a grant to
the Bloomington Port Authority to provide
funding for the Expo 2027 host organization.
The Bloomington Port Authority must enter
into an agreement with the host organization
over the use of money, which may be used for
activities, including but not limited to
finalizing the community dossier and staffing
the host organization and for infrastructure
design and planning, financial modeling,
development planning and coordination of
both real estate and public private partnerships,
and reimbursement of costs the Bloomington
Port Authority incurred. The host organization
and Bloomington Port Authority may be
reimbursed for expenses 90 days prior to
encumbrance. This appropriation is contingent
on approval of the project by the Bureau
International des Expositions. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
for the second year.
new text end

new text begin (gg) $5,000,000 the first year is for grants to
the Neighborhood Development Center. This
is a onetime appropriation. Any unencumbered
balance remaining at the end of the first year
does not cancel but is available for the second
year. Of the amount appropriated each year,
$4,200,000 is for small business programs
including training, lending, business services,
and real estate programming; and $800,000 is
for technical assistance activities for partners
located outside the seven-county metropolitan
area, as defined in Minnesota Statutes, section
473.121, subdivision 2.
new text end

new text begin (hh) $2,650,000 the first year is for deposit in
the emerging developer fund account in the
special revenue fund. Of this amount, up to
five percent is for administration and
monitoring of the emerging developer fund
program under Minnesota Statutes, section
116J.9926. This is a onetime appropriation.
new text end

new text begin (ii) $5,000,000 the first year is for the
Canadian border counties economic relief
program under article 5. Of this amount, up
to $2,100,000 is for a grant to the Lake of the
Woods County for the forgivable loan program
for remote recreational businesses. This is a
onetime appropriation and is available until
June 30, 2026.
new text end

new text begin (jj) $1,250,000 the first year and $250,000 the
second year are for a grant to African
Economic Development Solutions. This is a
onetime appropriation and is available until
June 30, 2026. Of this amount:
new text end

new text begin (1) $1,000,000 is for a loan fund that must
address pervasive economic inequities by
supporting business ventures of entrepreneurs
in the African immigrant community; and
new text end

new text begin (2) $250,000 each year is for workforce
development and technical assistance,
including but not limited to business
development, entrepreneur training, business
technical assistance, loan packing, and
community development services.
new text end

new text begin (kk) $500,000 each year is for a grant to the
Latino Economic Development Center. Grant
proceeds may be used to:
new text end

new text begin (1) assist, support, finance, and launch
micro-entrepreneurs by delivering training,
workshops, and one-on-one consultations to
businesses;
new text end

new text begin (2) offer workshops on a variety of topics
throughout the year, including finance,
customer service, food-handler training, and
food-safety certification; and
new text end

new text begin (3) provide lending to business start-ups.
new text end

new text begin (ll) $627,000 the first year is for a grant to
Community and Economic Development
Associates (CEDA) to provide funding for
economic development technical assistance
and economic development project grants to
small communities across rural Minnesota and
for CEDA to design, implement, market, and
administer specific types of basic community
and economic development programs tailored
to individual community needs. Technical
assistance grants shall be based on need and
given to communities that are otherwise
unable to afford these services. Of the amount
appropriated, up to $270,000 may be used for
economic development project implementation
in conjunction with the technical assistance
received. This is a onetime appropriation. Any
unencumbered balance remaining at the end
of the first year does not cancel but is available
the second year.
new text end

new text begin (mm) $1,500,000 each year is for a grant to
WomenVenture to support business expansion
for women food entrepreneurs throughout
Minnesota's food supply chain to help stabilize
and strengthen their business operations, create
distribution networks, offer technical
assistance and support to beginning women
food entrepreneurs, develop business plans,
develop a workforce, research expansion
strategies, and for other related activities.
Eligible uses of money include but are not
limited to:
new text end

new text begin (1) leasehold improvements;
new text end

new text begin (2) additions, alterations, remodeling, or
renovations to rented space;
new text end

new text begin (3) inventory or supplies;
new text end

new text begin (4) machinery or equipment purchases;
new text end

new text begin (5) working capital; and
new text end

new text begin (6) debt refinancing.
new text end

new text begin Money distributed to entrepreneurs may be
loans, forgivable loans, and grants. Of this
amount, up to five percent may be used for
the WomenVenture's technical assistance and
administrative costs. This appropriation is
onetime and available until June 30, 2026. By
December 15, 2026, WomenVenture must
submit a report to the chairs and ranking
members of the legislative committees with
jurisdiction over agriculture and employment
and economic development. The report must
include a summary of the uses of the
appropriation, including the amount of the
appropriation used for administration. The
report must also provide a breakdown of the
amount of funding used for loans, forgivable
loans, and grants; information about the terms
of the loans issued; a discussion of how money
from repaid loans will be used; the number of
entrepreneurs assisted; and a breakdown of
how many entrepreneurs received assistance
in each county.
new text end

new text begin (nn) $6,000,000 the first year is for grants to
initiative foundations to capitalize their
revolving loan funds, which address unmet
financing needs of for-profit business startups,
expansions, and ownership transitions;
nonprofit organizations; and developers of
housing to support the construction,
rehabilitation, and conversion of housing units.
Of the amount appropriated, $1,000,000 is for
a grant to the Southwest Initiative Foundation;
$1,000,000 is for a grant to the West Central
Initiative Foundation; $1,000,000 is for a grant
to the Southern Minnesota Initiative
Foundation; $1,000,000 is for a grant to the
Northwest Minnesota Foundation; $1,000,000
is for a grant to the Initiative Foundation; and
$1,000,000 is for a grant to the Northland
Foundation. This is a onetime appropriation.
new text end

new text begin (oo) $1,000,000 the first year is for a grant to
Enterprise Minnesota, Inc., to reach and
deliver talent, leadership, employee retention,
continuous improvement, strategy, quality
management systems, revenue growth, and
manufacturing peer-to-peer advisory services
to small manufacturing companies employing
35 or fewer full-time equivalent employees.
No later than February 1, 2025, and February
1, 2026, Enterprise Minnesota, Inc., must
provide a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development that includes:
new text end

new text begin (1) the grants awarded during the past 12
months;
new text end

new text begin (2) the estimated financial impact of the grants
awarded to each company receiving services
under the program;
new text end

new text begin (3) the actual financial impact of grants
awarded during the past 24 months; and
new text end

new text begin (4) the total amount of federal funds leveraged
from the Manufacturing Extension Partnership
at the United States Department of Commerce.
new text end

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

new text begin (1) 33.3 percent to businesses owned by
members of racial minority communities; and
new text end

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

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

new text begin (rr) $5,000,000 the first year is for a grant to
the Metropolitan Economic Development
Association (MEDA) for statewide business
development and assistance services to
minority-owned businesses. This is a onetime
appropriation. Any unencumbered balance
remaining at the end of the first year does not
cancel but is available the second year. Of this
amount:
new text end

new text begin (1) $3,000,000 is for a revolving loan fund to
provide additional minority-owned businesses
with access to capital; and
new text end

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

new text begin By February 1, 2025, MEDA shall report to
the commissioner and the chairs and ranking
minority members of the legislative
committees with jurisdiction over economic
development policy and finance on the loans
and operating support activities, including
outcomes and expenditures, supported by the
appropriation under this paragraph.
new text end

new text begin (ss) $2,500,000 each year is for a grant to a
Minnesota-based automotive component
manufacturer and distributor specializing in
electric vehicles and sensor technology that
manufactures all of their parts onshore to
expand their manufacturing. This is a onetime
appropriation.
new text end

new text begin (tt) $1,846,500 the first year is for a grant to
the Minneapolis Downtown Council for
infrastructure and associated costs for the
Taste of Minnesota event, including but not
limited to buildout, permits, garbage services,
staffing, security, equipment rentals, signage,
and insurance. This is a onetime appropriation.
new text end

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

new text begin 120,465,000 new text end

new text begin 111,927,000 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 105,370,000 new text end	new text begin 96,832,000 new text end
new text begin Workforce Development new text end	new text begin 15,095,000 new text end	new text begin 15,095,000 new text end

new text begin (a) $500,000 each year is 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 each year is 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) $24,654,000 the first year and $25,154,000
the second year are for the targeted population
workforce grants under Minnesota Statutes,
section 116L.43. The department may use up
to five percent of this appropriation for
administration, monitoring, and oversight of
the program. Of this amount:
new text end

new text begin (1) $17,000,000 is for job and entrepreneurial
skills training grants under Minnesota Statutes,
section 116L.43, subdivision 2;
new text end

new text begin (2) $1,500,000 is for diversity and inclusion
training for small and midsize employers
under Minnesota Statutes, section 116L.43,
subdivision 3; and
new text end

new text begin (3) $5,500,000 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
$1,184,000 beginning in fiscal year 2026.
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) $15,000,000 each year is for the Drive for
Five Initiative to conduct outreach and provide
job skills training, career counseling, case
management, and supportive services for
careers in (1) technology, (2) labor, (3) the
caring professions, (4) manufacturing, and (5)
educational and professional services. These
are onetime appropriations.
new text end

new text begin (f) 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) 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 that are currently hiring. Trade
associations or chambers must partner with
employers with current or anticipated
employment opportunities and nonprofit
workforce training partners participating in
this program. The trade associations or
chambers must work closely with the industry
sector training providers in the five industries
identified in paragraph (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
of 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) 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
representative must:
new text end

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

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

new text begin (3) work with the local area board and its
partners to identify candidates for openings in
small and midsize 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 to
116L.366. 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) $4,511,000 each year from the general fund
and $4,050,000 each year from the workforce
development fund are for the Minnesota youth
program under Minnesota Statutes, sections
116L.56 and 116L.561. 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 for the Office of
New Americans under Minnesota Statutes,
section 116J.4231.
new text end

new text begin (q) $1,000,000 each year is for a grant to the
Minnesota Technology Association to support
the SciTech internship program, a program
that supports science, technology, engineering,
and math (STEM) internship opportunities for
two- and four-year college students and
graduate students in their fields of study. The
internship opportunities must match students
with paid internships within STEM disciplines
at small, for-profit companies located in
Minnesota having fewer than 250 employees
worldwide. At least 325 students must be
matched each year. No more than 15 percent
of the hires may be graduate students. Selected
hiring companies shall receive from the grant
50 percent of the wages paid to the intern,
capped at $3,000 per intern. The program must
work toward increasing the participation
among women or other underserved
populations. This is a onetime appropriation.
new text end

new text begin (r) $750,000 each year is for grants to the
Minneapolis Park and Recreation Board's Teen
Teamworks youth employment and training
programs. This appropriation is onetime,
available in either year of the biennium, and
available until June 30, 2027.
new text end

new text begin (s) $900,000 the first year and $900,000 the
second year are for a grant to Avivo to provide
low-income individuals with career education
and job skills training that is fully integrated
with chemical and mental health services. Of
this amount, up to $250,000 each year is for
a grant to Avivo to provide resources and
support services to survivors of sex trafficking
and domestic abuse in the greater St. Cloud
area as they search for employment. Program
resources include but are not limited to costs
for day care, transportation, housing, legal
advice, procuring documents required for
employment, interview clothing, technology,
and Internet access. The program shall also
include public outreach and corporate training
components to communicate to the public and
potential employers about the specific
struggles faced by survivors as they re-enter
the workforce. These are onetime
appropriations.
new text end

new text begin (t) $1,000,000 each year is for the getting to
work grant program under Minnesota Statutes,
section 116J.545. Of this amount, up to five
percent is for administration and monitoring
of the program. These are onetime
appropriations.
new text end

new text begin (u) $375,000 each year is for a grant to the
nonprofit 30,000 Feet to fund youth
apprenticeship jobs, wraparound services,
after-school programming, and summer
learning loss prevention efforts targeted at
African American youth. This is a onetime
appropriation.
new text end

new text begin (v) $463,000 the first year is for a grant to the
Boys and Girls Club of Central Minnesota.
This is a onetime appropriation. Of this
amount:
new text end

new text begin (1) $313,000 is to fund one year of free
full-service programming for a new program
in Waite Park that will employ part-time youth
development staff and provide community
volunteer opportunities for people of all ages.
Career exploration and life skills programming
will be a significant dimension of
programming at this new site; and
new text end

new text begin (2) $150,000 is for planning and design for a
new multiuse facility for the Boys and Girls
Club of Waite Park and other community
partners, including the Waite Park Police
Department and the Whitney Senior Center.
new text end

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

new text begin (x) $1,050,000 the first year is for a grant to
the Owatonna Area Chamber of Commerce
Foundation for the Learn and Earn Initiative
to help the Owatonna and Steele County
region grow and retain a talented workforce.
This is a onetime appropriation and is
available until June 30, 2025. Of this amount:
new text end

new text begin (1) $950,000 is to develop an advanced
manufacturing career pathway program for
youth and adult learners with shared learning
spaces, state-of-the-art equipment, and
instructional support to grow and retain talent
in Owatonna; and
new text end

new text begin (2) $100,000 is to create the Owatonna
Opportunity scholarship model for the Learn
and Earn Initiative for students and employers.
new text end

new text begin (y) $250,000 each year is for a grant to the
White Bear Center for the Arts for establishing
a paid internship program for high school
students to learn professional development
skills through an arts perspective. This is a
onetime appropriation.
new text end

new text begin (z) $946,000 each year is for the Minnesota
Family Resiliency Partnership under
Minnesota Statutes, section 116L.96. The
commissioner, through the adult career
pathways program, shall distribute the money
to existing nonprofit and state displaced
homemaker programs. The base is $446,000
beginning in fiscal year 2026.
new text end

new text begin (aa) $1,500,000 each year is for a grant to the
Center for Economic Inclusion for strategic,
data-informed investments in job creation
strategies that respond to the needs of
underserved populations statewide. This may
include pay-for-performance contracts with
nonprofit organizations to provide outreach,
training, and support services for dislocated
and chronically underemployed people, and
forgivable loans, revenue-based financing, and
equity investments for entrepreneurs with
barriers to growth. Of this amount, up to five
percent may be used for the center's technical
assistance and administrative costs. These are
onetime appropriations.
new text end

new text begin (bb) $600,000 each year is for a grant to East
Side Neighborhood Services. These are
onetime appropriations. Of this amount:
new text end

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

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

new text begin These amounts may also be used to enhance
the organization's youth employment
programming for youth and young adults, ages
14 to 24, to introduce them to work culture,
develop essential work readiness skills, and
make career plans through paid internship
experiences and work readiness training.
new text end

new text begin (cc) $1,500,000 each year is for a grant to
Ujamaa Place to assist primarily African
American men with job training, employment
preparation, internships, education, vocational
housing, and organizational capacity building.
This is a onetime appropriation.
new text end

new text begin (dd) $500,000 each year is for a grant to
Comunidades Organizando el Poder y la
Acción Latina (COPAL) for worker center
programming that supports primarily
low-income, migrant, and Latinx workers with
career planning, workforce training and
education, workers' rights advocacy, health
resources and navigation, and wealth creation
resources. This is a onetime appropriation.
new text end

new text begin (ee) $3,000,000 each year is for a grant to
Propel Nonprofits to provide capacity-building
grants and related technical assistance to small,
culturally specific organizations that primarily
serve historically underserved cultural
communities. Propel Nonprofits may only
award grants to nonprofit organizations that
have an annual organizational budget of less
than $1,000,000. These grants may be used
for:
new text end

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

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

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

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

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

new text begin (gg) $250,000 the first year is for a grant to
the ProStart and Hospitality Tourism
Management Program for a well-established,
proven, and successful education program that
helps young people advance careers in the
hospitality industry and addresses critical
long-term workforce shortages in that industry.
new text end

new text begin (hh) $1,400,000 the first year and $450,000
the second year are for grants to Minnesota
Diversified Industries to provide inclusive
employment opportunities and services for
people with disabilities. This is a onetime
appropriation.
new text end

new text begin (ii) $1,000,000 the first year is for a grant to
Minnesota Diversified Industries to assist
individuals with disabilities through the
unified work model by offering virtual and
in-person career skills classes augmented with
virtual reality tools. Minnesota Diversified
Industries shall submit a report on the number
and demographics of individuals served, hours
of career skills programming delivered,
outreach to employers, and recommendations
for future career skills delivery methods to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
labor and workforce development policy and
finance by January 15, 2026. This is a onetime
appropriation and is available until June 30,
2025.
new text end

new text begin (jj) $1,175,000 each year is for a grant to
Summit Academy OIC to expand employment
placement, GED preparation and
administration, and STEM programming in
the Twin Cities, Saint Cloud, and Bemidji.
This is a onetime appropriation.
new text end

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

new text begin (ll) $350,000 the first year and $25,000 the
second year are for a grant to the University
of Minnesota Tourism Center for the creation
and operation of an online hospitality training
program in partnership with Explore
Minnesota Tourism. This training program
must be made available at no cost to
Minnesota residents in an effort to address
critical workforce shortages in the hospitality
and tourism industries and assist in career
development. The base in fiscal year 2026 and
beyond is $25,000 for ongoing system
maintenance, management, and content
updates.
new text end

new text begin (mm) $3,000,000 the first year is for
competitive grants to support competitive
robotics teams and prepare youth for careers
in STEM fields. Of this amount, $2,000,000
is for creating internships for high school
students to work at private companies in
STEM fields, including the payment of student
stipends.
new text end

new text begin (nn) $1,500,000 the first year is for a grant to
the nonprofit Sanneh Foundation to fund
out-of-school summer programs focused on
mentoring and behavioral, social, and
emotional learning interventions and
enrichment activities directed toward
low-income students of color. This
appropriation is onetime and available until
June 30, 2026.
new text end

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

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

new text begin (qq) $300,000 each year is for a grant to All
Square. The grant must be used to support the
operations of All Square's Fellowship and
Prison to Law Pipeline programs which
operate in Minneapolis, St. Paul, and
surrounding correctional facilities to assist
incarcerated and formerly incarcerated
Minnesotans in overcoming employment
barriers that prevent economic and emotional
freedom. This is a onetime appropriation.
new text end

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

new text begin (ss) $3,000,000 each year is for a grant to
Community Action Partnership of Hennepin
County. These are onetime appropriations. Of
this amount:
new text end

new text begin (1) $1,500,000 each year is for grants to 21
Days of Peace for social equity building and
community engagement activities; and
new text end

new text begin (2) $1,500,000 each year is for grants to A
Mother's Love for community outreach,
empowerment training, and employment and
career exploration services.
new text end

new text begin (tt) $750,000 each year is for a grant to Mind
the G.A.P.P. (Gaining Assistance to Prosperity
Program) to improve the quality of life of
unemployed and underemployed individuals
by improving their employment outcomes and
developing individual earnings potential. This
is a onetime appropriation and money is
available either year of the biennium.
new text end

new text begin (uu) $550,000 each year is for a grant to the
International Institute of Minnesota. Grant
money must be used for workforce training
for New Americans in industries in need of a
trained workforce. These are onetime
appropriations.
new text end

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

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

new text begin (xx) $275,000 each year is to Southeast
Minnesota Workforce Development Area
#8/Workforce Development, Inc. to provide
career planning, career pathway training and
education, wraparound support services, and
job skills advancement in high-demand careers
to individuals with barriers to employment in
Steele County, helping families build secure
pathways out of poverty while also addressing
worker shortages in the Owatonna and Steele
County area. Funding must also support
Employer Outreach Services to include
providing solutions to workforce challenges
and direct connections to workforce
programming. Grants may be used for
program expenses, including but not limited
to hiring instructors and navigators; space
rental; and supportive services to help
participants attend classes, including assistance
with course fees, child care, transportation,
and safe and stable housing. In addition, up to
five percent of grant money may be used for
Workforce Development, Inc.'s administrative
costs. This is a onetime appropriation and is
available until June 30, 2027.
new text end

new text begin (yy) $500,000 each year is for a grant to the
Black Women's Wealth Alliance to provide
economically eligible individuals with job
skills training, career counseling, and job
placement assistance. This is a onetime
appropriation.
new text end

new text begin (zz) $250,000 each year is for a grant to
Abijahs on the Backside to provide equine
experiential mental health therapy to first
responders suffering from job-related trauma
and post-traumatic stress disorder. For
purposes of this paragraph, a "first responder"
is a peace officer as defined in Minnesota
Statutes, section 626.84, subdivision 1,
paragraph (c); a full-time firefighter as defined
in Minnesota Statutes, section 299N.03,
subdivision 5; or a volunteer firefighter as
defined in Minnesota Statutes, section
299N.03, subdivision 7.
new text end

new text begin Abijahs on the Backside must report to the
commissioner of employment and economic
development and the chairs and ranking
minority members of the legislative
committees with jurisdiction over employment
and economic development policy and finance
on the equine experiential mental health
therapy provided to first responders under this
paragraph. The report must include an
overview of the program's budget, a detailed
explanation of program expenditures, the
number of first responders served by the
program, and a list and explanation of the
services provided to and benefits received by
program participants. An initial report is due
by January 15, 2024, and a final report is due
by January 15, 2026. This is a onetime
appropriation.
new text end

new text begin (aaa) $200,000 each year is for a grant to
Project Restore Minnesota for the Social
Kitchen project, a pathway program for careers
in the culinary arts. This is a onetime
appropriation and is available until June 30,
2027.
new text end

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

new text begin (ccc) $1,200,000 each year is for a grant to
Twin Cities R!SE. Of this amount, $700,000
each year is for performance grants under
Minnesota Statutes, section 116J.8747, to
Twin Cities R!SE to provide training to
individuals facing barriers to employment;
and $500,000 each year is to increase the
capacity of the Empowerment Institute through
employer partnerships across Minnesota and
expansion of the youth personal empowerment
curriculum. This appropriation is onetime and
available until June 30, 2026.
new text end

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

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

new text begin (fff) $1,500,000 each year is for a grant to
Youthprise to provide economic development
services designed to enhance long-term
economic self-sufficiency in communities with
concentrated African populations statewide.
Of these amounts, 50 percent is for subgrants
to Ka Joog and 50 percent is for competitive
subgrants to community organizations. These
are onetime appropriations.
new text end

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

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

new text begin (iii) $425,000 each year is for a grant to Better
Futures Minnesota to provide job skills
training to individuals who have been released
from incarceration for a felony-level offense
and are no more than 12 months from the date
of release. This is a onetime appropriation.
new text end

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

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

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

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

new text begin (mmm) $500,000 each year is for a grant to
Al Maa'uun for a strategic intervention
program designed to target and connect
program participants to meaningful,
sustainable living wage employment. This is
a onetime appropriation.
new text end

new text begin (nnn) $500,000 each year is for a grant to
CAIRO to provide workforce development
services in health care, technology, and
transportation (CDL) industries. This is a
onetime appropriation.
new text end

new text begin (ooo) $500,000 each year is for competitive
grants to organizations providing services to
relieve economic disparities in the African
immigrant community through workforce
recruitment, development, job creation,
assistance of smaller organizations to increase
capacity, and outreach. Of this amount, up to
five percent is for administration and
monitoring of the program. This is a onetime
appropriation.
new text end

new text begin (ppp) $270,000 each year is for a grant to
Stairstep to help community members
understand possibilities for improving
employment opportunities. This is a onetime
appropriation.
new text end

new text begin (qqq) $400,000 each year is for a grant to
Building Strong Communities, Inc, for a
statewide apprenticeship readiness program
to prepare women, BIPOC community
members, and veterans to enter the building
and construction trades. These are onetime
appropriations.
new text end

new text begin (rrr) $150,000 each year is for prevailing wage
staff under Minnesota Statutes, section
116J.871, subdivision 2.
new text end

new text begin (sss) $250,000 each year is for the purpose of
awarding a grant to Minnesota Community of
African People with Disabilities (MNCAPD),
Roots Connect, and Fortune Relief and Youth
Empowerment Organization (FRAYEO). This
is a onetime appropriation. MNCAPD, Roots
Connect, and FRAYEO must use grant
proceeds to provide funding for workforce
development activities for at-risk youth from
low-income families and unengaged young
adults experiencing disabilities, including:
new text end

new text begin (1) job readiness training for at-risk youth,
including resume building, interview skills,
and job search strategies;
new text end

new text begin (2) on-the-job training opportunities with local
businesses;
new text end

new text begin (3) support services such as transportation
assistance and child care to help youth attend
job training programs; and
new text end

new text begin (4) mentorship and networking opportunities
to connect youth with professionals in the
youth's desired fields.
new text end

new text begin (ttt) $500,000 the first year is to the Legislative
Coordinating Commission for the Take Force
on Youth Interventions. This is a onetime
appropriation.
new text end

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

new text begin 18,031,000 new text end

new text begin 8,059,000 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 Fund new text end	new text begin 17,950,000 new text end	new text begin 7,950,000 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 the first year 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 49,136,000 new text end

new text begin 49,136,000 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 41,306,000 new text end	new text begin 41,306,000 new text end
new text begin Workforce Development new text end	new text begin 7,830,000 new text end	new text begin 7,830,000 new text end

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

new text begin (b) $11,495,000 each year from the general
fund and $6,830,000 each year from the
workforce development fund are for extended
employment services for persons with severe
disabilities under Minnesota Statutes, section
268A.15. Of the amounts appropriated from
the general fund, $4,500,000 each year is for
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) $6,500,000 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) $9,011,000 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 money for this purpose must be used to
provide training services for seniors who are
becoming blind. Training services must
provide independent living skills to seniors
who are becoming blind to allow them to
continue to live independently in their homes.
new text end

new text begin (b) $2,000,000 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 30,657,000 new text end

new text begin $ new text end

new text begin 15,269,000 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 Minnesota Statutes,
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) $12,000,000 the first year is for the
development of Explore Minnesota for
Business under Minnesota Statutes, section
116U.07, to market the overall livability and
economic opportunities of Minnesota. This is
a onetime appropriation.
new text end

new text begin (c) $2,254,000 is added to the base beginning
in fiscal year 2026 to build additional
administrative capacity to provide support in
the areas of brand strategy, communications,
and industry relations.
new text end

new text begin (d) $250,000 in fiscal year 2024 is
appropriated from the general fund to Explore
Minnesota Tourism for a grant to the Grand
Portage Band to focus tourism to Grand
Portage. This is a onetime appropriation.
new text end

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

ARTICLE 2

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.

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 14 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' marketing efforts by emphasizing and prioritizing diversity, equity, inclusion,
and accessibility and providing professional marketing insights.
new text end

Sec. 9.

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. 10.

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

PROVIDING RESOURCES AND OPPORTUNITY AND MAXIMIZING
INVESTMENT IN STRIVING ENTREPRENEURS

Section 1. new text begin TITLE.
new text end

new text begin This act shall be known as the "Providing Resources and Opportunity and Maximizing
Investments in Striving Entrepreneurs (PROMISE) Act."
new text end

Sec. 2. new text begin PROMISE GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Business" means both for-profit businesses and nonprofit organizations that earn
revenue in ways similar to businesses.
new text end

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

new text begin (d) "Partner organization" or "partner" means the Minnesota Initiative Foundations and
nonprofit corporations receiving grants to provide grants to businesses under this section.
new text end

new text begin (e) "Program" means the PROMISE grant program under this section.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish the PROMISE grant program
to make grants to partner organizations to make grants to businesses in communities that
have been adversely affected by structural racial discrimination, civil unrest, lack of access
to capital, loss of population or an aging population, or lack of regional economic
diversification.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall make grants to
partner organizations to provide grants to businesses under subdivision 4 using criteria,
forms, applications, and reporting requirements developed by the commissioner.
new text end

new text begin (b) Up to five percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program, and up to three percent of
a grant may be used by the partner organization for technical assistance to grantees.
new text end

new text begin (c) Any money not spent by partner organizations by June 30, 2027, must be returned
to the commissioner and canceled back to the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Grants to businesses. new text end

new text begin (a) Partners shall make grants to businesses using criteria,
forms, applications, and reporting requirements developed by the commissioner.
new text end

new text begin (b) To be eligible for a grant under this subdivision, a business must:
new text end

new text begin (1) have primary business operations located in the state of Minnesota;
new text end

new text begin (2) be located in a community that has been adversely affected by structural racial
discrimination, civil unrest, lack of access to capital, a loss of population or an aging
population, or a lack of regional economic diversification; and
new text end

new text begin (3) have a gross annual revenue of $350,000 or less based on 2021 taxes.
new text end

new text begin (c) Preference shall be given to businesses that did not receive previous assistance from
the state under:
new text end

new text begin (1) the governor's Executive Order No. 20-15;
new text end

new text begin (2) Laws 2020, First Special Session chapter 1, section 4;
new text end

new text begin (3) Laws 2020, Seventh Special Session chapter 2, article 4 or 5; or
new text end

new text begin (4) Laws 2021, First Special Session chapter 10, article 2, section 22.
new text end

new text begin (d) Preference may be given to businesses that are able to demonstrate financial hardship.
new text end

new text begin (e) Grants under this subdivision must not exceed $50,000 per grant.
new text end

new text begin (f) No business may receive more than one grant under this section.
new text end

new text begin (g) Grant money may be used for land acquisition or for working capital to support
payroll expenses, rent or mortgage payments, utility bills, and other similar expenses that
occur in the regular course of business.
new text end

new text begin (h) Any grant money used for land acquisition must be repaid to the state if the land
acquired is sold within ten years of the grant award.
new text end

new text begin Subd. 5. new text end

new text begin Grant requirements. new text end

new text begin All grants to businesses under this section are subject to
the grant-making requirements in sections 16B.97, 16B.98, and 16B.991.
new text end

new text begin Subd. 6. new text end

new text begin Reports. new text end

new text begin (a) By January 31, 2026, partner organizations participating in the
program must provide a report to the commissioner that includes descriptions of the
businesses supported by the program, the amounts granted, and an explanation of
administrative expenses.
new text end

new text begin (b) By February 15, 2026, the commissioner must report to the legislative committees
in the house of representatives and senate with jurisdiction over economic development
about grants made under this section based on the information received under paragraph
(a).
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires December 31, 2027.
new text end

Sec. 3. new text begin PROMISE LOAN PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

new text begin (d) "Eligible project" means the development, redevelopment, demolition, site preparation,
predesign, design, engineering, repair, land acquisition, relocation, or renovation of real
property or capital improvements. Eligible project includes but is not limited to construction
of buildings, infrastructure, related site amenities, landscaping, and street-scaping.
new text end

new text begin (e) "Eligible recipient" means a:
new text end

new text begin (1) business;
new text end

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

new text begin (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.
new text end

new text begin (f) "Partner organization" or "Partner" means the Minnesota Initiative Foundations and
nonprofit corporations receiving grants to provide loans under this section.
new text end

new text begin (g) "Program" means the PROMISE loan program under this section.
new text end

new text begin (h) "Redevelopment" means the acquisition of real property; site preparation; predesign,
design, engineering, repair, or renovation of facilities façade improvements, and construction
of buildings, infrastructure, and related site amenities; landscaping; street-scaping;
land-banking for future development or redevelopment; or financing any of these activities
taken on by a private party pursuant to an agreement with the city. Redevelopment does not
include project costs eligible for compensation or assistance available through insurance
policies or from other organizations or government agencies.
new text end

new text begin (i) "Relocation" means financial support for businesses that would like to relocate to
another location within the same city, county, or region in 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 PROMISE loan program
to make grants to partner organizations to make loans to businesses in communities that
have been adversely affected by structural racial discrimination, civil unrest, lack of access
to capital, a loss of population or an aging population, or a lack of regional economic
diversification.
new text end

new text begin Subd. 3. new text end

new text begin Grants to partner organizations. new text end

new text begin (a) The commissioner shall make grants to
partner organizations to provide loans to businesses as specified under this section.
new text end

new text begin (b) Up to five percent of a grant under this subdivision may be used by the partner
organization for administration and monitoring of the program, and up to three percent of
a grant may be used by the partner organization for technical assistance to borrowers.
new text end

new text begin (c) Any money not spent by partner organizations by June 30, 2027, must be returned
to the commissioner and canceled back to the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Loans to eligible recipients. new text end

new text begin (a) A partner organization may make loans to
eligible recipients for eligible projects. A loan to an eligible recipient for an eligible project
must:
new text end

new text begin (1) be for no more than $1,000,000;
new text end

new text begin (2) be for a term of no more than ten years; and
new text end

new text begin (3) must be a three percent interest loan.
new text end

new text begin (b) Loans must not be used for working capital or inventory; consolidating, repaying,
or refinancing debt; or speculation or investment in rental real estate.
new text end

new text begin Subd. 5. new text end

new text begin Loans to businesses. new text end

new text begin (a) To be eligible for a loan under this subdivision, a
business must:
new text end

new text begin (1) have primary business operations located in the state of Minnesota;
new text end

new text begin (2) have gross annual revenue of less than $1,000,000 based on 2021 taxes; and
new text end

new text begin (3) be located in a community that has been adversely affected by structural racial
discrimination, civil unrest, lack of access to capital, a loss of population or an aging
population, or a lack of regional economic diversification.
new text end

new text begin Subd. 6. new text end

new text begin Revolving loan fund. new text end

new text begin Partner organizations that receive grants from the
commissioner under the program must establish a commissioner-certified revolving loan
fund for the purpose of making eligible loans.
new text end

new text begin Subd. 7. new text end

new text begin Preference. new text end

new text begin (a) Priority shall be given to those businesses that have not received
a grant under a Main Street COVID-19 relief grant program or a loan from the Main Street
Economic Revitalization Loan Program.
new text end

new text begin (b) Priority may also be given to projects that involve developers who are Black,
Indigenous, or People of Color; veterans; or women.
new text end

new text begin Subd. 8. new text end

new text begin Oversight. new text end

new text begin Grants and any loans to borrowers under this section are subject to
the grant-making requirements in sections 16B.97, 16B.98, and 16B.991.
new text end

new text begin Subd. 9. new text end

new text begin Reports. new text end

new text begin (a) By January 31, 2026, partner organizations participating in the
program must provide a report to the commissioner that includes descriptions of the
businesses supported by the program, the amounts loaned, and an explanation of
administrative expenses.
new text end

new text begin (b) By February 15, 2026, the commissioner must report to the legislative committees
in the house of representatives and senate with jurisdiction over economic development
about loans made under this section based on the information received under paragraph (a).
new text end

new text begin Subd. 10. new text end

new text begin Expiration. new text end

new text begin This section expires December 31, 2027.
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.

new text begin [116J.4231] 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, an office assistant, and 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 foster immigrant and refugee inclusion through an
intentional process to improve economic mobility, enhance civic participation, and improve
receiving communities' openness to immigrants and refugees by incorporating the needs
and aspirations of immigrants and refugees, their families, and their communities for the
benefit of all by fulfilling the duties outlined in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin The Office of New Americans has the following duties:
new text end

new text begin (1) create and implement a statewide strategy and programming to foster and promote
immigrant and refugee inclusion in Minnesota so as to improve economic mobility, enhance
civic participation, and improve receiving communities' openness to immigrants and refugees;
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 and support implementation of programs and strategies to reduce employment
barriers for immigrants and refugees, including the creation of alternative employment
pathways;
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, including collaborating with Minnesota's ethnic councils as created by
section 15.0145;
new text end

new text begin (6) work with state agencies, Minnesota's ethnic councils, 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 after soliciting input from Minnesota's ethnic councils;
new text end

new text begin (8) convene stakeholders to further the objectives identified in subdivision 1;
new text end

new text begin (9) make policy recommendations to the governor on issues impacting immigrants and
refugees in consultation with Minnesota's ethnic councils;
new text end

new text begin (10) engage all stakeholders to further the objectives identified in subdivision 1 within
the context of workforce access and workforce readiness, including in the areas of
employment, housing, legal services, health care, and education and communicate the
importance of immigrant and refugee inclusion in the success of immigrants, refugees, their
children, and the communities in which they settle;
new text end

new text begin (11) engage with and support existing municipal and county offices that promote and
foster immigrant and refugee inclusion and encourage the development of new municipal
and county offices dedicated to immigrant and refugee inclusion;
new text end

new text begin (12) 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 (13) promulgate rules necessary to implement and effectuate this section;
new text end

new text begin (14) provide an annual report, as required by subdivision 3; and
new text end

new text begin (15) 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, 2025, 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, agencies, and Minnesota's ethnic councils 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 include the commissioners, department directors, or designees from
the following:
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 Refugee Resettlement Programs 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 on Asian Pacific Minnesotans;
new text end

new text begin (13) the Council for Minnesotans of African Heritage; and
new text end

new text begin (14) the Minnesota Council on Latino Affairs.
new text end

new text begin (d) Each department or office specified in paragraph (c) shall designate one staff member
as an immigrant and refugee services liaison. The liaison's 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 of New Americans may apply for grants for interested state
agencies, community partners, and stakeholders under this section to carry out the duties
under subdivision 2.
new text end

Sec. 3.

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. 4.

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. 5.

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 meaning given in 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. 6.

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. 7.

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. 8.

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. 9.

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. 10.

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. 11.

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 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 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 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 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 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 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 section 116J.8737, the MNvest crowd-funding program
under section 80A.461, and other state programs that support innovative technology business
creation especially in underserved communities;
new text end

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

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

new text begin Subd. 8. new text end

new text begin Report. new text end

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

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

new text begin Subd. 9. new text end

new text begin Advisory board. new text end

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

new text begin (b) The advisory board shall consist of ten members and is governed by 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. 12.

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 business 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 for administration and monitoring of the program and 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. 13.

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. 14.

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. 15.

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. 16.

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 that 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. 17.

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. 18.

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. 19.

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. 20.

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

Subd. 11.

Public infrastructure project.

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

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

(2) demolish, repair, or rehabilitate buildings;

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

(4) install, construct, or reconstruct elements of public infrastructure required to support
the overall development of the destination medical center development district including,
but not limited to, streets, roadways, utilities systems and related facilities, utility relocations
and replacements, network and communication systems, streetscape improvements, drainage
systems, sewer and water systems, subgrade structures and associated improvements,
landscaping, facade construction and restoration, new text begin construction costs permitted in section
469.47, subdivision 1, paragraph (d), clauses (1), (2), and (4), new text end wayfinding and signage, new text begin
community engagement, new text end and other components of community infrastructure;

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

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

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

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

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

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

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

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

Sec. 21.

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

Subdivision 1.

Definitions.

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

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

(c) "Construction projects" means:

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

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

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

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

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

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

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

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

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

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

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

Sec. 22.

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

Subd. 5.

State transit aid.

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

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

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

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

Sec. 23.

Minnesota Statutes 2022, section 469.47, subdivision 6, is amended to read:

Subd. 6.

Transit aid; local matching contribution.

(a) The required local matching
contribution for state transit aid equals the lesser of:

(1) 40 percent of the state transit aid new text begin subject to the $7,500,000 limit new text end under subdivision
5; or

(2) the amount that would be raised by a 0.15 percent sales tax imposed by the county
in the preceding year.

The county may impose the sales tax or the wheelage tax under section 469.46 to meet
this obligation.

(b) If the county elects not to impose any of the taxes authorized under section 469.46,
the county, or city, or both, may agree to make the local contribution out of other available
funds, other than state aid payable under this section. The commissioner of revenue must
estimate the required amount and certify it to the commissioner, city, and county.

Sec. 24. new text begin MINNESOTA EMPLOYER REASONABLE ACCOMMODATION FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Reimbursement grant program established. new text end

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

new text begin Subd. 3. new text end

new text begin Application. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Reimbursement awards. new text end

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

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

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

new text begin Subd. 5. new text end

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

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

new text begin Subd. 6. new text end

new text begin Technical assistance and consultation. new text end

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

new text begin Subd. 7. new text end

new text begin Administration and marketing costs. new text end

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

new text begin Subd. 8. new text end

new text begin Notification. new text end

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

new text begin Subd. 9. new text end

new text begin Reports to the legislature. new text end

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

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

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

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

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

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

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

new text begin Subd. 10. new text end

new text begin Expiration. new text end

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

ARTICLE 5

MISCELLANEOUS POLICY

Section 1.

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

new text begin Subdivision 1. new text end

new text begin Creation. new text end

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

new text begin Subd. 2. new text end

new text begin Qualified grantee. new text end

new text begin A grantee must:
new text end

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

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

new text begin Subd. 3. new text end

new text begin Program requirements. new text end

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Application. new text end

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

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

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

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

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

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

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

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

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

new text begin (v) employers;
new text end

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

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

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

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

new text begin Subd. 5. new text end

new text begin Participant eligibility. new text end

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

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

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

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

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

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

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

new text begin Subd. 6. new text end

new text begin Report to legislature. new text end

new text begin By February 15, 2025, and each January 15 in an
odd-numbered year thereafter, the commissioner shall submit a report to the chairs of the
house of representatives and senate committees with jurisdiction over workforce and
economic development on program outcomes. At a minimum, the report must include:
new text end

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

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

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

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

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

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

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

Sec. 2.

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

Subdivision 1.

Definitions.

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

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

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

Sec. 3.

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

Subd. 5.

Grant awards; limitations.

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

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

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

Sec. 4.

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

Subd. 6.

Eligible expenditures.

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

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

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

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

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

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

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

Sec. 5.

new text begin [116J.9926] EMERGING DEVELOPER FUND PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (ii) woman;
new text end

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

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Establishment. new text end

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

new text begin Subd. 3. new text end

new text begin Loan program. new text end

new text begin (a) Through the program, the commissioner shall offer emerging
developers predevelopment, construction, and bridge loans for eligible projects.
new text end

new text begin (b) Predevelopment loans shall be for no more than $50,000. All other types of loans
shall be for no more than $500,000.
new text end

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

new text begin (d) Loans shall be for zero interest or a low interest rate, as determined by the
commissioner based on the individual project risk and type of loan sought.
new text end

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Eligible expenses. new text end

new text begin (a) The following shall be eligible expenses for a
predevelopment loan under the program:
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Emerging developer fund account. new text end

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

new text begin Subd. 6. new text end

new text begin Reports to the legislature. new text end

new text begin By February 15 of each year, beginning in 2025,
the commissioner shall submit a report to the chairs of the house of representatives and
senate committees with jurisdiction over economic development on loans made under the
program.
new text end

Sec. 6.

Laws 2021, First Special Session chapter 10, article 2, section 24, is amended to
read:

Sec. 24. FORGIVABLE LOAN PROGRAM FOR REMOTE RECREATIONAL
BUSINESSES.

Subdivision 1.

Establishment.

Lake of the Woods County shall establish a loan program
to make forgivable loans to eligible remote recreational businesses that experienced a loss
in revenue that is greater than 30 percent during the period between March 15, deleted text begin 2020 deleted text end new text begin 2021 new text end ,
and March 15, deleted text begin 2021 deleted text end new text begin 2022 new text end , as compared with deleted text begin the previous year deleted text end new text begin March 15, 2019, and March
15, 2020 new text end .

Subd. 2.

Definition.

For the purposes of this section, "remote recreational business"
means a business in the contiguous United States that is:

(1) a small business concern as defined under section 3 of the Small Business Act, United
States Code, title 15, section 632, operating in the recreational industry;

(2) located within 75 miles of the United States and Canadian border; and

(3) only accessible by land via Canada.

Subd. 3.

Eligibility.

To be eligible for a forgivable loan, a remote recreational business
must:

(1) have been in operation on March 15, deleted text begin 2020 deleted text end new text begin 2021 new text end ;

(2) show that the closure new text begin and ongoing COVID-19-related requirements new text end of the United
States and Canadian border restricted the ability of American customers to access the location
of the remote recreational business; and

(3) not have received a grant under the Main Street COVID-19 relief grant program.

Subd. 4.

Application.

(a) Lake of the Woods County shall develop forms and procedures
for soliciting and reviewing applications for loans under this section.

(b) Loans shall be made before deleted text begin April 1, 2022 deleted text end new text begin December 30, 2023 new text end . Any funds not spent
by deleted text begin April 1 deleted text end new text begin December 30 new text end , deleted text begin 2022 deleted text end new text begin 2024 new text end , must be returned to the state general fund.

new text begin (c) If there are insufficient funds to pay all claims in full, the county shall distribute
funds on a prorated basis.
new text end

Subd. 5.

Maximum loan amount.

The maximum loan amount shall be equal to 75
percent of the remote recreational business's gross annual receipts for fiscal year deleted text begin 2020 deleted text end new text begin 2021 new text end ,
not to exceed $500,000 per eligible remote recreational business.

Subd. 6.

Forgiveness.

Loans are forgiven for a remote recreational business if the
business remains in operation for at least one year after the date of the loan. Lake of the
Woods County shall forgive 100 percent of the value of a loan received less the amount the
borrower received from:

(1) any other loan forgiveness program, including any program established under the
CARES Act, Public Law 116-136; and

(2) an advance received under section 1110 of the CARES Act, United States Code, title
15, section 9009.

Subd. 7.

Report to legislature.

By deleted text begin January 15, 2023 deleted text end new text begin April 30, 2024 new text end , Lake of the Woods
County shall report to the legislative committees with jurisdiction over economic
development policy and finance on the loans provided to remote recreational businesses
under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin CANADIAN BORDER COUNTIES ECONOMIC RELIEF PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Relief program established. new text end

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

new text begin Subd. 2. new text end

new text begin Available relief. new text end

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

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

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

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

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

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

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

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

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

new text begin Subd. 3. new text end

new text begin Qualification requirements. new text end

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

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

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

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

new text begin Subd. 4. new text end

new text begin Monitoring. new text end

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

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

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

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

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

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

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

new text begin Subd. 5. new text end

new text begin Business subsidy requirements. new text end

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

new text begin Subd. 6. new text end

new text begin Administrative costs. new text end

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

new text begin EFFECTIVE DATE. new text end

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